When it comes to making the transition to a more sustainable economy, investors should play a leading role, State Treasurer Erick Russell said at The Dodd Center for Human Rights on Feb. 27, as part of the opening event for a two-day conference hosted by the Business and Human Rights Initiative at UConn. 

The process of achieving net zero carbon emissions will affect workers and communities the most, Russell said. As businesses and investors strive to reduce emissions and boost the renewable sector of the economy, they must keep the wellbeing of employees at the forefront of the process. 

“While we focus on the goal of transitioning to net zero, we must remember to move forward in a way that protects human rights as well. Our long-term sustainability goals can’t leave some people behind in the process,” said Russell.  

Everyone should be included in, and benefit from, sustainable development efforts, he told the audience. For instance, companies can embrace the focus on labor in a transition by reskilling or retraining their workers to gain the skills for green jobs. Supporting employees through the change to a low-carbon economy fulfills the purpose of a just transition—creating a green economy while protecting and respecting workers’ rights.  

“As investors, we can play a role in the battle against climate change that can be both vital and transformative,” said Russell. “Capital can fuel the transition to renewable energy, revolutionize agriculture, and drive technological innovation—and every investment decision helps contribute to that.”

Investors must realize the direct influence they have in mitigating climate risks and supporting the growth of a green economy, Russell said.

“Just transition is critical. It’s a critical topic for investors to engage in and, while we have made strides on this, more transparency is certainly needed,” said Russell. 

Russell’s address was followed by a discussion moderated by Associate Professor of Business Law Stephen Park and Assistant Professor of Business Law Rachel Chambers, the co-directors of the Business & Human Rights Initiative.

“We believe as an investment firm that companies that responsibly manage those challenges over the long term will outperform,” said panelist Mary Beth Gallagher, an asset manager who invests in public companies as the Director of Engagement at Domini Impact Investments. “We are fundamentally trying to generate sustainable, equitable returns for our shareholders, but we believe thinking about managing human rights responsibilities as well is really not separate from that, but fundamental and critical to a company operating well.”

Paul Rissman, the Co-Founder of Rights CoLab, addressed questions about the investment case in regard to human rights and climate change.  

“You can’t fix climate without fixing inequality and human rights. So, fix inequality and human rights first, and then you’ll have a much easier time fixing climate,” said Rissman. 

All levels of government are crucial agents in executing a just transition to a sustainable economy, the panelists said. This has been especially true at the state level, where policymakers have been active and innovative in crafting laws, policies, and practices that seek to address the roots of the problem.

“I think the hope is that we are seeing a lot more activity at the municipal and state levels really joining forces with each other across borders,” said Kindra Mohr, Associate Director at Financial Services and Human Rights at BSR.

After the panel discussion, moderators opened the floor to questions, fostering an active discussion among the panel members and audience. Students asked questions ranging from how they could get involved in promoting just transitions to how this can be achieved while protecting the livelihoods of workers.

“We have to find a better way, and I think it’s a struggle, but social dialogue or discourse between the company and the community needs to be at the heart of that,” said Gallagher. 

“One of the premises of the Business and Human Rights Initiative is that ethical and socially responsible business practices should be informed by human rights,” said Park. “As part of our mission of engaged research, we brought together an amazing group of financial professionals, human rights practitioners, and academic researchers to explore the human rights implications of the climate transition. UConn was the perfect place for this convening.”

This event was made possible by the Business and Human Rights Initiative, a partnership program between Gladstein Human Rights Institute and UConn School of Business.