Water and Wastewater Treatment Industry ESG Thematic Report, 2022: Astra ESG Solutions

San Francisco, December 20, 2022: With the world observing unprecedented challenges and the influence of climate change, the water and wastewater treatment industry size could be pronounced on the back of bullish investment in a sustainable future. Developments of environmental, social, and governance practices will help stockholders map impacts to their value chain, enable performance reporting and tracking and exhibit a corporate commitment to sustainable growth. Industry leaders are expected to shift their attention to the impact of water shortages, soaring prices, and surging regulations in their decision-making. Stakeholders are emphasizing 4R—reduce, reuse, recycle and reclaim—to streamline wastewater treatment and propel ESG compliance. Investors and consumers are poised to focus on the ESG profile and minimize operational risks amidst concerns about pollution, energy consumption, climate change, and the rising usage of chemicals. 

Water and Wastewater Treatment Industry ESG

The World Resources Institute forecasts a 56% deficit of freshwater by 2030, compelling businesses to propel the management of water and wastewater treatment. The prevalence of water pollution and its impact on global health has furthered the need for setting and achieving ESG goals. Sustainable wastewater management has gained ground amidst an uptake in wastewater generation. For instance, in 2021, Merck Group produced around 13.3 million cubic meters of wastewater, while discharging approximately 9.5 million cubic meters of freshwater in surface waters. The company aims to minimize possibly harmful residues in wastewater by 2030. The surge in municipal wastewater and the prevalence of sewage have prompted stakeholders to emphasize environmental, social, and governance pillars to keep up with the global trend. 

Read more form the Water and Wastewater Treatment Industry ESG Thematic Report, 2022, published by Astra ESG Solutions

Environmental Perspective

Investors, suppliers, and other stakeholders have prioritized the upsides of water treatment projects to minimize power consumption, reduce water use from the local supply, free up space and reduce off-spec discharge risk. Although the majority of Americans have access to safe drinking water, harmful contaminants, including copper, lead, and arsenic, have been found in tap water. Leading companies are expected to further their efforts to contain negative environmental impacts from chemical spills, wastewater discharges, or water quality violations. For instance, California Water Service Group asserts its customers saved 47.8 million gallons of water in 2021 with increased saving efficiency measures. The public utility company assesses treatments on an industry-wide level, conducts audits, and undertakes regular maintenance of wastewater treatment systems. 

ESG considerations have become a management priority with wastewater reduction slated to foster the company’s environmental profile. Xylem, Inc. has set a bullish goal to recycle 100% of its wastewater by 2025. In May 2022, it introduced a smart wastewater treatment solution that can reduce operating costs and energy use by 25%. In April, the company announced an infusion of USD 20 million to foster innovative water and industrial technologies. Besides, Ecolab claims it helps customers manage 1 trillion gallons of water through the use of real-time data, management software tools, innovative technologies, and treatment services. It also aims to conserve around 300 billion gallons of water annually by 2030. The company has also designed a wastewater treatment station in France to minimize water discharge to the city sewer network by approximately 80%, enabling the facility to reuse around 20 million gallons of water each year. 

Social Perspective

Stakeholders have furthered their efforts on workforce development, diversity, equity, safety, and health. Sustainable investors are likely to respond to the expanding scope of the social pillar as businesses and technological advances become interconnected. ESG-focused company Xylem remained at the helm with a roughly 80% score. The growth trajectory is partly attributed to robust human rights policies. Meanwhile, Ecolab has furthered its commitment to propel diversity and equity through its 2030 Impact Goals. The company contemplates augmenting its management-level gender diversity to 35% and management-level ethnic diversity to 25%. It has emphasized educating interview teams, recruiters, and hiring managers on bias, diversity, and inclusion. For instance, while 35% of all new management-level hires in the U.S. were people of color in 2021, globally around 38% of all new management-level hires were women.

