From September 15 to 17, 2021, the PRODURABLE trade show was held in Paris. The PRODURABLE is Europe's largest gathering of players and solutions for the sustainable economy. In partnership with the French Ministry of Ecological Transition and Solidarity, as well as the Ministry of Territorial Cohesion, the PRODURABLE trade show collaborates with the main professional networks as well as the specialized media.
This is an opportunity for iQo to be present and share with you what we've learned from our various meetings and conferences over the 3 days.
At iQo, we believe in "Positive Impact "at the heart of our approach to consulting. We spoke to you about this in our our manifesto or in these articles:
A PRODURABLE trade show under the banner of the urgent need to regenerate our society
"We have 10 years, no more, to regenerate the world (...) Regenerating means reinventing, rethinking and sometimes, often, going back to basics, restoring meaning and getting back to basics".
It's with this phrase that the PRODURABLE trade show has chosen to highlight the theme of this 14th edition.
Through a series of plenary sessions, masterclasses, roundtables, keynotes and workshops, the PRODURABLE trade show offered the opportunity to delve deeper into the issue and present solutions around twelve thematic paths linked to the circular economy, the energy transition, sustainable mobility...
All week long, we'll be bringing you a series of 3 articles on the highlights of the PRODURABLE 2021 trade show.
Mobilizing the finance function in a "Positive Impact Business" approach
At first glance, associating finance and sustainability may seem contradictory. In fact, this association was not natural, and was only initiated a few years ago. And yet, finance is a key corporate function when it comes to a relevant and combined approach to "Positive Impact" in a necessarily capitalist economic environment.
Sustainable finance must meet 4 key challenges:
- How do you create value over the long term (and not just from a short-term profitability perspective)?
- How can we manage climate risk and the risk associated with the decarbonization of our economies?
- How can we offer brands, products, services and supply chains that are part of a sustainable approach?
- How to successfully implement an ESG agenda in the finance function?
On the specific subject of Supply Chain, we talked about sustainable development in this article Innovation in Supply chain : the latest trends.
Sustainable business is far more profitable for everyone involved. Not only company directors, but also shareholders are increasingly sensitive to this issue. The latter will no longer invest in a company if they do not have a transparent view of its CSR policy. transparent view of its CSR policy. Companies must therefore take on a new role: not just aiming for economic profitability, but going beyond it to become a tool for the common good.
Game-changing regulations for finance
Several regulations, already in place or to be introduced in the coming years, are encouraging companies to develop the monitoring of extra-financial information and KPIs by the finance function in connection with CSR:
- NFRD (Non Financial Reporting Directive) and DPEF (Déclaration de la Performance Extra-Financière) in 2018: the European directive on non-financial reporting introduced the obligation for companies to publish a declaration of extra-financial performance (DPEF) in the management report for companies with more than 500 employees, for listed companies with sales in excess of 40 million euros turnover, and unlisted companies with annual sales in excess of 100 million euros.
- The Green Taxonomy Directive in 2021/2022: this directive introduces financial and extra-financial indicators: green sales, green capex and green opex.
- CSRD in 2023: the Corporate Sustainability Reporting Directive aims to standardize non-financial reporting, increase the number of companies subject to the obligation and introduce more standardized verification of non-financial information. It is intended to replace the current NFRD.
The question of governance at the heart of discussions at PRODURABLE
Governance is also a key factor in this change, as the inclusion of CSR representatives accelerates the pace of change. To make extra-financial issues central to the company, it is necessary to profoundly rethink corporate processes and culture: extra-financial factors must inform strategic and operational decisions.
However, there are still challenges to be overcome in order to achieve greater convergence, particularly in terms of the information systems and tools used. Financial and environmental systems have difficulty communicating with each other, as they were never designed to do so. Taxonomy can therefore be a trigger for this convergence, as it imposes a dialogue between CSR and Finance. It also provides a framework that will convince companies that are less convinced and less advanced to embark on the path of CSR.
Finally, finance and CSR are concepts that need to feed off each other to create a virtuous circle. Financial and non-financial performance should not be opposed to each other, but rather combined, taking advantage of their complementary nature.
Extra-financial value is therefore becoming increasingly important, and KPIs need to be put in place to measure actions and set targets. To meet the growing demand from investors for KPIs and information on CSR, companies have adapted both by creating CSR departments and by providing a joint response worked out with the Finance Department.
To find out more about "Positive Impact" topics
The growing risks of Greenwashing and Purpose washing
The climate emergency and the search for meaning and responsible brands are driving companies to multiply their initiatives, not only to do no harm, but above all, to ensure that the environment is protected.
Tech For Good
Digital innovation at the service of social, health and environmental needs At iQo, we're convinced that today's tech players need to go further than ever before.
Banks face up to their positive impact transformation
Find out why banks need to step up their "Positive Impact" initiatives. Consuming ethically has become a widely shared concern for many people.
