Pet Food Industry Banks on Regenerative Farming to Enhance ESG Performance

Creating a better world by using resources responsibly to preserve the environment and enhance communitie's health has become paramount in the pet food industry. Shareholders expect recyclable packaging and a dip in deforestation to remain catalysts. Industry leaders prioritize making the highest quality foods to run business with transparency, integrity and ethical behavior. Leading players could invest in identifying the ESG opportunities and challenges for the continued success of the business. The assessment of ESG dynamics, including product safety & quality, energy use, water use & management, waste management, employee well-being and responsible marketing, will reshape the global landscape. 

Lately, consumers have exhibited profound traction in assessing pet food’s health and environmental impact. Pet food manufacturers are likely to count on agriculture that is in line with the sustainable environment. Prominently, regenerative agriculture has come to the fore to help reverse climate change by restoring degraded soil diversity and rebuilding soil organic matter. 

Discover more regarding the practices and strategies being implemented by industry participants form the Pet Food Industry ESG Thematic Report, 2023, published by Astra ESG Solutions

Environmental Perspective

Pet food brands are pushing for regenerative farming that can make products sustainable by eliminating or reducing the use of chemical fertilizers, boosting cover cropping and expanding the nutrient density of crops. Incumbent players, such as Petco Health and Wellness Company have propelled their sustainability profile. For instance, in April 2021, Petco expressed its commitment to making 50% of its product sustainable. The pillars of Petco’s sustainability are sustainably sourced materials; responsible manufacturing; responsible packaging; sustainably sourced ingredients; and animal welfare. Leading players are well-positioned to emphasize reducing water usage and sustainable sourcing of pet food ingredients.

Social Perspective

Stakeholders have upped their focus on ensuring access to quality food, connecting to community resources, ensuring workers’ safety and prompting equitable treatment for all. J.M. Smucker mentioned in its 2022 Corporate Impact Report that it coordinated over 22,000 hours of employee training and development in 2021. As of December 2022, the American manufacturer announced that the direct purchase of liquid eggs, shell eggs and egg ingredients would be from cage-free hens. The company also suggested that it had partnered with Feeding America and Greater Good Charities in FY 2022 to donate over 23 million meals for pets and people. The food company propelled its employee benefits programs by providing access to pet insurance and child development centers. 

Is your business one of participants to the Global Pet Food Industry? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices.

Governance Perspective

A robust governance framework has become a yardstick to provide sustainable value creation. Transparency, engagement on climate action and efforts on human rights could augment the top-line and bottom-line growth with increased capital efficiency. At the 2021 AGM of Nestlé, its shareholders vouched for a detailed Net Zero Roadmap as the company is contemplating halving GHG emissions by 2030 and achieving net zero by 2050. In 2021, the Board created a Sustainable Committee to oversee strategies for diversity and inclusion and response to human rights due diligence program and climate change. The food giant has propelled its diversity profile—over 85% of management committee positions are held by local employees in the countries it operates. A concerted effort on governance can help companies strike the right balance in pursuing ESG goals.

Prominent companies have furthered their emphasis on technological advancements, product offerings, innovation and mergers & acquisitions to underscore their sustainability profile. For instance, in November 2020, Clearlake announced the acquisition of WellPet to expedite organic growth and boost value creation. The company will likely cash in on pet humanization and ownership trends. It is worth noting that the pet food market size stood at USD 94.76 billion in 2021 and is poised to witness around 4.4% CAGR through 2030. 

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

ESG Becomes Go-to-Strategy to Boost Brand Value in Online Tutoring Services Industry

An uptake in environmental, social and governance (ESG) investments in the online tutoring services industry has redefined the global landscape. The onslaught of the COVID-19 pandemic furthered the demand for online learning, a trend that gained ground globally. The choice of place to earn degrees and certifications has notably impacted the carbon footprint. For instance, adopting virtual learning led to a significant reduction in energy consumption across school buildings. Besides, it provides impetus to diversity, providing learning for all with internet access.

Although online tools play a part in reducing pollution, the emergence of digital pollution has augmented the carbon footprint. In common parlance, energy used to run devices and power the wireless networks lead to carbon dioxide emission. The rampant pandemic compelled students, tutors and parents to bank on virtual classes and redefined the education landscape. Demand for seamless online tutoring services has shifted the focus to ESG goals and performance. 

Discover more regarding the practices and strategies being implemented by industry participants form the Online Tutoring Services Industry ESG Thematic Report, 2023, published by Astra ESG Solutions

Environmental Perspective

Learning at home has become a trend among Gen Z and millennials across emerging and advanced economies. A notable reduction in pollution and emission from transportation has fostered the environmental profile of online education service providers. According to Bloomberg, almost 60% of kids take a car to school. Moreover, Ireland’s Environment Minister Eamon Ryan infers that a dip in parents driving their children to school by 30% would benefit everyone. Industry leaders are exploring opportunities to minimize environmental impact and emphasize sustainable operations.

In 2022, Chegg used the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard to perform its second annual greenhouse gas emissions analysis. Besides, its 2020 and 2021 inventories comprised scope 1 (direct emissions from energy generation, heating and cooling) and scope 2 (indirect emission emanating from purchased electricity) emissions. The company helped combat pollution and minimize waste by providing students with e-textbooks and textbook rental services.

Social Perspective

Edtech giants are providing a slew of personal development and wellness programs, including tuition reimbursement, health upsides, paid parental leave, student debt payment, professional leadership coaching, childcare credits and mental health support. Stakeholders are also promoting diversity, equity, inclusion, leadership succession, retention and employee engagement.

Several studies have noted that companies with employee diversity are likely to have above-average profitability. In October 2021, Byju’s, the Indian edtech multinational company, announced hiring AI and ML specialists in the U.S., the U.K. and India. It rolled out Byju’s Lab to cash in on the global talent pool and explore new technologies and innovative tools. A deeper assessment of diversity, equity, employee engagement and pay equity can notably influence social goals.  

Is your business one of participants to the Global Online Tutoring Services Industry? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices.

Governance Perspective 

A transition to the digital world to minimize energy consumption has underscored the significance of smooth corporate governance, ethical behavior, transparency, board diversity, executive pay, anti-competitive policies and corporate governance. According to Chegg’s ESG report 2021, 50% of directors are women, while 20% belong to underrepresented ethnic groups. Besides, 9 out of 10 directors are independent and the company asserts its executive pay practices are in line with shareholder interests. Edtech behemoths have fostered business activities to enhance quality education, good health, economic growth and reduced inequalities. 

Virtual education providers have bolstered their financial systems and propelled value relationships. For instance, in the Q1 Earning Release 2022, Nerdy announced 2022 EBITDA guidance for Q2 and the whole year, suggesting an infusion of funds into direct-to-consumer and institutional segments to boost “always on” learning solutions. In November 2022, The company claimed it had no debt with USD 106.4 million of cash on its balance sheet, alluding to sufficient funds to achieve adjusted EBITDA profitability by 2023 end. 

With schools and educational institutions leveraging online tutoring services to supplement traditional schooling, boosting product offerings and investing in innovations could be the go-to strategies. Integrating into the foundation of ESG could deepen the commitment to sustainability. To illustrate, in January 2022, Khan Academy joined forces with SBI Foundation to expedite last-mile access to education in Punjab, India and underpin content localization to enable students to learn in their language. These dynamics indicate the online tutoring services market could witness an impressive CAGR of 14.7% through 2030. 

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

Smart Cities Industry Strengthens ESG Policies; Emphasizes Smart Grids and Diversity

Burgeoning urbanization, technology advancements and emphasis on sustainability have opened avenues of growth in the smart cities industry. ESG policies have received an uptake as cities continue to grow in both number and population. According to the World Bank, the global urban population will surge to 6 billion by 2045. Technology advances have furthered digitization and companies expect smart cities to be catalysts for sustainable development. With cities grappling with climate change, ESG has become pivotal in complementing the applications of technologies and data to enhance city planning, accountability and engagement with citizens. 