Industry participants are striving to retain and attract talent—Veolia invested in an ambitious policy as the average number of hours of training per employee touched 21 in 2021. It aims to minimize the frequency of workplace accidents from 6.65 in 2021 to 5 by 2023. Besides, Ecolab hired 8,905 new employees in 2021, while the average turnover rate was pegged at 17.4%. Meanwhile, Xylem provided 12.61 hours of training per employee in 2021 and has introduced employee training programs, such as Employee Network Groups, Ignite, and Watermark. It has strengthened workplace safety by introducing safety alerts and expanding digitally connected safety programs. According to Xylem Sustainability Report 2021, 49 of its facilities witnessed zero accidents in 2021, along with Querétaro, Mexico, São Paulo, Brazil, and Bogotá, Colombia facilities achieving five years without any recordable cases. 

Understand how key industry participants like Xylem, Inc., Ecolab, Inc., and Veolia Environment S.A. are identifying, analyzing and mitigating ESG risks and ensuring compliance

Governance Perspective

Leading players have pushed the bar with growing traction for strong corporate governance that bolsters accountability, underpins the long-term interest of shareholders, and propels brand position. To illustrate, Xylem's Board of Directors (end of 2021) comprised ten members, and all except CEO were independent. The soaring significance of ESG encouraged the organization to form the ESG Reporting Working Group to advise on, review and guide the evolution of its approach to ESG disclosure. It has also adopted 2025 Sustainability Goals to provide 35% of women with leadership roles by 2025. 

Robust corporate governance is paramount to growing and sustaining businesses as companies seek to comply with core values and commitment to ethical standards and board diversity. For instance, 5 out of 12 California Water Service Group directors are women and the organization has 10 out of 12 independent director nominees. The utility company showed traction for a host of public policy initiatives in 2021, including the provision of up to USD 55 billion to address water infrastructure challenges.  

According to Astra’s scoring model, Dupont de Nemours, Inc. was placed at the top in terms of corporate governance. The trajectory is mainly attributed to the governance standards and credibility among stakeholders—more than 90% of the board comprises independent directors. Furthermore, it has set the Sustainability Oversight Committee to review and approve sustainability policies and initiatives and oversee the Strategic Leadership Council’s work. In doing so, the company has embedded ethics and sustainability across global supply chains to propel a circular economy, climate change, and diversity. 

Well-established players and new entrants are expected to propel innovations and sustainability portfolios in treatment, water reuse, and -loss. Stakeholders are touted to expedite technological advancements, mergers & acquisitions, and commercial and social innovations. To illustrate, in August 2022, Veolia announced it inked a merger agreement with Vigie SA (previously known as Suez SA). While the actual merger took place in January 2022, the final merger was scheduled for October 2022. 

With industry leaders emphasizing the reuse and recycling of wastewater, prevailing dynamics are likely to reshape the ESG landscape. An emphasis on cost reduction in wastewater treatment plants could help customers keep up with their operational budget. For instance, digitization is likely to help companies cash in on water, cost, and energy efficiencies. Advanced solutions can provide real-time data to offer recommendations and suggestions to optimize aeration and water usage. Accordingly, the water and wastewater treatment market size could garner USD 41.8 billion by 2030. Bullish demand for wastewater treatment technologies and rigorous regulations will provide tailwinds to the global landscape.

Browse more ESG Thematic Reports from the Utilities Sector, published by Astra - ESG Solutions

About Astra – ESG Solutions By Grand View Research

Astra is the Environmental, Social, and Governance (ESG) arm of Grand View Research Inc. - a global market research publishing & management consulting firm.

Astra offers comprehensive ESG thematic assessment & scores across diverse impact & socially responsible investment topics, including both public and private companies along with intuitive dashboards. Our ESG solutions are powered by robust fundamental & alternative information. Astra specializes in consulting services that equip corporates and the investment community with the in-depth ESG research and actionable insight they need to support their bottom lines and their values. We have supported our clients across diverse ESG consulting projects & advisory services, including climate strategies & assessment, ESG benchmarking, stakeholder engagement programs, active ownership, developing ESG investment strategies, ESG data services, build corporate sustainability reports. Astra team includes a pool of industry experts and ESG enthusiasts who possess extensive end-end ESG research and consulting experience at a global level.

For more ESG Thematic reports, please visit Astra ESG Solutions, powered by Grand View Research

Need expert consultation around identifying, analyzing and creating a plan to mitigate ESG risks related to your business? Let Astra know your concerns and queries, and we can help!

