The global shift to a low‑carbon economy creates opportunities for innovation, competitiveness and decent work, but if not managed well, it can generate risks for workers, communities and consumers— ultimately undermining the pace of transition. Implementing OECD standards on responsible business conduct (RBC) can help companies integrate social considerations into transition activities, contributing towards a just transition.
The OECD Guidelines for Multinational Enterprises on Responsible Business Conduct (the OECD Guidelines) are recommendations jointly addressed by governments to multinational enterprises. They encourage enterprises to make positive contributions to economic, environmental and social progress, and to minimise adverse impacts on matters covered by the Guidelines that may be associated with an enterprise’s operations, products and services, or its business relationships. In 2023, 55 Ministers from the OECD and partner governments recognised that “the Guidelines are particularly well-placed to promote a holistic and comprehensive approach to environmental management and climate action that also takes into account social impacts” (OECD, 2023[1]).
This report outlines how companies can take an integrated approach to transition planning and implementation, take a place-based approach to identification and prioritisation of impacts and account for cumulative effects, practice meaningful stakeholder engagement, promote continuous improvement and benefit sharing, and approach disengagement responsibly in the context their low-carbon transition. The analysis draws on interviews with 22 companies and financial institutions and 11 civil society and stakeholder organisations across energy, transport, manufacturing, agriculture, and finance, as well as inputs from a multistakeholder advisory group and the OECD Working Party on Responsible Business Conduct. It also draws on a broad body of existing guidance, benchmarking data, and company practice.