The energy transition will create millions of new jobs in renewable energy, green hydrogen, and sustainable infrastructure. But it will also displace workers in fossil fuel-dependent sectors and communities. Managing this transition fairly — the “just transition” — is increasingly a corporate responsibility, not just a government challenge.
ILO guidelines on just transition, the EU’s Just Transition Fund, and India’s own recognition of the social dimensions of coal mine closure all point in the same direction: companies must plan for the human impact of decarbonisation.
For Indian companies, this is particularly relevant. Coal-dependent states like Jharkhand, Chhattisgarh, and Odisha face significant employment disruption as thermal power capacity is retired. Companies operating in these regions need worker reskilling programmes, community transition plans, and transparent stakeholder engagement.
RSustain’s CSR and social impact practice helps clients integrate just transition principles into their climate strategies. This means moving beyond emissions reduction targets to include social impact assessments, workforce transition plans, and community investment programmes in affected areas.
Investors are watching. The concept of a “just transition” is now embedded in the ISSB standards, CSRD requirements, and several ESG rating methodologies. Companies that ignore the social dimension of climate action will face both reputational and regulatory risk.