ESG Initiatives In The Bakery Product Industry

Embedding the value of environmental, social and governance (ESG) in the bakery product industry has become a vital cog in augmenting revenue growth and bolstering employee productivity. A strong ESG performance can help industry leaders tap into new markets and attract customers to pay more. That said, status brings responsibility and challenges—air pollution and waste from bakery manufacturing have become pervasive. Oven produces volatile organic compounds (VOCs), including ethanol, while food waste in the landfill releases methane, aggravating global warming. Amidst criticism, buoyant ESG policies could be the silver lining. In 2023, the U.K. Environmental Act 2021 came into full effect, which fosters the U.K. government’s commitment to eliminate food waste in landfill by 2030. 

The food industry has an overarching impact on the planet, society and governance. Reduction of ecological footprint has become instrumental in underpinning the sustainability profile. One of the most rapidly rising segments in the bakery industry is that which offers sustainably raised products. Besides, robust ESG policies can help deal fairly and ethically with stakeholders, deliver value to customers, reinforce communities and provide value for shareholders. 

An increasing chorus of stakeholders has pushed for publishing sustainability/ESG reports and fostering transparency and ethical standards. In the same breath, questions arise:

1. Which ESG issues have garnered headlines among forward-looking companies? 

2. Are companies ramping up efforts to underpin employee safety, reduce carbon footprint and accentuate transparency? 

Kraft Food Bolsters Environmental Stewardship

Climate risks have posed risks as the increasing number of days with extreme heat has led to reduced productivity. Moreover, changing rainfall patterns and scorching heat have triggered wildfires, disrupting economies and killing citizens. ESG goals, including minimizing waste, reducing GHG emissions and making sustainable packaging, have become invaluable to stay ahead of the curve. Kraft Heinz has set an audacious goal of a 20% reduction in waste-to-landfill intensity across manufacturing facilities by 2025.

In 2021, the American food manufacturing company pledged to attain Net-Zero greenhouse gas emissions by 2050. Kraft Heinz collaborated with seven companies in Canada to minimize food waste by 50% by 2025. The company will emphasize regenerative and sustainable practices, procure most electricity from renewable sources and shift to more circular and recyclable packaging. It will also further its efforts to propel scope 3 emission minimization strategies across ingredients, upstream and downstream transportation, packaging, end-of-life and sold products.  

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

Bimbo Bakeries Gains from DEI Initiatives

Stakeholders’ actions on social factors, including conditions employees work under, pay parity and diversity, equity & inclusion, can notably impact shareholders’ returns. Bimbo Bakeries is gearing up to ensure 50% diverse candidate slates—at least 25% racially diverse and a minimum of 25% women; the company laid down the goals to be achieved from 2022 to 2024. The company also requires associates to complete at least 1.5 hours of Racial Equity Strategy Training (REST) annually.

It has established the 2030 ambition to bolster underserved communities, emphasizing economics, education and health assistance. In 2021, Bimbo Bakeries USA (BBU) committed USD 1 million to national and local organizations to propel the financial well-being, education and health of Black and minority Americans. The company provides scholarships and internships through collaboration with the United Negro College Fund.

The reputation of companies largely depends upon their social credibility. In 2020, BBU donated half a million dollars to the COVID-19 Relief Fun of Feeding America. The company donates around 20 million pounds of food to local food banks annually (collaborated with Feeding America). Across the U.S., the bakery firm chooses ten food banks to receive a donation of 5,000 pounds of bread. The prevalence of a safe and inclusive working environment, along with economic assistance, will add value to ESG goals. 

Transparency Pivotal for General Mills to Create Synergy

The financial impact is largely driven by the impact the firm has on the environment and society. In the realm of ESG factors, investors, managers, communities, employees and suppliers have furthered governance pillar to adhere to the law, make effective decisions and keep up with the demand of stakeholders. Consumers are eager to know what is in their bakery products, how they are prepared and where they came from.

General Mills has fostered ingredient sourcing by disclosing information about purchasing Roundtable on Sustainable Palm Oil (RSPO) certified palm oil volumes. The website also includes an updated list of all palm oil suppliers. As of 2022, the company has listed around 1,900 products on smartlabel.org, 319 topics were covered on askgeneralmills.com and 600 products were enrolled in the U.S. Non-GMO Project, according to its 2023 Global Responsibility Report.

A strong ESG proposition warrants the assessment of climate-related risks, opportunities; relationships with the society they do business; and investments in corporate governance that encapsulate firms’ long-term success. Grand View Research indicates that the global bakery products market size could reach USD 251.1 billion by 2025. The billion-dollar industry will emphasize ESG reporting to undergird sustainable bakeries. 

Related Reports:

• Healthy Snack Industry ESG: https://astra.grandviewresearch.com/healthy-snack-industry-esg-outlook
  
  
• Cookies Industry ESG: https://astra.grandviewresearch.com/cookies-industry-esg-outlook
  
  
• Breakfast Cereals Industry ESG: https://astra.grandviewresearch.com/breakfast-cereals-industry-esg-outlook

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.

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

The Growing Impact of ESG in the 5G Services Industry

5G services have brought the world to the cusp of a revolution as companies continue to integrate environmental, social and governance (ESG) strategies into operational decision-making. 2023 was a transformation year with innovations in fiber infrastructure and spectrum breadth—2024 promises to be much more than that; industry innovators are including net zero emissions in their operations and building a low-carbon and more sustainable next-gen ecosystem.

Unsurprisingly, stakeholders are pitching for companies to address ESG impacts and issues and establish a foundation to manage the issues. The need to build a strong culture to provide a core business strategy focuses on 5G as a key enabler to minimize global warming. While the technology also underpins sustainable urbanization, challenges around cybersecurity and privacy protection emerge as a roadblock.

Is it high time stakeholders emphasize ESG reporting and empower the sustainable development society?  

Deutsche Telekom Plans, Acts and Delivers Environmental Goals

In the pursuit of a circular economy, incumbent players are spearheading the integration of bespoke information technologies into the economy and people’s livelihoods. Climate-neutral business practices have grabbed headlines globally, with stakeholders deciphering ways their products, services and activities impact the environment. Deutsche Telekom, for instance, is bullish on being climate neutral in Scope 1 and 2 emissions by 2025. 

The German telecommunication giant expects climate neutrality to be extended to the entire value chain (Scope 3) by 2040. It has also minimized waste volume and fostered a circular economy with sustainable packaging. In 2022, Deutsche Telekom minimized energy consumption by 278 gigawatt hours (approximately 11%) in Germany. 

The need for fast and decisive action to keep global warming below the 1.5-degree danger line will compel 5G services companies to fulfill the responsibility for a climate-friendly society. 

