Two conditions are necessary to succeed in the ecological and social transitions that the world needs. On the one hand, ambitious public policies and on the other hand, the transformation of financial markets, these two factors must be able to operate in a synergistic manner on a global scale. These words are those of Emmanuel Faber to explain the preponderant place of the new accounting standards for reporting ESG Environment Social Governance in the construction of a more sustainable and more inclusive global economy.
However, is this enough? Even though all experts agree that the systemic effects of reporting to change the mechanisms of finance will take a long time to materialize, and that in Europe they will only cover a third of needs. Furthermore, the reporting obligation does not necessarily lead to a fundamental change in the behavior of companies. In fact, many are where the dominant paradigm still remains that of short-term profit, and CSR initiatives are often relegated to the background, treated as obligations or communication tools.
This is why a third condition is necessary to succeed in the ecological and social transitions that the world needs. It is that of the commitment of managers and governance to carry sustainability ambitions which place concern for people and the planet at the heart of the company’s values and strategic decisions. It is a cultural transformation essential to the emergence of more inclusive and more sustainable economic models. Some leaders understand this well. And have already chosen to include a purpose and social and/or environmental objectives in the statutes of their company. With this approach, these leaders drive a collective dynamic around a mission that gives meaning to activities beyond the sole search for profit. To support these committed and courageous leaders, French law created the status of “mission company”, within the framework of the PACTE law of 2019.
Therefore, by combining these two tools, which are the status of a mission company and the requirements for publishing informationns ESG, companies position themselves as credible actors in the transition. Together, these tools are a bulwark against accusations of mission, social or greenwashing because they help reduce the paradoxes linked to the coexistence of ambitious CSR strategies and a corporate culture still focused on short-term profit. There are therefore not two but three conditions necessary to succeed in the ecological and social transitions that the world needs. On the one hand, ambitious public policies, on the other hand, the transformation of financial markets, and finally the cultural transformation of corporate governance towards mission-driven companies.
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