Study on Advancing a Just Transition for SIFEM

We supported Swiss DFI SIFEM in exploring how climate investments can promote inclusive economic development

SIFEM, the Swiss Development Finance Institution, sought to better understand how it could contribute to a Just Transition in its investment activities. With growing global momentum around the concept — ensuring that climate action also delivers on social equity — SIFEM wanted to evaluate how SIFEM’s investments contribute to a just transition, supporting decent work, gender equality, and inclusive economic development in emerging and developing markets.

Steward Redqueen conducted a comprehensive study to assess SIFEM’s potential contributions to a Just Transition. The study reviews how just transition principles are integrated across SIFEM’s climate portfolio, from strategy and fund manager engagement to the practices of underlying portfolio companies. It draws on a diverse sample of climate investments, surveys with fund managers and portfolio companies, and a field visit to South Africa.

The study helped SIFEM further clarify how Just Transition principles can be meaningfully operationalised within a DFI context. The study provided the investment team and Board with concrete opportunities to enhance the social inclusiveness of SIFEM’s climate-related investments. It positioned the institution as a proactive contributor to global climate and development goals, and laid the groundwork for SIFEM to engage with peers, stakeholders, and investees around a more equitable and sustainable economic transition. Please find the link to the full study here.