Assessing a just transition: measuring thedecarbonisation and energy transformationthat leaves no one behind
Just transition approach reportFebruary 2021

Executive summary
Sustainable development can only be achieved by striking the right

The WBA just transition assessments will be the first of their kind;1balance between economic, environmental and social components.

publicly available and free rankings of and insights into the contri-

Decarbonisation of the economy will only succeed if climate justicebutions of globally influential companies in high-emitting sectors

includes solutions for workers and communities. The Paris Agreement

to a just transition and their alignment to a low-carbon pathway.

accounts for ‘the imperatives of a just transition of the workforce

These assessments can become a unique and critical accountability

and the creation of decent work and quality jobs.’ The private sector

mechanism of a decarbonisation and en ergy transformation thathas a critical role to play in facilitating the shift towards a low-carbon

leaves no one behind.

world, but it must work in tandem with communities, workers, unions
and policymakers to ensure no one is left behind.

This report sets out how WBA proposes to get there, including how
we will invite stakeholders to participate in the development of in-

The World Benchmarking Alliance (WBA) is an independent organisa-

dicators for assessing companies’ contributions to a just transition

tion that is building a movement to measure and incentivise businessthrough our multistakeholder process. It also includes synthesis of the

impact towards a sustainable future that works for everyone. We

November 2020 findings from WBA’s Climate and Energy Bench-

have identified seven systems transformations that need to take place

mark and Corporate Human Rights Benchmark assessments in theto put our society, planet and economy on a path to achieve theAutomotive sector.

Sustainable Development Goals (SDGs). To turn these transformations
into action, WBA, in close collaboration with its Allies, is developing

Our timeline sets out the next steps and consultation moments ina series of publicly available and free benchmarks that assess andthis process. If you have any questions or comments in response to thismeasure the contributions of the 2,000 most influential companies

report, we warmly welcome feedback to:to the SDGs. We call these companies the SDG2000. 450 of these

info.climate@worldbenchmarkingalliance.org

companies have been identified as most influential for the decarbonisation and energy system transformation.
In light of the crucial role the private sector has to play in achieving
a low-carbon world, WBA intends to assess these 450 companies
by 2023 on their contribution to a just transition by assessing theiralignment with the goals of the Paris Agreement alongside theirapproach to addressing the social challenges of a low-carbon transition.
2

WBA’s approach to assessing
a just transition
Transforming our energy system and decarbonising the economy istransitions for workers, enterprises and communities in an equitablea crucial step in the fight against climate change and therefore has amanner.’ 5 Since 2015, there has been a continued push from civil

potential impact on billions of people. The decarbonisation and energy

society and unions on this front, as well as an increasing recognitiontransformation will directly impact the lives of those involved in high-from governments and policymakers, investors and companies, ofemitting sectors and energy generation businesses and their extended

the need to ensure that addressing climate change and providing for

supply chains. These workers and the communities dependent on themclimate resilience that leaves no one behind.6

will be at as much risk of negative impacts during the transition to a
low-carbon economy as the farm and factory workers were during
the industrial revolution. As seen by the recent gilets jaunes protests
in France, as well as protests in Ecuador and Chile,2 approaches toachieving the Paris Agreement temperature goals that do not bringpeople along can have many secondary impacts beyond unemployment, including civil unrest. The social challenges arise when thetransition to a low-carbon economy is not sufficiently planned or
resourced to manage social impacts, and when it happens too fast
for policy and socially focused interventions to keep pace. However,transformations always come with both risk and opportunity. A newreport by McKinsey has projected that a net-zero transition in the EU
would create a net increase of five million jobs.3

A just decarbonisation and energy transition‘Just transition’ can refer to an equitable sustainability transition forworkers in any sector. In the context of the Paris Agreement, it refers toa just transition in the shift to a low-carbon economy.4 In November
2015, the International Labour Organization (ILO) adopted a set of
guidelines to ensure that ‘national and global efforts to tackle climatechange […] further employment creation goals, social justice and fair3

WBA’s approach to assessing
a just transition
The role of the private sector

FIGURE 1: How a just transition can bring together different SDGs

Companies have a crucial role to play in facilitating the shift towards
a low-carbon world in a way that leaves no one behind.7 100 active

