Achieving society’s climate and sustainable development objectives will require a profound shift across the global economy. A just transition to sustainable and resilient economies will be critical to protect vulnerable populations and maximise the social and economic opportunities of climate and environmental action.
Through the redirection of financial flows to green technologies, adaptation solutions and innovative businesses, the financial sector has a key role to play to ensure that the transition to low-carbon economies is one that is equitable and leaves no one behind. Insurers in particular are critical actors in building resilient societies by adopting risk-management strategies that address social and environmental challenges and ensuring adequate coverage for all communities.
This report outlines the social and economic impacts of the low-carbon transition and supports banks and insurance companies in taking part in the achievement of a just transition. It provides financial institutions with practical recommendations and examples of emerging practices on how to embed just transition considerations in financial products and business operations in alignment with the Paris Agreement’s objectives and Human Rights frameworks.
Developed by UNEP FI and the International Labor Organisation (ILO) with support from more than 40 banks and insurance companies, international financial institutions, academic and civil society organisations.
For any feedback on this report, please contact our team.