The CS3D Digest #33
Ripple Research
Ripple Research works at the intersection of data science, behavior change, and social impact.
Welcome to the 33rd edition of The CS3D Digest, a dedicated newsletter by Ripple Research and your weekly compass for navigating conversations that matter in the corporate sustainability landscape. Our goal is simple—to keep you informed about the latest developments in the Corporate Sustainability Due Diligence Directive (#CSDDD) space as we further our understanding of it.
Read our previous editions to catch up, and subscribe for future updates!
Today's focus: Italy's investigation of Armani and Dior for labor violations, class action lawsuit against Lululemon over misleading sustainability claims, environmental groups' legal letter to airlines for alleged greenwashing, GRI-IFRS Foundation partnership for sustainability reporting standards, and PwC survey highlighting CRED readiness amongst companies.
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What are we reading?
We've employed our proprietary AI tools to curate the most engaging news about CS3D and related regulations. Our focus extends beyond what's trending at the moment to showcase headlines that are fueling meaningful conversations around the world.
Italy’s Competition Authority has launched an investigation into luxury fashion brands Giorgio Armani SpA and LVMH’s Christian Dior over alleged unfair commercial practices. The probe focuses on claims of possible labor violations within the supply chains of these luxury fashion brands, where workers were reportedly subjected to inadequate wages, excessive hours, and substandard working conditions. This investigation is part of Italy's broader efforts to combat unlawful business conduct in the fashion industry. Last month, the Milan court placed a Dior unit under judicial administration for a year over unethical supply chain practices. Similar measures were imposed on an Armani manufacturing unit for alleged exploitation of workers.
Lululemon is currently embroiled in a class action lawsuit filed in a Florida district court, alleging deceptive practices related to its 'Be Planet' sustainability campaign. The lawsuit, spanning 53 pages, accuses the athleisure giant of misleading consumers by portraying itself as environmentally conscious while allegedly causing significant environmental harm. Lululemon's greenhouse gas emissions have more than doubled since launching the campaign in 2020, contrary to its stated goals of reducing environmental impact over 5-10 years. If found guilty of greenwashing practices, Lululemon could face penalties of up to 3% of its global profits for each year of misleading advertisements.
Prominent environmental groups, including ClientEarth, Fossielvrij, and Reclame Fossielvrij, are challenging airline companies over allegations of greenwashing in their sustainability claims. In a jointly issued legal letter, these groups argue that airlines are misleading passengers by using largely unsubstantiated claims of 'sustainable aviation fuels', 'offsetting', and 'net zero by 2050'. They advocate for stringent regulations akin to those on tobacco advertising to curb what they perceive as harmful greenwashing practices in the aviation industry. This follows a precedent-setting case where KLM was found to have misled consumers with ambiguous advertisements about offsetting pollution impacts from flying. Despite legal rulings, many airlines, including major carriers like Ryanair, Lufthansa, and British Airways, continue to promote these misleading messages, potentially facing legal consequences under EU consumer law and scrutiny from regulators.
The Global Reporting Initiative (GRI) and the IFRS Foundation have strengthened their collaboration to create a more integrated sustainability reporting framework. This initiative builds on their Memorandum of Understanding from 2022 and aims to align the GRI Standards with the International Sustainability Standards Board (ISSB) Standards. The partnership seeks to develop a comprehensive and cohesive sustainability reporting system that meets the information needs of both investors and a broader range of stakeholders. This includes reporting on impacts, risks, and opportunities related to biodiversity and ecosystem services, among other areas. The ISSB and GSSB (Global Sustainability Standards Board) are working together to identify common disclosures and align their standards where possible. An initial step involves a methodology pilot combining the GRI 101 Biodiversity Standard with the ISSB’s upcoming project on Biodiversity, Ecosystems, and Ecosystem Services.
领英推荐
The PwC 2024 Global CSRD Survey reveals that nearly two-thirds (63%) of companies express high confidence in their readiness to comply with the new Corporate Sustainability Reporting Directive (CSRD) set by the EU. Among the findings, 79% of companies headquartered outside the EU and 74% within anticipate that CSRD will prompt greater integration of sustainability considerations into their decision-making processes. This reflects a significant shift towards sustainability as a core business priority. The survey also highlights how CSRD is influencing the decision-making processes of corporate leadership, as a significant majority (76%) of respondents believe that CSRD will lead to greater consideration of sustainability in strategic business decisions.
Voices from this week
??Auret Van Heerden, Founder & CEO at Equiception Business and Human Rights , explores the intersection of labor rights, consumer protection, and green claims laws in light of Italy's investigation into Armani and Dior for labor violations.
??Andrew Griffiths, Director of Policy & Corporate Development at Planet Mark , shares concerns over greenwashing and ethical sustainability practices in advertising after Havas lost its B Corp status due to a partnership with Shell.
??Veronica Robledo, Global Coordinator at WWF , emphasizes the importance of comprehensive EUDR compliance and encourages companies to exceed regulatory standards by fostering collaborative efforts and addressing root causes of deforestation in supply chains.
??Wolfgang Blau, Global Managing Partner at 博然思维集团 , highlights the strong push from over 80 NGOs to exclude carbon offset credits from corporate net zero targets, citing concerns over their impact on genuine emissions reductions.
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