The need for action against climate change has become imperative for a low-carbon society and to implement sustainable practices across the value chain. For instance, Singapore has implemented Green Plan to minimize the waste sent to landfills by 30% by 2030, plant one million more trees and quadruple solar energy deployment by 2025. 

A bullish ESG policy can provide a robust approach for stakeholders to analyze and address socio-environmental and governance challenges. In essence, strategic planning in line with national objectives, solid ESG regulation and regulatory compliance will remain critical to bolstering the brand position. For instance, real-time IoT data have become sought-after to help city governments in managing and monitoring environmental policies. 

Discover more regarding the practices and strategies being implemented by industry participants form the Smart Cities Industry ESG Thematic Report, 2023, published by Astra ESG Solutions

Environmental Perspective

The prevalence of greenhouse gas emissions in cities has reinforced the need to strengthen the environmental profile. According to the data cited in the UN specialized agency for ICTs, cities contribute over 70% of carbon emissions globally every year. Digital solutions, such as smart grids, have shown promising signs of reducing emissions and fostering a move towards a clean energy society. Smart grids with predictive analytics and real-time monitoring have gained traction to reduce pressure on aging infrastructure, integrate renewables and lower costs and minimize peak loads.

To illustrate, in December 2022, Siemens won a new contract for grid control and smart metering infrastructure in Egypt. The project, under the aegis of the Japanese International Cooperation Agency (JICA), is valued at EUR 40 million (roughly USD 43 million) and will implement state-of-the-art software to boost the stability, efficiency and reliability of the power grid while minimizing electricity distribution losses. Investments in smart grids could be a significant leap to implementing a sustainable practice across the value chain. 

Social Perspective

While the low-carbon future is paving the way to an environmentally friendly society, social facets, including diversity & inclusion, workplace safety and employee engagement, have become invaluable to leverage social progress. For instance, in ABB, 40.5% of early talent hires were women in 2021, with revised Group-wide guidelines for flexible work practices. Strategies to underpin social performance encompassing gender, age, ethnicity and sexual orientation have become pronounced. It is gearing up to increase the proportion of women in senior management roles by two-fold (as part of its Global Diversity and Inclusion Strategy 2030). 

The Switzerland-headquartered company also rolled out a gender-neutral parental leave program offering four weeks of paid leave for secondary caregivers and 12 weeks for primary caregivers. Besides, it received an employee engagement score of 74 out of 100 in its 2021 employee Engagement Survey. Moreover, over 7,600 ABB managers and other employees completed the “Interrupt Unconscious Bias” program.

Is your business one of participants to the Global Smart Cities Industry? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices.

Governance Perspective

An exponential rise in smart cities has put the spotlight on the governance pillar, including transparency, ecosystem governance, ethical practices, funding and supply chain management policies. Stakeholders are expected to focus on undergirding governance to help employees make ethical and fair decisions and provide a foundation for effective strategic leadership. For instance, AVEVA has an Audit Committee to monitor and oversee risk management & control; a Nomination and Governance Committee to review ESG, board composition and succession planning; a Disclosure Committee to decide if information should be disclosed to the market; and a Remuneration Committee to review board and senior management remuneration. In addition, the CEO regularly updates the board about the culture of wellbeing, inclusivity, developments concerning diversity, equity and inclusion and opportunity for employees and communities. 

Forward-looking companies strive to achieve carbon neutrality in their operations and foster responsible business practices and social cohesion. In October 2021, The City of London chose Nextech AR Solutions to provide a mini-metaverse experience at Harmony at London Wall Place. The AR-powered interactive artwork and music exhibitions will underscore inclusion as the metaverse will provide easy access to these experiences. It is worth noting that the global smart cities market size touched USD 1,090.64 billion in 2021 and will register a 24.2% CAGR from 2022 to 2030. 

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

Wine Industry Leaders Navigate Roadmap to Robust ESG Performance

Environmental, social and governance (ESG) has emerged as one of the core strategies in the wine industry to integrate sustainability into business goals and achieve sustainable growth. Environmentally friendly winegrowing practices have gained ground as sustainable vineyards continue to amass popularity. Wineries and vineyards have warranted social and environmentally responsible approaches to ensure soil, communities and industry health. An emphasis on water efficiency, pest management, energy efficiency, waste management and supply chain can foster sustainable viticulture.  

Of late, organic wine that does not have added sulfites to increase shelf life has come on the horizon. Since various synthetic products are banned in several countries, producers and farmers may be forced to seek organic farming. Moreover, biodynamic farming has stood out among winegrowers as it aims to balance and revive soil, farm and plant’s health. It can also enhance soil fertility and enable vines to flourish in a balanced ecosystem. 

ESG performance will hold prominence to protect diversity, minimize waste, produce healthy wines, ensure traceability, enhance transparency and boost job creation. Similarly, stockholders, shareholders and other stakeholders are expected to bank on ESG pillars to gain steam in the global landscape.

Discover more regarding the practices and strategies being implemented by industry participants form the Wine Industry ESG Thematic Report, 2023, published by Astra ESG Solutions

Environmental Perspective

Winegrowers are counting on environmental performance to preserve ambiance and negate the impact of climate change on wine production. For instance, regenerative agriculture practices have received an impetus to minimize tilling, enhance soil health and help bind carbon in the soil. Moreover, an increased need for water at wineries has furthered the demand for state-of-the-art water tracking devices. Vintage Wine Estates is contemplating using NASA data and AI to forecast water availability. The U.S.-based company has been reusing wastewater from wineries and using city graywater for vineyard irrigation.

Furthermore, in 2022, the company claims to have completed its first scope 1&2 carbon emissions calculations. It also adopted strategies, such as installing alternative energy, efficiency upgrades and streamlining tracking of energy use in real-time across wineries. Brands are likely to further their sustainability quotient and stay committed to a culture of care toward the environment.

Social Perspective

Wineries and vineyards with a focus on diversity, equity, inclusion and workplace safety can redefine the global landscape. Pioneering companies and other leaders have upped investments in human rights to eliminate discrimination and forced labor. By 2022, the Asahi Group spurred efforts to complete human rights due diligence at suppliers. The company formed a Diversity, Equity & Inclusion (DE&I) statement in the preceding year. It aims to propel the percentage of female representation of leadership positions to 40% by 2030, up from 22% in 2021.

The Tokyo-based company has put the spotlight on people-to-people connections globally. It contemplates launching the Environmental Think Tank to allow employees to implement proposed projects and help resolve regional environmental issues in Oceania. Besides, it could implement support projects for hops farmers, barley farmers and Campus Peroni. Promoting a culture full of opportunities and the well-being of employees can underscore social pillar, thereby strengthening brand position.

Is your business one of participants to the Global Wine Industry? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices.

Governance Perspective

Companies that prioritize transparency, good corporate governance and board diversity may have the edge over their competitors. The strategy can optimize the company’s performance, offer guidance for smooth management and recognize the organization’s legal obligations. Specifically, women comprised 58.3% of the Board of Directors at Pernod Ricard as of 30th June 2022, while 58.3% were independent directors and 42.8% were non-French Directors.

Meanwhile, Treasury Wine Estates has eight non-executive directors and has augmented focus on risk management frameworks and controls. The company has furthered its emphasis on tax governance to muster up stakeholders’ value, trust and confidence. It has adopted a low tax risk appetite, suggesting tax risks above the level mentioned in the risk management framework are managed by a robust mitigation plan. 

Incumbent players have emphasized minimizing carbon emissions and investing in renewable energy. For instance, the Asahi Group has set an audacious goal of transitioning all of its breweries to renewable energy-derived electricity by 2025 across Europe. On the other hand, Treasury Wine Estates opened a USD 165 million production facility in Barossa Valley, South Australia, to help manage climate change impacts on winemaking vintages. These trends indicate the global wine market could observe a healthy CAGR of 6.4% from 2021 to 2028. 

