The transition to a green economy will be at risk if it does not account for and respond to the needs of those who will be most affected: workers, communities, and consumers. Following COP26 there is much discussion on the need for “just transition,” but what does just transition mean in practice?
During the World Economic Forum’s 2022 annual meeting, the Council and Handshake co-hosted a discussion on the critical role of companies in the global shift to a net-zero economy.
With members’ support and guidance, the Council for Inclusive Capitalism worked with public and private sector partners to develop a Just Energy Transition Framework for Company Action, the first-ever private sector guide for companies on concrete actions they can take to implement a just transition. The Council presented the Framework as a tool to help companies understand how to deliver on their energy transition targets with positive social impact as called for by Pope Francis in Laudato Si’ as well as in the Paris Climate Agreement.
Lynn Forester de Rothschild, Founding and Managing Partner of Inclusive Capital Partners led a discussion on the framework and the just transition imperative with other Council and Just Energy Transition representatives, including Cardinal Turkson, Chancellor of the Vatican’s Pontifical Academy of Sciences and the Pontifical Academy of Social Sciences, ITUC General Secretary Sharan Burrow and BCG Global Chair Rich Lesser. Representatives from bp, Repsol and Mastercard discussed their just transition actions before opening a moderated discussion, with examples of actions companies can take to advance both social and environmental goals, and an invitation to attendees to use the Framework to advance an energy transition that works for all.