Top 6 Companies Underscoring ESG Profile in Paints and Coatings Industry

Sustainable and innovative solutions, underpinned by ESG goals, have garnered immense traction in the paints and coatings industry. Substituting hazardous substances and minimizing energy demand have posed challenges to stakeholders. Needless to say, paints and coatings offer essential coatings for offshore wind power plants, add color to the spaces, boost durability and underpin the transportation and hygienic production of food. The substance has had a vital role in helping minimize the environmental footprint, largely due to its innate ability to boost recyclability and bolster the life cycle of several products. 

Lately, key players have explored opportunities in waste management and efficient production processes. However, several companies in the paint industry have been accused of greenwashing—using sustainability as a marketing gimmick—to hide their environmental lapses. The UN chief has been vocal in pushing for zero tolerance for net-zero greenwashing. According to the competition regulator in the U.K. Competition and Markets Authority, 40% of green claims made online could be misleading. 

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

EU’s corporate sustainability reporting directive (CSRD) will compel companies to disclose comprehensive data to enhance the assessment of their sustainability efforts. It is worth noting that the EU Council gave a nod to CSRD in November 2022, a buoyant step to curb divergent sustainability standards, propel the company’s accountability and ease the transition to a sustainable economy. In March 2022, the British Coatings Federation (BCF) rolled out the “Green Claims Guide to Decorative Paints” to tackle greenwash claims in decorative paints. BCF asserted that the use of the terms “VOC free” and “Zero VOC” are false claims and should be avoided in the paint industry. 

The U.S. Federal Trade Commission initiated a set of Green Guides to help marketers ensure their claims are not deceptive. Prominently, Green Guides were first issued in the U.S. in the early 1990s. In December 2022, the FTC sought public comments—on the term “recyclable,” “recyclable content,” need for additional guidance and carbon offsets and climate change—on the likely updates to the Green Guides. 

Leading companies that have propelled their ESG strategies are delineated below: 

1. Sherwin-Williams Pits on Environmental Targets to Gain Ground

The environmental profile has garnered prominence as sustainability continues to steer the growth across business verticals. Companies are pushing to the limit and finding ESG as a pivotal portfolio to contain carbon emissions and reduce waste in their value chain. Sherwin-Williams laid down its 2030 environmental footprint targets—to minimize waste disposal intensity by 25%, curb absolute Scope 1 and 2 greenhouse gas emissions by 30%, boost operational energy efficiency by 20% and expedite electricity from renewable sources to 50% of total electricity usage. The company notes that failure to mitigate environmental impact and emissions or respond to shifting consumer behavior and preferences could have repercussions in the form of reduced demand for products and services.

2. AkzoNobel Propels Carbon Neutrality Commitment

Companies, such as AkzoNobel have recognized the significance of ESG and underpinned their sustainability quotient. The Netherlands-based company committed to becoming carbon neutral by 2050 and has used a holistic Sustainable Product Portfolio Assessment (SPPA) framework. The chemicals firm is on course to becoming a zero waste company by 2030—77% reduction in waste to landfill was witnessed in 2021 vis-à-vis the preceding year. It has also developed wood coatings to foster manufacturing efficiency and energy-saving powder coating to provide 30% more output. 

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

3. PPG Industries Banks on Diversity, Equity and Inclusion to Stay Ahead of the Curve

Paints and coatings manufacturers have exhibited an unwavering commitment to further a culture of diversity, equity and inclusion. Chemical companies are leaving to stone unturned to propel the leadership roles for women and under-represented ethnic or racial groups. Not to mention, leading players have furthered their investments in bullish initiatives to strengthen accountability and engagement. In essence, PPG mentioned in its 2021 ESG report that an infusion of USD 7.4 million was made to underscore racial equity with educational pathways for people of color and black communities. It also injected USD 13 million to foster education and community sustainability in communities globally, while it is also committed to pouring USD 20 million from 2020 through 2025 to boost educational opportunities and social justice in underrepresented communities. 

4. Nippon Paint Holdings Emphasizes Occupational Health & Safety

Global watchdogs have pushed for increased health measures as chemicals manufacturing is prone to accidents and health hazards. Investments in workplace safety have become pronounced to undergird the social profile.  In 2022, Nippon Paint embraced the Group-wide Global Code of Conduct that considered stakeholder and employee safety in its activities. Meanwhile, in FY 2020, the Japanese behemoth updated the risk assessment lists to identify and address serious risks, including explosions and fire that lead to operation suspension. It has also put the spotlight on safety training programs. The company offered an online ISO internal auditor training course to 113 participants, online follow-up training to 78 new employees and online entry training to 89 new employees. 

5. BASF Navigates Opportunities in Corporate Governance

Transparent and effective corporate governance has become indispensable to supervising and managing organizations and enthusing the confidence of financial markets, investors, employees, customers and other stakeholders. BASF has a two-tier corporate governance system with an effective and transparent separation of company supervision and management between its Board of Executive Directors and the Supervisory Board. As of December 2021, the German multinational company had six members on the Board of Executive Directors. It has also taken a giant stride in compliance management, emphasizing audits and participation in training. In the 2021 report, BASF inferred that 77 internal audits were conducted on adherence to compliance standards and over 53,000 employees participated in compliance training.

6. RPM Prioritizes Diversity in Board Vacancies 

Concerted efforts from RPM towards corporate governance and ethical practices & programs have placed the company in a solid position. It has deployed Route 168 training program and promoted transparency, balanced decision-making and diversity & inclusion across its operations. The Governance and Nominating Committee of RPM reports to the full Board on developing and recommending a set of corporate governance principles, overseeing ESG strategy, and identifying diverse candidates for Board members, among others. In January 2020, the company gave a green light to the Rooney Rule to fill Board vacancies, suggesting a mandate to include diversity in ethnicity and gender in the selection pool. 