Solar Energy Generation Industry ESG Thematic Report, 2022 | Astra ESG Solutions

San Francisco, December 13, 2022: The Growth of the solar energy generation industry will depend on the proactive and relentless efforts of forward-looking companies to navigate the risks posed by climate change. Current and predicted issues expected to arise due to climate change have brought a paradigm shift in the ways businesses assess risk, and plan and deploy resources. Sustainability, security compliance, safety, business growth, and innovation have become instrumental to progress toward implementing best practices in environmental, social, and governance portfolios. The trend for green, sustainable, and safe pathways is likely to pay off and help make better economic sense in the long run. Prominently, solar energy generation has garnered popularity as one of the cheapest forms of electricity and will be a solid proposition to tap potential in energy generation.

Solar Energy Generation Industry ESG

Read more form the Solar Energy Generation Industry ESG Thematic Report, 2022, published by Astra ESG Solutions

In common parlance, solar energy plays an invaluable role in boosting sustainable development energy solutions. Solar energy generation applications are likely to play a vital role in fostering an environmentally friendly energy agenda. In essence, solar panels have gained ground to generate clean power and contain the cost of electricity. To illustrate, in June 2022, the U.S. Solar Buyer Consortium announced an infusion of USD 6 billion to bolster the domestic solar panel ecosystem with the supply of around 7 GW of solar modules per year from 2024. It is worth mentioning that the Solar Energy Industries Association asserts that the U.S. installed 23.6 gigawatts of solar capacity in 2021. The federal investment tax credit, along with renewable energy credits, advanced technologies, reduced installation costs, and financing arrangements, offers promising opportunities for stakeholders to emphasize solar power as an indispensable part of the ESG goals across the U.S.

Exelon Corporation Harnesses the Potential of ESG

With environmental issues spurring governance and social practices, investors are curious to know how businesses minimize their carbon footprint. Stakeholders are responding to these trends through ESG strategies. Several companies have come to the fore to inject funds into renewable energy to propel ESG sustainability goals. For instance, the Exelon Corporation reportedly avoided 78 million metric tons of GHG emissions with its zero-carbon nuclear generation. The company witnessed 161 million MWh zero-carbon generation, around two-fold more compared to the next largest producer. In July 2022, Exelon released the 2021 Corporate Sustainability Report and noted that it poured USD 6.6 billion in energy infrastructure in 2021 and is contemplating raking in USD 29 billion from 2022 through 2025. On the environmental front, the company claims to be working to minimize impacts on biodiversity and watersheds. It has also spurred sustainability through corporate governance—assessing accountability and risk.

Understand how key industry participants like Exelon Corp., E.On S.E., and Duke Energy Corp. are understanding and mitigating ESG risks and ensuring compliance

Does your business participate in the global energy sector? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices.

E.ON SE at Pole Position in ESG Disclosure; Emphasizes Green Electricity

Sustainability strategies and disclosures have come on the horizon amidst ESG being tasked with the goal of decarbonizing the global economy. When it comes to ESG disclosure, E.ON SE is at the helm, followed by Exelon Corporation and Equinor ASA. It is gearing to be climate-neutral by 2040 and its corporate governance is increasingly linked to its ESG management aspects. CDP, an international association of investors that independently assesses the transparency and detail of companies’ climate reporting, lauded E.ON as a Supplier Engagement Leader in 2021. In a bid to bolster the green-power community across Europe, E.ON Home, an energy management app, was introduced in the U.K. Similarly, it claims over 10 million customers received certified green electricity products in 2021.

Incumbent players have reinforced their efforts to underpin the decarbonization of Europe. The company contemplates investing €1 billion (around USD 1 billion) annually through 2026 to significantly boost the infusion of funds into energy networks. It is geared to foster sustainable homes, work, and lifestyles with innovative solutions, including self-generated green electricity. It aims to install approximately 5,000 new charging points through 2026. The Germany-based company plans to pour €27 billion into energy transition through 2026. Furthermore, the company has also upped investments to provide green energy to take carbon neutrality and sustainability to the next level. For instance, in April 2022, E.ON inked a deal with Solar Market to create Green Cloud to offer green energy to corporate customers across Hungary.

