CSR News 08/07/2024

Charles Lorin
July 12, 2024

Welcome to our roundup of the latest news on Corporate Social Responsibility (CSR). 

As the importance of sustainable and ethical practices continues to grow, it's crucial for companies to stay informed and proactive. In this issue, we explore a range of topics, from the impact of legal services on CSR transformation, to new regulations affecting business in relation to human rights and climate change. 

Enjoy your reading!

CSR and the legal department: what's at stake for the company?

The Association Française des Juristes d'Entreprise (AFJE) and Pwc Legal Business Solutions have published a joint report examining the role of lawyers in the transformation of business models in response to new CSR challenges.

Their first observation is that "1 in 2 companies has not upgraded its legal team" to meet the challenge of CSR. This figure can only be understood in the light of another fundamental fact: the strong correlation between a company's size/sales and its level of maturity on ESG and CSR issues.

Indeed, only the largest companies are concerned by European regulations, and see them as a strategic issue. However, even in this case, the legal department is not always seen as a fully-fledged partner of the CSR department, but rather as a support function.

Arcom sanctions CNews for climate skepticism

For the first time ever, a television channel has been financially penalized for failing to contradict a speaker who defended a thesis calling into question the human origin of climate change.

The matter was referred to Arcom by Quota Climat, a collective campaigning for greater visibility of environmental issues in the media. The excerpt in question concerns Philippe Herlin, a supporter of Eric Zemmour and of an "anti-transition" energy list for the 2024 European elections.

"Anthropogenic global warming is a lie, a swindle", he asserted, in order to justify the weight of the state within society. The channel has been fined €20,000, adding to its already long list of financial penalties, for failing to contradict and present different points of view honestly.

Big business "alarmingly" lags behind on human rights

The World Benchmarking Alliance has published a report questioning the human rights vigilance of the world's 2,000 most influential companies. These "basic social expectations" are lagging "alarmingly" behind.

While the European Duty of Vigilance (CSDD) will oblige European companies to respect human rights throughout their value chain, the effort required to achieve compliance seems enormous.

In fact, the report concludes that 80% of the 2,000 companies "score 0 on human rights due diligence". 90% of them have not implemented half of the initiatives enabling them to meet the CSDD's basic human rights requirements...

Heatwave: a new reason for layoffs in the construction industry

Following a decree, the French Labor Code now takes global warming into account. In the event of an orange or red heatwave warning issued by Météo France, employers will be able to suspend work. In such a situation, employees will continue to be paid up to 75% of their salary.

From now on, compensation of up to 75% of wages will be paid from a fund set up by various construction companies in anticipation of such situations. However, this will not increase employer contributions, as this "bad weather fund" was designed at a time when frost and snow were much more frequent than today.

This is a telling example of how public policy can be adapted to climate change, taking into account employees' well-being at work.

Digital economy: UN warns of environmental impact

UNCTAD, the UN agency for trade and development, has warned of the negative impact of the digital economy on the environment. Two main factors are to blame: the excessive consumption of water and electricity by data centers, and the depletion of raw materials.

The message conveyed by the agency is not fundamentally accusatory towards the digital economy, but rather aims to support "sound policies to reinforce the sustainability of digital growth".

In addition to environmental issues, there are also social ones: those left behind by the digital revolution will suffer the double penalty of global warming and limited access to new technologies.

UN publishes 10 best practices for businesses

The UN Global Compact, the bridge between the United Nations and businesses, has published a set of recommendations and best practices for the latter. They aim to deepen the SDGs and outline an ambitious framework for a world of work that is more respectful of the environment and human rights.

More than 22,000 companies, including 2,100 in France, belong to the initiative. By highlighting virtuous practices, we are able to show companies tangible examples of how to make improvements.

Traceability of the value chain, parity, the fight against corruption... so many solutions that support the implementation of a "universal commitment framework enabling companies to implement effective and measurable actions", affirms Nils Pedersen, General Delegate of the UN Global Compact - France Network.

Record heat in June

The European Earth observation program Copernicus has published data showing that the month of June 2024 is breaking heat records all around the globe. The average temperature measured was 16.66°C, 0.67°C higher than between 1991 and 2020 over the same period.

This finding maintains the current month of June in the ongoing series of unusually high temperatures for the year. In fact, it is the twelfth in a row to exceed pre-industrial averages by 1.5°C.

The measurements taken are not the result of a "statistical quirk", but of "a significant and continuous change in our climate", says Carlo Buontempo, director of the Copernicus program. He points to the role played by greenhouse gases in the observation of these abnormally high temperatures.

Electronics refurbishing: towards new business models?

Electronic devices are massively produced and purchased, and account for a considerable proportion of energy and raw materials consumption. In just a few years, reconditioning has risen from 10% to 25% of the market.

Gautier Feld, co-founder of CircularX, compares this development to that of the second-hand car market, which now accounts for 70% of car sales. He underlines the untapped potential of repairing and recovering electronic equipment, which is often thrown away while 95% of its components are still working.

However, the problem of price persists in a market where repair and maintenance operations can sometimes exceed the new purchase price. " It's not right that repair is not the easiest thing to do," laments Christopher Santerre, ex-CEO of Increvable.

French government backs marine turbines

The hydraulic industry is ready to support the ambition of Europe's largest hydroelectric park in Normandy. The government and Emmanuel Macron have affirmed their support for the initiative.

The Plan France 2030 allocates 65 million euros in aid to this "Flowatt park", which involves the installation of 6 tidal turbines with a capacity of 17 megawatts (MW). The aim is to reach a capacity of 250 and then 500 MW by 2030.

Hydropower is more widely accepted than wind or solar power, and energy providers benefit from the greater predictability of marine currents directly correlated with lunar gravitation. This consensus underpins a sector that, in France, could become one of the most successful in Europe.

Corporate sport still too rare in France

Only 2.5 million of France's 27 million working people take part in company sports. The Medef has published a barometer showing that only 13% of managers have put in place "facilities to encourage employees to take part in physical and sporting activities".

Yet the benefits of sports are well known. So why isn't it widely used in the workplace? The main reason is cost: showers and space reorganization are expensive and often put forward as a deterrent.

And yet, the practice of sport is directly linked to CSR: employees who engage in regular physical activity are less likely to fall ill, and their general well-being is enhanced. All the more reason for companies to invest in appropriate infrastructures.

The sources

RSE Magazine "ESG-RSE: 1 in 2 companies has not upgraded its legal team".

Novethic "CNews sanctioned for climate skepticism, a first".

Novethic "Duty of care: major companies fall far short on human rights".

Libération "Heatwave finally decreed as a new reason for short-time working in the construction industry".

Sustainable news "UN warns of environmental damage caused by digital economy".

Carenews "The UN Global Compact - Réseau France publishes ten best practices from the private sector in favor of sustainability"

Green "June 2024 was the hottest on record".

Youmatter "Sustainable transformation of business models: the example of electronics".

Sustainable news "Energy: tidal turbines in the starting-blocks".

Carenews "Why corporate sports are struggling to gain a foothold in France".