Trends in ESG Reporting for Protein Supplement Industry

Consumers are emphasizing sustainability credentials when purchasing food & beverages, prompting protein supplements manufacturers to bank on ESG metrics. Sustainable packaging, environmental preservation, clean label claims, transparency, ethics & compliance and health have become paramount among sustainability-minded consumers. Plant-based and whey-proteins have garnered popularity among Gen Z and millennials, a trend likely to drive the footprint of sustainable food.

Whey protein has become prevalent among athletes and customers who warrant protein supplements in their diet. Manufacturers, consumers, media and influencers are counting on whey protein powders to foster sustainable food production. Decision-makers seek a crystal clear picture of how protein products will impact the environment, community and governance.

In September 2022, the Good Food Institute (GFI) and FAIRR rolled out an ESG reporting framework for the alternative protein industry. At a time when the world is gearing up for climate accountability, disclosure of the ESG framework could underscore business practices.

Learn more about the practices & strategies being implemented by industry participants from the Protein Suppliements Industry ESG Thematic Report, 2023, published by Astra ESG Solutions

Environmental Perspective

The soaring popularity of protein supplements, including powders, bars and shakes has prompted stakeholders to prioritize their environmental footprint. Global watchdogs, such as the Intergovernmental Panel on Climate Change (IPCC), have vouched for sustainable meat production to decarbonize food production and keep up with the demand for protein. In August 2022, an Oxford study deduced that meat alternatives had less than a tenth of the environmental impact of meat-based equivalents.

Forward-looking companies have furthered their efforts to underpin their environmental profile. For instance, in 2022, Glanbia upgraded its scope 1 & 2 emissions reduction targets and aims for 100% recyclable, reusable or compostable packaging by 2030. It has also set the target of a 50% absolute reduction in emissions from operations and a 25% reduction in dairy emissions intensity by 2030. Establishing environmental goals and transitioning to a low-carbon economy will open a unique window of opportunities in the global landscape.

Social Perspective

A sustainable future demands product safety & quality, employee health and well-being, diversity & inclusion, responsible nutrition, animal welfare and fair pricing. In August 2022, Harvard Health Publishing noted that protein powders could contain added sugars and calories. During the year, Clean Label Project claimed in a report that protein powders may contain heavy metals, pesticides or other contaminants linked to cancer or other health issues. With vegans, athletes and adults banking on protein powders to supplement their diets, industry leaders are expected to emphasize consumers' health & safety to bolster the brand position.

Decision-makers have shown an inclination to attract and retain diverse employees to bolster their ESG performance. For instance, Abbott is gearing up to achieve gender balance with at least 45% female representation across STEM and global management roles. The company is on course to offer one million job and development opportunities by 2030. Commitment to diverse perspectives and ideas will drive innovation and help attain Sustainability plans.

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

Governance Perspective

Investors, consumers, companies and governments are making informed decisions with good corporate governance practices, regulations, compliance with laws, transparency and board diversity, among others. To illustrate, in 2022, Glanbia updated its anti-bribery and corruption policy to reinforce fraud prevention procedures. Females represent 55.5% of the independent non-executive directors, the company exhorted in its Annual Report and Financial Statements 2022. Meanwhile, Abbott mentioned in its DEI Report 2021 that one-third of the leadership roles were held by people from underrepresented groups, while women accounted for 40% of the global management positions in 2021.

ESG reporting is expected to be pronounced as governments can mandate climate reporting by 2025. For instance, in April 2021, the EU Commission proposed a Corporate Sustainability Reporting Directive. In September 2022, Kroger updated its ESG action plan to underscore its strategy and propel sustainable packaging. ESG disclosure, reporting and claims have gained momentum in 2023 and could be prevalent in the ensuing period.

