Welcome to our summary of the latest news in the field of Corporate Social Responsibility.
G20: historic agreement to tax the ultra-rich
G20 finance ministers agreed to strengthen international taxation on billionaires. A project that aims to initiate cooperative measures on a global scale to finance the ecological and social transition. This would be a completely new approach both in terms of international governance and in terms of taxation.
The philosophy of this measure is to introduce progressive and fairer taxation, in order to strengthen the ability of states to tax the richest who often take advantage of tax loopholes to avoid taxes, as revealed by a report by The Institute of Public Policies in France.
For the time being, the states do not agree on the methods of implementing the initiative. However, a minimum tax of 2% on the 3,000 richest taxpayers would potentially bring in 235 billion euros per year (European Tax Observatory).
The 4 types of managers facing CSR challenges
Colette Ménard, scientific director within the Stim research collective, proposes a typology of managers according to their level of effort and risk taking in the face of CSR issues.
The optimizer: Have neither the will nor the need to adopt a CSR policy. Their objective is the optimization of profits.
The Performer : Only take risks that, after calculations, will pay off in the long term. Invest in R&D for financial purposes only.
The supporter : Are interested in CSR from a risk investment perspective, looking for new sources of growth rather than new ways to adapt their model.
The Game Changer : More rare, it is the entrepreneurs who “break established codes” by taking significant risks, and who completely renew value chains with innovative ideas and techniques.
CSRD: the difficult adaptation of companies to double materiality
Efrag (European Financial Reporting Advisory Group) recently published a report that analyses corporate compliance practices with the CSRD. It appears that the concept of double materiality, and in particular impact materiality, poses difficulties in adapting to the services responsible for the subject.
The innovation of the European directive is twofold materiality: both financial and also “impact” (on the environment, for example). According to the report, this “is more likely to be affected by the lack of specific data and methodologies”.
In other words, companies generally have to move forward in a certain vagueness, not having at their disposal the tools to collect the most relevant impact data reliably and effectively.
Thursday, August 1: the day of the overtaking
This Thursday, August 1, the Earth consumed all the resources it is able to produce in one year. The “biocapacity” of the planet, compared to the intensity of human productivity, provides the NGO Global Footprint Network the data that allows him to identify this “overrun day”.
The date when human activities deplete Earth's biocapacity has fluctuated a lot since the 1970s, when it was still December 29. This year, it is 1 day lower than in 2023.
This evolution reflects the inertia of the global economic production system and the difficulty that states have in regulating it. Despite active determination and sometimes very ambitious political measures, global resources remain overexploited, which has an impact on ecosystems and the climate.
Protecting biodiversity means protecting humanity
The scientist and ecologist Sandra Lavorel, 2023 CNRS gold medalist, gives an interview to World where she discusses the essential role of biodiversity in the well-being of human societies. Indeed, the major sectors of food production are strongly impacted by a loss of biodiversity: fishing and agriculture for example.
The scientist evokes the “sixth crisis of biodiversity extinction”, for which humans are 80% responsible because of their intensive use of soils and seas.
Finally, she affirms that without rich biodiversity we will encounter real difficulties in the future in properly feeding all humans. “It will be more difficult and more expensive to produce food”, which is also a public health challenge.
Are carbon credits ineffective?
The SBTi (Science Based Targets Initiative) spoke out about the ineffectiveness of carbon credits in fighting corporate emissions. This position comes in a controversial context, where SBTi employees as well as NGOs criticized him for considering integrating the use of carbon credits into their taxonomy.
Thus, they position themselves vs the use of carbon credits, considered “ineffective” and seen as potential “risks” of slowing down the transition of companies towards neutrality.
At the heart of this condemnation lies a strong criticism of the carbon compensation mechanism, which is likely to turn into real greenwashing. Especially since the scientific consensus has been clear for a long time: “carbon credits should not be used to offset fossil emissions” (Doreen Stabinsky, member of the SBTi Technical Council).
The heatwave is coming to France... during the Olympics!
While France seemed to be escaping the heat waves that hit most countries in the world, it was during the Paris 2024 Olympic Games that the heatwave decided to arrive. A danger for outdoor workers as well as for athletes, subject to sometimes extreme weather conditions.
A recent report by the International Labour Organization (ILO) concludes that, all over the world, the number of workers exposed to excessive heat is increasing.
In this same report we learn that the “heat stress is an invisible and silent killer that can quickly cause illness, heat stroke, or even death”. This is a real adaptation challenge for companies to take up, in order to protect their employees from such professional risks.
Slight increase in the employment of people with disabilities
Agefiph, an association that works for the professional integration of disabled people, has published its Employment and Disability Observatory, a dashboard updated annually in collaboration with INSEE.
Their first observation is that despite a slowdown in economic activity, the unemployment rate for people with disabilities is resisting (12%), and that their activity rate (45%) and employment (39%) are up slightly compared to 2022.
However, the recruitment rate of people with disabilities has decreased in 1 year (-6%). In comparison, for the entire population this rate is -4%. However, this decrease is offset by their good employment stability.
These figures reflect the encouraging work carried out by society and businesses for the professional integration of all, although efforts remain to be made.
Revolution in the battery recycling method
Scientists at the American University of Rice, specializing in chemistry and materials science, have revolutionized the way lithium batteries are recycled. Thanks to their innovation, we could now recover up to 98% of the precious metals contained in these energy reservoirs!
It is with a Joule flash heating (FJH) method that brings used batteries to 2,500 Kelvin that a chemical reaction separates the materials cleanly, and at a lower energy cost.
With the explosion in demand for lithium-ion batteries, the democratization of such a technical advance would significantly reduce their environmental impact. “More efficient and less expensive”, this method should quickly gain authority around the world.
Businesses determined to better finance sustainable solutions
Sony Professional Displays and Solutions Europe has published a study that highlights the very favourable willingness of businesses to invest in green solutions. While the study mainly questions the will of companies to adopt them, and not their effective commitment, this at least reflects an evolution in the priorities of the business world.
Indeed, the results show that the majority of French and European companies would be ready to pay an additional 20% for “audiovisual products manufactured in a sustainable manner”. A figure that rises to 50% for almost half of them.
Finally, the study reveals that 38% of the companies surveyed take sustainability issues into account “from the selection of suppliers and the negotiation of prices”. An encouraging figure in a context of increasing normative and economic pressures.
The sources
Novethic “Taxation of the ultra-rich: an unprecedented agreement at the G20”
Executive letter “Faced with the ecological transition, discover 4 types of leaders”
Novethic “CSRD: the difficulties of impact materiality pointed out by Efrag”
The sustainable news “Overcoming Day”: this Thursday, humanity consumed everything that the Earth can produce in one year”
Le Monde, Interview with Sandra Lavorel on July 27, 2024
Sustainable news “Carbon credits deemed “ineffective” by the most important corporate climate objective label”
Novethic “The heatwave is affecting the Olympics, but also on workers, who are more and more exposed”
Carenews “The employment rate for people with disabilities is up slightly”
RSE Magazine “Batteries: 98% of metals will be able to be recycled!”
RSE Magazine “Businesses ready to pay a high price to be greener”
