ESG Strategies in 2023 and Beyond in Healthy Snack Industry

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

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

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

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

Mondelēz Underscores Environmental Portfolio

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

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

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

Kellogg Prioritizes Social Commitment

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

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

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

Nestle Adds Value to ESG with Investments in Governance

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

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

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

About Astra – ESG Solutions By Grand View Research

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

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

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

Why are Brands Counting On ESG in Mattress Industry?

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

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

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

Environmental Perspective

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

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

Social Perspective

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

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

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

Governance Perspective

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

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

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

About Astra – ESG Solutions By Grand View Research

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

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

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

Why has ESG made its mark in Synthetic Leather Industry?

Environmentally friendly textiles have received an uptick globally with designers, entrepreneurs, venture capitalists and other stakeholders gearing up to boost their synthetic leather industry profiles. As consumers become more conscious about sustainability, manufacturers are likely to take a giant stride in making ethical choices. Synthetic leather tends to have less impact pertaining to GHG, depletion of fossil fuels, water used for production and animal abuse. Moreover, the application of solvent-free polyurethane and polyolefin heat shrinkable elastomer resins has played a pivotal role in minimizing volatile organic compounds.

The synthetic material has gained ground to be refurbished, repaired, repurposed and recycled. Lately, artificial leather has come on the horizon to play a pivotal role in reducing plastic, using organic waste and reducing environmental impact. Besides, the use of vegan leather has amassed popularity, partly due to the soaring awareness on sustainability. Prominently, environmental concerns pertaining to leather production have encouraged stakeholders to partake in ESG strategies. Stakeholders, including manufacturers, brands, suppliers and investors are expected to bank on sustainable solutions, including the use of high-grade artificial leathers stemming from non-toxic dyes and recycled polyester. 

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

Environmental Perspective

The need to create sustainable leather has added a fillip to the prospect of synthetic materials. Stakeholders have prioritized the significance of zero discharge of hazardous chemicals amidst a global push to contain pollution. Companies of all sizes and sectors have realized the need to foster their sustainability portfolio and live up to ESG responsibilities. To illustrate, Smit & Zoon aims to create an environmentally and socially sustainable leather supply chain by 2025. The company is gearing to develop innovative leather-making processes and chemistry to boost circularity by 2025. It has also used Gold Standard Verified Emission Reductions certification program to further its environmental profile. The Netherlands-based company has updated its Product Passport and adopted wastewater guidelines, Life Cycle Assessments, compostability, biodegradability and circularity. 

Forward-looking companies have shown an increased inclination for bio-based polyurethane that provides a notable bio-based carbon content and minimizes CO2 emissions. Besides, vegan leather has become a beacon of growth and innovation. In essence, a soaring number of vegan materials could be a vital cog in saving products and reducing waste from landfill. The expanding applications of vegan leather products from repurposed and reused materials are expected to help reduce landfill waste.  Moreover, artificial leathers in cars have witnessed profound growth as companies strive to adopt natural ingredients. Synthetic materials could be an invaluable addition to upgrading vehicles with automakers emphasizing the use of sustainable materials. Prominently, Tesla uses vegan leather as its supplier Ultrafabrics asserts it can replace animal leather. At a time when the auto sector has become one of the largest consumers of artificial material, synthetic leather could be a game changer in cabin upholstery and car seats. 

Social Perspective

The year 2023 and beyond could observe an unprecedented rise to strengthen healthy and safe workplaces and minimize employee turnover. Organizations are gearing up to boost people’s well-being and mental health through the adoption of bullish policies, training and certification to ensure the safety of employees. For instance, Stahl introduced the Road to Zero (R20) program to emphasize the integration of safety into the company’s culture and zero-tolerance policy on unsafe behavior. The company is also committed to do away with the restricted substances in the value chain. It has made a significant stride in chemical safety in Bangladesh. Solidaridad alluded to a collaboration with Stahl in Bangladesh in its 2021 Annual Report. The partnership saw them initiate sustainable practices in the industry in India and Bangladesh. The Dutch NGO kicked off a new project and claims to have covered around 80% of the leather clusters in India. 

