What happened in the CSR news for the week of August 12 to 16, 2024?
First, the United Kingdom announces legislation to better regulate providers of ESG ratings by 2025, the European Commission answers all your questions on CSRD through an FAQ, France, a major consumer of plastic, is being fined 1.5 billion,...
Find the 10 CSR news of the week between social and environmental challenges!
Regulating ESG ratings: the United Kingdom takes the lead
Legislation to better regulate providers of ESG ratings is planned for 2025, announces the British government. Its two priorities are the transparency of scoring procedures and the clarification of methodologies. In a context of high regulatory inflation, this is a significant political choice to position itself as a major player in sustainable finance.
Designed to be in agreement with the International Organization of Securities Commissions (IOSCO), this recommendation has an international ambition. Thus, this would make it possible to better target the sustainable investment of economic actors around the world.
This recommendation will be managed by the Financial Conduct Authority (FCA), a stock exchange regulatory body, independent of the British government.
The FAQ on the CSRD from the European Commission
A Frequently Asked Questions (FAQ) has been put online by the European Commission in order to provide support to the 50,000 companies concerned by the implementation of the new extra-financial reporting rules. An initiative that attests to the complexity of CSRD and the need for professionals to refer to an official source of information.
To carry out reliable and effective sustainability reporting, it is essential to have a clear representation of Europe's regulatory expectations. This FAQ is intended to be comprehensive and provides practical advice on the use of European Sustainability Reporting Standards (ESRS).
Finally, it decides on the crucial issues of audits and insurance. “detailing requirements for the approval and training of auditors, as well as the accreditation of independent insurance providers”
Workers at the world's largest copper mine want 1% of dividends
In northern Chile the workers of the largest copper mine in the world are on strike. They want a better distribution of value, up to 1% of the dividends paid to foreign investors. During the negotiations, the latter benefit from the very strong pressure that their strike exerts on the entire global copper supply chain.
The situation is delicate for the majority shareholder of the mine, as the workers' union includes “98% of front-line workers”, without whom production cannot take place.
A 10-day strike would have an impact of 250 million in profits for the majority shareholder. In addition, other mines are starting strike movements around the Escondida mine. The risk of a massification of the social movement and of global economic destabilization is therefore very real.
New setback for the carbon credit market
The Integrity Council for the Voluntary Carbon Market (ICVCM) has developed a new “high integrity label”, which increases the requirements for carbon credits. In this framework, 1/3 of credits related to renewable energies on the voluntary market “would not be reliable enough”.
In other words, 32% of the compensation market is blacklisted because of its lack of credibility. Indeed, specialists are concerned about the lack of additionality of certain carbon credits linked to renewable energies.
Indeed, additionality is the principle according to which “the sale of carbon credits must finance projects that could not have existed without this financing”. However, the ICVCM notes a real lack of methodological rigor in the evaluation of the additionality of carbon offset projects. A very demanding approach that aims to build a market free of all abuses and excesses, in favor of an ecological transition of high integrity.
The Bolloré group in turmoil for its human rights abuse
The ethical council of the Norwegian sovereign wealth fund has launched a field investigation into the activities of the Bolloré Group in palm oil plantations in Cameroon. Of “serious violations of human rights” were found at the end of the investigations and the Norwegian fund now recommends group exclusion.
The alleged facts are as follows:
- 2/3 of the 7000 workers are paid below the legal minimum,
- 80% are living in substandard homes,
- Sexual and sexist violence.
NBIM, the Norwegian asset management company, refused the recommendation to exclude him, giving him 2 years to rectify the situation. A decision that leaves one with doubts when we know that these facts have been blamed on the Bolloré group for almost 15 years now.
What is the status of the American Inflation Reduction Act?
It has been 2 years since the Inflation Reduction Act (IRA) was signed into law by President Biden. In particular, it aimed to fight inflation by producing massive amounts of energy, with priority given to green energy. The question of its effectiveness then arises: did it promote sustainable foreign investments in the US?