Companies of all sizes have envisaged ESG as tailwinds that can open avenues of growth and innovations. Leading players are gearing to underpin effective governance frameworks for fairness of the management, objectivity and transparency, and most importantly—to earn trust. A sustainable solution, waste management and a renewed focus on health & safety are some of the underlying factors that can take the ESG goals to a whole new level. The paints and coatings market size was pegged at USD 146.17 billion in 2019 and could witness a 4.3% CAGR between 2020 and 2027. Bullish ESG strategies will be pivotal to tapping into the global landscape. 

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 Gain Ground Among Jewelry Industry Players

Consumers shopping for jewelry are favoring companies and brands that prioritize sustainability, recyclability and diversity. Brands have leapfrogged their position in environmental, social and governance (ESG) metrics as it can propel positive sentiments among stakeholders, venture capitalists and investors. Incumbent players foster their ESG performance with values and measurable goals that help them stay ahead of the curve. The year 2023 could be a defining year for leading companies in the jewelry industry as stakeholders and shareholders navigate opportunities and challenges while bolstering their sustainability profile. Brands have exhibited traction for transparency and traceability protocols amidst evolving demand across advanced and emerging economies. 

Artisans and customers alike have emphasized sustainability, gender equality and responsible consumption & production for unparalleled social and environmental practices. The incorporation of social, environmental and governance integrity to craft, process and source jewelry has become a game changer. Stakeholders are fostering the jewelry supply chain through responsible mining and sustainable sourcing of raw materials. Prominently, sustainability has served as a foundational element, prompting industry leaders to rev up efforts on all fronts, including responsible mining. 

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

Ever since the Initiative for Responsible Mining Assurance (IRMA) introduced the Standard for Responsible Mining in 2018, the world has observed leading practices in social and environmental responsibility for mining operations (large scale). More than 62 mining companies are reported to have been engaged in IRMA as of August 2022. Besides, the Responsible Gold Mining Principles (RGMPs) have mustered up the confidence among investors and stakeholders as the World Gold Council asserts it will address major ESG issues for gold mining companies. Responsible gold mining has come on the horizon with stakeholders favoring brands, products and services prioritizing transparency, accountability, combating corruption, resolving grievances, women participation and promotion of diversity and prevention of bullying. 

Pandora Brings Lab-created Diamonds to the Fore

Diamonds grown in labs have become the next big thing with the U.S. and China leading from the front. Innovative companies are leaving no stone unturned to tap into the ESG potential through investments in lab-grown diamonds. Escalating concerns pertaining to the working practices and environment have prompted investors, governments, employees, supply chain partners and communities to seek alternatives to mined diamonds. Leading jewelry brands and lab-grown manufacturers are adding lab-created diamonds to their product offerings to keep up with ESG goals. For instance, in August 2022, Pandora announced the rollout of lab-grown diamond jewelry in the U.S. and Canada.

With social welfare and sustainability at the top of the mind for trading, mining and retail companies, industry players are likely to manufacture lab-created diamonds with lower carbon emissions. However, there is a caveat—lab-made diamonds are infamous for taking plenty of energy to produce in a high-temperature and high-pressure technology. In a bid to negate the sustainability concerns, industry participants are expected to count on using renewable energy. The Danish company claims its diamonds are made using 100% renewable energy with a carbon footprint of around 5% compared to a mined diamond. It has an audacious goal of crafting all its jewelry from recycled gold and silver by 2025. Besides, Pandora’s Sustainability Report 2021 suggests around 97% of waste was recycled at its crafting facilities, while 54% of gold and silver in 2021 stemmed from recycled sources. 

Tiffany Banks on DEI Initiatives to Stay Ahead of the Game

Soaring popularity and awareness around sustainability have enabled major players to boost their non-financial performance, including social aspects. Millennials and the Gen Z population have exhibited traction for gender diversity, women in leadership, workers’ health & safety, social impact and community investment. Prominently, Tiffany has underscored its ESG metrics to keep abreast with the trend. In December 2022, the U.S.-based company released its 2021 Sustainability Report to embark on an equitable and sustainable future. While it alluded to contemplation to move towards 100% traceability of all newly sourced and individually registered diamonds, the company has taken a giant leap towards gender representation. 

Tiffany states women account for more than 70% workforce and they contribute significantly (more than 60%) in manager and above positions. Moreover, women represent around 49% of Vice President and above roles. Furthermore, in 2021, the company rolled out the “About Love Scholarship Program” and pledged USD 2 million in scholarship funding for arts and creative fields students at five Historically Black Colleges and Universities (HBCUs) through 2024. It contemplated launching a social impact platform in 2022 to foster opportunities for underrepresented communities in creative fields and fine jewelry. 

The company has taken a quantum leap to propel diversity, equity and inclusion (DEI) initiatives. It introduced an Interview Brilliance pilot program to foster inclusive hiring practices. In 2022, the high-end luxury jewelry company added Juneteenth and a Culture Day—two floating holidays—to underpin an inclusive workplace culture. It has also introduced foundational tools and messaging on DEI to garner an 85% company-wide inclusion index score. Meanwhile, it is worth noting that Tiffany & Co. is no longer a publicly traded company following its acquisition by LVMH Moët Hennessy Louis Vuitton SE in January 2021. 

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

Leading Players Navigate Opportunities in Governance

Governance has gradually gained ground as a primary driver for long-term value creation and safeguarding corporate interests in line with environmental and social issues faced in the business. Sound governance offers transparency and accountability in decision-making to reinforce sustainability strategies. Signet has taken a giant stride in its governance portfolio with an increased focus on ethnic- and gender diversity and inclusion of LGBTQ+. Notably, women chair around 80% of Standing Board Committees. Meanwhile, its governance and technology committee nominates Directors and provides inputs on implementing corporate governance guidelines, board composition, data privacy risks and protocols and cybersecurity. 

