Ksapa | May 2025

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EDITORIAL

The annual general meeting season is in full swing for many companies. A crucial moment when the future of ESG strategies and their impact on society is at stake. Companies face a decisive choice between ideological and business transformation approaches. Decision-making based on ideology that runs counter to scientific truth, for example, reveals serious governance issues and even demonstrates clear incompetence among the leadership involved. On the other hand, if purely economic trade-offs prevail over lateralized ESG issues, then the onus is on the advocates of these criteria to better demonstrate their added value.

The controversy surrounding Diversity, Equity, and Inclusion policies is intensifying especially in the US, generating contradictory resolutions at shareholder meetings. Responsible shareholder rebellion is clearly manifesting, as seen at BP where nearly a quarter rejected the chairman's re-election to protest the pivot toward fossil fuels. These climate-conscious shareholders prefer to maintain the course of energy transition despite the headwinds.

The clarification of ESG approaches is necessary, even healthy. It demands deeper integration of environmental, social, and governance criteria into companies' operational realities. Facing new transparency rules and the growing anti-ESG movement, responsible investors must redouble efforts to demonstrate their strategic relevance. Our expertise supports decision-makers in this complex environment, while our globally deployed operational programs offer lasting solutions in a profoundly changing world.

In fact, ESG is not about pleasing stakeholders without really knowing why. Rather, it's about arming and adapting companies with the levers they need to remain competitive today and tomorrow. And that's what we keep doing alongside you.
 

Farid Baddache, CEO

IN THE SPOTLIGHT

Beyond ESG Ratings: A Strategic Approach to Sustainability
In our blog this month :  AGMs signal ESG questionnaire season, where rating agencies shape corporate sustainability practices globally. The OECD's "Behind ESG Ratings" report reveals important methodological limitations worth considering. Smart companies focus on stakeholder impact, not just scoring systems. This creates authentic sustainability initiatives that drive meaningful business value. Re-evaluate your approach for transformative long-term results. More in this article. 
Towards More Inclusive Carbon Finance?
The need to foster the emergence of economic systems that are not only sustainable and resilient – but also regenerative for both the environment and the social fabric – is becoming increasingly compelling. This requires adopting a multi-dimensional approach, working on different dimensions of impact at the same time, but also bringing together stakeholders from different backgrounds – public, private, investors & civil society – around common objectives that allow externalities to be valued. Here's how. 
ESG: Moving Beyond Buzzwords to Real Impact
The integration of Environmental, Social, and Governance (ESG) criteria has evolved from a niche consideration to a mainstream business imperative across operations and supply chains. Research and regulations demonstrate its growing adoption among Chinese corporations, establishing ESG as a truly global concept. However, the real challenge lies not in adopting ESG principles but in transforming them from compliance checkboxes into genuine drivers of sustainable and responsible performance. This article explores how organizations can harness ESG’s true potential to create lasting positive impact while building resilient, future-proof businesses.
Defense and ESG: Beyond the False Dichotomy
The rising global conflicts and increased defense spending have created an apparent contradiction for ESG-conscious investors. While defense investments are surging—global military expenditure reached US$2443 billion in 2023, up 6.8% from 2022—many ESG funds remain hesitant to engage with the sector. This tension raises a critical question: Is combining defense and ESG truly impossible, or are we framing the discussion incorrectly? This article explores how principled approaches can reconcile these seemingly opposing forces.
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