In its recent summary for policy-makers of Working Group II (adaptation), the Intergovernmental Panel on Climate Change (IPCC) notes that rights-based approaches, participation and inclusion can reduce structural vulnerabilities to climate change and advance climate resilient development. In the summary for policy-makers of Working Group III (mitigation), the IPCC addresses climate justice, gender equality and meaningful participation in climate action. Both reports also address cooperation with and actions by businesses.
The [Secretary-Generalâs Call to Action for Human Rights] outlines the importance to âstrengthen the UNâs partnership with the business sector to ensure that self-regulatory practices related to the protection of the environment and measures to address climate change are adopted and applied, in the context of wider regulatory frameworksâ. In a [dedicated statement for UNFCCC COP26], the UN High Commissioner for Human Rights called for âbusiness models that are respectful of the environment and protect human rightsâ and noted that âGovernments and other authorities, businesses and individuals have a shared responsibility to prevent, mitigate and remedy the negative human rights impacts of climate change.â The COP26 [Just Transition Declaration] emphasized the need to ensure that no one is left behind in the transition to net zero and reaffirmed the commitment to gender equality and protection of the rights of Indigenous Peoples, among other issues, referencing also the ILO 2015 Guidelines for a Just Transition.
Thanks, Alice. I agree that the âSâ of ESG is currently narrowly focused on oewn employers rather than the supply chains as international standards like the UNGPs mandate. This has major effects in transition minerals and in renewable energy installations where commmunity consent and workers ability to negotiate for a living wage and decent work are essential to a just transition
A1. Commercial partners that Fairtrade works with are taking a number of positive steps to tackle climate change.
Last year, 27 businesses signed the Fairtrade Business Pledge, committing to pay fair prices, partner long-term with farmers, and know and show their climate impact. This year weâre re-opening the Pledge for signatures and inviting businesses who sign it to join our new Fairtrade Climate Network: a forum to help our commercial partners build sustainable supply chains in which farmers can adapt to and mitigate climate change. Through this Network, we will facilitate learning between farmers, sustainability experts and industry peers, and enable collaboration between businesses facing similar challenges to increase our collective impact.
One example of best practice is the work Ben & Jerryâs are doing with us on cocoa. This is because a key issue in many of the supply chains that we engage with are characterized by high levels of poverty. Too often, farmers and workers are simply not being paid enough to pay for their daily needs. So in many cases they simply are not able to afford to invest in new equipment or methods that might be better able to respond to the effects of the climate crisis.
Weâre really pleased, therefore, that Ben & Jerryâs who have committed to paying a higher price, an additional $600,000 over the next year to their 5,000 cocoa farmers. This amount is on top of both the annual Fairtrade Premium of around $970,000 (paid on their chocolate ice cream mix) and the Ivorian governmentâs minimum price for cocoa that all companies are required to pay. The extra money that farmers will now receive is an important part of Ben & Jerryâs wider efforts to support farmers towards closing the living income gap. Ben & Jerryâs Fairtrade Premiums make up between 1% â 2% of the total Fairtrade Premiums in the world. That Premium can make a huge difference. One cocoa co-op that they work with in CĂ´te dâIvoire was able to use their Fairtrade Premium to build a new medical clinic, hire a nurse, install solar panels, and purchase a water pump.
I thought this statement from co-author and scientist Celine Guivarch regarding the results of the latest IPPC Report was particularly relevant. She reminds that the steps we take to develop more planet-friendly policies have the potential to improve livelihoods across the board. She notes that the experiences and knowledge of Indigenous and other local communities should be seen as mainstream strategies when it comes to rethinking how weâre using and managing land in sustainable ways. This just reinforces â we must all work together to preserve the health of the planet and itâs people.
in response to Daniella and Phil on the topic of lack of investor interest, this is something that we do hear a lot in interaction with the companies in our benchmark.
That being said, we are at the same time getting a lot of interest from investors who are complaining that there is a lack of data on the S overall so they also seem to be struggling to make the connection between the S and the E?
Thanks, Amanda. This is a very useful insight. Self-regulatory practicies can be very useful in creating a cluster of leaders in any key sectors. Neverthelless our expereince is that we need the regulatory initiative to insist on a level playing field., legal certainty, and liability for laggard companies that neglect their human rights due dilligence and remedy.
Yes - I was interested to see the WG2 mention of climate justice. It does feel like the more recent reports have started to embrace rights-based language and thinking more explicitly.
The Green Economy Coalition, one of your initiatives at IIED is tracking how countries are promoting just transition, including social as well as environment. and of course government set the policy environment that companies operate in
At BFP we produced a toolkit for business on women and the net zero economy which includes some interesting case studies from LâOreal and Primark and where they are able to develop âwin winâ outcomes for climate and womenâs economic empowerment. I think the qu is how we turn these small pilots into the normal way of working. Women and the Net Zero Economy
Thanks, David. This examples demonstrates the need for companies to integrate human rights and climate action to deliver a âfast and fair transitionâ. These examples of leadership demonstrate what is commercially viable in any sector - including confectionary and ice cream. It helps others learn how to achieve this across the same sector. It also gives governments lessons about the forms of regulation should be part fot he âsmart mixâ of voluntary and regulatory practice.
Amanda - thatâs a great list, and reasserts the UNâs international standards for business and human rights. Your point on human rights defenders is critical.
I think there is a lot of data gathering going on by different benchmarks focused on human rights etc, see for example the KnowTheChain and World Benchmarking Alliance. In an ideal world - it would be data that connects environmental impacts with corresponding social ones: like air pollution and health markers in the population, to give a specific example⌠The problem with this in relation to investors though, seems to be that because of unclear reporting frameworks for social impact (compared to environment, where there is a much greater standardization - although much can still be done of course) it is difficult to analyze on a quantitative scale.
This is where benchmarking initiatives can be helpful. I was part of the World Benchmarking Allianceâs (WBA) Advisory Group that developed their Just Transition Benchmark launched at CoP26 2021 Just Transition Assessment | World Benchmarking Alliance
