The Role of ESG in the Food Waste Management Industry

Environmental, Social and Governance (ESG) strategies have become paramount to steer positive change for the planet, people, communities and other stakeholders. Sustainability has garnered headlines with measures for waste reduction, carbon emissions and higher raw material costs. The global push to boost ESG performance has compelled brands to emphasize recycling and waste management.

Notably, the adoption of the Sustainable Development Goals suggests countries' commitment to helping halve per capita food waste at the consumer and retail levels and minimize food losses by 2030. Amidst efforts to bolster food accessibility, around 687 million people go hungry each day, according to a report cited by the World Bank. In essence, the organization notes that 1.3 billion tons of food are wasted by consumers and retailers or lost along the supply chain.

Investors, shareholders and other stakeholders are emphasizing the reduction of environmental footprint. Government agencies and organizations are responding to demands for ESG reporting. The emergence and implementation of policies have made a profound difference in the industry. In August 2022, U.S. President Joe Biden inked an Inflation Reduction Act, alluding to the injection of USD 369 billion into energy and climate projects in the next 10 years. Several provisions of the Act aim to minimize greenhouse gas emissions by a billion metric tons by 2030. 

Key Companies in Food Waste Management Industry

    • Veoli

    • Suez

    • Waste Management, Inc.

    • Republic Services, Inc.

    • Covanta Ltd.

    • Stericycle, Inc.

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

Environmental Perspective

Food waste management companies have exhibited bullish traction for ESG as they augment greenhouse gas emission- and food waste- reduction targets. Boosting sustainable practices to motivate vendor partners, stakeholders and communities can solidify the company's position in the global ecosystem. To illustrate, Albertsons Companies mentioned in its report the commitment to zero food waste going to landfills by 2030.

The American grocery company is vying to propel the reusability, recyclability and compostability of Own Brands packaging by 2025. Furthermore, it is gearing to achieve net zero emissions in its operations by 2040 and 47% carbon reduction from its operation by 2030. Prominently, the company suggested it diverted over 215 million pounds of food from landfill with the help of anaerobic digestion. Industry partners and leaders are expected to be inclined towards creating a sustainable food system, eradicating hunger and undergirding food security.

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

Social Perspective

Amidst the prevalence of food insecurity, an emphasis on customers' and employees' well-being has prompted industry leaders to bank on the social pillar. In doing so, stakeholders have upped their efforts on diversity, equity and inclusion to foster community engagement, augment the pool of diverse candidates, expand training and promote racial equity and social justice. For instance, in 2021, Kellogg's included Potential Severe Injury Fatality cases and rolled out EHS Insight Dashboards to offer better trends analysis of EHS data. The company claims to have no fatalities in 2021, with a global total Kellogg total reportable incident rate of 0.42.

The food company has furthered its efforts on diversity globally. For instance, as of December 2022, 25% of the 3,000 employees in Kellogg India are women. Women of Kellogg + (WOK+) has become pivotal in empowering women and advocating gender equity in the workplace. The American food manufacturing company is committed to Human Rights Campaigns Best Place to Work for LGBTQ Equality and Diversity Best Practices Index, among others. Companies are expected to embrace the commitment to diversity, equity and inclusion to deliver upsides to the communities, people and the environment.

Governance Perspective

Food waste management companies are counting on corporate governance, transparency, board diversity, corporate behavior and ethics to stay ahead of the curve. Diversity of experience, skills, backgrounds, qualifications, expertise and age will hold the key to selecting board members. Notably, in Veolia, seven out of ten directors on the Board of Directors of Environment are independent. The BoD is responsible for drafting the agenda of the annual shareholders meeting and appointing the chairman and the financial statements. The company has four committees: Research, Innovation and Sustainable Development Committee, accounts and audit committee, nominations committee and compensation committee.

Brands, such as Veolia, have made a giant stride in gender diversity to bolster their position in ESG performance. Prominently, the company has 33% women on the Executive committee and is gearing up for 25% women among Group executives by 2023. With gender diversity and professional equity gaining ground, companies are poised to create meaningful change through investments in governance.

The competitive landscape alludes to an emphasis on organic and inorganic strategies to tap into the global landscape. To put things in perspective, commitment to environmentally friendly food practices using state-of-the-art technologies may become pronounced in the ensuing period. The use of machine learning and AI could become the next big thing to reduce waste and propel sales through inventory management. Amazon asserts the Amazon Forecast has helped its customers in Greater China minimize product waste by 37%, leading to 22% cost savings across three merchandise categories and 168 stores.

About Astra – ESG Solutions by Grand View Research

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

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

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

The Role of Governance in the Wine Industry ESG

Environmental, social and governance (ESG) has emerged as one of the core strategies in the wine industry to integrate sustainability into business goals and achieve sustainable growth. Environmentally friendly winegrowing practices have gained ground as sustainable vineyards continue to amass popularity. Wineries and vineyards have warranted social and environmentally responsible approaches to ensure soil, communities and industry health. An emphasis on water efficiency, pest management, energy efficiency, waste management and supply chain can foster sustainable viticulture.  

