Sustainable development can only be achieved by striking the right balance between economic, environmental and social components. Decarbonisation of our global economy will only succeed if climate justice includes solutions for workers and communities, also known as a ‘just transition’.
In light of the crucial role the private sector has to play in achieving a low-carbon world, WBA intends to assess 450 companies by 2023 on their contribution to a just transition by assessing their alignment with the goals of the Paris Agreement alongside their approach to addressing the social challenges of a low-carbon transition. These 450 companies employ around 24 million people, and hold immense influence to power a just transition. These assessments will be the first of their kind, publicly available and free.
This work is part of our broader work on assessing and incentivising companies to contribute to transforming our energy system and decarbonising our global economy.Learn about our Climate and Energy Benchmark
Launched in February 2021, our Just Transition Approach Report sets out how WBA proposes to approach these assessments, including how we will invite stakeholders to participate in the development of indicators for assessing companies’ contributions to a just transition through our multistakeholder process. It also includes a synthesis of the November 2020 findings from WBA’s Climate and Energy Benchmark and Corporate Human Rights Benchmark assessments in the automotive sector. Our timeline sets out the next steps and consultation moments in this process.See report
Publication of our approach to assessing companies on their contribution to just transition
Publication of our draft methodology
Public consultation of our methodology
1 April to 14 May 2021
Publication of our methodology
Publication of our 2021 Just Transition Assessment of 180 companies in high-emitting sectors
Launch of working group to track just transition progress
Working group to track just transition progress
Over the next year WBA will be convening with experts to develop a working group on how to track just transition progress. WBA’s assessments show the clear gap that exists for companies to integrate just transition. Other initiatives underway also show how just transition is being integrated at a state and sectoral level. These insights, coupled with WBA’s findings can inform a wider overarching just transition accountability and implementation framework. In turn, this framework can support policy makers and other stakeholders in driving company action on just transition.
Read more about the working group here.
WBA’s methodologies and benchmarks serve as roadmaps for companies, setting out the steps they can take to meet the needs and expectations of their stakeholders. In this methodology, we present the just transition indicators we will use to assess companies in 2021 and the multistakeholder feedback that has shaped them. We will assess 180 of the companies in scope of our decarbonisation and energy system transformation: 100 oil and gas companies, 50 electric utilities and 30 automotive manufacturers. In this methodology we also set our aims and expectations for the just transition assessments in 2021 and beyond.Read methodology here
As we build our work, we continue to engage with stakeholders across the globe through targeted communications with key organisations and representatives. We also encourage meaningful and constructive feedback.