The Chairperson’s Guide to a Just Transition

The document argues that a just transition—defined as a fair and inclusive shift toward a climate-neutral economy—is a critical business risk management approach and a source of competitive advantage. It outlines the unique role of board members in overseeing this transition, emphasizing the need to move from an inward-looking focus to an outward perspective that considers the impact on employees, communities, and value chains. The guide introduces the Five Capitals Model to help boards value social and human capital alongside financial and natural capital. It provides a four-step framework (Understanding the issues, Strategic alignment, Prioritization, and Monitoring) and specific questions for engaging key stakeholders, including governments and investors, to ensure the transition does not exacerbate existing social inequalities or trigger public backlash.

• A just transition is both a principle of fairness and inclusivity and a process of negotiation through social dialogue. It is based on the premise that while the climate transition may create jobs globally, it will disrupt entire industries and disproportionately impact specific workers and communities, particularly in regional areas with specialized workforces.
• Ignoring the social dimensions of the climate transition creates material business risks, including political instability, reputational damage, and public resistance that could undermine the achievement of decarbonization targets.
• Corporate boards have a fiduciary duty to oversee the transition and should use the Five Capitals Model to recognize that social and human capital are core to long-term value creation, moving beyond traditional financial measures.
• The transition will necessitate significant workforce transformation across all industries, not just heavy emitters. This includes jobs in decline, new low-emissions sectors, and roles where capabilities must change, requiring boards to oversee re-skilling and diversity initiatives.
• Value chain volatility is expected to increase due to climate change, and the transition may negatively impact small and medium-sized enterprises (SMEs) that lack the resources to meet net-zero demands. Additionally, 'near-shoring' to reduce transport emissions may harm communities in developing nations.
• Effective climate governance for a just transition requires boards to align executive incentives with long-term targets, maintain regular dialogue with stakeholders, and ensure that just transition frameworks systemically inform investment planning.

APA

World Economic Forum (2022). The Chairperson’s Guide to a Just Transition. https://www3.weforum.org/docs/WEF_The_Chairpersons_Guide_to_a_Just_Transition_2022.pdf

Chicago

World Economic Forum. The Chairperson’s Guide to a Just Transition. 2022. https://www3.weforum.org/docs/WEF_The_Chairpersons_Guide_to_a_Just_Transition_2022.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=The Chairperson’s Guide to a Just Transition |date=September 2022 |url=https://www3.weforum.org/docs/WEF_The_Chairpersons_Guide_to_a_Just_Transition_2022.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2022chairpersons, author = {{World Economic Forum}}, title = {{The Chairperson’s Guide to a Just Transition}}, institution = {World Economic Forum}, year = {2022}, month = sep, url = {https://www3.weforum.org/docs/WEF_The_Chairpersons_Guide_to_a_Just_Transition_2022.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }