Are the ESG commitments of CAC 40 companies up to the mark?

As it has every year since 2020, the Responsible Investment Forum (FIR) has closely scrutinized CAC 40 companies regarding their ESG commitments, and the results are mixed.

The FIR, which brings together investors such as Caisse des Dépôts, FFR, MAIF, and AG2R La Mondiale; asset managers such as Amundi, Allianz GI, AXA IM, BNPP AM, and La Française; consultants (Morningstar, France Invest, etc.) and members of civil society, sent ten written questions to the 40 largest companies by market capitalization on the Paris Stock Exchange, addressing the three pillars of ESG (environmental, social, and governance) during their annual shareholder meetings. 

This year, the topic of telecommuting was replaced by the stock buyback policy, which must be clearly defined and apply to as many employees as possible in order to improve value sharing. 

Each question was scored on a scale of 0 to 3. The overall score decreased from 1.33 points last year to 1.11 points this year. This decline is primarily due to stricter evaluation criteria for the questions, a change advocated by the FIR. FIR President Nathalie Lhayani emphasizes that responsible investors demand that companies develop detailed and precise strategies commensurate with the challenges of sustainability, taking into account the urgency of climate change, massive disruptions to ecosystems, and rising inequality. 

As in previous years, the FIR notes a higher level of maturity in environmental matters compared to social and governance issues. Two areas are particularly neglected by large companies: fiscal commitment and responsible employee savings plans. L’Oréal and Veolia top the rankings, with an overall average of 1.9 points. L’Oréal stands out in particular on the issues of climate, biodiversity, living wages, employee savings plans, and responsible lobbying. Veolia receives the highest score for executive compensation, share buybacks, and employee savings plans. Michelin ranks third. 

In contrast, Eurofins Scientific (0.1 out of 3), ArcelorMittal, EssilorLuxottica, LVMH (owner of *Les Echos*), Publicis, and Thales are at the bottom of the rankings. In terms of themes, Pernod Ricard ranks first on environmental issues, followed by Schneider Electric and L’Oréal, tied for second place. On social issues, Veolia leads, followed by Michelin, L’Oréal, and Schneider Electric. Finally, AXA and TotalEnergies stand out in the area of governance.