Textile Industry ESG Insights: Unveiling Sustainable Future

Textile is at the vanguard position as innovators and industry leaders navigate sustainability challenges and opportunities. After more than a decade of gradual growth in the use of the term environmental, social and governance (ESG) from its inception in 2006, traction has zoomed dramatically over the past few years. Assessing socially responsible investment has become instrumental for textile manufacturers and investment managers to quantify the business value of sustainability risks and opportunities. In July 2023, the European Environment Agency inferred that textile consumption in the EU led to a carbon footprint of around 270 kg (per average person). 

The textile industry is infamous for being the major source of waste and pollution, aggravated by overproduction and overconsumption of clothes and poor working conditions. It is high time regulators and businesses capitalize on the prevailing opportunities stemming from the circular economy.  

Concerted efforts toward integrating ESG scope in manufacturing, sourcing, processing, packaging, and fabric care can provide the silver bullet amidst the release of harmful effluents. The urgency for decisions and actions to underpin energy management, water management, sustainable product development, waste reduction, employee health & wellbeing, labor management, social opportunity, board diversity and business ethics can steer manufacturers’ trajectory towards a circular economy. 

Investors and other stakeholders are taking significant strides against the backdrop of the unprecedented health and economic impact of the COVID-19 pandemic. Commitment to ethical production, transparency and sourcing of raw materials could be pronounced in the ensuing period. 

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

Solvay Becomes Future-Ready with Environmental Footprint Reduction

At a time when watchdogs, such as the Intergovernmental Panel on Climate Change (IPCC), have warned of surging global temperatures, leading companies are leaving no stone unturned to surmount the prevailing challenges and environmental threats. To illustrate, Solvay is contemplating minimizing the environmental impact of its operations by 2030 (at a planetary scale). The chemical company reportedly has 59 emission reduction projects and it has raised the 2030 GHG emissions reduction target to 30%. Furthermore, the Belgian company has an audacious carbon neutrality target for scope 1 & 2 before 2050, while the company has revved up efforts toward net zero emissions—with a target to cut scope 3 GHG emissions by 24% by 2030. 

DBL Group Prioritizes Workforce Culture and Community

Incumbent players are reflecting and fostering diversity and a culture of meritocracy & inclusivity, making the diverse spectrum of identities, experiences and perspectives a force to reckon with in the work culture. Macroeconomic and sociopolitical challenges have furthered the need for assessment of labor practices and grievance mechanisms. For instance, DBL Group has reinforced efforts on the Tree Plantation Program and emphasized the Zero Discharge of Hazardous Chemicals Program to enhance the quality of wastewater discharged through the Effluent Treatment Plants (ETPs), minimizing the negative impact on the community. 

The Bangladesh-based company has a bullish target of having 20% female employees at the management level by 2025—it claims to be one of the fifteen companies listed by the UN Global Compact that are officially involved in Target Gender Equality, contributing to Sustainable Development Goal 5.5.

INVISTA Invests in Corporate Governance

Textile behemoths, regulators and consumers have furthered their focus on business ethics, anti-competitive practices, tax transparency, board pay, corruption & instability, financial system instability and board diversity. Predominantly, INVISTA has emphasized compliance and accountability, while its code of conduct places responsibility to conduct commercial activity with integrity and lawfully. Moreover, it has internal processes to identify, assess, resolve and manage risks that may stem from the interpretation of tax law or the nature of compliance obligations. The company has also fostered its efforts to resolve conflict of interest, suggesting reporting to compliance and ethics resources or a supervisor. 

Whether it is bridging a gender gap, propelling a vibrant workforce, measuring sustainability performance, or tracking progress, the use of ESG tools and software will become second to none to attain sustainability goals and enhance workflow. For instance, streamlining internal audit processes across business units can be the backbone of a robust company structure. 

Right Time to be the Innovators and not Laggards

Forward-thinking organizations are gearing up to be the leaders within the industry—a commitment to transparency, sourcing of cotton and fibers and efforts on ethical production—may place them cut above the rest. Textile companies and brands are injecting funds into sustainability and innovations. The growth outlook appears to be robust. The global textile market size was pegged at USD 1,000 billion in 2020 and it is slated to expand at around 4.4% CAGR from 2021 to 2028. The projection alludes that the time is ripe for manufacturers, suppliers and other stakeholders to embrace ESG to stay ahead of the curve. 

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.

Need expert consultation around identifying, analyzing and creating a plan to mitigate ESG risks related to your business? Share your concerns and queries, we can help!