Stakeholders have also vouched for the training and development of leather technicians and designers and the hiring of young and talented workforce. The onslaught of the COVID-19 pandemic compelled in-person training to take a backseat. During 2021, Stahl provided access to online training through an e-learning catalog and upped investments in cybersecurity, compliance and growth of soft skills. In 2021, it finalized the Automotive Leather Finishing Post Graduate Certificate course for some of the students and postponed it to 2022 for those who could not attend owing to travel restrictions. During the year, the company claims over 2,000 people from around 150 organizations attended Stahl Campus training courses. 

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

Governance Perspective

The tailwinds for a sound corporate governance system have encouraged investors and other stakeholders to count on fair management and improved corporate value. For instance, Kuraray has formed corporate governance functions under the aegis of its BoD and Board of Corporate Auditors to boost the monitoring functions and effectiveness of supervisory. The board of corporate auditors comprises 5 auditors, with at least three of them being independent outside corporate auditors and one female corporate auditor. The company has also formed the Corporate Advisory Committee consisting of outside experts and officers to bolster its governance portfolio. 

Leading players are reinforcing the need to focus on labor and human rights, sustainable procurement and ethics. Smit & Zoon addressed the UNG SDG goals 6,8,12,13,17 and materiality matrix facets, such as water & effluents, occupational health & safety, anti-corruption, environmental compliance, water & effluents, customer health & safety and energy. Additionally, Responsive Industries took a giant leap to foster workplace safety for women. The company noted in its Annual Report 2022 that it laid down Internal Complaints Committee for redressal of sexual harassment of female employees at workplace. It has also introduced a system that will help employees and directors to report issues regarding suspected or actual fraud, unethical behavior and violations of the company’s code of conduct and ethics. 

With synthetic leather-related products garnering notable demand, there are challenges and opportunities for stakeholders to embrace ESG goals. To illustrate, Stahl inferred that around 90.23% of its employees had a permanent contract in 2021. Meanwhile, in July 2022, Sage-ONF rolled out silicone synthetic leather in China. It will help to keep up with the demand for mobility interior, thereby boosting sustainability commitments through the petroleum-free and non-carbon-based solution. These trends complement the valuation of the global synthetic leather market at USD 36.24 billion in 2022. Well-established players will strive to underpin their core competencies and offer products that will propel ESG performance.  

 About Astra – ESG Solutions By Grand View Research

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

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

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

Why is ESG a Win-Win Solution in Kitchenware Industry?

Stakeholders are leveraging innovation in pursuit of enhancing life at home as kitchenware industry players emphasize agility and resilience. Social and environmental sustainability have created value with companies envisaging investment in home appliances to broaden ESG commitments. A sustainable future could redefine ESG goals, including reducing emissions, enhancing energy efficiency, prioritizing diversity and doing away with single-use packaging. ESG management has become instrumental in ensuring efficient progress with an emphasis on quality improvement, ecological environment, employee welfare system, occupational health & safety, business ethics and protection of customers’ rights and interests. 

Prominent players are well-positioned to assess and address risks, opportunities and impacts in the kitchenware landscape and navigate the robustly evolving space of ESG frameworks. Notably, the global push for sustainable development goals (SDGs) could propel the sustainability quotient to enhance business operations and benefit customers, communities, suppliers and employees. The adoption of ESG factors will provide a slew of upsides, including increased job satisfaction, reduced safety-related cases, and a productive workforce.  

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

Environmental Perspective

Climate strategies and roadmaps for greenhouse gas emission reduction have come to the horizon as companies seek to contribute to global efforts to propel sustainability. Carbon efficiency has received uptake with companies bolstering their strategies and measures. For instance, in June 2022, Dollarama established its first Scope 1 and Scope 2 emissions intensity reduction target. The company has set the 2030 target with strategies, including minimizing dependence on fossil fuels, enhancing the energy efficiency of stores and augmenting use of clean energy and renewable sources. An emphasis on the environment will not only have a positive influence on returns but also negate the risk to investments. Prominently, Whirlpool has placed science-based targets for greenhouse gas reductions and sustainability goals. 

