As the climate crisis deepens, the global push toward net-zero emissions has become a defining priority.
In the Asia-Pacific (APAC) region—home to some of the world’s fastest-growing economies and most climate-vulnerable populations—governments, businesses, and financial institutions are accelerating decarbonisation through ambitious targets and investments in clean technologies.
However, the scale and speed of this transition bring significant social risks. At LRQA, we believe that climate action must be inclusive, equitable, and grounded in respect for human rights. The journey to net zero must not come at the cost of people.
Climate Action Without Social Harm
The 2024 UNEP Emissions Gap Report underscores the urgency of climate action. Yet, in many developing countries, the socio-economic impacts of decarbonisation threaten to undermine environmental gains. For example, suppliers in emerging markets often struggle to absorb the costs of decarbonisation. This can lead companies to shift supply chains to regions better equipped to demonstrate emissions reductions—widening the gap between developed and developing economies.
The principle of a just transition, enshrined in the 2015 Paris Agreement, is gaining traction. By 2022, 38% of countries had integrated just transition principles into their national climate strategies under the UNFCCC. For APAC, where economic disparity and social vulnerability are pronounced, embedding these principles is not just ethical—it’s essential for long-term success.
The Hidden Costs of Green Supply Chains
The shift to clean energy depends on critical minerals like lithium, cobalt, and copper—many of which are sourced from regions with weak governance and high social risk. Between 2010 and 2024, the Business & Human Rights Resource Centre tracked 835 human rights allegations linked to transition mineral extraction. Alarmingly, fewer than half of the implicated mining operations had a public human rights policy. Even more concerning, less than 30 mines accounted for 50% of all reported allegations, highlighting the severity and concentration of risk.
Land, Consent, and Community Conflict
Large-scale renewable energy projects can also trigger social unrest. There have been several recent examples of wind energy projects facing strong opposition from local communities due to land confiscation and lack of consultation. Across APAC, similar risks exist—especially in Indigenous territories—where free, prior and informed consent (FPIC) is inconsistently applied.
Research shows that when FPIC is bypassed, communities are more likely to face displacement, loss of livelihoods, or conflict. This is a growing concern in resource-rich regions of Southeast Asia and the Pacific.
Carbon Offsets and the Risk of Exploitation
Voluntary carbon markets, particularly forest-based offset projects under the REDD+ framework, often operate in economically disadvantaged areas. In these contexts, project developers can become dominant employers, creating power imbalances and increasing the risk of abuse.
A case in point: the Kasigau project in Kenya, once celebrated for its community-centred approach, was found to have enabled systemic sexual abuse of women over more than a decade. The failure was not isolated—it reflected broader gaps in oversight and third-party verification. In Chile, similar concerns have emerged around land access and Indigenous rights linked to offset initiatives.
How LRQA Supports a Just Transition in APAC ?
At LRQA, we work with organisations across APAC to embed just transition principles into their sustainability strategies. Our approach is grounded in international standards, aligned with national regulations, and tailored to local realities.
Renewable Supply Chain Human Rights Due Diligence
We help clients assess sourcing practices to identify risks such as labour exploitation, community displacement, and environmental degradation. We also support the development of sourcing policies, supplier evaluation criteria, and Codes of Conduct.
Real-Time Risk Monitoring with EiQ
Our EiQ platform enables clients to monitor human rights and labour risks across complex, multi-tiered supply chains. Real-time data and analytics support informed, ethical decision-making.
Human Rights Impact Assessments (HRIAs)
We help clients evaluate the human rights impacts of renewable energy, carbon offsetting, and infrastructure projects—ensuring that net-zero initiatives do not harm vulnerable communities or Indigenous Peoples.
Grievance Mechanism Design & SpeakUp Helpline
We assess and help design effective grievance mechanisms. Our SpeakUp helpline allows workers and communities to raise concerns confidentially and anonymously, in multiple languages.
Training on HSE and Human Rights
We deliver targeted training to equip staff, suppliers, and partners with the knowledge to manage social risks and uphold ethical practices—ensuring alignment with just transition principles across the value chain.
Enabling a Just Transition Through Responsible Business
The path to net zero is not just about reducing emissions—it’s about building a future that is sustainable, inclusive, and just. As the APAC region leads the charge in climate innovation, businesses must ensure that their transition strategies are rooted in labour rights, community inclusion, and ethical conduct.
Overlooking the social dimension of climate action can result in reputational damage, regulatory exposure, and financial risk. Embedding human rights due diligence into core operations is no longer optional—it’s a business imperative.
Partner with LRQA
At LRQA, we help organisations navigate the social complexities of the green transition. Whether you're scaling renewable energy, rethinking your supply chain, or investing in carbon offsets, we can support your journey toward a just and responsible net-zero future.
Contact us to learn how LRQA can support your just transition strategy in APAC.