Is your business one of participants to the 5G Services Industry? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices

Empowering a Future of Inclusion of All at China Mobile

A path to modernization and leveraging information technology to benefit society as a whole warrants inclusiveness, openness and mutual growth. China Mobile claims to be bridging the digital divide for marginalized populations. The Chinese telecom behemoth has propelled its efforts to boost its broadband speed and reduce tariffs; in 2022, the company asserted that around 37 million people benefited from targeted tariff reductions. 

The company also underpinned elderly people with the development of a “connected intelligent healthcare service platform.” China Mobile mentioned in its 2022 Sustainability Report that it had built 120 smart elderly care demonstration sites, served over 1.3 million senior users, created more than 2,700 home-based elderly care beds and inked contracts with 117 elderly care institutions. 

The Chinese behemoth has used 5G to underscore high-quality education. It deployed more than 1,500 5G+ smart campus projects and built a 5G smart cloud examination solution. Connecting people and things and digitizing the education sector can bolster ESG goals. 

Verizon Banking on Governance to Build Climate-Resilience Strategy

Transparent reporting and stakeholder engagement, along with good governance, are paramount to building a circular economy. Investors and venture capitalists speak well of companies that seek candidates from different backgrounds, races, genders, expertise, and skills. Verizon, on its board, had five directors who identified themselves as ethnically or racially diverse, and four were women (as of December 31, 2022). The company claims each of its directors has experience or skills in one or more facets of ESG, such as DEI, cybersecurity, digital inclusion, data protection and privacy, governance, sustainability, business ethics, and compliance. 

Stakeholders are gearing up to build a better future, integrating climate considerations into operational and strategic decision-making processes. To illustrate, the Audit Committee at Verizon reportedly discussed operational and financial risks regarding network reliability and resilience, energy management and the impacts of environmental and ESG reporting regulations (current and emerging). The American telecommunication behemoth has created an ESG Center of Excellence to foster its compliance with climate change-related laws and regulations. 

With climate-related risks and opportunities having a likely impact on the business, socially responsible investments could be more pronounced in the 5G ecosystem. Digital intelligence resources, including cloud, IoT, and 5G, have underscored the modernization of society. The new generation of wireless communication has set the precursor for a new customer experience and basis for digitization. These opportunities come with responsibilities to foster a circular economy.  

Related Reports:

• Cloud Computing Industry ESG: https://astra.grandviewresearch.com/cloud-computing-industry-esg-outlook
  
  
• Digital Payments Industry ESG: https://astra.grandviewresearch.com/digital-payments-industry-esg-outlook
  
  
• Cyber Security Industry ESG: https://astra.grandviewresearch.com/cyber-security-industry-esg-outlook

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

Understanding ESG in the Fuel Cell Industry

Fuel cells have emerged as an environmentally friendly option to provide power for applications, including residential/commercial/industrial buildings, transportation and power stations. The unique value proposition of environmental, social and governance pillars will leverage industry leaders to empower the world with clean energy. Although 2020 through 2022 were periods of global turbulence emanating from the COVID-19 pandemic, inflation, energy crisis, geopolitical developments and volatile weather conditions, 2023 and beyond could see stakeholders prioritize ESG to bolster the brand position.

Global push to comply with the Paris Accord Climate Targets will encourage companies to meet the greenhouse gas emissions commitments, thereby fostering the clean energy revolution. Hydrogen has emerged as an invaluable component for green transition and energy source diversification. Fuel cell technology will expedite targets to pursue economic recovery and combat climate change Along with the concerted efforts to transition to a zero carbon economy, forward-looking companies have prioritized diversity, equity & inclusion, workers' health & safety, training programs, transparency, corporate behavior and ethics & compliance.

Key Companies in this theme:

    • Fuel Cell Energy, Inc.

    • Ballard Power Systems

    • SFC Energy AG

    • Nedstack Fuel Cell Technology B.V.

    • Bloom Energy

Learn more about the practices & strategies being implemented by industry participants from the Fuel Cell Industry ESG Thematic Report, 2023, published by Astra ESG Solutions

Environmental Perspective

Amidst an exponential demand for energy, decarbonizing power and producing hydrogen have come on the horizon. Technologies are likely to be built for decarbonizing mobility and industrial applications. The penetration of hydrogen fuel will potentially negate the fossil fuel concerns that have plagued the globe. It is worth mentioning that hydrogen does not need mining and is not prone to geopolitical risks.

In February 2022, FuelCell Energy introduced the 2021 Sustainability Report exhorting a commitment to attain net zero emissions by 2030 on Scope 1 and Scope 2 emissions. As of August 2022, its energy plants generated over 13,788,125 megawatt hours. The U.S.-based company is gearing up to achieve net-zero carbon emissions by 2050, a step likely to foster the adoption of decarbonization.

Social Perspective

Industry leaders have furthered their focus on social contributions, including increasing the proportion of women in the workforce, underpinning employment in operational sites and providing training programs. Lately, emphasis on talent attraction, retention, robust grievance mechanisms, women empowerment and occupational health & safety has gained uptick.

Advent Technologies has upped investments in women empowerment and training pertaining to ethics, professional skills development and health & safety issues on laboratory processes. In 2021, the percentage of permanent employees was 98%, exhibiting its efforts toward human capital management. The company asserts its Employee Handbook covers bullying and harassment, diversity, accessibility, non-discrimination, working hours and minimum age requirements. A strong commitment to the social pillar to provide fuel cell power for a sustainable world will help companies position themselves in the industry.

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

Governance Perspective

The strategic ESG vision warrants board diversity, transparency, sound corporate behavior, fair business practices and regulatory compliance. Building trust from business partners, investors, financial markets and the public at large has become instrumental in boosting the ESG rankings. For instance, Bloom Energy has strengthened its ESG disclosure efforts. The company's 2021 sustainability report is in line with Task Force on Climate-related Financial Disclosure (TCFD) recommendations, Sustainability Accounting Standards Board (SASB) standards and the Global Reporting Initiative (GRI) framework.

The Board of Directors (BoD) offers strategic guidelines on ESG matters pertaining to Bloom Energy's business and approves strategy, such as ESG components. Besides, the company inferred that its first Environmental Management System (EMS) audit would have happened in 2022. Bloom Energy has also fostered its culture of ethical decision-making. In 2021, the U.S.-based company hired corporate ethics and compliance program leaders. Building a strong and robust governance culture will serve as a solid foundation to propel environmental and social performances.

Identifying areas for development and improvements of communities, environments and businesses have become pronounced with the emergence of the hydrogen economy. Manufacturing and injecting funds into key technologies to protect energy security, employment and achieve climate goals can propel the value proposition.

