INTRODUCTIONINTRODUCTION PROCESS PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5 CONCLUSION just transition efforts across the company and in the communities where put people at the heart of the energy transition and ensure that human they are present. Recognizing the challenging nature of this work for 9 rights are respected. energy and utilities companies, it is essential that companies address WBA, in partnership and consultation with 20 other organizations, these trade-offs, and that the commitment to advancing a just transition including the ILO and social partners, has developed a methodology is re昀氀ected in the choices companies make for the future. 10 to assess corporate efforts on the just transition. This methodology This guidance recommends steps to take to better understand the includes just transition planning and is seen as a robust framework implications of contributing to a just transition, how to navigate the to assess company action. The methodology, which includes six process of formulating a just transition plan, and associated actions that indicators for the assessment, comprises a clear framework for can be taken. companies to understand important elements and aspects that are relevant to a just transition. What Is Just Transition Planning? Just transition planning is one of the six indicators that WBA assesses Just transition planning for business is the company’s approach and when evaluating companies’ just transition efforts and disclosures. strategy to transition to a net-zero economy in a manner that is just and Speci昀椀cally, the just transition planning indicator emphasizes the following elements: human-centered. A just transition plan speci昀椀es a company’s priorities, as well as the ambition level across all aspects of the just transition in 1. Just transition planning is founded on company commitments to relation to its activities and business model. The plan also establishes respect human rights, protect and promote decent work, and address objectives, actions, and key performance indicators (KPIs) for just impacts on workers and communities resulting from the net-zero transition activities, and thereby how the company aims to contribute transition. to a just transition. Establishing an internal governance structure for 2. Social dialogue and stakeholder engagement, and more speci昀椀cally just transition and ensuring that senior leadership and the board how companies integrate this engagement in the development of are engaged from the beginning is essential to the process of just just transition planning. transition planning to secure resources and buy-in for developing and 3. KPIs or metrics, or speci昀椀cally “a set of time-bound, measurable implementing the plan. indicators to mitigate the social impacts of the low-carbon Comprehensive social dialogue and stakeholder engagement will 11 on workers, other affected stakeholders, and the transition” enhance understanding of the perspectives and priorities of workers, company’s business relationships. their unions and representatives, affected communities, local and 4. Governance and that “responsibility for the just transition should national governments, and other stakeholders that are foundational to lie at the highest level of decision-making within the company the process of designing a just transition plan. Engaging these groups structure (e.g., at board level), and the individual or committee with is critically important to properly consider the challenges that arise 12 from immense transformation and necessary to co-create solutions that responsibility for it should have expertise on just transition issues.” BSR JUST TRANSITION PLANNING GUIDANCE 7