Incumbent players have also emphasized the significance of independent directors to propel corporate compliance and shared values. According to LVMH’s 2021 Social and Environmental Responsibility Report, around 57% of its BOD members are independent directors, while the attendance rate stacks at 98.4%. Furthermore, auditing has also been an invaluable proposition to propel the governance profile. According to Pandora’s Sustainability Report 2021, the consolidated Scope 1, 2 and 3 emissions and recycled gold and silver total were included in the Sustainability Report. Besides, in 2022, the company established a Responsible Marketing Committee and formed an Inclusion and Diversity Committee to oversee the implementation of new plans and policies. 

The competitive landscape is such that industry participants could boost their position in identifying sustainability risks, opportunities and challenges. ESG pillars could also act as a viable and strong marketing tool to enhance sustainability initiatives. Sustainable production and a transparent supply chain have become indispensable to tapping into the global landscape. An increased focus on 100% traceability, environmental synergy, social responsibility and sound governance could be the way forward. For instance, in March 2022, Brilliant Earth Group revealed its first Sustainability Report emphasizing the commitment to Transparency, Sustainability, Compassion and Inclusivity principles. Notably, it reportedly provides blockchain-powered diamonds, leveraging customers to track the diamond from its origin. 

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 are Businesses Pursuing ESG Goals in the Solar Inverter Industry?

The global push for green initiatives and the energy crisis fueled by the Russia-Ukraine war have spurred the solar inverter industry growth. Implementation of ESG strategy has become pronounced to help companies update and assess their goals. Investors prioritize ESG criteria to screen possible investments and it helps companies build trust with stakeholders and foster a sustainability portfolio. Key players have exhibited increased traction for renewable energy technologies and net zero products to provide low-carbon power generation solutions at a reduced cost.

Solar cell manufacturing is resource intensive and warrants a significant amount of industrial material and water. Besides, the manufacturing process may involve unsustainable mining practices and toxic waste. The issue of labor practices has also garnered headlines. The 2021 International Labor Organization (ILO) report suggests that 50 million people are in modern slavery every day. Moreover, the Credit Suisse Global Wealth Report claimed the world’s richest 1 percent—those with over USD 1 million— own 45.8 percent of the world’s wealth. Stakeholders demand ESG discipline from companies, their value chain, regulators, investors and consumers. 

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

Environmental Perspective

Enterprises and organizations with sustainable policies have exhibited increased inclination for the environmental aspect. The World Economic Forum ranked environmental risks as the five most critical long-term threats in its Global Risks Report 2022. Some factors, such as extreme weather, biodiversity loss and climate action failure, have made solar inverters promising investments for stakeholders with a focus on ESG portfolios. The unprecedented growth of digitization and the shift from fossil fuels to renewables have encouraged leading players to boost the environment. For instance, Eaton uses power management technologies and services to enhance the quality of life and the environment. The company aims to reduce GHG emissions by 50% from its operations by 2030 from 2018 levels. The multinational power management company asserts its 94% of manufacturing waste in 2021 was diverted away from landfills through recycling, reuse, waste-to-energy or composting. The company alluded to an infusion of over USD 3 billion in sustainability R&D over the next ten years in its 2030 Sustainability Goals. 

Forward-looking players are leveraging their research and development activities and renewable energy to provide reliable, safe and efficient solutions to expedite growth in the energy transition. To illustrate, Delta Electronics is committed to using 100% renewable electricity and attaining carbon neutrality in the global supply chain by 2030. Meanwhile, in 2021, OMRON announced pouring 257 million yen (roughly USD 1.8 million) to minimize the environmental influence of its business activities. The company, having set the OMRON Carbon Zero project, contemplates minimizing emissions by over 30% by 2050. Besides, in March 2021, ABB announced it achieved the 5GW milestone of providing solar plant automation solutions in India. Stakeholders are likely to help customers avoid emissions through the modernization of grids, a smarter built environment and sustainable transport. 

Social Perspective

ESG standards have become paramount for viable working conditions, employee and stakeholder wellness and equal opportunities. Eaton has set up the Compensation and Organization Committee to oversee and review matters pertaining to social aspects, such as training and development, employee engagement, pay equity, inclusion and diversity and culture. Furthermore, Siemens aims for a 30% female share in top management by 2025. It vies for double digital learning hours by 2025 and a 30% enhancement in its globally aggregated LTIFR by 2025. The company poured €318 million (approximately USD 327 million) into employee education and training in 2021.

Meanwhile, Delta joined forces with the Taiwan Architecture & Building Center in Well architecture course in 2021 to offer innovative courses. The company adopted the “Influencing 50, Embracing 50” slogan to boost teamwork and face future challenges in its 50th anniversary in 2021. Prominently, Delta Electronics was in the pole position in overall social performance with almost 80% score. Stakeholders are also poised to emphasize fun games, contests and music to bolster the identity and connection among global employees, products and the brand. Leading players are slated to prioritize social pillar in the ensuing period to tap into the global landscape and bolster their brand position.

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

Governance Perspective

The need to achieve sustainability goals through robust corporate governance, underpinning social progress and balancing stakeholders' interests has become instrumental to staying ahead of the curve. The demand for, including but not limited to, transparency, board diversity and disclosure has furthered encouraged stakeholders to focus on the governance portfolio. According to Eaton TCFD disclosure, its board comprises 12 members—one-third are U.S. minorities and another one-third are women. The company’s governance committee is tasked to prioritize matters regarding the governance and environmental pillars of ESG. While Eaton has exhibited a sound governance system, Siemens is at the helm with over 90% score. The Supervisory Board at Siemens set a bullish target stating that at least 25% of the managing board position would be held by women until June 30th 2022. The company also augmented the external sustainability audits. According to its Sustainability Report 2021, Siemens conducted 394 sustainability audits in 2021, up from 269 audits in the preceding fiscal year. 