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

Healthcare IT Industry Banks on ESG for a Sustainable Future

The need for sustainable strategies to conduct business responsibly and ethically has prompted healthcare IT industry players to invest in ESG practices. Robust ESG policies can foster innovation, build trust, minimize risk, reduce costs and boost trust among stakeholders. Regulators and industry leaders are assessing the demand for ESG in the healthcare sector, which can play an invaluable role in enhancing healthcare access and fostering environmental justice, diversity and workplace safety. Prominent companies have furthered their emphasis on patient access, service distribution and quality of care with a focus on social issues and sound governance. 

Stakeholders, including patients, employees, shareholders and bondholders, expect ESG to have a compelling impact on the healthcare sector. Soaring demand to minimize environmental impact and bolster product quality, labor management, access to finance and human capital development have played a pivotal role in reshaping the industry. Moreover, good corporate behavior, anti-competitive practices and transparency have remained catalysts in the landscape. 

In a bid to bring medicine and vaccines to save and improve lives, increasing access to healthcare may partly depend upon a commitment to ESG performance. The prevailing dynamics can foster sustainable value for society and business. 

Discover more regarding the practices and strategies being implemented by industry participants form the Healthcare IT Industry ESG Thematic Report, 2023, published by Astra ESG Solutions

Environmental Perspective

ESG action integrated into business strategy has gained ground as climate resilience garners headlines to build future healthcare organizations. Low-carbon sustainable health systems have become the talk of the town amidst the healthcare sector being infamous as a major emitter of GHG and other pollutants. For instance, Philips has been at the forefront as it has aligned its goals with UN Sustainable Development Goal 13, “Take urgent action to combat climate change and its impacts.” Overconsumption of resources, pollution, waste and soaring demand for healthcare have furthered the need for strong ESG performance.

Philips focuses on a more agile and simplified operating model, supply chain reliability, patient safety, and quality. The company is also investing in products that consume less energy and materials and contain recyclable substances. Rising adoption of digital technology, shifting consumption patterns and transition to value-based care provide opportunities for leading players to underpin solutions that enhance people’s health and protect the planet. 

Social Perspective

Employee safety risks, soaring costs of care, access to healthcare and privacy & data security have spurred the need for a robust social pillar in business operations. Reported health disparities and the prevalence of behavioral and mental health issues have compelled organizations to infuse funds into digital technology in healthcare. For instance, WELL alluded to zero reportable data breaches in 2021 in its inaugural ESG Report.

Harnessing the insights and knowledge of a diverse workforce and a strategic approach to employee development and workplace inclusion need bullish social goals. Notably, 70% of senior executive team members represented a visible minority at WELL as of June 2022. Meanwhile, Cardinal Health has fostered its diversity, equity and inclusion efforts with the representation of a 71% female and 14% ethnically diverse workforce in its executive leadership team (according to its FY 2022 ESG Report). 

Is your business one of participants to the Global Healthcare IT Industry? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices.

Governance Perspective

Incumbent players have raised the bar with investments in corporate governance, board diversity, accounting, ethics and corporate behavior. An emphasis on ESG priorities can help build trust and make informed decision-making. Notably, the healthcare sector has evolving regulatory requirements, prompting prominent companies to underscore the regulatory aspect. In FY 2022, McKesson integrated regulatory excellence into its business strategy playbook as a major foundational discipline. It has also upped its investments in traceability and transparency. The company is gearing up for the next stage of the Drug Supply Chain Security Act (DSCSA), which is slated to be witnessed in November 2023. The prescription drugs are expected to be serialized in the U.S. and need to be traceable throughout the supply chain. 

ESG will continue to gain ground in the mission-driven nature of the industry as its integration into the core of the business will be pronounced in the ensuing period. Forward-looking companies have furthered their focus on organic & inorganic strategies, including but not limited to collaboration, mergers & acquisitions, technology advancements and innovations. For instance, in November 2022, the GE Board of Directors approved the spin-off of GE Healthcare. Under the ticker “GEHC,” the company was expected to start trading on Nasdaq on January 4, 2023. These trends suggest the global healthcare IT market could witness around 29.3% CAGR during the forecast period. 

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

Baby Care Products Industry Players Unlock Business Values with ESG

Brands in the baby care products industry are emphasizing sustainable ingredients and are on course to be the early movers on several environmental, social and governance (ESG) facets. Organizations are focusing on ESG strategies that can create healthier communities, enhance affordability and access and foster corporate behavior. Safety and protection have been paramount ever since the onslaught of the COVID-19 pandemic. Parents and caretakers have shown traction for companies that have sustainability certification and promote diversity and transparency. 

Millennials have sought green products that provide nourishing and gentle care for delicate skin. Eco-friendly baby care product manufacturers are embedding ESG into their portfolios. They are likely to create long-term value by rewarding opportunities for employees, achieving better health results for toddlers and offering profitable growth for investors. 

Prominently, sustainable baby products can avoid harmful chemicals, such as parabens, sulfates, BPA and synthetic fragrances. Green-theme has come on the horizon, complementing ESG focus areas. Some factors, such as environmental health protection, innovation, accountability and a healthy workforce, will drive ESG progress. 

Discover more regarding the practices and strategies being implemented by industry participants form the Baby Care Products Industry ESG Thematic Report, 2023, published by Astra ESG Solutions

Environmental Perspective

An escalating climate change concern among parents has compelled businesses to improve their environmental footprint. Industry leaders are striving to reduce their carbon footprint and minimize the use of non-recyclable materials. For instance, Johnson & Johnson aims to achieve carbon neutrality for its operations by 2030 and reduce absolute Scope 3 upstream value chain emissions by 20% (from 2016 levels) within the same period. It also inked the race to zero/business ambition for a 1.5°C campaign to attain net zero carbon emissions by 2045.

The consumer brand is gearing to use 100% recyclable, compostable, or reusable plastic packaging and post-consumer recycled paper. In September 2020, Johnson & Johnson Consumer Health earmarked USD 800 million till 2030 to make more sustainable products. To bolster recyclability, it expressed contemplation in removing pumps from any products in the U.S., Europe, the Middle East and Africa with less than 500 ml volume. As consumers make more informed choices, healthcare brands will likely reinforce recyclability and combat CO2 emissions. 

Social Perspective

Brands expect ESG to drive a healthy work culture that promotes equity and diversity and recognizes and rewards contributions. Companies advocating community impact and gender and multicultural representation have a high chance of propelling their market share. P&G alluded in its 2022 Citizenship Report that it had launched Children’s Safe Drinking Water (CSDW) Program to provide clean drinking water to communities, offering 20 billion liters of clean drinking water since 2004.

In June 2022, P&G teamed up with Carrier Global Corporation to enhance access to tools and education required for healthier and safer homes. Besides, it has pledged USD 5 billion annually with women-led and diverse-owned businesses by 2030. The consumer goods company has trained over 1,000 women entrepreneurs in ten countries across the Asia Pacific, the Middle East & Africa over the past five years (in collaboration with WEConnect International). The prevalence of diverse and inclusive cultures will resonate with brands’ ESG strategies. 

Is your business one of participants to the Global Baby Care Products Industry? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices.

Governance Perspective

Sustainability governance has amassed headlines in the baby care products industry with companies expanding their geographical footprint. Lately, some aspects, including board diversity, engagement policy, transparency, and sound corporate behavior, have gained ground. In 2021, Unilever published its Board Workforce Engagement Policy, elucidating a slew of aspects—sustainability, equity, diversity & inclusion, health and wellbeing and remuneration. The consumer goods company has earmarked €2 billion (approximately USD 2.14 billion) annually with diverse businesses globally by 2025. 