Core goals

Wider foundations

fossil fuel producers have been linked to 71% of industrial greenhouse gas emissions since 1988.8 At the same time, an estimated28.4 million people work in, or work in support of, the energy sector
and a further 1.4 billion workers have been identified as employed
in sectors critical to climate stability.9 Companies have also helped
build communities around their operations and have benefitted from
this; so for sectors in which withdrawal of operations is necessary, thiscomes with responsibility to plan for those communities too. Investors
also increasingly require companies to disclose climate-related risks,
opportunities, labour practices and workforce planning, and see theseas material to company performance.10 Through engagement withworkers and their communities, unions and policymakers, companies
can act as a force for good in accelerating and implementing key
elements of a just transition.
Moreover, by contributing to a just transition, companies can takeaction towards both the Paris goals and the SDGS, in particular SDG 8
on Decent Work and Economic Growth. A just transition connects
multiple SDGs as illustrated:

Immediateconnections
Critical linkages
From Robins, N., Brunsting, V., and Wood, D., “Climate change and a just transition: A guidefor investor action”, Grantham Research Institute on Climate Change and the Environment
and the Initiative on Responsible Investment, 2018. Available here: [Online]4WBA’s approach to assessing
a just transition
In light of this, WBA will commence measuring the private sector’s

FIGURE 2: WBA's seven systems transformations

contribution to a just transition by developing assessments of thecompanies in high-emitting sectors that are most influential for the

ACT methodologies

decarbonisation and energy transformation. These assessments will
be designed to be flexible, enabling future measurements of other

ANCIAL SYSTEM
FIN

elements of a just transition (e.g. enabling access to modern andsustainable energy as per SDG7, or decarbonising and enhancing
climate resilience in the agriculture sector).

DECARBONISATIONAND ENERGY

Just transition: social assessments in the decarbonisation andenergy transformation
WBA is benchmarking 2,000 companies across seven systems transformations. We are assessing 450 companies within the decarboni-

URBAN

FOOD AND
AGRICULTU-

sation and energy transformation, measuring their progress against

SOCIALthe Paris Agreement and the related SDGs. These companies are
currently assessed using Assessing low-Carbon Transition or 'ACT
methodologies’. ACT low-carbon transition assessment results areused to generate the WBA Climate and Energy Benchmark.
The 'social transformation' sits at the heart of the WBA model and

DIGITAL

CIRCULAR

the social transformation framework was published in January 2021.
With this framework, WBA has committed to integrating social criteria
in all transformation benchmarks going forward.
For the decarbonisation and energy transformation, these social
criteria will be based on a common set of core social indicators(applicable to all 2,000 companies in scope for WBA’s benchmarks)5

WBA’s approach to assessing
a just transition
as well as a series of just transition social indicators that are being
developed and consulted on currently.

FIGURE 3: Integrating social assessments into the decarbonisationand energy transformation

The core social indicators, combined with the just transition social

NCIAL SYSTEM
FINA

indicators and the ACT low-carbon transition indicators will enable
us to measure the 450 Climate and Energy Benchmark companies
on their contribution to a just decarbonisation and energy transition.

DECARBONISATIONAND ENERGY

Industry and company scope
450 companies – the ‘D&E450’ – will be benchmarked in the Climate

URBAN

and Energy Benchmark. They sit in the automotive manufacturing,

FOOD AND
AGRICULTURE

SOCIALelectric utilities, oil and gas, transport, real estate, cement, metals
and mining, and heavy machinery sectors. The 2021 just transitionassessments will be done on 100 oil and gas, 50 electric utilities and
30 automotive companies.
DIGITAL

CIRCULAR

Acknowledging that different sectors will require unique corporate
contributions to a just transition, WBA plans to develop a set of sectoragnostic just transition indicators along with sector-specific indicators,
as required for each industry benchmarked (see Figure 3). WBA’s
just transition assessments will combine the low-carbon transitionassessment and the social assessments:

At least 20%

Core social
Just transitionindicatorsscocial indicators(common to(sector agnostic
all benchmarks)
and sector
specific)

No more than 80%

ACT low-carbon transition indicators

6

WBA’s approach to assessing
a just transition
The WBA just transition assessments will be the first of their kind;WBA’s financial system transformation is also relevant to a justpublicly available and free rankings of the contributions of globallytransition, with financial institutions both influencing the companies

influential companies in high-emitting sectors to a just transition.

benchmarked, and transforming the financial system itself. Cross-

These assessments can become a unique and critical accountability

system collaboration will be crucial to achieving the SDGs and othermechanism of a decarbonisation and energy transformation that

global goals for sustainability.

leaves no one behind.