The competitive landscape alludes to an increased focus on ESG framework and sustainable policies from forward-looking companies, such as E.ON SE, Adani Green Energy Limited, Equinor ASA, Nextera Energy, Inc., Exelon Corporation, Duke Energy Corporation, Solaria Energía y Medio Ambiente and ReNew Wind Energy (Jath) Limited. Besides, organic and inorganic growth strategies have become pronounced, underscoring solar energy generation market share. To illustrate, in November 2022, Equinor announced the acquisition of BeGreen, a Danish solar developer, to propel the solar PV portfolio. Meanwhile, in April 2022, the Norway energy giant forayed into the Australian market through investments in RayGen to provide impetus to solar energy. In November 2022, Equinor expressed contemplation to augment investment in renewables by two-fold and that renewable energy will account for approximately 20% of the company’s investments in 2022. Amidst the trilemma of the Russia-Ukraine war, energy security, and affordability, emphasis on renewable energy sources could be a game-changer with considerable environmental upsides in solar energy generation.

Browse more ESG Thematic Reports from the Energy Sector, published by Astra - ESG Solutions

About Astra – ESG Solutions by Grand View Research

Astra is the Environmental, Social, and Governance (ESG) arm of Grand View Research Inc. - a global market research publishing & management consulting firm.

Astra offers comprehensive ESG thematic assessment & scores across diverse impact & socially responsible investment topics, including both public and private companies along with intuitive dashboards. Our ESG solutions are powered by robust fundamental & alternative information. Astra specializes in consulting services that equip corporates and the investment community with the in-depth ESG research and actionable insight they need to support their bottom lines and their values. We have supported our clients across diverse ESG consulting projects & advisory services, including climate strategies & assessment, ESG benchmarking, stakeholder engagement programs, active ownership, developing ESG investment strategies, ESG data services, build corporate sustainability reports. Astra team includes a pool of industry experts and ESG enthusiasts who possess extensive end-end ESG research and consulting experience at a global level.

For more ESG Thematic reports, please visit Astra ESG Solutions, powered by Grand View Research

Need expert consultation around identifying, analyzing and creating a plan to mitigate ESG risks related to your business? Let Astra know your concerns and queries, and we can help!

Hydrogen Generation Industry ESG Thematic Report, 2022: Astra

San Francisco, December 12, 2022: Like-minded stakeholders, innovators, and entrepreneurs are counting on hydrogen generation to combat climate change and dramatically minimize CO2 emissions. Well-established players are prioritizing decarbonized hydrogen to propel the green portfolio. The environmental, social, and governance (ESG) performance has received an impetus with bullish government policies. In April 2021, U.S. President Joe Biden announced a robust goal of minimizing greenhouse gas emissions by 50-52% by 2030. Green hydrogen—created from the electrolysis of water—has gained ground as the most environmentally friendly fuel to produce energy without emitting CO2. In common parlance, hydrogen is a major enabler of clean energy transition and produces zero emission at the point of use. 

Hydrogen Generation Industry ESG

Exponential demand for green hydrogen has boded well for ESG policies amidst the fuel warranting significant storage, transportation, and production infrastructure. The U.S. has proposed Climate Disclosure Rule requiring public companies to make GHG-related disclosures. Besides, it mandates public companies to disclose Scope 1, 2, and 3 emissions. The disclosure rule is poised to prompt and incentivize industry participants to infuse funds into greener energy. Hydrogen could be a silver bullet to minimize GHG emissions. Industry players are gearing up to provide a sustainable future with cost-effective, dependable, and accessible green hydrogen energy. 

Read more form the Hydrogen Generation Industry ESG Thematic Report, 2022, published by Astra ESG Solutions

Environmental Perspective

As stakeholders emphasize a clean hydrogen economy to boost productivity, reduce carbon footprints and minimize operating costs, bespoke hydrogen generation solutions could bring a paradigm shift globally. Investors are aligning their businesses with environmental performance, with companies striving to inject funds into clean energy technologies to foster energy efficiency and cut climate-changing emissions. Even though hydrogen is a low-carbon energy source, transportation of hydrogen using internal combustion engine trucks contributes to GHG emissions. These trends have compelled leading companies to invest in green hydrogen. In 2022, Plug Power acquired Joule Processing to bolster its green hydrogen ecosystem and reduce the logistics networks and hydrogen infrastructure cost. The company plans to augment the green hydrogen production to 200 TPD by 2023 across North America. 

