Toronto, March 31, 2025 – The Investor Leadership Network (ILN) has released a white paper, “It Takes an Ecosystem,” highlighting the critical need for collaboration between governments, regulators, corporates, investors, and multilateral development banks (MDBs) to accelerate global decarbonization. As the world transitions to a low-carbon economy, this report provides a strategic framework for aligning efforts, overcoming systemic barriers, and driving meaningful progress.
A Coordinated Approach to Decarbonization
Decarbonization is a complex and systemic challenge that requires action across multiple stakeholders. It Takes an Ecosystem emphasizes that while investors play a crucial role in financing the transition, their efforts must be supported by a broader network of interconnected agents. The paper outlines three key variables that influence decarbonization efforts:
Controllable Variables: Actions within an agent’s direct control, such as setting climate targets or developing green financial products.
Partially Controllable Variables: Actions requiring collaboration, such as supply chain decarbonization or policy advocacy.
Systemic Variables: External factors like economic conditions and political environments that impact progress.
Key Insights from the Report
Collaboration is Essential: No single entity can drive decarbonization alone. Success depends on cross-sector partnerships and systemic alignment.
Investors as Catalysts: Institutional investors can support decarbonization by aligning capital with climate goals, engaging with corporates, and developing innovative financial instruments.
Addressing Structural Barriers: Regulatory frameworks, market constraints, and financial incentives must evolve to enable effective action.
Real-World Case Studies: The paper showcases successful initiatives such as the EU Taxonomy, green bonds, and blended finance mechanisms that have unlocked capital for climate-aligned projects.
Recommendations for Stakeholders
The white paper provides actionable recommendations to drive progress:
Governments: Establish clear climate targets, invest in infrastructure, and provide incentives to attract private capital.
Regulators: Implement consistent disclosure frameworks and harmonize international standards.
Corporates: Enhance transparency, adopt innovative solutions, and engage in supply chain decarbonization.
Investors: Develop climate-aligned financial products and advocate for policy changes that support sustainable investment.
MDBs: Use concessional finance and risk-mitigation tools to attract private capital, particularly in emerging markets.
“Decarbonization is not just an investment challenge—it’s an ecosystem-wide endeavor,” said Amy Hepburn, Chief Executive Officer of the Investor Leadership Network. “This white paper provides a roadmap for stakeholders to work together in mobilizing capital, driving policy shifts, and fostering innovation to achieve a sustainable, low-carbon future.”
The full white paper, It Takes an Ecosystem, is available for download on the ILN website.
About the Investor Leadership Network (ILN)
The Investor Leadership Network (ILN) is the premier forum for tackling the most pressing challenges facing global financial institutions. Launched at the 2018 G7, ILN facilitates and accelerates collaboration by leading institutional investors on critical issues, including transitioning to a sustainable and inclusive global economy. The CEO-led group comprises 12 global institutional investors representative of all continents and assets classes, with over US$10 trillion in assets under management.