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Introduction
This week in CSR News, we look at how political and economic debates are influencing regulatory commitments, including the French government's desire to review CSRD deadlines, which could weaken the ambitions of the European Green Deal.
We'll also be looking at the key figures from COP16 Biodiversity, inclusive governance issues, and other current CSR challenges for companies, governments and civil society.
Enjoy your reading!
Will the Barnier government postpone the CSRD?
In the Journal du Dimanche, French Prime Minister Michel Barnier said he wanted a "moratorium" on certain regulations, pointing the finger at EU sustainable transition policies such as the CSRD and duty of care.
Referring to the need for regulatory simplification, Michel Barnier asserts the possibility of "postponing by two or three years the dates of entry into force of very heavy regulations". This is the first time that the head of the French government has called the European Green Deal into question.
According to Arnaud Gossement, a lawyer specializing in environmental law, this declaration is risky, since such a delaying tactic would place France outside European law. To this extent, it is "dangerous", since it could create uncertainty among companies, which might then be less inclined to implement CSR impact reporting.
Key figures from COP16 Biodiversity
COP16 Biodiversity opened on October 21 in Cali, Colombia. It aims to deepen the Kunming-Montreal Accord adopted in 2022, in order to reverse the destruction of life on earth and in the oceans.
- 20 billion: this is the financial commitment pledged for biodiversity by 2025.
- 230 companies: their mobilization is particularly important for this COP16. A "target" is specifically dedicated to them.
- 18,000 participants: Never before has there been so much enthusiasm for a biodiversity COP, and never before have so many heads of state been present.
- 31 biodiversity strategies: Only 31 countries out of 196 have published their NBSAPs. What's more, 17 countries host 70% of the world's biodiversity. Of these, only 5 will make it...
- 23 targets: Indicators and monitoring procedures contained in the Kunming-Montreal Agreement, which this COP16 Biodiversity intends to implement in greater depth.
INSEE: the gender pay gap persisted in 2023
According to recent figures published by INSEE, the full-time equivalent pay gap between men and women continues to reflect gender-based pay inequalities. However, the statistics institute notes that this gap "continues to narrow".
With an average net salary of €2,508 per month, women earned 13.5% less than men in 2023. The latter received an average of €2,898 net. However, "This gap has narrowed by 0.5 points compared to 2022, and by 7.4 points since 2008".
Remarkably, these discrepancies are also found among the top 1% of private-sector salaries, where women account for just 23.5% of the highest-paid employees. A situation which, despite improvements, indicates the persistence of gender bias in the professional world.
Inclusive governance and shared decision-making
In an interview with Carenews, businesswoman Mireille Faugère (former Director of Paris Hospitals) argues in favor of a better sharing of decision-making within organizations. More specifically, she urges companies to "put the user at the heart of the service offering".
This approach involves including user associations in the decision-making process. In particular, certain user minorities, such as people with disabilities. This offers a plurality of viewpoints on boards of directors, and generates more inclusive and informed governance.
Basically, this dynamic aims to "share decision-making power with the people who are the first to be affected".
Is the employment of disabled people under threat?
Major budget cuts are on the cards for Agefiph (Association de gestion du fonds pour l'insertion professionnelle des personnes handicapées). Indeed, the draft finance law (PLF) 2025 could threaten support for the social and professional integration of people with disabilities.
In fact, the plan is to cap funding for 2025 at 457 million euros. This represents a 20% reduction compared to 2024.
To date, the association's resources come directly from the penalties awarded to companies that do not pursue sufficiently ambitious inclusion policies. The PLF 2025 therefore intends to cap them in order to "recover the surplus", i.e. nearly 100 million euros.
French companies still in the dark about CSRD
As part of its annual review of reporting practices, Tennaxia consulted 200 French companies. The study shows that 76% of those surveyed have not carried out their "double materiality analysis". Yet this approach, which aims to take into account the financial and CSR impacts of companies, is supposed to form the basis of the sustainability reports they will be required to submit by 2025.
Another worrying figure is that 67% of those surveyed have not yet set up a team specialized in the governance of extra-financial data. In addition to lagging behind on regulatory obligations, this reflects a failure on the part of companies to take the transformative challenges of CSRD seriously.
Finally, the survey shows a strong desire to outsource reporting, with 61% of companies looking for an external service provider to support and advise them in this process.
2,680 billion in environmentally harmful subsidies
In 2023, 2,680 billion dollars in subsidies would have been paid out by governments for projects harmful to the environment and the balance of ecosystems, according to a study recently published by Earth Track. This amount corresponds to 2.5% of global GDP.
This estimate is $800 billion higher than in 2022. This trend is due in particular to "increased subsidies, especially for fossil fuels". It should be noted that, indexed to inflation, this amount corresponds more precisely to the sum of 570 billion.
In France, government subsidies for projects harmful to the environment and biodiversity total €10.2 billion. This is "4 times more than favorable spending". These subsidies are mainly directed towards certain agricultural practices and the artificialization of land.
European industry falls far short of decarbonization targets
The Institut Montaigne, a liberal think tank, has published a report in which they urge the EU to accelerate its energy transition, if it is to honor its commitment to European carbon neutrality by 2050. Industry accounts for 10% of the continent's GHG emissions.
Maintaining European industrial competitiveness remains an essential part of the equation. The Institute tackles the thorny issue of balancing this competitiveness with an ambitious energy transition policy, posing the question of "industrial strategy for the post-carbon era".
They propose better coordination between European industries to avoid any risk of competition between them. On the other hand, they stress the vital importance of being "self-sufficient" across the entire green technology value chain, so as not to be dependent on China, for example.
Forests: increasingly inefficient carbon sinks
Forests are very important carbon sinks, i.e. natural reservoirs for sequestering GHG emissions. Under normal circumstances, they absorb almost 20% of man-made emissions. However, specialists are concerned that Co2 capture rates will have fallen drastically by 2023, which will have a direct impact on our ability to combat global warming.
This situation is explained by repeated droughts and fires, particularly in Canada, Siberia and the Amazon. More precisely, these "lungs" of oxygen have in part become direct GHG emitters.
This situation is a vicious circle in which the cure can sometimes turn to poison: where the forest itself becomes a GHG emitter.
Investing 1 trillion in AI to support CSR?
In a recent report produced by Goldman Sachs, the bank recommends an investment of $1,000 billion over 10 years by companies in artificial intelligence systems, to benefit their decarbonization trajectories.
For example, while 68% of employees "regularly" use generative AI (according to BCG), two-thirds of companies only use free versions of the latter. Yet, in terms of productivity, the gains could be +7% by 2034 according to the potential trajectory identified by the study.
The race to master AI models, on the one hand, and to drastically reduce carbon footprint, on the other, are two complementary challenges for companies. A source of opportunities, the study suggests that they should be seen as an investment.
The sources
Novethic "Michel Barnier wants a moratorium on CSRD and environmental regulations".
Novethic "COP16 Biodiversity: Five figures to understand the stakes"
Les Echos "How salaries have evolved in France in the face of the inflationary shock".
Carenews "Mireille Faugère, putting the customer at the center of our service offering".
Carenews "MPs table an amendment against the Agefiph budget cut"
Novethic "CSRD makes French companies doubtful".
Youmatter "The equivalent of 2.5% of global GDP spent on subsidies harmful to biodiversity"
Le Monde "The "embryonic" decarbonization of European industry".
RSE Magazine "The worrying drop in carbon absorption by forests in 2023".
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