Document Type

Article

Publication Date

11-2026

Abstract

A just transition is about more than reaching net-zero emissions. Originally rooted in US trade union efforts to protect workers, the concept now includes broader human rights impacts, such as ensuring that workers, communities, and lower-income countries are not left behind as economies move towards environmental sustainability.1 A transition to a green economy should be one that respects human rights and addresses negative impacts arising from shifts in business activity. Put simply a just transition is one that is rights-respecting.

The United Nations Guiding Principles on Business and Human Rights (UNGPs) urge companies to take a proactive approach to prevent and mitigate these negative impacts across all business operations, including during the shift to a green economy. Regulations like the EU’s Corporate Sustainability Reporting Directive (CSRD) require companies to report on these efforts. Companies that fail to do so face consequences. Along with investor pressure, these regulations reinforce a single expectation: companies must reduce emissions while accounting for human rights risks, not merely meeting technical compliance. This paper examines the role of corporate boards in advancing a just transition. It includes what good practices look like, where progress has been made, and where governance gaps remain. It emphasises that a just transition is not only about climate but also carries strong business and human rights implications where boards can play a primary role. Corporate governance determines whether a company will make its just transition a rights-respecting one

This paper examines the role of corporate boards in advancing a just transition. It includes what good practices look like, where progress has been made, and where governance gaps remain. It emphasises that a just transition is not only about climate but also carries strong business and human rights implications where boards can play a primary role. Corporate governance determines whether a company will make its just transition a rights-respecting one.

Download

Share

COinS