In July 2022, the European Commission was reported to have approved an Important Project of Common European Interest (IPCEI) to underpin research & innovation and the first industrial deployment in the hydrogen technology value chain. The Member States would pour €5.4 billion (approximately USD 5.8 billion) in public funding. Meanwhile, in February 2023, Nedstack joined forces with ZBT for the industrialization and co-development of fuel cells.

Related Reports:

• Autonomous Vehicles Industry ESG: https://astra.grandviewresearch.com/autonomous-vehicles-industry-esg-outlook
  
  
• Electric Passenger Cars Industry ESG: https://astra.grandviewresearch.com/electric-passenger-cars-industry-esg-outlook
  
  
• Aftermarket Automotive Parts Industry ESG: https://astra.grandviewresearch.com/aftermarket-automotive-parts-industry-esg-outlook

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 ESG Factors Are Shaping the Protein Supplements Industry

Consumers are emphasizing sustainability credentials when purchasing food & beverages, prompting protein supplements manufacturers to bank on ESG metrics. Sustainable packaging, environmental preservation, clean label claims, transparency, ethics & compliance and health have become paramount among sustainability-minded consumers. Plant-based and whey-proteins have garnered popularity among Gen Z and millennials, a trend likely to drive the footprint of sustainable food.

Whey protein has become prevalent among athletes and customers who warrant protein supplements in their diet. Manufacturers, consumers, media and influencers are counting on whey protein powders to foster sustainable food production. Decision-makers seek a crystal clear picture of how protein products will impact the environment, community and governance.

In September 2022, the Good Food Institute (GFI) and FAIRR rolled out an ESG reporting framework for the alternative protein industry. At a time when the world is gearing up for climate accountability, disclosure of the ESG framework could underscore business practices.

Key Companies 

    • Glanbia PLC

    • MusclePharm

    • Abbott

    • CytoSport, Inc.

    • QuestNutrition

    • Transparent Labs

Environmental Perspective

The soaring popularity of protein supplements, including powders, bars and shakes has prompted stakeholders to prioritize their environmental footprint. Global watchdogs, such as the Intergovernmental Panel on Climate Change (IPCC), have vouched for sustainable meat production to decarbonize food production and keep up with the demand for protein. In August 2022, an Oxford study deduced that meat alternatives had less than a tenth of the environmental impact of meat-based equivalents.

Forward-looking companies have furthered their efforts to underpin their environmental profile. For instance, in 2022, Glanbia upgraded its scope 1 & 2 emissions reduction targets and aims for 100% recyclable, reusable or compostable packaging by 2030. It has also set the target of a 50% absolute reduction in emissions from operations and a 25% reduction in dairy emissions intensity by 2030. Establishing environmental goals and transitioning to a low-carbon economy will open a unique window of opportunities in the global landscape.

Social Perspective

A sustainable future demands product safety & quality, employee health and well-being, diversity & inclusion, responsible nutrition, animal welfare and fair pricing. In August 2022, Harvard Health Publishing noted that protein powders could contain added sugars and calories. During the year, Clean Label Project claimed in a report that protein powders may contain heavy metals, pesticides or other contaminants linked to cancer or other health issues. With vegans, athletes and adults banking on protein powders to supplement their diets, industry leaders are expected to emphasize consumers' health & safety to bolster the brand position.

Decision-makers have shown an inclination to attract and retain diverse employees to bolster their ESG performance. For instance, Abbott is gearing up to achieve gender balance with at least 45% female representation across STEM and global management roles. The company is on course to offer one million job and development opportunities by 2030. Commitment to diverse perspectives and ideas will drive innovation and help attain Sustainability plans.

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

Governance Perspective

Investors, consumers, companies and governments are making informed decisions with good corporate governance practices, regulations, compliance with laws, transparency and board diversity, among others. To illustrate, in 2022, Glanbia updated its anti-bribery and corruption policy to reinforce fraud prevention procedures. Females represent 55.5% of the independent non-executive directors, the company exhorted in its Annual Report and Financial Statements 2022. Meanwhile, Abbott mentioned in its DEI Report 2021 that one-third of the leadership roles were held by people from underrepresented groups, while women accounted for 40% of the global management positions in 2021.

ESG reporting is expected to be pronounced as governments can mandate climate reporting by 2025. For instance, in April 2021, the EU Commission proposed a Corporate Sustainability Reporting Directive. In September 2022, Kroger updated its ESG action plan to underscore its strategy and propel sustainable packaging. ESG disclosure, reporting and claims have gained momentum in 2023 and could be prevalent in the ensuing period.

As the industry forays into ESG reporting, incumbent players are slated to inject funds into organic and inorganic strategies that can help them transition their protein portfolios to meet sustainability goals. In 2023, NOW Foods announced shifting its supplement bottles to 100% post-consumer recycled (PCR) resin. The step will enable the natural products company to reuse recycled packaging materials and minimize its carbon footprint. These dynamics suggest the global protein supplements market could depict an 8.5% CAGR through 2030.

Related Reports:

• Dairy Product Industry ESG: https://astra.grandviewresearch.com/dairy-product-industry-esg-outlook
  
  
• Dietary Supplements Industry ESG: https://astra.grandviewresearch.com/dietary-supplements-industry-esg-outlook
  
  
• Oat Milk Industry ESG: https://astra.grandviewresearch.com/oat-milk-industry-esg-outlook

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 Initiatives in the Wires And Cables Industry

Sustainable development of society and advancements in renewable energy in the wires and cables industry have revved up the transition to a greener world. The energy crisis in Europe, with fluctuating supply and high prices, has compelled leaders to invest in renewable energy generation and rigorous climate action. According to IEA, EU electricity demand dipped by 3% in 2022, alluding to an avoidance of 14 bcm of gas demand. In September 2022, Eurostat reported that consumer electricity prices in the EU were 35% higher compared to the preceding year. Bullish demand for high-quality cable solutions will encourage industry players to invest in ESG goals.

The promotion of diversity and inclusion has ushered women into leadership positions. Many sites traditionally dominated by men have witnessed a paradigm shift. For instance, NKT has set an audacious target of at least 30% women in senior leadership positions in 2025. In essence, women contributed 22% of the company’s senior management roles in 2022. These visible initiatives have amped up the confidence of stakeholders to bolster their sustainable business operations.

Environmental Perspective

Decarbonizing energy generation and enhancing energy efficiency have become pivotal to fostering an environmental profile. Concerted efforts to reduce emissions and foster clean energy could mark the beginning of a roadmap bolstering environmental performance. For instance, in FY 2021, the Fujikura Group performed activities to minimize CO2 emissions by 4% or more vis-à-vis FY 2018. In 2016, the Japanese company built the Fujikura Group Environment Long-term Vision 2050, acknowledging the Paris Agreement adoption and the goal to minimize CO2 emissions by 80% by 2050. It has also set the goal to achieve carbon-neutral plants by 2050. In pursuing increased RoI, environmental sustainability will remain paramount across the business vertical.