7

Developing WBA’s approachto assessing a just transition
WBA has scoped the areas in which additional indicators are required
to assess companies on their contribution to a just transition, through:1	Desk-based research, including a mapping of existing WBA
indicators and those of our Allies and other key stakeholders
that relate to a just transition.
2	Synthesis of findings from the 2020 Climate and Energy
Benchmark (CEB) and Corporate Human Rights Benchmark(CHRB) of 30 keystone automotive manufacturing companies.
3	Initial dialogues with expert stakeholders in relation to thescope of just transition topics.
Each area is explained in more detail below:

1

Desk-based research

WBA began the development of our just transition approach throughdesk-based research. Through this, we identified in which areas
companies can contribute to a just transition and which of theseareas could in principle be assessed through indicators to form
benchmark outputs (our ‘proposed just transition topics’). As with
all WBA indicator development, we build on the work of others andso analysed international norms, frameworks, and standards on ajust transition, including:•International Labour Organization (ILO), “Guidelines for a justtransition towards environmentally sustainable economies andsocieties for all”, 2015.
8

Developing WBA’s approachto assessing a just transition•

Just Transition Centre and The B Team, “Just Transition:
A Business Guide”, 2018.

•	
BSR and We Mean Business, “Climate + Just Transition, The

2	Synthesis of findings for 30 keystone Automotive
sector companies in the Climate and Energy
Benchmark and Corporate Human Rights Benchmark

Business Case for Action”, 2018.
•	
Robins, N., Brunsting, V., and Wood, D., “Climate change and a

In the coming decades, emissions-intensive sectors, such as auto-

just transition: A guide for investor action”, Grantham Research

motive, face the major challenge of shifting to a low-carbon economy

Institute on Climate Change and the Environment and thewhile upholding the central promise of the SDGs to leave no one

Initiative on Responsible Investment, 2018.

behind. They will do this by paying attention to both the low-carbon•	
Stockholm Environment Institute, “Seven principles to realize atransition and the human rights impacts that come with this – andrecognising the interlinkages between them. Demonstrating successjust transition to a low-carbon economy”, 2020.
•	
Climate Action 100+ Net-Zero Company Benchmark, 2020.

in both areas is paramount to ensure a just transition. The point of•	Business and Human Rights Resource Centre Renewable

the just transition indicators is to make that integration even more

11

Energy and Human Rights Benchmark, 2020.12
We reviewed other instruments underpinning the social transformation more broadly, including:•	
United Nations Guiding Principles on Business and Human
Rights, 2011.
•	OECD Guidelines for Multinational Enterprises, 2011.

explicit and provide a roadmap of the steps companies can take tocontribute to such a transition.
WBA has therefore analysed results from two of our benchmarks - theClimate and Energy Benchmark (CEB) and Corporate Human Rights
Benchmark (CHRB) to gain insight into the current state of companies’
contributions to a spotlight area of the social transformation that is a
key enabler of a just transition: respect for human rights. 30 keystone

We also reviewed relevant reporting frameworks, including the GRI

companies were assessed in both the 2020 CEB Automotive Perfor-

and SASB Standards.

mance Update and in the CHRB. This has allowed WBA to assess
automotive companies’ performance regarding their efforts to advanceFurther, we are building on our own WBA methodologies, which are

the low-carbon transition as well as respecting human rights.

built in turn on existing frameworks, standards, and norms. Appendix 1of this report presents a mapping of the proposed just transition

When comparing the CEB and CHRB Automotive assessments, thetopics that were identified through this desk-based research against

results are alarming. Almost no correlation could be found between

existing WBA core social and ACT methodology indicators.

the companies’ relative performance on either benchmark, suggesting9

Developing WBA’s approachto assessing a just transitiona disconnect between their disclosures as well as their actions on
climate and human rights issues (Figure 4). Some companies that
demonstrated action on climate issues, such as low-carbon transition
plans, emissions reduction targets and climate change oversight,
disclosed very little, if any, information on how they manage humanrights, and vice versa. This lack of correlation suggests that many automotive manufacturers still consider climate and human rights issues
separately, to be addressed independently of each other, despite thefact that they are increasingly recognised as interconnected.

