For successful decarbonization of the economy, investors must address not only the changes in business plans and practices necessary to stay within the 1.5°C limit, but must do so within a “Just Transition” framework that links their support for necessary climate action with commitments to labor standards, human rights, and inclusive growth—with a focus on the workers and communities who contribute to and are affected by the transition.
Our Theory of Change
ICCR’s Just Transition engagements with energy utilities are informed by relevant policy and regulation and by a multi-stakeholder, place-based consultative process. This place-based engagement with stakeholders is critical to informing members’ engagements with utilities. Developing relationships with impacted stakeholders— workers, as well as environmental justice and other affected communities—supports the ability of investors to engage with companies on specific and timely just transition issues.
The Business Case for Action
Existing systemic risks associated with racial and economic inequality, lack of decent work, and adverse impacts on human rights, as well as environmental degradation, may be exacerbated, creating significant financial uncertainties. Investors, companies, and governments have already faced resistance from workers and communities, and this resistance has slowed the transition.
Through a combination of dialogue, roundtables, and the filing shareholder resolutions, ICCR’s members are calling on companies and policymakers to ensure a just transition that supports a racially and economically equitable, decarbonized economy by prioritizing “high-road” jobs, respect for human rights, and positive community impacts.
On January 18 and 19, 2023, ICCR hosted a Just Transition Roundtable to provide a forum for utility companies and a broad range of stakeholders to share their perspectives on a just and equitable energy transition.