Sustainability: A Driver of Competitiveness and Long-Term Viability for Businesses

Sustainable transformation is no longer a peripheral regulatory option; it is becoming a central issue for organizations’ economic performance and survival. At the Tennaxia Connect event, Solène Garcin-Charcosset, Director of the ESG/Carbon Consulting Division at Tennaxia, moderated a key panel discussion alongside Philippe Kunter, Director of Sustainability and CSR at Bpifrance, and Julien Duquenne, Head of Sustainable Solutions for the Île-de-France region at LCL. Amid the urgent need to act in the face of mounting crises, evolving requirements from banking regulators, and the necessity to adapt business models on the ground, this session demonstrated that sustainability is fundamentally redefining competitiveness, resilience, and strategic management within companies.

Why Sustainability Is Emerging as a Compass for Performance

We are living today in a complex and paradoxical world, marked by a certain trend toward regulatory rollback in Europe, even as systemic crises show no signs of abating. The 2022 energy price crisis, the blockade of the Strait of Hormuz, and the increasing frequency of extreme weather events: warning signs are piling up at a rapid pace. This was the key observation reiterated at this conference: the urgent need for action is clear to all and demands that companies become increasingly resilient.

In this context, CSR is undergoing a radical transformation. Long viewed through the lens of ethics, morality, or personal convictions—sometimes championed in isolation by CSR directors—it is now becoming a true compass for performance and resilience. This shift is now largely reflected in the growing involvement of financial stakeholders, who have placed sustainability at the center of strategic discussions.

From Macro Strategy to On-the-Ground Tactics: “Season 2” of CSR

Sustainability has reached a major operational milestone. Julien Duquenne summed up this transition by announcing the launch of “Season 2” of CSR, a phase that is resolutely tactical and grounded in the field. The first phase, which was highly top-down and prescriptive, focused primarily on compliance with major global macroeconomic scenarios, such as the 2015 Paris Agreement.

Today, the focus has shifted directly to the inner workings and driving forces of businesses. This tactical approach requires financial institutions and executives to conduct a concrete analysis of the impact of climate change at each individual site:

• What does this mean for the company's value chain and specific geographic footprint?
• How do these disruptions affect current economic metrics?
• To what extent is the organization able to look ahead and anticipate these changes in its business model?

Transition plans can no longer be abstract concepts approved in a corner of the room during an executive committee meeting; they must be implemented with great agility on the ground to ensure that companies remain competitive in the face of fierce domestic and international competition.

Action as an Anti-Anxiety Measure: Bpifrance’s Support Strategy

For Philippe Kunter, in the face of an uncertain future and shocks that will inevitably grow in intensity, taking action is the best remedy for anxiety. Bpifrance has come to terms with the fact that these disruptions—whether related to climate, public health, or biodiversity—are not temporary side effects, but permanent structural realities that must be culturally integrated.

To prevent entrepreneurs from feeling isolated, the public bank is now implementing concrete support strategies for businesses ranging from startups to large corporations, including small and medium-sized enterprises (SMEs) and mid-sized companies. This approach is based on three fundamental pillars:

• Accelerators: Programs run in partnership with the regions to help businesses advance in terms of knowledge, business practices, and the sharing of experiences.
• Strong Communities: Networks of committed entrepreneurs, symbolized by the Green Rooster for the ecological and energy transition, or the White Rooster for health.
• Consulting and Assessments: Localized support to develop action plans (such as decarbonization plans), carried out in close collaboration with leading expert partners such as ADEME and the OFB (French Office for Biodiversity).

Philippe Kunter reiterates a golden rule: this support must be a long-term commitment. You can’t build anything on one-off actions. Resilience requires being a solid partner who stands by entrepreneurs over the long term.

The Major Risk of Inaction: The Insurability of Business Models

One of the most striking messages from this roundtable concerns the direct cost of maintaining the status quo. A major risk is now emerging and overshadowing the multitude of traditional financial concerns: the insurability of businesses. France has adopted an officialclimate change adaptation pathway that projects a +4°C scenario by 2100. In light of these physical risk assessments, some insurers are already beginning to withdraw from certain regions or refuse to provide coverage.

"No insurance, no financing." — Julien Duquenne

This pragmatic reality is redefining the role of banks. If a company fails to demonstrate that it has implemented a rigorous adaptation plan to secure its infrastructure or its supply of raw materials, it runs the risk of losing its credit insurance, which will automatically block its access to bank financing.

This trend is being strongly driven by regulatory authorities. The European Central Bank (ECB) and the European Banking Authority (EBA) now require banks to map and measure the ESG risks (physical risks and adaptation risks) in their portfolios, while demonstrating how they are concretely supporting their clients’ transition pathways. Non-financial risk has definitively become a major financial risk factor that will dictate the future allocation of capital and resources.

Maintaining Europe's Lead: A Must for Supply Chains

When asked about France’s and Europe’s position on the international stage, the speakers highlighted the robustness and maturity of the European non-financial framework, despite contrasting global trends. As exemplified by China—the world’s largest polluter but also the leader in the rapid rollout of renewable energy—opposing forces are colliding.

Europe, for its part, is navigating a transitional period, seeking to reconcile the ambitious goals of the Green Deal with recent political efforts to streamline regulations. Nevertheless, thanks to the development of cutting-edge financial instruments (green bonds, social bonds, and sustainability-linked loans), Europe and France maintain a clear structural lead.

The closing message to business leaders is unequivocal: we must not let up. In an economic landscape where all supply chains are interconnected, small businesses work closely with major contractors. Facilitating the technical adaptation of their business models (such as the historic shift from gas to electricity, for example) and strengthening their operational resilience are no longer burdens to be endured, but essential conditions for remaining relevant in tomorrow’s economy.