FIGURE 4: Comparison of results: Climate and Energy Benchmark vs.
Corporate Human Rights Benchmark
Climate and Energy
BenchmarkCompany

CHRB

Anhui Jianghuai Automobile Group		BAIC Motor*
BMW
BYD
Chongqing Changan
Daimler
Dongfeng Motor GroupFAW Car Company*
Fiat Chrysler Automobiles

Case Study: Tesla Motors

Ford
Geely*

Even companies that perform well on emissions have far to go on

General Motors Corporation (GM)supply chain, transparency and human rights aspects of their business.

Great Wall Motor Company

Tesla Motors, a major manufacturer of electric vehicles, performed

Guangzhou Automobile Groupstrongly on the vehicle in-use emissions module in the 2020 CEB but
poorly on supplier engagement and target setting. Similarly, whenobserving the company’s approach to managing human rights, Teslascores in the bottom third of companies assessed in the CHRB with an
overall score of 6.3/100. This approach has come under recent scrutiny,
with a 2020 shareholder resolution demanding Tesla improve its
disclosures on human rights governance, due diligence and remedy.

Groupe PSA
Honda Motor Company
Hyundai Motor Company
Kia Motors Corporation
Mahindra and Mahindra
Mazda Motor Corporation
Mitsubishi Motors Corporation
Nissan Motor Company
Renault
SAIC Motor
SubaruSuzuki Motor Corporation

While the resolution did not pass (24.8% voted in favour), it high-Tata Motors

lights that even when a company contributes to decarbonisation,

Toyota Motor Corporationa lack of essential human rights policies and processes to prevent

Volkswagen

abuse of communities and workers cannot be overlooked.

Tesla*For these companies (BAIC Motor, FAW Car Company and Geely), the Climate andEnergy Benchmark has assessed a different corporate entity from CHRB.

10

Developing WBA’s approachto assessing a just transition
A key area of weakness for the sector in both assessments is supply

proposed just transition topics (set out in Appendix 1) were discussed,

chain management. The CHRB found that 90% of automotive com-and stakeholders were invited to comment on the completeness, global

panies assessed failed to set core expectations through contractual

applicability, and relevance of each topic.

arrangements with suppliers for risks such as forced labour and childlabour, and only one mapped its direct and indirect suppliers for major

Overall, the dialogues confirmed that benchmarking keystone com-components. Similarly, in the CEB, more than half of the companies

panies in high-emitting sectors on their contribution to a just transition

showed no evidence of driving emissions reductions throughout theirin publicly available and free outputs will be an impactful addition to

supply chain, and a quarter of companies did not engage their suppliers

the landscape and that the proposed topics appear broadly relevant.

on climate change issues and greenhouse gas emissions at all. As

Unions and civil society organisations can use the transparency

companies begin to shift towards greener power, demand for energy

provided by these assessments to hold companies accountable, andstorage in the form of batteries is expected to grow, particularly in thegovernments can use them as evidence to inform policy making for aelectric vehicle market. In this context, a lack of supplier engagement,

just transition. Additionally, investors and the companies themselves

especially in the areas of forced labour and child labour, is concerning.

will be able to use the assessments as a roadmap to move towards

This is because minerals present in these batteries are often sourced

leaving no one behind in the transition towards a low-carbon economy.

from politically unstable locations and have been linked to pervasive
human rights abuses, including child labour.

Stakeholders also flagged the following content for consideration:

3	Initial dialogues with expert stakeholders in relation
to the scope of just transition topics• Communities should be explicitly covered as well as workers.
•	Social dialogue should be clearly and correctly defined and is

Further, WBA has conducted initial stakeholder dialogues with•	Differing views were provided regarding the need for formal

distinct from stakeholder engagement.

leading labour, business, academic and civil society organisations

engagement by companies with unions and worker representa-

with expertise on the just transition, including the officials from thetives. One stakeholder said this is necessary for just transition;

ILO, the Business & Human Rights Resource Centre, Ceres (working on

another noted that some regions’ workforces do not have formal

the Climate Action 100+ Net-Zero Company Benchmark), BSR, therepresentatives and so only informal dialogues are possible.