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

Social Perspective

Sustainable development has garnered headlines with the need for fair, inclusive and diverse work culture, irrespective of gender, disability, ethnicity, neurodiversity or orientation. Industry players are likely to prioritize work-life balance and gender equality to enhance well-being and boost mental health. LEONI is gearing up for women to account for 20% of senior management positions by 2030. It is contemplating reducing its global accident rate to 0.3 by 2023 and expanding local health protection projects by 2025. Leading players are poised to emphasize a safe and comfortable work environment full of diversity. Wires and cables manufacturers are expected to prioritize occupational health & safety, human rights, corporate mentorship programs and talent attraction. 

Governance Perspective 

A sound corporate governance structure with transparency and ethics & compliance has become fundamental to sustainable growth. Ethical behavior has become paramount for data ethics, cyber security and combating bribery and corruption. Predominantly, Belden has set an audacious goal of achieving an understanding of the Code of Conduct from 100% of global non-productive team members. In 2020, the company formalized ESG’s board oversight; its ESG Steering Committee is responsible for ESG procedures, practices and other aspects. The company has taken a giant stride in fostering board diversity. In 2023, the St. Louis-headquartered company appointed a new Vice President of Diversity, Equity and Inclusion to create and strengthen an environment of equity. Promoting a company culture that prioritizes employees, customers and other stakeholders with sustainability goals will stay ahead of the curve. 

Wires and cables manufacturers and suppliers have created a forward-looking approach towards business ethics and environmental goals through a strong ESG roadmap. For instance, Hellenic Cables is committed to achieve net-zero GHG emissions by 2050. Besides, in 2021, it donated cables for infrastructure needs to institutions, including Municipality of Loutraki, Local Government of Evia and Municipality of Corinth, among others. These trends favor Grand View Research’s projection of the wires and cables market growing at a 4.4% 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.

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

                                                    

ESG Trends Reshaping the Future of Injection Molded Plastic Industry

Sustainability has come to the fore as a key pillar in developing an environmentally friendly injection molded plastic solution. Injection molders have exhibited a commitment to environmental, social and governance (ESG) practices amidst burgeoning plastic pollution. In May 2022, UNESCO’s Ocean Literacy Portal stated that plastic waste contributes 80% of all marine pollution. Meanwhile, merely 9% of plastic waste is recycled and 22% is mismanaged, according to an OECD report. Molding solution strategists across automotive, medical devices and packaging industries will emphasize reducing plastic waste and carbon emissions yet providing safe and reliable products with increased user experience. 

Embracing ESG principles have become invaluable to providing sustainably-focused services that foster teamwork and enhance lives and the livelihoods of the global community. In essence, forward-looking companies seek strong governance to integrate sustainability measures at every level and ensure their products are in line with environmental and social commitments. Stakeholders, including customers, employees, communities, investors, trade groups, industry associations and lenders, are investing in ESG goals to unlock growth potentials. 

Key Companies in this theme

    • ExxonMobil Corp.

    • BASF SE

    • DuPont de Nemours, Inc.

    • Dow, Inc.

    • Huntsman International LLC

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

Environmental Perspective

Industry leaders have upped their focus on minimizing carbon footprint and managing climate change risks. Reducing and reusing waste could be prevalent with bullish investment in waste diversion and recycling solutions. For instance, in December 2022, Exxon started one of the largest advanced recycling facilities in Texas, to break down plastics and transform them into raw materials for new products. The Baytown facility can process over 80 million pounds of plastic waste per year. The U.S. giant is contemplating recycling 1 billion pounds annually of used plastics by 2026. 

Sustainable companies have furthered their commitment to mitigate emissions in their operations. The company has injected over USD 10 billion in research, development and deployment of lower-emission energy solutions over the past two decades, according to the ExxonMobil 2021 Energy & Carbon Summary Report. Buoyant investments in ESG could make a difference and help stakeholders reach their goals. 

Social Perspective 

Incumbent players expect that promoting diversity, equity and inclusion (DEI), workplace safety, well-being and inclusivity will provide avenues of growth. Stakeholders have prioritized a sustainable framework to underscore employability and a work culture that can bolster the team’s performance. For instance, since 2022, BASF has been measuring employees’ sense of belonging with the inclusion index. It has a host of Employee Resource Groups globally—the LGBTQ+ network celebrated its 10th anniversary in Ludwigshafen, Germany, in 2022. 

Occupational safety has grabbed headlines as one of the major segments of the social pillar. The European company is gearing up to minimize lost-time injuries not exceeding 0.1 per 200,000 working hours by 2025. BASF furthered its emphasis on human rights and social standards. The company stated that 151 human rights-related complaints were received by phone, email and post in 2022, down from 206 in the preceding year. Diversity, safety and well-being will continue to be indispensable to further sustainable production in the injection molded plastic industry. 

Governance Perspective

The strength and effectiveness of a company largely depend upon transparency, corporate behavior, ethics & compliance, corporate governance and board diversity. A zero-tolerance policy for harassment and anonymous reporting tools could be prevalent. For instance, at Dow, 395 matters were reported to the Office of Ethics and Compliance (OEC) in 2021. The Board oversees the company’s ESG priorities to ensure accountability and transparency. It introduced enhanced carbon emissions reporting and improved climate risk disclosure and GHG intensity metrics to bolster ESG reporting and disclosures, according to its 2nd annual integrated ESG report published in July 2022.

The company also upped its efforts on diversifying the board and ESG disclosures. The U.S.-headquartered company elected three new members in 2021 and 2022. Besides, as of August 2021, Dow’s board of directors was 55% women or U.S. ethnic minorities, exhibiting a commitment to inclusive corporate culture. The 2021 INtersections ESG Report included disclosures in line with the Global Reporting Initiative (GRI) standards, Sustainability Accounting Standards Board (SASB), Taskforce on Climate-related Financial Disclosures (TCFD) and World Economic Forum (WEF) Stakeholder Capitalism Metrics. 

With the global economy expanding, governance practices exhibit the company’s commitment to all stakeholders and concerted efforts toward long-term viability. Accordingly, well-established players and startups are poised to prioritize ESG strategies. For instance, Barnes Group emphasized women in leadership positions, indicating that four out of 12 directors are women, according to its 2021 ESG report. Meanwhile, in September 2021, DuPont announced it joined RE100 global initiative to propel its sustainability profile and exhort commitment to 100% renewable electricity by 2050. These trends suggest injection molders will likely up their sustainability quotient to tap into the global landscape. It is worth noting that Grand View Research valued the injection molded plastic market at USD 284.7 billion in 2021. 