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ESG Initiatives in the Telecom Services Sector

Telecom operators are pushing to the limit to use environmental, social and governance (ESG) measures and reporting to attract investments. ESG integration into businesses can help stakeholders align with consumers’ demand for sustainable products, foster employee motivation, underpin biodiversity, minimize carbon emissions and reduce operational costs. Amidst industry leaders grappling with unpredictable challenges, socially responsible investing can be the silver lining to underpin workforce diversity, digital inclusion ventures, employee engagement and cut e-waste.

Notably, frameworks, such as the Task Force on Climate-Related Financial Disclosures (TCFD), Sustainability Accountability Standards Board (SASB) and Carbon Disclosure Project (CDP) have become paramount for ESG reporting that can serve as robust standards to satisfy regulators and boost access to capital. Companies are likely to invest in sustainability goals for strong governance, responsible business practices and effective leadership. Of late, regulators have shown an increased inclination for ESG as stakeholders foster their engagement with civil society, employees and customers.

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

Telecom services have been invaluable in propelling IoT services and applications amidst soaring carbon emissions. According to the International Finance Corporation, diesel generators power more than 90% of the one million off-grid and bad-grid sites, producing over 45 million tons of CO2 annually. Besides, the number of bad and off-grid telecommunications sites is likely to rise by 22% over the next ten years. In the midst of the cacophony, incumbent players are expected to emphasize renewable and net-zero greenhouse gas options.

Vodafone Relishes Shift towards Circular Economy

As stakeholders realize that business goals should not come at a cost to the environment, ESG performance has grabbed immense headlines. Since July 2021, Vodafone Group has powered its European markets with 100% renewable electricity (as per its 2023 TCFD report). The company is bullish on achieving net zero across entire operations by 2040. In a path towards net zero, the British company is committed to reaching net zero for its operations (scope 1 and 2) by 2030.

In April 2023, Vodafone joined forces with Citi Group and CDP to minimize scope 3 emissions. Vodafone and Citi Group unveiled plans to provide preferential supply chain financial rates for telecom suppliers exhibiting more sustainable operations, disclosing emissions data and scoring highly against environmental performance criteria.

Verizon Communications Bats for Inclusive Environment

Diversity across spectrums has become the talk of the town, while other social aspects, including health & safety, product safety & quality, privacy & data security, health & demographic risks, financial product safety and access to communication, continue to gain ground. Verizon has taken a giant leap in diversity and inclusion — 59.7% of employees are women or people of color in its U.S. workforce. Besides, it has injected around USD 55 billion with diverse suppliers over the last 10 years. In June 2023, Verizon-owned Visible rolled out the Pride Month campaign and contemplated donating USD 50,000 to SAGE, an organization advocating for older members of the LGBTQ+ community.

Innovators are taking a quantum leap towards providing healthcare benefits, including high-quality comprehensive medical, vision, dental and life insurance coverage to their employees. In 2022, Verizon poured USD 2.5 billion for around 460,000 employees, eligible retirees and their dependents, providing healthcare benefits and services. Additionally, recruiting diverse talent has long been the go-to strategy to stay ahead of the curve. The American company has teamed up with the National Academy Foundation to help high school students for college and careers in STEM.

Telefonica SA Prioritizes Good Governance

Telecom operators’ approach to leadership, transparency, internal controls, ethics and corporate governance can dictate the company’s trajectory in the ESG rankings. Operators can report on governance aspects, including whistle-blower schemes, tax strategies, executive pay, board diversity and data breaches. To illustrate, Telefonica claims it has provided training about the code of ethics to more than 91,000 professionals. The telecom behemoth reportedly performed over 18,000 audits on suppliers in 2022; it is contemplating representation of sustainability at 30–35% of the company’s financing in 2024.

As sustainability receives an impetus with the ESG integration, it is worth mentioning that the Sustainability and Quality Committee oversees the Responsible Business Plan implementation, while the Audit and Control Committee oversees specific aspects, including risk analysis, regulatory compliance and management process. In the Spanish company, independent directors and women account for 60% and 33% of the Board, respectively. Furthermore, the mobile network provider asserts there were no confirmed cases of corruption in 2022 and the preceding year.

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

ESG Creating Value for Stakeholders

The rising recognition of ESG in investment and business decision-making has leveraged telecom service providers to boost their reputation, manage risk, enhance financial performance, adhere to regulations and contribute to a circular economy. Investors are increasingly relying on ESG factors to assess companies and make robust investment decisions. The global telecom service market is likely to expand at around 5.4% CAGR through 2028. With climate change posing risks to the industry, commitment to sustainability could be worth a bet to undergird telecom services.

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.

Need expert consultation around identifying, analyzing and creating a plan to mitigate ESG risks related to your business? Share your concerns and queries, we can help!

