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Introduction
COP29, which opened on November 11, 2024, delivered a major surprise with the acceleration of the process to create a global market for carbon credits. While promising on paper, this initiative is already raising concerns about the risks of fraud and abuse.
While France's Minister of Ecological Transition, Agnès Pannier-Runacher, has decided not to take part in the event, a decision marked by geopolitical tensions with Azerbaijan, the conference's impact on international cooperation on ecological transition remains uncertain. The COP29 discussions are just the tip of a much larger iceberg of ecological and ethical challenges facing businesses and governments alike.
Discover all the news of the week in our article.
Drama at COP29: agreement on carbon credits
The 29ᵉ Conference of the Parties on Climate Change (COP29) opened this Monday, November 11. The COP presidency took delegates by surprise by speeding up the process of voting on rules for the creation of a global market in carbon credits. This move avoids the need to reopen deliberations.
Thus, the highly controversial issue of carbon credits, on which no agreement had been reached at previous editions of the COP, was presented "take it or leave it" to the nearly 200 participating states.
The cavalier conditions under which these agreements were presented pose a risk to the implementation of the carbon market. Indeed, many specialists, NGO representatives and associations are pointing to the risks of fraud and abuse, already well known to European public authorities.
The French Minister for Ecological Transition will not be attending COP29
Agnès Pannier-Runacher has announced that she will not be attending COP29 in Baku, Azerbaijan. Against a backdrop of diplomatic tensions between France and Azerbaijan, the Minister accused President Ilham Aliev of "instrumentalizing the fight against climate change for an unworthy personal agenda".
While this decision is largely based on geopolitical and diplomatic issues, it is not neutral coming from a Minister of Ecological Transition. Indeed, the President of Azerbaijan is very enthusiastic about fossil fuel exploitation, referring to natural resources (including gas, coal and oil) as "gifts from God".
In addition to weakening bilateral relations between the two countries, this situation also weakens international cooperation on ecological and energy transition policies.
Ethics at the heart of employee concerns?
The Institute of Business Ethics (IBE) has conducted a major survey on ethics in the workplace, involving 12,000 working people in 16 countries, including France. The survey highlights some recent developments in ethical practices and representations within French companies.
The survey shows that, in France more than anywhere else, employees' opinion of their superiors' ability to commit to ethical approaches has deteriorated.
Simone de Colle, Professor of Business Ethics and Strategy at IÉSEG, states that "French employees are increasingly sensitive to ethics". On the one hand, they are more aware of ethical standards within their organizations. On the other, the training they receive in this area makes them more willing to understand how these tools work and what their role is.
After CSRD, duty of care comes under fire
25 European lobbies and associations have signed an open letter against the CSDDD, the European duty of care directive. Among them is Business Europe, considered to be the "European Medef". A further attack on efforts to regulate the economic and commercial practices of European companies.
Indeed, following on from the CSRD and the law on imported deforestation, the CSDD intends to hold companies to account and take measures to prevent human rights and environmental abuses throughout their value chain.
The arguments put forward by these players worry those of the ecological and social transition. Once again, the rhetoric is about "simplifying" and "lightening the load" of CSR policies.
What are the government's plans for decarbonizing businesses?
The revision of the national low-carbon strategy (SNBC) is currently under consultation. This is a government roadmap for the energy transition of the French economy and society. A "draft guide" for "volunteer companies" has been published.
The SNBC's objective is to reduce France's GHG emissions by 50% between 1990 and 2030. However, the overwhelming majority of companies subject to the obligation to publish a BEGES (carbon footprint) are not in compliance. This situation augurs ill for their compliance with European regulations (CSRD, CSDD, etc.).
This guide is designed to help companies choose "3 levers" that are relevant to their main emissions, so that they can adapt their low-carbon strategies.
What is the global footprint of French companies?
According to calculations by Goodwill Management-Baker Tilly, every year French companies consume the equivalent of 3 planets. What's even more remarkable is that the activities of these companies also exceed planetary limits.
Based on the definition of a "quota" to be respected for each country, the agency showed that France "exceeds its global limit quotas by a factor of 3", particularly in terms of water and climate.
These calculations, based on 50 of the most committed companies, show that they are not respecting planetary limits either. This perhaps reflects the fact that "CSR as it is practiced today is insufficient". A further argument in favor of supporting the regulatory dynamics that promote the social and environmental commitment of companies, which have been under threat of late.
Solidarity finance update
The week of November 11 to 18 is dedicated to solidarity finance. This is an opportunity to review the principles and definitions surrounding this financing mechanism for structures with "strong social and environmental benefits".
Solidarity finance approaches aim to transpose the logic of the SSE to the financial markets. In so doing, it proposes a fundamental paradigm shift: social and environmental impact as the objective, rather than profit alone.
Last year, solidarity finance accumulated assets of 30 billion euros, generating 680 million euros in solidarity financing.
Solidarity finance differs from Socially Responsible Investment (SRI) in that its shares are not listed on the stock exchange. It is even supported by "sharing" mechanisms, which involve donating a share of profits to impact associations and organizations.
Renewable energies gain in importance
The International Energy Agency (IEA) and the International Renewable Energy Agency (IRENA) recently published reports confirming the growing importance of renewable energies in the global energy mix. This growth augurs well for the future commercial dynamics of the sector.
According to the IEA, by 2030, 50% of the world's electricity will come from renewable sources. The main reason for this trend is the increasingly attractive cost of renewables on energy markets.
Last but not least, nearly 16.2 million people are employed in the renewable energies sector. A further indicator of the market's vitality.
Low-income households more exposed to heat islands
A recent INSEE study highlights the fact that low-income households living in working-class neighborhoods are more severely affected by urban heat island phenomena. Indeed, "dense and sparsely planted", these neighborhoods are less well suited to the problem.
For example, according to satellite data collected in 2017 by INSEE, between the richest 10% of Lyon households and the 10% least endowed, the heat differential was 0.41°C.
The French statistics institute points out that this is not necessarily a public health issue in normal times, but that during severe heatwaves it can lead to a number of inequalities in adaptation. In other words, the poorest households, which are generally less equipped and have fewer opportunities to move from one town to another, are less equal in the face of risk.
Employee groups committed to the transition of their companies
120 companies in France, more than 50% of them CAC40 companies and major consultancies, have created employee collectives within their ranks. Their ambition is to change internal practices and raise awareness of social and environmental issues among their colleagues and management.
Some of these groups involve up to 2,000 employees. The climate frescoes and eco-gesture awareness-raising workshops enable companies to include these initiatives in their training and skills development programs.
However, faced with the inertia of their organizations and the slowness of change implementation, some young employees are faced with real discouragement, even frustration, which sometimes even leads them to resign...
The sources
Novethic "COP29: the agreement on the carbon credit market creates controversy".
Novethic "European duty of care threatened by the European Medef".
Youmatter "SNBC: the government's plans to decarbonize businesses"
Youmatter "French companies consume the equivalent of 3 planets".
Carenews "By the way, what is solidarity finance?"
Novethic "The renewable energy boom continues worldwide, creating more and more jobs"
Le Monde, Opinion column of November 14 by Stéphan Pezé and Christelle Théron
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