INTRODUCTIONINTRODUCTION PROCESS PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5 CONCLUSION Climate Action 100+ (CA100+), the world’s largest investor Just transition planning, and the subsequent implementation of the engagement initiative on climate, has developed the Climate plan, is an important part of preparing companies for the future, 13 Action 100+ Net Zero Company Benchmark, which de昀椀nes 11 key including impacts on the current workforce, understanding new skills indicators of success for business alignment with a net-zero emissions needed to meet emissions goals and the potential for workforce future and goals of the Paris Agreement. Just transition is one of conversion, ensuring access to skilled labor, and respecting the human these indicators, signaling its signi昀椀cance on the investor engagement rights of workers and other affected groups including communities. agenda. Benchmark assessments are used to inform signatory Establishing and/or maintaining stakeholder and public trust as well as decision-making on engagement strategies and help assess alignment maintaining a social license to operate remain imperative. between a company’s stated decarbonization ambitions and their planned or actual decarbonization investments and activities. While a just transition has signi昀椀cant bene昀椀ts for society, just transition The CA100+ just transition indicator, developed in consultation with planning and implementing a just transition plan also bene昀椀ts global topic experts and investors, emphasizes: companies in the following ways: • Enhances long-term resilience of the company’s workforce and value • A commitment to just transition principles. chain. • Just transition planning and progress tracking. 14 • Creates green jobs, which can enhance social license to operate WBA and CA100+ have con昀椀rmed that these just transition benchmarks and improve relationships with local governments. are complementary and aligned. • Allows for better determination of investments in education and re- and up-skilling of workers, or of local communities more broadly, to 15 Why Is Just Transition Planning and mitigate the risk of skills shortage and ensure business continuity Implementation Critical? and competitiveness. • Mitigates operational risks by enhancing workforce relations and With the need for a just transition increasingly gaining global planning through social dialogue and respect for labor rights. recognition, just transition planning is now becoming critical to ensuring • Balances and clari昀椀es risks and opportunities, which can enable the social dimension of the transition is given suf昀椀cient attention. In executive buy-in and align leadership and company activities. fact, effective management of the social implications of climate change • Strengthens workforce relations that contribute to improved and climate solutions, and achievement of a just transition, helps 16. to accelerate climate action and ensures an inclusive and equitable retention and recruitment and promotes innovation approach to developing and implementing solutions for workers and • Promotes cross-company alignment and direction around long-term communities. goals, offers clarity in the form of concrete plans to achieve them, and increases ownership across the company. BSR JUST TRANSITION PLANNING GUIDANCE 8