Just Transition

The imperative to deliver returns over the long term has driven many pension funds to begin transitioning their portfolios towards a low-carbon economy. Investors are recognizing that the workers and communities most impacted by this transformation must be at the centre of transition plans. A just transition ensures that social dialogue drives the changes we make as we move towards a low-carbon economy.

Pension funds have a role to play in securing a fair and fast transition to a sustainable economy. A just transition framework can inform fund’ capital allocation-decision making. As investors, funds can engage with companies as they develop their scenario plans, bringing questions around workforce transitions into discussions. Asset owners can work to embed social issues into ongoing shareholder activism on climate-related issues. Investors can encourage companies in renewables and other green economy sectors to embrace workforce policies and practices that uphold workers’ rights and standards. Pension funds can integrate just transition into the investment and climate-related policy dialogues in which they participate.

The CWC works with participating unions and trustees to bring a workers’ capital perspective into climate-related investor initiatives. Our work draws on the ITUC shareholder resolution principles. Our network participants share their work as they respond to the transition to a low-carbon economy and the associated labour-related issues.

Photo: Pixabay | 12019