Leading players aspire to infuse funds into clean energy technologies to reduce fleet emissions. Linde asserts around 83% of GHG emissions could be reduced from transportation using renewable diesel. The company has implemented an environmental management system in line with ISO 14001—the international standard for EMS—for the management of atmospheric emissions and waste, to leverage pollution prevention and control, management of environmental impacts from transportation, and protection of biodiversity and natural resources. Around 99% by weight of the raw materials used in 2021 were renewable raw materials, such as produce hydrogen, oxygen, gaseous nitrogen, carbon dioxide, and argon. It has an audacious target to cut absolute GHG emissions by 35% by 2035 and claims it helped customers do away with over 88 million metric tons of CO2 in 2021.

Social Perspective

Investors prioritize community investment, diversity & inclusion, ethical supply chain, harassment-free workplace, and employee health. Prominently, these factors act as a marker shaping the future of business, creating resilient business plans, and cementing equality of opportunity. Linde has been at the helm with over 80% social score as it integrates sustainable strategies into business strategy. The company introduced the Global Giving program to infuse over USD 4 million into educational programs. The Board of Directors and CEO are accountable for social issues affecting Linde. Meanwhile, the CHRO oversees management and retention, talent sourcing, inclusion, and diversity. However, the global voluntary turnover rate was pegged at 6.7%, according to its Sustainable Development Report 2021.

Linde has furthered its efforts on a safe operating environment through investment in cutting-edge technologies. For instance, in 2021, the industrial gas company invested around 5 million hours in safety training for its contractors and employees. The company is leaving no stone unturned to promote gender diversity. It introduced a “30 by 30” gender balance goal intending to have 30% females at all professional levels by 2030. The company is emphasizing training for inclusion, business accountability, and strengthening the pipeline program to achieve the ambitious goal. 

IndianOil has propelled its recruitment strategy and equal opportunities policy to develop, attract and retain top talent from diverse backgrounds. According to its Sustainability Report 2020-21, the company hired 490 new employees; 90% of these hires were below 30 years of age, while 43 were female during the year. It also formulated Talent Vision and Strategy Framework for the 2021-24 period to foster learning, employee engagement, and workplace safety, among others.

Notably, the Indian giant rolled out the revamped employee satisfaction and engagement survey in 2021—Pratidhwani—to underscore engagement activities and understand the feedback and opinions of internal stakeholders. The company has also established reporting kiosk to report near-miss incidents. It conducts regular safety audits to comply with standard operating procedures, detect unsafe and hazardous acts, and analyze the effectiveness of safety systems. The energy major has developed Emergency Response and Disaster Management Plans (ERDMP) to streamline preparedness during fires, spills, leaks, explosions, and other risk scenarios. The Indian PSU asserts its 100% locations are equipped with ERDMP plans and performs liaison activities with central government agencies, including National Disaster Response Force (NDRF). Amidst strong safety policies, IndianOil recorded 8 cases of fatalities during 2020-21, a two-fold rise from 2019-2020.

Understand how key industry participants like IndianOil Corporation, Linde, PLC., and Air Products & Chemicals, Inc. are identifying, analyzing and mitigating ESG risks and ensuring compliance

Governance Perspective

Ensuring compliance with the rules, regulations, and laws has become a major prerequisite for sound corporate governance. NEL ASA published its first sustainability report in 2020 with the goal of 100% of executive management and other employees completing anti-corruption training by 2022. In September 2020, the company launched its whistleblowing channel—NEL Ethics Hotline. In the next month, it introduced the Nel Anti-Bribery and Corruption Policy and the Nel Competition Law Policy.

A transparent government structure is a vital cog in the governance pillar for sustainable growth. Companies such as Plug have set the goal of continuing the development of ESG governance to boost transparency, standardization, and consistency across the landscape. The CEO at Plug organizes weekly hall meetings with employees to share updates on initiatives and answer questions and queries. The company provided compulsory training on vigilance to eradicate corruption and bribery.

