Just transition in renewable energy

What is a just energy transition? 

Before explaining how we work to deliver a just energy transition, it might be useful to start with this: what is a just transition?

The idea of a just transition first became popular in the 1980s when trade unions looked to protect workers affected by things like new water and air pollution regulations. Today, it’s become tightly linked to the world’s climate goals, with the target of ensuring that all parts of society are included fairly in the transition to a more sustainable future.  

As Europe’s largest producer of renewable energy, it goes without saying that Statkraft bears a big responsibility when it comes to delivering a just transition in the development of renewable energy. We’ll explain some of the key areas we need to focus on below, starting with minority and Indigenous rights. 

Protecting Indigenous and Tribal peoples’ rights 

When we develop projects, it can be the case that they have an impact on Indigenous, tribal, native, or other minority groups. Those impacts could affect livelihoods, cultural traditions or land use. Naturally, we take these realities very seriously, so what do we do about it?  

The most critical thing we can do is work closely with communities. That can include actions like assessing how developments could impact local traditions or providing ways for people to raise concerns and get answers. Sometimes, impact is unavoidable. In those cases, we work to offer benefits such as financial compensation, replacement land, and support for local education or infrastructure. 

Supporting local communities to create shared value 

We want the communities we work in to experience real, positive change from our presence. We do that by teaming up with local groups that know the area best. That’s the most effective way to create opportunities, tackle challenges, and bring lasting benefits. On a national level, we work with sustainability networks and organisations to find ways of extending those benefits beyond individual projects and reach even more communities. 

Safe and fair working conditions 

A just transition wouldn’t be just if the workers across the supply chain weren’t working under circumstances that were safe and fair. We follow international labor rights standards, and we’re committed to the standard that all employees and supply chain workers should have fair pay and safe working conditions. As part of that commitment, we run detailed assessments to prevent human rights risks in our workplace and supply chain. If an action is required based on an assessment, we take it.

Opposing modern slavery 

Statkraft strongly opposes the use of forced labour, and we follow up on that in a couple of ways. Firstly, when we procure (buy or source) products or services from companies, we emphasise human and labour rights commitments at each stage of the process. For high-risk products we also seek to avoid sourcing goods that might be produced with forced labour by including specific disclosure requirements for sub-suppliers and traceability / chain-of-custody audit rights for very high-risk products to verify that the supplier adheres to the contract requirements. In addition, we work with industry associations and peers to raise awareness, increase transparency, and improve industry standards through relevant sector initiatives. Examples of associations we work with are the Wind Energy Initiative and the Solar Stewardship Initiative.   

Read our Global statement on modern slavery here.

Reporting and transparency 

It’s not possible to assess our impact in delivering a just transition if we we’re not conducting transparent reporting on exactly that. That makes reporting a top priority for us and the work we do to protect human rights and contribute with real benefits for people and communities. In fact, Statkraft is legally required to ensure public access to information under the Norwegian Transparency Act, and we respond to inquiries referencing this act. 

Contact us with inquiries referencing the Transparency Act and see our Transparency Act disclosures here.