Lubricant Industry ESG Thematic Report, 2022

Sustainability Assessment, Policies & Regulations, ESG Issues, Infrastructure Developments, Company Profiles, Benchmarking, SWOT, Company ESG Disclosure Scores

The average ESG disclosure score for the lubricant market is between 55% and 65%. Our proprietary Environment, Social, and Corporate Governance (ESG) scoring framework analyzed 65 parameters across ESG, as represented in the methodology section of this document. Royal Dutch Shell, British Petroleum (BP), Chevron, and 11 more market leaders were part of our research. Three out of five companies we researched scored above the average industry score. However, four market leaders need to focus more on ESG reporting and transparency as they scored well below 50%.

For More Details: https://astra.grandviewresearch.com/lubricant-industry-esg-outlook

Environmental insights

Lubricant comprises less than 10% additives and 90% base oil (like petroleum fractions, called mineral oils). In rotating machinery, lubrication is crucial for efficiency and durability. Lubrication reduces friction between machine parts and enables them to move smoothly in a given direction. There is a negative impact of lubricant on the environment, as it causes serious contamination of soils and groundwater, as well as accumulates in plants and animal tissues. There are various measures or technologies used by companies globally for the sustainability of lubricants. One of the main alternatives to petroleum-based lubricants is bio-based lubricants, which can help reduce environmental impact and create green companies. 

Social insights

Broadly, social metrics represent an assessment of risks that a company might experience from human capital and community, both. The parameters that are considered in this category include not only the employee turnover rate but also health & safety parameters, including injury rates, OHSAS certifications, employee engagement programs, training, and community development, among others. Among the companies within the sector, Idemitsu Kosan ranks highest on the social pillar, with a score of around 70%. The company has institutionalized robust human rights monitoring mechanisms not only within its own operations but also across the operations of its entire supply chain.

Governance insights

The governance aspect within the purview of ESG assessment is one of the most important foundation stones of a company, which includes various metrics, including business ethics, board structure, financial transparency, anti-corruption, and insider trading, among others. As per Grand View Research’s ESG scoring model, Chevron ranks the highest in corporate governance among its peers operating within the lubricants sector. The company has the highest number of independent directors (over 90% of the board comprises independent directors), which enhances corporate credibility and governance standards in the eyes of investors and consumers. Chevron has also institutionalized one of the best-in-class ethics platforms that manage any form of misconduct within the company.

Request for Free Demo: https://astra.grandviewresearch.com/lubricant-industry-esg-outlook/request/rs1