Making the Green Transition Work for People and the Economy 2025

3.2 Building socioeconomic foundations in corporate climate transition plans To support businesses in guarding against these risks and maximizing opportunities, this report proposes considerations for decision-makers seeking to embed socioeconomic factors in climate transition plans. The questions and accompanying rationale are structured across components of corporate climate strategy design (e.g. baseline assessment, ambition, governance structures) and highlight areas particularly pertinent to socioeconomic impact management (e.g. stakeholder engagement, peer and public sector engagement). This structure aims to ensure that guidance: –Is practical and applicable at multiple levels of decision-making –Is relevant to businesses across sectors, and of multiple organizational types –Supports consideration of the full ecosystem of shareholders and stakeholders, including across national boundariesThe intention of this guidance is to provide a holistic picture of considerations for embedding socioeconomic factors into corporate climate plans. Some businesses may already be addressing these areas, perhaps with a greater focus on certain considerations than others. In these cases, businesses can refer to these considerations to understand where else they may want to focus efforts. The considerations are not necessarily sequential and therefore do not represent a comprehensive action plan for developing climate strategies that embed socioeconomic considerations. In some areas, such as “engage peers and the public sector”, for example, the guidance encourages businesses to consider such factors throughout their decarbonization and social impact journey, as part of an integrated transition approach. Key considerations for embedding socioeconomic factors in corporate transitions FIGURE 13 Understand context Establish baseline socioeconomic impacts of business activitiesSet ambition Endorse positive stakeholder outcomes in organizational climate ambition statements and accompanying strategyDevelop mitiga-tion measures Identify actions under your organization's direct control that can help mitigate socioeconomic risks and amplify co-benefitsAssess risks and opportunities Conduct a comprehensive risk assessment of climate transition plans and identify impacted stakeholder groups and socioeconomic risksEstablish governance Establish leadership and management structures to support an equitable transitionDevelop mitigation measures Engage stakeholders Implement proactive stakeholder engagement measures Engage peers and the public sector Identify opportunities to support wider enabling environment through peer and public sector engagement 41 Making the Green Transition Work for People and the Economy