Emerson has upped its focus on corporate governance to foster diversity, equity, inclusion and performance-based ESG goals. To put this into perspective, 45% of Directors are persons of color or women, while 60% of the Office of the Chief Executive is diverse. The company has exhibited an increased focus on anti-corruption controls and other compliance factors, including conflict of interest, ethics allegations and data privacy. Emerson asserted in its ESG report that around 61,000 employees undertook anti-corruption training over the past three years. It alluded to its engagement with a third party to review its Ethics and Compliance program, which is in line with the Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework and the U.S. Department of Justice. 

An unprecedented surge in the demand for renewable energy, along with the rising footfall of solar power PV installation, has augured growth. The global solar inverter market size was pegged at USD 9.31 billion in 2021 and will observe a 6.2% CAGR from 2022 to 2030. Leading players are expected to expand their penetration across the Asia Pacific as China is poised to provide promising opportunities with a focus on minimizing solar power costs and bolstering incentives. Well-established companies are expected to prioritize organic and inorganic growth strategies. To illustrate, in May 2022, Eaton announced the acquisition of a 50% stake in Jiangsu Huineng Electric Co., Ltd.’s circuit breaker portfolio. Meanwhile, in February 2022, Siemens and Desert Technologies collaborated to roll out and infuse funds into solar and smart infrastructure in the Middle East, Africa and Asia. The project could have the aggregate capacity of over 1 GW and will offer reliable, clean and affordable energy in under-served areas.

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

Significance of ESG to Stay Ahead of the Game in Electric Passenger Cars Industry

A notable surge in the adoption of electric mobility, underpinned by developments in autonomous and driver-assistance systems (ADAS), mobility sharing and digitization has fostered the electric passenger cars industry size. The need for decarbonization and uptake in climate-specific funds have boded well for stakeholders promoting ESG goals. With motor vehicles being one of the principal contributors to GHG emissions, automakers are likely to prioritize environmental, social and governance pillars. Moreover, soaring demand for personal vehicles across emerging economies and the need for product safety will remain invaluable to bolster the sustainability quotient. 

Electric Passenger Cars Industry ESG

Stakeholders, such as governments, consumers and investors, are encouraging OEMs to become carbon-free and propel ESG metrics. For instance, investors expect companies to emphasize ESG aspects, with consumers exhibiting traction toward the brand that values ethical and sustainable value chain. Industry leaders are likely to prioritize ESG to simplify compliance, enhance customer trust, foster investor confidence and propel brand reputation. Companies are likely to adopt United Nations Sustainable Development Goals, greenhouse gas protocol, International Labor Organization (ILO), Sustainability Accounting Standards Board (SASB), United Nations Global Compact (UNGC) and International Organization for Standardization (ISO). 

Discover more regarding the practices and strategies being implemented by industry participants from the Electric Passenger Cars Industry ESG Thematic Report, 2022, published by Astra ESG Solutions

Bullish demand for minerals, including aluminum, copper, lithium, cobalt and nickel poses major concerns. High emissions and waste and water pollution from mineral extraction and processing could subside the social and environmental upsides of EVs. Stakeholders are slated to focus on fostering eco-friendly manufacturing and propelling sustainability. For instance, SQM, one of the largest producers of lithium in the world, contemplates boosting capacity two-fold by 2025. It is geared to minimize water usage by 50% and become carbon neutral by 2030. 

Environmental Perspective

Government regulations have put pressure on automakers to enhance fuel efficiency amidst emissions stemming from vehicle usage instead of the process of manufacturing vehicles. Climate change regulations have compelled auto companies to bolster fuel efficiency. To illustrate, Toyota aims 30% reduction of global average CO2 emissions by 2025. The company also rolled out Green Purchasing Guidelines to emphasize purchasing low-environmental-footprint parts and equipment. As minimizing carbon emissions has become business-imperative, companies are expected to report Scope 1, 2—mandatory to report— Scope 3—voluntary—to gain a sustainable competitive edge. General Motor Company aims 72% reduction of Scope 1 and 2 emissions by 2035. Besides, MMC uses Total Quality Management tools, such as Plan-Do-Check-Act (PDCA), to monitor the progress of its goals. 

Regulators, Investors and stakeholders have exhibited an increased inclination for stringent emission standards as an emphasis on the environmental consequences of their business activities could augur well for society. In September 2022, General Motors Co announced its support for forming rigorous federal emissions standards to help ensure that at least 50% of new vehicles sold would be zero-emission by 2030. The company has an audacious goal of doing away with tailpipe emissions from new light-duty vehicles by 2035. In a bid to expedite its shift to an all-electric future, GM plans to manufacture over one million units of EV capacity in North America and China by 2025.

Social Perspective

An uptick in the number of car accidents has posed challenges to automakers to propel product safety for brand value and reputation. Toyota Motor Corporation is at the top with a social disclosure score of 67%. The company has adopted Zero Casualties from Traffic Accidents goal and is offering support to drivers to eliminate traffic fatalities. The automotive giant has ramped up investments in autonomous vehicles with an infusion of USD 500 million in autonomous ridesharing and Uber. Amidst a surge in demand for passenger vehicles, Toyota has introduced programs that can augment the useful life of its models and reuse/recycle end-of-life vehicles. 

Auto companies are poised to prioritize a decent work environment and economic growth as a vast supply chain exposes companies to the risk of human rights violations. For instance, in April 2022, General Motors asked suppliers to ink a new ESG Partnership Pledge to commit to human rights, climate and sustainable procurement. The automotive behemoth vies for a certain score by 2025 for issues including diversity and non-discrimination, employee health and safety, and child and forced labor, among others. Meanwhile, MMC witnessed the highest employee turnover—around 3.33%—in the fiscal year 2020. Companies are likely to focus on measures to prevent modern slavery and protect the human rights of foreign workers. Toyota annually issues a statement on “Toyota’s action taken for Forced Labor of Migrant Workers (Statement on the Modern Slavery Acts)” within its report to foster awareness of forced labor at production sites in Japan and across the world.

