Just Transition

A just transition ensures that environmentally sustainable economies are promoted in a way that is as fair and inclusive as possible to everyone concerned, creating decent work opportunities and leaving no one behind. It aims to ensure that the transition to net-zero emissions and climate resilience is orderly, inclusive and just. 

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Businesses have a crucial role to achieve a just transition: Private sector support for a just transition contributes to environmental goals, as well as economic growth and social development, through robust company practices, social dialogue, advocacy and partnerships. As key players in shaping the transition to a lower-emission and climate-friendly economy, companies can make an important contribution to ensuring that the social and human rights implications of this transition are also taken into account: For example, the International Labour Organization (ILO) expects 78 million new jobs to be created by 2030 as a result of investment in the circular economy, but also 71 million jobs to be lost.

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The commitment to a just transition therefore makes it possible to tackle key issues of human rights and environmental due diligence in parallel. In addition, measures to ensure a just transition also contribute to better management of the impact of emissions reductions, increased social support for climate action and sustainability and good stakeholder relations.

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Advancing a just transition is a priority area for the UN Global Compact. Business action on just transition begins from a foundation of responsible business conduct and respect for human and labour rights, supported by the Ten Principles of the UN Global Compact. Building on the guiding principles of just transition established in the International Labour Organization’s Just Transition Guidelines, the UN Global Compact helps businesses to get started in planning for a just transition.