                                                         Read More ESG Blogs

How the Nutritional Supplements Industry Embraces ESG Principles

Robust environmental, social and governance (ESG) performance has become a hallmark of a sustainable-focused nutritional supplements industry. The ethos of sustainability has gradually become interwoven in the corporate environment. The ESG performance has gradually become one of the deciding factors for consumers, including millennials, baby boomers and people of all genders during their buying journey. The strategic approach to meet sustainability goals will foster a responsible business practice to achieve Sustainable Development Goals (SDGs).

Investors, venture capitalists, entrepreneurs and other stakeholders have raised their ESG bar as sustainability has assumed a vanguard position in boardrooms. Green initiatives to create positive change will encourage companies to fulfill their ESG targets, including but not limited to, good corporate governance, healthy workplace, reduced environmental impact of product life cycle and propel diversity.

Nestle Creates Ripple Effect with Bullish Environmental Goals

Amid the knock-on effects of Russia’s invasion of Ukraine, supply chain disruptions and energy shortages, companies have shown a strong commitment to health and nutrition. Nestle is on a path towards net zero emissions by 2050 as it aims to reduce greenhouse gas emissions by 50% by 2030 from the 2018 baseline. The food giant is also committed to sourcing 20% of key ingredients through regenerative agriculture techniques by 2025. The Swiss company has audacious goals to minimize virgin plastics by one-third by 2025 and reduce water use in factories by 6 million between 2021 and 2023.

The shift to regenerative farming and a renewed focus on recycling have become palpable to help farmers protect forests and the ecosystem. The urge to bolster environmental profile has prompted Nestle to not only put a break on scope 1 & 2 emissions but also scope 3, a go-to strategy to bolster regenerative food systems. In 2022, the food & drink company collaborated with farmers to help them store carbon in soil and enhance biodiversity, soil health, water security and quality. 

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Amway Gives Back to Communities

Nutritional supplement manufacturers are navigating opportunities and challenges stemming from the prevalence of malnutrition. UNICEF reported in June 2022 that around 8 million children under 5 were prone to death from severe wasting (in 15 crisis-hit countries). The spiraling global food shortage on the back of climate change, the COVID-19 pandemic and the Russia-Ukraine war have compelled leading players to bolster their commitment to society. 

Amway has joined forces with global organizations and Nutrilite scientists to introduce a micronutrient powder Nutrilite Little Bits, to offer essential nutrients required for proper growth. In August 2022, over 400 Amway employees served 17 non-profit organizations, clocking over 2,700 volunteer hours and underpinning 24 projects, including packing meals for community distribution. Besides, the company has taken a giant leap in bolstering inclusive entrepreneurship, allowing people to build the tools required to establish their businesses. The U.S.-based company has provided digital platforms, tools and free educational resources to over one million Amway Business Owners (ABOs).

Governance Garners Stakeholders’ Attention in Herbalife

Lately, investors and corporates are investing in ESG integration, emphasizing transparency, traceability, risk identification, ethics & compliance and board diversity. In doing so, effective February 11, 2022, Herbalife Nutrition Ltd. announced that the ESG Committee would help the board oversee ESG activities and practices, such as stakeholder engagement and risks, programs, policies and practices. 

The committee would comprise the Board-appointed three directors. Some duties and responsibilities, such as reviewing investor governance sentiment in coordination with the nominating and corporate governance committee, have strengthened the company’s governance pillar. It has fostered its corporate governance policies to further ESG performance. In essence, the director must be deemed independent to be eligible for the Board’s Audit Committee, Nominating and Corporate Governance Committee and Compensation Committee. 

The nutrition company has received bullish support from the board toward digitization. To illustrate, in August 2022, the Board gave a green signal for digital transformation as the American company announced an infusion of USD 400 million to bolster the growth initiative.  

The underlying business trends indicate that brands will emphasize sustainability as ESG emerges as a key evaluation parameter. Predominantly, Glanbia has pledged to minimize carbon emissions (scope 1 and 2) by 31% in manufacturing sites by 2030. The company is also committed to a 50% reduction in food waste by 2030 and zero waste to landfill at operational sites by 2025. The global nutritional supplement market could depict a 6.3% CAGR between 2022 and 2030, infers Grand View Research. 

Key Companies in this theme

    • Amway

    • Nestle

    • Glabania PLC

    • PepsiCo

    • Herbalife International of America

    • Abbott Nutrition

 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.

Need expert consultation around identifying, analyzing and creating a plan to mitigate ESG risks related to your business? Share your concerns and queries, we can help!

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The Role of ESG in the Biotechnology Industry

The biotechnology industry plays a crucial role in developing products that are both environmentally friendly and economically profitable. By adapting and modifying biological organisms, processes, and systems found in nature, biotechnology contributes to sustainable industrial development. This article explores the impact of ESG considerations in the biotechnology sector, highlighting the environmental benefits, social contributions, and governance practices that shape the industry's trajectory.

