.svg){kind=logo}
In this week's CSR news, we'll be talking about pay equity and transparency in companies to play a key role in improving the internal climate.
Alongside these social challenges, the energy transition is also growing in terms of jobs, although some sectors are in financial deficit...
Companies like Crédit Mutuel and MAIF are reinventing the way profits are distributed by allocating them to ecological and social projects.
In short, find out the 10 CSR news items for the week of September 23, 2024.
Pay equity benefits the life of the company
In an interview with Novethic, sociologist Elise Penalva-Icher looks back on her surveys and research into compensation. She argues that "pay differentials symbolically place executives outside their companies".
Salary frustrations stem first and foremost from the complexity of the compensation system: pay grids, bonuses, profit-sharing, incentive schemes... all of which are often poorly understood by employees.
It also reminds us of the weight of salary perception on the feeling of fairness among employees. Pay differentials are not unacceptable, but they must be "justified by comprehensible principles" if they are to be accepted.
Lastly, there is a growing demand for transparency and fairness in remuneration policies, which are conducive to a climate of goodwill throughout the company.
421,000 sustainable jobs in France!
In its annual study on the markets and jobs associated with the energy transition, Ademe looks at the weight of the following sectors:
- Sober, low-emission transport
- The buildings
- Renewable energies
Their latest study (period 2020 to 2022) reveals that these three sectors will accumulate sales of 113 billion euros in 2022. That's 3.6 times more than in 2006.
Moreover, calculated on a full-time equivalent basis, they will account for 421,300 "associated direct jobs" in 2022, 24% more than in 2020.
However, although sales in these sectors are rising sharply, the deficit is widening to 18 billion euros, two-thirds of which is attributable to imports of electric vehicles.
What are "ecological and societal" dividends?
In 2023, Crédit Mutuel Alliance Fédérale bank and MAIF insurer have decided to allocate a significant portion of their profits each year to initiatives and projects with a positive impact on the environment or social utility. A way of considering "the planet as a shareholder" of the company.
At MAIF, for example, this represented 10% of net income, or 8.2 million euros. This amount was invested in biodiversity protection projects.
At a time when companies are increasingly taking responsibility for their social and environmental impact, this responsible dividend scheme is a concrete and directly effective way for them to make a commitment in this direction. Lastly, it is a response to the debate on value sharing, offering an opportunity for a better distribution of dividends between shareholders and public-interest projects.
Companies lag far behind in calculating scope 3 emissions
A Censuswide study for Sweep and Capgemini has examined the relationship between companies and the need for sustainable transformation of their business models. What emerges is an astonishing discrepancy between a high level of awareness, and decisions that are sometimes too timid when it comes to sustainability.
The study questioned French, American, German and British companies. The results show that 81% of those surveyed admit that their viability is directly linked to their ability to adapt to a new economic reality.
However, 47% of them claim to be "frustrated" by the complexity of the indicators and reporting obligations. Last but not least, 72% of those surveyed do not map scope 3 emissions, which on average account for 70% of a company's impact. This situation prevents them from taking a global view of their impact.
Increase in the number of industrial accidents with environmental impact
France Nature Environnement, the French federation of associations for the protection of nature and the environment, is warning this year of an increase in the number of industrial accidents and incidents. In 2023, it expects 404 accidents and 840 incidents, up on 2022, which the NGO explains by a "lack of controls" on installations.
To date, 500,000 industrial or agricultural facilities are "classified", i.e. identified as sites posing a risk to the environment, health or safety.
"In 2023, 73% of accidents involved the release of hazardous materials, and 68% had environmental consequences.
4 CSR solutions for your company
CSR is reaching a certain point of maturity in French companies, and so are the innovative solutions for making it a reality:
- Skills sponsorship: This involves making an employee available to a public-interest project during his or her working hours.
- Responsible mobility leave: Give extra half-days off to employees who travel responsibly, thus avoiding air travel.
- Ecological and social dividend: Consists in giving up a share of profits to finance sustainable projects.
- Greater pay transparency: A right to pay transparency before and within the workplace will soon be a binding European directive.
French responsible investment slows down
The annual survey by Ifop and FIR (Forum pour l'Investissement Responsable) reveals a downward trend for sustainable products among French investors and savers. More specifically, sustainability issues are tending to take second place among investment priorities.
Responsible investment has lost its place on the podium of priority issues. Climate change is only fourth, behind well-being in the workplace and human rights.
However, the majority of investors surveyed (51%) say they are concerned about the environmental impact of their investments. This compares with 59% last year, and even more before 2023.
This trend is explained by the political and economic uncertainties and instabilities that France has been experiencing in recent months.
Tense standoff between GAFAM and the EU
Meta, parent company of Facebook and Instagram, has taken the lead in a protest movement spearheaded by tech companies accusing Europe of hampering innovation and competitiveness in the private sector. At issue are European standards linked to the DMA (Digital Market Acts) regulation, accused of being at the root of the problem.
This lobbying has resulted in Meta and Apple suspending their artificial intelligence assistants in Europe until further notice. Meta has even gone so far as to claim that Brussels "rejects progress".
The EU's response is that, in reality, its approach is to unify national standards into a single regulatory package that benefits cooperation and innovation among European tech companies. What's more, these digital giants will never give up on a market of "450 million rather wealthy inhabitants".
MSCI can't resist European regulations
Leading US financial services provider MSCI is to remove the words "ESG", "impact" and "sustainability" from its index names. Anticipating stricter European and British regulations in this area, Europe's largest index provider for ETFs (investment funds) is bowing to them.
These are the new guidelines issued by ESMA(the European Securities and Markets Authority), which require compliance with specific criteria to qualify an investment fund as "sustainable".
This is a victory for the European regulator, who is forcing sustainable investment approaches to comply with a number of basic standards: the exclusion of oil stocks and a proportion of at least 80% responsible investment in funds that present themselves as "green".
European law against deforestation under pressure
The European law against imported deforestation is due to come into force on December 31. The law is very restrictive for some companies, and there is strong pressure to postpone its implementation.
This standard aims to put an end to the import into the EU of products derived from deforestation: "cocoa, coffee, soya, palm oil, timber, beef and also rubber". These products are sometimes essential to the business models of certain European giants.
Germany in particular has joined the international protest movement, arguing that the survival of certain companies whose supply chains would be seriously threatened by this law is at stake. On the other hand, while the President of the Commission is reportedly on the point of backing down, ecologist MEPs are warning of the "ecocidal" potential of such a step backwards.
The sources
Carenews "Ademe lists 421,000 jobs linked to the energy transition in France"
Sustainable news "Ecological and societal dividends: the Earth as shareholder".
RSE Magazine "In France, 1 in 6 companies still do not map their emissions".
Youmatter "404 industrial accidents in classified facilities in 2023"
Carenews "Inclusion, social, ecology... Six CSR innovations for your company "
Novethic "Faced with uncertainty, France's appetite for responsible investment is waning".
Le Monde "AI: Meta and Apple put pressure on the European Union, accused of "rejecting progress""
L'Agefi "MSCI removes the term ESG from the name of its indices".
Novethic "Europe's law against imported deforestation could end up in the bush"
.jpg)