Green Packaging and ESG: A Winning Combination for Sustainable Businesses

Fast-moving consumer goods (FMCG) companies, packaging manufacturers and retailers have taken a giant stride towards a circular economy with investments in green packaging. Consumers’ preferences for sustainable packaging and the repercussions of plastics on the environment have prompted governing bodies to look beyond plastic bans.

Spain introduced Plastic Tax (a special tax on non-reusable plastic packaging) by Law 7/2022 to promote a circular economy and manage waste and contaminated soil; the law came into force on January 1, 2023. In August 2021, the Whitehouse introduced REDUCE (Rewarding Efforts to Decrease Unrecycled Contaminants in Ecosystems) Act to encourage recycling and impose a USD 0.10 per pound fee on virgin plastic resins used for the single-use product, rising up to USD 0.20 per pound in 2024.

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

With single-use plastic becoming ubiquitous, the burden on the environment and society has become a grave concern. So much so that green packaging has become synonymous with biodegradability and instrumental in fostering corporate social responsibility. That said, several companies have received the flak for greenshifting—a part of greenwashing wherein brands shift blame from themselves to consumers in a way that would not hold specific companies accountable for the environmental crisis. Several pundits, including Heather Rogers, claimed that Coca-Cola and companies, such as Dixie Cup launched—Keep America Beautiful—aimed at making Americans believe that it was their personal responsibility to keep the environment clean. 

Environmental claims are pervasive in Europe, too. The Guardian cited a Changing Markets Foundation report, noting that P&G ‘s Head and Shoulders shampoo bottles—dyed blue—cannot be recycled further, although these products are touted as being made of beach plastic. Meanwhile, P&G stated that the pack was recyclable and is no longer available in the U.K. While consumer protection laws are in place, better ESG performance has become invaluable for brands to avoid landfills and bolster share value. 

Key Companies in this theme

    • Amcor

    • DuPont

    • Mondi

    • Sealed Air

    • DS Smith

Amcor Invests in Responsible Packaging to Enhance Environmental Profile

Sustainable packaging solutions have received global traction to facilitate a circular economy. Recycled-ready products can be the mainstay for brands striving to keep abreast of ESG trends. For instance, Amcor is gearing up for 30% recycled material across its portfolio by 2030, up from the previous target of 10% by 2025. In January 2022, the company committed to establishing science-based targets and attaining net-zero emissions by 2050. It is contemplating augmenting recycling value for PET Thermoformed Trays; boosting value in PET recycling; using on-pack recycling instruction; minimizing virgin plastic use in B2B plastic packaging; and bolstering recycling value in rigid HDPE and PP. 

Amcor has forayed its penetration in Latin America to ramp up “inclusive and economically viable recycled projects.” It joined forces with Delterra in Olavarría, Argentina to fund the project boosting recycling, waste collection and composting. Olavarría could recover 2,000 metric tons of plastic annually by 2024. It is worth mentioning that the brand is poised to make all packaging recyclable, reusable or compostable by 2025. In FY 2022, Amcor Flexibles Latin America teamed up with a customer to create an innovative compostable packaging solution for paper-made butter and margarine. 

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

Mondi Navigates Social Initiatives to Enhance Sustainability Solutions

The need for positive social practices has prompted industry players to inject funds into diversity, health & well-being, and community welfare and play a part in overcoming sustainability challenges. Mondi expanded its footprint in Africa through investments in corporate social projects and offering sustainability training opportunities in South Africa. Besides, in 2022, it poured €8.9 million (approximately USD 9.8 million) into social initiatives to underpin environmental protection, health, education, infrastructure and local enterprise. Amidst Russia’s invasion of Ukraine, the packaging and paper group donated €2 million (roughly USD 2.2 million) to the World Food Program for humanitarian causes. 

Mondi furthered personal development opportunities, mental health and diversity and inclusion. The company tested Mental Wellbeing Index for employee surveys across different locations to emphasize safety, mental health, inclusive behavior and climate action. Additionally, in 2022, approximately 31% of all employees participated in the online Performance and Development Review Process. 

