Climate & just transition

As negative impacts of climate change are becoming more and more prominent and the projected transition and physical risks are looming in the not-so-far future, economy-wide decarbonization is no longer an option but an imperative. In line with the tightening regulatory environment, customer and investor expectations, many corporations are rolling out initiatives to measure and reduce their carbon footprints.

Seeing as the negative effects of climate change will be disproportionally borne by the most vulnerable and exposed segments of society, it is also imperative that all stakeholders involved in climate action necessarily keep in mind the Just Transition dimension – ensuring that no person is left behind.

Thus, an equity lens should be applied at all stages of the climate adaptation and mitigation strategies – be it during planning, implementation, or monitoring – such that to equalize the distribution of benefits and burdens of such activities across societies. From a business perspective, it is quite common that corporate climate initiatives focus on transforming operations to become greener, thus stimulating the growth and availability of green jobs, but we at InclusEO strongly believe that, for example, green jobs should also be “decent” and accessible by the most vulnerable and disadvantaged as well as provide new opportunities.

The business viability of such an approach is non-refutable. For example, a recent CapGemini report has found that: “Those organizations that have outpaced their peers in implementing sustainable practices have witnessed higher revenue per employee relative to the average from 2020 to 2021, employing practices that result in operational efficiencies and sustainable benefits.”