A just transition – like inclusive capitalism – is the only way to solve the climate and societal crises of our day
Notes from the Council | November 2022
This week, national leaders, policymakers, advocates and business leaders from around the world will gather for COP27 to attempt to bring more urgency and action to reverse the climate crisis. From nature loss to extreme weather, climate change’s impact is devastating for many. The leadership required to address it has never been more essential. At the same time, inflation, the war in Ukraine, food and energy shortages, and a range of other challenges demand time, attention, and resources from governments, businesses, investors and consumers alike. As serious as climate change is, some wonder whether we can afford to act.
Nevertheless, the business community has demonstrated its firm commitment to reduce the ill effects of climate change, not only here, but also through organizations like Glasgow Finance for Net Zero (GFANZ), Climate Action 100+, and the World Benchmarking Alliance. Even when Donald Trump pulled the United States out of the Paris Accord, business leaders and state and local leaders continued the fight. According to the UN, more than 1,200 companies have put in place science-based targets in line with net zero.
The actions of business leaders must be led by considerations of risks and costs but also in the context of the moral case for action. Poor, working, and frontline communities that did the least to cause the climate crisis are disproportionately suffering its consequences. The working and poor of the world are desperately in need of affordable energy, jobs and cohesive communities.
At the Council for Inclusive Capitalism, we look to the great faith traditions for wisdom and guidance on the need to care for both the planet and its people, including the most vulnerable among us as well as future generations. Pope Francis tells us in Laudato Si’: “The global economic crises have made painfully obvious the detrimental effects of disregarding our common destiny, which cannot exclude those who come after us. We can no longer speak of sustainable development apart from intergenerational solidarity.”
It is urgent that we address climate change, but a swift transition to clean energy risks growing inequality, high prices for consumers, and a loss of jobs and investments. We need climate action anchored in concern for people and communities. We need a just transition, and companies have a key role to play in contributing to this global shift.
One year ago, the Council for Inclusive Capitalism unveiled the Just Energy Transition Framework for Company Action during COP26, establishing a vision of how we can transition to a net-zero economy in a way that serves workers, communities, and consumers. Since then, we have worked with our members and partners to encourage them to adopt the framework’s principles and take concrete actions that advance a just transition.
In the weeks ahead, the Council for Inclusive Capitalism will be at the G20 in Indonesia and at COP27 in Egypt to share this work and discuss with companies, investors, and policymakers the importance of delivering a just transition. We will be sharing new actions and examples of how our members are driving a just energy transition in their own companies and industries Whether you lead a small enterprise or work for a large corporation, I encourage you to explore the framework and to consider joining us and making your own commitment. We all have a part to play in creating a more inclusive and sustainable world. If you would like to explore this more, please contact Janset Batibay.
In faith, sending you all of my personal best,
|Lynn Forester de Rothschild
Founder and Co-Chair
|View actions that support a just energy transition
🎬 Steward actions: Council leaders take new actions for a just energy transition
PayPal helps vulnerable populations build resilience amid a changing climate
PayPal is supporting the development of an ecosystem to help vulnerable populations build resilience amid a changing climate by 2030. As a founding funder and member of the Climate Innovation for Adaptation and Resilience Alliance (CIFAR, pronounced “see far”), PayPal is working to accelerate responsible innovation in digital finance for climate adaptation and resilience. The CIFAR Alliance aims to provide gender-inclusive climate adaptation and resilience tools and resources directly to 1 billion of the world’s most vulnerable people, as well as mobilize over $25 billion of catalytic public, private and capital market investment in widely scaled solutions by 2030. Read more about PayPal’s inclusive capitalism actions.
Suntory shares green hydrogen energy with local community
Suntory will collaborate with Yamanashi Prefecture on decarbonizing Hakushu Distillery and Suntory Minami Alps Hakushu Water Plant by installing the country’s largest green hydrogen power system at the company’s Hakushu facilities by 2025. The green hydrogen produced will not only be used as fuel for heat energy at the company’s Hakushu facilities but are also planned to be utilized in the surrounding communities. This is part of Suntory Group’s work to meet its 2030 target to halve GHG emissions in its direct operations to achieve net zero GHG emissions across its entire value chain by 2050. Read more on Suntory’s commitments.
📅 Upcoming Events
Just Energy Transition and the G20
November 12, 08:30 WITA/00:30 GMT/20:30 EST
The Council for Inclusive Capitalism has partnered with Council Ally, Asian Venture Philanthropy Network (AVPN) to bring together key leaders on Just Energy Transition for a breakfast event on the sidelines of G20 in Bali. This event will galvanize collaboration on capital mobilization to deliver a Just Energy Transition and chart a path of action toward G20 India. This session will kick off the G20 AVPN Community Engagement Event, an official B20 Side Event. Contact us for inquiries. Invitation only.