Kitchen companies are foraying into innovation and technology to address key issues and challenges. Whirlpool created a sustainable product playbook in 2021 with chapters on sustainable packaging and recycled plastic content. The company has exhibited an increased inclination for the reduction of GHG emissions and addressing plastic pollution—it alludes to using 8% recycled plastic in dishwashers. The American home appliance company set a compelling target to use an average 18% recycled plastic content by 2025 in the EMEA region. In 2021, while it showcased the technical feasibility to use recycled PP in home appliance applications, it also suggested that 28% of its manufacturing sites garnered higher Environmental Pillar scores. During the same period, 90% of sites received Zero Waste to Landfill (ZWtL) Gold or Platinum status and the multinational manufacturer attained GHG emissions scopes 1 & 2 Intensity and Water Intensity. Robust implementation of bullish initiatives and emphasis on renewables could act as a catalyst and offer sustainable upsides to kitchenware suppliers and manufacturers. 

Social Perspective

Creating and maintaining a zero-tolerance policy towards racial marginalization and recognizing the values of an inclusive workplace have provided avenues of growth. A diverse workforce with an emphasis on female representation, black and underrepresented minorities and goodwill in local communities has remained a vital cog to foster the ESG profile. Tupperware injected funds into mental health facilities and leapfrogged towards attaining global certification for gender equity in practices, pay equity, representation, skill-based hiring and inclusiveness. In 2021, women accounted for 68% of all new hires and 58% of the global workforce in Tupperware. Moreover, the U.S.-based company launched a workplace engagement survey, bolstered its internal communications and standardized bonus programs. The product manufacturer held talent assessments of managers and rolled out an e-learning platform, providing over 16,000 courses. The company asserts around 60% of Associates viewed more than 360 hours of content from courses, learning paths and videos. 

Companies have also furthered their investments in training & development and employee welfare schemes. A prudent ESG strategy would potentially focus on products that can be accessible for underprivileged groups, including pregnant women, the elderly and children. LG has introduced braille stickers to help the visually impaired to use the function buttons. Besides, the South Korea-based company has created a safe working environment to provide an independent safety culture, boost employee satisfaction and offer a sustainable workplace. In an effort to propel diversity, LG aims to augment the ratio of female employees in Korea to 20% by 2030. Additionally, the company has operated childcare and breastfeeding facilities across 10 business sites in Korea, indicating a bullish approach toward ESG performance. 

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

Governance Perspective

Responsibilities for ESG-related opportunities and challenges reside with the Board of Directors. Well-established brands and emerging companies have come to the fore to create value through sound governance and the highest standards of legal & ethical conduct. Governance targets pertaining to the diversity of the Board of Directors strengthen the company profile in the global landscape. Some of the facets, such as internal audit, risk management, ethics & compliance have witnessed pronounced attention. In essence, the Board of Directors at Tupperware comprised 45% women as of December 2021. Meanwhile, Dollarama had over 30% female representation on its BoD in 2021. Besides, Tupperware formed a bullish roadmap for enterprise risk assessment in 2021 and hired a new Director of Compliance to underscore compliance department leadership. The company aims to use ESG metrics in employee performance and compensation goals by 2030. 

In a bid to underpin shareholder value over the long term, industry players have prioritized a smooth corporate governance structure. Board of directors tend to focus on ESG issues, including employee safety, climate, cybersecurity, human capital management, financial, marketing and inclusion & diversity. In doing so, companies have also vouched for the independence of the BoD to bolster the ethos of the decision-making right and explore new avenues of growth engines to boost corporate growth. To illustrate, the ESG committee at LG Electronics comprised four independent directors to supervise risk response pertaining to ESG and explore sustainable and long-term growth. 

