Just transition
An inclusive path to net zero
A just transition seeks to ensure that no individual or group is left behind as we transition to a net zero economy. To drive meaningful change and foster a sustainable future for all, a just transition places a strong emphasis on protecting the wellbeing and livelihoods of stakeholder groups who may be affected by these transformative policies.
Why is it important?
Sustainable development and the pursuit of net zero emissions are inherently linked to promoting economic growth that is not only decarbonised, but also equitable and nature positive. A singular focus on decarbonisation will prove inadequate unless we actively consider the broader economic, environmental and societal implications of our actions.
While governments bear a primary responsibility for setting the direction that guides the transition towards a low-carbon economy, the role of businesses remains equally vital. By creating inclusive opportunities for all stakeholders impacted by the shift away from carbon-intensive activities, businesses have the potential to generate shared value that extends beyond profits, benefiting employees, shareholders and the broader community alike.
The four pillars of the International Labour Organization’s (ILO) Decent Work Agenda (i.e. employment creation, social protection, rights at work and social dialogue) are essential to the 2030 Agenda for Sustainable Development, particularly reflected in Goal 8, which calls for sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
Malaysia’s National Action Plan on Forced Labour (NAPFL) 2021-2025 is Malaysia’s national framework aimed at eradicating all forms of forced labour by 2030 and promoting safe migration practices. It is structured around four strategic goals—awareness, enforcement, protection and partnership.
Common challenges
As organisations—particularly those in developing economies across the Asia Pacific region—work towards integrating sustainability, they encounter several challenges:
Lack of resources and capacity within centralised governing structures to effectively support timely people transitions.
Absence of targeted and incentivised training initiatives to drive large-scale upskilling and the development of human capital necessary for sustainable advancement.
Inadequate collaboration between public and private sectors, resulting in a lack of essential resources required to drive systemic change.
Inherent socioeconomic challenges related to large and vulnerable populations in developing economies present additional hurdles to sustainability efforts.
Here’s how we can 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.
Explore related case studies
- A Malaysia-based foundation
- A global manufacturer based in Malaysia
- Malaysian integrated energy provider
- Publicly listed Malaysian integrated energy provider
A Malaysia-based foundation
Challenge: The client sought to improve their grant application and evaluation process, in addition to improving the reporting capabilities and accountability of their grantees.
Solution: We delivered a three-module engagement consisting of the following:
- A needs assessment via engagement sessions with stakeholders, focus group discussions with the current cohort of grantees, followed by a desktop review and benchmarking of documents.
- Grant programme enhancement by consolidating application documents, redeveloping logical framework template with ease of use in mind, and developing a monitoring, learning and evaluation (MLE) framework designed to streamline reporting and facilitate progress evaluation of grantees’ projects.
- Capability building for grantees on robust progress reporting practices and the use of the new monitoring, learning and development framework.
A global manufacturer based in Malaysia
Challenge: The client was facing a persistent issue with workplace incidents and accidents. Despite significant investments in safety programmes and physical barriers, their efforts had not been effective. With a substantial portion of their workforce comprising foreign labour—a more vulnerable group—they needed to understand the safety culture, attitudes, and awareness levels of their employees across all their Malaysian plants. This understand was crucial for implementing targeted actions to address any gaps in their safety policies and practices.
Solution:
- Conducted a safety and compliance survey across all plants, engaging nearly 4,000 employees, from ground-level employees to C-suite leaders
- Conducted visits to the client’s manufacturing sites to gather contextual insights for context-finding purposes
- Hosted a group interview with health, safety and environment (HSE) managers from all plants
- Conducted individual interviews with leaders overseeing human resources and HSE functions
- Designed three sets of survey questions (each with a different focus based on seniority levels within the organisation) with reference to international standards and local laws
- Provided in-depth analysis of survey responses
- Administered the survey to gather responses with close to 100% response rate
- Derived actionable recommendations based on survey results, broken down by actions that can be taken by each seniority level
Malaysian integrated energy provider
Challenge: The client sought to uphold human rights within their operations and across their value chain, particularly in the context of just transition.
Solution:
- Conducted a Human Rights Risk Assessment (HRRA), which is the first phase of a Human Rights Due Diligence (HRDD)
- Reviewed key documents, including policies and procedures, with reference to applicable laws and regulations governing human rights
- Engaged with stakeholders via interviews to determine the purpose of key documents
- Evaluated how the human rights governing documents were communicated within the organisation, resulting in actionable recommendations aimed at enhancing clarity, accessibility and effectiveness
Publicly listed Malaysian integrated energy provider
Challenge: The client sought to improve their leadership’s understanding of human rights as well as enhancing the disclosure of human rights elements within their sustainability report.
Solution:
- Conducted a needs analysis with the client to identify existing knowledge gaps, which was conducted in consideration of emerging regulatory changes such as the EU CSRD and CSDDD
- Proposed a three-module training programme focusing on the topics of modern slavery, grievance mechanisms and human rights reporting in accordance with the GRI Standards
- Designed training materials tailored to the client’s industry context and needs of the senior leaders
- Delivered three full-day workshops to future-proof the understanding and sustainability mindset of senior leaders in relation to human rights
