Achieving a Just Transition:
Framework for Company Action
Key Activities
- Develop/Implement measures (policies and initiatives) to protect the rights of the workers and communities impacted by assets being converted, retired, or sold.
- Work with local communities and governments to create alternative employment opportunities.
- Design training programs to upskill impacted workers ahead of asset transition plans.
See it in action
In 2019, ACEN divested ~500 MW of thermal coal assets, worth $574m, and re-invested into renewable energy developments.
One of the interested investors was the company’s partner Aboitiz Power. Aboitiz Power was not necessarily the highest bidder, but ACEN management decided to prioritize the existing partnership as they were the least risky from a business and organizational standpoint, management had a good organizational rapport, the dynamics are good, it ensured business continuity, was relatively straightforward, and was beneficial for people welfare.
Eni is operating a gradual conversion of traditional refining in bio-refineries using new technologies for the exploitation of decarbonized products and recycling of waste materials, with the aim to increase biorefining capacity up to 5-6 MTPA by 2050, continuing to guarantee current employment levels.
Anglo American pursued a responsible transition away from thermal coal as part of its strategy. An experienced and diverse management team and board was set up to enable Thungela to be a responsible steward.
They established an employee partnership plan and a community partnership plan, with each holding a 5% interest in the Thungela thermal coal operations in South Africa, thereby enabling employees and communities to share in the financial value that we generate. Anglo American also committed an initial cash injection of $170m and further contingent capital support until the end of 2022 to set up Thungela as a sustainable standalone business.
Who's measuring these actions?
Just Transition Indicator 3 Metric a: Company has public commitment to create and provide or support access to green and decent jobs as part of the low carbon transition
Just Transition Indicator 3 Metric c: Company demonstrates the measures it takes to create and provide or support access to green and decent jobs for workers and other affected stakeholders
Just Transition Indicator 4 Metric a: Company has public commitment to re- and/ or up-skill workers displaced by transition to a low carbon economy
Just Transition Indicator 5 Metric c: Company demonstrates how it contributes to addressing the impact of the low carbon transition on workers’ social protection in the contexts in which it operates
Sub-indicator 9.1
- Metric a) The company has committed to decarbonize in line with defined Just Transition principles, recognizing the social impacts of its decarbonization efforts
- Metric b) The company has committed to retain, retrain, redeploy and/or compensate workers affected by its decarbonization efforts
More Blocks in this theme: Universal Net-Zero Energy
= Core Best Practice
= Just Energy Specific Practice
