Hydro can only succeed as a company if the communities around us also succeed. It is widely recognized that vulnerable communities will be the most affected by climate change and by the transition to a low-carbon economy, unless these impacts are managed as part of the process. The 2015 Paris Agreement includes a clear recognition that the green transition must also be just, a recognition which has been further established and operationalized by the UN’s 2030 Agenda “Leave No One Behind”. As a global aluminium and energy company operating in more than 40 countries, Hydro has the potential to impact a large number of people.

Hydro’s Just Transition Framework has been established to ensure that Hydro’s business contributes to a transition that is both green and just. By acting on this framework, our aim is to contribute to positive development in the societies where we operate, in our own workforce and in our value chain. 

Hydro’s Just Transition Framework

Hydro has developed a framework for supporting a just transition, focused on three key outcomes: 

• Respecting human rights and providing access to equal opportunities
• Contributing to resilient local communities
• Supporting people to gain the necessary skills and jobs for the future low-carbon economy 

Based on these, we have prioritized three areas where we believe we have a high ability to create impact: Leave no one behind; Strengthen local communities; Skills for the future.

Leave no one behind

Respecting, supporting and promoting human rights is the foundation of our just transition work. While Hydro’s ambition of improving lives and livelihoods wherever we operate goes beyond respecting human rights, the positive impact we seek to achieve can only be created when the rights of people affected by our operations and in our value chain are respected. Hydro conducts human rights due diligence, which is an internationally acknowledged methodology for companies to identify and address actual and potential human rights impact associated with their operations, including in their value chain. Stakeholder dialogue is an important part of our human rights due diligence processes. Read more about human rights at Hydro here.

Our work in the area of Diversity, Inclusion and Belonging is also an important part of this focus area. Read more about this here. 

Strengthen local communities

A key element in Hydro’s approach to local community value creation and just transition is to strengthen the societies and communities where we operate. The way we do this differs from country to country and between communities. 

Our main contribution is generated from our operations through production and purchase of goods and services, direct and indirect job creation, and tax payments. We also engage in capacity building through targeted programs, to develop the competence of groups and individuals. In developing our Just Transition Framework, we have looked at the communities where we have the largest presence, as well as communities which are uniquely exposed to just transition challenges, to prioritize our work. Some of these at-risk communities, face challenges related to poverty and inequality, physical climate change and challenges related to decarbonization efforts changing the nature of jobs and required skills in communities. 

While our approach to supporting resilience varies depending on the local context, a common factor is our partnership approach, working with local partners with strong knowledge of the local context, as well as strong engagement with local community representatives.

Skills for the future

A risk associated with decarbonization efforts is that social inequalities increase as new technologies introduce the need for a different type of skillset or bring other changes to the labor market. To address this, Hydro’s Just Transition Framework includes a focus on ensuring that people have the necessary skills and jobs for the future low-carbon economy. Hydro’s ambition is to equip 500,000 people with essential skills for the future economy by 2030. The insight from measuring the people reached and the impact of its initiatives make Hydro better equipped to select and execute future initiatives with a positive impact. In 2023, Hydro reached more than 40,000 people, which sets the total number reached to 197,000 people since 2018. Hydro is on track to reach 500,000 by year-end 2030.