DS Smith Reinforces Good Corporate Governance

The principles of sound corporate behavior, board diversity, transparency, ethics & compliance and anti-corruption have become paramount to underscore brand position. DS Smith is aiming to engage 100% of its people on the circular economy and is optimistic about removing 1 billion pieces of problem plastics from supermarkets by 2025. Bullish corporate policies could complement buoyant strategies to achieve the target and spearhead the ESG rankings. The company has formed a circular business around sustainable packaging. 

The prevalence of bottlenecks, such as bribery and corruption, has compelled DS Smith to introduce strict anti-bribery and anti-corruption policies. The company has exhorted a zero-tolerance approach to bribery and corruption and urged to conduct third-party background checks by reviewing third-party’s likely business partners; and the payment terms, among others. The company also prepares a companion report, along with the sustainability report annually, to provide a deep-dive into the quantitative detail of ESG and sustainability performance across non-financial indicators. 

At a time when sustainable packaging could bring a green revolution, forward-looking companies are expected to inject funds into ESG strategies. For instance, in March 2023, DuPont joined forces with the members of the Water Resilience Coalition to infuse USD 3 million to boost access to safe water and sanitation. The high-impact investment validates Grand View Research’s projection of the global green packaging market at 6.1% CAGR from 2020 through 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

ESG Initiatives in the Online Grocery Sector

Grocery CEOs, consumers and grocers envisage online shopping as the next big thing, spurred by technological advancements and greater convenience. The COVID-19 onslaught was partly attributed to online grocery flooding the market. While leading players and startups jumped on the bandwagon, ESG watchdogs were wary of the sustainable impact the industry would have on the planet. Stakeholders are expected to harness gender equality, fair wages, waste reduction, responsible sourcing of farm produce and sound corporate governance. 

The ease of browsing, getting items ticked off and quick delivery have been a revelation—a delivery service delivering to multiple homes has negated the need to drive to the store. More than 17 million metric tons of CO2 pollution are attributed to weekly household trips to the grocery store, a report cited by the U.S. EPA claimed. Incumbent players have furthered investments in electric vehicles (EVs) to offset greenhouse gas emissions. In April 2022, India-based Swiggy, a food delivery company, joined forces with EVIFY to enable grocery and food delivery through EVs in Surat, Gujarat. 

Industry leaders are likely to emphasize upstream transportation (farm-to-retail) and foster last-mile transportation—pushing for deliveries and offsetting personal trips. Centralized grocery delivery services and fulfillment centers have brought a paradigm shift in minimizing GHG emissions and food loss. State-of-the-art technologies, including predictive analytics, can provide the silver bullet to prevent pilferage and streamline sourcing. Besides, boosting access to affordable and high-quality fresh food, along with the focus on diversity, integrity and transparency, will remain instrumental for a circular economy. 

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

Kroger and BigBasket Invest in Climate Strategy for a Sustainable Future

The online retail boom and an emphasis on speed and user experience—instant delivery—have disrupted e-commerce business models. Brands with sustainability strategies appeared resilient during the COVID-19 outbreak, banking on online shopping to conserve raw materials and minimize GHG emissions. Kroger is poised to establish a new Scope 3 goal for supply chain emissions reduction in line with its Science Based Targets initiative (SBTi) commitment. The American retail giant has set 2030 sustainable packaging goals, such as using 100% recyclable, reusable and/or compostable packaging. 

Amidst emerging climate risks and opportunities, Kroger inferred using infrared refrigerant leak-detection technology in 2,000 stores. Meanwhile, in 2021, Bigbasket, a TATA Enterprise-owned online grocery retailer, teamed up with New Leaf Dynamic to install a biomass-powered chiller that can save 186 tons of CO2 annually. The Indian giant cited in its Green Report 2022 that it produced 5,457,000 kWh of solar power (reducing 1,670 tons of GHG emissions) in 2022 and 5,458 electric delivery vehicles helped minimize 7012 tons of CO2 emissions during the period. 

Amazon Fresh Navigates Changing Social Landscape 

Amidst rampant layoffs and the prevalence of workplace injuries, grocery warehouses and fulfillment centers have prioritized the social pillar. In January 2023, Amazon announced over 18,000 job cuts, denting workers across industry verticals, including grocery stores. People employed as supply chain managers, program managers, software engineers and store designers bore the brunt in online grocery delivery and fresh stores businesses. That said, the American behemoth inferred in May 2023 that it had poured CDN 25 billion since 2010 in its Canadian operations, including job creation and establishment of data centers and fulfillment centers. In September 2021, the U.S. giant committed USD 1.2 billion to offer 300,000 employees education and skills training programs till 2025. 

