Climate transition finance metrics (TFMs) have become crucial for directing capital toward low-carbon pathways, yet their credibility, data integrity, and effectiveness in achieving near-term climate targets remain uncertain.
In this study, we systematically examine TFMs reported by some of the largest global financial institutions-including banks, insurers, asset owners, and asset managers-and conduct a cross-industry global survey with 219 practitioners to assess perceptions of TFM effectiveness and data availability.
Our analysis uncovers a significant discrepancy: while widely adopted TFMs such as climate risk exposure and green financing metrics are regarded as moderately to highly effective, the underlying data supporting these metrics is often incomplete or fragmented. Regression analysis indicates that organisations with advanced climate transition and adaptation plans exhibit greater scepticism toward conventional TFMs, suggesting that single-purpose or narrowly focused metrics may inadequately capture the complex dynamics of large-scale climate transition efforts.
Looking ahead, our results highlight the importance of providing strategic recommendations for policymakers, researchers, and financial leaders to optimise TFMs for achieving both near-term and systemic climate goals.