Of late, organic wine that does not have added sulfites to increase shelf life has come on the horizon. Since various synthetic products are banned in several countries, producers and farmers may be forced to seek organic farming. Moreover, biodynamic farming has stood out among winegrowers as it aims to balance and revive soil, farm and plant’s health. It can also enhance soil fertility and enable vines to flourish in a balanced ecosystem. 

ESG performance will hold prominence to protect diversity, minimize waste, produce healthy wines, ensure traceability, enhance transparency and boost job creation. Similarly, stockholders, shareholders and other stakeholders are expected to bank on ESG pillars to gain steam in the global landscape.

Environmental Perspective

Winegrowers are counting on environmental performance to preserve ambiance and negate the impact of climate change on wine production. For instance, regenerative agriculture practices have received an impetus to minimize tilling, enhance soil health and help bind carbon in the soil. Moreover, an increased need for water at wineries has furthered the demand for state-of-the-art water tracking devices. Vintage Wine Estates is contemplating using NASA data and AI to forecast water availability. The U.S.-based company has been reusing wastewater from wineries and using city graywater for vineyard irrigation.

Furthermore, in 2022, the company claims to have completed its first scope 1&2 carbon emissions calculations. It also adopted strategies, such as installing alternative energy, efficiency upgrades and streamlining tracking of energy use in real-time across wineries. Brands are likely to further their sustainability quotient and stay committed to a culture of care toward the environment.

Social Perspective

Wineries and vineyards with a focus on diversity, equity, inclusion and workplace safety can redefine the global landscape. Pioneering companies and other leaders have upped investments in human rights to eliminate discrimination and forced labor. By 2022, the Asahi Group spurred efforts to complete human rights due diligence at suppliers. The company formed a Diversity, Equity & Inclusion (DE&I) statement in the preceding year. It aims to propel the percentage of female representation of leadership positions to 40% by 2030, up from 22% in 2021.

The Tokyo-based company has put the spotlight on people-to-people connections globally. It contemplates launching the Environmental Think Tank to allow employees to implement proposed projects and help resolve regional environmental issues in Oceania. Besides, it could implement support projects for hops farmers, barley farmers and Campus Peroni. Promoting a culture full of opportunities and the well-being of employees can underscore social pillar, thereby strengthening brand position.

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

Governance Perspective

Companies that prioritize transparency, good corporate governance and board diversity may have the edge over their competitors. The strategy can optimize the company’s performance, offer guidance for smooth management and recognize the organization’s legal obligations. Specifically, women comprised 58.3% of the Board of Directors at Pernod Ricard as of 30th June 2022, while 58.3% were independent directors and 42.8% were non-French Directors.

Meanwhile, Treasury Wine Estates has eight non-executive directors and has augmented focus on risk management frameworks and controls. The company has furthered its emphasis on tax governance to muster up stakeholders’ value, trust and confidence. It has adopted a low tax risk appetite, suggesting tax risks above the level mentioned in the risk management framework are managed by a robust mitigation plan. 

Incumbent players have emphasized minimizing carbon emissions and investing in renewable energy. For instance, the Asahi Group has set an audacious goal of transitioning all of its breweries to renewable energy-derived electricity by 2025 across Europe. On the other hand, Treasury Wine Estates opened a USD 165 million production facility in Barossa Valley, South Australia, to help manage climate change impacts on winemaking vintages. These trends indicate the global wine market could observe a healthy CAGR of 6.4% from 2021 to 2028. 

About Astra – ESG Solutions By Grand View Research

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

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

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

Sustainable Baby Care Products: An Overview

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. 

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 the participants in 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 pursued 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

An Overview of ESG in the Healthcare IT Industry

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. 

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 in 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, and building corporate sustainability reports. Astra team includes a pool of industry experts and ESG enthusiasts who possess extensive end-end ESG research and consulting experience at a global level.

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

Understanding the Importance of ESG in the Lubricant Industry

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

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

Environmental Perspective

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

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

Social Perspective

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

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

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

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

Governance Perspective

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

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

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

About Astra – ESG Solutions By Grand View Research

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

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

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

The Importance of Environmental Sustainability in Cold Storage Industry

Concerted efforts to enhance food- safety and -waste have encouraged cold storage industry companies to foster 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. 

Key Companies in this theme

    • Americold Logistics, LLC

    • Burris Logistics

    • Barloworld Limited 

    • Cloverleaf Cold Storage

    • Henningsen Cold Storage

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

Paints And Coatings Industry ESG - Thematic Report

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

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

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

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

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

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

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

2. AkzoNobel Propels Carbon Neutrality Commitment

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

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

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

4. Nippon Paint Holdings Emphasizes Occupational Health & Safety

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

5. BASF Navigates Opportunities in Corporate Governance

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

6. RPM Prioritizes Diversity in Board Vacancies 

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

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

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