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

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

Electric Passenger Cars Industry ESG

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

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

Environmental Perspective

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

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

Social Perspective

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

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

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

Governance Perspective

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

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

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

About Astra – ESG Solutions By Grand View Research

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

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

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

Solar Energy Generation Industry: Leaders Create a Sustainable Future—an ESG Perspective

The Growth of the solar energy generation industry will depend on the proactive and relentless efforts of forward-looking companies to navigate the risks posed by climate change. Current and predicted issues expected to arise due to climate change have brought a paradigm shift in the ways businesses assess risk, and plan and deploy resources. Sustainability, security compliance, safety, business growth, and innovation have become instrumental to progress toward implementing best practices in environmental, social, and governance portfolios. The trend for green, sustainable, and safe pathways is likely to pay off and help make better economic sense in the long run. Prominently, solar energy generation has garnered popularity as one of the cheapest forms of electricity and will be a solid proposition to tap potential in energy generation.

Solar Energy Generation Industry ESG

In common parlance, solar energy plays an invaluable role in boosting sustainable development energy solutions. Solar energy generation applications are likely to play a vital role in fostering an environmentally friendly energy agenda. In essence, solar panels have gained ground to generate clean power and contain the cost of electricity. To illustrate, in June 2022, the U.S. Solar Buyer Consortium announced an infusion of USD 6 billion to bolster the domestic solar panel ecosystem with the supply of around 7 GW of solar modules per year from 2024. It is worth mentioning that the Solar Energy Industries Association asserts that the U.S. installed 23.6 gigawatts of solar capacity in 2021. The federal investment tax credit, along with renewable energy credits, advanced technologies, reduced installation costs, and financing arrangements, offers promising opportunities for stakeholders to emphasize solar power as an indispensable part of the ESG goals across the U.S.

Exelon Corporation Harnesses the Potential of ESG

With environmental issues spurring governance and social practices, investors are curious to know how businesses minimize their carbon footprint. Stakeholders are responding to these trends through ESG strategies. Several companies have come to the fore to inject funds into renewable energy to propel ESG sustainability goals. For instance, the Exelon Corporation reportedly avoided 78 million metric tons of GHG emissions with its zero-carbon nuclear generation. The company witnessed 161 million MWh zero-carbon generation, around two-fold more compared to the next largest producer. In July 2022, Exelon released the 2021 Corporate Sustainability Report and noted that it poured USD 6.6 billion in energy infrastructure in 2021 and is contemplating raking in USD 29 billion from 2022 through 2025. On the environmental front, the company claims to be working to minimize impacts on biodiversity and watersheds. It has also spurred sustainability through corporate governance—assessing accountability and risk.

Understand how key industry participants like Exelon Corp., E.On S.E., and Duke Energy Corp. are understanding and mitigating ESG risks and ensuring compliance

E.ON SE at Pole Position in ESG Disclosure; Emphasizes Green Electricity

Sustainability strategies and disclosures have come on the horizon amidst ESG being tasked with the goal of decarbonizing the global economy. When it comes to ESG disclosure, E.ON SE is at the helm, followed by Exelon Corporation and Equinor ASA. It is gearing to be climate-neutral by 2040 and its corporate governance is increasingly linked to its ESG management aspects. CDP, an international association of investors that independently assesses the transparency and detail of companies’ climate reporting, lauded E.ON as a Supplier Engagement Leader in 2021. In a bid to bolster the green-power community across Europe, E.ON Home, an energy management app, was introduced in the U.K. Similarly, it claims over 10 million customers received certified green electricity products in 2021.

Incumbent players have reinforced their efforts to underpin the decarbonisation of Europe. The company contemplates investing €1 billion (around USD 1 billion) annually through 2026 to significantly boost the infusion of funds into energy networks. It is geared to foster sustainable homes, work, and lifestyles with innovative solutions, including self-generated green electricity. It aims to install approximately 5,000 new charging points through 2026. The Germany-based company plans to pour €27 billion into energy transition through 2026. Furthermore, the company has also upped investments to provide green energy to take carbon neutrality and sustainability to the next level. For instance, in April 2022, E.ON inked a deal with Solar Market to create Green Cloud to offer green energy to corporate customers across Hungary.

