Transition finance is a comprehensive approach that encompasses a wide range of financial activities, including investments and services aimed at moving the global economy from carbon dependency to net-zero emissions.

Unlike traditional ESG investing, transition finance focuses on companies in the process of adapting to green technologies, presenting significant opportunities in undervalued assets.

Managing a transition finance project requires a systematic, data-driven process with an emphasis on understanding root problems, running models, and leveraging subject matter expertise.

Building a portfolio in transition finance is challenging due to the lack of historical benchmarks, requiring investors to rely on forward-looking models and long-term timelines, sometimes spanning over 30 years.