In 2021, the Board perused developments on Clean Future, Positive Beauty, Future Foods and the Unilever Compass strategies. In the preceding year, Unilever unified its legal structure under—Unilever PLC—to bolster strategic flexibility for a buoyant outlook. It suggested that the Sustainability Progress Index comprised 8 key performance indicators from 2022. The company has also embedded diversity in its business. The U.K.-based giant is vying to unlock the talent of people with disabilities, 5% of its workforce to belong to the marginalized population by 2025. Significant progress through commitments in business ethics, corporate governance and diversity can be a game changer in the global landscape.

The competitive scenario indicates stakeholders will continue to count on ESG performance to protect environmental health, underscore social opportunity and build resilience in the business. To illustrate, in March 2022, NUK rolled out its first sustainable baby care collection products that use recycled and recyclable packaging. The company claims the paperboard packaging for the cups, pacifiers and bowls is made from 100% recycled fibers. It is worth noting that the global baby care products market size was pegged at USD 18.35 billion in 2022 and could observe around 4.3% CAGR between 2021 and 2028. 

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

Assessing ESG Performance of Hair Care Industry Leaders

Robust ESG goals have emerged as a promising trend in the hair care industry, prompting leaders, investors and other stakeholders to inject funds into environmentally friendly products. Brands have shifted to manufacturing cruelty-free hair care solutions as ethical claims garner global traction. Environmental changes and global warming have compelled companies to invest in a sustainable business model. Bullish goals can foster environmentally friendly performance and empower diversity. Moreover, water-efficient products have become the trendsetter amidst water supply scarcity. Innovation and commitment toward society and the planet’s needs can redefine the future of beauty. Stakeholders are gearing up to manage, monitor and assess ESG impacts on sustainable development. 

Legion of hair artists is counting on brands that complement human rights and protect people’s and the environment’s safety. Conducting business in an ethical, inclusive and fair manner and focusing on carbon footprint have become a masterstroke to align ESG goals with stakeholders’ interests. Consumers have become gravely concerned about sustainably sourced ingredients and recycled packaging. Prevalence of greenwashing—misleading practice companies and brands adopt to appear sustainable and eco-friendly—that projects a false image of the brand has prompted consumers to be wary of the products they choose. Accordingly, transparency and sound governance have come into the spotlight. 

Discover more regarding the practices and strategies being implemented by industry participants form the Hair Care Industry ESG Thematic Report, 2023, published by Astra ESG Solutions

Environmental Perspective

With the global push to combat climate change, carbon footprint mapping has become noticeable across the supply chain, including buying raw materials and packaging. Renewed focus on reducing energy used in facilities, emphasis on minimization of carbon emissions in scope 1 and 2 and efforts to foster renewable energy will bode well for industry participants. In September 2021, P&G set an audacious goal to attain net zero GHG emissions across its supply chain and operations, including retailers and raw materials, by 2040.

Incumbent players in the beauty sector have furthered their investments in water strategy. The American multinational company claims to have achieved the 2030 target of 35% water efficiency across its five manufacturing sites. In 2020, P&G injected funds into six projects in California’s Sacramento River and American River basins following the collaboration with the Bonneville Environmental Foundation (BEF) Business for Water Stewardship (BWS) program. These projects could restore over 3 billion liters of water to the environment and people. Brands are expected to emphasize water strategy, waste management, recycling solutions and swift action on climate change to bolster their environmental profile. 

Social Perspective

Stakeholders are navigating opportunities to propel their social performance with a focus on diversity, equity & inclusion, occupational health & safety, human rights, consumer safety and socially responsible products. L’Oréal asserts that 3 million people will gain from its social engagement programs by 2030. The company is bullish on helping 100,000 people from disadvantaged communities to gain access to employment during the same period. The French personal care company claims to have helped over 400,000 girls and women since 2020. 

Well-established players are prioritizing talent recruitment and environment to thrive irrespective of race, sex, religion, color, age, sexual orientation, citizenship, gender diversity and marital status. Voyant rolled out unconscious bias training for all employees in the summer of 2020 and formed a strategic roadmap to underpin inclusivity and augment diversity within the workforce. In 2020, the company hosted an inaugural internship program of 16 interns to promote STEM (science, technology, engineering, and math) talent in local communities. Strengthening employee well-being could be a game changer in the business landscape. 

Is your business one of participants to the Global Hair Care Industry? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices.

Governance Perspective

Commitment to sound corporate governance, business ethics, transparency, corporate behavior and anti-competitive practice has underlined the significance of the ESG framework. Leaders are building credibility with investments in world-class safety and quality standards in line with regulatory requirements. In essence, the audit committee in Unilever comprises a minimum of three non-executive directors. The committee plays an invaluable role in, included but not limited to, risk management and internal control arrangements, legal and regulatory requirement compliance and qualification & independence of external auditors. 

Creating a governance structure, practices, policies and principles that align with the shareholders’ long-term interest and long-term value for stakeholders could be the go-to strategy. In November 2021, Herbal Essence became the first P&G brand to use Eastman Renew, a molecular-recycled PET with 50% certified recycled content. Using state-of-the-art technology can divert plastic waste from the environment and landfills. These trends indicate the global hair market could register a healthy CAGR of around 6.6% between 2021 and 2028.  

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

Athletic Footwear Industry Observes Evolving ESG Investments

ESG has emerged as the top theme among athletic footwear industry companies to bolster a healthier planet and boost governance. Footwear manufacturers have realized the upsides of aligning with environmentally friendly production methods. Venture capitalists, investors and other stakeholders are emphasizing shoe design, manufacturing and supply chain that conserve energy, reduce negative environmental impacts and are safe for consumers, communities and employees. Recycling of footwear, solid waste recycling, CO2 emission, social responsibility and use of renewable energies could be pronounced to propel ESG performance. 

An uptick in ESG adoption and evolving business strategies have encouraged investors to use sustainability as an engine of growth. Investors recognize that companies with sustainable credentials could outperform their rivals and competitors. Companies are banking on recycled sources and carbon-negative foam complementing renewable energy and less material usage. 

Discover more regarding the practices and strategies being implemented by industry participants form the Athletic Footwear Industry ESG Thematic Report, 2023, published by Astra ESG Solutions

Environmental Perspective

Sneaker manufacturers are echoing the role played by the dominance of climate change concerns among shareholders and other stakeholders. Forward-looking companies have committed to a more sustainable future as they continue injecting funds into environmentally preferred materials (EPM) and durable design. Notably, New Balance is contemplating sourcing 50% recycled polyester and 100% preferred leather by 2025. It is worth mentioning that recycled polyester helps minimize dependence on fossil fuels, while preferred leather helps reduce environmental impact across the supply chain. It also aims to attain zero waste to landfill in its footwear factories by 2025. Adopting more sustainable options could gain ground as companies commit to ending plastic waste and promote sports shoes made from recycled materials. 

Social Perspective

Footwear companies are grappling with rising e-commerce penetration, fast-changing consumer preferences and demand for sustainable product offerings. The need for safe labor practices, workforce diversity, customer engagement and safe working conditions has prompted stakeholders to foster their social profile. In 2021, Adidas adopted a new assessment system to boost a range of KPIs, including training participation and resolution of workers’ grievances. The Germany-based company has solidified its position in promoting fair labor practices. In 2020, the shoe manufacturer bolstered its engagement with Tier 2 suppliers to see that company practices are in line with fair labor practices. In 2021, the company added “equity” to its diversity and inclusion commitment, underpinning its DEI to foster an inclusive workplace. 

Is your business one of participants to the Global Athletic Footwear Industry? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices.

