Regulatory obligations, changes in climate negotiations, technological innovations or even new expectations of employees: CSR is redefining the rules of the game for companies. In this article, we decipher the key topics of the moment, such as the impact of CSRD on SMEs, the mixed results of COP29, or even advances in the ethics of AI.
“SMEs, don't wait to set up reporting!”
In an op-ed that he addressed to Echos, Antoine de Riedmatten, Chairman of the Management Board of In Extenso, urges SMEs to get ahead of future regulatory obligations in terms of extra-financial reporting. Indeed, the CSRD will come into force in 2025 for large companies and listed companies: this will not be without affecting SMEs.
He says that a “trickle-down effect” will impact the entire value chain, since large companies affected by reporting obligations will require sustainability information from their smallest customers and providers.
In other words, SMEs that are best equipped with sustainability reporting tools and whose CSR information systems are the most efficient will then obtain a competitive advantage over their competitors on the one hand, but also with investors and banks on the other.
COP29: a final agreement at low cost?
Concluded In extremis In Baku, the final agreement of the 29th Climate Conference of Parties sets an amount of 300 billion dollars annually by 2035 from countries in the North to countries in the South to support their transition. The latter strongly criticized this amount, which was considered too low. The Indian delegate even castigated a “lamentably low” and “derisory” sum.
This criticism is due to the climate debt that the countries of the South blame those of the North for having contracted with them in previous decades, and that they must therefore repay. In other words, that the historical perpetrators of climate change impose a series of climate risks on countries that then need exceptional means to protect themselves from them.
Finally, the amount of 300 billion represents only a budgetary effort of 7% “if we take into account global economic trends in terms of inflation and GDP per capita by 2035”.
COP29: the mixed results of the negotiations
The two weeks of negotiations at COP29 resulted in a financial agreement, which was highly criticized, which should not, however, overshadow the other events of the climate summit.
First, the historic adoption of rules on a carbon credit market that is “open to countries and businesses”.
Second, the carbon emissions mitigation project, launched at COP27, does not seem to have changed much. In particular, it was held back by a coalition of countries, led by Saudi Arabia, which refused to review the results of COP28 and the mention “exit from fossil fuels” in the agreements.
Finally, the evolution of human rights in terms of gender and gender identity has been held back by the most conservative states such as the Gulf countries and Russia.
Towards a renegotiation of European sustainability regulations?
CSRD, CSDDD and green taxonomy are in the crosshairs of the European Commission, which is considering so-called “omnibus” legislation to modify certain points. This regulatory triangle constituting the European Green Deal, which is supposed to guarantee a series of social and environmental rights, is therefore living under the threat of weakening.
This dynamic is justified by the Commission as a “simplification” measure aimed at reducing bureaucracy in business and “reporting expenses”, affirmed Ursula von der Leyen.
Criticized by lobbies, questioned by the Draghi report, and denigrated by the French executive, European sustainability regulations are very likely to wither away, which will certainly hamper the achievement of the social and environmental ambitions of the European economy.
For a common governance framework for sustainable European companies
In an op-ed at World, the three CSR players, Olivier Favereau, Emery Jacquillat and Martin Richer, plead in favor of a common framework to adapt a response to the simplification needs identified by the Draghi report and requested by European employers, while maintaining ambitious social and environmental objectives.
They propose the recognition of a “company status” throughout the EU, which would combine the CSR achievements of the various Member States:
- The mission society model (Latin Europe)
- The co-determination model, in terms of corporate governance (Germanic block)
- The CSRD and the contributions of European works councils (Community law)
An international fund against climate disinformation
UNESCO, the Brazilian government and the United Nations are working jointly to implement a global fund to combat climate misinformation. With a target of 10 to 15 million dollars over 36 months, it should be administered by UNESCO, which will allocate grants to NGOs.
Contributing states will thus make it possible to fund surveys on the integrity of climate information, content and awareness-raising campaigns.
This is a welcome initiative in a context of renewed climate scepticism, at least in France, according to the latest barometer published by Ademe (a third of French people). But also, more generally, with the arrival at the top of the American elections of a president who sees climate change as a “scam”.
European Summit for an Ethics of AI
This year, the 7th edition of the Sophi.a Summit, European artificial intelligence summit, is devoting part of its thinking to the ethical question. Indeed, AI will undeniably become central in key sectors of the economy, but also of political life (such as justice). Therefore, it is necessary to design and deploy AI systems in accordance with “fundamental principles of democratic societies”.
The autonomy of computing and managing a large quantity of data raises the question of the safeguards to be maintained around AI. In this case, 3 main work priorities are identified:
- Algorithmic biases and discriminations
- Transparency and explainability
- Autonomy and responsibility
The Sophi.a Summit will present a series of initiatives and proposals to respond to these challenges in an applicable way, which always makes it possible to consider ethics as a driver of innovation.
Plastic Pollution Treaty: Blocking Oil States
The United Nations International Negotiating Committee on Plastic Pollution is conducting talks on the occasion of its 5th session, which is taking place in Busan, South Korea. While the discussions aim at the signing of a binding treaty by the more than 170 participants, some twenty states whose economies are very dependent on oil production are blocking.
Indeed, two positions seem to emerge: those who want to oversee the entire “life cycle” of plastic, from its production to its recycling. While states such as Saudi Arabia, Iran or Russia are campaigning for the reduction of pollution by improving the design, recycling and management of plastic waste.
In other words, a handful of countries are refusing the prospect of reducing plastic production, which is slowing negotiations considerably. The deadline for reaching an agreement is Sunday, December 1.
Fast fashion: double climate and economic threat
THE NGO Friends of the Earth has published a report that highlights the threat that fast fashion giants pose to the French textile economy. In addition to the ecological damage (already widely documented) of this mode of production, the NGO highlights two economic elements: the destruction of jobs and unfair competition.
The report mentions “nearly 300,000 jobs” destroyed by the fast fashion industry, as a result of the massive relocations of the French textile industry since the 1990s. A real paradox, notes the NGO, when we know that “the quantity of clothing consumed has doubled” in the last 40 years.
The volumes sold by French retailers tend to stagnate, while textile giants, from Zara to Shein, show increases in their business volume of 70 to 116%.
The Climate Quitting, a new reason for employees to resign
Climate resignation, sometimes announced with a bang online, is the decision of an employee to leave his company because it would not be “not aligned with its environmental beliefs”.
In this regard, the consulting firm Site engineering conducted a study in 2023 concerning these “conscious resignations”, showing that 68% of French respondents had already considered resigning due to a gap between their beliefs and the values of the company. More impressively, the study states that 34% would have acted (without specifying the precise reason).
Thus, corporate social and environmental responsibility also appears to be an HR challenge in retaining talent within teams. In addition, promoting a work environment where employees are aligned with the values of the company is an additional source of commitment, numerous studies show.
The sources
Les Echos “Opinion | CSRD: SMEs, don't wait to set up reporting!”
Les Echos “COP29: an agreement that accentuates the division between North and South”
Novethic “Assessment of COP29: the defeats that marked the summit”
Novethic “CSRD, CSDDD and green taxonomy: European sustainability regulations could be renegotiated”
Le Monde “A European framework for responsible companies committed to the ecological transition”
Youmatter “A new global fund against disinformation”
CSR Magazine “Sophi.a Summit: Understanding the ethical challenges of tomorrow's AI”
Novethic “Plastic treaty: a handful of oil countries are blocking any progress”
Sustainable news “Fast fashion, a vital threat to the French textile industry, according to an NGO”
Le Monde “In silence or with a bang, the subtle art of resignation”
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