Portfolio-Level Just Transition Tool (Beta)

The Portfolio-Level Just Transition Tool helps investment professionals, particularly private capital GPs, identify potential climate-related human rights impacts across their portfolios and pinpoint where just transition risks—to people and to business—are more likely to occur. It applies a business model lens to assess how current or prospective investees' value propositions, value chains, and/or cost structures and revenue models intersect with climate-related human rights risks, including those arising from physical climate impacts and from climate action. It also offers example country risk indicators that reflect conditions that influence the likelihood that companies may undermine—or support—a just transition to a low-carbon, climate-resilient economy.

Specific use cases include:

• Evaluate portfolio segments and companies where just transition risks are most likely, based on high-risk business model features, sectors, and operating contexts;
• Prioritize portfolio segments and investees for deeper assessment or engagement;
• Identify potentially salient just transition issues in portfolios;
• Strengthen engagement with portfolio companies, including on transition planning and alternative business models that support long-term value creation;
  Support root-cause analysis of controversies; and
• Inform double materiality assessments and sustainability reporting on relevant topics.

The tool builds on Shift’s Business Model Red Flags, updated with a climate lens in collaboration with BSRs. To be most effective, this tool should be used in combination with other tools and resources in the PCAP suite.

Download (Excel File)