A just transition with regards to climate change refers to ensuring that the shift to a low-carbon economy is fair and inclusive, particularly for workers and communities that are adversely affected by this transition. Here's why option C is correct:
* Just Transition:
* A just transition involves measures that support workers and communities who are impacted by the transition to a sustainable economy. This includes creating new job opportunities, providing retraining programs, and ensuring social protections for those affected by changes such as the closure of coal mines.
* Collaborating with labor unions to develop a social package for displaced workers is a clear example of this approach, as it directly addresses the social and economic challenges faced by workers during the transition .
* Other Options:
* Option A (financing a gas-fired power utility project) does not address the social aspects of the
* transition and is more focused on the financial and infrastructural changes.
* Option B (designing reusable and recyclable products) is aligned with the circular economy but does not specifically address the social justice aspect of the transition .
CFA ESG Investing References:
* The CFA Institute's ESG curriculum includes discussions on the importance of a just transition, emphasizing the need for policies and initiatives that protect workers and communities during the shift to a sustainable economy .