Incumbent players have upped investments to make the workplace safer and foster a healthy environment. Amazon has a team of health coordinators, physiotherapists and advisors. The occupational doctors perform medical checks and report trends in major risk areas. 

The U.S. e-commerce company has augmented diversity, equity and inclusion (DEI) efforts to underscore its sustainability quotient. In 2021, it committed to a 30% rise year over year in hiring U.S. black employees in level 4 through level 7 from the preceding year’s hiring. The multinational company warrants 100% of employees to take inclusion training. 

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

Governance Key for Relentless Sustainable Goals of Rakuten and Walmart

Sound corporate behavior is second to none for an agile business process and an inclusive global system that complements ethical business practices. Rakuten creates a list of ESG themes with the assistance of external experts and refers to the UN Sustainable Development Goals and Sustainability Accounting Standards Board (SASB) Materiality Map.

The Japanese company has appointed Chief Compliance Officer (CCO) to undergird compliance management. It has banked on a risk-based approach to define high-risk issues and implement measures, such as prevention of money laundering and terrorist financing; prohibition of bribery and corruption; and adherence to competition, antitrust and other related laws. 

Rakuten has propelled board diversity—outside directors account for 58.3% of the BoD, while 25% are foreign directors. Meanwhile, Walmart expects Board members to disclose their race/ethnicity and gender annually. Its board had 27% women and 18% directors who are racially/ethnically diverse (as of April 2023). 

Millennials and Gen Z want the e-commerce sector to foster social contributions, operate in a responsible supply chain and bolster transparency. ESG reporting could be pronounced, prompting online incumbents to further their investments in sustainability. Grand View Research anticipates the global online grocery market size to depict upward growth through 2030. Investments in the circular economy can create momentum and be a differentiating factor in an ever-growing competition in the online grocery business. 

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 Bioplastics Industry

Bioplastics have come on the horizon to boost sustainability amidst plunging reserves of fossil fuels. Plastics based on renewable resources have fostered sustainability as environmental concerns surge with the growing prevalence of non-biodegradable plastics in landfills. Industry players are prioritizing environmental, social and governance impacts of their operations and exhibiting efforts to minimize their negative effects in these facets. A soaring number of companies are exhorting their commitment to sustainability through ESG reports. Predominantly, in December 2021, the United Nations recommended bioplastics as a sustainable alternative to non-biodegradable conventional polymers.

Plastic manufacturers are expected to count on recommended products from FAO, including fishing gear, mulch films, polymer-coated fertilizers, plant support twines, tree guards and shelters and pesticide-impregnated fruit protection bags. In essence, biodegradable mulch films can be incorporated into the soil after harvest, suggesting its influence in boosting sustainability. The global push for a circular economy has put the spotlight on bioplastic manufacturers.

Key Companies in this theme

    • TEIJIN LIMITED

    • TORAY INDUSTRIES, INC.

    • Toyota Tsusho Corporation

    • Avantium

    • Solvay

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

Bolstering Carbon Neutrality to Foster Environmental Pillar

Business entities are responding to trends, including technological advancements and lack of resources, with investments in sustainability. Biodegradable solutions have become invaluable with the unprecedented impact of climate change on global warming. According to the Intergovernmental Panel on Climate Change (IPCC) report, emissions are required to be minimized by a minimum of 43% by 2030 (vis-à-vis 2019 levels) and at least 60% by 2035 to keep global warming within the 1.5°C limit. The UNFCCC Climate Champions assert that the net-zero transition would need USD 125 trillion by 2050 in climate investments.

Companies, such as Toray have upped their efforts to be carbon neutral by 2050. The company is committed to achieving the target by minimizing GHG in its business operations and launching carbon recycling technologies. The Japan-based company is minimizing product weight to reduce fuel consumption and explore renewable energies. Energy consumption from renewable energy sources at Toray Industries was pegged at 1.2 million gigajoules in FY 2020. The green transition is poised to usher in bullish ESG strategies in the near term.

