A Just Energy Transformation - Beneficial for All?

As the need to commit to the clean energy transition intensifies for energy providers, policymakers, regulators, and financial institutions, social equity is yet to be incorporated significantly into investment strategies.

While many organizations are making a broad range of ESG commitments, it is becoming increasingly apparent that organizations will be unable to deliver on the net zero transition globally without a fundamental social shift which takes into account considerations such as the impact on employees and local communities of moving away from fossil fuels.

Stakeholders need to consider environmental and social outcomes equally. Investments must be geared towards promoting a low-carbon transition that is fair and inclusive, creates decent work opportunities for all and raises the economic circumstances of the least advantaged. This needs to be built into operational frameworks and a wider set of financial and non-financial risks based on some key principles which will form the basis for a global just energy transformation.

This session was live streamed from the WEF annual general meeting and discussed critical considerations for energy companies and investors as they develop strategies for the Just Energy Transformation with a group of expert panelists — highlighting UNDP's and WWF's Alliance for a Just Energy Transformation, which KPMG joined as a founding member at COP27.