More than five years after the Paris Agreement, high-level commitments to a just transition to a resilient, net-zero economy are being translated into practical action by a small but growing number of governments and businesses, often working with trade unions and other stakeholders. Investors are also recognising their responsibility and role in delivering a just transition. The task that lies ahead is how to translate this high-level ambition into operational steps that investors can take to deliver both integrity and impact.
This report sets out a framework of just transition expectations that investors can use in conducting due diligence and assessments of companies, engaging with portfolio holdings and allocating capital.
The framework is based on international standards and emerging practice and it is applied to five companies in the European electric utilities sector to learn lessons for wider adoption.
The report closes by highlighting areas for priority action by investors and others as the just transition moves from the margins to the mainstream of the climate agenda.
An accompanying 8-page policy brief summarises the key points.