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

Governance Perspective

Industry partners and other stakeholders prioritize transparency and sustainability reports to analyze and propel, including but not limited to gender diversity, directors’ roles and equity. Stakeholders have reinforced the significance of independent directors in enhancing governance and sustainability portfolios. Needless to say, independent directors act as a watchdog to oversee the operation and functioning of the senior management from a neutral perspective. Notably, GM has 12 independent directors out of 13. Moreover, 54% of its directors are women, with 67% of board committees chaired by women. The company asserted the Audit Committee would review and oversee the Sustainability Report from 2022.

Ford Motor Company and GM have a governance score of more than 70%. The former has a bullish cybersecurity program, while the latter and MMC have a cybersecurity committee. Ford has been complying with global cybersecurity standards for automakers and has adopted the Automotive Consumer Protection Principles. VW has augmented its ESG portfolio following the diesel-engine scandal wherein pervasive cheating was done on emissions tests. Volkswagen Group has underscored its efforts on transparency in the procurement of battery raw materials. For instance, in September 2020, VW joined forces with RCS Global to emphasize auditing suppliers for conformance with safe working conditions, human rights and environmental protection. 

The competitive landscape alludes to the infusion of funds into organic and inorganic strategies to foster their sustainability profiles. To illustrate, in April 2022, Mercedes-Benz announced it would cut CO2 emissions by half per passenger car over the lifecycle by the decade-end. It aims for around 50% share of BEVs and plug-in hybrids by 2025. With EVs being an essential part of sustainable transportation, stakeholders expect robust growth. The electric passenger cars market size garnered USD 120.81 billion in 2020 and is expected to depict a 32.5% CAGR from 2021 to 2028. The future of passenger vehicles could be electric and prompt stakeholders to underpin their ESG goals.

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 Shows Ways from Pollution to Solution to Recycled Plastic Companies: Astra ESG Solutions

San Francisco, January 24, 2023: The growing spotlight on the environmental, social and governance (ESG) framework has prompted the recycled plastic industry players to foster their sustainability portfolio. Stakeholders are positioning themselves to connect brands with environmentally friendly plastic. In essence, recycling companies are gearing up to minimize waste and seek innovative ways to combat carbon emissions. Amidst the global push to eradicate pollution, packaging has garnered huge headlines. UNEP notes that global plastic production is pegged at 400 million tons per year. Besides, merely 9% of this is recycled and 12% is incinerated. Accordingly, in March 2022, the U.N. member states endorsed a resolution to beat plastic pollution and create an international legally binding agreement by 2024. Sustainable and affordable options for recycled products have gained ground, furthering the need for ESG frameworks globally.

Public policy could be instrumental in overcoming plastic packaging pollution. The ubiquitous nature of plastic has put pressure on regulators and investors to find solutions for pollution across sectors, including retail, manufacturing, industrial, and electronics. According to Greenpeace, supermarkets in the U.K. emit 800,000 tons of plastic packaging per year, while the government is committed to ensuring all plastic packaging is reusable, recyclable or compostable by 2025. Meanwhile, in May 2022, legislators in New York proposed two bills to enhance plastic recycling rates. It would need producers to eliminate toxic chemicals from packaging, minimize packaging and pay for recycling and disposal costs.

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

Veolia Bolsters Environmental Profile to Navigate Growth Potentials

Concerted efforts from manufacturers and suppliers to combat pollution have led to the demand for recycled products and services. The shifting trend toward recycled products is expected to foster the environmental profile. Companies upgrading technologies to reduce environmental impacts could be the new normal. Veolia asserted in its Integrated Report 2021-2022 that around 476 thousand metric tons of plastic were recycled in its transformation plants in 2021. The company has acquired a host of end technologies to recycle plastic and equipment for biological, material and energy processing. It expects around 610,000 metric tons of recycled plastic to leave its processing plants by 2023.

With China and countries from Europe and North American Free Trade Agreement (NAFTA) witnessing a surge in plastic production, stakeholders are poised to boost their efforts to eliminate waste from the environment. Leading players are likely to use polyethylene (HDPE or LDPE)—in packaging or construction—and polypropylene (PP)—in household appliances, furniture, automotive and construction. In October 2022, Veolia rolled out PlastiLoop which will help customers source recycled plastics with a host of polymers. The France-based company has been offering high-performance ready-to-use recycled resins, including HDPE, PP, PET, LDPE and PS.

PureCycle Emphasizes Social Performance

Well-established players are positioning themselves to connect brands with sustainable and high-quality products and complement social responsibilities. Recycling technology companies are prioritizing workplace safety, diversity and training & development, recruiting & hiring, discipline, compensation & benefits. To illustrate, PureCycle has a Diversity & Inclusion Policy in place to foster non-discrimination, equal employment opportunity and diversity and inclusion, among others. The company alluded to a low turnover as low as 7.5% in 2021. It has also put forth risk management systems and formed policies to help reduce possible accidents, such as team member and visitor safety protocols, a code of business conduct and ethics, guidelines for management systems and operational excellence policy. Moreover, the company is slated to establish a recruiting and employee engagement program to reinforce a resilient workforce.

Investors, manufacturers and other stakeholders have underscored the importance of workers' safety. Prominently Shell inferred that over 100,000 employees and contractors completed compulsory training on the Life-Saving Rules that came into effect from January 2022. It is also committed to its Shell Supplier Principles and expects contractors and suppliers to offer a dedicated whistle-blowing mechanism where grievances pertaining to labor and human rights, Health, Safety, Security, Environment (HSSE) & Social Performance (SP) and business integrity are recorded anonymously.

