INTRODUCTIONINTRODUCTION PROCESSPROCESS PHASE 1 PHASE 2 PHASE 3 PHASEPHASE 4 4 PHASE 5 CONCLUSIONCONCLUSION Purpose To effectively implement, progress, and respond to stakeholder expectations, it is essential to establish a clear governance structure for just transition efforts within the PHASE company. Building an effective and well-integrated governance structure will enable ownership, accountability, and integration throughout the business. 4 Recommended activities in this phase Determine a governance structure for just Consider establishing a just transition transition working group Establish clear ownership of and responsibility Explore creating a cross-functional working for a just transition by de昀椀ning roles and group that includes representatives from responsibilities at various levels and across different functions and business units functions. Provide alignment and clarity to relevant to just transition, including Climate/ those executing the work and enable effective Sustainability, Human Resources/Labor Establish Company communication between the various teams Relations, Social Performance/Stakeholder Governance of involved. Engagement, Contracting & Procurement/ Supply Chain, Tax/Finance, Government Just Transition Relations, Strategy, Legal, and Business/ In line with the World Economic Forum’s Principles for E昀昀ective Climate Governance, boards have a duty to shareholders to oversee e昀昀ective management of the transition, which might include providing direction and support to ensure that impacts, opportunities, and inequalities along the value chain are anticipated and managed. Boards are also responsible for helping shape the company’s strategic direction and long-term vision and enabling a just transition through stewardship, holding executives accountable, and ensuring appropriate resource allocation.23 BSR JUST TRANSITION PLANNING GUIDANCE 37