Healthcare IT Industry Banks on ESG for a Sustainable Future

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

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

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

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

Environmental Perspective

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

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

Social Perspective

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

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

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

Governance Perspective

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

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

About Astra – ESG Solutions By Grand View Research

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

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

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

Baby Care Products Industry Players Unlock Business Values with ESG

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

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

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

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

Environmental Perspective

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

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

Social Perspective

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

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

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

Governance Perspective

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

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

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

About Astra – ESG Solutions By Grand View Research

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

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

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

Assessing ESG Performance of Hair Care Industry Leaders

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

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

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

Environmental Perspective

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

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

Social Perspective

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

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

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

Governance Perspective

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

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

About Astra – ESG Solutions By Grand View Research

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

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

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

Athletic Footwear Industry Observes Evolving ESG Investments

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

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

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

Environmental Perspective

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

Social Perspective

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

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

Governance Perspective

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

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

About Astra – ESG Solutions By Grand View Research

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

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

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

How is ESG Redefining Real-time Payments Industry?

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

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

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

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

Environmental Perspective

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

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

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

Social Perspective

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

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

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

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

Governance Perspective

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

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

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

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

About Astra – ESG Solutions By Grand View Research

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

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

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

Automakers seek Solid State Battery to Bolster ESG Performance

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

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

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

Environmental Perspective

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

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

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

Social Perspective

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

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

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

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

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

Governance Perspective

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

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

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

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

About Astra – ESG Solutions By Grand View Research

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

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

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

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

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

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

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

Environmental Perspective

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

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

Social Perspective

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

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

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

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

Governance Perspective 

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

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

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

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

About Astra – ESG Solutions By Grand View Research

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

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

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