Guiding Small and Medium Enterprises towards Successful Corporate Social Responsibility Execution

In the realm of business, a shift towards sustainability is gaining momentum, with companies across Europe embracing Corporate Social Responsibility (CSR) strategies to foster a greener and more equitable future.

At a recent application workshop, participants were invited to consider the step-by-step construction of a CSR strategy, guided by a simulation involving a fictitious company. The event underscored the importance of this approach in navigating the complexities of ecological transition.

Dominique Thillaud, from Compagnie des Alpes, discussed the financial viability of this transition in the Alps. Thillaud emphasised the need for a balance between ecosystem preservation, resource economy, recycling, and financial commitments.

Wassim Daoud, CSR Director at Ponant, underscored the significance of organised resource identification and a pragmatic approach for achieving ambitious CSR objectives. He highlighted the need for a systematic and holistic approach, engaging all employees, activities, and production sites.

David Petrovic, General Director of Estémi, stated that CSR is a strategic development opportunity, not a regulatory constraint. Estémi, a French renovation group, began its CSR journey in 2017, prioritising issues and action plans, and engaging governance, employees, and all stakeholders in designing and deploying the CSR strategy.

Engaging external stakeholders, including suppliers, is crucial to ensure that CSR efforts create real value for both the company and society. This collaborative approach is particularly important for smaller companies, who, indirectly, are affected through their value chains.

The Corporate Sustainability Reporting Directive (CSRD) has expanded the number of companies subject to CSR reporting obligations in the European Union, affecting around 50,000 firms compared to just 12,000 before. The CSRD applies to larger small and mid-sized enterprises and is part of a broader regulatory framework in application of the European Green Deal.

The CSRD consists of three key pillars: standardization, measurability, and transparency, which form a robust defense against greenwashing. Prioritisation is a key success factor in selecting the themes on which the company decides to report, focusing on what is impactful and material to its business operations.

By structuring CSR efforts, the CSRD allows companies to realise economic benefits such as increased efficiency, resilience, and attractiveness. However, the data collection and consolidation process for CSRD reporting is complex, time-consuming, costly, and energy-intensive.

Catherine Piante from WWF France discusses the pressing need to protect Posidonia seagrass meadows, which act as natural carbon sinks and provide numerous ecosystem services. Naldeo, another company, focuses on water consumption, dependence on natural resources, energy competitiveness, CO2 emissions, protection of life and nature, and adaptation to climate change and physical hazards, addressing only projects that have a positive and significant impact within the taxonomy.

Marion Ringotte, CSR Manager of Estémi, highlights the importance of identifying the most important levers in implementing a CSR strategy and ensuring long-term commitment and cultural integration. A systemic and holistic approach to CSR is essential, with strong leadership commitment required to present the CSR strategy as an integral part of the company's general strategy.

The CSRD focuses on impact and value creation, encouraging companies to anticipate future developments and consider both macroeconomic and microeconomic factors. This forward-thinking approach is vital in shaping a sustainable and equitable future for all.

In the cooperative model, Nils Joyeux from Windcoop presents the use of cargo ships equipped with sails as a means of reducing CO2 emissions in maritime freight, contributing to the reduction of carbon footprint in the industry.

As we move forward, it is clear that CSR is not just a regulatory constraint, but a strategic development opportunity. By adopting a systemic and holistic approach, companies can not only comply with regulations but also create real value for both the company and society. The future of business lies in sustainability.