"The transition" has become a much bigger part of the discussion about sustainability and the path to net zero. It's timely as investors and fund managers struggle between real-world carbon reductions and the carbon emitted from the fund's portfolio company investments. Currently, fund managers and companies seem incentivized to divest their carbon-rich assets and report declining carbon emissions to show they are doing the "right" thing. However, selling off and transferring emissions to another party that may not be bound by regulatory requirements does not solve this problem – walking away from the problems simply does not solve them. The simple truth is that the success or failure of businesses in transitioning to a more sustainable future, for themselves and for the world, will define the global fight against climate change and how we collectively achieve net zero. However, for investors, disorderly transitions translate into volatile market valuations and can lead to mispricing or impairment. (Rongrong Huo, Executive Director of Investment Institute)