CSR was initially developed as a voluntary approach, but has gradually developed a regulatory, legal and normative framework in France and Europe.

Today, we can differentiate between different types of CSR frameworks:

• The regulations and standards that frame CSR;
• Legal obligations and prohibitions related to the various themes of CSR.

Several laws or CSR standards exist. They are to be distinguished from obligations and prohibitions, since they do not constitute an obligation, but regulate CSR. In this article, we invite you to discover the main CSR standards, laws and regulations, in France and internationally.

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Internationally - The ISO 26,000 standard

The ISO 26,000 standard is an international reference standard, published in 2010, for companies and organizations that are committed to operating in a socially responsible manner.

It is based on 7 central pillars:

1. Governance

2. The rights of human beings

3. Working conditions

4. The environment

5. The loyalty of practices

6. Consumer issues

7. Local development and communities

Unlike other well-known ISO standards, it is unique in that it is not open to certification. This is because it contains guidelines and not requirements. In particular, this standard makes it possible to:

• Define an internationally recognized framework, for organizations that want to adopt socially and environmentally responsible behavior.
• Clarifying the concept of social responsibility by defining principles and by helping businesses and organizations to transpose them into concrete actions.

The ISO 26,000 standard can be used as a cross-cutting CSR framework or as a methodology for the continuous improvement of the CSR strategy and operational options.

It is also (and above all) on this standard that many other standards/certifications are based, such as the Lucie Label or B Corp for example.

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In Europe - The CSRD

The CSRD (Corporate Sustainability Reporting Directive) is a European directive aimed at improving financial flows in favor of sustainable activities.

It provides a framework for extra-financial reporting at European level, i.e. the way in which companies report their consideration of environmental, social and governance issues. It succeeds the NFRD (Non-Financial Reporting Directive), which applied to large companies in the European Union (EU) since 2014. The DPEF (Extra-Financial Performance Declaration) was, for its part, the version of the NFRD for French companies. The CSRD sustainability report replaced the DPEF (Extra-Financial Performance Declaration).

CSRD creates a common framework for all businesses, ensuring that all aspects of CSR are addressed comprehensively and in a standardized manner. This approach allows a reliable comparison between European companies, thus strengthening transparency and identifying those who adopt a genuine CSR approach compared to those who practice greenwashing.

Note: in order to reduce the reporting burden on businesses, new measures have been announced by the European executive concerning CSRD. Initially, the companies concerned must meet at least 2 of the following 3 criteria:

• More than 250 employees ;
• 25 million euros in balance sheet ;
• 50 million euros in turnover.

Small and medium-sized companies listed on a regulated European market have the obligation to comply with it.

Following this announcement, the reporting requirements will only apply to large companies with more than 1000 employees, with a turnover of more than 50 million euros or a balance sheet total of more than 25 million euros.

Finally, the evolutions also lie in the Two-year deferral (until 2028) reporting requirements for companies that are currently required to produce a report from 2026 or 2027 and listed SMEs with an expected entry into force in 2027.

To find out more about these new measures, you can refer to the European Commission website.

Also to read: The CSRD Directive: What is it?

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In France - A pioneer country in CSR

The term CSR appeared in the 90s in France with the first definitions of sustainable development.

The French legislative framework follows the main guidelines of the ISO 26000 standard, the objective of which is to increase the transparency of companies on the environmental and social impact of their activities.

France is now a world leader in terms of Hard Law on CSR (very strict legislative framework) with increasingly ambitious and binding laws.

• La NRE law (New Economic Regulations of 2001) requires companies listed on the stock exchange to publish an extra-financial report every year in which they must describe the environmental and social consequences of their activity and their governance.
• La law against discrimination in hiring and at work (2008): Any employee or candidate for any type of job is protected by the Labor Code (art. L.1132-1). This law prohibits any distinction based in particular on: origin; sex; morals; morals; orientation; sexual identity; age; marital status; pregnancy; genetic characteristics; belonging or non-belonging, true or supposed, to an ethnic group, nation or race; political opinions; a nation or a race; political opinions; orientation; sexual identity; age; marital status; pregnancy; genetic characteristics; belonging or non-belonging, true or presumed, to an ethnic group, nation or race; political opinions; union or mutual activities; religious beliefs; physical appearance; family name; place of residence; health status; disability.
• La Grenelle II law (2011) extends the NRE law to all companies with a turnover of more than 100 million euros or employing at least 500 employees.
• This obligation also applies to businesses with more than 250 employees. Since January 1, 2023, these actors must carry out a complete carbon footprint (scopes 1, 2, 3).
• La Law on energy transition for green growth (2015) sets out obligations for measuring and reporting environmental impacts, in particular on energy consumption, the circular economy and food waste. It is the first law in the world to encourage institutional investors to publish ESG (Environmental, Social and Governance) reporting on their activities.
• La Duty of Care Act (2017) makes France a leading country in terms of CSR. Parent companies and contracting companies must be more transparent about their ecological footprint. Companies with more than 5,000 employees in France must now publish a vigilance plan to prevent and fight against environmental, social or corruption risks related to their activities as well as those of their partners (subsidiaries, subcontractors and suppliers in France and abroad).

Namely: As part of the Omnibus project, the European Commission is proposing, among other measures, to postpone the application of sustainability due diligence requirements for the largest companies by one year (to 26 July 2028) for the largest companies (stream).

• La Law for business growth and transformation (PACTE) of 2019 has a triple objective: to facilitate the growth of companies from their creation to their transfer; to achieve a better sharing of the wealth created by companies with their employees; to include companies in an approach to protecting the environment.
• The RE tertiary decree (2020) impacts all trades in the building value chain. All companies concerned must pay particular attention to the carbon footprint of their activity and have sufficient data, in order to enable the contracting authority to switch to materials and construction methods that emit less emissions.
• La anti-waste law for a circular economy (AGEC) by 2020 aims to change consumption and production patterns and to move to the circular economy by 2040. This regulation aims in particular to eliminate all single-use and disposable plastic packaging.
• La Mandatory declaration of employment for disabled workers (DOETH) of 2020: every company of 20 employees and more is required to employ disabled workers (OETH) up to 6% of its workforce. She must also submit yearly a statement on the obligation to employ disabled workers (DOETH). When it does not meet this obligation, the company must pay a annual contribution.
• La Climate and resilience law (2021) reinforces the respect of France's environmental commitments and includes several themes including production and work. This regulation should allow production models to be aligned with the national low carbon strategy (SNBC) and the national biodiversity strategy 2030 (SNB).
• La Rixain law (2021) to accelerate the participation of women in economic and professional life of 2021, includes several measures aimed at greater equality between women and men in companies. For example, its article 14 establishes an obligation of balanced representation between women and men in the management positions of large companies.
• The Greenhouse gas emissions balance (BEGES) is a document that serves as an environmental assessment and diagnosis, especially for businesses. It is mandatory for all companies with more than 500 employees, legal entities under public law with more than 250 employees and communities with more than 50,000 inhabitants. Since July 2022, scope 3 emissions have been taken into account in the balance sheet. It is therefore necessary to consider the company's direct, but also indirect, emissions. The calculation method used is then based on physical or monetary emission factors.

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You now know the legal framework of CSR, so change can take place within your company!

Find out how our solutions can help you address and maximize your sustainable impact today, and contact an expert Komeet.

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