CROSS-CUTTING ENABLER
Social Sustainability
Not a separate silo, but a lens that applies across all layers.
Human rights, just transition, community, labour.
In 30 Seconds
Social sustainability is fundamentally different from environmental boundaries. It doesn't sit at one layer – it spans all of them.
- ●Human rights depend on stable planetary systems (L1)
- ●Communities live in landscapes and depend on ecosystem services (L2-L3)
- ●Workers are affected by policy and governance decisions (L4)
- ●Stakeholders are engaged through corporate action (L5)
The key insight: You cannot achieve environmental sustainability without social sustainability. The transition must be just, or it won't happen at all.
Why Social Is Cross-Cutting
Environmental boundaries can be measured and mapped to specific layers. Social sustainability is different – it's about how we act, not just what we achieve.
Environmental Boundaries
- Measurable thresholds (ppm, hectares, tonnes)
- Physical systems with defined limits
- Can be mapped to specific layers
- Science-based targets possible
Social Sustainability
- Rights-based and relational
- Context-dependent outcomes
- Spans all layers simultaneously
- Process and outcome intertwined
This is why we present social sustainability as a cross-cutting enabler rather than forcing it into the 5-layer model. It's a lens that must be applied at every layer.
How Social Themes Manifest Across Layers
Social sustainability isn't separate from environmental work – it's embedded in every layer.
L1: Planetary Foundations
Human rights depend on stable planetary systems
Key Themes
- • Climate justice and intergenerational equity
- • Environmental racism and disproportionate impacts
- • Right to a healthy environment
- • Indigenous peoples' rights to traditional territories
The Connection
Planetary boundary breaches don't affect everyone equally. Climate change, biodiversity loss, and pollution disproportionately impact vulnerable communities. Environmental justice is inseparable from planetary health.
L2: Landscapes & Jurisdictions
Where communities live and work
Key Themes
- • Indigenous rights and traditional knowledge (FPIC)
- • Community engagement and consent
- • Local livelihoods and benefit-sharing
- • Land rights and tenure security
- • Just transition for affected workers and communities
The Connection
Landscapes are not empty spaces – they're home to communities with rights, knowledge, and livelihoods. Conservation and development projects that ignore this fail. FPIC (Free, Prior and Informed Consent) is not optional.
L3: Ecosystem Services
How value flows to people
Key Themes
- • Equitable distribution of ecosystem benefits
- • Cultural services (often community-held)
- • Fair trade and ethical sourcing
- • Access to natural resources
- • Payment for ecosystem services design
The Connection
Who benefits from ecosystem services? Carbon credit revenue, biodiversity payments, and PES schemes must ensure benefits reach local communities and custodians – not just project developers and intermediaries.
L4: Policy & Governance
The rules and safeguards
Key Themes
- • Social safeguards (IFC Performance Standards)
- • Human rights due diligence (CSDDD, mHRDD)
- • Labour standards in supply chains
- • CSRD social standards (ESRS S1-S4)
- • Just Transition frameworks
The Connection
Regulation increasingly requires social due diligence alongside environmental. The EU's Corporate Sustainability Due Diligence Directive (CSDDD) makes human rights risk assessment mandatory. Social standards in CSRD (ESRS S1-S4) are not optional add-ons.
L5: Corporate Action
Where strategy meets people
Key Themes
- • Workforce transition planning
- • Stakeholder engagement and materiality
- • Social impact measurement
- • DEI and workplace sustainability
- • Supply chain labour conditions
The Connection
Net zero targets affect workers. Transition plans must include workforce reskilling, stakeholder dialogue, and community impact assessment. A decarbonisation strategy that ignores people will face resistance and fail.
Key Frameworks & Standards
Human Rights
- UN Guiding Principles (UNGPs)
The authoritative global standard on business and human rights. Protect, Respect, Remedy framework.
- OECD Guidelines for MNEs
Due diligence recommendations for responsible business conduct.
- EU CSDDD
Mandatory human rights and environmental due diligence for large companies.
Labour Standards
- ILO Core Conventions
Fundamental principles: freedom of association, forced labour, child labour, discrimination.
- ILO Just Transition Guidelines
Framework for greening economies while ensuring decent work and social inclusion.
- SA8000
Social accountability standard for decent working conditions.
Disclosure Standards
- CSRD / ESRS S1-S4
S1: Own workforce, S2: Workers in value chain, S3: Affected communities, S4: Consumers.
- GRI 400 Series
Social topics: employment, labour relations, health & safety, training, diversity, human rights.
- SASB
Industry-specific social metrics for financially material issues.
Just Transition
- Paris Agreement Preamble
“Taking into account the imperatives of a just transition of the workforce.”
- Climate Action 100+ Net Zero Benchmark
Includes just transition as assessment criterion for corporate climate action.
- Grantham Institute Principles
Eight principles for a just transition in the financial sector.
The Convergence
These frameworks are converging. CSRD requires reporting on both environmental AND social standards. CSDDD mandates due diligence across both. The “E” and “S” of ESG are no longer separable – they must be addressed together.
The Business Case for Social Sustainability
Risk Management
- • Supply chain disruption from labour disputes
- • Reputational damage from human rights violations
- • Regulatory non-compliance penalties
- • Project delays from community opposition
Licence to Operate
- • Community acceptance for projects
- • Worker engagement and retention
- • Social licence from stakeholders
- • Regulatory goodwill
Value Creation
- • Workforce productivity and innovation
- • Brand value and customer loyalty
- • Access to talent
- • Investor confidence (ESG ratings)
The Just Transition Imperative
Net zero commitments will fail without social buy-in. Workers in carbon-intensive industries need reskilling pathways. Communities dependent on fossil fuels need economic alternatives. Investors increasingly assess just transition plans alongside decarbonisation targets. This is not philanthropy – it's strategic necessity.
The Pandion View
We don't treat social sustainability as a separate workstream bolted onto environmental strategy. We integrate it from the start – because that's how sustainable outcomes actually work.
Every environmental intervention has social dimensions. Every climate target affects workers. Every conservation project involves communities. Understanding this – and acting on it – is what separates effective sustainability from greenwashing.
When we help clients with TNFD assessments, we include community dependencies. When we develop transition plans, we include workforce implications. When we design carbon credit projects, we ensure benefit-sharing mechanisms. The “S” is not optional.
Where To Go Next
Landscapes (L2)
Where communities live – the geography of social sustainability.
Corporate Action (L5)
Where workforce transition and stakeholder engagement happen.
Policy & Governance (L4)
The regulatory landscape: CSDDD, CSRD S-standards, safeguards.
Enabling Systems
Other cross-cutting enablers: standards, certification, actor coordination.
Sources: UN Guiding Principles on Business and Human Rights, ILO Core Conventions, ILO Just Transition Guidelines, CSRD/ESRS, EU CSDDD, GRI Standards, Climate Action 100+. This content is for educational purposes. For specific guidance, consult appropriately qualified professionals.