Symposium on the Responsibilities of Investors for a Fair and Just Climate Transition

As guest co-editors, we are pleased to present this BHRJ Blog symposium, the output of a conference held at the University of Connecticut on February 27-28, 2025. The event was organized by Stephen Park, Rachel Chambers, Karin Buhmann, and Danielle Anne Pamplona, who convened an interdisciplinary and multi-sectoral dialogue between academic researchers, business and human rights practitioners, and financial professionals to explore the legal, ethical, financial, and social dimensions and implications of climate action in an era of rapid environmental and economic transformation and political instability and uncertainty.

The contributions published in this symposium reflect the richness and diversity of that conversation. Together, they examine the intersections between climate action, human rights, and the responsibilities of both public and private actors in steering the transition towards sustainability in ways that are equitable, transparent, and inclusive. Representing authors from several different regions, the pieces highlight the diverse contexts, conditions, and approaches to business and human rights (BHR) among civil society organizations, financial institutions, companies in various sectors, policymakers, and regulators. Some of the contributions are written in a specific geographical context; whereas others take a more general or transnational value-chain orientation. 

While diverse in scope, these contributions collectively serve as a reminder that the connection between finance, climate change, human rights, and responsible business transcends national borders and that responses must recognize local contexts and keep local needs in mind. Further, they encourage readers to be mindful that even renewable energy may have harmful environmental and eco-systemic impacts, which may, in turn, adversely affect human rights. They also remind us that while energy production requires resource extraction, access to energy is also fundamental for the fulfilment of a range of human rights such as the rights to food and housing. Moreover, while political, legal and corporate developments in North America and Europe dominate some strains of debates on trends in BHR, the various local perspectives explored in this symposium remind us that global developments are much more diverse. Finally, the interlinkages between investors, human rights and climate change addressed in many of the contributions underscore the need for more research and advocacy on human rights and sustainable finance for a just transition.

Three Dimensions of Climate Action and BHR

The contributions to this symposium address three distinct dimensions. First, three pieces explore how companies and industries integrate—or fail to integrate—justice, equity, and human rights into their sustainability and decarbonization strategies. They highlight risks of greenwashing, social harm, and exclusion, offering critical insights on how corporate actors must embed human rights and community voices at the heart of their climate action. 

In this vein, Carol Liao’s contribution, ‘Legal Intersections of Climate Risks, Indigenous Rights, and Corporate Fiduciary Obligations’, explores how climate risks intersect with Indigenous rights and corporate fiduciary duties in the context of increasing climate litigation and governance evolution. Liao argues that the disproportionate effect of climate change on Indigenous communities and their marginalization in decision-making is not consistent with international frameworks that require free, prior, and informed consent and respect for Indigenous sovereignty. 

The contribution by Danielle Pamplona and Pricila de Aquino, ‘Green Steel, Dirty Truths: the Ethics of Responsible Investment’, assesses the environmental and social impacts of so-called green steel production in Brazil, exposing the hidden injustices behind sustainability claims and how ESG (environmental-social-governance) reports highlight environmental metrics but omit social impacts, thereby masking ongoing human rights abuses. Pamplona and de Aquino argue that responsible investment must go beyond formal compliance and include rigorous due diligence on human rights and environmental justice. 

Lucy Siers’s contribution, ‘Extreme Heat and Workers’ Rights’, highlights how apparel brands’ focus on reducing greenhouse gas emissions can endanger workers’ health by neglecting climate adaptation needs in supply chains exposed to extreme heat. Siers calls for the adoption of a ‘shared responsibility’ model by investors and manufacturers that balances mitigation with adaptation efforts for worker protection. 

A second set of pieces examines how the financial sector may shape or hinder just transition through investment and lending decisions. These contributions analyze how investors, banks, and other financial institutions shape the pace, direction, and fairness of the climate transition and highlight the urgent need for the financial sector to move beyond narrow environmental metrics and ensure that climate finance does not perpetuate inequality, exploitation, or harm. 