As the industry forays into ESG reporting, incumbent players are slated to inject funds into organic and inorganic strategies that can help them transition their protein portfolios to meet sustainability goals. In 2023, NOW Foods announced shifting its supplement bottles to 100% post-consumer recycled (PCR) resin. The step will enable the natural products company to reuse recycled packaging materials and minimize its carbon footprint. These dynamics suggest the global protein supplements market could depict an 8.5% 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 Reporting in the 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. 

Key Companies in this theme

    • Ambow Education

    • ArborBridge

    • Beijing Magic Ears Technology Co., Ltd.

    • BYJU’S

    • Chegg, Inc.

    • Club Z! Inc.

    • iTutorGroup

    • Qkids Teacher

    • Varsity Tutors

    • Vedantu.

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

Why ESG is Essential for Real Estate Investment Success

Strong environmental, social and governance (ESG) policies have become instrumental in building a resilient real estate industry supply chain. The trend for green- and smart -buildings has put the spotlight on real estate companies to exhibit a pragmatic approach to sustainability. Policymakers are counting on circular economy principles to foster their ESG rankings. Lately, heightened awareness towards renovation and retrofitting has played its part in conserving resources and minimizing emissions. Investors and lenders have shown an increased inclination for ESG reporting, a lot of shifts towards sustainability is likely to be witnessed in the near terms.

Significant progress on climate-based goals will help create long-term value for stakeholders. Commercial real estate organizations have furthered their efforts in ESG management to bolster decarbonization, diversity, equity & inclusion, workplace safety, transparency, ethics & compliance and sound corporate behavior.

Key Companies 

    • Brookfield Asset Management Inc.

    • ATC IP LLC.

    • Prologis, Inc.

    • SIMON PROPERTY GROUP, L.P.

    • Coldwell Banker

    • RE/MAX, LLC.

    • Keller Williams Realty, Inc.

    • CBRE Group, Inc.

    • Sotheby’s International Realty Affiliates LLC.

    • Colliers

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

Environmental Perspective

Key decision makers have upped investments in environmental KPIs to cash in on the climate change opportunities, greenhouse gas emissions metrics and environmental management systems. Bullish investments in clean energy could be a way forward to move towards a low-carbon economy. For instance, Brookfield Renewable has set an audacious goal to develop 21,000 MW of new clean energy capacity by 2030. The company claims its power generation was vital in doing away with 29 million metric tons of carbon dioxide net emissions in 2021. Brookfield also asserts that 100% of its eligible core office properties achieved a sustainability designation (2021 ESG report).

Industry leaders have focused on waste and water reduction to bolster their green building initiatives, including water conservation, energy reduction, recycling, erosion control, environmentally friendly cleaning materials, alternative transportation parking and improved indoor air quality. The company suggests that a global transition to a net-zero economy may warrant around USD 3.5 to 5.0+ trillion investments annually. The Asset management company is gearing up to minimize scope 1 and 2 emissions of in-scope assets by around one million metric tons of CO2e across real estate, private equity, infrastructure, renewable power & transition businesses.

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

Social Perspective

Investors and stakeholders are creating an atmosphere to foster an open, positive and inclusive work culture. Diverse representation could be a testament to companies' adoption of a robust framework to reinforce gender diversity and other workforce demography practices. As of December 2021, Prologis has trained over 13,000 people in logistics with its community workforce initiative since 2018. It has also furthered its efforts on formal mentor programs and inclusion leadership development programs. The U.S.-headquartered company offers real estate training and programs to underpin career development, feedback and performance management.

Incumbents have banked on an environment where everyone is respected and treated fairly. In 2022, Prologis rolled out the global Inclusion & Diversity (I&D) steering committee and included new educational resources, toolkits and programs in the preceding year to underscore employee training on inclusion and diversity. The real estate investment company has left no stone unturned to undergird safety standard compliance. In 2021, the company noted that every maintenance technician in the U.S. completed the OSHA 10 general industry training. Prologis warrants each development project to have a qualified safety inspector with no other (project) responsibilities, and a concerted effort to enhance a safe work environment.

