The transition does not stop at carbon
The shift to a low-carbon, climate-resilient economy is not only about emissions targets, capital allocation, and engineering solutions. It also affects, and depends on, employees, suppliers, and communities being equipped and committed to delivering it. When these stakeholders’ rights and needs are not respected or considered, this can pose reputational, legal, operational and/or financial risks to business.
"Responding to this calls for an integrated approach, in which climate, nature and social topics are considered together and built into core business decisions. This Roadmap focuses on one part of that approach: the link between climate action and people, known as a just transition."
In practice, an integrated approach means that impacts on people are considered within the processes, decisions and accountabilities a company already uses for its climate action, rather than as a separate track. This is consistent with a company’s responsibility to respect human rights across its activities and business relationships under the UN Guiding Principles on Business and Human Rights.
What do we mean by an integrated sustainability agenda?
Building people considerations into climate decisions in this way can help businesses identify issues early that may translate into business risks, such as permitting delays, workforce disruption and supply instability, while proactively identifying opportunities to create and capture value.
The evidence is mounting:
Returns: Companies with stronger social performance have delivered 3–7% higher five-year shareholder returns than peers.1
Productivity: Businesses with highly engaged workforces are around 23% more profitable than those with disengaged teams.2
Project delivery: Community conflict added USD $750 million — 31% in extra costs — to one energy project's budget.3 4
Legal exposure: 95 just transition legal cases have been brought globally, largely by workers, Indigenous peoples and frontline communities against renewable energy and critical minerals projects.5
How to get started with people-centered climate action?
A transition plan is the natural anchor to consider impacts on people, but the same logic applies to any climate decision, with or without one. A plan aligns a company’s business model and strategy with international climate objectives, and it can show where climate actions affect workers, suppliers, and communities, so these impacts are addressed systematically.
Two questions to ask yourself to get started:
- How could your climate actions or climate hazards impact your workers, suppliers and communities?
- What can you do to reduce adverse impacts and create positive impact?
What the Roadmap brings
The Roadmap helps companies turn an integrated approach into practice. It shows how to embed people considerations in the structures and processes where climate decisions are made, and which levers across the business to use, so that climate plans and targets are implemented with positive outcomes for workers, suppliers, and communities.
The Roadmap:
- Builds on decisions you are already making: embeds people considerations in existing climate planning and governance, with no parallel process to run or maintain.
- Gives leadership a clear pathway: shows what good looks like across six business domains and four maturity levels, so you can see your starting point, set priorities and take practical next steps.
- Meets you where you are: lets you start in the domains that fit your context and priorities, and build toward integrated practice at your own pace.
- Provides practical guidance and proven resources: peer-tested tools and case studies, plus shared terminology and outcomes, help functions work together on one integrated agenda.
Companies that work through the Roadmap are better placed to deliver climate plans on time and on budget, strengthening business performance, while creating better outcomes for workers, suppliers, communities and consumers.
Governance
Strategy
Risk Management
Operations
Capital Allocation