The competitive landscape has witnessed a paradigm shift as organizations vie to achieve the company’s vision of customer satisfaction and underpin ESG frameworks. With companies emphasizing environmentally friendly and solution-oriented kitchen products, boosting ESG goals could nurture a sustainable future. The global kitchenware market is poised to register around 5% CAGR through 2025, largely due to the influx of funds into sustainable products and 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

Environmental, Social and Governance (ESG)— A Pivotal Approach to Business in Lubricant Industry

As lubricant industry players face compelling challenges around sustainability issues, including product recyclability and greenhouse gas emission reduction, they are poised to focus on recycling and recovery of lubrication packaging into their ESG goals. Venture capitalists and other investors are prioritizing investment in sustainable businesses with environmental, social and governance concerns integral to corporate strategy. Bespoke solutions to reach sustainability and decarbonization goals could gain ground. ESG will remain pivotal in enhancing business ethics, creating sustainable growth with a resilient supply chain, retaining employees and attracting customers. 

Forward-looking players are expected to foster their footprint on ESG standards that have become invaluable in gauging a company’s capability to make an informed decision. ESG factors are likely to play a vital role in containing organizational risks. It has emerged as the main cog in corporate policies and practices with investors and businesses gearing to address workplace safety, inclusion, access to affordable healthcare and environmental equity. The need for ESG disclosure has shaped how companies allocate funds in the global landscape, and the demand for accountability has underscored ESG disclosure to track sustainability performance. For instance, businesses in Europe are obliged to report the proportion of investment considered sustainable in line with EU regulations. 

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

Environmental Perspective

Environmental, social and governance aspects are at the forefront as prominent players gear to overcome social, economic and environmental challenges. Leading players are poised to improve, respond and recover their resilience to the shifting ESG landscape. Investors are inclined to know how companies will respond to social, environmental and economic landscape and related opportunities and risks. A host of companies has come forward to publish sustainability reports as organizations across geographies, industries and company sizes allocate more resources toward enhancing ESG. According to the Governance & Accountability Institute, Inc. (G&A) 2021 Sustainability Reporting, 92% of S&P 500 Companies and 70% of Russell 1000 Companies published sustainability reports in 2020. 

A significant part of ESG growth is mainly attributed to environmental factors and apt responses to climate change. Companies are likely to contribute disclosures in energy efficiency, biodiversity, environmental management, water efficiency and GHG emissions. For instance, Chevron Shipping could disclose vessels’ climate alignment scores leveraging the Sea Cargo Charter methodology from 2023. Further, the environmental impact of lubricants has prompted vital players to provide impetus to bio-based lubricants that can boost the sustainability quotient through high viscosity index, enhanced water quality and longer equipment life. Prominently, BP aims to contain scope 1 and scope 2 emissions globally by 30% by 2030. On the other hand, Shell has been providing carbon-neutral lubricants, including biodegradable multi-purpose grease and energy-efficient high viscosity index hydraulic oils to offset carbon footprint. 

Social Perspective

On the social front, lubricant companies have emphasized data privacy, product quality, employee development, community support and development. Stakeholders have dubbed social license as corporate oxygen—impossible to survive without it. Some social practices, such as promoting equality and diversity in the workplace, providing training and well-being support and underpinning local and national charities will augur well for leading companies in the landscape. 

According to Grand View Research Lubricant Industry ESG Thematic Report 2022, Idemitsu Kosan tops the chart in the social category with an impressive score of 70%. The tag is partly due to the institutionalization of human rights monitoring mechanisms across its supply chain operation. Besides, most companies are ISO 45001 standards certified and have rolled out robust healthcare plans and programs, H&S training and health insurance—promising factors bolstering employee retention rates. Meanwhile, Lukoil had the highest employee turnover rate (6.7%) in 2020 amidst comprehensive healthcare plans.

Prominent players have left no stone unturned to underscore their social and community investments. For instance, in 2020, Chevron contemplated injecting USD 15 million to underpin the Black community in the U.S. to address equity barriers. Besides, in 2021, the company poured USD 6.6 million into non-profits and community organizations in Kern, Fresno, and Monterey counties. The U.S.-based company is also said to have employed more than 700 full-time employees, along with 1,600 contract employees in those counties. Incumbent players are poised to get a grip with social factors as the building block of a sustainable world. 