Dow Invests in Corporate Governance Structure

Stakeholders have depicted profound inclination to enhance governance, accountability and transparency. In doing so, industry players are likely to maintain a board with diverse backgrounds, design compensation programs and ensure a culture of integrity. According to Dow's 2021 ESG report, 5 new members of its board have been women or U.S. ethnic minorities in the last 3 years. It has also set comprehensive ESG disclosures in line with GHG Protocol, GRI, TCFD, WEF and SASB. In its 2021 report, the company alluded to meeting the 2017 commitment to fully implement the TCFD recommendation.

Get more insights about how key industry participants like REMONDIS SE & Co. KG, Biffa, Stericycle, Republic Services, Inc., WM Intellectual Property Holdings, LLC, and Veolia are identifying, analyzing, and mitigating ESG risks and ensuring compliance

All board committees—audit committee; compensation and leadership development committee; corporate governance committee and Environment, Health, Safety & Technology (EHS&T) Committee— comprise independent directors. The board and its committees underscored ESG transparency and accountability with the first integrated ESG report in 2021. Furthermore, the company noted in its second annual ESG report released in June 2022 that it took a giant stride with enhanced carbon emissions reporting and climate risk disclosures and greenhouse gas intensity metrics.

Corporate governance, with the focus on recycling technologies, has become the mainstay for board members and stakeholders to remain ahead of the curve. In the last two years, Dow has reportedly infused around USD 50 million into recycling infrastructure, impact funds and major technologies to transform waste into solutions. Moreover, in June 2022, it revealed a slew of partnerships in plastics recycling, including the collaboration with Mura Technology. It will help eliminate plastic pollution with the construction of advanced recycling facilities. Mura's first plant using the technology could begin in 2023 in England.

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

At a time when environmental, social and governance frameworks could propel customer-centric, innovative and sustainable, stakeholders could inject funds into organic and inorganic strategies. For instance, in January 2022, SCG Chemicals announced a collaboration with Shell to introduce eco-friendly lubricant bottles. The packaging reportedly recycles household plastic waste complying with ESG and the UN Sustainable Development Goals. Grand View Research anticipates the global recycled plastic market to depict around 4.8% CAGR by 2030. Industry leaders are expected to underpin their efforts to minimize GHG emissions, prevent plastic waste and provide recycled plastic products.

Key Benefits of the Recycled Plastic Industry ESG Thematic Report

• Developing a comprehensive understanding of macro-economic, Policies & Regulations and innovations affecting the Recycled Plastic space, globally
  
  
• Key insights into environmental developments and ESG issues affecting the theme
  
  
• Identifying ESG risks and opportunities to business among leading players in the Recycled Plastic
  
  
• Obtaining a clear and relevant understanding of company actions, progress, and impact and find opportunities for investment into the sector

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

About Astra – ESG Solutions By Grand View Research

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

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

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

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

Point-Of-Sale (POS) Terminal Industry ESG Thematic Report, 2022: Astra ESG Solutions

San Francisco, January 23, 2023: The environmental, social and governance (ESG) landscape has gone mainstream in the point-of-sale (POS) terminal industry. Robust digital payment technologies have potentially removed or reduced paperwork and bureaucracy and minimized the need for cash. Predominantly, automated payment processes are fostering corporate work, while retailers have exhibited an increased inclination for POS terminals as sustainability factors garner traction among shareholders, investors, customers and other stakeholders. Payment companies have furthered their traction for ESG pillars to propel social credibility, enhance brand position and place social goals on top of the agenda. 

The onslaught of the COVID-19 pandemic disrupted the normal circulation of coins and spurred the penetration of debit/credit card payments. The raw materials (chemicals made from petroleum) process emit GHG emissions, while the magnetic strips and smart card chips could augment the environmental costs. An uptick in cashless payments, along with the growth of mobile payments, has furthered the use of POS equipment. Besides, the generation of e-waste has expedited the need for robust governance and environmentally friendly strategies to provide a lasting impact on security, comfort and the environment.

Point-Of-Sale (POS) Terminal Industry ESG

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

Environmental Perspective

An unprecedented rise in waste from scrapped cards has prompted stakeholders to seek environmental principles to underscore a sustainability portfolio. Furthermore, carbon emissions from energy used to manufacture the cards have augmented the GHG. Industry leaders have vouched for digital wallets that may offset the environmental impact of debit and credit cards. According to a France-based merchant services technology company Ingenico, there are around 110 million terminals installed globally. The growth trajectory alludes to an increased focus on the environmental performance. The company has introduced eco-design of payment terminals to develop, design and provide products that are environmentally friendly. The service company has augmented R&D efforts to optimize terminals’ energy efficiency, minimize logistics’ carbon footprint, integrate sustainable procurement into the supply, eliminate toxic substances and reduce the raw material used. 

Industry participants have sought carbon balancing to engage in proper e-waste management, foster an emission reduction strategy and offset the residual carbon footprint. For instance, in March 2022, Toshiba collected around 907 Kg of e-waste for recycling. It revised Response to Climate Change in Environmental Future Vision 2050 to attain carbon neutrality throughout the value chain. The company inferred in its Sustainability Report 2021 that it would inject funds into energy-saving equipment, bolster procurement of energy from renewable sources, bring renewable energy equipment to the fore and emphasize products and services that reduce GHG emissions.

Get more insights about how key industry participants like Cisco Systems, Inc., Panasonic Corporation, Samsung Electronics Co., Ltd., Hewlett-Packard Inc., and Toshiba Corporation are identifying, analyzing and mitigating ESG risks and ensuring compliance

Retailers, investors, manufacturers and other stakeholders have prioritized sustainability portfolio to unlock new opportunities to reach out to customers. According to the EU Eco-design directive, 90% of manufacturing costs and 80% of environmental pollution are due to the decisions taken at the production design. The use of recyclable and recycled raw materials could prove to be instrumental to add impetus to the environmental profile. For instance, Panasonic Corporation has minimized the waste generation by fostering the recycling rate of waste materials. Besides, HP exhibited the lowest emission and energy consumption rate in 2020 and aims for zero waste in operation by 2025.

