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In this week's CSR News, we explore recent economic and social initiatives that show how companies and governments are trying to respond to environmental and social challenges.
From a commitment to gender equality to the impact of the economy on the environment, the topics covered reveal tensions and possible solutions to current issues.
Find out how these actions are shaping our society and why they're at the heart of today's concerns.
Top executives commit to gender equality in the workplace
In an article published in Les Echos, a number of major business leaders pledge to do more to promote women to positions of responsibility, given that the current situation is still "far from reaching acceptable levels".
These executives from SNCF, Sodexo and Crédit Mutuel Arkéa have declared their "personal" commitment to more ambitious policies for the inclusion of women in positions of corporate power.
Their approach focuses on the work-life balance, where the mental burden that generally falls on women generates gender inequalities in the "concrete material conditions" of professional success. The challenge is to accelerate the change in mentality so that the perception of this predominantly female burden is no longer a hindrance to their careers.
Two French companies top CSR performance rankings
The World Benchmark Alliance (WBA) has updated its ranking of 800 companies according to their impact on nature. In first and fifth place respectively are luxury goods group Kering and food multinational Danone.
The sustainability indicators used to establish this ranking focus on companies' performance in terms of biodiversity, as well as social and governance practices. The WBA laments the "weak overall performance" of the companies surveyed.
This lag is largely due to the lack of consideration given to the impact of companies on nature within management, since only 5% of those in the ranking "have carried out an assessment of the impact of their activities on nature".
A correlation between forced marriages and climate change?
In Pakistan, Le Monde reports that families severely affected by extreme climatic events are rushing their daughters into forced marriage in order to obtain a dowry to cope with the disasters. Often "very young", these girls suffer the full brunt of a situation of great gender inequality.
The monsoons become stronger and more intense, causing floods that destroy crops. The Pakistanis call these young women "monsoon brides", who are forced into marriage because of the economic rewards involved.
According to one study, following major floods "the marriage rate for girls aged 15 to 19 rose from 10.7% to 16%" between 2010 and 2011, for example.
Unlimited air travel: the anti-sobriety subscription
The airline Wizz Air has sold out its 10,000 subscriptions, offering unlimited, last-minute travel between Europe, Asia and certain Gulf countries for €599 a year. A proposal that has provoked indignation and criticism from numerous associations and environmental NGOs.
At a time when low-cost airlines are already considerably increasing the aviation sector's CO2 emissions, with over 20 million tonnes emitted by 2023, this move is both questioning and worrying.
The Hungarian airline Wizz Air defends itself, arguing that this approach is aimed precisely at maximizing the load factor of its aircraft, which would have the effect of "reducing emissions intensity". This argument seems to overlook the fact that last-minute ticket sales tend to generate new needs "among people who hadn't planned to fly".
Green employee savings soon?
Under a decree issued on July 5, French employees will soon be able to use their company savings plans to support the ecological transition. These funds come from incentive bonuses, profit-sharing or recent value-sharing bonuses (PVV).
These savings can now be used to purchase "clean" vehicles, from cars to electric bicycles. Energy-efficient home renovation is also covered by this extension of the company savings plan.
This approach aims to further the ambitions of a better sharing of value within the company. The French Association of Financial Management (Association française de la gestion financière - AFG) estimates that the total value of employee savings schemes is close to €188 billion, benefiting over 12 million employees.
Significant increase in requests for advance payment
While September is usually a month of major expenses, impact company Rosaly reveals in a study that 37% of employees "are considering asking for an advance on their salary" in order to withstand the extra costs of back-to-school.
Advance payments differ from salary advances in that they relate to hours already worked. This practice is up 7% in September compared with June this year.
Employers are obliged by law to accede to these requests, considering that the amount paid is due in principle to the employee, as the hours have already been worked. While the increase in this practice reflects the fragility of the financial situation of certain households, it is also an opportunity for employers to improve their social impact by providing appropriate support for their most precarious employees.
Higher borrowing rates for heavy polluters
A study by the European Central Bank (ECB) reveals that companies with the highest GHG emissions pay an average bank lending rate 0.14 percentage points higher than the greenest companies.
Even more importantly, companies that take realistic steps to reduce their carbon footprint benefit from more advantageous rates than others.
This reflects a transformation in financial analysis practices, which see companies' failure to take sustainability issues into account as an additional risk. In other words, CSR reassures investors.
However, the most recent green innovations still sometimes suffer from a lack of confidence on the part of banks, which prefer brown technologies, still considered less risky than new low-carbon technologies.
South Korea considers climate a constitutional obligation
The South Korean government has been recognized as legally obliged to plan a trajectory for reducing its GHG emissions by the country's Constitutional Court. Based on the rights of future generations, this decision requires binding and ambitious measures for the period 2031 - 2049.
After 4 years of legal battle, this marks a major breakthrough in South Korea's jurisdictional framework. "Failure to provide specific plans beyond 2030 transfers an excessive burden to future generations", which was ruled unconstitutional.
This situation puts into perspective the essential role that justice can play in all countries of the world in forcing governments to adopt ecological and environmental policies commensurate with the challenges facing future generations.
Between Germany and France, who has the greenest industry?
A study by the Think Tank La Fabrique de l'industrie has compared the low-carbon strategies of two major European industrial players. At a time when industry accounts for 21% of Europe's total emissions, the issue is highly topical.
Of the two countries, France performs less well when Scope 1 emissions (direct emissions from companies) are considered, but its impact is less significant than Germany's on the Scope 2 scale (energy consumption by companies).
France's industrial sectors (metallurgy, chemicals, cement and oil refining) emit more directly, but their nuclear-powered energy mix goes a long way towards offsetting overall emissions, compared with industry across the Rhine. In fact, the French mix is "six times less carbon-intensive" than that of its German counterpart.
Sustainable finance: transition funds are more than just green funds
In a recent report, the European Securities and Markets Authority (ESMA) points out that investment funds dedicated to transition are now better financed than traditional green funds. Their growth is now higher, but they remain less endowed in terms of total value.
The fundamental difference between the two is that transition funds focus on companies in the process of transition, unlike green funds, which finance sectors that are already sustainable. In other words, it's possible to invest in fossil fuel projects, for example, under a "sustainable" label.
However, investments are mainly directed towards green bonds issued by large energy companies, which "coincides with the recent recommendation by European regulators to extend the EU taxonomy to transition activities".
The sources
Les Echos To accelerate gender diversity, the image of power must change
Carenews Two French companies in the top 5 of companies with a positive impact on nature
Le Monde In Pakistan, forced marriages on the rise in families made vulnerable by climate change
Novethic Unlimited flights with Wizz Air: an offer that runs counter to calls for sobriety
RSE Magazine Advance payment requests explode
Youmatter CSR figures: +0.14 pt for loans from top corporate issuers
RSE Magazine Climate, a fundamental right: South Korean court orders concrete action
RSE Magazine ESG investment: transition funds win out over green funds
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