1) When we look at transition plan, we must acknowledge that it is long term plan with a lot of uncertainties and unknown. Hence It is crucial to accept the uncertainties and acknowledged what can be controlled, so to focus on the ones that can be controlled;
2) investment for adaptation has been overlooked and any transition plans should also include adaptation;
3) when analysing transition, it is required to go beyond energy to also include social;
4) As investors, the conversations with companies should focus on where the company see themselves being relevant by 2050. The follow up conversation would be how does that get blended into their business strategy over the next 5 years, who is accountable for, human capital set up for transition, how is the company motivated and assurance of their plans;
5) Scope 3 – the focus should be on what can be controlled i.e., upstream suppliers so to ensure the resiliencies of the supply chain. Asking a company to focus on downstream where the control on the use of product is challenging is not good use of company resources;
6) Offsets – it hasn’t been given the best PR. Offset has a place, as stated by the IPCC scientist. However, it needs to be done right and credible.

1.   The issues we have today
- Cost and Risk Management: Managing projects at the lowest possible cost leaves stakeholders vulnerable due to unlimited risks and assumptions about others' ability to pay, raising concerns about corruption and cost-effectiveness.
- Policy and Sovereign Responsibilities: Engaging emerging markets and defining sovereign responsibilities within taxonomies is complex, requiring a longer transition period of 10 years instead of 5 years.
- Market Challenges and Political Cynicism: Political cynicism and preference for distressed assets like coal persist, with investors reluctant to adopt new sustainable-linked bonds (SLBs) and heightened market risks post-invasion.
2.   Solutions
- Pricing and Financial Strategies: Determine appropriate pricing for initiatives, including externalities, and engage a sovereign rating agency without relying solely on credit rating agencies.
- Policy and Market Engagement: Encourage countries to explore sovereign bonds, embed policies in bond structures, and use step-up and step-down features for financial flexibility. Reconciliation of DMO general duty to get best value for taxpayers with step ups and step downs features. This allows money to move in and out - A real value would be 125bps but most do 20bps with step ups.
- Regulatory and Supportive Measures: Provide technical support through IFIs, create an enabling environment for SLBs with proper regulation and infrastructure, and address cultural differences in regulatory approaches.
3.    Key Takeaways
- Impact and Opportunities: SLBs can positively disrupt capital flows, integrate nature and environmental considerations into sovereign bond strategies, and attract new participants and bondholders as shown by Uruguay’s example.
- Data and Pricing Priorities: Prioritize data quality and verifiable KPIs, focus on pricing for SLBs, and understand the impact of actions on externalities to prevent EMs from being left behind.
- Regulation and Market Dynamics: SLBs require supportive regulation and infrastructure, tailored regulatory strategies for different cultural contexts, and incentives to improve market access conditions and funding costs.

1. Energy transition requires a systemic change towards the way we operate and the way we do things. It is still at early stage and can be viewed like a start up. We are going down the path of unknown but shouldn’t be afraid of failure along the way, because that is how we will learn and get towards an inclusive decarbonised world.
2. The energy transition would have unintended consequences especially in the social part. It cannot take a communist or dictator approach. We should be transparent and brave to have these difficult conversations e.g. green industries would not create as many jobs as the ones lost from retiring older technology
3. Energy transition should also not be seen as colonial or another form of imperialism. Considering different country nuances is important and advocating scope 3 emissions of countries or energy usage/ GDP would yield very interesting discussions. We have to stop saying the south or the poor or emerging markets but look at energy transition from a global perspective
4. Stewardship and engagement is important but it shouldn't be about asking companies to cannibalise itself. It would be more effective to discuss how companies are meeting the energy transition demand, not over produced and how to produce their goods and services in the most sustainable manner. Success from tailing dams is one good example
5. One thing that all of us have the most control of is our savings, personal investment and savings. We should start aligning our own personal finances, our love ones and close friends towards this direction

• Who are your fiduciaries? Interpretations vary (no surprises) and there is a case for identifying who our fiduciaries are, what their preferences might be, and of course education, education, education is key.
• Fiduciary duty forms the bedrock of how we behave as responsible professionals in the industry. That awareness should inform our everyday and longer term thinking. Failure to understand the evolving politics and legislation on fiduciary duty may lead to real litigation risks, from the corporate perspective as well as personal liability.
• This is playing out in the accounting standards space of course as we witness / participate in the historic birth of the ISSB and EFRAG standard setting – fiduciary duty may become more exciting than we ever thought. Some further consideration may be warranted m, the implications that flow from National Contact Point decision making – these bodies help to determine breaches of e.g OECD guidelines and UN Guiding Principles.

Problem:
• Geopolitical Tensions and Protectionism: Geopolitical concerns impact global shipping routes, and Western protectionist measures—often framed as human or environmental rights—can resemble selective imperialism, favouring US and EU interests over genuine global inclusivity.
• Challenges in Supply Chain Design and Sustainability: Current supply chains are complex and often inefficient by design, benefiting certain regions while making a low-cost, equitable transition difficult for others. This raises questions on whether sustainability goals are genuinely aimed at global benefit or tailored to suit Western standards.
• Balancing Cost, Ethics, and Resilience: Achieving sustainable supply chains requires balancing cost efficiency, ethical standards, and resilience against geopolitical risks. However, excessive frameworks and selective application of human rights principles complicate efforts to address real issues in a globally inclusive way.

Solution:
• Focus on Transparency and Data: Ensuring transparency and accurate data across the value chain is essential for meaningful sustainability efforts and risk assessment.
• Active Engagement and Collaboration: Driving engagement between banks, corporates, and private market players is key, with an emphasis on open discussions about fundamental risks rather than relying solely on Western frameworks.
• Innovative Solutions and Value Chain Certification: Sustainable progress requires innovation in sourcing alternative raw materials, full value chain certification, and a deeper commitment to addressing core issues rather than superficial standards.

Takeaways
• Global Alignment with Local Nuance: Strive for a common understanding of core principles globally, while recognising that a “one-size-fits-all” approach is ineffective and local expertise is essential for accurate insights along the value chain.
• Enhanced Role of Regulation and Activist Investors: Regulations and activist investors play crucial roles in driving progress, but regulation alone is not a complete solution and may sometimes create additional challenges.
• Proactive Engagement and Technology Use: Proactively engaging private market managers to focus on supply chain sustainability and leveraging technology for real-time monitoring can enhance accountability and drive meaningful social development.