Our key takeaway: Eleven companies involved in a range of different parts of the power sector have come together following COP26 to take the just transition to the next level. These companies have created a pact: the Powering Net Zero Pact. Through this pact, the companies commit to five ambition areas, with underlying shared commitments. The ambitions bring the transition to net zero and human rights together in one approach - including work on scope 3 carbon emissions, biodiversity, living wage and freedom of association. The companies can’t do it alone: they commit to collaboration topics, and invite other companies to join the pact.
Founding partners SSE, Siemens Energy, Siemens Gamesa, Balfour Beatty, DEME, GE Renewable Energy, Hitachi Energy, NKT, RJ McLeod, Subsea 7 and Vestas have come together to create The Powering Net Zero Pact (‘the Pact’) as a legacy of COP26.
- Fair and just transition commitment: The Pact brings together “all tiers of the power sector – including civils, shipping, renewables, electrical engineering and others – that are committed to a fair and just transition to net zero carbon emissions.” The Pact delves into five ambition areas: (1) achieve net zero carbon emissions, (2) protect and enhance the natural environment, (3) transition to a circular economy, (4) guarantee fair work and sustainable jobs and (5) add value to local communities.
- Shared commitments: The Pact delves into specific commitments that underpin each of its five ambition areas. For instance, when it comes to guaranteeing fair work and sustainable jobs, the signatories commit to “[c]reat[ing] a roadmap for the skills needed for net zero and guarantee fair work standards.” This includes the following: “Aim to prevent all life-changing safety incidents; Work towards paying all workers at least a real Living Wage; Acknowledge the right to freedom of association for all workers; Recognise the importance of greater inclusion and diversity, with targets publicly disclosed by 2025; Implement a robust approach to good business ethics with clear channels for speaking up against wrong-doing.”
- Collaboration topics: The Pact also details topics for collaboration that will help amplify and accelerate the identified ambition areas. When it comes to achieving net zero carbon emissions, the signatories commit to “[d]evelop[ing] understanding and quantification of scope 3 carbon emissions. When it comes to protecting and enhancing the natural environment, the signatories are looking to develop a framework for achieving Biodiversity Net Gain. When it comes to the transition to a circular economy, the signatories commit to “[d]evelop innovative products and construction methods to increase resource efficiency and design out waste.” In the field of fair work and sustainable jobs, the signatories commit to “[d]evelop a targeted modern slavery and human rights abuse risk-based approach across global supply chains.” And finally, in the area of adding value to local communities, the signatories commit to “[d]evelop and nurture competitive, local supply chains close to assets.”