Governance Perspective

Sound governance reflects a company's policies and practices toward transparency, ethics & compliance, board diversity and ESG reporting standards. At Simon Property Group, the Director of Sustainability oversees climate-related programs, including but not limited to low carbon transition plans, fostering green technology innovation and encouraging the use of renewable energy. Notably, the Audit Committee oversees the annual disclosure of ESG matters, while the Governance and Nominating Committee helps the board oversee and review Simon's policies pertaining to sustainability.

The company has furthered its efforts to procure sustainable products, making its Suppliers Code of Conduct public in 2021. The governance aspects provide anti-corruption/anti-bribery clauses, anti-money laundering, counter terrorism provisions and restrictions on conflicts of interests and related party transactions. In 2021, it formed a diversity & inclusion (D&I) council to manage Simon's D&I strategy and offer inputs on D&I efforts. According to its Sustainability Report 2021, Simon has 36% female independent directors, while around 45% of independent directors have joined the board since 2015.

ESG has become paramount for a sustainable and profitable business. Significant capital will be guided toward sustainability as the real estate business shifts to a clean future. Investors and portfolio managers are responding to the ESG reporting trend. Prevailing industry dynamics strengthen Grand View Research's estimation of the global real estate market at USD 3.69 trillion in 2021, which could witness a robust CAGR of 5.2% 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.

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

Jewelry Industry: A Look at ESG Reporting Practices

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

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

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

Key companies in this theme

    • Tiffany & Co.,

    • Pandora

    • Chow Tai Fook

    • Louis Vuitton SE

    • Richemont

    • among others.

Pandora Brings Lab-created Diamonds to the Fore

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

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

Tiffany Banks on DEI Initiatives to Stay Ahead of the Game

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

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

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

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

Leading Players Navigate Opportunities in Governance

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

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

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

About Astra – ESG Solutions By Grand View Research

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

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

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

Fuel Cell Industry ESG Trends to Watch in 2023

Fuel cells have emerged as an environmentally friendly option to provide power for applications, including residential/commercial/industrial buildings, transportation and power stations. The unique value proposition of environmental, social and governance pillars will leverage industry leaders to empower the world with clean energy. Although 2020 through 2022 were periods of global turbulence emanating from the COVID-19 pandemic, inflation, energy crisis, geopolitical developments and volatile weather conditions, 2023 and beyond could see stakeholders prioritize ESG to bolster the brand position.

Global push to comply with the Paris Accord Climate Targets will encourage companies to meet the greenhouse gas emissions commitments, thereby fostering the clean energy revolution. Hydrogen has emerged as an invaluable component for green transition and energy source diversification. Fuel cell technology will expedite targets to pursue economic recovery and combat climate change Along with the concerted efforts to transition to a zero carbon economy, forward-looking companies have prioritized diversity, equity & inclusion, workers' health & safety, training programs, transparency, corporate behavior and ethics & compliance.

Key Companies in this theme:

    • Fuel Cell Energy, Inc.

    • Ballard Power Systems

    • SFC Energy AG

    • Nedstack Fuel Cell Technology B.V.

    • Bloom Energy

Learn more about the practices & strategies being implemented by industry participants from the Fuel Cell Industry ESG Thematic Report, 2023, published by Astra ESG Solutions

Environmental Perspective

Amidst an exponential demand for energy, decarbonizing power and producing hydrogen have come on the horizon. Technologies are likely to be built for decarbonizing mobility and industrial applications. The penetration of hydrogen fuel will potentially negate the fossil fuel concerns that have plagued the globe. It is worth mentioning that hydrogen does not need mining and is not prone to geopolitical risks.

In February 2022, FuelCell Energy introduced the 2021 Sustainability Report exhorting a commitment to attain net zero emissions by 2030 on Scope 1 and Scope 2 emissions. As of August 2022, its energy plants generated over 13,788,125 megawatt hours. The U.S.-based company is gearing up to achieve net-zero carbon emissions by 2050, a step likely to foster the adoption of decarbonization.

