Investing in a Just Transition Why and how investors can integrate the social dimension into climate action Nick Robins, Professor in Practice – Sustainable Finance London School of Economics and Political Science

Ending the siloes: investors need to integrate environmental, social and governance (ESG) factors to contribute to a just transition

The Investing in a Just Transition initiative Co-designed by the Grantham Research Institute at LSE and the Initiative for Responsible Investment at Harvard In partnership with the Principles for Responsible Investment and the International Trade Union Confederation Supported by an international advisory committee Key goals: develop a case for action and produce guidance for action Draft Guide launched in San Francisco; final version at COP24

What is the just transition? Part of the Paris Agreement: ‘The imperatives of a just transition of the workforce and the creation of decent work and quality jobs in accordance with nationally defined development priorities’ A strategic vision: ‘A just transition is an economy-wide process that produces the plans, policies and investments that lead to a future where all jobs are green and decent, emissions are at net zero, poverty is eradicated, and communities are thriving and resilient.’ (ITUC) Definitions – term emerged from Labor movement and entered into Paris Accords Has also been taken up by community activists – social justice and environmental justice Entering into policy discussion –regional Australia, Quebec; national South Africa and Canada; international G20/7/COP Key point: this is a major topic that’s emerging, something to get in front of. But! Investors haven’t really been part of the discussions to the extent they likely will be. Beneficiaries at risk

Why should investors support the just transition?

What actions can investors take?

From guidance to action The PRI is calling on investors to sign a statement of commitment on the just transition; the signatories will be released at COP Developing a community of investors committed to piloting the guidance in 2019 (including engagement & shareholder resolutions) Working with key partners on place-based and national projects (e.g. with the TUC in the UK) Key role for trade unions to guide investor practice in terms of real world experience of the just transition and as trustees on pension funds

Find out more The Team N.V.Robins@lse.ac.uk Vonda_Brunsting@hks.harvard.edu David_Wood@hks.harvard.edu