The Council for Inclusive Capitalism has shared the results of a month-long initiative to help businesses ensure that the benefits of the energy transition are shared by workers, communities and customers.
The Just Energy Transition: A Framework for Company Action is part of a collaborative effort led by the Council, Boston Consulting Group (BCG) and bp in consultation with the Vatican Dicastery for Promoting Integral Human Development to develop actionable guidance for companies to deliver an energy transition that advances social equity.
“The private sector has a key role to play in financing and contributing to this urgent global shift in a way that is just for everyone involved,” said Mark Carney, UN Special Envoy for Climate Action and Finance and Prime Minister Johnson’s Finance Adviser for COP26. “This initiative is only the start of the journey. It will take the commitment and collective action of all – government, industry and civic leaders – to achieve a swift and just transition to clean energy and a net zero economy.”
This collaborative initiative involves building a resource hub of best practices, case studies, research and actions that companies can use to lead a swift energy transition that benefits all involved. The framework along with an accompanying whitepaper are among the initial resources developed by the group.
Founder of the Council for Inclusive Capitalism and Managing Partner of Inclusive Capital Partners, Lynn Forester de Rothschild said: “We all learn from experience and it is the first movers who have the most to teach. The framework and its building blocks for action for an inclusive transition to clean energy is applicable to all sectors and the Council invites all companies to explore how they can do their part to be a uniquely powerful force in creating a more inclusive net-zero economy with the framework.”
The document outlines four core pillars that each have five areas for action to guide companies as they consider the social and economic impacts of their transition:
- supporting universal access to energy and a net-zero emissions world,
- evolving the energy workforce to support a low and zero carbon energy future,
- building community resilience, and
- fostering collaboration and transparency throughout the process.
Energy transition will build on concept of collaboration
The framework builds upon existing literature and was created in collaboration with partners Climate Action 100+ and the World Benchmarking Alliance developing just transition assessment methodologies used by investors so that markets can recognise and reward those companies transitioning justly.
“There will be no energy transition unless it is just,” said Bernard Looney, bp CEO. “We must ensure that workers and communities do not lose out as we strive to help our planet. We must take everyone with us. That is why developing this framework made sense to us at bp. We want a transition that ensures no one is left behind.”
Global Chair of BCG, Rich Lesser: “Collaboration, transparency and leadership from the private sector will be critical to making a just transition to net-zero emission. The framework and resource hub will help organisations on their journey, learn from each other and ensure the transformation is respectful and beneficial to a broader set of stakeholders.”
According to the Council, the release of this framework is a starting point intended to catalyse longer-term action. Companies participating in the initiative have already shared their commitments to deliver on social as well as environmental goals on their way to achieving net zero emissions with companies like ACEN, Anglo American, bp, Eni, Reliance Industries, Repsol and SSE already pledging commitments.
CEO of the Council for Inclusive Capitalism, Meredith Sumpter: “In light of the latest IPCC report, the time to transition to a net-zero economy is now—but how we transition is as important as the environmental targets we set. These initial actions for an energy transition that advances and not impedes social equity are a starting point for the work that needs to be done. We invite companies, investors and governments to make use of the framework to deliver a transition that is just.”