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Welcome to our roundup of the latest news on Corporate Social Responsibility.
G20: historic agreement to tax the ultra-rich
The G20 finance ministers have agreed to strengthen international taxation of billionaires. The aim is to initiate cooperative measures on a global scale to finance the ecological and social transition. This would be a totally new approach in terms of both international governance and taxation.
The philosophy behind this measure is to introduce progressive, fairer taxation, in order to strengthen the ability of governments to tax the very rich, who often take advantage of tax loopholes to avoid paying taxes, as revealed in a report by the Institut des Politiques Publiques in France.
For the time being, governments are unable to agree on how to implement the initiative. However, a minimum tax of 2% on the 3,000 richest taxpayers could potentially raise 235 billion euros a year(European Tax Observatory).
The 4 types of executives facing CSR challenges
Colette Ménard, Scientific Director of the Stim research group, proposes a typology of managers according to their level of effort and risk-taking in the face of CSR challenges.
Optimizers: have neither the will nor the need to adopt a CSR policy. Their objective is to maximize profits.
Performers: only take risks that, once calculated, will pay off in the long term. Invest in R&D exclusively for financial gain.
The supporter: interested in CSR from a risk investment perspective, looking for new growth drivers rather than new ways to adapt their business model.
The game changer: Rarer, these are the entrepreneurs who "break established codes" by taking major risks, and who completely renew value chains with innovative ideas and techniques.
CSRD: companies struggle to adapt to dual materiality
The European Financial Reporting Advisory Group (Efrag) recently published a report analyzing companies' CSRD compliance practices. It shows that the notion of double materiality, and in particular impact materiality, poses adaptation difficulties for the departments responsible for the subject.
The innovation of the European directive is the double materiality: both financial and "impact" (on the environment, for example). According to the report, the latter "is more likely to be affected by the lack of specific data and methodologies".
In other words, companies generally have to move forward in a state of limbo, lacking the tools to reliably and efficiently collect the most relevant impact data.
Thursday, August 1: the day of overtaking
On Thursday August 1, the Earth consumed all the resources it is capable of producing in one year. The planet's "biocapacity", compared to the intensity of human productivity, provides the NGO Global Footprint Network to identify this "day of overshoot".
The date on which human activities deplete the Earth's biocapacity has fluctuated considerably since the 1970s, when it was still set on December 29. This year, it is 1 day earlier than in 2023.
This trend reflects the inertia of the global economic production system and the difficulty that governments have in regulating it. In spite of our declared determination and sometimes very ambitious political measures, the planet's resources remain overexploited, with a consequent impact on ecosystems and the climate.
Protecting biodiversity means protecting humanity
Scientist and ecologist Sandra Lavorel, winner of the 2023 CNRS gold medal, talks to Le Monde about the essential role biodiversity plays in the well-being of human societies. Indeed, the major sectors involved in food production are heavily impacted by a decline in biodiversity: fishing and agriculture, for example.
The scientist refers to the "sixth extinction crisis of biodiversity", 80% of which is thought to be caused by humans, due to their intensive use of land and sea.
Finally, she asserts that without rich biodiversity, it will be very difficult to feed all mankind properly in the future. "It will be more difficult and more expensive to produce food", which is also a public health challenge.
Are carbon credits ineffective?
The SBTi(Science Based Targets Initiative) has taken a position on the ineffectiveness of carbon credits in combating corporate emissions. The SBTi's stance comes against a backdrop of controversy, with SBTi staff and NGOs criticizing it for considering the use of carbon credits as part of its taxonomy.
They are opposed to the use of carbon credits, deemed "inefficient" and seen as a potential "risk" in slowing down companies' transition to carbon neutrality.
At the heart of this condemnation lies a strong criticism of the carbon offset mechanism, which is liable to turn into veritable greenwashing. Especially since the scientific consensus has long been clear: "carbon credits should not be used to offset fossil emissions" (Doreen Stabinsky, member of SBTi's technical council).
Heatwave arrives in France... during the Olympics!
While France seemed to be escaping the heat waves that hit most countries around the globe, it was during the Paris 2024 Olympic Games that the heatwave decided to arrive. A danger for outdoor workers as much as for athletes, subjected to sometimes extreme weather conditions.
A recent report by the International Labour Organization (ILO) concludes that, worldwide, the number of workers exposed to excessive heat is on the rise.
In the same report, we learn that "heat stress is an invisible and silent killer that can quickly lead to illness, heat stroke or even death". This is a real challenge for companies to adapt and protect their employees from such occupational hazards.
Slight rise in employment of disabled people
Agefiph, an association that promotes the professional integration of disabled people, has published its Observatoire de l'emploi et du handicap, an annual scorecard updated in collaboration with INSEE.
Their first finding is that, despite a slowdown in economic activity, the unemployment rate for disabled people is holding up well (12%), and that their activity rate (45%) and employment rate (39%) are slightly up on 2022.
However, the recruitment rate for people with disabilities has fallen in 1 year (-6%). In comparison, the rate for the population as a whole is -4%. However, this decline is offset by the fact that they remain well maintained in employment.
These figures reflect the encouraging work carried out by the company and its businesses to integrate everyone into the world of work, although there is still much to be done.
A revolution in battery recycling
Scientists specializing in chemistry and materials science at Rice University have revolutionized the way lithium batteries are recycled. Thanks to their innovation, it is now possible to recover up to 98% of the precious metals contained in these energy reservoirs!
A flash Joule heating (FJH) method, which heats the used batteries to 2,500 Kelvin, enables a chemical reaction to separate the materials cleanly and at low energy cost.
With demand for lithium-ion batteries exploding, the democratization of such a technical advance would significantly reduce their environmental impact. "More efficient and less costly", this method should rapidly gain authority around the globe.
Companies determined to better finance sustainable solutions
Sony Professional Displays and Solutions Europe has published a study highlighting the very positive willingness of companies to invest in green solutions. While the study focuses on companies' willingness to adopt them, rather than their actual commitment, it does at least reflect a shift in corporate priorities.
In fact, the results show that the majority of French and European boxes would be prepared to pay a 20% surcharge for "sustainably manufactured audiovisual products". This figure rises to 50% for almost half of them.
Finally, the study reveals that 38% of companies surveyed take sustainability issues into account "right from supplier selection and price negotiation". An encouraging figure in a context of increasing normative and economic pressure.
The sources
Novethic "Taxation of the ultra-rich: an unprecedented agreement at the G20".
Courrier cadres "Face à la transition écologique, découvrez 4 typologies de dirigeants" (in French)
Novethic "CSRD: the difficulties of impact materiality pointed out by Efrag"
Sustainable news "Overshoot Day": on Thursday, humanity consumed all that the Earth can produce in a year".
Le Monde, Interview with Sandra Lavorel, July 27, 2024
L'info durable "Carbon credits judged "ineffective" by leading corporate climate target label"
Novethic "The heatwave is taking its toll on the Olympic Games, but also on workers, who are increasingly exposed."
Carenews "Employment rate of disabled people up slightly".
RSE Magazine "Batteries: 98% of metals can now be recycled!
RSE Magazine "Companies are ready to pay a high price to become greener".
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