Don’t Leave Your Workers in the Cold: Climate Risks & Planning for Equitable Adaptation
Companies are conducting risk assessments on extreme weather and ways that climate change will affect their operations and supply chain. Your customers are doing the same - and they are planning to act. They are starting to work on their Net Zero strategies and evaluating which decarbonization actions to prioritize.
But, as the UN reminds us, companies may be forgetting “the who” in climate action planning. And in this case, they need to analyze how their climate transition actions will impact their stakeholders.
Throughout history, technological advancements and societal disruptions have set back the financial stability of a particular group for decades. Automation was linked to wage gaps - hurting low-skilled workers. More recently, COVID-19 resulted in the closing of 100,000 restaurants and a move to remote work that saw office buildings in major cities begin to close down. Over time, individuals develop new skills and begin to adapt.
Major impacts of business on the long-term health of the environment have also started to cause disruptions across the globe. And as companies are increasingly being held accountable for the negative effects of their actions, like their impacts on the environment, it is imperative they do the work to forecast the effects of their actions and identify mitigation measures for their workforce, supply chain partners, and local communities.
In November, the UN Global Compact published a brief guide to support businesses in this work.
The report states, “In a global and interconnected world, adapting to climate risks and impacts in a way that is just will require collaborative approaches that cross borders, where actors engage with one another to identify shared risks and potential opportunities.”
7 Ways to Make a Just Transition for Climate Adaptation
Here are 7 recommendations from the UN Global Compact on how your business can make a just transition for climate adaptation:
Integrate social and environmental objectives into the business strategy through a social dialogue
Build coalitions, including with competitors
Improve data collection and sharing
Strengthen supply-chain resilience
Finance a just transition for climate adaptation
Partner with local and regional governments to devise adaptation strategies that advance a just transition
Advocate for clear division of responsibilities for a just transition, also to support climate adaptation
Sanda Ojiambo, UN Assistant Secretary-General and CEO of the UN Global Compact, said:
“Businesses around the world are already experiencing the impacts of climate change from disrupted production, broken supply chains to increased costs. Implementing climate adaptation strategies can create new jobs, new innovations and new opportunities for business but only if it is done in a way that is inclusive and enables everyone to thrive.”
Incorporating strategies to mitigate climate risks and creating resilient supply chains should be brought to the core of business strategy. By shifting focus to a just transition around climate adaptation and aligning with the UN Global Compact’s recommendations, companies will play a leading role in working towards a more sustainable business environment.
The Uplift Agency
Uplift builds strategies, programs, and communication campaigns that advance ESG in workplaces, supply chains and communities.
We know how to navigate the road ahead because we’ve already been down it – 90 percent of our team has led environmental or social programs in corporations or nonprofits. Because ESG is all we do, our services are more comprehensive and integrated than most firms.