Social Perspective

A robust ESG proposition could provide a win-win scenario as distributors, retailers and other stakeholders engage investors on their social performance. Social factors, including gender diversity, social trends, labor relations and inclusion, are expected to usher in innovations and growth through greater credibility. Bullish initiatives, including defining gender and racial representation and social-responsibility audits, will hold prominence, driving the business and benefiting shareholders and stakeholders. On the social pillar, Toshiba Corporation ranked supreme with approximately 90% score. In its Sustainability Report 2021, the Japanese conglomerate contemplated boosting the number of human rights awareness participants by 10% in the country from the preceding FY level. The multinational company has established a whistleblower system for employees—Toshiba Hotline—it received 129 cases in FY2020. Furthermore, in December 2020, the company rolled out the Chameleons Club with channels, such as LGBT+ Allies, to underscore and reinforce inclusion and deepen bonds among employees. 

Is your business one of participants to the global POS Terminals industry? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices.

Amidst companies gearing to encourage employees to feel fulfillment and pride in their work and harness technology, high turnover rates have sparked concerns among stakeholders. According to the Samsung Electronics Sustainability Report 2022, the overseas turnover rate was pegged at 15.7% in 2021, while it stood at 2.4% in Korea. However, it has robust labor and human rights framework with strong anti-discrimination and anti-harassment policies. The company provided specialized online training for 91% of staff members in jobs with increased human rights risks. Besides, it has around 32 labor unions and 40 Work Councils to enhance communication with employee representative bodies. In a bid to reflect the thoughts of youth in business activities, Samsung formed the Gen Z and Millennial Board to enable the younger generation to share their views on customer trends, products and trending topics on social sites. 

Governance Perspective

Stakeholders are gearing to provide impetus to sustainability governance through transparent functioning, improved management efficiency, independence and expertise of the board, business ethics, and optimal internal controls. In the thematic report, Grand View Research’s ESG scoring model notes that HP was at the helm with respect to corporate governance. The HPE board comprised 12 directors with vast knowledge, skills and expertise, with eleven working as independent directors (as of FY 2021). Moreover, around 50% of board members were identified with one of the more diverse groups. HPE’s board committee of ESG includes an audit committee; human resources and compensation committee; a finance and investment committee; and nominating, governance, and social responsibility committee. Predominantly, the company has established an enterprise risk management (ERM) program overseen by the CFO and underpinned by HPE Executive Risk Council. 

Ethical decision-making has gained ground to add fillip to business practices and encourage customers, employees, suppliers and stakeholders to voice concerns pertaining to business conduct. HPE asserts that ethics allegations and inquiries witnessed a 31% reduction in 2021 from 2019. Meanwhile, Cisco alludes to 1190 inquiries—53% of those related to conflict of interest disclosure, 28% questions and 19% allegations of misconduct—made to the Ethics office in 2021. The executive Leadership Team of Cisco recorded videos elucidating the significance of ethics and compliance to the company and shared real-life examples of violations observed within the organization during the same year.

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

Disclosure of corporate information can steward companies’ approach to ESG performance through transparency. In April 2022, Panasonic Group adopted an operating company system to boost Group management, secure management and improve corporate value. It has formed the Audit & Supervisory Board to foster the effectiveness of audit activities, assess and decide countermeasures and propel cooperation with the Internal Audit Department. Additionally, Panasonic has formed disclosure control procedures to adhere to laws and ordinances in Japan and overseas, to implement the accurate, fair and timely disclosure of information and comply with the rules of financial instruments exchanges.

As stakeholders strive to bridge the gaps of the growing ecosystem and use advanced technology, the uptake in the point of sale applications could underpin the sustainability portfolio, leveraging them to count on the foundation of robust corporate governance and accountability. 

Incumbent companies are responding to the unwavering popularity and significance of ESG goals to stay ahead of the curve. ESG programs on the global scale have become prevalent and frontrunner to bolster brand position in the long run. In August 2022, Toshiba Tec expressed contemplation in developing point of a sale software platform for U.S. retailers. The subsidiary of Toshiba is gearing to augment the number of employees by more than two-fold in the new Dallas hub by 2025. It is expected to have more than 30 software engineers in the U.S. hub by March-end 2023. The prevailing trends suggest exponential growth in digital payments could serve as a catalyst for the business strategies surrounding POS equipment. The global POS terminals market size stood at USD 85.16 billion in 2021 and could witness around 8.5% CAGR from 2022 through 2030. A notable shift towards a strong ESG proposition has become pronounced among financial stakeholders, investors, and companies that could exhibit potential growth opportunities emanating from ESG activities. 

About Astra – ESG Solutions By Grand View Research

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

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

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

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

Cyber Security Industry ESG Thematic Report, 2023: Astra ESG Solutions

San Francisco, January 17, 2023: An uptake in high-profile data breaches and the exponential rise in digitization have redefined the dynamics in the cybersecurity industry. Stakeholders have become cagey towards data management practices and cybersecurity vulnerabilities. Lately, companies have started reporting on environmental, social and governance (ESG) performance, largely spurred by public opinion, regulatory requirements and soaring demand from stakeholders. ESG-focused businesses and organizational practices are expected to gain ground to maintain and achieve cyber resilience. With sectors such as fintech companies, oil and gas, financial services, public utilities and retail under immense pressure from the board of directors, investors and other stakeholders to be more transparent, industry players are expected to bank on sustainability. 

Incorporating factors beyond financial into assessments of company performance have become paramount amidst a surge in cyberattacks. For instance, in November 2022, Microsoft reportedly blamed a Russian GRU hacking group for cyberattacks on transportation and other logistics industries in Poland and Ukraine. Moreover, surging cybercrime costs, such as lost productivity, destruction and damage of data, intellectual property theft, post-attack disruption, fraud, embezzlement and stolen money, have compelled stakeholders to rethink their strategies. Cybersecurity Ventures states global cybercrime costs could touch USD 10.5 trillion annually by 2025. World Economic Forum’s Global Risks Perception Survey 2021-2022 listed environmental risks as the five most critical long-term threats. 

