In this week's CSR news, we are going to talk about a hot topic, CSRD. We share with you the feedback of the first companies that are preparing for the CSRD through the C3D survey.
Another interesting subject is food with two short stories. The first on the report by the FAO (United Nations Food and Agriculture Organization) and the OECD, which indicates that ending food waste would prevent 153 million people from suffering from undernourishment! And the second, organic consumption is falling according to Crédoc...
Find all the CSR news in this article.
CSRD: 63% of businesses plan to recruit
The C3D (college of directors of sustainable development) carried out a survey on the impact of CSRD in companies. She interviews a panel of 85 representatives of major French groups concerned by the European standard.
The main figures that emerged from the survey are as follows:
- 63% plan to recruit to set up the CSRD (including 39% in full-time equivalent)
- 57% say they have already started their double materiality analysis
- 57% consider CSRD to be very expensive
The external support budget already committed by 53% of companies is between 50,000 and 200,000 euros. For 19% of them, it increases to more than €200,000.
Lufthansa raises prices to protest against environmental standards
The largest airline group in Europe announces an “environmental surcharge” directly applied to the price of its tickets. Thus, up to 72€ additional will be borne by the consumer as of January 2025. The company justifies the measure by “the increasing costs resulting from regulatory requirements.”
In other words, the sustainable aviation fuels imposed for 2025 or the end of free quotas on the European carbon market do not satisfy the company, which decides to impose the cost of environmental responsibility on its consumers.
“72 euros is just to rally users against environmental standards. It is a pure communication operation to put pressure on decision-makers.” Jérôme du Boucher, aviation expert at the NGO “Transport and Environment”.
Does good reporting mean good business transformation?
Companies are mobilizing to build sustainability reports that meet the new requirements of the CSRD. However, we can “do a very good CSRD report, without really moving your model towards sustainability” says Patrick d'Humières, a specialist in CSR management.
Thus, the question arises of the real transformative power of CSRD on business models. Indeed, in the absence of strong regulatory sanctions, there is no guarantee that the companies concerned by the reporting obligation adopt truly ambitious CSR policies.
To face this challenge, some specialists propose adopting differentiated taxation for the most committed companies, or even implementing sanctions to encourage them to take responsibility.
AI emits ever more GHGs
In a report, Google indicates that the growing needs of AI are generating a growing quantity of GHGs. Indeed, as time goes by, the computing and energy required to run servers and data centers keeps increasing.
Thus, in 5 years, Google's carbon emissions have increased by +48%, or 14.3 million tons of Co2, directly linked to its energy consumption. In other words, as a necessary tool for the growth of tech giants, AI is becoming a central issue in terms of their environmental impact.
However, Amazon, Microsoft and Google are committed to respecting ambitious carbon neutrality trajectories for 2030 or 2040. One of their common objective is to find an alternative to the large consumption of water, which is currently massively used to cool servers.
SBTi director resigns under pressure
The Science Based Targets initiative (SBTi), an international partnership that aims to promote the low-carbon transition of businesses, has announced the resignation of its managing director. Luiz Amaral reported his decision to the board of directors after 2 and a half years at the head of the initiative.
It is in a tense context of questions about the carbon compensation of companies that this resignation is taking place. Indeed, staff as well as climate experts criticized the management of the SBTi for their intention to allow companies to offset their emissions via carbon credits.
A controversy that opposes two visions of CSR: one that admits compensation to support companies in the decarbonization of their value chain, the other that affirms the need “to stop broadcasting from the start”.
Mission 2025: an international coalition for the environment
Public and private actors (companies, investors, mayors, governors, etc.) support the continuation of environmental efforts at a time when significant setbacks are being observed. Under the name Mission 2025, they have the ambition to “push states around the world to keep their promises and present climate commitments.”
This initiative is based on the observation that many countries or industrial and financial giants tend to abandon their climate commitments. Thus, Mission 2025 wants to refute defeatist arguments in favor of a discourse that conveys ambition.
The Energy Transitions Commission (ETC) recently said that the progress and falling cost of low-carbon technologies mean that “government climate plans could be at least three times more ambitious.”
Building futures compatible with planetary boundaries
Thomas Gauthier is a professor at emlyon business school and works on the impact of businesses on the construction of a sustainable world. He gives a column to Echos where he defends a truly ambitious business model that moves away from a purely financial logic in favor of a strategic consideration of global boundaries.
He pleads for businesses to take “radical decisions”, by putting environmental priority ahead of financial priority. Thus, corporate governance certainly needs to be transformed, as well as “the conscience of shareholders, managers, customers and employees”.
In short, leaders must renew their repertoire of actions to support the movement to transform business models and imaginations.
Halve waste to reduce undernourishment
The FAO (United Nations Food and Agriculture Organization) and the OECD have published a report which indicates that ending food waste from production to consumption would prevent 153 million people from suffering from undernourishment, but also reduce greenhouse gas emissions related to agriculture by 4%.
To achieve this result, it would be necessary to “halve food waste” by 2033. A very important part of the situation is attributed to overconsumption. Half of the losses concern fruits and vegetables, which keep less well and for less time.
International organizations argue that falling prices and increasing production should improve the food intake of the least economically endowed populations.
Organic consumption is on the decline
Crédoc (Research Center for the Study and Observation of Living Conditions) is publishing a study on the influence of sustainable purchasing criteria on food consumption practices. Their observation is clear: the declining interest of consumers in products that respect the environment and animal welfare.
Thus, between 2021 and 2023, the desire to consume organic products fell by 9%. They also identify a 5% drop in the number of consumers associated with the “committed” category.
Finally, the other major finding of their study concerns the standard of living of consumers who adhere to sustainable consumption: “the better off are more numerous” to be consumed organic. In fact, inflation and the gradual decline in interest in environmental issues are the two variables that weigh heavily on their findings.
2,500 air conditioners installed for the Olympics
Commitment not fulfilled concerning the air conditioning of the Olympic Village on the occasion of the Paris 2024 Olympics. Anne Hidalgo's promise did not withstand the pressure of the delegations.
Indeed, the sporting reason prevailed over the ecological reason, arguing the important recovery needs of athletes. Thus, 2,500 ephemeral air conditioners will be installed in some 7,000 rooms in the Olympic Village.
On top of that, some countries have even decided to bring their own air conditioning systems. However, they are encouraged to use only one per home, and to use only “class A” devices.
The sources
Carenews “Recruitment, business model, budget... The impact of CSRD on businesses”
Novethic “+72 euros for a ticket: is Lufthansa's environmental surcharge justified?”
Novethic “Will CSRD really be transformative?”
Sustainable news “Google's carbon emissions have increased by 48% in five years because of AI”
Stock exchange zone “The CEO of the Science Based Targets Initiative resigns”
Les Echos “Leaders facing the limits of the planet”
Sustainable news “Overcoming waste potentially means 153 million fewer undernourished people”
Carenews “Sustainable food purchasing is on the decline”
Reporterre “Paris Olympics: 2,500 air conditioners finally installed”