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

Governance Perspective

Governance is envisaged as an indicator of how transparent, accountable and ethical a company is with stakeholders. It also highlights board structure, audit committee functioning, board independence and financial audit and control. An emphasis on governance could bode well with investors and customers and encourage sound risk management practices. Chevron is at the pole position in corporate governance, notes the ESG scoring model of Grand View Research. It has more than 90% independent directors—the highest in terms of a board comprising independent directors. The American multinational energy corporation established a Supplier Diversity Governance Board providing strategic direction and oversight of supplier diversity strategy across its U.S.-based units. With solid governance being the foundation to create value for stockholders, board members are expected to review operational, financial, market, political and other risks that are inherent in the business. 

ESG is a valuable consideration—one that goes beyond philanthropic perception and is paramount to sustainable development. In essence, Royal Dutch Shell scored more than 80% in corporate governance—second to Chevron. The former has the highest percentage of female members on its board, taking a giant leap toward gender equality. The company is gearing to surpass or reach 40% of women in senior leadership by 2030. Governance will likely leverage companies to cash in on and manage various ESG risks and opportunities. 

Well-established players and new entrants are slated to integrate ESG practices to foster brand reputation, propel sustainability and minimize costs. Companies are likely to focus on generating more environmentally friendly and efficient lubricants. For instance, in March 2021, Castrol rolled out the PATH360 strategy sustainability strategy with 2030 aims and focus areas, including reducing carbon, saving waste and enhancing lives. Stakeholders are bullish on the prospect of lubricants against the backdrop of heightened product demand and emphasis on ESG frameworks. The global lubricant market size garnered USD 125.81 billion in 2020 and could witness a 3.7% CAGR from 2021 to 2028. 

About Astra – ESG Solutions By Grand View Research

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

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

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

Embedding ESG Policies in 3D Printing Industry

Sustainability priorities of environmental stewardship, workers’ safety, human rights and sound governance have become pronounced in the 3D printing industry. Additive manufacturing (AM) technology and solutions are well-placed to influence global issues and foster improvements through innovations, training, education and carbon footprint reduction. 3D printing, post-COVID-19, has become a game-changer as companies seek to assess the untapped potential of additive manufacturing. Prominently, 3D printing has amassed huge popularity among manufacturers, engineers and designers to keep up with the need for responsible energy consumption. Moreover, recycling, reducing, repurposing, reusing and repairing have ushered innovation in the global landscape. Companies are expected to exhibit product improvements and complement transparency, fairness, regulated, ethical and compliant operations.

3D printed parts and products have become palpable in end-products, including athletic shoes and printed cars. Stakeholders are exhibiting traction for additive manufacturing programs and embracing the responsibility to enhance lives and protect the environment. Exponential growth in digitization and a paradigm shift witnessed in the energy transition towards renewables have redefined the 3D printing landscape. Additive manufacturing could be instrumental in aerospace, manufacturing, automotive and healthcare sectors to reduce lead time, and material cost, leverage on-site production and underpin growth with sustainability targets. Amidst surging pressure to address supply chain issues and keep up with energy efficiency needs, industry players could explore opportunities in 3D printing. 

Discover more regarding the practices and strategies being implemented by industry participants from the 3D Printing Industry ESG Thematic Report, 2023, published by Astra ESG Solutions

Environmental Perspective 

A notable shift towards AM technologies could lead to less energy consumption, reduced waste, optimized and enhanced supply chains and more recycling. In July 2021, eight companies joined the bandwagon to be part of the Additive Manufacturer Green Trade Association (AMGTA) to educate and promote the green upsides of 3D printing. Similarly, in May 2022, the global trade organization announced that 20 member companies received the 2022 Sustainability Awards. AM technologies are expected to boost environmentally friendly methods of manufacturing, mainly attributed to the innate ability to manufacture closer to the point of need, minimize material consumption and redesign parts to reduce energy consumption and weight. 

