Why corporate responsibility and a human rights approach are essential for a just energy transition

Yuri Ramkissoon

The climate emergency poses a huge threat to human rights. In order to address this emergency, a transition to an economy in harmony with the planet is an urgent necessity. As part of this transition, and for the energy transition to contribute to the realisation of the Sustainable Development Goals and human rights, the renewable energy sector must also be sustainable in itself.

Recognising climate change as a human rights issue means that integrating human rights-based principles into climate change policies and projects may lead to more holistic, sustainable outcomes. The UN Human Rights Council stated in a resolution on climate change that “human rights obligations, standards and principles have the potential to inform and strengthen international, regional and national policymaking in the area of climate change, promoting policy coherence, legitimacy and sustainable outcomes.

Therefore, addressing the climate crisis by employing a rights-based approach in this transition to renewable energy is crucial.

The energy transition and human right imperative

With growing political support for clean energy and the increasing volume of investment into renewable energy projects on a global scale, the intersection between human rights and the renewable sector is becoming increasingly critical.

Having worked in the human rights sector for over 15 years, I am constantly surprised by the lack of integration of human rights-based principles in environmental policies, projects and processes – an area that is quite advanced in the socioeconomic domain.

While there is clear cognisance of the link between the right to a healthy environment and human rights, and that climate change is intrinsically a human rights issue, there is very little awareness of what this means at a practical level – save for public engagement in Environmental Impact Assessments.

In implementing climate change and just transition policies, projects, and indicators for monitoring and evaluation, there has been much discussion on how to embed justice elements, as articulated in the Presidential Climate Commission’s Just Transition Framework (JTF). The JTF is not prescriptive on this as it is a blueprint that will serve various constituencies, stakeholders and different projects.

The common principles include early participation – which allows access for everyone to active participation in decision-making processes; accountability – recourse for the failure of duty-bearers to fulfil their obligations, with access effective remedies; non-discrimination and equality –; access to information – which allows equal access to all stakeholders to relevant documents and other information, allowing them to make informed decisions; transparency – ensuring all processes, including decision-making are clear and justifiable.

Corporate Climate Action and the case for Human Rights Based Approach

The just transition is a new way for businesses to operate as opposed to adding on to current business as usual procedures. In this way, businesses can create a stable operating environment within countries – that ultimately benefit the companies greatly.

The private sector is not exempt from applying such diligence and due process to their own projects and actions. On the just transition path, businesses have a responsibility comply with domestic laws and adhere to internationally recognised human rights principles, wherever they operate – even if the country or area is lacking strong legislative and enforcement procedures.

Certain renewable energy projects have lower environmental and human rights impacts, but some large-scale project can pose great threats with companies that work in the renewable energy sector usually having a mission to combat climate change.

First-mover investors have a central role to play for example by divesting energy sources from fossil fuel reliance, and a pristine opportunity to define the path forward and use their investments as a leverage for companies and project owners in the renewable energy sector, transport and built environment to consider these issues.

There have been a number of recent legal initiatives in the EU and certain countries towards mandatory human rights due diligence, which will require companies to put in place procedures and address risks and thereby avoid harm to affected communities. Mapping mineral supply chains and supply chain transparency, for example such as cobalt and lithium – is crucial.

As with the state, principles of engagement, accountability, access to information, transparency and non-discrimination also apply to the internal policies and procedures and external actions of the private sector. Importantly, businesses must go beyond philanthropic adherence to internal Corporate Social Responsibility and Environmental, Social and Governance  frameworks to more effective and meaningful mainstreamed just transition outcomes.

While it is clear that there are existing frameworks that can be used by the corporations to ensure that the transition to a low-carbon, green economy is just, these frameworks may not be perfect, but don’t require reinvention to be used. We need to work with what we have, because these principles have been developed over lengthy periods with extensive consultation across the globe. And that is a very solid starting point.

Yuri Ramkissoon is a senior manager: Monitoring and Evaluation, Presidential Climate Commission.

*** The views expressed here do not necessarily represent those of Independent Media or IOL.

BUSINESS REPORT