Just Transition

What is just transition?

A just transition seeks to ensure no individual or group is left behind as we transition into a net zero economy. To drive meaningful change for a sustainable future for all, just transition places a strong emphasis on safeguarding the wellbeing and livelihoods of vulnerable groups who may be impacted by these transformations.

Why is it important?

Sustainable development and the journey towards achieving net zero emissions fundamentally revolve around fostering economic growth that is decarbonised, fair and nature-positive. A narrow focus on decarbonisation will prove insufficient unless we take into account the broader economic, environmental and societal consequences.

While governments bear a primary role in implementing policies and regulatory frameworks, businesses also play a significant part in the solution. This includes providing inclusive opportunities for stakeholders who experience effects from transitioning away from carbon-intensive activities, while simultaneously generating added value for employees, shareholders and other stakeholders.

International Labour Organization (ILO) 4 pillars:

ILO's Decent Work Agenda has four pillars: employment creation, social protection, rights at work and social dialogue
These pillars have became essential elements of the 2030 Agenda for Sustainable Development, wherein Goal 8 calls for the promotion of sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.

Malaysia targets to eliminate forced labour practices by 2030

Malaysian companies faced US import bans in recent years over allegations of forced labour against migrant workers employed in the manufacturing and plantation industries.
Allegations include debt bondage, excessive working hours, retention of passports and unhygienic dormitories
As at September 2023, the Human Resources Ministry has fined 400 companies for violating labour laws, including illegal wage deductions.

Common challenges

In embedding sustainability, organisations – especially the developing economies in Asia Pacific – face the following challenges.

Lack of capacity in a centralised, coordinated governing structure to support a timely people transition
Lack targeted and incentivised training initiatives to drive wide scale upskilling and human capital development
Collaboration between public and private sectors is lacking, without which the necessary resources required to drive systemic change remains unavailable
Existing challenges associated with large and vulnerable populations in developing economies pose additional challenges

How can PwC help?

PwC is dedicated to support your business’s journey towards a thriving and more resilient workforce. With proven track record of success, our comprehensive services listed below are aimed at providing tailored solutions to address the specific workforce sustainability needs of your organisation.