The London School of Economics and Political Science has published the report „Making transition plans just: How to embed the just transition into financial sector net zero plans“.
This report is designed to provide guidance to financial institutions on how they can incorporate consideration of the social dimension of climate action – in other words a just transition – within their net zero transition plans. It was written in consultation with more than 50 financial institutions and other stakeholders to ensure that it is both ambitious and achievable.
The report first outlines the compelling rationale for financial institutions to deliver their net zero commitments through a just transition for workers, communities and consumers. It highlights the need for financial institutions to anchor their net zero plans in well-established human rights, labour standards and sustainable development goals. It then identifies three key just transition factors that financial institutions should incorporate in the design and delivery of their plans. To ease the process, we have aligned our recommendations with the emerging net zero transition planning framework of the Glasgow Financial Alliance for Net Zero (GFANZ), showing how the just transition can be included in each of its five core themes: foundations, implementation strategy, engagement strategy, metrics and targets, and governance. Consistent approaches are vital to achieving broad-based, efficient and accountable adoption.
