Making the Green Transition Work for People and the Economy 2025

Have you set clear short-, medium- and long-term milestones for socioeconomic goals alongside climate ambition so progress can be tracked? –It is important to complement long-term goals with sequential milestones to ensure orderly progress towards ultimate goals can be monitored.If there are prioritized groups, which ones and why? –It may be that certain groups are disproportionately exposed to your business activities, or at greater risk due to local contextual factors. Identifying these groups and establishing an understanding of why they need to be prioritized is important to securing their trust and delivering positive outcomes. CASE STUDY 1 SSE This case study sets out highlights from SSE’s just transition strategies across several of the key considerations for embedding socioeconomic considerations in corporate transitions. 47 SSE is a leading UK-listed energy company that invests in, develops, builds and operates electricity infrastructure and businesses needed for a clean, secure and affordable energy system. Its diversified portfolio includes onshore and offshore wind farms, hydroelectric power, solar and batteries, flexible thermal generation, and electricity transmission and distribution networks. SSE also provides energy products and services for businesses and other customers. SSE has over 14,000 direct employees, while supporting roughly 67,000 jobs throughout the UK and Ireland. SSE aims to reach net zero across scope 1 and 2 GHG emissions by 2040 at the latest (subject to security of supply requirements), and across scope 3 GHG emissions by 2050 at the latest. In addition, SSE has set 2030 targets for four UN SDG-aligned business goals. The company publishes an annual sustainability report covering economic, social and environmental impacts of business activities, and accompanying data tracking key performance indicators (KPIs). SSE’s latest Just Transition Strategy was published in 2024 – an update on the original 2020 plan – setting out a place-based approach and framework for ensuring just outcomes for stakeholders across 20 principles and tracking key indicators. Set ambition“SSE’s purpose is to provide energy needed today while building a better world of energy for tomorrow, and its vision is to be a leading energy company in a net-zero world. In order to achieve this, SSE’s strategy is to create value for shareholders and society in a sustainable way through the successful development, efficient operation and responsible ownership of energy infrastructure and businesses.”Establish governance SSE’s Just Transition Strategy has the highest level of governance within the organization, with the Group Executive Committee and Board reviewing and approving the updated strategy in 2024. Assess risks and opportunitiesAmong the updates SSE made to their Just Transition Strategy in 2024 was a sharpened focus on place-based effects of the transition. The updated strategy acknowledges how different regions operate at different scales, embedding an appreciation of interconnected nature of assets, stakeholders and activities. The strategy includes a proposed technical approach to understand the place-based risks and opportunities associated with SSE’s transition: –Identify the most material places in the UK and Ireland relating to SSE’s business activities. –Quantify the socioeconomic impacts SSE makes, including the number of people employed, apprenticeship programmes and investment. –Measure direct investment in social infrastructure including, for example, investment by Scottish and Southern Electricity Networks (SSEN) Transmission in housing. –Measure the value of community benefit funds. –Provide case studies of supplier initiatives. Engage peers and the public sector In updating their Just Transition Strategy, SSE consulted a range of stakeholders, including the Joint Negotiation and Consultation Committee (JNCC), key policy influencers and the Scottish Government. Source: SSE. (2024). Embedding a Just Transition. https://www.sse.com/media/pv2jncby/just-transition-strategy-update.pdf. Making the Green Transition Work for People and the Economy 43