How Stronger Just Transition Policies Can Enable Business Action

The just transition means moving toward a clean and sustainable economy in a way that’s fair to workers and communities. It ensures that people have access to new jobs, skills, and affordable products and services as society shifts from high-emitting fossil fuel use and production. 

For businesses, advancing the just transition is not only a social and environmental imperative. It is also essential to maintain a skilled workforce, sustain productivity, secure access to clean energy, and support community well-being. It means maximizing the economic and social benefits of climate action and minimizing its risks, while managing change through effective stakeholder engagement, social dialogue, and respect for human rights. 

To deliver the just transition, businesses need clear policy signals from government. When governments design policies that balance climate ambition with social protection, companies can access clearer regulatory pathways and more predictable investment environments. This can reduce the uncertainty of abrupt policy shifts or risk of stranded assets.  

Policies can also promote innovation in green business activities or industries and enable companies to benefit from incentives and access new markets. Government support is also essential to help fund reskilling and upskilling initiatives for the future workforce. Together with business, government can provide bigger safety nets for people affected by the transition.  

Several companies are already advocating for stronger just transition policies. For instance, energy company Iberdrola participated in over 200 consultations and direct dialogues with policymakers to advance regulatory reform and climate-aligned policies. Standard Chartered, a multinational bank, engages governments on climate change and seeks stronger public-private collaboration to mobilize capital for the ASEAN region’s just energy transition. 

The just transition is a business imperative. Advocating for stronger policy, alongside engaging with affected stakeholders and implementing plans across operations and supply chains, can help enable this transition and foster greater inclusive economic growth.

Policy Asks to Advance the Just Transition 

Soon, government leaders will gather in Brazil for COP30 to address and strengthen their national climate goals. To ensure those plans are ambitious, actionable, and supported, businesses working to advance the just transition can call for policymakers to agree to a clear vision and commitment.  

Developed with input from leading multinational companies and partners across sectors, BSR and We Mean Business are sharing 12 asks that businesses can consider in their policy engagement on the just transition. These cover five key areas that support conditions—through policies, incentives, and regulatory frameworks—which would enable business investment in equitable and sustainable transformation.  

• Governance and Frameworks: Clear national commitments and roadmaps to align climate, social, and economic goals. 
• Skills and Workforce Transition: Partnerships and investments to prepare and protect workers through reskilling and upskilling. 
• Stakeholder Engagement and Protection: Mechanisms for stakeholder engagement and social dialogue, worker participation, and respect for human rights. 
• Financing the Just Transition: Mechanisms and incentives that mobilize capital toward clean energy and equitable, inclusive climate solutions. 
• Monitoring and Metrics: Harmonized standards to measure progress and strengthen accountability for just transition outcomes.

If implemented, the policies can provide the signals businesses need to implement just transition plans, make investments, and prepare for a clean energy future.  

A Call to Increase Ambition 

Building a stronger foundation for an equitable, resilient, and net-zero global economy requires both government leadership and corporate commitment. To help shape the environment needed for long-term success and shared prosperity, companies can consider aligning their advocacy with the five pillars above, in line with their broader just transition strategies. 

Interested in advancing the just transition within your company? Reach out to BSR. 

This article was originally published at the BSR website "Sustainability Insights" and is written by Eileen Gallagher (Director, Climate and Nature) at BSR.