Introduction
COP29, which opened on November 11, 2024, came as a major surprise with the acceleration of the process of creating a global carbon credit market. An initiative that, although promising on paper, is already raising concerns about the risks of fraud and abuse.
While the French Minister for Ecological Transition, Agnès Pannier-Runacher, decided not to participate in this event, a decision marked by geopolitical tensions with Azerbaijan, the impact of this conference on international cooperation in the field of ecological transition remains uncertain. The COP29 discussions are just the tip of a much larger iceberg of ecological and ethical challenges facing businesses and governments.
Discover all the news of the week in our article.
A coup at COP29: an agreement on carbon credits
The 29th Conference of the Parties on Climate Change (COP29) opened on Monday 11 November. The COP presidency caught delegates by surprise by speeding up the process of voting on the rules for the creation of a global carbon credit market. This approach makes it possible to avoid reopening the deliberations.
Thus, the very controversial issue of carbon credits, for which no agreement had been reached during previous editions of the COP, was presented “take it or leave it” to the nearly 200 participating states.
The cavalier conditions under which these agreements were presented pose a risk to the implementation of the carbon market. Indeed, many specialists, representatives of NGOs and associations highlight the risks of fraud and abuse, which are already well known to European public authorities.
The Minister for Ecological Transition will not go to COP29
Agnès Pannier-Runacher announced that she would not be attending COP29 in Baku, Azerbaijan. Against the background of diplomatic tensions between France and Azerbaijan, the minister accused President Ilham Aliev of instrumentalizing “the fight against climate change for an unworthy personal agenda”.
While this decision largely relates to geopolitical and diplomatic issues, it is not neutral coming from a minister for ecological transition. Indeed, the Azerbaijani president is very enthusiastic about fossil exploitation, speaking of natural resources (including gas, coal and oil) as “gifts from God”.
In addition to weakening bilateral relations between the two countries, this situation weakens international cooperation on ecological and energy transition policies.
Is ethics at the heart of employee concerns?
The Institute of Business Ethics (IBE) conducted a major survey on work ethics among 12,000 employees in 16 countries, including France. The survey highlights some recent developments in ethical practices and representations within French companies.
In particular, the survey shows that in France more than elsewhere, the opinion of employees has deteriorated concerning the ability of their hierarchy to engage in ethical approaches.
Simone de Colle, professor of business ethics and strategy at IÉSEG, says that “French employees are more and more sensitive to ethics”. On the one hand, they are more aware of ethical standards within their organizations. On the other hand, the training they receive in this field makes them better prepared to understand how these tools work and the role of these tools.
After the CSRD, the duty of vigilance under fire from critics
25 European lobbies and associations for the defence of interests have signed an open letter against the CSDDD, European due diligence directive. Among them, Business Europe considered to be the “European medef”. An additional attack on approaches to regulate the economic and commercial practices of European companies.
Indeed, after the CSRD and the law on imported deforestation, the CSDDD intends to hold companies to account and take measures to prevent violations of human and environmental rights throughout their value chain.
The arguments put forward by these actors worry those of the ecological and social transition. Once again, this is a rhetoric of “simplification” and “the alleviation of burdens” associated with CSR policies.
What is the government planning to decarbonize businesses?
The revision of the National Low Carbon Strategy (SNBC) is currently under consultation. It is a governmental roadmap for the energy transition of the French economy and society. A “draft guide” for “voluntary enterprises” has been made public to this end.
The objective of SNBC is to reduce French GHG emissions by 50% between 1990 and 2030. However, an overwhelming majority of companies concerned by the obligation to publish a BEGES (carbon footprint) are not in compliance. A situation that heralds bad omens for their compliance with European regulations (CSRD, CSDDD etc.).
This guide for businesses offers them to choose “3 levers” relevant to their main emissions in order to adapt their low-carbon strategies.
What is the global footprint of French companies?
According to calculations by the Goodwill Management-Baker Tilly agency, each year French companies consume the equivalent of 3 planets. Even more remarkable, the activity of the companies involved also goes beyond global limits.
Based on the definition of a “quota” to be respected for each country, the agency showed that France “exceeds its global limit quotas by a factor of 3”, especially when it comes to water and climate.
These calculations, reported to 50 of the most committed companies, show that they also do not respect the planet's limits. Maybe that means “CSR as we practice it today is insufficient”. An additional argument in favor of supporting regulatory dynamics that promote the social and environmental commitment of companies, which have been threatened recently.
Update on solidarity finance
The week of November 11 to 18 is dedicated to solidarity finance. An opportunity to recall the principles and definitions that surround this mechanism for financing structures “of high social and environmental utility”.
Solidarity finance approaches aim to transpose the logic of SSE to financial markets. Thus, it proposes a fundamental paradigm shift: social and environmental impact as an objective, rather than just profit.
Last year, solidarity finance accumulated an outstanding amount of 30 billion euros, which generated 680 million euros in solidarity financing.
Solidarity finance differs from Socially Responsible Investment (SRI) in that its shares are not listed on the stock exchange. It is even supported by “sharing” mechanisms, which consist in donating a portion of the profits to associations and organizations with an impact.
Renewable energies are becoming ever more important
The International Energy Agency (IEA) and the International Renewable Energy Agency (IRENA) recently published reports that confirm the rise of renewable energies in the global energy mix. A growth that presages advantageous commercial dynamics for the sector.
Indeed, according to the IEA, 50% of global electricity production should be provided by energies from renewable resources in 2030. Such a development can be explained in particular by the increasingly attractive costs of renewable energy on the energy markets.
Finally, we note that nearly 16.2 million people are employed in the renewable energy sector. An additional indicator of the vitality of the market.
The most modest are more exposed to heat islands
A recent INSEE study highlights that the most modest households living in working-class neighborhoods are more affected by heat island phenomena in cities. Indeed, “dense and not very vegetated”, these neighborhoods are less well suited to it.
For example, according to satellite data collected in 2017 by INSEE, between the richest 10% of households in Lyon and the 10% least endowed, the heat gap was 0.41°C.
The Institute of Statistics states that this is not necessarily a public health issue in normal times, but that during severe heatwaves this can lead to a certain number of inequalities in adaptation. In other words, the poorest households, generally less equipped and with limited opportunities to change cities from time to time, experience a lack of equality in the face of risk.
These employee groups committed to the transition of their businesses
120 companies in France, including more than 50% from CAC40 and major consulting firms, have seen the birth of employee groups in their ranks. The latter have the ambition to change practices internally and to make their colleagues and managers aware of social and environmental issues.
Some of these groups bring together up to 2,000 employees. Climate murals or workshops to raise awareness about eco-friendly actions also allow companies to include these approaches as training and skills development.
However, faced with the inertia of their organizations and the slow pace of change implementation, some young employees face real discouragement, even frustration, which would sometimes even push them to resign...
The sources
Novethic “COP29: the agreement on the carbon credit market creates controversy”
Novethic “The European duty of vigilance threatened by the European Medef”
Youmatter “SNBC: the government's ways to decarbonize businesses”
Youmatter “French companies consume the equivalent of 3 planets”
Carenews “By the way, what is solidarity finance?”
Novethic “The renewable energy boom continues in the world, and creates more and more jobs”
Le Monde, Tribune of November 14 by Stéphan Pezé and Christelle Théron
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