Motoko Aizawa’s contribution, ‘Just Energy Transition Partnerships (JETPs): Are they Just and Ready for Transition?’, analyzes the role, challenges, and potential of JETPs in supporting equitable and sustainable energy transitions in developing countries. Explaining that JETPs aim to integrate climate finance and social justice, Aizawa indicates that some countries’ regulation still face insufficient civil society engagement, lack of private sector guidelines, and limited justice measures and proposes sustained commitment from donors and stronger integration of justice elements. 

Chiara Macchi’s contribution, ‘Business and the Just Transition: Understanding the Responsibility of Banks’, observes that fragmentation between environmental and human rights due diligence leads to harmful outcomes (e.g., land-grabbing, community displacement) and to counter these harms, argues that banks must conduct human rights due diligence alongside environmental assessments under the UNGPs and OECD Guidelines, thereby embedding human rights in financing decisions to avoid perpetuating inequality in the green transition. 

Karin Buhmann’s and Jakob Lutz’s contribution, ‘Critical Minerals: The Significance of Investors’ Leverage for a Just Transition’, highlights the essential role of institutional investors in ensuring that the extraction of critical minerals for the energy transition respects human rights and environmental sustainability. Referencing land-based transition minerals extraction as well as a potential shift to deep-sea mining, Buhmann and Lutz point to the need for stronger investor application of leverage as part of their due diligence to ensure that supply chains respect human rights and environmental standards and wider eco-systemic impacts.

A third set of contributions addresses macro-level governance, including new climate technologies, international cooperation, and systemic governance gaps. These pieces reflect on how international frameworks, policy innovations, and emerging approaches must be designed to uphold justice, equity, and participatory decision-making. 

Barnali Choudhury’s contribution, ‘Shareholders’ Just Transition Activism’, argues that shareholder proposals are a critical tool for advancing climate justice and inclusive governance. Choudhury notes the increasing focus of shareholder proposals on ensuring fair transitions for workers and communities affected by decarbonization and suggests that their success should not only be measured by policy changes but also by raising awareness and initiating dialogue. 

Sara Seck’s contribution, ‘Marine Carbon Dioxide Removal and the Climate Transition’, assesses the governance, ethical risks, and business responsibilities associated with marine carbon dioxide removal (mCDR) as a climate mitigation strategy. She notes that existing codes of conduct governing mCDR stress precaution, inclusiveness, and Indigenous rights and calls for stronger integration with BHR frameworks. 

We thank the researchers who contributed to this symposium as well as the editors of the BHRJ Blog for the opportunity to showcase these contributions. We hope that this symposium will inspire further research, debate, and action towards building a just, fair, and inclusive climate future.

Authors

  • Stephen Park is an Associate Professor of Business Law and Co-Director of the Business and Human Rights Initiative at the University of Connecticut.

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  • Rachel Chambers is an Assistant Professor of Business Law and Co-Director of the Business and Human Rights Initiative at the University of Connecticut.

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  • Karin Buhmann is Professor of Business and Human Rights at Copenhagen Business School (CBS). Karin’s research and teaching focus on sustainability and responsible business conduct (RBC) with a particular emphasis on social issues, especially in climate change mitigation; business responsibilities for human rights; and sustainable finance. Karin is the Principal Investigator of the collaborative research project ‘Frontiers of natural resource and sustainability governance for a just energy transition’ (FRONTIERS). With a focus on investors and renewable energy companies involved in value chains of critical (transition) minerals the FRONTIERS project explores the roles and practices, including exercise of leverage and other aspects of outward-oriented due diligence.

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  • Danielle Anne Pamplona is a Professor at the Graduate Law Program at Pontifícia Universidade Católica do Paraná – PUCPR; Postdoctoral at the American University (Washington, DC); Visiting Researcher at the Bonavero Institute of Human Rights (Oxford) and the Max Planck Institute of Compared Public Law and International Law (Heidelberg); Co-President of the Global Business and Human Rights Scholars Association.

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