Les Ateliers du Futur

🚨 IFRS is Sinking into Obscurantism… ⬇️ To our great regret, since 2022, the IFRS Foundation has chosen to prioritize extra-financial reporting not to assess the impact of companies, but rather the risks faced by companies, their shareholders, and their bankers due to their (non)sustainability. 💡 In the banking and insurance sectors, this risk-based approach competes with that of regulators, which is far more robust! 🚨 Today, the IFRS Foundation is proposing yet another step backward: excluding from climate reporting the risks arising from emissions linked to derivatives and insured emissions! This is a surprising retreat, given that just last September, during the Transition Implementation Group meeting, IFRS staff had explicitly advocated for keeping them within the S2 reporting scope (source). Since then, no official meetings of this implementation group have taken place… Truly exemplary! Our comments: 👉 Removing derivatives from the scope of analysis creates a major loophole in emissions and risk exposure measurement, as it will become easy to swap green assets for brown ones via derivatives, generating yield pickup, emissions, and transition risk. 👉 The derivatives issue is complex and calls for an ad hoc methodology. The only justification given by the ISSB in its Basis for Conclusion on IFRS S2 was the lack of a reliable method to estimate emissions… It’s been 10 years since the Paris Agreement was signed—surely that was enough time for the industry and standard setters to develop one! IFRS resources should be used to accelerate progress, not to exclude critical factors. 👉 Insured emissions have been at the heart of major controversies for insurers—especially in the US—ranging from misadvising on financial products to insuring oil tankers, large energy corporations, and polluting industries. Excluding all these risks from S2 reporting is simply irresponsible! ⬇️ In short, when it comes to risk assessment, influence-prone bodies like IFRS and PCAF lag far behind regional and national regulators such as the ECB, EIOPA, BDF, and ACPR. Their weaknesses include: 👉 A complacent self-assessment, a weak imitation of Pillar 2 in Solvency II and Basel frameworks (adverse scenarios, impact estimation…), 👉 Publications that omit the most inconvenient elements, falling well short of Pillars 1 and 3 of S2 and Basel. 🚨 Devoid of any impact assessment and weak on risk evaluation, this purely voluntary ISS reporting framework stands little chance of competing with the more comprehensive regional supervisory standards when it comes to banks and insurers. What a waste of resources, while impact remains neglected in ISS! #corporatesustainability #Efrag #climateaction

🚨 Threats to the CSRD and CS3D are serious, so we have decided to make our voices heard by Ursula von der Leyen. 🚀 Seeing the Future means understanding that: 👉 Europe’s energy independence is essential to its sovereignty.Dependence on fossil fuels makes us vulnerable to political pressure from other countries, at the expense of our prosperity and control over our collective future.  👉 Delaying our decarbonization process only prolongs this strategic vulnerability. 👉 The climate transition in line with the Paris Agreement aligns with Europe’s strategic interests. 💡 Some European countries that have yet to transpose the CSRD are a perfect illustration of this vulnerability. 🚨 Past strategic mistakes do not justify ignoring the benefits of a European strategy adapted to our climate and geostrategic environment. Backing down would weaken us in the long run—on all fronts. #EUCommission #CorporateSustainability #ClimateAction

The CSRD and CS3D are strategic for Europe’s climate transition and economic sovereignty! 🚀 Europe’s energy independence and economic prosperity are directly linked to the climate transition. Today, several countries (in the East, the West, and the Middle East) still use fossil fuels as a political leverage—or to fuel an economic or military war chest. In response, Europe must urgently accelerate its shift to renewable energy and the electrification of its industrial, commercial, and domestic activities. This is not a choice but a necessity. 💡 These fundamental principles are at the heart of the European Green Deal and were reaffirmed by President Ursula von der Leyen in her State of the Union address on July 18. They are essential to meeting the carbon neutrality commitment by 2050, as defined by the Paris Agreement, and will soon be integrated into the next version of the European NDC. We must remain firm and consistent in upholding these commitments. 🫵 The CSRD and CS3D directives are therefore pillars of the European strategy. 🏆 Companies play a central role in decarbonization. This is why the CSRD and CS3D directives are crucial: they establish a structured regulatory framework that compels businesses to take responsibility and fully integrate the climate transition into their economic models. 💶 With the entry into force of the CSRD and the adoption of its delegated acts, the financial sector is also engaged in this process through the SFDR, CRD6, and the Solvency II reform. This means that banks and insurers—including non-European institutions operating in Europe—will have to account for climate risks in their investment models. 🚨 Let’s not back down in the face of misinformation about the CSRD and CS3D, particularly concerning SMEs and mid-sized companies: the principles of proportionality and materiality assessment are designed to ensure that reporting efforts are aligned with the stakes at hand. 🚨 Instead, let’s correct the strategic mistakes of those who refuse to adapt to a world that is evolving—while global competitors, for their part, are integrating climate change into their strategies. Being a leader means being responsible…

🎉 The United Kingdom responds to our Call for Action from late 2024! 💡 Ahead of COP 29, Les Ateliers du Futur finalized their second 2024 Climate Review (Quarterly Climate Review, accessible here: [https://lnkd.in/eqpHThU5]). This was created to provide global political leaders with insights from our Call for Action, urging greater commitment in key directions. 🏆 Keir Starmer, the UK Prime Minister, was exemplary during COP 29 (see: [https://lnkd.in/eY5kJTc4]). 🏃♂️ He extends this achievement by responding to us in a remarkable way. This reminds us that the media, in the interest of objectivity, could: ⬇️ Give a little less weight to the theatrics of climate denial obscurantism, which fosters anxiety and demotivation, ✅ And give a little more attention to exemplary behavior that inspires and drives progress for the climate! 💡 Finally, let us highlight the remarkable title of this ministry, which clearly reflects its key objectives: Energy Security and Net Zero. This should urgently be translated into multiple European languages!

