These guidelines, developed together with the LSE Grantham Research Institute, provide practical guidance to financial institutions on integrating Just Transition considerations in their strategies and operations.
The need for a Just Transition is recognized in the Paris Agreement on climate change. The transition to a low-carbon economy needs to go hand in hand with equitably addressing social and economic risks and opportunities and promoting decent work and it is detailed in the ILO Just Transition Guidelines.
Just Transition moves increasingly higher on the agendas of governments, companies, workers as well as financial institutions, who act as key enablers of the climate transition.
This tool describes the concept of a Just Transition and makes the business case for financial institutions to partner with stakeholders and peers to support a just climate transition. It illustrates prominent social issues that need to be considered by the financial sector while pursuing climate action. The tool is structured along financial institutions’ organizational processes providing concrete entry points to integrate social aspects within existing and emerging sustainability and net-zero alignment strategies, as well as Environmental, Social and Governance organizational policies and practices.