Emphasis on Mental Health to Underscore Social Commitment

With the circular economy bringing tailwinds across business verticals, employee safety & well-being, diversity and a human-centered approach have garnered immense traction. For instance, Solvay has created a flexible working framework in its operations globally—over 7,500 employees worked in hybrid models in 2022. The company also created a November 2022 Pulse survey on well-being and inclusion.

The repercussions of the COVID-19 pandemic prompted industry leaders to prioritize mental health management and breakdown silos. The company infers it trained around 1,150 employees in well-being webinars and workshops. It also introduced the Employee Assistance Program to provide free psychological support, life coaching, mindfulness and well-being advice for all employees and members of their households. In July 2022, amidst high inflation, the Belgium-based company announced a €9.5 million (roughly USD 10.4 million) infusion for the affected employees in high-inflation countries not protected by national schemes. These financial incentives are slated to drive innovation, performance and better risk management.

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

Sound Corporate Governance to Stay Ahead of the Curve

Forward-looking companies have exhibited a commitment to high ethical standards, transparency and fairness to bolster brand positioning and meet social and environmental goals. Business management and decision-makers are banking on sound corporate governance to take their bioplastic initiatives to new heights. To illustrate, Toyota Tsusho is gearing up to underpin its speed and repertoire of decision-making through the establishment of the chief compliance officer (CCO), chief financial officer (CFO), chief strategy officer (CSO) and chief digital & technology officer (CDTO) positions.

The board of directors has become instrumental to enhance the corporate value and supervise the execution of duties by directors. So much so that four are outside directors at Toyota Tsusho, while the non-executive director serves as the Board chairman. In a bid to bolster corporate governance, its company-wide meeting system leverages directors and executive officers to assess countermeasures to deal with issues impacting the company.

The competitive landscape suggests that well-established and emerging players could inject funds into organic and inorganic strategies to tap into the global market. Companies will continue prioritizing environmental pillars, social justice, equity, diversity and inclusion to propel their ESG goals. In January 2022, Avantium reportedly built the first bioplastic plant in Dutch Delfzijl. Establishing the commercial plant would produce 5 kilotons of FDCA (raw material for PEF) per year. These buoyant initiatives are a testament to the fact that Grand View Research valued the global bioplastics market size at USD 10.2 billion in 2021 and could depict a 17.1% CAGR from 2022 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

Investing in Electric Scooters Industry: The ESG Perspective

Electric scooters have witnessed a notable journey from risky tech novelty to a green travel solution. The development of more sustainable, safe, affordable, convenient and efficient urban transportation solutions will see consumers transitioning to e-scooters. Electric mobility has witnessed profound traction to encourage environmentally friendly companies to invest in ESG initiatives. An increased commitment to a cleaner planet, sound corporate governance, safety & resilience and social impact will steer EV adoption.

Consumers, think tanks, independent researchers and media have furthered their focus on lightweight electric bikes that can propel carbon neutrality. With air quality, noise and pollution emerging as global concerns, stakeholders could vouch for electric scooters. There are tailwinds galore: accessibility to mobility, convenience and lower environmental impact if decarbonized or renewable energy is used.

Amidst the sustainable aspects of EVs, e-scooter manufacturers have received flak for greenhouse gas emissions during the manufacturing process, moving and managing them. According to a 2019 study from researchers at North Carolina University, e-scooters emit more GHG emissions per mile than traveling by bus, moped, bicycle or on foot. As such, increasing e-scooters' lifespan could be the way forward. Furthermore, e-bikes can be an invaluable addition to commuters to enhance a shared model, and for manufacturers to foster recyclability, improve quality of life and bolster safety.

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

Environmental Perspective

Lately, battery-swapping technology has gained ground to refuel e-scooters and contribute to a sustainable environment. Industry leaders assert that using swappable batteries could help minimize emissions. To illustrate, in February 2023, Gogoro Inc. launched its Impact Report illustrating how battery swapping has become paramount for sustainable transportation. The swapping system can integrate renewable power into electricity grids with demand response and virtual power programs. It has introduced Swap & Go, which offers up to 67% lower GHG emission per passenger kilometer. Besides, in 2022, the Taiwanese company started purchasing renewable energy to further minimize the amount of scope 2 emissions caused by retail operations, manufacturing and battery swapping services. Concrete plans to foster renewable energy, quality maintenance & repairs can underpin sustainable strategies.