Interfaith Center on Corporate Responsibility (ICCR), the International•	A gender and inclusivity element should be explicit in assessing

Institute for Environment and Development (IIED) and the Institutefor Human Rights and Business (IHRB). In each conversation, the initialdecent and green job creation and reskilling workers.

•	Emphasis should be placed on retaining, retraining/reskilling11

Developing WBA’s approachto assessing a just transition
and redeploying workers; not making workers redundant in the
low-carbon transition.

•	Sector-specific indicators should be developed, as e.g. theautomotive manufacturing sector has different impacts andsupply chain structures to the electricity generation sector.

•	‘Just transition’ is a recognised term in many regions but not all.
Terminology must be clear and globally inclusive.

•	Land, water, and other environment-related human rights
should be considered for inclusion.
The proposed topics, revised to reflect this feedback, are set out inAppendix 1.

12

Timeline for WBA’s justtransition assessments 2021
We have identified that benchmarking companies in high-emitting

III Public consultation on draft just transition indicators

sectors on their contribution to a just transition is both useful andwill require developing additional indicators. WBA therefore proposes

March – April 2021: The draft just transition indicators will be open

the following timeline to develop these indicators and apply themfor stakeholder feedback for a six-week consultation period. WBA

to assess 180 companies across the Automotive (30 companies),

will host virtual roundtables in April to gather stakeholder feedback.

Electric Utilities (50 companies) and Oil and Gas (100 companies)
sectors in 2021:

IV Publication of final just transition indicatorsI

May 2021: WBA will integrate feedback, consult with the JTAG, andComposition of the WBA Just Transition Advisory Group (JTAG)

publish our finalised just transition indicators.
February 2021: WBA will bring together a Just Transition Advisory
Group (JTAG) of multistakeholder experts on just transition. The JTAG
will aid the formulation of the just transition indicators and theirV	Assessment of 180 companies in high-emitting sectors by theend of 2021

application for company assessments. The JTAG will also identify
opportunities for collective impact, in support of the just transition

From June 2021 onwards:

and changing company behaviour.

•	Publish ACT assessment results of 100 Oil and Gas sector
II Publication of the draft just transition indicators

companies. Begin low-carbon assessments of 50 Electric Utilitiesand 30 Automotive sector companies.

March 2021: In collaboration with the IHRB, WBA will publish a series of•	Assess 100 Oil and Gas, 50 Electric Utilities and 30 Automotive

policy briefs, setting out the draft just transition indicators and back-sector companies against core and transformation-specificground on why each indicator is proposed for company assessments.

social indicators and combine the results with the ACT

These publications will include the sector-agnostic as well as sector-

assessment to create an assessment of their contribution to thespecific indicators. They will include the details of how stakeholders

just transition.

can provide feedback on the draft indicators.

•	Develop networks for creating impact with the just transitionassessments. Engagement at key moments and fora, such as
the EU Just Transition Platform and the Partnering for Green
Growth & the Global Goals (P4G) Summit.
13

Timeline for WBA’s justtransition assessments 2021

Q3 2021: Publish the just transition assessments, including low-carbon
transition assessments for the 100 Oil and Gas, 50 Electric Utilities and
30 Automotive sector companies. Engage on assessment results at
COP26 to bring deeper accountability for companies in scope for
the Climate and Energy Benchmark, sharpen the view on businessissues core to a just transition and converge climate and sociallydriven stakeholders for collective action.

14

Conclusions
The purpose of this report was to answer:

companies accountable, and governments can use them as evidence
to inform policy making for a just transition. Additionally, investors

1 	Will WBA assessments of the D&E450 companies on theirand the companies themselves will be able to use the assessments

contribution to a just transition be an impactful addition to theas a roadmap to move towards practices to ensure no one is left

landscape?

behind in the decarbonisation and energy transformation. WBA will2	How can WBA develop these assessments in a way that builds

continue to develop additional indicators, by building on what is out

on the work of others and that will accelerate corporate

there, with the support of the JTAG and through its multistakeholder

contributions to a just transition?

methodology development processes. WBA's ambition is to complete
the assessments of the D&E450 on their contributions to a low-carbon

We concluded that our just transitions assessments will be an impactfultransition that leaves no one behind by 2023.

addition to the landscape. Trade unions and civil society organisations
can use the transparency provided by these assessments to hold

WBA wrote this approach report with the support of Porticus.