The competitive landscape alludes to an increased focus on ESG framework and sustainable policies from forward-looking companies, such as E.ON SE, Adani Green Energy Limited, Equinor ASA, Nextera Energy, Inc., Exelon Corporation, Duke Energy Corporation, Solaria Energía y Medio Ambiente and ReNew Wind Energy (Jath) Limited. Besides, organic and inorganic growth strategies have become pronounced, underscoring solar energy generation market share. To illustrate, in November 2022, Equinor announced the acquisition of BeGreen, a Danish solar developer, to propel the solar PV portfolio. Meanwhile, in April 2022, the Norway energy giant forayed into the Australian market through investments in RayGen to provide impetus to solar energy. In November 2022, Equinor expressed contemplation to augment investment in renewables by two-fold and that renewable energy will account for approximately 20% of the company’s investments in 2022. Amidst the trilemma of the Russia-Ukraine war, energy security, and affordability, emphasis on renewable energy sources could be a game-changer with considerable environmental upsides in solar energy generation.

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

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

Cloud Computing Industry Drives Business Agility with ESG

Environmental, social and governance (ESG) performance has become invaluable in minimizing carbon footprint, boosting waste management and enhancing board diversity in the cloud computing industry. The rising footprint of cloud services across healthcare, automotive, media, gaming, financial services, public services and e-commerce has furthered the need to bolster the sustainability profile. Brands are expected to use AR/VR, edge computing, big data, blockchain and cloud-native technologies to foster brand recognition, complement sound corporate behavior and bolster sustainable investing. 

ESG strategies have gained prominence in the wake of surging environmental awareness and consumers’ willingness to pay premium prices for sustainable products. Environmentally and socially conscious practices have become prevalent to attract and retain investors and customers. Cloud computing service providers have exhibited profound traction to expedite their ESG progress. For instance, the Google Cloud Platform offers carbon-free energy scores for Google Cloud regions, enabling companies to choose GCP locations optimized for reduced carbon emissions. 

Key Companies in this theme

    • Adobe Inc.

    • Alibaba Group Holding Limited

    • Amazon.com Inc.

    • Google LLC

    • International Business Machines Corporation

    • Microsoft Corporation 

    • Toshiba Corporation

Environmental Perspective

The global push to meet sustainability goals has prompted forward-looking organizations to achieve their ESG objectives. Industry leaders are inclined to use green equipment in data centers to minimize power consumption. Moreover, businesses are expected to receive impetus from recycling and reuse to reduce waste and capital expenditure. In essence, Google suggests that 5 of its data centers operate at almost 90% carbon-free energy (CFE). With data centers continuing to be sought-after in the energy transition, sustainable cloud services will witness investments galore. In August 2021, the American giant announced an infusion of USD 1.2 billion in Germany’s Cloud Computing Program by 2030 to undergird cloud computing infrastructure and renewable energy usage. 

Social Perspective

Diversity representation and the emphasis on inclusivity have become a viable portfolio to foster a positive change within the company and across societies. Prominently, women account for over 30% of the Microsoft workforce globally. Moreover, women in technical roles have risen between 1.4 and 1.6% points over the past half a decade. It has also embarked on a mission to represent the population of people with disabilities. As of June 2022, around 7.8% of the Microsoft employees in the core business in the U.S. self-identified as having a disability. With the global push to propel racial equity, the company has injected around USD 150 million to reinforce inclusion and the number of U.S. Black and African American and Hispanic and Latinx people managers, senior leaders and senior individual contributors by 2025. An emphasis on diversity, equity and inclusion will redefine computing solutions and help employees be more innovative and creative. 

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

Governance Perspective

Cloud-based management can unlock avenues of growth in ESG with increased transparency, data standardization, and process automation. Tax transparency, board diversity, executive pay, and sound governance structure will leverage companies to create long-term value. Brands and institutions have fostered governance frameworks and brought new skills and global perspectives. To put this in perspective, eleven out of 12 director nominees are independent in IBM. Meanwhile, two women directors and three ethnically diverse directors were included in the past three years, according to the IBM 2021 ESG report. The American giant has an Audit committee to help identify financial and audit risks with the assistance of IBM’s enterprise management framework about AI ethics, privacy and cyber. Development of practices and policies that emphasize transparency, trust, ethics and accountability could be pronounced, auguring well for the industry growth. 

The competitive landscape indicates an increased focus on organic and inorganic strategies, such as technological advancements, product offerings, mergers & acquisitions, innovations and collaborations. For instance, in October 2022, Alibaba announced opening a new campus with investments in cloud computing. The design of the campus is reportedly eco-friendly, including flowerpots made from recycled plastic, a photovoltaic power generation system and high-efficiency low-energy devices in the on-site coffee shop. The global cloud computing market size was pegged at USD 368.97 billion in 2021 and could observe a 15.7% CAGR between 2022 and 2030. 