COP27: Accelerating a Just Transition in Food and Energy Systems
November 15, 15:00-16:00 EET/12:00 GMT/08:00 EST
Co-hosted by the Council for Inclusive Capitalism,WBCSD, and PwC, this panel will be a focused discussion on company adoption of just transition actions across value chains of the food and energy systems, sharing out sector learnings, case studies and commitments with the objective of engaging greater industry participation. If you or your organization are interested in attending, please let us know.
Putting Purpose at the Core of Business Practices
December 8, 15:00 GMT/11:00 EST
What is the difference between “purpose” and “ESG”? Are they just two ways of talking about the same thing? And is it really possible — or desirable — to try to measure purpose in practice? Part of the Inclusive Capitalism Learning Series, this one-hour webinar with Charles Wookey, former CEO of Blueprint for Business, will explore pragmatic approaches to centering business practices around purpose for greater action and impact with featured speakers Melanie Dulbecco, CEO of Torani, and Laila Page, Head of Sustainable Banking, Performance and Frameworks for Natwest Group. Learn more here or contact us with questions. This event is open to members only.
A Just Transition in Six Hundred Fifty Steps
The world is transitioning to renewable energy sources. Whether that transition happens seamlessly or painfully depends on how it is experienced by the communities and workers who live around and work in the energy sector. The move to clean energy production ultimately requires a big change for the families of those with careers and skills rooted in oil and gas industries.
In 2019, the town of Wick became home to what was, at the time, Scotland’s largest offshore windfarm. Beatrice Wind Farm is located 13 kilometers off the Caithness coast and is capable of powering up to 450,000 homes. The site also provides opportunities for workers to transfer their skills from the oil and gas industry to renewables. Two-thirds of Beatrice’s control room employees are ex-oil and gas workers.
Beatrice Wind Farm is operated by SSE, who is working hard to ensure that employees making career changes either by choice or necessity have the power to grow their networks, work on interesting projects that are contributing to positive global change, develop engineering knowledge or other skills, and work in a dynamic and rewarding environment.
|Read the full story|
SSE’s story is one of many shared in the 2022 edition of “Steps Forward.” Discover more stories of inclusive capitalism in action in the online magazine.
📖 Ally resource: World Benchmarking Alliance releases Transport Benchmark
The World Benchmarking Alliance’s fourth Climate and Energy Benchmark measures and ranks the world’s 90 most influential transport companies on their just and equitable low-carbon transition.
“The Transport Benchmark is the first comprehensive assessment of companies across air, rail and road, as well as sea freight (shipping) using the ACT Assessment along with just transition and social scoring. By considering social and decarbonisation issues together, the benchmark mobilises stronger action needed to hold companies to account on contributing towards a low-carbon transition that leaves no one behind.”
|See the Results|
🤝 Welcome New Council Members
Chief Executive, Amie Partners LLC
Mukhtar Ahmad Ali
Executive Director, Centre for Peace and Development Initiatives (CPDI)
Dr. Sally Uren OBE
Founder and CEO, Forum for the Future
Johan Jaehyong Heo
CEO and Chairperson, Root Impact
CEO, Sustainable Tourism Foundation Pakistan
Amb. Sanmi Olowosile
Chairman, Sustainable Green Environment Initiative
CEO, The Shareholder Commons
|See All Council Members|
📰 Inclusive Capitalism in the News
Bloomberg | Mark Schneider: Nestlé commits $1 billion to protect coffee from climate threat
NatureFinance | Simon Zadek: Finance for Biodiversity relaunches as NatureFinance, showcasing projects placing nature at the heart of global finance
Fortune | Having an ESG strategy is now a competitive business advantage
Atin Ito News | Jaime Augusto Zobel de Ayala: Zobel presses companies on their ESG commitments: Time to act now
Hotel News Resource | Punit Renjen: Travel association ABTA and Deloitte launch climate action guidebook
EFT Express | Pascal Blanqué: Amundi launches global ESG ETF suite
MarketScreener | Josu Jon Imaz: Repsol accelerates its commitment to polyolefins recycling by becoming Acteco’s shareholder
Solar Quarter | Duncan Wanblad: Anglo American and EDF Renewables partner to develop renewable energy ecosystem in South Africa
Ahram Online | Michael Meibach: Mastercard and Nclude partner to accelerate Egypt’s fintech ecosystem and boost financial inclusion
Wall Street Journal | Why ESG funds fail, and how they could succeed
Women’s Executive Network (WXN) | WXN names Competent Boards CEO Helle Bank Jorgensen one of Canada’s “Most Powerful Women” of 2022 for her ESG work
CalSTRS | Cassandra Lichnock: CalSTRS’ board commits to additional investment actions to address climate change and protect pensions