Consolidate your knowledge of sustainable development and Corporate Social Responsibility
Get to know Societe Generale’s CSR approach
Identify courses of action to implement
CITIZEN ACT – SEASON 2011-2012
Summary Sequences: 1. Validate and share one ’ s understanding of sustainable development: The sustainable development tribunal 2. Define the main CSR issues for a financial establishment (including corporate and investment banking, retail banking, asset management, investment management and services, specialised financial services): The “ sustainable development ” bank CITIZEN ACT – SEASON 2011-2012
Sustainable development, facts and assessment …
Validate and share one ’ s understanding of sustainable development:
Do we need global degrowth? No, just economic growth in developing countries and global demographic growth.
Economic growth consumes excessive energy but is necessary for social progress. To soften the phenomenon requires development to be “dematerialised”, i.e. it needs to consume less resources.
IPCC objectives: halve global greenhouse gas emissions compared to 1990 levels
French objectives: Factor 4, i.e. cut greenhouse gas emissions by -75% (divide them by 4) by 2050, or -3% a year. In the USA, the target should be Factor 10.
Climate change is upon us, and society needs to adapt .
1. Responding to climate change P. Energy efficiency: using high-performance technologies Reduction in Greenhouse Gas (GHG) emissions: solutions do exist Positive Energy buildings LED lighting Factor 10 Cogeneration Factor 5 Wood burners Electric cars Soft mobility Heating: -1°C -7% GHG Recycled paper: Factor 2 Moderation: inhabitants’ lifestyle Renewable energy All of these solutions have to be implemented; none of them are sufficient on their own .
Help developing counties with their infrastructure projects
Access to financial products would provide leverage for activity (microfinance)
Better global and national governance
Development policies (infrastructures, R&D, training, insertion, etc.)
Economic development has, on average , improved social conditions. China and India are catching up with the most developed countries. Sub-Saharan Africa has not benefited from global growth (32% of the population are undernourished) In some developed countries , inequalities are increasing (USA: between 2000 and 2007, the number of people living in poverty increased from 31 million to 38 million) Worldwide average life expectancy Map showing UN member nations’ life expectancy at birth in 2006
CSR is not incompatible with profitability, on the contrary:
Staff motivation and health
Innovation with suppliers
Ignoring CSR means running the risk of losing everything!
It ’ s not a company ’ s job to “ save the planet ”
However, companies do have an impact on our planet
clients, employees, suppliers, local inhabitants, etc.
resources, ecosystems and biodiversity
Corporate Social Responsibility is about striving to reduce the negative impacts and develop the positive contributions
1. Corporate involvement P. examples Risks & Opportunities approach
1. Corporate involvement P. Notion of the company’s wider responsibility Investors profitability, risk control Environment Reduction in impacts, preservation of natural resources Suppliers Responsible sourcing Clients, consumers Information, security, quality Staff, unions Employment, diversity, security Communities development, dialogue, security The company’s stakeholders express certain expectations For the company, these are Risks and Opportunities
Kofi Annan said that companies aren’t being asked to change their business, just to carry out their business in a different way Government & local authorities compliance, reporting
2. Good Governance P. Instigating a CSR approach means seeking to take environmental, social and economic aspects into account
To take these aspects into account, the company has to implement management practices that focus on stakeholders:
Identification of stakeholders
The company retains the responsibility of its arbitrage
clients employees suppliers local inhabitants charity associations unions schools & colleges media Economic efficiency Social equality Respecting the environment Fair Liveable Viable Sustainable
More transparent sales practices vis-à-vis clients (subprimes)
Risk management, taking the long term into account, which are at the very heart of a bank’s responsibility
Give banks back their pivotal role in the way the economy operates, re-legitimise their role
Equal treatment of stakeholders: make financial products accessible to all
Support for business development
Promote the development of responsible practices
Investments in “green” products, innovative products
Development of new markets
Support for more solidarity-based economic models
Restore the bank’s image
2. The bank’s responsibility P. A bank’s responsibility is not limited to its direct impacts… … it is a factor of market confidence … it includes the impact of products (financing, investments, etc.) … and access to products for people in difficulty
Societe Generale group best practices P. The Group’s CSR strategy Dialogue with stakeholders Dynamic staff management Taking CSR issues into account in our businesses Optimising the impact of business on the environment and on society Values / Ethics History / Culture Corporate governance Internal control and risks Compliance setup