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

Notably, stakeholders are likely to foster ESG reporting practices to bolster transparency as cyber resilience has become a force to reckon with to augment sustainable earnings. Potential stakeholders envisage a sustainability portfolio as the top agenda amidst issues, including climate change and anti-corruption. Industry players are slated to keep ESG goals at the forefront for an expedition of inclusion, fairness and equitable access to opportunities and ensuring a regenerative and sustainable future.

Cisco Emphasizes Environmental Stewardship to Tap into the Growth Potentials

Cybersecurity firms have reinforced their position in the global landscape with an increased focus on the ESG pillars. Notably, environmental stewardship has come to the fore to steer the protection and responsible use of the natural environment sustainably. For instance, Cisco is guided by its corporate Environmental Policy and ISO 14001 Environmental Management System (EMS). The company had 30 sites with ISO 14001 certification in the fiscal year 2021. In April 2021, Cisco announced it would be infusing USD 100 million to address the climate crisis and help reverse the climate change impact over ten years. 

Furthermore, in the fiscal year 2022, it rolled out the Environmental Sustainability Specialization (ESS) to help channel partners promote product takeback, educate customers, boost their sustainability practices and move to circular business models. During the same period, the company came up with Cisco Green Pay to assist customers in building an environmentally friendly technology strategy to attain ESG goals. It has also furthered its investments in state-of-the-art technology to help users leverage grid decarbonization, monitor grid reliability, water and transportation systems and bolster the workplace. The U.S.-based company remained instrumental in leveraging employees to work from home with AnyConnect VPN, WebEx by Cisco and TelePresence. 

Social Performance Gains Ground with McAfee Propelling ESG Profile

With cybercrime-as-a-service becoming pervasive, cybersecurity has become an invaluable part of the ESG for companies, regulators, investors and consumers. The high number of incidents has propelled the need for optimized security operations and a strong social pillar. For instance, Fortinet is gearing to train 1 million people in cybersecurity by 2026. It cashed in on advanced technologies, such as machine learning (ML), artificial intelligence (AI) and deep learning to propel the design and growth of cybersecurity solutions and services.

In addition, pay parity has garnered headlines amidst growing women’s participation in the corporate world and surging role in the global economy. To illustrate, in April 2022, McAfee celebrated three years of maintaining pay parity and claimed to be the first cybersecurity company to attain the policy. Besides, the representation of women was pegged at around 30.9% in 2021, up from 27.6% in the preceding year. The company has also upped its focus on diversity as 16.3% of new hires in the U.S. were underrepresented professionals (Black, American Indian, Hispanic / Latinx, multiracial and Pacific Islande) in 2021.

Get more insights about how key industry participants like Cisco Systems, Inc., Palo Alto Networks, McAfee, Inc., Broadcom, and Trend Micro Inc are identifying, analyzing and mitigating ESG risks and ensuring compliance

Companies have fueled their efforts to set audacious goals to communicate the company’s development transparently, boost women’s participation and design long-term sustainable programs that address social impact. To illustrate, around 31% of external hires for VP and above positions in Palo Alto Networks identify themselves as women. Besides, 78% of leadership teams have diverse representation and the company aims for 100% diversity by 2025. The company also bolstered safety in a hybrid work environment. In July 2022, Palo Alto Networks underpinned its Global Security and Safety team by hiring a Senior Global Environmental Health & Safety Manager. It has also underscored its position in the human rights field with “industry best practices” to analyze risks for cases of human rights violations in the supply chain.

Broadcom Fosters Governance Portfolio 

Well-established companies are gearing to propel their ESG performance with a bullish approach toward governance policies. Stakeholders, stockholders and employees are expected to focus on the corporate governance framework for accountability and transparency. Prominently, in February 2021, Broadcom adopted the name Nominating, Environmental, Social and Governance Committee (NESG Committee), doing away with the term “Nominating and Corporate Governance Committee.” The company found in its 2021 Employee Ethical Culture Survey that 96.1% of employees were acquainted with the efforts of the compliance and ethics function.

It also expedited compliance training as it noted that more than 99% of its employees completed the course in 2021. During this period, it rolled out the Global Compliance Ambassador program to solidify compliance culture. In essence, the U.S.-based company listed corporate governance, cybersecurity and data privacy, ethics and integrity and product quality in its 2021 ESG priorities.  

Is your business one of participants of the global cyber security industry? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices.

Key players are leaving to stone unturned to underscore social responsibilities and provide avenues of growth to stakeholders. In doing so, the Board of Directors at Fortinet established the Social Responsibility Committee to introduce the highest level of governance in CSR issues. The company uses corporate governance practices to ensure compliance with all laws and do business ethically. Besides, there has been a surge in independent directors across industry verticals as companies vie to enhance their sustainability portfolio. To illustrate, around 75% of board directors are independent at Palo Alto Networks, while approximately 50% of BoD are diverse with different race, gender, nationality or ethnicity. In the fiscal year 2022, the company established a Security Committee of the Board to boost oversight about security issues, such as cybersecurity.

The competitive landscape alludes to an increased focus on cybersecurity leaders emphasizing innovations and technological advancements. Forward-looking companies and governments are poised to foster their ESG practices to keep abreast with the trend. In October 2022, the Cybersecurity & Infrastructure Security Agency (CISA) joined forces with the National Institute of Standards and Technology and the interagency community to release cross-sector Cybersecurity Performance Goals (CPGs). Meanwhile, in 2021, Fortinet has a dedicated Human Rights Policy to propel ethical business and responsible product use.

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

About Astra – ESG Solutions By Grand View Research

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

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

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

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