Governance Perspective

Transparency, sound corporate governance and risk & opportunity assessment have become invaluable to remaining competitive and enhancing sustainable success. Risk and opportunity management has gained ground to achieve financial goals. For instance, Nike’s Corporate Responsibility, Sustainability & Governance Committee (CRS&G Committee) oversees risks and opportunities, including reviewing investments, policies, activities, and strategies; offering guidance; and monitoring the progress toward and development of its Purpose targets. Prominently, NIKE Global Risk Management has been at the forefront of helping Nike in control and governance processes and build & maintain effective risk management. Amidst receiving flak for lack of DEI advancements, it set a five-year road map in March 2021 to create a diverse and inclusive workforce. The sneaker maker is gearing up to achieve 45% representation of women in leadership positions by 2025. 

Incumbent players are cashing in on the rising footfall of sneakers across emerging and advanced economies. The advancements in low-carbon emission materials, design and technologies have led to energy-saving developments. To illustrate, in September 2022, ASICS rolled out a low-carbon emission sneaker with a carbon footprint of 1.95kg of C02e for every pair produced. These trends indicate the global athletic footwear market could witness a 4.9% CAGR by 2030, with a valuation of USD 127.3 billion in 2021. The immensely competitive nature of the sports apparel industry alludes to bullish investments in ESG initiatives.

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

How is ESG Redefining Real-time Payments Industry?

A quantum leap in real-time payments (RTPs) has leveraged customers, enterprises and governments to streamline payments and enhance the efficiency of the financial ecosystem. Real-time payments have made financial services attractive among millennials and the Gen Z population. The upsides of RTPs will be pronounced as policymakers, start-ups and other stakeholders emphasize the expansion of modern payments infrastructure. When compared with legacy alternatives that normally take days to reach the target, RTP has brought a tectonic shift to provide faster and more robust means of payment. It has unfolded social and economic facets that can influence stakeholders across verticals.

Industry leaders have jumped on the bandwagon to inject funds into environmental, social and governance (ESG) frameworks and policies. The year 2023 and beyond could witness real-time payments continuing disruptions. Notably, it could offset economic inefficiency with money locked up in financial systems. Cash-dominated regions are expected to invest in the advanced payment structure to help consumers gain access to financial services and help governments collect taxes and distribute benefits accurately and swiftly.

Fintechs and banks turned adversities into opportunities following the prevalence of the COVID-19 pandemic. The outbreak brought a paradigm shift in the payment landscape, bolstering the digital payment ecosystem. Companies scampered to keep up with the payment demands amidst a surge in cyber threats. Early adopters anticipate witnessing better liquidity management, enhanced communication with counterparties and seamless access to transaction data. 

Discover more regarding the practices and strategies being implemented by industry participants form the Real-time Payments Industry ESG Thematic Report, 2023, published by Astra ESG Solutions

Environmental Perspective

Sustainable payment structure has emerged as a pressing segment amidst the soaring cost of cash management, including environmental, social and governance cost of printing notes. Payments initiated and settled instantaneously could prove to be a game-changer in the cost-effectiveness of cash management and be available 24 hours a day, 7 days a week & 365 days a year. Organizations have exhibited strong demand to boost spending on payment infrastructure. According to an FIS survey released in 2021, around 27% of organizations expect to implement RTP in the next three to five years, while 14% have already embedded the payment infrastructure. 

At a time when customers of U.S. corporations are writing approximately 2.3 billion checks (equivalent to 455,000 trees) annually to pay their bills, digital payment could be a silver lining. With policymakers and global regulators pushing for a framework for reporting of climate risks, a transition from paper to digital could be a notable step toward sustainability. In April 2022, one of the largest check processors in the U.S. BNY Mellon announced a reduction in paper checks. Clients have reportedly minimized the number of checks they send to BNY Mellon for processing by 8.5% since 2019.

In May 2021, the check processing company announced the rollout of a real-time electronic bill (e-bill) and payment solution, it claims to be the first bank cashing in the RTP network to offer instant digital consumer bill pay service. Reflecting these trends, advanced economies, such as the U.S. have set an overarching goal of minimizing greenhouse gas emissions by 50%-52% by 2030. Advancements in payment systems are expected to complement these priorities. 

Social Perspective

With payments becoming cashless, the road to a digital economy has become pronounced globally. Agility and being proactive on ESG have become compelling as a solid ESG proposition can be the precursor to the company’s long-term success. A buoyant ESG framework can propel employee motivation, reduce employee turnover and enhance social credibility. For instance, Mastercard alluded to the launch of four “work from elsewhere” weeks annually in its 2021 Corporate Sustainability and Diversity, Equity, and Inclusion (DEI) report.

The payment processing company joined forces with Neurodiversity in the Workplace (NITW) to roll out a Neurodiversity Hiring Pilot for the recruitment of neurodivergent candidates for full-time job opportunities. A sharpened focus on social performance has created an avenue of growth. The U.S.-based company has also set an “In Solidarity” action plan to overcome racism and is on course to bring 50 million micro and small businesses and 1 billion people into the digital ecosystem by 2025. 

Businesses have also realized the need for skills renewal to leverage lucrative investment opportunities. The FIS survey asserts that around 44 percent of organizations will emphasize skills to bolster innovation. Fintech companies are investing in diversity and economic strength, especially among underbanked populations. To illustrate, in 2021, PayPal earmarked USD 535 million for racial equity and social justice and allocated USD 108 million commitment to underpin the economic empowerment of women and girls. The online payment company also furthered its social profile by enabling early wage access, financial education sessions and financial wellness grants. Companies are expected to harness the power of the ESG ecosystem to tap into the global landscape. 

Is your business one of participants to the Global Real-time Payments Industry? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices.

Governance Perspective

Governance has become invaluable for banks to act as gatekeepers, comply with the law, make effective decisions and meet the needs of external stakeholders. Companies are gearing up to adhere to environmental laws amidst soaring sustainability concerns. High standards set by governance structure will add a fillip to the brands’ reputation and corporate culture. Sound internal governance and disclosures pertaining to the role of the Board and management in climate-related risk management and technology resiliency could reshape the industry dynamics.

Prevalence of practices, such as a diversified board of directors, ethical business practices and transparency has propelled the prominence of the ESG framework. For instance, BNY Mellon boasts of 91% board independence and 36.4% women directors (after the election of directors in 2022). Throughout the year, the senior management rendered reports and updates of the company’s environmental and sustainability programs to the Corporate Governance, Nominating and Social Responsibility (CGNSR) Committee. 

Directors, venture capitalists and other stakeholders have prioritized governance, long-term business strategy and education on climate-related issues. Well-established brands have underscored monitoring board composition, risk management and diverse board structure. Akin to BNY Mellon, independent directors at Visa were pegged at 91% (as of April 2022). Besides, the payment giant has fostered its ethics & compliance program amidst a shift to a virtual business environment. Notably, Ethisphere Institute listed Visa among the world’s most ethical companies in early 2022. Embedment of ethics, compliance and transparency into management processes could further promote and bolster corporate governance. 

Forward-looking companies face an uphill task that provides both challenges and opportunities to empower people, invest in a diversity workforce and protect customers from cyber threats. The projected CAGR of the real-time payments market at 34.9% through 2030 indicates a rising trend of electronic payment infrastructure.  

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

Automakers seek Solid State Battery to Bolster ESG Performance

Auto-makers have exhibited increased traction to cut battery’s carbon footprint, encouraging solid-state battery industry players to propel environmental, social and governance (ESG) goals. Solid state batteries (SSBs) store more energy, provide greater safety and charge faster compared to liquid lithium-ion batteries. Since a few batteries are required, SSBs can boost energy density per unit, making the technology highly sought-after in the EV landscape. SSBs could propel the ESG performance with several watchdogs vouching for the batteries. According to Transport & Environment (T&E), solid state batteries can minimize the carbon footprint of EV batteries by two-fifths. With solid state batteries poised to be used in EVs by 2025, battery manufacturers have furthered their investments in the ESG ecosystem.  

