Building an Inclusive Economy for Climate Justice
An inclusive economy is one where everyone can participate and thrive, regardless of background, identity, or socioeconomic status. This vision extends beyond economic growth, encompassing equitable access to resources, opportunities, and decision-making processes.
Building an inclusive economy prepares not only companies but workers and families to adapt to the challenges of climate change which is essential for achieving climate justice.
At its core, an inclusive economy ensures that all individuals can contribute to and benefit from economic activities, ensuring access to opportunities for underserved people and communities. It requires addressing systemic inequalities that have historically excluded Black, Indigenous, people of color, people with disabilities, and lower-income and working-class communities from full participation in the economy. For example, historically marginalized communities often lack access to quality education, healthcare, and employment opportunities, limiting their ability to engage in economic activities meaningfully. An inclusive economy seeks to dismantle these barriers, providing pathways for everyone to achieve economic security.
“Power building and politics without a commitment to justice can lead to neglect at best and oppression and exploitation at worst.”
The Role of Climate Justice in an Inclusive Economy
Climate justice acknowledges that the impacts of climate change are not distributed equally, with marginalized communities—often the least responsible for environmental degradation—bearing the brunt of its consequences. Climate justice seeks to rectify these imbalances by ensuring that those most affected by climate change have a say in crafting solutions and policies that directly impact their lives and are actively involved in the transition to a green economy.
For example, job creation in the renewable energy sector would be accessible to workers from all backgrounds, particularly those transitioning from fossil fuel industries and policies aimed at reducing carbon emissions would consider the social and economic impacts on low-income and marginalized communities, ensuring that the burden of climate action does not disproportionately fall on those least able to bear it.
The Role of Public Pension Funds in Building an Inclusive Economy
Public pension funds play a crucial role in building an inclusive economy by directing vast capital toward investments promoting social equity and sustainability. These funds, which manage the retirement savings of millions of public sector workers, can influence corporate behavior and support industries that align with the principles of climate justice and economic inclusion. Public pension funds can help reduce income inequality, support marginalized communities, and ensure that the transition to a green economy benefits everyone by prioritizing investments in renewable energy, affordable housing, and equitable healthcare.
Funds can also advocate for stronger corporate governance practices that protect workers' rights and promote workplace diversity, equity, and inclusion to drive social and economic growth.
CFA's Commitment to an Inclusive Economy
At Climate Finance Action (CFA), we are committed to advancing climate justice by empowering stakeholders and decision-makers to leverage publicly-held capital for sustainable and equitable solutions. Our approach is rooted in the understanding that climate action, workers' rights, and the health of the economy are interconnected. And our work fosters collaboration with pension fund trustees, investment managers, and other stakeholders to develop policies addressing climate risk while promoting equity and inclusion.
Integrating climate action with social equity ensures everyone can participate in and benefit from the transition to a green future. This involves working with pension funds, asset managers, and other financial stakeholders so that their investments align with the principles of climate justice and economic inclusion.
As we move forward, it is crucial that we continue to prioritize the needs of workers, especially those from historically marginalized communities. With the power of public pension funds, we can build a future where equity, justice, and sustainability are at the heart of every financial decision.
This is how we protect workers' retirement futures and contribute to a world where climate justice is a reality for all.
