Company disclosures and metrics as tools for just transition monitoring: investor, rightsholder and policy perspectives

This report seeks to identify how monitoring and scrutiny can be an effective tool for enhancing just transition finance. Its aim is to identify gaps and use cases for the metrics and monitoring space. The report presents the different needs for just transition metrics of investors and rightsholders – i.e. stakeholder groups impacted by company activities under transition plans in ways that affect their human rights. It explores policy options that can meet both groups’ needs while also remaining feasible and viable – including for companies, which will need to provide much of this information. The research focuses on large, listed companies and their assets while acknowledging that there are different considerations for small and medium-sized enterprises (SMEs) and privately-owned entities. The report draws on engagement-led research focused on the users of company plans and data. The report concludes that while substantial progress has been made, current frameworks have not been clear enough about the form best practice should take for information to promote a just transition. Furthermore, some initiatives have been led by company and investor needs with insufficient incorporation of systemic risks and of the needs of rightsholders.