The sustainability of battery supply chains has become pronounced as companies seek to reap upsides from using SSBs. These batteries promise to attain the Paris Agreement, boost energy access and economic value and foster decarbonization. Companies could shift to a circular value chain to enhance their economic and environmental footprint and by harvesting end-of-life values from batteries. With investors looking for companies with better ESG scores, stakeholders could focus on deploying SSBs in electric vehicles. Stakeholders are bullish towards safe working conditions and have exhibited respect for human rights by keeping the child and forced labor at bay. Private companies and public stakeholders are expected to expedite the share of renewable energies in the value chain. 

Discover more regarding the practices and strategies being implemented by industry participants form the Solid State Battery Industry ESG Thematic Report, 2022, published by Astra ESG Solutions

Environmental Perspective

The growth of SSBs is likely to foster green energy and e-mobility as stakeholders strive to minimize their carbon footprint. The European climate group has pitched for incentives for the production of batteries with a lower carbon footprint in the new EV battery regulations—EU governments and MEPs are negotiating the final text of the regulation. In December 2020, the European Commission reportedly tabled a proposal for the modernization of the regulatory framework for batteries and bolstering the sustainability of EU battery value chains. 

Although SSBs are at a low technology readiness level, strong demand from EV manufacturers to offset initial costs and propel sustainability could augur growth. The need for intensive actions against climate change and to bring the automotive sector to greenhouse gas neutrality has become an enabler for technological advances and buoyant policies. For instance, Toyota Motor Corporation issued Challenge 2050 to underpin the creation of a more sustainable and inclusive society. The company aims to reduce CO2 emissions from new vehicles by 30% by 2025 and 90% by 2050.

Solvay has a bullish plan to achieve carbon neutrality—scope 1 and 2—before 2040 for all businesses barring soda ash. The audacious goal is underpinned by an investment program of approximately €2 billion (USD 2.05 billion). The next-generation power source for EVs will continue to be sought to underscore the environmental profile. In July 2022, Nikkei, in partnership with Patent Result, inferred that Toyota had a massive lead in the solid-state battery patents—with 1,331 known patents. 

Social Perspective

Industry partners have prioritized social contributions activities to enrich society and communities. In February 2022, Samsung SDI established a sustainable business management committee to propel ESG efforts. The company is gearing up for a full transition to renewable energy by 2050. The battery firm stood first with around 70% score, partly due to bullish efforts to propel work environment, diversity and human rights. In April 2022, Samsung SDI set out Safety Environment Management Policy to create safe and healthy corporate values, implement environmentally friendly management and form an external green community. In 2021, the company appointed around 299 CAs to take the organizational culture to the next level through team member development, fair appraisal, better collaboration, enhanced work efficiency and open communication. 

Amidst occupational accidents becoming pervasive and denting the economy and employees’ health, stakeholders have responded with buoyant policies. In May 2021, the firm operated the “Eradicating Serious Accidents Task Force” to bolster safety and keep occupational injuries at bay. The South Korea-based company has expedited labor-management communication to enhance the work environment and protect labor rights. In 2020, around 1,193 issues were reportedly submitted and addressed with robust follow-up measures. 

The diversity of directors has come to the fore as a driver of social portfolio for efficient decision-making and supervision. In 2020, Samsung SDI appointed four independent directors on the basis of expertise in areas, including law/human rights, electrical and electronics industry, accounting/tax and labor policy/relations. The company has placed no limitations on the basis of religion, gender, race, nationality, ethnicity or cultural background.

Companies have also prioritized the ESG committee to underpin sustainability. In 2021, Solvay rolled out its first employee share purchase program to propel the feeling of ownership among employees. Moreover, 98 of its 105 sites have observed a security vulnerability self-assessment (SVSA). It has also rolled out “Solvay One Dignity” to eradicate discrimination, providing equal opportunities for every employee. The company also announced the introduction of its first employee stock ownership plan. Moreover, in 2021, Solvay introduced a ten-year “STAR Factory Program” to cash in on digital and data science and make all plants STAR factory certified by 2030. 

Is your business one of participants to the Global Solid State Battery Industry? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices.

Governance Perspective

Well-established and emerging players have reinforced governance, ethics and transparency to create a sustainable value for all stakeholders. Companies have raised the bar in ESG performance to pursue their sustainability vision. The repercussion of unsound governance could expand beyond the realm of financial results, prompting financial bodies to mandate governance disclosure reports. With environmental and climate issues placed at the top of agendas, governance practices and disclosures could underscore a culture of sustainable value creation.

The ESG scoring model of Grand View Research has ranked Solvay second to none—with a 70% score—in corporate governance. The top rank is mainly due to its efforts to foster governance practices with an emphasis on independent directors. In 2021, the company had 64% independent directors and the stand-alone ESG committee made a new carbon neutrality ambition recommendation to the board. The board backed the introduction of an employee share purchase plan providing Solvay personnel the chance to buy company shares at a 10% discount. 

Prominent companies have underscored the focus on sound governance, the ratio of independent directors, compliance training and taking disciplinary actions for corruption. Around 12,598 Samsung SDI employees completed ethics and compliance training, while there were 26 compliance review activities in 2021. The company appoints a chair of the BOD among directors to boost the flexibility of BOD operations and enhance directors’ accountability. The South Korean firm rolled out the Samsung Compliance Committee in February 2020 to propel compliance oversight and control at the company’s seven primary affiliates. In 2021, it amended all guidelines managed by the compliance team and provided training and reviews to alert employees about the risk of regulatory non-compliance. 

Forward-looking companies are assessing risks, opportunities and issues pertaining to sustainability amidst the expanding footprint of solid state batteries. With longer ranges and quicker charging times, SSBs could be the game changer for the electric vehicle manufacturers and other stakeholders. In January 2022, Toyota announced its first vehicle to use SSBs would be hybrid and would go on sale by 2025. Meanwhile, in June 2022, Solid Power announced it would be shipping solid state battery cells to BMW and Ford by the year-end for validation testing. Prevailing trends allude to a robust growth outlook in the ensuing period. The global solid state battery market is expected to witness around 36% CAGR from 2021 through 2028. Policies and approaches toward ESG could dictate the growth trajectory as automakers seek massive EV battery breakthroughs.  

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

Leading Players Prioritize ESG Investments In The Edtech Industry: Astra ESG Solutions

Edtech industry or Education Technology Industry players are gearing up to plan, report and monitor their ESG performance amidst an exponential rise in digitization. Notably, the prevalence of online learning against the backdrop of the COVID-19 pandemic prompted industry leaders to achieve ESG goals. AI-based learning tools forayed into the mainstream education landscape, encouraging investors, venture capitalists and other stakeholders to prioritize ESG goals. Lately, education technology has witnessed skyrocketing demand across advanced and emerging economies. A host of global organizations expects their vendors to adopt ESG goals, while stakeholders are demanding that startups define and focus on ESG strategy.

Investors are bullish on the prospect of edtech providing an immersive learning experience to K-12 students (kindergarten to 12th grade). High-profile and emerging players continue investing in tech and tools that boost online and digital learning. A slew of private equity funds has ESG-themed funds, alluding to stakeholders growing interest in society and the environment. For instance, in March 2022, Cakap, an Indonesian online language learning platform, secured fresh funding from IIF (Indonesia Impact Fund). The infusion of funds is reported to be the first ESG-compliant private impact fund under the aegis of Mandiri Capital Indonesia. Buoyant investments will propel access to high-quality education, especially in lower-tier cities, and play a pivotal role in bridging the language proficiency gap. 

Discover more regarding the practices and strategies being implemented by industry participants from the EdTech Industry ESG Thematic Report, 2023, published by Astra ESG Solutions

Environmental Perspective

Edtech companies are responding to climate change to invest in an environmentally sustainable future. Digital learning companies have furthered their efforts to propel UN Sustainable Development Goals and take a giant stride toward decarbonization. Stakeholders are expected to be on the same page on global net zero emissions and use technology and operations to foster the change the world needs. Microsoft aims to reduce its Scope 1 and 2 emissions to near zero by 2025 and is contemplating removing more carbon than it emits by 2030. Moreover, in July 2021, it also rolled out the Microsoft Cloud for Sustainability to render automated, integrated and comprehensive sustainability management. 

