Making the Green Transition Work for People and the Economy 2025

Engage stakeholders Engage stakeholders: implement proactive stakeholder engagement measures Not all socioeconomic risks and opportunities will necessarily be manageable within the independent control of your organization. In some cases, managing socioeconomic risks may require proactive engagement with external stakeholders, including supply chain partners and communities, for example. Establishing and maintaining dialogue with such groups is important for understanding progress towards your socioeconomic and climate targets and ultimately maintaining social license to operate. It is also important that you remain agile in response to potential risks posed by external stakeholders. For example, if supply chain partners no longer align with your socioeconomic and climate transition strategy, your organization must be able to respond appropriately. Stakeholder engagement is required throughout the process of designing, implementing and monitoring progress on climate plans, and wholly underpins the other key considerations of this guidance. Questions to ask may include: Which stakeholder groups within and outside your organization need to be consulted to realize targets? –Certain mitigation measures may require proactive engagement with stakeholders to secure positive outcomes. Identifying such cases is important to ensure efficient delivery of targets.What monitoring, reporting and verification processes can you and stakeholders implement to promote continuous improvement? –Developing robust processes for reporting on socioeconomic impact metrics is important in ensuring your organization delivers meaningful outcomes. Monitoring, reporting and verification processes may necessarily vary between stakeholder groups and socioeconomic impact dimensions. Are there clear win-win opportunities for your organization and external stakeholders to benefit from, and how can these be communicated and secured? –Where there are opportunities to shape mutually beneficial outcomes for your organization and external stakeholders, these should be effectively communicated and championed. This can help drive outsized co-benefits for those in your operating environment and ultimately support long-term societal support and drive shareholder value generation. Are you identifying places where climate plans could strengthen local economic ecosystems? –Some opportunities may exist in the wider communities and environments in which businesses operate. For example, businesses may identify opportunities to enable secondary industries or community enterprises in areas where they operate. Making the Green Transition Work for People and the Economy 48