🚀 Happy New Year 2025 to the Climate and to all! A new year, without a doubt, even more critical than 2024, since: 🚨 We are getting closer to the 2030 milestone by which we must reduce our global CO2 emissions by 1.6 Gt/year in order to respect Net Zero in 2050 (i.e. +1.7 degrees of warming compared to the pre industrial), 🚨Many uncertainties are emerging in a context of renewed geopolitical tensions. 💡 But opportunities exist as highlighted in our Calls to Action to world leaders this year: https://lnkd.in/eqpHThU5. 🏆 May wisdom and courage prevail!

🚀 Excellente année 2025 au Climat et à tous! Une nouvelle année, sans nul doute, encore plus critique que 2024, puisque: 🚨 Nous nous rapprochons du jalon de 2030 d’ici lequel il faut abattre de 1,6 Gt/an nos émissions mondiales de CO2 afin de respecter le Net Zéro en 2050 (soit +1,7 degré de réchauffement par rapport à la période pré industrielle), 🚨De nombreuses incertitudes émergent dans un contexte de tensions géopolitiques renouvelées. 💡 Mais des opportunités existent comme souligné dans nos Appels à l’Action aux dirigeants mondiaux de cette année: https://lnkd.in/eqpHThU5. 🏆 Puissent la sagesse et le courage l’emporter!

🚀 2e volet de ce bilan anniversaire, celui du domaine de la Prévention.

🎄Un anniversaire à Noël !

⚡ China to Tighten Control on Domestic Emissions! A shift in focus has been announced in China, aligning with our recommendation to prefer absolute emission reduction targets over intensity targets: 👉 On August 2, the General Office of the State Council of the PRC announced that, as part of preparing the new strategic plan for 2025-2030, new rules will be established to better control the country's emissions. ✅ The emission control system, previously based on emission intensity, will be complemented by rigorous control of the total amount of emissions. ✅ Emission quotas will be integrated into the planning of national economic and social development. ✅ Action plans will be developed with "enhanced support from laws and regulations" to ensure the country reaches its carbon peak before 2030. ✅ Regular monitoring and analysis of carbon emissions will be conducted. Industries showing a rapid increase in emissions will be closely monitored and alerted if necessary. ✅ The national emissions trading market will be expanded. ✅ Emission accounting rules and carbon scores for products will be introduced. It is worth noting that China, now the world's largest emitter of greenhouse gases, has set a goal of achieving carbon neutrality by 2060 and is a global leader in renewable energy investments. The current five-year plan, which runs through 2025, aims for an 18% reduction in emission intensity and a 13.5% reduction in energy intensity. However, the country is on track to miss these targets, according to a report by the Centre for Research on Energy and Clean Air published this year. 💡 These new rules clearly aim to ensure that the emissions peak is reached before 2030. Good news! #climateaction

Emmanuel Macron, among the key messages to address to the world’s political leaders gathered for the Olympics, this one is super critical: 🚨 Climate Policies: The Collective of Nations at Odds with the Paris Agreement 💡 As part of our shadow Cops (Quaterly Cliltz Reviews), we have delved into the essential aspect of Public Policies (thanks Noel!). Under the Paris Agreement, all participating countries have established a Nationally Determined Contribution (NDC), except for three: Eritrea, Libya, and Turkmenistan. Most of these countries have complemented their NDCs with a Net Zero commitment by 2050 or beyond (China, India...), with the total of these Net Zero commitments covering 89% of global emissions. 🚀 Between the 1st generation of NDCs (published before 2020) and the 2nd generation (whose progress was assessed at COP 28 in Dubai), global commitments for 2030 have increased by nearly 10 GTCO2eq. It seems we are close to the global emissions peak. This universality and the extent of progress made highlight the virtuous nature of the Paris Agreement, even though it is non-binding, with its target and implementation monitoring, particularly through the COPs. However, these commitments remain largely insufficient to meet the Paris Agreement targets. 🚨 By 2030, projected emissions are still 20 to 24 GtCO2eq too high, for a current total of about 55 GtCO2eq. Of which 7 GtCO2eq is attributed to China, 1 to the United States, nearly 1 to the European Union, and 1 to India. 👉 To comply with the Paris Agreement and the 1.5°C target, NDC ambitions need to be raised, which is one of the elements of our Call for Action in this QCR #1 2024. However, the context of the invasion of Ukraine objectively hampers this direction by reallocating key resources for defense efforts and support for purchasing power in the face of inflation, away from climate preservation. Thus, the world's largest economies have recently backtracked on some essential measures for their climate policies. 👉 The next NDCs under the Paris Agreement are expected by February 2025. This led the UNFCCC, on March 14, 2024, to urge nations to build much higher ambitions. Obviously, we, Ateliers du Futur, also consider these NDCs critical for the 1.5°C target of the Paris Agreement, which must remain our goal. 🚀 Hence our Call for Action, with an international scope, which takes these observations into account, explores possible acceleration paths, and outlines the conditions for winning this challenge! Ursula von der Leyen, Kamala Harris, Joe Biden, Xi Jinping, Christine Lagarde, Jérôme Powell.