This guidance document provides operational advice for companies on how to implement a just transition as they seek to reduce carbon emissions. The authors argue that businesses urgently need to understand how such a transition will impact them, outlining the various risks and opportunities (reputational, market, and technological) associated with the transition. Changes in perceptions of the company, shifts in supply and demand, improvements in innovations, policy actions, and industrial relations all provide opportunities for business to maximize positive impacts in support of a just transition.
The authors first make the business case for a just transition before outlining three stages of action for companies aiming to implement a just transition: engage, plan, and enact. They recommend that companies engage in social dialogue with workers, unions, government bodies, and other stakeholders at all phases of the transition, offering specific topics for discussion. With social dialogue as a foundation, a company should create a plan that “is concrete, time-bound, applies indicators, sets measurable goals, and is enterprise-wide.” The authors suggest that companies should conduct regular monitoring and reporting while implementing their plans and “advocate and collaborate… for stronger collective action” to promote a just transition. Throughout the text, the authors offer brief examples of just transition efforts at the business level. They conclude with an annex that offers general principles and recommendations that companies can incorporate into their procurement processes, business and employment planning, and emissions-reduction strategies.