The Americans, through massive investments in energy complexes, are conducting a major campaign of seduction among foreign investors, especially European ones. Their main argument is access to clean and “almost inexhaustible” energy.
However, of the 230 billion in state investments in 114 projects under the IRA, 40% are overdue or suspended (Financial Times). Moreover, American investments remain much lower than European ones, although they are up sharply.
The ambiguity of the IRA's record is therefore under debate, “between bluff and reality”.
France, a major consumer of plastic, is fined 1.5 billion
France is one of the largest European consumers of plastic, with an average of 70 kg per inhabitant. A figure that is increasing year by year. Thus, Europe has ordered France to pay a fine of 1.5 billion euros for its consumption in 2023 under the “plastic tax”.
The goal of 40% recycled plastic waste set by Europe is far from being reached: we only recycle 23% of ours. A score much lower than that of other European countries such as Slovakia, Belgium or Spain, which exceed 50%.
Two issues are at the heart of better taking into account the overconsumption of plastic. First, industrial infrastructures adapted to the territory. Second, the integration of this question into the CSR policies of companies that must learn to get rid of their “dependence on plastic”.
A new UN index to help small states cope with hazards
The UN has launched a “Multidimensional Vulnerability Index” (MVI) which, in addition to GDP, makes it possible to measure the needs of small island developing states more fairly. The latter are too rich to benefit from aid, and yet too exposed to the impacts of climate change to not need it. A situation that has been debated for years now.
This MVI index aims to prevent exogenous risks linked to the dependent situation of island states. In particular, its objective is to serve as a tool for development banks and international funders to help these states.
Fatumanava-o-Upolu III Dr. Pa'olelei Luteru, Ambassador of Samoa to the UN, shared his hope that this clue will initiate “a new way of thinking and acting in the area of development”.
When mega-fires emit too much CO2
An unprecedented study published by Earth System Science Data, an international research journal, concludes that between March 2023 and February 2024, giant fires emitted 8.6 billion tons of CO2. To get there, up to 3.9 million km2 of charred forests.
During this period, these mega-fires mainly affected large regions of Canada and the Amazon. Canadian fires are believed to be the cause of “nearly a quarter of global emissions”. An ecological disaster that, in addition to massive emissions, is ravaging ecosystems and forest biodiversity.
According to the authors of the article, climate change greatly favors the multiplication of these mega-fires. The periods of drought helping, as well as the increase in the risks of man-made outbreaks.
Breaking with the idea of a “punitive” ecology
Le Monde conducted the survey, meeting the inhabitants of Cluny and its municipality, to better understand how to initiate an ecological transition “without hampering” a population that is often refractory to the idea of a transition perceived as the fruit of disconnected city centers.
The first strategy is to calm the debate by banishing the divisive terms of “sobriety” or “ecology” that can give the feeling of lecturing rural people. They are replaced by notions of defending the local natural heritage and by defending the economic benefits of the transition.
The inter-municipality of Clunisois is thus carrying out major projects such as the establishment of a mobility network to limit car trips, or the rescue of unsold goods and food surpluses from waste. To do this, it can count on its rich network of 600 local associations. In short, it is a culture of compromise that guides transitions in this territory.
The sources
- CSR Magazine “The United Kingdom will regulate providers of ESG ratings”
- CSR Magazine “The European Commission publishes an FAQ to facilitate the implementation of the new sustainability reporting rules”
- Les Echos “Chile: the world's largest copper mine goes on strike”
- Novethic “Carbon credits from renewable energies fail new integrity tests”
- Novethic “The Bolloré group blacklisted by the Norwegian fund for its unethical practices in Cameroon”
- Le Monde “In the United States, two years after the Inflation Reduction Act, the American Eldorado between bluff and reality”
- CSR Magazine “The French still consume too much plastic”
- Sustainable news “The UN launches the multidimensional vulnerability index, in addition to GDP”
- Sustainable news “The giant fires caused significant CO2 emissions last year”
- Le Monde “How to start the ecological transition without “robbing people”: the Clunisois model”
