Recent discussions at the International Finance Corporation’s 2025 Sustainability Exchange – Enhancing the “S” in ESG touched on issues of global concern and the complexities of building a just and inclusive low carbon society. Whilst in the midst of rising geopolitical tensions and more focus on energy security through the deployment of low carbon solutions, there are some concerns around the energy transitions and what that means – especially for people. The “S” – for Social – in Environment, Social and Governance (ESG) was brought to the forefront, underscoring the need to centre people in transition strategies. Former Prime Minister of the UK Tony Blair captured this by emphasing the need for more coordinated and united action.
What struck me the most in the conversation was the collective realisation of the need to put more emphasis on the “S” in ESG. Recently, there has been a renewed buzz in global corporate conversations around ESG and what that means for modern society. In long standing industries such as mining, the consequences of this oversight have been felt deep by communities as they continue to face exclusions, unsafe conditions and unfair, to limited benefits. In the session, the Fair Cobalt Alliance (FCA) shared a powerful example of how the mining sector – and extractive industries more broadly – can move beyond extractive models. The FCA brings together actors across the cobalt supply chain, mobilising investment to strengthen and professionalise the artisanal mining sector. Their work focuses on improving working conditions, advancing child rights and supporting income diversification schemes that build long-term resilience in artisanal mining communities. The key message was the need to shift from merely securing a social license to operate, to becoming transformative agents for change – grounded in equity, inclusion and co-creation.
With that being said, there still remains the big question of how we measure things – especially those that are qualitative and relational. Unlike environmental impacts that can be quantifiably measured and mitigated, social impacts are usually inconsistently represented and considered. I particularly found the example of the United Arab Emirates’ (UAE) approach of having Sustainable Development Goals (SDG) councils drive public and private collaborations and job creation being placed at the center of the transition and its implementation strategies commendable.
This emphasis on centering people in implementation strategies resonated with me, especially in light of recent conversations I have been a part of through INSPIRE’s Academic Circles and the Building Awareness for a Gender Equal and Inclusive Just Transition project in Mpumalanga, supported by the World Bank. It left me reflecting on the real tensions that communities on the ground are navigating – those of fear and hope, and uncertainty and possibility for the transition. On one hand, there is the question of what the transition means for people whose livelihoods are threatened by it. Job losses aren’t just an economic concern, they represent identities at the individual and community level. On the other hand, there is the continued concern of the health and other negative impacts of fossil-fuel and progressing climate change (as we have seen in many cases) if the transition continues to be delayed.
I believe it is crucial that we see the transition as a process rather than an endpoint. It is a process that must be iterative, co-created and deeply rooted in lived realities of those affected – by the phasing-out of the unsustainable and phasing-in of the new, cleaner solutions. It is clear to me that we need to hold space for all the fears and hopes, and allow for a transition that is proactive – responsive to real issues.
This naturally leads us to some critical questions we must begin to grapple with – both immediate and long-term. “How can we best capture the lived experiences of those at the centre of the transition in ways that meaningfully influence policy and investments?” Perhaps that means looking at how we engage with communities and other critical stakeholders. “How do we convince big corporates that enhancing the “S” in ESG is not only good for their bottom-line but should be looked at through the lens of sustainability; the kind of legacy they leave behind?” Lastly, and maybe closest to the work that we do at INSPIRE, “what does ‘true’ community ownership in the transition look like?”
Answering these questions calls for us to listen deeply, openly and sit with any discomfort and utilising arising tensions and conflict to continue challenging the current system.
