COP29 and the just transition: Facts every business should know
Dubbed ‘the first finance COP’, this month’s summit in Azerbaijan will examine how we are to fund global decarbonisation.
On the face of it, this might sound as if there is a commercial agenda at play. In fact, it is a clear and necessary acknowledgement that if we are to decarbonise effectively, we cannot afford to overlook any country, community, industry - or indeed, any individual.
What is the just transition?
According to the International Labour Organization (ILO), a just transition involves ‘greening the economy in a way that is as fair and inclusive as possible to everyone concerned, creating decent work opportunities and leaving no one behind’.
This means enabling everyone, from energy consumers and individuals working in the fossil fuel industry to lower-income countries suffering the worst effects of climate change, to adapt and respond as the energy transition takes place. It’s the only way to build a future that is both green and fair.
It is not going to be easy, but the discussions over the next few weeks will reinforce the necessity - and hopefully find the means - of making the just transition possible.
Why is it important?
I’d like to think that in 2024, we are all aware of the inherent need to be inclusive in order to succeed. Our climate goals are shared goals, so it is only right that we reach them in a fair and equitable manner - and it makes great business sense too.
The growing adoption of social value by the corporate world is a sign that the benefits of building a fairer, greener society are more widely understood than they used to be. While social value helps to build stronger, more sustainable communities, it also helps to grow the bottom line; mainly by helping businesses to win new contracts, attract and retain the best talent and build a positive brand reputation.
In 2015, the UN recognised the all-encompassing nature of climate action when it developed the 17 Sustainable Development Goals (SDG’s). The SDGs make it clear that ending poverty and inequality must go hand in hand with strategies that encourage economic growth and tackle climate change. The SDGs cover affordable and clean energy, decent work and economic growth, reduced inequalities, and responsible production and consumption. All are particularly relevant when it comes to delivering a just transition.
Intended as an urgent call to action for all countries, the SDGs are increasingly being referenced when discussing what it means to be a socially and environmentally responsible organisation.
The bottom line is that a just transition will promote economic and social stability, create new opportunities and help to combat resistance to change.
3 things the business community can do now
We’ve established that we need to pull together to achieve our collective climate related goals, but right now there are three things every business decision maker can do:
Educate: Read up on the subject. If you don’t already, following the news coming out of COP29 and thinking about how it applies to your own organisation is a great start. Seek out climate reports such as the Climate Change Committee’s annual progress report and take a deeper dive into your own industry specific and community impacts. By sharing your findings and encouraging discussions with your key stakeholders, there’s every chance you could help your organisation become a true change maker.
Invest: Of course there is no bottomless pot, but consider apportioning budget to sustainability and community related initiatives. This could involve reskilling and upskilling the workforce, investing in green technology, committing to community projects, or ensuring your suppliers have a low carbon footprint, even if they’re not the lowest cost option. (We love our bathroom supplies from WGAC - it looks pretty and 50% of the profit goes to helping make a positive difference worldwide.)
Embed: Hard wiring sustainability and equality into your business strategy if you haven’t already is fundamental for any responsible business looking to affect change. There is no ‘one size fits all’ approach but setting your own net zero and ED&I targets will build a solid foundation. You could also consider starting a B Corp journey, to make sure people and the planet remain your organisation’s long term priorities.
Using marketing as a responsible business tool
As we have seen with the backlash against greenwashing, no marketer will advise a strategy based on the just transition without having the evidence to back up the story.
Assuming the evidence is in place, marketing has a substantial role to play. It is the tool that will share your achievements, innovations and impacts with your target audience, building trust and credibility for your brand.
As with most human interactions, good, quality communication is everything. This doesn’t mean being overly self-promotional or sensational; it means identifying the parts of your story that hold the most interest and sharing them with your stakeholders, whether through a piece of content, new website, social media or PR campaign.
The trick is to be bold, but balanced.
As for COP29, it will be interesting to see how the discussions around climate finance unfold.
If you want to find out more about how marketing can help shape your brand identity and enhance your reputation, please get in touch, we’d love to hear from you.
