INTRODUCTIONINTRODUCTION PROCESSPROCESS PHASE 1 PHASE 2 PHASE 3 PHASEPHASE 4 4 PHASE 5 CONCLUSIONCONCLUSION TOOL Operations, to ensure alignment on the company’s just transition Just Transition Governance approach and activities. Additionally, or alternatively, explore Guiding Questions establishing local working groups in key geographies, business lines, or operations where just transition is critical or presents signi昀椀cant To effectively implement, advance, and respond to stakeholder challenges, and establish mechanisms for integration and alignment expectations on a just transition, a clear and 昀椀t-for-purpose internal between locally-led activities and corporate-driven strategies and governance structure is necessary. Building an effective and well- approaches. integrated governance structure, which leverages existing structures and Ensure senior leadership oversight and board awareness processes where possible, will enable ownership, integration throughout Ensure the company’s cross-functional just transition efforts are the business, and the allocation of appropriate resources and expertise supported by senior leadership/top management and that adequate to address and invest in just transition activities and integration. There resources (including budget and staff time) are dedicated to carry out are several aspects of just transition planning that make implementing a the work in a meaningful manner. Ensure that the board is aware of the governance structure bene昀椀cial: elements of a just transition and considers them in decision-making. Understand internal staff expertise and capabilities: » Broad awareness and buy-in from across the entire company help to advance progress. As part of establishing a governance structure and de昀椀ning roles and responsibilities, assess current and relevant expertise in the individuals » Just transition planning requires collaboration, contributions, and and teams with just transition roles and assign responsibilities data from many functions and external stakeholders. accordingly. Identify and address gaps in expertise or capabilities on speci昀椀c just transition aspects. » Dif昀椀cult decisions, possibly including trade-offs, will need to be made. Consider establishing an external advisory committee Assemble a group, or join existing groups, of external stakeholders to » Stakeholder expectations for engagement and demonstrated serve as a strategic counsel and mechanism to advise on just transition progress are rapidly increasing. efforts. Ensure there are multiple perspectives in the group re昀氀ecting » Companies must be able to consolidate, measure, and communicate the diversity of interests of workers and stakeholders. progress. Building from the risks, opportunities, and impacts identi昀椀ed through Phases 2 and 3, the following pages can help guide internal governance discussions and consideration of different elements of just transition governance: BSR JUST TRANSITION PLANNING GUIDANCE 38