Social Perspective

Industry leaders have furthered their focus on social contributions, including increasing the proportion of women in the workforce, underpinning employment in operational sites and providing training programs. Lately, emphasis on talent attraction, retention, robust grievance mechanisms, women empowerment and occupational health & safety has gained uptick.

Advent Technologies has upped investments in women empowerment and training pertaining to ethics, professional skills development and health & safety issues on laboratory processes. In 2021, the percentage of permanent employees was 98%, exhibiting its efforts toward human capital management. The company asserts its Employee Handbook covers bullying and harassment, diversity, accessibility, non-discrimination, working hours and minimum age requirements. A strong commitment to the social pillar to provide fuel cell power for a sustainable world will help companies position themselves in the industry.

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

Governance Perspective

The strategic ESG vision warrants board diversity, transparency, sound corporate behavior, fair business practices and regulatory compliance. Building trust from business partners, investors, financial markets and the public at large has become instrumental in boosting the ESG rankings. For instance, Bloom Energy has strengthened its ESG disclosure efforts. The company's 2021 sustainability report is in line with Task Force on Climate-related Financial Disclosure (TCFD) recommendations, Sustainability Accounting Standards Board (SASB) standards and the Global Reporting Initiative (GRI) framework.

The Board of Directors (BoD) offers strategic guidelines on ESG matters pertaining to Bloom Energy's business and approves strategy, such as ESG components. Besides, the company inferred that its first Environmental Management System (EMS) audit would have happened in 2022. Bloom Energy has also fostered its culture of ethical decision-making. In 2021, the U.S.-based company hired corporate ethics and compliance program leaders. Building a strong and robust governance culture will serve as a solid foundation to propel environmental and social performances.

Identifying areas for development and improvements of communities, environments and businesses have become pronounced with the emergence of the hydrogen economy. Manufacturing and injecting funds into key technologies to protect energy security, employment and achieve climate goals can propel the value proposition.

In July 2022, the European Commission was reported to have approved an Important Project of Common European Interest (IPCEI) to underpin research & innovation and the first industrial deployment in the hydrogen technology value chain. The Member States would pour €5.4 billion (approximately USD 5.8 billion) in public funding. Meanwhile, in February 2023, Nedstack joined forces with ZBT for the industrialization and co-development of fuel cells.

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 Impact of ESG on the Future of Hydrogen Generation

Like-minded stakeholders, innovators and entrepreneurs are counting on hydrogen generation to combat climate change and dramatically minimize CO2 emissions. Well-established players are prioritizing decarbonized hydrogen to propel the green portfolio. The environmental, social and governance (ESG) performance has received an impetus with bullish government policies. In April 2021, U.S. President Joe Biden announced a robust goal of minimizing greenhouse gas emissions by 50-52% by 2030. Green hydrogen—created from the electrolysis of water—has gained ground as the most environmentally friendly fuel to produce energy without emitting CO2. In common parlance, hydrogen is a major enabler of clean energy transition and produces zero emission at the point of use. 

Exponential demand for green hydrogen has boded well for ESG policies amidst the fuel warranting significant storage, transportation and production infrastructure. The U.S. has proposed Climate Disclosure Rule requiring public companies to make GHG-related disclosures. Besides, it mandates public companies to disclose Scope 1, 2 and 3 emissions. The disclosure rule is poised to prompt and incentivize industry participants to infuse funds into greener energy. Hydrogen could be a silver bullet to minimize GHG emissions. Industry players are gearing up to provide a sustainable future with cost-effective, dependable and accessible green hydrogen energy. 

Key Companies in this theme

• Linde PLC

• Indian Oil Corporation

• Air Products and Chemicals Ltd.

• Air Liquide

• Bloom Energy Corporation

• Ceres Power Holdings PLC

• Plug Power, Inc.

• FuelCell Energy, Inc.

