Just Transition
Definition
A just transition is the principle that the shift to a sustainable, low-carbon economy must be fair and inclusive, leaving no workers or communities behind. It involves planning for the social and economic impacts of decarbonisation, including retraining workers, supporting affected communities, and ensuring equitable access to new green economy opportunities. The concept originates from the labour movement.
Why It Matters
Just transition is increasingly embedded in climate policy and corporate ESG strategies, particularly in sectors facing structural change. Investors are beginning to assess companies on their just transition plans as part of social performance evaluation.
Related Terms
Social Impact
Social impact refers to the significant positive or negative effects that an organisation's activities have on the well-being of communities and society at large. It encompasses outcomes related to health, education, employment, equity, and quality of life. Measuring social impact helps organisations understand and communicate their contribution to societal progress.
Stakeholder Engagement
Stakeholder engagement is the systematic process of identifying, consulting, and involving individuals or groups that affect or are affected by an organisation's decisions and activities. It includes employees, customers, investors, communities, regulators, and civil society. Effective engagement is two-way, transparent, and ongoing rather than a one-off consultation.
Living Wage
A living wage is the minimum income necessary for a worker to meet their basic needs, including food, housing, healthcare, and education, in the location where they live. It typically exceeds statutory minimum wages and is calculated based on local cost-of-living data. Paying a living wage is increasingly seen as a marker of responsible business practice.
SDGs (Sustainable Development Goals)
The Sustainable Development Goals are 17 interconnected global goals adopted by all UN Member States in 2015 as a shared blueprint for peace and prosperity for people and the planet by 2030. They address challenges including poverty, inequality, climate change, environmental degradation, and injustice. Organisations increasingly map their ESG strategies and impacts to specific SDGs.