Related Reports:

• European Pharmaceutical Industry ESG: https://astra.grandviewresearch.com/european-pharmaceutical-industry-esg-outlook
  
  
• Clinical Trials Industry ESG: https://astra.grandviewresearch.com/clinical-trials-industry-esg-outlook
  
  
• Antibiotics Industry ESG: https://astra.grandviewresearch.com/antibiotics-industry-esg-outlook

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

The Rise of ESG in Smart Agriculture Industry

Stakeholders are establishing ethos to bolster environmental, social and governance (ESG) performance in the smart agriculture industry. Forward-looking players are enriching the lives of producers and consumers through sustainable innovation to minimize environmental footprint. State-of-the-art technologies, including precision farming, automation, sensors and cloud computing, have become the next big thing in the agriculture industry. ESG investors are expected to drive capital flows to help farmers overcome livelihood and other barriers to adopting environmentally friendly smart technologies.

Governing bodies and watchdogs have vouched for building resilience for people, agriculture food system and sustainability to augment agricultural productivity and incomes. An unprecedented spike in the global population and shifting diets have spurred the demand for smart agriculture to manage cropland, forests and livestock.

A feature story on the World Bank website claimed that acute food insecurity in 2023 could overtake the food crisis witnessed in 2007-2008. With agriculture being prone to climate change, weather variability, soaring temperature and invasive crops have elicited challenges and opportunities for investors and other stakeholders. The World Bank infers that agriculture produces around 19–29% of total greenhouse gas (GHG) emissions.

Environmental Perspective

The agriculture sector is witnessing a seismic shift with an increased focus on minimizing emissions, preventing deforestation and bolstering productivity. Climate-smart agriculture has become paramount to avoid or reduce GHG emissions, reflecting expectations from stakeholders that businesses should deliver not only profits & revenue but also ESG performance. Extreme weather events showed the repercussions of climate change on agriculture.

Farms are expected to count on bespoke solutions to foster their sustainability strategies. For instance, Argus Controls uses a proprietary control algorithm to automate the growing process and forecast specific needs, including watering, lighting and feeding cycles. With sustainable production gaining a stronghold, the North American cannabis cultivation and manufacturing experts unveiled Sustainable Cannabis Coalition (SCC) in January 2021 to propel sustainability practices in the cannabis industry.

Social Perspective

Farmers and investors are responding to the need for sustainable agricultural practices to underpin economic and nutrition livelihoods, employee safety & well-being and reinforce diversity, equity and inclusion. AGCO Corporation initiated the FOCUS 2.0 program with a 40-step blueprint to create a robust safety culture. It reduced its total case incident rate (TCIR) by 14% in 2022 vis-à-vis the preceding year, the company mentioned in the 2022 Sustainability Report.

The American agricultural machinery manufacturer underscored employee engagement through programs, including Voices. Predominantly in 2022, almost 20,000 employees shared their voices in the annual Voices Survey. The company noted that its engagement score stood at 69% and is on course to take the tally to the 75% target by 2025. The U.S.-based company collaborated with the Faça Um Bem Incrível" (Make a Great Good) social project in Brazil that redirects fresh produce which would otherwise go to waste. The initiative fostered over 150 rural workers and 20 local food producers.

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

Governance Perspective

The need for the Board to provide sustainability strategy, goals and policies has fueled the significance of sound governance, transparency, ethics & compliance, diversity and good corporate behavior. For instance, Cargill formed an ESG Committee to underscore governance and accountability. It has teamed up with the World Economic Forum, the World Business Council for Sustainable Development (WBCSD) and Tropical Forest Alliance (TFA) to undergird operation and stakeholders' engagement.

The company has strengthened its ethics & compliance portfolio to set a foundation for sustainable growth. Cargill completed over 80,000 hours of mandatory online compliance training in 2022 on bribery and corruption, monitoring government donations & gifts and entertainment expenses. In January 2022, the company celebrated Ethics Week to foster employee ethics.

ESG investors expect farmers to overcome hurdles to adopt smart farming strategies. Accordingly, organic and inorganic strategies will be pronounced in the near terms. For instance, farmers in Sri Lanka augmented land under irrigation by 15% during the dry season, largely due to their training in the alternate wetting and drying (AWD) techniques. These dynamics validate Grand View Research's valuation of the global smart agriculture market at USD 14.44 billion in 2021 which could witness a double-digit CAGR of 10.8% between 2022 and 2030.

Related Reports:

• Mushroom Industry ESG: https://astra.grandviewresearch.com/mushroom-industry-esg-outlook
  
  
• Plant-based Meat Industry ESG: https://astra.grandviewresearch.com/plant-based-meat-industry-esg-outlook
  
  
• Dairy Product Industry ESG: https://astra.grandviewresearch.com/dairy-product-industry-esg-outlook

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

Role of ESG in Shaping the Biofuel Industry Future

Stakeholders are counting on environmental, social and governance (ESG) goals to decarbonize the supply chain of the biofuel industry. The global push to replace fossil fuels with biofuels has sparked innovations and prompted industry players to invest in renewable feedstock. Sustainable solutions will warrant infrastructure developments, demand signals and sound corporate governance. Energy companies will likely consider ESG risks and opportunities for a low-carbon economy.

The need for clean energy has spurred the penetration of renewable sources. According to an IEA report, in the net zero scenario, biofuel produced from residues, wastes and dedicated crops that do not compete with food crops account for 50% of the biofuels consumed in 2030. Moreover, biofuels can prevent 4.4% of global road transport oil use. 

Businesses are responding to the need for low-carbon fuels to help decarbonize the automotive, transport, marine and aviation sectors. For instance, Raízen produced approximately 3 billion liters of ethanol from sugar cane, while around 26 million liters of second-gen cellulosic ethanol from inedible agricultural waste in 2022. Besides, during the same period, Shell inked a non-binding MoU with Lufthansa to supply sustainable aviation fuel (SAF) to help reduce carbon emissions from air travel. 

All that glitter is not gold. Green campaigners claim that biofuels could disrupt land use patterns that may lead to increased GHG emissions, air and water pollution and pressure on water resources, thereby augmenting food prices. According to Transport & Environment, palm biodiesel is three times worse for the climate than fossil fuel. Besides, the watchdog claimed that every day around 19 million bottles of rapeseed and sunflower oil, and 14 million bottles of soy and palm oil are burned across Europe. Amidst the flak received from governing bodies, forward-looking companies and innovators are expected to bolster their ESG profile to enhance their brand values. 

