Making the Green Transition Work for People and the Economy 2025

Develop mitigation measures Develop mitigation measures: identify actions under your organization’s direct control that can help mitigate socioeconomic risks and amplify co-benefits Once socioeconomic risks, opportunities and exposed stakeholders have been identified, it is critical to determine what actions your organization can take to manage risks and amplify opportunities. While spearheaded by leadership, it may be necessary to develop mitigation measures in collaboration with the business functions and practices responsible for implementing them. This can also serve to maintain organizational alignment in working towards socioeconomic objectives. Questions to ask may include: Do identified socioeconomic risks require prevention, mitigation or remediation? –Not all socioeconomic risks will require the same approach. In some cases, where risks are identified before they emerge, prevention measures may stop them from materializing. In other cases, for example, where existing activities are driving risks that could be worsened by climate action, mitigation or remediation measures may be required. What is the longlist of potential actions your organization could take to help prevent, mitigate and remediate socioeconomic risks, and who are the relevant implementors of each? –Developing a long list of prevention, mitigation and remediation measures your organization could enact can help efficiently identify the most appropriate support mechanism for emergent risks. This will also help maintain organizational agility to respond to changing circumstances, with different measures applicable to different future risk scenarios – for example, measures that may help prevent passing increased costs down to consumers (green premium). Is there sufficient resourcing (human and financial) allocated to prioritized actions, and do the responsible parties have the necessary competencies to implement the measures? –Once measures are developed, it is critical to ensure that there are sufficient resources dedicated to delivering the desired outcomes. This may include allocating dedicated personnel and financial resources to mitigation measures. This may also include upskilling responsible parties to ensure sufficient capacity to implement measures. What complementary strategies can ensure socioeconomic co-benefits of climate plans are maximized? –Where transition plans are identified as having the potential to drive positive socioeconomic outcomes for people and communities, it is important to understand how these effects can be amplified. Such actions could also drive knock-on reputational and value generation opportunities for businesses. Are you capitalizing on innovation and novel business models to lower costs, improve access or open opportunities for disadvantaged groups? –Driving positive socioeconomic outcomes may be expedited through the adoption of new ideas that can be deployed through a revised climate strategy. Businesses should consider how innovation can support both climate and socioeconomic outcomes when implementing their transition plans. Where are reskilling, upskilling or alternative worker support programmes necessary? –Workers within your organization may require support in reskilling or upskilling to adapt to new roles throughout your transition. Are measures sufficiently targeted to support stakeholders in different locations? –As the risks and opportunities faced by your business and stakeholders vary between places, so too may the appropriate management measures. Risks may need to be mitigated in one region, but prevented elsewhere. Corporations operating across multiple countries may need to be particularly sensitive to such challenges, given the diverse stakeholder groups affected by their transitions. Making the Green Transition Work for People and the Economy 47