Stakeholders are likely to take a robust approach to reporting and recording emissions with automation and data collation. Industry players could use a secure cloud to tackle e-waste across schools with startups investing in the advanced technology. In December 2020, Karo Sambhav used Microsoft Azure, engaged with over 22,700 schools, and collated around 12,000 metric tons of e-waste for responsible recycling in India. Furthermore, Microsoft also emphasized bridging the skill gap in data center communities through investment in technical training programs at vocational schools, community colleges and other educational institutions. 

Social Perspective

Edtech companies are promoting the values of gender equality, inclusion and a safe work environment. Companies are likely to complement UN Sustainable Development Goals with an emphasis on quality education and boosting workers’ health and safety. Several edtech companies have sought state-of-the-art technology to bolster inclusion, diversity and access. For instance, in September 2021, SP2 Mentor Collective suggested that it connects students, targeting first-generation learners, including those of color, students from low-income backgrounds and other underrepresented students. 

Stakeholders have added fillip to their ESG goals by investing in new-age skills and focusing on talent mobility. Companies are gearing up to upskill talent pools to keep up with global digital transformation. Cisco is expediting the way it develops, attracts and promotes diverse talent. It has joined forces with OneTen Initiative, that is gearing to hire, upskill, and promote one million African American/Black (AA/B) Americans over the next ten years. It witnessed a 60% surge in the representation of all employees who identified themselves as AA/B from entry level through the manager.

State-of-the-art technologies, including ML and AI, have witnessed an uptake. To illustrate, as of June 2022, Coursera reported around a 50% surge in the number of business learners in India. The trends have prompted technology-oriented startups to inject funds into advanced solutions and services to help bolster the digital skills of their employees. In August 2021, Caisse de dépôt et placement du Québec (CDPQ) announced an infusion of funds into ApplyBoard through Equity 253 fund—a diversity-dedicated fund—aimed at companies leveraging diversity and inclusion initiatives and promoting them as business priorities. 

Is your business one of participants of the Global EdTech Industry? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices.

Governance Perspective 

As sustainability becomes mainstream, governance and accountability have become instrumental for prioritization and alignment across the industry. Microsoft has formed a Climate Council with business leaders from every business group to foster alignment, offer sustainability advice, review progress on commitment, prioritize resources and funding and collaborate. Its Board of Directors offers feedback, insights, and oversight across environmental and social aspects.

With companies targeting pre-K to 12, post-secondary and workforce education portfolios, stakeholders have prioritized governance structure to foster their ESG profile. For instance, Cisco asserted in its Purpose Report that audits covered 390,000 supply chain workers during fiscal 2022. Cisco’s compliance and ethics organization reports all allegations and cases of ethical violations to the Audit Committee of the BoD and the Compliance Steering Committee. 

Poor ESG practices may be detrimental to environmental, reputational and legal risks that can dent an organization’s prospect on the bottom line. Companies with strong ESG performance could stay ahead of the curve with a lower cost of capital, a loyal investor base and better access to financing. According to the U.S. financial services company Morningstar, ESG investment strategies surpassed USD 1 trillion in 2020, largely fueled by sustainable investment funds amidst the COVID-19 pandemic.

In December 2022, Skillsoft’s corporate social responsibility report found that diversity, equity, and inclusion (DEI), participation in fair trade, and enhancing labor policies were top priorities in the CSR program. The research noted that 46% said ESG efforts were replacing CSR efforts. Prevailing trends suggest the global edtech market could register a 16.5% CAGR from 2022 through 2030. The growth trajectory is expected to gain ground as companies focus on creating long-term value by creating ESG strategies. 

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

ESG Strategies in 2023 and Beyond in Healthy Snack Industry

Responsible Environmental, Social and Governance (ESG) strategies have become instrumental to create growth and value for stakeholders in the healthy snack industry. Equitable and sustainable access to food through diversity, inclusion and well-being could hold prominence across developing and developed countries. Accelerating sustainability efforts have become paramount amidst the COVID-19 pandemic and Russia’s invasion of Ukraine. Prominently, climate change has led to crop failures, extreme weather, supply chain bottlenecks and food shortages. The prevailing situation warrants a renewed focus on sustainability—an approach that is in line with an environmentally friendly food system.

Lately, regenerative agriculture has come to the fore with the need to reduce carbon footprint gaining ground. Brands have shown traction to minimize tillage and foster a regenerative supply chain. Food and beverage manufacturers are poised to play a pivotal role in tackling greenhouse gas emissions. Sourcing ingredients through regenerative agriculture could be the new normal and gain ground across retailers. Climate-friendly snack companies are likely to show traction for regenerative farming to create a resilient ecosystem and boost food security. Leading players are working closely with farmers to make soil healthier, foster biodiversity, enhance watershed health and bolster farming communities. For instance, PepsiCo aims at spreading regenerative agriculture practices to 7 million acres by 2030.  

Uptake in ESG investments provides a promising opportunity to align financial gains with upsides for the environment and society. With the prevalence of suboptimal nutrition denting the brand value and fiscal performance of the food sector, snacks with a strong ESG profile could be the game changer. Industry players have reinforced traction to enhance products and recapture packaging materials, minimize GHG emissions, replenish water and expedite changes required to address climate change. 

Discover more regarding the practices and strategies being implemented by industry participants form the Healthy Snack Industry ESG Thematic Report, 2023, published by Astra ESG Solutions

Mondelēz Underscores Environmental Portfolio

Investments in resilient and sustainable food supply chains could protect the environment and propel a transition to regenerative practices. Amidst possible repercussions of climate change, robust initiatives to minimize environmental impact have become pronounced. In June 2022, Mondelēz International exhibited bullish initiatives, including a reduction in water usage, packaging and greenhouse gas emissions in its 2021 Snacking Made Right Report.

Sustainable snacking companies are slated to emphasize ambitious ESG goals—Mondelēz is on course to use 5% recycled plastic content by 2025, including Philadelphia tubs and Cadbury Dairy Milk sharing bars. The company intends to have 100% renewable electricity in 6 of its U.K. production sites and a reduction of 21% in Scope 1 and 2 CO2e emissions (baseline 2018). The snacking company has set a net zero GHG emissions by 2050 and is injecting funds into Circulate Capital Ocean Fund to underpin the collection of plastic waste. In September, it also issued its first green bond, depicting Mondelēz’s commitment to propel the ESG agenda. 

Environmentally friendly snacking has amassed popularity with major players gearing to provide the right product, made the right way for the right moment. For instance, Mondelēz noted that the majority of dairy materials were purchased from suppliers functioning under animal welfare schemes. The U.S. multinational company aims for a 15% reduction in food waste in internal manufacturing sites and a 10% reduction in absolute water usage in priority sites by 2025. Moreover, the company also noted that 100% wheat volume is required for Europe business unit biscuits production under the Harmony charter by 2022. 

Kellogg Prioritizes Social Commitment

Healthy snack brands are bolstering communities and investing in sustainable access to food with improved quality of life for families and people with nutritious and accessible options. Social equity and opportunities with diversity and inclusion have provided a fillip to the industry profile. Brands are measuring their impact on farm families and employees. Some of the dynamics, such as safe and healthy working conditions, gender participation and financial literacy could be pronounced.  For instance, in August 2022, Kellogg announced its ambitious goal of creating better days for 3 billion people by 2030. The company noted in its annual ESG report (illustrating achievements from 2015 through 2021) that around 800 million people were nourished with its foods, while it fed 219 million people grappling with hunger or crisis. Additionally, the globally popular brand also backed 445,000 farmers, several of whom were women and smallholders. 