15Appendix 1: Proposed topics, mapped to existing
WBA core social and ACT indicators
The table below illustrates where the existing WBA core social and/just transition indicators only need to be developed where no existingor ACT methodologies contain an indicator that is relevant or partiallycore social or ACT indicator fully covers the scope of the just transition

relevant to the proposed just transition topic. Each company intopic. ‘Indicative scope of just transition indicators to be developed’

the Climate and Energy Benchmark will be assessed on the ACT

in the table below thus identifies only where new indicator content

methodology and WBA core social indicators. Therefore additional

needs to be developed by WBA.

Proposed just transition topics(revised back on stakeholder feedback)Existing WBA core social indicators/ACT
methodology indicators

Indicative scope of just transition indicators tobe developed

Company respects and promotes workers’
and human rights and plans for a just transition
for workers and communities

Core Social:

The company plans for how to ensure that the
low-carbon/net-zero transition will be just andequitable for workers and their communities(adapted from Climate Action 100+ Net-Zero
Benchmark, LSE, UNFCCC).

CSI 1	Commitment to respect human rights
CSI 2	Commitment to respect the human rights ofworkers
ACT methodologies:
Automotive Manufacturing sector methodology,
indicator 5.3, Electric Utilities sector methodology
indicator 4.3, Oil and Gas sector methodology
indicator 5.3 – Low-carbon transition plan

Social dialogue and stakeholder engagement

Core Social:
CSI 6 	Engagement with affected and potentiallyaffected stakeholders
CSI 12	Collective bargaining fundamentals

Green and decent job creation, including inclusiveand gender balanced workforce

Core Social:
CSI 19 	Health and safety fundamentals
CSI 10 Living wage fundamentals
CSI 11 	Working hours fundamentals
CSI 12	Collective bargaining fundamentals

The company engages in social dialogue withworkers and their trade unions to plan for the justtransition. (ILO, B Team & Just Transition Centre).
Tripartite dialogue between unions, the company
and relevant government bodies is also strongly recommended. (B Team & Just Transition Centre, SEI,UNFCCC, IHRB, OHCHR).
The company engages with other stakeholders
about the just transition. (BSR, LSE).
The company has a commitment to/plans to create
green and decent jobs (B Team & Just Transition
Centre, LSE, UNFCCC). This includes a commitment
to ensuring gender balance and inclusion ofvulnerable groups (BSR, ILO, OHCHR).

16

Appendix 1: Proposed topics, mapped to existing
WBA core social and ACT indicators
Retain and retrain/reskill workers, including
inclusive and gender-balanced workforce

Core Social:Social protection

Core Social:

CSI 13 	Workforce diversity disclosure fundamentals
CSI 14	Gender equality and women’s empowerment
fundamentals

CSI 10 	Living wage fundamentals
CSI 16	Responsible tax fundamentals

Advocacy for policies and regulation supportinga just transition

Core Social:
CSI 18 	Responsible lobbying and politicalengagement fundamentals

The company has a commitment to/plans to reskill
workers displaced by the transition to a low-carbon
economy (LSE, UNFCCC). This includes acommitment to ensuring gender balance andinclusion of vulnerable groups. (B Team, OHCHR).
The company includes its contribution to social
protection (e.g. healthcare benefits and retirement
security) in its just transition plan. (B Team & Just
Transition Centre, LSE, IHRB)The company works with governments to ensure
provision of appropriate income support, pensions
and unemployment benefits. (Adapted from BSR).
The company advocates for policies that enable
the generation of high-quality low-carbon jobs
and for those displaced to shift to new livelihoods(BSR, LSE).

