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Sustainable Magazine

Sustainable Magazine

The energy transition - a social issue

The past seven years have been the warmest on record. And we notice it: there are more frequent heat waves, water shortages, but also floods and higher sea levels. These are all tangible consequences of climate change, with serious risks for many people in large parts of the world.
Effect climate risk

According to the UN, almost half of the world's population now lives in a danger zone because of climate risk -- especially the poorer part of the world population. The need and urgency to turn the tide is clear, but it is important not to lose sight of the big picture along the way. 

Metals energy transition

For example, metals are needed for the energy transition, for the production of solar panels and electric cars, among other things. These metals bring an energy-efficient future closer. However, without considering the human aspect, the mining of metals can lead to poor working and living conditions for the workers and the people living in the vicinity of the mines. Moreover, these are often located in sensitive natural areas. As an investor, how do we deal with this?

Availability energy Europe

But there are also challenges closer to home: for example, the availability of energy in Europe is a concern. People are looking with all their might at how we can prepare for the colder winter months. There is even talk of keeping 'dirty' coal-fired power stations open longer, with all the CO2 emissions that would entail. 

Facts and Figures

Moreover, energy has become very expensive, now that oil and gas prices have risen sharply. The monthly energy bill is therefore becoming too expensive for an increasing number of people. The result is that people can get into payment problems and, in extreme cases, run out of energy. Energy companies have an important role to play here.

What do they do, for example, when their customers run into payment problems? 

Many companies are already working on the energy transition, taking the human aspect into account. ABN AMRO is engaging other businesses in dialogue, with a view to using engagement to bring about such a change. This brings us to the theme of a sustainable energy transition that is fair to both the planet and people. This will hopefully take us from bad to better, via less bad. 

Sources

1 https://ec.europa.eu/clima/eu-action/forests-and-agriculture_en
2 The Role of Critical Minerals in Clean Energy Transitions, revised version, IEA, March 2022, en https://www.iucn.nl/blog/wordt-de-opmars-van-de-elektrische-auto-de-ondergang-van-tropisch-bos/
3 IRMA (Initiative for Responsible Mining Assurance), https://responsiblemining.net/
4 International Labour Organization Frequently Asked Questions on just transition (ilo.org)
5 https://ec.europa.eu/clima/eu-action/forests-and-agriculture_en