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’. Part of this just transition, according to the Paris Agreement, involves the creation of decent work and quality jobs. The private sector has a critical role to play in facilitating the shift towards a low-carbon world, but it must work in tandem with communities, workers, unions and policymakers to ensure no one is left behind.
In light of the crucial role the private sector has to play in achieving a low-carbon world, the World Benchmarking Alliance (WBA) intends to assess 450 companies (as part of the decarbonisation & energy transformation) 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. WBA’s just transition assessments will be the first of their kind; publicly available and free rankings of some of the world’s most influential companies in high-emitting sectors, on what they are doing to minimise negative impacts on workers, communities and the most vulnerable, as they work towards their low-carbon goals. These assessments can become a unique and critical mechanism to hold these keystone companies accountable.
This 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.
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