New York, U.S.A., Dec. 15, 2022 (GLOBE NEWSWIRE) -- The UN Global Compact today released new guidance for business, Financing a Just Transition, calling on key financial actors, including financial institutions, Chief Financial Officers and finance functions of corporations, investors, Chief Investment Officers, Chief Risk Officers and policymakers, to realize a just transition.
A just transition means greening the economy by simultaneously addressing the environmental, social and economic dimensions of sustainable development in a way that is as fair and inclusive as possible to everyone concerned, creating decent work opportunities and leaving no one behind. For financial decision-makers, the just transition provides the framework for connecting climate action with the need for an inclusive economy and sustainable development, through a collaborative process involving social dialogue.
Financing a Just Transition explores how financial functions and institutions can advance a just transition by addressing four core elements of operations — strategy, governance, risk management, and metrics and targets — and by engaging policymakers to support an enabling environment, particularly on fiscal policies, financial regulations and transition plans.
The brief examines how finance can leverage its cross-cutting position in the real economy to advance a just transition by partnering with governments, labour, business and civil society; allocating capital; managing related risks and harnessing opportunities; and contributing to a robust informational infrastructure.
Sanda Ojiambo, Assistant Secretary-General and CEO of the UN Global Compact commenting on the release of the guidance said:
“It is vital that the financial practices of a firm advance a just transition. While board members have a duty to their shareholders to oversee the responsible management of the transition, leadership in corporate finance functions and financial institutions should already integrate just transition across their business strategy.”
To learn more, please read the Brief.
Notes to Editors
About the Think Lab on Just Transition
The Think Lab on Just Transition aims to shape and define business and thought leadership on critical areas linked to just transition; address key business challenges; identify policy advocacy opportunities and good business practices; and scale-up learnings through the UN Global Compact’s network. 27 company participants from across the globe include A.P. Møller – Mærsk, Accenture, AIA Group, CEMEX, DP World, Enara Capital, Enel SpA, Garanti BBVA, Iberdrola, Johnson Controls, Lenovo Group, LONGi, Mahindra Group, Majid Al Futtaim, Meta, Microsoft, Moody’s Corporation, National Australia Bank, Nestlé, Novozymes A/S, Ørsted, ReNew Power Pvt. Ltd., Sappi Southern Africa Ltd., TriCiclos, Unilever, Wipro Ltd. and Woolworths Holdings Limited. The partners of the Think Lab include UN Climate Change (UNFCCC), UN Environment Programme (UNEP), International Labour Organization, International Trade Union Confederation (ITUC) and its Just Transition Center, CDP, Duke University, Institute for Human Rights & Business (IHRB), International Organization of Employers (IOE), International Renewable Energy Agency (IRENA), Principles for Responsible Investment (PRI), Stockholm Environment Institute (SEI), Sustainable Energy for All (SEforALL), The B Team, UNICEF and World Resources Institute (WRI). Think Lab activities leverage synergies with the UN Global Compact’s “CFO Coalition for the SDGs'' and the “Just Transition Maritime Task Force”.
If you’ve missed the previous publications in this series on just transition, we invite you to download the Introduction to Just Transition and Just Transition for Climate Adaptation business briefs today.
About the United Nations Global Compact
As a special initiative of the UN Secretary-General, the United Nations Global Compact is a call to companies everywhere to align their operations and strategies with Ten Principles in the areas of human rights, labour, environment and anti-corruption. Our ambition is to accelerate and scale the global collective impact of business by upholding the Ten Principles and delivering the Sustainable Development Goals through accountable companies and ecosystems that enable change. With more than 17,000 companies and 3,000 non-business signatories based in over 160 countries, and 69 Local Networks, the UN Global Compact is the world’s largest corporate sustainability initiative — one Global Compact uniting business for a better world.
For more information, follow @globalcompact on social media and visit our website at unglobalcompact.org
Contact
Alex Gee
UN Global Compact
gee@unglobalcompact.org
media@unglobalcompact.org