Valero Energy Emphasizes Reducing Scope 1 and 2 Emissions

Sustainable fuels have become paramount in contributing to the energy transition and a decarbonized economy. Forward-looking companies, such as Valero, have bolstered their emission targets and are gearing up to propel a low-carbon economy. The company has injected over USD 4.65 billion into low-carbon fuels business. In 2021, it allocated over 70% of the growth capital to low-carbon projects. Furthermore, the U.S.-based company is on course to minimize and displace 100% of refinery Scope 1 and 2 GHG emissions by 2035. 

The petroleum refinery is expected to augment the total annual capacity of the new renewable diesel plant to 1.2 billion gallons and 50 million gallons of renewable naphtha. Similar to Shell, Valero has spurred emphasis on sustainable aviation fuel: it is assessing the engineering capability to include SAF in the new renewable diesel facility in Port Arthur. Renewable fuel and SAF could be game changer to undergird the ESG profile and create long-term value for stockholders.

Diversity and Equity Garner Headlines in Bunge Limited

Mental well-being and diversity, to name a few, have become the bedrock for organizations to propel their ESG rankings. With shifting trends, training, diversity, equity and inclusion have amassed huge attention across business verticals. In 2021, Bunge offered its employees over 87,000 hours of training, while over 60 participants were in targeted female development programs. The company infers that around 44% of all new hires across the organization were women. 

Bunge Employee Resource Group has furthered its focus on community building and awareness initiatives, including Proud & Allied, Women @Bunge, Veterans, Bunge Global Black Network and Asian Professionals. Besides, the U.S-headquartered company also established a “Together We Grow” consortium—a coalition (public-private) between food companies, agriculture, the USDA, nonprofits and universities—to address diversity and inclusion within the food and agriculture sectors in the U.S. Brands will potentially put their energy into building an organization that complements diversity and fair representation at every level.

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

Commitment to Ethics & Compliance Paves Way for Petrobras

A governance model that fosters transparency, ethics, compliance and integrity has become instrumental in fostering ESG practices. Petrobras has formed an Ethics Commission to oversee compliance with the Code of Conduct of the Federal Senior Management (CCAF). It also supervises the Compliance Program through the Statutory Audit Committee with the support of the Senior Management. 

Compliance risk management has gained ground to monitor, define, control and report actions as a riposte to the risks and prioritize money laundering, fraud & corruption, harassment, antitrust, conflict of interest, trade sanctions and embargoes. The organization asserts it has an independent board for the compliance program. Robust history of good governance and manufacturing biofuel ethically will enable companies to bring ESG solutions to farmers and customers. 

The competitive nature of the industry indicates sustainable sourcing of products and the role of biofuels across business verticals will steer the growth trajectory. Governments exhibited resilience amidst havoc wracked by the COVID-19 pandemic. In June 2022, the USDA announced pouring USD 700 million to restore sustainable fuel markets grappling with the outbreak. Besides, the Wall Street Journal was reported to have mentioned that Archer Daniels Midland (ADM) would receive USD 50 million in U.S. aid to tone down losses during the pandemic. These ESG trends validate Grand View Research’s projected CAGR of the global biofuel market at 6.9% between 2019 and 2024.

Related Reports:

• Biomass Power Industry ESG: https://astra.grandviewresearch.com/biomass-power-industry-esg-outlook
  
  
• Hydrogen Generation Industry ESG: https://astra.grandviewresearch.com/hydrogen-generation-industry-esg-outlook
  
  
• Solar Energy Generation Industry ESG: https://astra.grandviewresearch.com/solar-energy-generation-industry-esg-outlook

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

The Intersection of EdTech and ESG: A Sustainable Future

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. 

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. 

Related Reports:

• Online Tutoring Services Industry ESG: https://astra.grandviewresearch.com/online-tutoring-services-industry-esg-outlook
  
  
• Business Process Outsourcing Industry ESG: https://astra.grandviewresearch.com/business-process-outsourcing-industry-esg-outlook
  
  
• Telecom Services Industry ESG: https://astra.grandviewresearch.com/telecom-services-industry-esg-outlook

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

The Growing Importance of ESG Metrics in Food Grocery Retail Industry

A strategic combination of brick-and-mortar stores and sustainability has come of age to help create a society free of hunger and waste—a commitment that is all but likely to foster the ESG performance of food grocery retailers. A holistic approach and concerted efforts for a circular economy have unlocked avenues of opportunities to underscore sustainability, complementing good governance, transparency, ethics, diversity, health & wellbeing, renewable energy and greenhouse gas reduction.

Grocery CEOs, shoppers, vendors, investors, NGOs and government organizations are zeroing in on ESG targets to streamline the path to sustainability. A spike in greenhouse gas emissions has meant grocers have upped their efforts on environmental, social and governance fronts—known as ESG.

With consumer behavior shifting towards sustainable products, more so during the COVID-19 pandemic, food manufacturing companies have exhibited resilience. Of late, brands are not shying from making their ESG performance public, communicating their milestones and sharing credentials.

Key Companies:

    • Walmart

    • Costco Wholesale Corp

    • 7-ELEVEN, Inc

    • Amazon.com Inc

    • The Kroger Co.

Learn more about the practices & strategies being implemented by industry participants from the Food Grocery Retail Industry ESG Thematic Report, 2023, published by Astra ESG Solutions

Walmart Echoes Green Growth

Millennials and the Gen Z population prioritize sustainability-marketed products as grocery shoppers emphasize GHG emission reduction and raw material conservation. Amidst the popularity of ready-made meals, consumers expect brands to adhere to sustainability goals. Brands are gearing to reduce virgin plastic content and invest in recyclable packaging. Walmart is heading to 100% recyclable, reusable or compostable packaging by 2025. The behemoth aims for 20% post-consumer recycled content in private-brand product packaging across North America by 2025.

The American retail brand is on the cusp of innovation and is committed to science-based targets (SBTs) to attain a 35% reduction in absolute scopes 1 & 2 emissions by 2025. In fact, the company is on course to minimize or avoid one billion metric tons of GHG emissions (Project Gigaton) in the global value chain by 2030. It claims that over 4,500 suppliers have joined the project since 2017.

On the other side of the spectrum of opportunities and challenges, an unprecedented rise in waste has prompted Walmart to use reusable packaging containers and navigate unsold food issues. The retailer giant is aiming for zero operational waste in the U.S., Canada and Mexico by 2025. Leading brands are expected to develop an ESG impact that resonates the sentiments of the circular economy.

Kroger Insists on Food & Product Safety to Bolster Philanthropy

The COVID-19 disruption was a wake-up call for retailers to reinforce responsible sourcing and foster quality food across the supply chain. A robust social profile is paramount to provide convenience and add value to customers through the inculcation of, including but not limited to, integrity, safety, respect and inclusion. Kroger has set bullish strategies across manufacturing and distribution centers, such as environmental monitoring programs, hazard analysis and risk-based preventive controls, leadership and training, food allergen control, food safety maintenance, cleaning practices and pest prevention.