The U.S. company has upped its focus on gender diversity and boosted equity and inclusion in the workforce. Kellogg suggested that around 44% of the global roles were filled by women at the management level. The American company expressed contemplation for gender 50/50 parity at the management level by 2025. The company has also recognized the significance of women in the agriculture sector and is identifying areas of the supply chain with the highest presence of women. Moreover, in 2020, Kellogg published its Global Human Rights Policy, reinforcing salient human rights risks and human rights strategy. 

Is your business one of participants to the Global Mattress Industry? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices.

Nestle Adds Value to ESG with Investments in Governance

At a time when the regenerative food system has gained a massive uptick, governance has received notable traction among investors, regulators and other stakeholders. Implementation of ESG-related performance indicators has gained ground. In 2021, Nestlé rolled out a new structure for managing ESG topics and its Board of Directors created a dedicated and distinct Sustainability Committee to review the company’s sustainability agenda and boost shared value. The ESG and Sustainability Council offers strategic leadership, governance and execution guidance and advises Nestlé’s Executive Board on making science-based and informed decisions. 

Nestlé mentioned in its Creating Shared Value and Sustainability Report 2021 that it appointed 11 new independent directors since 2015. Moreover, the food & beverage company also ran a series of Food Systems Summit Dialogues offering inputs on innovation for food systems transformations, mainstreaming regenerative agriculture and how to make nutritious diets more accessible, affordable and adequate. It is also expected to vouch for policies that assist in whole grains consumption and is committing to minimize sodium in frequently consumed products by 2025 and 2030. Besides, it conducts a materiality assessment every two years to help identify the economic, social and environmental aspects.

Business leaders and ESG subject matter experts are vying to drive positive change through partnerships, product launches, innovations and technology advancements that address sustainability. To illustrate, in May 2021, Hershey announced the acquisition of Lily's Confectionery Brand to bolster its zero-sugar product offerings. It could help the former underscore the use of innovative sugars in snacks. With innovations and industry-wide developments emphasizing ESG, the healthy snack market could witness a CAGR of 6.6% during the assessment period. A renewed focus on the environment, health, safety and climate policy could steer the growth trajectory. 

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

Why are Brands Counting On ESG in Mattress Industry?

The soaring significance of environmental, social and governance (ESG) strategies has encouraged mattress industry players to boost their sustainability quotient. Reporting on non-financial information has become pronounced across business verticals. Stakeholders are poised to take a quantum leap to embed ESG considerations into their portfolios. Companies are championing sleep as an invaluable pillar to underpin the work environment and emphasize talent attraction, equity, diversity and inclusion. Amidst increased responsibilities, demanding schedules and feelings of stress, the addition of ESG pillars to help people foster positive social change and improve health and well-being could provide impetus to an equitable and fair world. 

There has been a palpable trend to recycle and reuse mattresses to minimize waste from landfills. Amidst climate change creating pressure on the planet, well-established players are expected to emphasize minimizing carbon footprint, sourcing raw materials sustainably and using resources more efficiently. Strategic aspirations and priorities could take center stage to provide sustainable sleep solutions. Companies are likely to seek ESG goals to expand their physical and digital footprint and provide customers with seamless products and services. 

Discover more regarding the practices and strategies being implemented by industry participants form the Mattress Industry ESG Thematic Report, 2023, published by Astra ESG Solutions

Environmental Perspective

As companies embark on the ambition to be more environmentally friendly and transparent, goals to attain carbon neutrality could receive an uptick with investments in ESG reports. A buoyant environment profile has become paramount to raising the bar for sustainability. In January 2023, Tempur Sealy International revealed its 2023 Corporate Social Values Report noting that it achieved around 3% dip in GHG emissions per unit produced at wholly-owned manufacturing and logistics operations. It kept the sustainable reporting in line with the Task Force on Climate-Related Financial Disclosures (TCFD) framework. The American manufacturer of mattresses suggested that 100% of waste was diverted from landfills from the U.S. wholly-owned manufacturing operations as of September 2022, up from 96% during the same month in the preceding year. It also bolstered its commitment to achieving zero landfill waste to include its research and development facilities and corporate offices by 2025. 

Forward-looking companies are exploring opportunities to decarbonize operations and inject funds into boosting energy efficiency. To illustrate, in 2021, Sleep Country Canada rolled out a pilot project at three locations connecting AI-powered technologies to HVAC and lighting equipment at retail locations and warehouses. The company has also bolstered its efforts to minimize landfill waste under the aegis of recycling programs and mattress donations. It claims to have diverted more than 165,000 mattresses and foundations (in 2021) from landfills through recycling or donation. The Canadian retailer company claims around 91% of its mattresses and foundations have sustainable materials. It has also banked on several of its suppliers that use CertiPUR-US-certified mattress foam. The certified foam is made without flame retardants, ozone depleters, lead, mercury, phthalates, formaldehyde and low VOC emissions. Emphasis on environmentally responsible products will provide impetus to the use of sustainable materials, helping stakeholders use resources efficiently. 

Social Perspective

Stakeholders are recognizing the importance of underpinning programs that can bring a paradigm shift in the way corporate philanthropy achieves social performance. Concerted effort on workforce development targeting underemployed groups, and gender discrimination management has provided tailwinds for investors, manufacturers and suppliers. Leading players are poised to observe an inclination for equity, diversity, inclusion and belonging, retaining and recruiting talented people from diverse backgrounds and creating a safe work environment. Social performance has become a vital cog in reinforcing brand value and reputation. For instance, Avocado Green Mattress, in its 2021 Impact Report, alluded to developing a nationwide network (in the U.S.) of over 1,000 nonprofit partners, such as rehabilitation centers, local women’s shelters, centers for people with disabilities and refugee centers. The company donated 90% of returned mattresses to shelters and gave away 2% of annual revenue to environmental nonprofits. 

Recognizing performance has become one of the most compelling factors to offer rewards, compensation packages and learning & development training. Key players have included LinkedIn Learning in their toolkits to offer access to thousands of courses to associates. Additionally, equity, diversity and inclusion training has also spurred, creating an aura of strong growth for mattress manufacturers and suppliers. To illustrate, Sleep Country Canada noted that 98% of associates were trained on diversity, harassment and respect in the office, while 24% identified themselves as visible minority leaders. Meanwhile, Tempur Sealy propelled the percentage of U.S. employees who self-identified as a minority to 49%. The prevalence of robust and inclusive culture could place companies vying to propel their ESG portfolios in the driver’s seat. 

Is your business one of participants to the Global Mattress Industry? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices.

Governance Perspective

Lately, good governance and strong ethics & compliance have come into the spotlight to ensure risk management, ESG accountability and performance. Embedding a robust culture of sustainability has become pivotal for buoyant governance standards. An emphasis on fostering corporate behavior, board diversity, anti-competitive practices, tax transparency and eradicating corruption could be the precursor of sound and sustainable governance. In April 2021, Serta Simmons Bedding promoted two major leaders and streamlined the organization’s structure. Venture capitalists, manufacturers and other stakeholders are expected to place bullish measures to address major ESG risks, such as cyber security, talent attraction and retention, reputation and shifting consumer behavior.  

Integration of ESG priorities into the code of conduct has become prevalent across business verticals. Tracking and reporting of possible code violations and strengthening of cyber security could be pronounced. Companies are updating their information security policy, reporting policy and mitigating the ESG risks. Organizations are prioritizing data management and developing strategies that are in accordance with the law of the land and which can keep up with the demands of shareholders, venture capitalists and other major stakeholders. 

The competitive landscape suggests industry players are likely to focus on brand strategies and develop retail partnerships. Industry-leading innovations that can provide customers with increased quality sleep could be the major selling point. To illustrate, in July 2022, Bryte raised USD 20 million under the aegis of Tempur Sealy. With mattresses being trendy, investments and revenue forecasts could be bullish. The global mattress market size is poised to garner significant gain in the ensuing period.

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