Just transition

Disclosure focus

Disclosure 102-3 requires an organization to report specific workforce and community impacts arising from its climate transition and adaptation efforts. It is not a general disclosure on recruitment, employee turnover, internal mobility or training. Each reported figure must be linked to an identified transition or adaptation action.

The organization must report the total number of new employees recruited, employees whose work was terminated, redeployed employees, and employees who received training for up- and re-skilling as a result of its transition or adaptation efforts. Each total must be broken down by gender and employee type. Employee types are those reported under Disclosure 2-7-b: permanent, temporary, non-guaranteed hours, full-time and part-time employees. The organization should additionally provide a regional breakdown.

The organization must separately report the number of new workers who are not employees recruited and the number of workers who are not employees whose work was terminated, with each total broken down by gender. Workers who are not employees are those whose work is controlled by the organization but who do not have an employment relationship with it, as defined in Disclosure 2-8.

Termination refers to the cessation of work initiated by the organization, including work phased out as a result of transition or adaptation efforts. General employee turnover, voluntary resignation, retirement and routine contract completion should not be included unless they meet the specific requirement. Redeployment should represent movement arising from transition or adaptation efforts, such as re-skilling employees from high-emission activities to lower-emission activities.

The organization must report the number and percentage of new employees whose basic pay is at or above the applicable cost-of-living estimate. It must also describe actions taken or commitments made to address gaps between basic pay and the cost-of-living estimate for new employees and new workers who are not employees. A general living-wage policy does not replace the location-specific comparison required by the disclosure.

The organization must list the locations of operation where its transition or adaptation efforts have impacts on local communities or Indigenous Peoples. It should identify specific locations within countries, such as states, provinces or cities.

The organization must report the percentage of these locations where an agreement has been reached with affected or potentially affected local communities or Indigenous Peoples to safeguard their interests. An engagement process is not the same as an agreement. For each location, the organization should state whether agreements cover all affected groups or only some and whether FPIC was applied where relevant.

The organization must report contextual information, methodologies and assumptions necessary to understand the data, including whether figures are reported in headcount, FTE or another methodology and whether they are measured at the end of the reporting period, as an average or on another basis. Where direct calculation of workforce figures is not possible, estimates can be used and explained.

Disclosure 102-3 applies to metrics arising from transition or adaptation efforts described under Disclosures 102-1 and 102-2. Generic information prepared under GRI 401, GRI 404 or other employment disclosures should not be presented as GRI 102-3 evidence unless the required climate-related connection is demonstrated.

This LRA educational guidance supports disclosure preparation. For the exact requirements, always refer to the official Global Reporting Initiative source.