Brands are positioning themselves to tap into social pillars to foster donations and meals for communities. Ever since the retail company set the Zero Hunger | Zero Waste plan in 2017, it has taken a giant stride to achieve the philanthropic goals of creating communities free from food waste and hunger. Kroger infers to have trained 98% of associates in personal safety, while it boasts of rescuing 94 million pounds of surplus food for donation. In 2021, the American brand asserted to have directed 546 million meals to communities.

The retailer explored diversity-focused development and learning opportunities to underpin positive change in the workplace. The company joined forces with historically Black colleges and universities (HBCUs) and Hispanic-serving institutions (HSIs) to foster a diverse talent pipeline. It essentially injected around USD 450 million into associate wages and training in 2021.

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

Costco Wholesale Underscores Corporate Governance

Strong corporate governance heralds a company culture that complements transparency, ethics & compliance, engagement in public policy, board diversity and human rights. The FY 2022 saw Costco make sustainability a "core part of the charter and responsibility" for the Board's Nominating and Governance Committee. It has also introduced ESG Executive Advisory Council and aligned executive compensation with ESG priorities, including but not limited to, waste reduction, diversity, equity and inclusion (DEI), climate and resource consumption.

Risk assessment in financial planning, strategy and business has become paramount to upholding sustainability standards. Costco has qualitatively analyzed and identified potential climate-related risks influencing the Food & Beverage and Multiline retail industries. In 2022, its global executives reportedly held in-depth climate-pertaining scenarios assessments to decipher risks and opportunities to supply chain, operations, goodwill, employees, members and products.

The retailer has taken a quantum leap in transparency through frameworks, including CDP. The retail giant has rolled out several frameworks to augment data security. The manufacturing company is counting on the NIST Cyber Security Framework (CSF), ISO27001 and the Payment Card Industry Data Security Standard (PCI DSS). The adoption of measures, such as multi-factor authentication, phishing detection and mitigation and file integrity monitoring, has furthered the company's governance policies.

At a time when brands are grappling to protect the planet and propel their business performance, creating a transparent baseline around GHG emissions could be the silver bullet. For instance, the AEON Group has set the AEON Decarbonization Vision 2050 to minimize CO2 emissions to zero at stores by 2040, helping achieve a decarbonized society. 

Growth Of The Food Grocery Retail Market

As of 2022, the global food grocery retail market is valued at USD 11,324.4 billion and is expected to grow at a compound annual growth rate (CAGR) of 3.0%. In addition to increased grocery expenditures induced by COVID-19 lockdown, higher online grocery sales volumes, and consumer polarization, the growth is primarily attributed to these factors. As a result of the pandemic, consumers became polarized where some were ready to pay for premium-priced products. The food & grocery retail sector has been altered by the COVID-19 pandemic.

Related Reports:

• Snack Industry ESG: https://astra.grandviewresearch.com/snack-industry-esg-outlook
  
  
• Dietary Supplements Industry ESG: https://astra.grandviewresearch.com/dietary-supplements-industry-esg-outlook
  
  
• Protein Supplements Industry ESG: https://astra.grandviewresearch.com/protein-supplements-industry-esg-outlook

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 Trends Shaping the Online Grocery Industry

Grocery CEOs, consumers and grocers envisage online shopping as the next big thing, spurred by technological advancements and greater convenience. The COVID-19 onslaught was partly attributed to online grocery flooding the market. While leading players and startups jumped on the bandwagon, ESG watchdogs were wary of the sustainable impact the industry would have on the planet. Stakeholders are expected to harness gender equality, fair wages, waste reduction, responsible sourcing of farm produce and sound corporate governance. 

The ease of browsing, getting items ticked off and quick delivery have been a revelation—a delivery service delivering to multiple homes has negated the need to drive to the store. More than 17 million metric tons of CO2 pollution are attributed to weekly household trips to the grocery store, a report cited by the U.S. EPA claimed. Incumbent players have furthered investments in electric vehicles (EVs) to offset greenhouse gas emissions. In April 2022, India-based Swiggy, a food delivery company, joined forces with EVIFY to enable grocery and food delivery through EVs in Surat, Gujarat. 

Industry leaders are likely to emphasize upstream transportation (farm-to-retail) and foster last-mile transportation—pushing for deliveries and offsetting personal trips. Centralized grocery delivery services and fulfillment centers have brought a paradigm shift in minimizing GHG emissions and food loss. State-of-the-art technologies, including predictive analytics, can provide the silver bullet to prevent pilferage and streamline sourcing. Besides, boosting access to affordable and high-quality fresh food, along with the focus on diversity, integrity and transparency, will remain instrumental for a circular economy. 

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

Kroger and BigBasket Invest in Climate Strategy for a Sustainable Future

The online retail boom and an emphasis on speed and user experience—instant delivery—have disrupted e-commerce business models. Brands with sustainability strategies appeared resilient during the COVID-19 outbreak, banking on online shopping to conserve raw materials and minimize GHG emissions. Kroger is poised to establish a new Scope 3 goal for supply chain emissions reduction in line with its Science Based Targets initiative (SBTi) commitment. The American retail giant has set 2030 sustainable packaging goals, such as using 100% recyclable, reusable and/or compostable packaging. 

Amidst emerging climate risks and opportunities, Kroger inferred using infrared refrigerant leak-detection technology in 2,000 stores. Meanwhile, in 2021, Bigbasket, a TATA Enterprise-owned online grocery retailer, teamed up with New Leaf Dynamic to install a biomass-powered chiller that can save 186 tons of CO2 annually. The Indian giant cited in its Green Report 2022 that it produced 5,457,000 kWh of solar power (reducing 1,670 tons of GHG emissions) in 2022 and 5,458 electric delivery vehicles helped minimize 7012 tons of CO2 emissions during the period. 

Amazon Fresh Navigates Changing Social Landscape 

Amidst rampant layoffs and the prevalence of workplace injuries, grocery warehouses and fulfillment centers have prioritized the social pillar. In January 2023, Amazon announced over 18,000 job cuts, denting workers across industry verticals, including grocery stores. People employed as supply chain managers, program managers, software engineers and store designers bore the brunt in online grocery delivery and fresh stores businesses. That said, the American behemoth inferred in May 2023 that it had poured CDN 25 billion since 2010 in its Canadian operations, including job creation and establishment of data centers and fulfillment centers. In September 2021, the U.S. giant committed USD 1.2 billion to offer 300,000 employees education and skills training programs till 2025. 

Incumbent players have upped investments to make the workplace safer and foster a healthy environment. Amazon has a team of health coordinators, physiotherapists and advisors. The occupational doctors perform medical checks and report trends in major risk areas. 

