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In this week's CSR News, we'll be talking about the challenges and opportunities faced by SMEs in the face of growing sustainability demands.
While initiatives to ease CSR standards for small businesses are emerging, debates on wages, climate issues and environmental policies are multiplying.
Here are the ten highlights of the week - enjoy your reading!
The double whammy for SMEs when it comes to CSR standards
CSR management expert Patrick d'Humières gives his views to Novethic. He points out that SMEs, unlike major contractors, do not always have the means to comply with market CSR requirements.
While the plan to extend CSR to all categories of company is obviously laudable, it is being done "without regard for the value chain's cost structure and low margins". As such, the model seems unsustainable for SMEs, which suffer the double penalty of not being able to fully meet such obligations, while at the same time being forced to reduce their margins.
CSR models need to be better adapted to SMEs, in particular by developing partnership and contractual relations between large groups and SMEs.
11 SMEs test CSRD's "lighter standards
Eleven SMEs have been selected in a public consultation to test a lighter version of the European CSRD standard. The results of this process will be transmitted to the European Commission by Bercy on May 21.
This lighter version, known as a "voluntary standard", could in future be applied to SMEs, as more and more companies will be affected by the standards package over time.
The system is designed to be simpler: reduced to 71 questions. The aim is to give SMEs the opportunity to engage in simpler, sustainable processes. However, managers who have to undergo this preliminary consultation are still worried about the administrative burden involved:
"On certain points, access to data is complex and requires time and investment".
(Sophie Dartois, CSR manager at one of the 11 SMEs)
Salary remains the primary motivation for employees
At a time when there's a lot of talk about the quest for meaning at work, corporate ethical values and CSR commitment on the part of employees, a recent study by Randstad puts this trend into perspective.
According to them, 43% of employees say that "remuneration that is too low in relation to the cost of living remains the main reason for changing employer".
However, there is an interesting breakdown of these results by age. Salary comes first for :
- Generation Z (1997-2012): 38%.
- Millennials (1981-1996): 45%.
- Generation X (1965-1980): 42%.
- Baby-boomers (1946-1964): 41%.
Lucie positive, the label that goes beyond CSR
Alan Fustec is founder of the Lucie agency and Goodwill management. He defends the vision of a business model that goes beyond the usual CSR framework. For example, he proposes calculating a "planetary limit quota" for each company. In other words, a label awarded to companies committed to respecting planetary limits.
This demanding certification implies compliance with quotas for "consumption of water or raw materials, atmospheric pollution and waste emissions". It also implies a zero pay gap between men and women, and a sustained training policy. To date, no company has been awarded the label.
According to him, companies "can't just reduce their negative impact on the environment", but need to completely rethink their production models.
380 climate scientists express their dismay
The British Guardian surveyed 380 climate experts and scientists, 77% of whom were dismayed by a situation where "the average global temperature will rise by at least 2.5°C, with disastrous consequences".
The vast majority of these scientists are pessimistic, and envisage a catastrophic scenario in the future. Among the obstacles to action identified, two in particular are cited: lack of political will and corporate interests.
At a time when extreme climatic events are expected to multiply, scientists believe it is absurd for governments not to take action now. "1,000 billion dollars a year are needed. That's half our military spending. It's not out of the question," says Philippe Ciais, Research Director at the Laboratoire des sciences du climat et de l'environnement (LSCE).
For employee savings aligned with CSR objectives
Epsor, a company with a mission, has published a "Guide pour une épargne salariale et retraite engagée". The purpose of this document is to inform the company's stakeholders about the links between employee savings and CSR policies.
In fact, according to the report, over 50% of assets under management are invested in funds that do not carry the responsible finance label. What's more, 78% of the funds analyzed "invest in at least one company involved in unconventional oil and gas extraction or exploration".
In other words, a situation where employee and pension savings schemes are not in line with responsibility objectives. Epsor recommends, for example, that CSR issues be included in company profit-sharing agreements.
SSE's worldwide sales amount to 2,000 billion!
The Schwab Foundation has published a global review of data relating to the Social Solidarity Economy (SSE). This groundbreaking work reveals the sector's considerable weight around the globe. Worldwide, the SSE represents :
10 million social enterprises
3% of all companies worldwide
50% headed by women
2000 billion in annual revenues
The creation of over 200 million jobs
The director of the Fondation François Bonnici affirms that his approach to quantifying the sector aims to make decision-makers and investors aware that the SSE is an interesting sector. The data collected will feed into the reflections of a working group at the United Nations, with a view to publishing a report.
EU environmental policies worry major NGOs
Greenpeace, LPO and WWF have co-signed an open letter addressed directly to European Union politicians. At the heart of their concerns is the retreat of environmental policies. According to these dozens of NGOs, a "dismantling of green measures" is underway, which must stop "before it's too late".
The targets are politicians all over Europe, as well as leaders in Brussels. They are criticized for seeing nature as an obstacle to the development of their policies, even though it should be "the very foundation" of all public action.
They criticize, for example, the pressure exerted against "nature restoration" legislation, or that "agriculture ministers are threatening new EU rules designed to combat deforestation worldwide".
Prix de l'ESS 2024: there's still time to apply
The Prix de l'Économie Sociale et Solidaire (ESS) national competition is designed to reward an SSE structure for its exemplary contribution to the positive transformation of society, both in terms of its inclusiveness and its respect for the environment.
The two main criteria used by the jury to select the winners are Social Utility and Ecological Transition. The projects rewarded each year are those that best meet the objectives of "improving social well-being, combating inequality and promoting sustainable resource management".
Applications are open until June 24, and the results will be announced during SSE Month in November.
Steps towards a protectionist European economy?
Recently, the subject of trade and industrial competition between China and the USA has come up again and again. As a result, "the taboo of protectionist measures is slowly coming down" in Europe. These measures would be known as the Buy European Act.
The aim would be to organize a green economic arrow on European markets, imposed by a public procurement system governed by local production and environmental criteria. In other words, green protectionism for European preference.
On the eve of the European elections, ideas abound: a "made in Europe" label, the notion of "European preference" or "protectionism based on solidarity": all the parties are putting forward their vision of the project.
Sources
Novethic "Buy European Act: the temptation of green protectionism in the face of the USA and China".
L'Info Durable "Dozens of NGOs worry about a setback for environmental policies in the EU"
Le Figaro "More than ever, it's salary, not the quest for meaning, that motivates employees to choose a job."
Youmatter "Worldwide, the SSE weighs more than advertising!", François Bonnici (Schwab Foundation)"
Reporterre "More than 300 climate scientists terrified about the future of the planet".
Carenews "Epsor publishes a guide to employee savings and CSR".
RSE Magazine "Prix de l'Économie Sociale et Solidaire 2024: a springboard for sustainable innovation".
Les Echos "Non-financial reporting: what still worries SMEs".
Novethic "Let's invent a partnership-based CSR model, truly adapted to SMEs".
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