CSR news from 07/22/2024

Charles Lorin
July 26, 2024

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

The Paris 2024 Olympics are banking 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 impact of climate change on French productivity and public debt highlight current environmental challenges.

Read all our CSR news.

When a polluting contract leads to the loss of CSR certification

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

As a result, "all Havas divisions are now ineligible for the label". This decision by B-Lab, which manages the label, marks its determination to protect the credibility of its certification. CSR labels are not just about responsible certification, but also have a real strategic and reputational dimension.

B-Lab has announced its intention to build on this momentum by strengthening its certification criteria. So the question is: will the initiative of this labelling giant revolutionize the entire sector?

Women are more entrepreneurial than ever

INSEE has published a study showing an encouraging rise in the proportion of women business creators since 2014. Indeed, in 2022 4 out of 10 businesses created were by women. This was 35% in 2018, and 32% in 2010.

However, there is an imbalance in the situation, with women accounting for almost half of the French workforce. In other words, they remain less inclined than men to set up a business.

What's more, female entrepreneurship is largely correlated with the sector of activity observed. Women are in the majority in :

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

A situation that reveals the persistence of certain prejudices and frameworks of sexist representation within society.

AI and CSR: what synergies?

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

AI's predictive capacity would enable companies to better anticipate demand in order to limit overproduction and waste, says Charlène Dupont, manager datascientist and CSR manager at Avisia.

The other element often mentioned is the completion of administrative reporting tasks. With the 1,200 pieces of data that CSRD requires, a processing tool as powerful as AI promises to save time and increase productivity, freeing up time for the substantive work of CSR managers.

It's important to bear in mind, however, that this is just one tool, and that AI alone cannot solve the problems posed to business by the climate crisis.

SSE, a major partner of the 2024 Olympic Games

The Paris 2024 Olympics called on a large number of companies from the SSE sector, a sign of a desire to showcase a sustainable and responsible competition. More than 500 SSE companies were involved in the construction of the competition.

For example, Le Pavé, a company specializing in plastic recycling and recovery, has produced over 11,000 bleacher seats from recycled materials.

This development has been made possible by the Paris 2024 Social Charter, which commits the organizing committee of the Olympic Games to working with small and medium-sized enterprises and SSE structures. Ultimately, they represent "more than 75% of suppliers", as well as "36% of the value of works contracts" for the Société de livraison des ouvrages olympiques (Solideo).

Sponsors not always responsible for Paris Olympics

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

The biggest polluter of the 2024 Olympics is Toyota. According to the 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 is true of Samsung and 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

Power consumption by data centers in Ireland now accounts for "more than a fifth of the country's electricity". A figure that exceeds the electricity consumption of all the houses in the city.

Particularly energy-intensive, data centers are consuming more and more energy every year. They accounted for 5% of Ireland's 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 this will pose in the future.

This explosion in demand is essentially linked to the massive use of artificial intelligence, which will drive demand to 30% of national consumption by 2030, according to the International Energy Agency.

Climate crisis worsens French debt, says Cour des Comptes

Last week, the Cour des Comptes published a report on French public finances. In particular, it devoted a chapter to assessing the costs and effects of the climate crisis on public debt.

According to its analysis, "the ratio of French debt to GDP could be 7.5 points higher in 2030". For this reason, the Court is sounding the alarm and calling for a "tempering" of the idea of "green growth" as a means of reconciling ambitious transition policies with strong economic growth.

Another focus of attention is extreme weather events, which are hampering productivity in a growing number of sectors. Preventing employees from working, they reduce working hours and, ultimately, company revenues, which are essential for balancing the state budget.

Renewables to overtake coal in 2025

According to forecasts by the International Energy Agency (IAE), the amount of renewable energy produced should exceed that of coal next year, on a global scale. This development reflects both a political shift towards energy sustainability and our society's growing dependence on electricity.

The IAE forecasts that 35% of power will come from renewables, compared with 30% from coal. It should be noted that photovoltaics make up half of this total, and wind power a quarter.

However, no reduction is expected for coal, which continues to account for a very large share of global production. In fact, India and China, two industrial superpowers, continue to use coal on a massive scale.

Climate change and productivity at work

"More than 70% of the world's workers are at risk of serious health problems linked to climate change". High temperatures are the main cause of this situation, endangering those most at risk: construction workers, agricultural workers and kitchen staff.

In France, between 14% and 36% of workers are exposed to extreme heat (according to France Stratégie). What's more, the IRNS (Institut national de recherche et de sécurité) states that temperatures above 33°C in the workplace are dangerous for individuals.

Finally, France Stratégie points out that such working conditions have an impact on employees' physical and cognitive faculties, which in turn affects their productivity: "from 24 to 26°C, productivity drops".

Towards a decarbonized steel from Italy

A historic agreement has just been signed between EDF and its Italian partners: a partnership that aims to make Italy the world's leading producer of carbon-free steel. Another milestone is the return to nuclear power in a country that had abandoned it for 35 years.

To decarbonize the Italian steel industry, EDF and its partners are planning to install small-scale reactors (known as "SMRs") by 2030: the Nuward. This is good news for the carbon impact of this industrial sector, which accounts for a very large share of Italy's carbon emissions.

This is a telling example of an approach that, while taking decarbonization seriously, supports the industry and the economic competitiveness of a strategic sector on a national scale.

Sources

Novethic "Havas loses B-Corp certification after contract with Shell oil company"

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 Games 2024: SSE takes on major projects".

RSE Magazine "Sponsorship: meet the hidden polluters of the 2024 Olympics"

Le Monde "In Ireland, power consumption by data centers exceeds that of townhouses"

Novethic "How the climate crisis is undermining French debt".

L'Info durable "Electricity: renewable production set to overtake coal in 2025"

Youmatter "How climate change is affecting working conditions".

RSE Magazine "Italy wants EDF's nuclear power to decarbonize its steel".