Pioneering products, services and state-of-the-art technologies are unlocking opportunities and measuring sustainability metrics in line with ESG goals. The trend has become prevalent and prompted stakeholders to inject funds into sustainability portfolios. In December 2020, 3D Systems announced the rollout of its ESG initiative, bolstering its commitment to leveraging AM solutions for a host of applications. Companies are poised to advocate for sustainable technologies that will help minimize carbon emissions and eradicate waste. Notably, AM uses merely the material required to produce the final part, thereby playing an invaluable role in bolstering sustainability. 

Social Perspective

3D printing has come on the horizon as a vital cog in fostering employees’ health and safety and social programs, including entrepreneurship and STEAM education. In April 2022, it was reported that Stratasys offered access to dozens of 3D printers and funded the FIRST Robotics Competition for high school students. The company also introduced the “learning by making” program with Jerusalem Municipality, spanning across state-religious, independent-religious, state-secular and Arab schools. Additionally, the company was reported to be resilient amidst havoc wracked by the COVID-19 pandemic. Stratasys inferred in its 2020-2021 ESG and Sustainability Report that it reduced the work to 80% capacity till the end of 2020. It helped them do away with the pandemic-induced layoffs. The company offered mental health seminars on depression, social connections and loneliness. Besides, it organized an in-person summer camp in 2021 to provide fun and relief to the teams and their families.

Stakeholders have furthered their focus on diversity to add value for shareholders, employees and customers. In doing so, embracing diverse teams could propel an inclusive culture and complement employees’ unique identities, experiences and backgrounds. For instance, in 2021, GE updated a few voluntary self-identification categories and selections pertaining to sexual orientation and gender identity (based on employee feedback). The company asserted in its 2021 Diversity Annual Report that around 3.7% of its U.S. employees identified themselves as having a disability, while over 10% of the U.S. employees are military veterans. Amidst call for equal pay for all, GE is gearing to attain 100% pay equity in each of its businesses.

Is your business one of participants of the Global 3D Printing Industry? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices.

Governance Perspective

Stakeholders demand greater traceability and transparency as companies seek to build trust with customers, communities, investors and other parties. Corporate governance has come to the fore as an invaluable pillar to running a business sustainably. Additive manufacturing companies are expected to devote attention to corporate governance policies, and guidelines and invest in data-driven products and solutions. Leading players are emphasizing independent leadership for a robust compliance and internal controls with applicable laws, policies and regulations. Notably, Autodesk infers in its 2022 Impact Report that 90% of its Board of Directors are independent, while 50% are women. 

Stakeholders are counting on AI and ML to streamline the business. Forward-looking companies anticipate additive manufacturing to foster logistics systems and bolster resilience through the incorporation of environmental and social aspects. Leading players are likely to prioritize sustainability reporting frameworks to further organizations’ governance disclosure. In essence, GE offers disclosure as per SASB standards and provides climate-related disclosures in line with the TCFD framework. For instance, the organization has been disclosing how it assesses, identifies and manages climate-related risks. Meanwhile, Eaton has set an audacious target (2030 Sustainability Target) of over 50% enhancements in safety metrics, disclose U.S. minority and global gender pay equity assurance results, and ensure no human rights violation from major suppliers. It has also set report priority issues in line with TCFD and SASB requirements. The company asserted that around 65% of its net sales stemmed from sustainable solutions in 2021. 

As 3D printing brings a seismic shift in the global landscape, stakeholders are gearing to augment their leadership position in ESG. In doing so, prominent manufacturers and suppliers are poised to inject funds into organic and inorganic growth strategies. To illustrate, in November 2022, Stratasys announced the pouring of USD 10 million in Axial3D, wherein both companies will render a joint offering to provide the accessibility of patient-specific 3D printing solutions for medical device manufacturers and hospitals. Prevailing trends indicate the global 3D printing market size could register an impressive CAGR of 20.8% from 2022 through 2030. Industry dynamics suggest sustainability priorities will witness an upward growth trajectory with a focus on, including but not limited to, people-first strategies, innovation, climate actions and transparency. 