ACT methodologies:
Automotive Manufacturing 9.1; Electric Utilities 5.1;
Oil and Gas 9.1 – Company policy on engagementwith trade associations
Automotive Manufacturing 9.2; Electric Utilities 5.2;
Oil and Gas 9.2 – Trade associations supported do
not have climate-negative activities or position
Automotive Manufacturing 9.3; Electric Utilities 5.3;
Oil and Gas 9.3 – Position on significant climate
policies

17

Appendix 2: Results of preliminary core social
assessments in the Automotive sector
WBA has also undertaken a pilot assessment of the 30 keystone
automotive companies assessed by the CHRB and CEB in November
2020 using the draft core social indicators (as at June 2020). The pilot

FIGURE 5: Comparing rankings based on core social scores (x-axis) andACT low-carbon assessments scores for 30 Automotive sector
companies (y-axis)

assessment aimed to test the indicators to inform their development.
Although based on a draft set of indicators, the pilot results give some25

insights relevant to developing the just transition approach.
Researchers collected publicly available information on the draft core

20

social indicator requirements. The research conducted showed thaton average a company scored 11 out of 30 points on the core social
indicators, with 44% of indicators being not met, 38% of the indicators
being partially met, and 17% of the indicators being fully met. The

15

image to the right compares the rankings based on the core socialscores and the ranking based on the ACT low-carbon assessment
for the same 30 automobile manufacturing companies:
These results do show some correlation between the companies’ CEB
performance and their meeting of the core social expectations. This
may suggest that that companies that are better at managing their
low-carbon transition are also better at putting in place the policies
and practices that are fundamental to underpin the social transformation, or vice versa. Outliers, who are seen to do well on decarbonisation, but poorly on social, would be a concern for a ‘just’transformation.

10

5

0
0

5

10

15

20

25

The contrast between CEB results, CHRB results and draft core social
indicator results point towards the need for more in-depth assessmentof the just transition.

18

References
J. Cartwright, “Toward a Just Transition”, World Resources Institute. Available at:1	https://www.wri.org/climate/expert-perspective/toward-just-transition.
Schröder, P., “Chile’s Social Unrest: Why it’s time to get serious about a ‘Just’ Transition”, Chatham House, 2019. Available at:2	https://www.chathamhouse.org/expert/comment/chile-s-social-unrest-why-it-s-time-get-serious-about-just-transition
McKinsey & Company, “How the European Union could achieve net-zero emissions at net-zero cost”, 2020. Available at:3	https://www.mckinsey.com/business-functions/sustainability/our-insights/how-the-european-union-could-achieve-net-zero-emissions-at-net-zero-cost
Just Transition Centre and The B Team, “Just Transition: A Business Guide”, 2018. Available at:4	

http://bteam.niceandserious.com/assets/reports/Just-Transition-A-Business-Guide.pdf
ILO, “Promoting a just transition to low-carbon and climate-resilient development”, 2017. Available at:5	https://www.ilo.org/global/topics/green-jobs/events-training/WCMS_538798/lang--en/index.htm
Just Transition Centre and The B Team, ibid; and BSR and We Mean Business, “Climate + the Just Transition: The Business Case for Action”, 2018. Available at:6	https://www.bsr.org/en/our-insights/report-view/climate-just-transition-the-business-case-for-action
Industriall, “A trade union guide to a Just Transition for workers”, 2019. Available at:7	

http://www.industriall-union.org/a-just-transition-for-workers
CDP Carbon Majors Report, 2017. Available at:8	https://www.cdp.net/en/articles/media/new-report-shows-just-100-companies-are-source-of-over-70-of-emissions
UNFCCC, “Just transition of the workforce, and the creation of decent work and quality jobs (technical paper)”, United Nations Framework Convention on Climate Change (UNFCC), 2016.

9	

Available at: https://unfccc.int/sites/default/files/resource/docs/2016/tp/07.pdf.
See Just Transition Centre and The B Team, “Just Transition: A Business Guide”, 2018. Available at:10	

http://bteam.niceandserious.com/assets/reports/Just-Transition-A-Business-Guide.pdf;
GRI Sector Standard for oil and gas, Exposure draft, 2019. Previously available at:https://www.globalreporting.org/standards/standards-development/sector-standards-project-for-oil-gas-and-coal/https://www.climateaction100.org/wp-content/uploads/2020/12/Net-Zero-Benchmark-Indicators-12.15.20.pdf

11	

https://www.business-humanrights.org/en/from-us/briefings/renewable-energy-human-rights-benchmark/

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