Air Liquide has propelled its sustainability portfolio, contributing to ESG commitments and creating positive impacts for climate, people, and health. In April 2022, the French company published its first Sustainable Development report, taking a giant leap toward transparency. In March 2022, the Group laid out a strategic plan—ADVANCE—to combine financial performance, environmental and societal performances. The company aims to augment the investments to around 16 billion euros (approximately USD 16.5 billion) from 2022 through 2025, with 50% earmarked for the energy transition.

The France-based company aims to increase the percentage of women among managers and professionals to 35% by 2025, up from 31% in 2021. The company has spotlighted an international, independent, gender-balanced board of directors. Prominently, 50% of its board are women and around 92% are independent members. In June 2022, the board of directors announced the separation of the roles of the Chief Executive Officer and the Chairman of the Board of Directors. 

With a strong case of independent directors in better-performing organizations, forward-looking companies have reinforced their governance profile. In essence, Linde’s 8 BOD are independent non-executive directors. The board has fostered its governance structure with a focus on, including but not limited to split roles of Chairperson and CEO, director independence, board effectiveness, ideal board committees, alignment with shareholder interests, shareholder outreach, limits to service, and board diversity. In 2021, the BOD included a new Sustainability Committee emphasizing clean energy initiatives and environmental aspects. During this period, the executive leadership team reviewed the ESG presentations prepared for the BOD. 

Does your business participate in the global energy sector? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices.

Governing bodies and other stakeholders are emphasizing sustainability development targets through innovations and decarbonization investments. In December 2021, the European Commission reportedly proposed an EU framework to boost hydrogen, decarbonize gas markets and minimize methane emissions. The European Network of Network Operators for Hydrogen (ENNOH) would be formed to underpin dedicated hydrogen infrastructure, interconnecting network infrastructure, and cross-border coordination. The new rule is expected to expand in two phases with access to the separation of hydrogen production, tariff setting, transportation activities, and hydrogen infrastructure.

Industry participants are striving to create a business model that enhances social, economic, governance, and environmental values. Well-established players are prioritizing hydrogen as a cornerstone of the energy transition. For instance, Air Liquide has earmarked 8 billion euros (around USD 8.25 billion)—over the next ten years—for the full hydrogen value chain, such as electrolysis, supply chain, carbon capture, and storage. It expects its hydrogen revenue to be pegged at 6 billion euros (approximately USD 6.2 billion) by 2035. In 2021, Shell initiated production at the electrolyzer with the 10 MW proton exchange membrane using renewable energy to produce up to 1,300 tons of decarbonized hydrogen annually. In January 2022, Shell New Energy was involved in a joint venture with Zhangjiakou City Transport to start a hydrogen electrolyzer in China with a 20 MW capacity. It expected the electrolyzer to render around 50% of the total green hydrogen supply for fuel cell vehicles during the Winter Olympic Games in the Zhangjiakou competition zone. The hydrogen generation market size garnered USD 129.85 billion in 2021 and could witness a 6.4% CAGR from 2022 to 2030. Soaring hydrogen demand and a surge in global spending on energy research will provide a quantum leap to the ESG efforts.

Browse more ESG Thematic Reports from the Energy Sector, published by Astra - ESG Solutions

About Astra – ESG Solutions By Grand View Research

Astra is the Environmental, Social, and Governance (ESG) arm of Grand View Research Inc. - a global market research publishing & management consulting firm.

Astra offers comprehensive ESG thematic assessment & scores across diverse impact & socially responsible investment topics, including both public and private companies along with intuitive dashboards. Our ESG solutions are powered by robust fundamental & alternative information. Astra specializes in consulting services that equip corporates and the investment community with the in-depth ESG research and actionable insight they need to support their bottom lines and their values. We have supported our clients across diverse ESG consulting projects & advisory services, including climate strategies & assessment, ESG benchmarking, stakeholder engagement programs, active ownership, developing ESG investment strategies, ESG data services, build corporate sustainability reports. Astra team includes a pool of industry experts and ESG enthusiasts who possess extensive end-end ESG research and consulting experience at a global level.

For more ESG Thematic reports, please visit Astra ESG Solutions, powered by Grand View Research

Need expert consultation around identifying, analyzing and creating a plan to mitigate ESG risks related to your business? Share your concerns and queries, we can help!