Environmental Perspective

As stakeholders emphasize a clean hydrogen economy to boost productivity, reduce carbon footprints and minimize operating costs, bespoke hydrogen generation solutions could bring a paradigm shift globally. Investors are aligning their businesses with environmental performance, with companies striving to inject funds into clean energy technologies to foster energy efficiency and cut climate-changing emissions. Even though hydrogen is a low-carbon energy source, transportation of hydrogen using internal combustion engine trucks contributes to GHG emissions. These trends have compelled leading companies to invest in green hydrogen. In 2022, Plug Power acquired Joule Processing to bolster its green hydrogen ecosystem and reduce the logistics networks and hydrogen infrastructure cost. The company plans to augment the green hydrogen production to 200 TPD by 2023 across North America. 

Leading players aspire to infuse funds into clean energy technologies to reduce fleet emissions. Linde asserts around 83% GHG emissions could be reduced from transportation using renewable diesel. The company has implemented an environmental management system in line with ISO 14001—the international standard for EMS—for the management of atmospheric emissions and waste, to leverage pollution prevention and control, management of environmental impacts from transportation and protection of biodiversity and natural resources. Around 99% by weight of the raw materials used in 2021 were renewable raw materials, such as produce hydrogen, oxygen, gaseous nitrogen, carbon dioxide and argon. It has an audacious target to cut absolute GHG emissions by 35% by 2035 and claims it helped customers do away with over 88 million metric tons of CO2 in 2021. 

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

Social Perspective

Investors prioritize community investment, diversity & inclusion, ethical supply chain, harassment-free workplace and employee health. Prominently, these factors act as a marker shaping the future of business, creating resilient business plans and cementing equality of opportunity. Linde has been at the helm with over 80% social score as it integrates sustainable strategies into business strategy. The company introduced the Global Giving program to infuse over USD 4 million into educational programs. The Board of Directors and CEO are accountable for social issues affecting Linde. Meanwhile, the CHRO oversees management and retention, talent sourcing, inclusion and diversity. However, the global voluntary turnover rate was pegged at 6.7%, according to its Sustainable Development Report 2021.

Linde has furthered its efforts on a safe operating environment through investment in cutting-edge technologies. For instance, in 2021, the industrial gas company invested around 5 million hours in safety training for its contractors and employees. The company is leaving no stone unturned to promote gender diversity. It introduced a “30 by 30” gender balance goal with the aim of having 30% females at all professional levels by 2030. The company is emphasizing training for inclusion, business accountability and strengthening the pipeline program to achieve the ambitious goal. 

IndianOil has propelled its recruitment strategy and equal opportunities policy to develop, attract and retain top talent from diverse backgrounds. According to its Sustainability Report 2020-21, the company hired 490 new employees; 90% of these hires were below 30 years of age, while 43 were female during the year. It also formulated Talent Vision and Strategy Framework for the 2021-24 period to foster learning, employee engagement and workplace safety, among others.

Notably, the Indian giant rolled out the revamped employee satisfaction and engagement survey in 2021—Pratidhwani—to underscore engagement activities and understand the feedback and opinions of internal stakeholders. The company has also established reporting kiosk to report near-miss incidents. It conducts regular safety audits to comply with standard operating procedures, detect unsafe and hazardous acts, and analyze the effectiveness of safety systems. The energy major has developed Emergency Response and Disaster Management Plans (ERDMP) to streamline preparedness during fires, spills, leaks, explosions and other risk scenarios. The Indian PSU asserts its 100% locations are equipped with ERDMP plans and performs liaison activities with central government agencies, including National Disaster Response Force (NDRF). Amidst strong safety policies, IndianOil recorded 8 cases of fatalities during 2020-21, a two-fold rise from 2019-2020. 