Social Perspective

Stakeholders have prioritized e-bikes to offset noise pollution, efficiently use space & preserve public space, safety and foster diversity. According to the European Environment Agency (EEA), over 100 million people are exposed to harmful levels in the EEA-33 member countries, with road traffic becoming infamous as the most prevalent source of environmental noise. Moreover, noise pollution is associated with increased depression, stress and impaired learning abilities. Leaders are expected to promote silent electric mobility to negate noise pollution. Predominantly, diversity has become pivotal to propelling the social profile. According to the VOI ESG Sustainability Statement 2019-2020, 50 nationalities represent its 500 employees from diverse profiles and skill sets. The mobility company has also introduced incentivized parking zones to foster responsible parking. These trends indicate the global electric scooters industry is poised to gain ground as companies strive to unlock the social benefits of EVs.

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

Governance Perspective

Unlocking the compelling impact of e-scooters will need transparency, good corporate behavior, ethics & compliance, transparency and board diversity. At a time when sustainable development has become a benchmark to measure a company's value and success, industry players have ramped up efforts to introduce ESG policies. For instance, in October 2021, Yadea formed an ESG Committee to foster green transformation and modern governance. It has also exhibited concerted efforts toward the disclosure of ESG policies. The company is counting on regular reporting to update the public and investors on green initiatives. The Shanghai-based company is well-positioned to foster diversity and maintain a high standard of corporate governance. Yadea has eight directors, including four independent non-executive directors and one non-executive director, according to its Annual Report 2021.

Investors, entrepreneurs and other stakeholders expect bullish policies, consumer acceptance, technology advancements in battery technology, increased lifespan of scooters, renewable energy and improvement in the charging infrastructure to fuel the adoption of two- and three-wheel EVs. In doing so, leading players will bolster their ESG goals and focus on micromobility. To illustrate, Halfords suggests it collected and recycled 4,562kg of used domestic batteries in the U.K. stores in FY 2020. With the recycling efforts becoming pronounced, the marketplace is slated to witness investment galore. The electric scooters market is expected to witness a robust CAGR of 7.8% 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

Are Digital Payments Green?

Financial institutions and technology vendors have repurposed their strategies on digital payments—more so—on the back of a dip in physical cash. Add to it the technological innovations that have leveraged online banking. Cash may still be the king; electronic payment, however, is giving a run for the money. An exponential rise in smartphone usage, surging internet penetration and growth in e-commerce have made electronic payment a force to reckon with. Meanwhile, the luxury of contactless and fast payments comes with caveats—environmental, social and governance challenges. 

Amidst climate change, a volatile economy and the Russia-Ukraine war, society, businesses and governments have exhibited a strong commitment to foster an inclusive workplace, accentuate low-carbon energy solutions, bolster transparency and create long-term value. Several financial institutions have started carbon offset programs, providing rewards and loyalty points. In September 2021, Ascenda joined forces with Patch to enable consumers to redeem their rewards points for carbon offsets, helping reduce and eliminate GHG emissions. 

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

PayPal Propels Science-Based Targets (SBTs)

Carbon footprints from the digital payment ecosystem have prompted financial institutions to up their sustainable strategies. A study from Cambridge inferred that Bitcoin used 80% more energy consumption in 2021 compared to the preceding year. Digital wallets reportedly consume less energy vis-à-vis cryptocurrencies, offering opportunities galore. In March 2022, Helpful rolled out digital wallets that it claims can save up to 80% of the CO2 produced from payment transactions. 

The potential risks posed by adverse weather conditions on facilities have encouraged companies, such as PayPal to underscore science-based GHG emission reduction targets. The Fintech player achieved 100% renewable energy sourcing for its data centers in 2021, while it reached 90% total energy use in 2022. The American giant formed science-based emission reduction targets—to minimize absolute operational GHG emissions by 25% by 2025. In 2022, the company set the goal to engage 75% of its suppliers (in terms of spending) to SBTs by 2025 and Its IT asset management team retired 338 metric tons of IT hardware across the data center services.

Global Payments Underscores Philanthropic Activities

The social criterion emphasizes a shifting business environment where companies are gearing up to enhance workplace diversity, financial literacy, social equity and health & wellness. In 2021, Global Payments Plano, Texas office teamed up with the National Breast Cancer Foundation (NBCF) and collected USD 1,600 for charity. Besides, the Lindon, Utah team formed a canned food drive to donate 2,500 cans to a local food bank. Taking the philanthropic work further, the company doled out USD 5 million in 2021 to underpin several organizations, such as Red Cross, the American Heart Association, UNCF, Leukemia & Lymphoma Society, Susan G. Komen and Mercer Medical School.

