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CSR news of 22/07/2024

Find all the CSR news for the week of July 22 to 26, 2024.

Pierre Poirmeur

Co-founder and CEO of Beaver

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This week, in CSR news, Havas lost its B-Corp certification after signing a contract with Shell, which illustrates the importance of strict criteria for CSR labels. Meanwhile, an INSEE study shows an increase in women entrepreneurs, good news, yet disparities persist.

The Paris 2024 Olympics rely on social and solidarity economy companies for a sustainable approach, despite some controversial sponsors.

And finally, the energy consumption of data centers in Ireland and the impacts of climate change on productivity and French public debt highlight current environmental challenges.

Find all the CSR news.

When a polluting contract causes you to lose your CSR certification

The advertising and consulting group Havas recently lost its B-Corp certification, which is supposed to reward companies committed to initiatives with a positive impact. However, following a contract signed with the oil giant Shell, four subsidiaries of the group lost their certification.

Consequence: “All Havas divisions are now ineligible for the label.” This decision by B-Lab, which manages the label, marks the desire on its part to protect the credibility of its certification. Thus, these CSR labels cannot be reduced to their sole dimension of responsible certification, but have a real strategic and reputational dimension.

B-Lab announces that it wants to deepen this dynamic by strengthening its certification criteria. The question is therefore asked: will the initiative of this labelling giant upset the entire sector?

Women are doing more business than before

INSEE has published a study that indicates an encouraging increase in the proportion of women starting businesses since 2014. In fact, in 2022, 4 out of 10 businesses created were created by women. It was 35% in 2018, and 32% in 2010.

However, the situation is unbalanced since women represent nearly half of the French working population. In other words, they remain less willing than men to start a business.

In addition, female entrepreneurship is largely correlated to the observed sector of activity. Women are the majority in:

  • The service sector (75%)
  • The human health sector and social action (73%)

This situation reveals the persistence of certain prejudices and frameworks of sexist representations in society.

AI and CSR: what synergies?

According to Workiva, which conducted a survey on this subject, 82% of CSR professionals believe that AI “will make their lives easier in the next five years.” From extra-financial reporting to the rationalization of resource consumption, artificial intelligence could become an essential tool for CSR work.

The predictive capacity of AI would allow companies to better anticipate demand in order to limit overproduction and waste, says Charlène Dupont, data scientist manager and CSR manager at Avisia.

The other element that is often mentioned is the completion of administrative reporting tasks. With the 1200 data that CSRD requires, a processing tool as powerful as AI is the promise of time savings and productivity to free up time for CSR managers to work hard.

However, it should be borne in mind that it is only a tool, and that AI alone cannot solve the problems posed to businesses by the climate crisis.

ESS, a major partner of the 2024 Olympics

The Paris 2024 Olympics called on a large number of SSE companies, a sign of a desire to promote sustainable and responsible competition. To build the competition, more than 500 SSE companies were contacted.

For example, the company Le Pavé specializing in the recycling and valorization of plastic, has produced more than 11,000 bleacher seats made of recycled materials.

This evolution is in particular allowed by the Paris 2024 Social Charter, which requires the Olympic organizing committee to use VSEs/SMEs and SSE structures. In the end, they represent “more than 75% of suppliers”, as well as “36% of the value of works contracts” of the Olympic Construction Delivery Company (Solideo).

Sponsors not always responsible for the Paris Olympics

The Paris 2024 Olympic Games are presented as a sustainable and responsible edition of this international competition. However, despite political determination, the choice of some sponsors to finance the event leaves doubts about its social and environmental impact.

The biggest polluter of the 2024 Olympics is Toyota. According to New Weather Institute, the automotive giant would have emitted nearly 575 million tons of Co2 in 2022. That's more than the total carbon emissions of some countries!

The same goes for Samsung or Procter & Gamble, which accumulate millions of tons of CO2 emissions. “A striking example of 'greenwashing' that tarnishes the promise of greener games.”

In Ireland, data centers consume more than homes

The electricity consumption of data centers located in Ireland now represents “more than a fifth of the country's electricity”. A figure that exceeds the electricity consumption of all houses in the city.

Particularly energy-intensive, data centers consume more and more energy from year to year. Thus, they represent 5% of Irish national consumption in 2015, 18% in 2022 and 21% in 2023. Irish energy operators anticipate a confirmation of this trend, raising the question of the supply challenge that this will pose in the future.

This explosion in demand is essentially linked to the massification of the uses of artificial intelligence, which will lead demand to 30% of national consumption in 2030, according to the International Energy Agency.

The climate crisis worsens French debt according to the Court of Auditors

Last week, the Court of Auditors published a report on French public finances. In particular, she reserved a chapter to assess the costs and effects of the climate crisis on public debt.

According to his analysis, “the ratio between French debt and GDP could be 7.5 points higher in 2030”. This is why the Court is sounding the alarm and is also calling for “tempering” the idea of “green growth” in a position to reconcile ambitious transition policies and strong economic growth.

Another focus has been on extreme weather events, which are hampering productivity in an increasing number of sectors. Preventing employees from working, they reduce working time and In fine business revenues, which are necessary for the balance of the State budget.

Renewables will overtake coal in 2025

According to the expectations of the International Energy Agency (IAE), the quantity of renewable energy produced should exceed that of coal next year, on a global scale. This evolution reflects both a political surge in energy sustainability and the increasing dependence of our societies on electricity.

Thus, the IAE forecasts 35% production from renewables, compared to 30% from coal. Note that photovoltaics make up half of this set, and wind power makes up a quarter.

However, there is no expected decline in coal, which continues to account for a very significant portion of global production. In fact, India and China, two industrial superpowers, continue to rely heavily on coal.

Climate change and workplace productivity

“More than 70% of workers in the world face serious health problems linked to climate change”. The hot weather, which is primarily responsible for this situation, endangers the most exposed individuals: construction workers, agricultural workers or even those who work in the kitchen.

In France, between 14 and 36% of workers are exposed to hot weather (according to France Stratgie). In addition, the IRNS (National Institute for Research and Safety) states that above 33°C in the workplace, the temperature is a danger for individuals.

Finally, France Stratgie states that such working conditions have an influence on the physical and cognitive abilities of employees, which is not without consequences for their productivity: “from 24 to 26°C, productivity decreases”.

Towards Italian carbon-free steel

A historic agreement has just been signed between EDF and its Italian partners: an association that aims to make Italy the first nation to produce carbon-free steel. Another striking fact is the return to nuclear power in a country that had left it abandoned for 35 years.

To decarbonize the Italian steel industry, EDF and its partners plan to install small reactor models (known as “SMRs”) by 2030: the Nuward. This is good news for the carbon impact of this industrial sector, which represents a very important part of Italian carbon emissions.

Thus, this is a telling example of an approach that, while taking the decarbonization check mark, supports industry and the economic competitiveness of a strategic sector at the scale of a nation.

sourcing

Novethic “Havas loses its B-Corp certification after a contract with the oil tanker Shell”

Franceinfo “Four out of ten businesses created in 2022 were created by women, according to INSEE”

Carenews “Artificial intelligence at the service of CSR?”

Youmatter “Olympic 2024: The ESS takes on major projects”

RSE Magazine “Sponsoring: here are the hidden polluters of the 2024 Olympics”

Le Monde “In Ireland, the electricity consumption of data centers exceeds that of houses in cities”

Novethic “How the climate crisis is weighing on French debt”

L'Info durable “Electricity: renewable production should exceed coal in 2025”

Youmatter “How climate change affects working conditions”

RSE Magazine “Italy wants nuclear power from EDF to decarbonize its steel”

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