Governance Perspective

Ensuring compliance with the rules, regulations and laws has become a major prerequisite for sound corporate governance. NEL ASA published its first sustainability report in 2020 with the goal of 100% of executive management and other employees completing anti-corruption training by 2022. In September 2020, the company launched its whistleblowing channel—NEL Ethics Hotline. In the next month, it introduced the Nel Anti-Bribery and Corruption Policy and the Nel Competition Law Policy.

A transparent government structure is a vital cog in the governance pillar for sustainable growth. Companies such as Plug have set the goal of continuing the development of ESG governance to boost transparency, standardization and consistency across the landscape. The CEO at Plug organizes weekly hall meetings with employees to share updates on initiatives and answer questions and queries. The company provided compulsory training on vigilance to eradicate corruption and bribery.

Air Liquide has propelled its sustainability portfolio, contributing to ESG commitments and creating positive impacts for climate, people and health. In April 2022, the French company published its first Sustainable Development report, taking a giant leap toward transparency. In March 2022, the Group laid out a strategic plan—ADVANCE—to combine financial performance, environmental and societal performances. The company aims to augment the investments to around 16 billion euros (approximately USD 16.5 billion) from 2022 through 2025, with 50% earmarked for the energy transition.

The France-based company aims to increase the percentage of women among managers and professionals to 35% by 2025, up from 31% in 2021. The company has spotlighted an international, independent, gender-balanced board of directors. Prominently, 50% of its board are women and around 92% are independent members. In June 2022, the board of directors announced the separation of the roles of Chief Executive Officer and the Chairman of the Board of Directors. 

With a strong case of independent directors in better-performing organizations, forward-looking companies have reinforced their governance profile. In essence, Linde’s 8 BOD are independent non-executive directors. The board has fostered its governance structure with a focus on, including but not limited to split roles of Chairperson and CEO, director independence, board effectiveness, ideal board committees, alignment with shareholder interests, shareholder outreach, limits to service and board diversity. In 2021, the BOD included a new Sustainability Committee emphasizing clean energy initiatives and environmental aspects. During this period, the executive leadership team reviewed the ESG presentations prepared for the BOD. 

Governing bodies and other stakeholders are emphasizing sustainability development targets through innovations and decarbonization investments. In December 2021, the European Commission reportedly proposed an EU framework to boost hydrogen, decarbonize gas markets and minimize methane emissions. The European Network of Network Operators for Hydrogen (ENNOH) would be formed to underpin dedicated hydrogen infrastructure, interconnecting network infrastructure and cross-border coordination. The new rule is expected to expand in two phases with access to the separation of hydrogen production, tariff setting, transportation activities and hydrogen infrastructure.

Industry participants are striving to create a business model that enhances social, economic, governance and environmental values. Well-established players are prioritizing hydrogen as a cornerstone of the energy transition. For instance, Air Liquide has earmarked 8 billion euros (around USD 8.25 billion)—over the next ten years—for the full hydrogen value chain, such as electrolysis, supply chain, carbon capture and storage. It expects its hydrogen revenue to be pegged at 6 billion euros (approximately USD 6.2 billion) by 2035. In 2021, Shell initiated production at the electrolyzer with the 10 MW proton exchange membrane using renewable energy to produce up to 1,300 tons of decarbonized hydrogen annually. In January 2022, Shell New Energy was involved in a joint venture with Zhangjiakou City Transport to start a hydrogen electrolyzer in China with 20 MW capacity. It expected the electrolyzer to render around 50% of the total green hydrogen supply for fuel cell vehicles during the Winter Olympic Games in the Zhangjiakou competition zone. The hydrogen generation market size garnered USD 129.85 billion in 2021 and could witness a 6.4% CAGR from 2022 to 2030. Soaring hydrogen demand and a surge in global spending on energy research will provide a quantum leap to the ESG efforts. 