To reinforce financial literacy and economic inclusion, the Fintech company offers around 4 million (especially small and medium-sized businesses) locations globally with digital commerce solutions, allowing acceptance of more than 140 payment methods. Meanwhile, the U.S.-based company has propelled its DEI strategies to augment female representation to 47% and boost the number of people of color to 39% by 2025. 

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

JP Morgan Embeds Transparency and Accountability

Corporate governance has become a value proposition to impel ethics & compliance, board diversity, transparent work culture, independence and anti-corruption activities. In 2021, directors at JP Morgan were offered education on DEI, cybersecurity, its climate risk management framework and technology. The Board in the financial service company has ramped up corporate culture and values, boosting diversity in leadership positions. As of April 2022, Out of ten, there were four women directors and one black director. Further, women accounted for 37% of seats on the Operating Committee (as of December 2021). 

While digital solutions have become invaluable in the economy, data privacy and cybersecurity threats have sent alarm bells to stakeholders. The Global Cybersecurity and Technology Controls organization analyzes changes in global threats and monitors JP Morgan’s operations. In 2022, the company was involved in policy issues, such as software bills of materials, evolving U.S. National Institute of Standards and Technology (NIST), zero trust and notification. The need to protect the global financial system and underpinning cybersecurity will help companies achieve ESG goals. 

Fintech players have expedited their strategies to undergird climate solutions and build financial confidence among underserved and vulnerable communities. In the 2021-2022 ESG Report, American Express announced an infusion of USD 3 billion toward DEI initiatives and underrepresented groups through 2025. During the Earth Month of 2022, the financial service company asserted that at least 70% recycled or reclaimed plastic would be used to make most plastic cards by 2024. The rising footprint of contactless- and card payments against the backdrop of the COVID-19 pandemic has made electronic payment the next big thing. The global digital payments market size stood at USD 68.61 billion in 2021 and will expand at a CAGR of 20.5% between 2022 and 2030, reports Grand View Research. 

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

Key ESG Trends Shaping The Future Of Air Conditioning Systems Industry

Industry leaders are embracing ESG and investing in diversity, governance and social contribution to foster air conditioning systems. Stakeholders are designing air conditions to make air clean, build a healthy workplace, boost environmental protection, implement measures for climate change and contribute to local communities. Burgeoning urbanization, thriving living standards and scorching heat have fuelled the demand for AC units, spurring the need for ESG rankings and goals.

The onslaught of the COVID-19 outbreak expedited the need for air purification and ventilation, encouraging companies to step up their efforts toward decarbonization. Companies are banking on social missions to curb global warming and offer a reliable and safe air environment. Moreover, the global push for net-zero energy buildings has encouraged stakeholders to invest in ESG metrics.

It is worth mentioning that air conditioners consume more electricity than other home appliances. Demand for air conditioners will continue to gain uptick with soaring temperatures and prevalent heatwaves. According to the IEA, the global demand for space cooling will witness a three-fold rise by 2050. ESG will witness profound traction to negate the effects of scorching heat and propel the penetration of environmentally friendly ACs.

Discover more regarding the practices and strategies being implemented by industry participants in the Air Conditioning Systems Industry ESG Thematic Report, 2023, published by Astra ESG Solutions

Key Companies in this theme

    • Daikin Industries, Ltd.

    • Mitsubishi Electric Trane HVAC US LLC

    • Hitachi Ltd

    • Carrier

    • Whirlpool Corporation

    • Haier Group

Environmental Perspective

Amidst a surge in demand for AC, stockholders, shareholders and other stakeholders are gearing up to minimize the amount of energy consumption and GHG emissions. Blue Frontier, a sustainable air conditioning technology provider, suggests that AC contributes 5% of global greenhouse gas emissions. Leading players have furthered their inclination toward carbon neutrality to achieve business growth that complements environmental performance. To illustrate, Daikin has formed a "Challenge to achieve carbon neutrality" theme; and has upped efforts to attain net zero greenhouse gas emissions by 2050 (in line with the Environmental Vision 2050). The company claims to have cut net emissions by 10% through the sale of energy efficient products. The Japanese company is contemplating exploring AI and IoT to provide healthy, safe air environments. Developing a roadmap to reducing GHG emissions and similar bullish targets will bolster the brand position in the global landscape.

