SSE – working with investors to chart a just transition
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Summary
- UK-based energy utility SSE was one of the first companies to design and implement a just transition strategy as part of its net zero plan.
- Dialogue with investors was a key factor in the development of the strategy and its experience provides important lessons on business strategy, market frameworks, metrics and stakeholder dialogue.
- SSE worked with two key investors to build support for and develop a market-leading just transition strategy as part of its net zero plan.
- By tabling a question on the just transition at SSE’s 2020 AGM, Royal London Asset Management and the Friends Provident Foundation helped raised the profile of this issue among internal and external stakeholders.
- The strategy contains 20 just transition-related principles which guide SSE’s overall corporate direction. The company has since reported on how the strategy has been implemented, primarily with qualitative disclosures. SSE is reviewing the principles, and is exploring quantitative metrics to measure progress.
- SSE’s example has helped to encourage wider efforts on just transition at both the sector and national levels.
- The case study highlights the links with business practice, the importance of leadership to stimulate wider adoption, the need for more dialogue between investors and stakeholders (such as trade unions) and the importance of future work in developing just transition pathways.