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 ESG in Driving Innovation in Smart Agriculture Industry ESG

Stakeholders are establishing ethos to bolster environmental, social and governance (ESG) performance in the smart agriculture industry. Forward-looking players are enriching the lives of producers and consumers through sustainable innovation to minimize environmental footprint. State-of-the-art technologies, including precision farming, automation, sensors and cloud computing, have become the next big thing in the agriculture industry. ESG investors are expected to drive capital flows to help farmers overcome livelihood and other barriers to adopting environmentally friendly smart technologies.

Governing bodies and watchdogs have vouched for building resilience for people, agriculture food system and sustainability to augment agricultural productivity and incomes. An unprecedented spike in the global population and shifting diets have spurred the demand for smart agriculture to manage cropland, forests and livestock.

A feature story on the World Bank website claimed that acute food insecurity in 2023 could overtake the food crisis witnessed in 2007-2008. With agriculture being prone to climate change, weather variability, soaring temperature and invasive crops have elicited challenges and opportunities for investors and other stakeholders. The World Bank infers that agriculture produces around 19–29% of total greenhouse gas (GHG) emissions.

Learn more about the practices & strategies being implemented by industry participants from the Smart Agriculture Industry ESG Thematic Report, 2023, published by Astra ESG Solutions

Environmental Perspective

The agriculture sector is witnessing a seismic shift with an increased focus on minimizing emissions, preventing deforestation and bolstering productivity. Climate-smart agriculture has become paramount to avoid or reduce GHG emissions, reflecting expectations from stakeholders that businesses should deliver not only profits & revenue but also ESG performance. Extreme weather events showed the repercussions of climate change on agriculture.

Farms are expected to count on bespoke solutions to foster their sustainability strategies. For instance, Argus Controls uses a proprietary control algorithm to automate the growing process and forecast specific needs, including watering, lighting and feeding cycles. With sustainable production gaining a stronghold, the North American cannabis cultivation and manufacturing experts unveiled Sustainable Cannabis Coalition (SCC) in January 2021 to propel sustainability practices in the cannabis industry.

Social Perspective

Farmers and investors are responding to the need for sustainable agricultural practices to underpin economic and nutrition livelihoods, employee safety & well-being and reinforce diversity, equity and inclusion. AGCO Corporation initiated the FOCUS 2.0 program with a 40-step blueprint to create a robust safety culture. It reduced its total case incident rate (TCIR) by 14% in 2022 vis-à-vis the preceding year, the company mentioned in the 2022 Sustainability Report.

The American agricultural machinery manufacturer underscored employee engagement through programs, including Voices. Predominantly in 2022, almost 20,000 employees shared their voices in the annual Voices Survey. The company noted that its engagement score stood at 69% and is on course to take the tally to the 75% target by 2025. The U.S.-based company collaborated with the Faça Um Bem Incrível" (Make a Great Good) social project in Brazil that redirects fresh produce which would otherwise go to waste. The initiative fostered over 150 rural workers and 20 local food producers.

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

Governance Perspective

The need for the Board to provide sustainability strategy, goals and policies has fueled the significance of sound governance, transparency, ethics & compliance, diversity and good corporate behavior. For instance, Cargill formed an ESG Committee to underscore governance and accountability. It has teamed up with the World Economic Forum, the World Business Council for Sustainable Development (WBCSD) and Tropical Forest Alliance (TFA) to undergird operation and stakeholders' engagement.

The company has strengthened its ethics & compliance portfolio to set a foundation for sustainable growth. Cargill completed over 80,000 hours of mandatory online compliance training in 2022 on bribery and corruption, monitoring government donations & gifts and entertainment expenses. In January 2022, the company celebrated Ethics Week to foster employee ethics.

ESG investors expect farmers to overcome hurdles to adopt smart farming strategies. Accordingly, organic and inorganic strategies will be pronounced in the near terms. For instance, farmers in Sri Lanka augmented land under irrigation by 15% during the dry season, largely due to their training in the alternate wetting and drying (AWD) techniques. These dynamics validate Grand View Research's valuation of the global smart agriculture market at USD 14.44 billion in 2021 which could witness a double-digit CAGR of 10.8% 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