About Astra – ESG Solutions By Grand View Research

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

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

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

Cold Storage Industry Underscores ESG Pillars to Foster Global Footprint

Concerted efforts to enhance food safety has encouraged cold storage industry companies to give importance to environmental, social and governance (ESG) performance. Sustainable development has come into the spotlight to foster eco-friendly refrigeration technology and utilize energy-efficient materials. Food & beverage companies have sought cold storage amidst an increased emphasis on ESG pillars. Cold storage is invaluable in preventing disruptions in food availability and emission-intensive losses of food. Food waste is one of the significant sources of GHG emissions, triggering food insecurity and burdening waste management systems. Increasing access to fresh food and reducing food insecurity can boost social equality.  

Advancements in cold storage have provided potential opportunities for industry leaders to expand their ESG penetration. Stakeholders, including hotels, bakeries, stores, restaurants and other businesses, have invested in managing the temperature of perishable goods. Industry leaders have exhibited an interest in social opportunity, health & safety, diversity, product liability, business ethics, transparency and environmental opportunities. 

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

Environmental Perspective

With carbon emissions becoming pronounced across business verticals, state-of-the-art refrigeration control systems have gained ground. Notably, energy consumption has become a major concern at refrigerated warehouses. Efficient cooling equipment and a temperature-controlled supply chain have received an impetus to minimize food loss and GHG emissions. The University of Edinburgh’s Department for Social Responsibility and Sustainability has undertaken cold storage sustainability project to minimize the energy consumption linked with cold storage facilities in Life Science Labs. In 2020, Americold poured over USD 8.4 million to complete 55 sustainability projects. The company installed four variable frequency drive (VFD) controls in four cold storage sites during the same period, saving around 1.5 kWh annually. It is contemplating installing 100% energy-efficient lighting across the global portfolio by 2030. 

Social Perspective

Global push to minimize the environmental footprint of the cold storage industry has subsequently put the spotlight on the social pillar, including workplace safety, diversity & inclusion and investments in training & education, among others. Barloworld Limited is gearing up for a 50% female representation in leadership roles by 2025. The company has emphasized policies, such as Group Human Rights Policy, Employee Wellness Strategy, Group Talent Management Framework and Policy, Barloworld Harassment Policy and Group Health and Safety Policy. Industry leaders have upped their efforts to adopt a proactive approach to bolster safety management. For instance, the Total Recordable Incident Rate (TRIR) at Americold was 2.29 in 2020. Besides, the company launched inclusive hiring training for HR, talent acquisition and hiring managers in 2022. Stakeholders are poised to further their strategies for maintaining the culture of diversity and safety.

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

Governance Perspective

Good governance has come on the horizon as a torchbearer of innovation, growth and smooth functioning of organizations. Leaders have underscored their policies on ethics, corporate opportunities, zero tolerance for corruption and transparency. Shareholders and other stakeholders have vouched for a sustainable company that recognizes the impact of activities on the environment, society and the economy. To illustrate, executive management at Barloworld embeds an ethical and responsible culture to safeguard the interest of its shareholders and group. The company has also invested in anti-bribery and corruption and due diligence policies. It is slated to include ESG in Executive Performance Management and Remuneration philosophy, policy and practices. The South Africa-based company has furthered its tax strategy with an increased emphasis on Group Tax Risk Management Policy and disclosure and assurance practices in line with global standards and frameworks.

Well-established players and startups have reinforced their strategies on long-term cost savings, managing waste, diversity and sound corporate behavior. In doing so, industry dynamics, such as mergers & acquisitions, partnerships, technological advancements and product offerings, could gain traction. For instance, in June 2022, Burris Logistics acquired R.W. Zant to bolster its footprint on West Coast. The latter deals in the redistribution of diary brands and proteins to retail and food service distributors. These trends suggest the global cold storage market could witness approximately 13.4% CAGR from 2021 to 2030. 

 About Astra – ESG Solutions By Grand View Research

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

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

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

Pet Food Industry Banks on Regenerative Farming to Enhance ESG Performance

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

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

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

Environmental Perspective

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

Social Perspective

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

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

Governance Perspective

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

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

About Astra – ESG Solutions By Grand View Research

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

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

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

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

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

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

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

Environmental Perspective

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

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

Social Perspective

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

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

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

Governance Perspective 

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

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

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

About Astra – ESG Solutions By Grand View Research

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

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

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

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

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

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

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

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

Environmental Perspective

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

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

Social Perspective

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

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

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

Governance Perspective

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

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

About Astra – ESG Solutions By Grand View Research

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

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

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