Social Perspective

Brands have emphasized employee well-being, health & safety and diversity, equity and inclusion (DEI) to unlock sustainable growth potentials. Notably, Hitachi aims for a 30% ratio for female and non-Japanese Executive and corporate officers by 2030. It has formed DEI promotion leaders in each region to expedite diversity. Companies are expected to undergird training programs to enhance individual skills, capabilities and specialties. Moreover, the spotlight on work-life management has become pronounced following the gray areas uncovered by the COVID-19 pandemic across business verticals. Hitachi is doing away with overwork and long working hours, fostering nursing- and child care. It has also strengthened health & safety measures by conducting occupational health & safety risk assessments. Besides, around 40.3% of employees have received special health guidance, alluding to a buoyant initiative to boost employee health.

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

Governance Perspective

The trend for sustainable business growth with fairness, honor, corporate behavior, sound corporate governance, ethics & compliance and transparency has become indispensable. Well-established players have furthered their emphasis on board diversity as it reflects differences in professional experiences, viewpoints, skills, educational backgrounds, national origin, race, gender and age. In essence, 12 out of 13 directors at Whirlpool are independent and each of the board's four committees comprises independent directors. Prominently, 33% of the independent directors are women, while 25% belong to ethnic/racial minorities. In 2021, the Board, with external advisors, partook in an education session on ESG trends. It is worth noting that the committees of the Board oversee the facets of ESG risk monitoring and implementation.

The competitive landscape indicates an increased emphasis on organic and inorganic strategies to gain a stronghold in the competitive environment. Industry leaders are expected to fulfill their responsibilities toward society, planet and foster corporate value with an investment in a sustainable supply chain. To illustrate, in July 2022, Blue Frontier announced an infusion of USD 20 million in Series A funding to underpin the goal of eradicating billions of tons of GHG emissions. With cooling poised to overtake heating demand, companies are likely to introduce AC that is sustainable, efficient and affordable, along with reduced energy storage cost. The global air conditioning systems market could observe around 6.2% 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

The Future of Solar Inverter Industry: ESG Trends

The global push for green initiatives and the energy crisis fueled by the Russia-Ukraine war have spurred the solar inverter industry growth. Implementation of ESG strategy has become pronounced to help companies update and assess their goals. Investors prioritize ESG criteria to screen possible investments and it helps companies build trust with stakeholders and foster a sustainability portfolio. Key players have exhibited increased traction for renewable energy technologies and net zero products to provide low-carbon power generation solutions at a reduced cost.

Solar cell manufacturing is resource intensive and warrants a significant amount of industrial material and water. Besides, the manufacturing process may involve unsustainable mining practices and toxic waste. The issue of labor practices has also garnered headlines. The 2021 International Labor Organization (ILO) report suggests that 50 million people are in modern slavery every day. Moreover, the Credit Suisse Global Wealth Report claimed the world’s richest 1 percent—those with over USD 1 million— own 45.8 percent of the world’s wealth. Stakeholders demand ESG discipline from companies, their value chain, regulators, investors and consumers. 

Key Players:

• ABB

• SMA Solar Technology AG

• SunPower

• Delta Electronics Inc.

• Siemens Energy

• OMRON Corporation

• Eaton

• Emerson Electric Co.

Environmental Perspective

Enterprises and organizations with sustainable policies have exhibited increased inclination for the environmental aspect. The World Economic Forum ranked environmental risks as the five most critical long-term threats in its Global Risks Report 2022. Some factors, such as extreme weather, biodiversity loss and climate action failure, have made solar inverters promising investments for stakeholders with a focus on ESG portfolios. The unprecedented growth of digitization and the shift from fossil fuels to renewables have encouraged leading players to boost the environment. For instance, Eaton uses power management technologies and services to enhance the quality of life and the environment. The company aims to reduce GHG emissions by 50% from its operations by 2030 from 2018 levels. The multinational power management company asserts its 94% of manufacturing waste in 2021 was diverted away from landfills through recycling, reuse, waste-to-energy or composting. The company alluded to an infusion of over USD 3 billion in sustainability R&D over the next ten years in its 2030 Sustainability Goals. 