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

Fintech Players Hone ESG Strategies in Digital Lending Industry

Fintech companies, banks and non-banking financial players have exhibited traction for digital lending to streamline seamless loan disbursement, approval, recovery, credit assessment and other credit services through remote and automated lending processes. On the heels of the COVID-19 pandemic, banks are scampering to play their part in the environmental, social and governance concerns. In a bid to help transpire a greener, transparent and resilient world, digitization of the lending process could bring a tectonic shift, such as enhanced customer experience, and better decision-making. Prominently, an uptick in collaboration between investors and firms taking ESG into account has provided an impetus to banks and fintech players. 

Digital lending has added a fillip to financial inclusion, particularly assisting borrowers who may not reap benefits from formal finance sources. Banks are exploring opportunities in ramping up and automating credit processing, including digital lending and imbibing ESG considerations into lending decisions. The trend for end-to-end e-invoicing and payment solutions to help businesses with easy digital transactions has become pronounced among fintech and banks. Giving and recovering loans through apps and web platforms have become popular. A surge in mobile money accounts has expedited the advanced financial services that can reduce cost, boost transparency and streamline services. However, the prevalence of micro-financial risks and chances of spillovers to the economy have warranted regulation. In September 2022, the Reserve Bank of India issued guidelines on digital lending and emphasized that regulated entities should ensure the lending service providers and digital lending apps adhere to the guidelines mentioned in the circular. 

Investors are likely to prioritize environmentally sustainable strategies amidst a data-led credit process gaining ground globally. 

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

Environmental Perspective

The need for an organic financial model that is in line with the environmental paradigm has become paramount for an organization to be truly sustainable. At a time when fintech lenders are navigating opportunities in state-of-the-art technologies, including AI and machine learning, investments in environmental pillar could give them an edge in the competitive ecosystem. For instance, ICE Mortgage Technology is committed to a 50% reduction in scope 1 and 2 emissions by 2032. It has also implemented data center air management, optimal thermal stratification, automated lighting control systems, and high-efficiency HVAC facilities, playing a vital role in its Power Usage Effectiveness (PUE) outperforming the base building design by around 14%. The company has also purchased renewable energy credits for electricity consumption in data centers and offices. A bullish approach towards sustainability will foster their brand position in the global landscape.

Social Perspective

Of late, an inclusive financial ecosystem has come on the horizon for social progress with access to borrowing and capital opportunities. Companies are offering competitive and comprehensive upsides to foster employees’ well-being, health, financial security, diversity, and inclusion. In essence, Fiserv has formed a solid partnership with Black colleges and universities and the National Black MBA Association in the U.S. In 2021, the Fiserv Back2Business initiative augmented its commitment to USD 50 million which initially stood at USD 10 million for minority-owned small businesses affected by the COVID-19 outbreak. Furthermore, the company has invested in workforce diversity as it asserts that 34% of employees are diverse in race or ethnicity. Companies have increased banking on social strategies as an integrated part of their business process. 

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

Governance Perspective

Fintechs and banks have been championing the significance of ESG for the sustainability of the business. Assessment of ESG-related opportunities and trends has largely been fueled by the governance aspect. The operation of companies in an ethical manner to dissuade corruption and bribery has become pronounced. Notably, Newgen Software has furthered its commitment to a high level of transparency, accountability and integrity. With a two-tier governance model, the company comprised 7 directors (as of March 31st 2021), out of which 4 directors were non-executive directors (independent), while three were executive directors. The Board has prioritized innovations in business strategies, diversity, strategic planning and analysis and compliance requirements for transparency, accountability, and safeguard of shareholder interest. Given the risk of a data breach, stakeholders have also emphasized risk management to provide state-of-the-art security of operations and curb business disruptions. 

Concerted efforts in risk oversight, business strategy, succession planning, ESG and financial reporting could provide an edge to key players. The digital lending market size stood at USD 5.84 billion in 2021 and could register an impressive CAGR of 25.9% from 2022 through 2030. Strong demand for quick access to working capital for daily operations will provide impetus to the growth of the advanced lending process. 

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