The transition to a climate-neutral economy will impact people and geographies in different ways. By considering these impacts, businesses have a chance to address previous systemic inequalities and ensure new systems are fair and inclusive, while remaining profitable and in balance with the needs of the people and the environment.
The World Economic Forum and the Climate Governance Initiative, in collaboration with Deloitte, have produced a guidebook to provide corporate board members with an overview of the just transition and why it is essential in shaping corporate strategy.
By striving for a just transition, businesses stand to benefit as they enhance human capital, gain competitive advantage and enjoy the benefits of operating in a more stable economy.
As stewards of their organizations, board members have a duty to oversee effective management of the transition. It is crucial for boards to have a strong understanding of the just transition and its impact on key stakeholder groups by asking guiding questions, and highlighting exciting opportunities presented by the just transition.
The aim of this paper is to provide corporate board members with an overview of the just transition and why it is essential in shaping corporate strategy.