Forward-looking players are leveraging their research and development activities and renewable energy to provide reliable, safe and efficient solutions to expedite growth in the energy transition. To illustrate, Delta Electronics is committed to using 100% renewable electricity and attaining carbon neutrality in the global supply chain by 2030. Meanwhile, in 2021, OMRON announced pouring 257 million yen (roughly USD 1.8 million) to minimize the environmental influence of its business activities. The company, having set the OMRON Carbon Zero project, contemplates minimizing emissions by over 30% by 2050. Besides, in March 2021, ABB announced it achieved the 5GW milestone of providing solar plant automation solutions in India. Stakeholders are likely to help customers avoid emissions through the modernization of grids, a smarter built environment and sustainable transport. 

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

Social Perspective

ESG standards have become paramount for viable working conditions, employee and stakeholder wellness and equal opportunities. Eaton has set up the Compensation and Organization Committee to oversee and review matters pertaining to social aspects, such as training and development, employee engagement, pay equity, inclusion and diversity and culture. Furthermore, Siemens aims for a 30% female share in top management by 2025. It vies for double digital learning hours by 2025 and a 30% enhancement in its globally aggregated LTIFR by 2025. The company poured €318 million (approximately USD 327 million) into employee education and training in 2021.

Meanwhile, Delta joined forces with the Taiwan Architecture & Building Center in Well architecture course in 2021 to offer innovative courses. The company adopted the “Influencing 50, Embracing 50” slogan to boost teamwork and face future challenges in its 50th anniversary in 2021. Prominently, Delta Electronics was in the pole position in overall social performance with almost 80% score. Stakeholders are also poised to emphasize fun games, contests and music to bolster the identity and connection among global employees, products and the brand. Leading players are slated to prioritize social pillar in the ensuing period to tap into the global landscape and bolster their brand position.

Governance Perspective

The need to achieve sustainability goals through robust corporate governance, underpinning social progress and balancing stakeholders' interests has become instrumental to staying ahead of the curve. The demand for, including but not limited to, transparency, board diversity and disclosure has furthered encouraged stakeholders to focus on the governance portfolio. According to Eaton TCFD disclosure, its board comprises 12 members—one-third are U.S. minorities and another one-third are women. The company’s governance committee is tasked to prioritize matters regarding the governance and environmental pillars of ESG. While Eaton has exhibited a sound governance system, Siemens is at the helm with over 90% score. The Supervisory Board at Siemens set a bullish target stating that at least 25% of the managing board position would be held by women until June 30th 2022. The company also augmented the external sustainability audits. According to its Sustainability Report 2021, Siemens conducted 394 sustainability audits in 2021, up from 269 audits in the preceding fiscal year. 

Emerson has upped its focus on corporate governance to foster diversity, equity, inclusion and performance-based ESG goals. To put this into perspective, 45% of Directors are persons of color or women, while 60% of the Office of the Chief Executive is diverse. The company has exhibited an increased focus on anti-corruption controls and other compliance factors, including conflict of interest, ethics allegations and data privacy. Emerson asserted in its ESG report that around 61,000 employees undertook anti-corruption training over the past three years. It alluded to its engagement with a third party to review its Ethics and Compliance program, which is in line with the Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework and the U.S. Department of Justice. 

An unprecedented surge in the demand for renewable energy, along with the rising footfall of solar power PV installation, has augured growth. The global solar inverter market size was pegged at USD 9.31 billion in 2021 and will observe a 6.2% CAGR from 2022 to 2030. Leading players are expected to expand their penetration across the Asia Pacific as China is poised to provide promising opportunities with a focus on minimizing solar power costs and bolstering incentives. Well-established companies are expected to prioritize organic and inorganic growth strategies. To illustrate, in May 2022, Eaton announced the acquisition of a 50% stake in Jiangsu Huineng Electric Co., Ltd.’s circuit breaker portfolio. Meanwhile, in February 2022, Siemens and Desert Technologies collaborated to roll out and infuse funds into solar and smart infrastructure in the Middle East, Africa and Asia. The project could have the aggregate capacity of over 1 GW and will offer reliable, clean and affordable energy in under-served areas.

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