The U.S. e-commerce company has augmented diversity, equity and inclusion (DEI) efforts to underscore its sustainability quotient. In 2021, it committed to a 30% rise year over year in hiring U.S. black employees in level 4 through level 7 from the preceding year’s hiring. The multinational company warrants 100% of employees to take inclusion training. 

Governance Key for Relentless Sustainable Goals of Rakuten and Walmart

Sound corporate behavior is second to none for an agile business process and an inclusive global system that complements ethical business practices. Rakuten creates a list of ESG themes with the assistance of external experts and refers to the UN Sustainable Development Goals and Sustainability Accounting Standards Board (SASB) Materiality Map.

The Japanese company has appointed Chief Compliance Officer (CCO) to undergird compliance management. It has banked on a risk-based approach to define high-risk issues and implement measures, such as prevention of money laundering and terrorist financing; prohibition of bribery and corruption; and adherence to competition, antitrust and other related laws. 

Rakuten has propelled board diversity—outside directors account for 58.3% of the BoD, while 25% are foreign directors. Meanwhile, Walmart expects Board members to disclose their race/ethnicity and gender annually. Its board had 27% women and 18% directors who are racially/ethnically diverse (as of April 2023). 

Millennials and Gen Z want the e-commerce sector to foster social contributions, operate in a responsible supply chain and bolster transparency. ESG reporting could be pronounced, prompting online incumbents to further their investments in sustainability. Grand View Research anticipates the global online grocery market size to depict upward growth through 2030. Investments in the circular economy can create momentum and be a differentiating factor in an ever-growing competition in the online grocery business. 

Related Reports:

• Real-time Payments Industry ESG: https://astra.grandviewresearch.com/real-time-payments-industry-esg-outlook
  
  
• Digital Payments Industry ESG: https://astra.grandviewresearch.com/digital-payments-industry-esg-outlook
  
  
• Business Process Outsourcing Industry ESG: https://astra.grandviewresearch.com/business-process-outsourcing-industry-esg-outlook

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

The Intersection of ESG and Innovation in the Bottled Water Industry

Concerted efforts to boost water conservation have prompted bottled water brands to bank on environmental, social and governance (ESG) pillars. Maintaining the delicate balance between the ecosystem and human needs will foster environmental sustainability. Brands are vying to bolster their sustainability journey with commitments across packaging, climate change, water and sourcing. Moreover, emphasizing labor management, supply chain labor standards, corporate governance, board diversity and transparency will develop resiliency and help produce high-quality and safe products. 

Prioritizing ESG has become paramount for leading companies to stay ahead of the game amidst stiff competition. Consumers have increasingly sought bottled water. According to the Beverage Marketing Corporation, bottled water outnumbered soft drinks in the U.S., amassing 15.7 billion gallons of water as of 2021. The total volume of packaged drinks surpassed the all-time peak of the carbonated drink of 15.3 billion gallons in 2004. Industry players are expected to bank on the three pillars as ESG reporting is poised to garner headlines while framing sustainable strategies. 

Key Companies in this theme

    • Nestlé, PepsiCo

    • The Coca-Cola Company

    • DANONE

    • Nongfu Spring

    • National Beverage Corp.

    • Keurig Dr Pepper Inc.

Environmental Perspective 

Sustainable packaging solution has received an impetus to negate the environmental impact of plastic bottles. According to the survey conducted by the Harris Poll for the International Bottled Water Association (IBWA), nine out of ten Americans sought the availability of bottled water wherever other drinks were sold. Soaring consumer preference for bottled water has prompted industry leaders to use recycled PET and HDPE plastic.

Prominently, PET bottled water containers have reduced material usage and weigh less. Moreover, rPET (recycled PET) and rHDPE (recycled HDPE) have become pronounced. In February 2023, Revalyu announced an infusion of USD 50 million to build a PET bottle recycling plant in the U.S. The company will use water- and energy-conserving advanced recycling methods on 12 million PET bottles per day when operation starts in 2024. With recyclable and sustainable packaging more in demand than ever, industry leaders will likely bolster their environmental profile. 

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

Social Perspective

Diversity, equity and inclusion (DEI) has become imperative to narrow the gender gap across organizations. Recruiting from diverse backgrounds, social dialogue and emphasizing workplace safety can provide promising growth opportunities. In 2021, Danone rolled out the “Future of Work” study to redefine the ways of working. Besides, it fosters equal pay for men and women and has deployed a parental policy globally, covering 91,628 employees. 

Companies have left no stone unturned to underpin and promote human rights. In 2021, Danone bolstered a partnership with UN Women and Bonafont in Mexico to equip and train women with entrepreneurship skills. The company has propelled its human rights policy as it has pledged to deploy and develop Human Rights Due Diligence (HRDD) systems emphasizing forced labor in its operations. In 2020, it attained the 5-year ambition of reducing lost time accidents by 50% between 2015-2020. Ensuring health & safety with a safe working environment will remain indispensable to streamline operations.

Governance Perspective

The business practices and principles designed to propel corporate governance, tax transparency, ethical behavior, accountability and board diversity have become pronounced. The Coca-Cola Company has an Audit Committee, a Committee on Directors and Corporate Governance, a Talent and Compensation Committee, an ESG and public policy committee, a Finance Committee and an Executive Committee to help smoothly discharge governance duties. 

In 2022, the Talent and Compensation Committee gave the nod to link the ESG performance measures to annual and long-term incentive programs, thereby fostering executive compensation. The beverage giant has also incorporated its 2030 Water Security Strategy and World Without Waste packaging strategy (50% recycled material in all packages by 2030) into the 2022-2024 incentive awards. 

The growing prominence of water security and the need for smart water policies has amplified the topic of water governance. Coca-Cola has incorporated certain ESG metrics to underscore water issues. It has over 225 bottling partners across 200 countries and territories. Moreover, in 2021, the drink company earned a spot on the “A-List” of CDP for leadership in corporate transparency and action on water security. 

Incumbent players have depicted increased traction for organic and inorganic growth strategies to tap into the global ecosystem. Brands are likely to map opportunities from collaboration, technological advancements, innovations and research & development activities. To illustrate, in December 2022, PepsiCo set a goal to double the reusable packaging for beverages to 20% by 2030. These trends suggest that the global bottled water market could expand at 6.7% CAGR between 2022 to 2030. 

Related Reports:

• Luxury Footwear Industry ESG: https://astra.grandviewresearch.com/luxury-footwear-industry-esg-outlook
  
  
• Handbag Industry ESG: https://astra.grandviewresearch.com/handbag-industry-esg-outlook
  
  
• Disposable Gloves Industry ESG: https://astra.grandviewresearch.com/disposable-gloves-industry-esg-outlook

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