Environmental Advancements in Biotechnology

Biotechnology has the potential to revolutionize agriculture and contribute to sustainable food production. By increasing crop yields and designing more efficient crops, biotechnology can manipulate primary energy flows and reduce the use of fossil fuels in agricultural systems. This technology also helps address environmental challenges such as deforestation and soil erosion. Additionally, biotechnology enables resource recovery, recycling, and hazardous waste disposal, offering environmentally beneficial solutions.

The COVID-19 pandemic has further showcased the positive impact of biotechnology on healthcare infrastructure. Through advancements in biotechnology, the pharmaceutical industry has expanded opportunities for drug development and vaccine manufacturing. These developments have improved healthcare infrastructure, enabling better diagnosis, treatment, and reduction of the seroprevalence rate of COVID-19 infections.

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

ESG Trends 

The biotechnology industry is at the forefront of environmental innovations aimed at increasing efficiency and promoting sustainability. Governments, public institutions, and private organizations alike are investing heavily in environmental biotechnology to protect biodiversity and address waste treatment and bioremediation challenges. This sector has witnessed significant advancements in waste treatment and pollutant removal methods, replacing inefficient and costly chemical-based approaches.

Moreover, industrial biotechnology extends beyond biofuel production. It has transformed various industrial processes, ranging from the production of detergents and textiles to vitamins and antibiotics. By conserving natural resources, reducing costs, and accelerating the development of greener products, industrial biotechnology contributes to sustainable practices.

The biotechnology sector also aligns with the United Nations' Sustainable Development Goals (SDGs) to achieve sustainable development solutions. It addresses SDG 1 by offering agricultural biotechnology solutions that help farmers increase their incomes and reduce vulnerability to climate change. In pursuit of SDG 2, biotechnology produces healthier and more productive crops, reducing food waste and extending shelf life. SDG 3 benefits from biotechnology's development of medicines, vaccines, and tools to prevent and contain epidemics and improve global healthcare quality. Biotechnology also supports SDG 6 by purifying water using bacteria and plants, ensuring clean water and sanitation. Additionally, biotechnology innovations contribute to SDG 8 by providing economic opportunities through the development of medicines and agricultural products. SDG 9 is advanced through investments in biotechnology parks, research and development infrastructure, and partnerships with international organizations.

ESG Risks and Challenges 

While biotechnology offers numerous benefits, it also presents risks and challenges. The commercial availability of biotechnology has led to increased exploitation of biological resources for various applications, including food productivity enhancement, disease treatment, and energy generation. However, these applications have been associated with undesirable outcomes such as diminished species biodiversity, agrobiodiversity loss, environmental contamination, and appropriation of biodiversity through intellectual property rights and patents in developing countries.

The use of genetic engineering and antibiotic marker genes in biotechnology can contribute to the problem of antibiotic-resistant bacteria. Genetic modifications in crops have raised concerns about the loss of natural farming practices, altering the very essence and taste of food. To ensure sustainable practices, biotechnology must prioritize natural and ethical farming methods that do not solely rely on agrochemicals and do not exploit humans, animals, and natural flora and fauna.

The Growth of the Biotechnology Market

The global biotechnology market is projected to reach USD 1,023.92 billion by 2021, with a compound annual growth rate (CAGR) of 13.9% from 2022 to 2030. Governments worldwide are supporting this market by modernizing regulatory frameworks, improving approval processes and reimbursement policies, and standardizing clinical trials. Collaborations between government bodies and biotech companies focus on research and development to develop drugs and vaccines for various diseases. 

Key Companies 

    • AstraZeneca

    • Gilead Sciences, Inc.

    • Bristol-Myers Squibb

    • Sanofi

    • Biogen

    • Abbott Laboratories

    • Pfizer, Inc.

    • Amgen, Inc.

    • Novo Nordisk A/S

    • Merck KGaA

    • Johnson & Johnson Services, Inc.

    • Novartis AG

    • F. Hoffmann-La Roche Ltd.

    • Lonza

Key Benefits of the Biotechnology Industry ESG Thematic Report

The Biotechnology Industry ESG Thematic Report offers several key benefits to its readers. It provides a comprehensive understanding of macro-economic factors, policies, regulations, and innovations impacting the biotechnology industry globally. The report delves into infrastructure developments and ESG issues relevant to the industry, allowing businesses to identify risks and opportunities among leading players. Moreover, it offers clear insights into company actions, progress, and impact, empowering investors to make informed decisions.

Browse more ESG Thematic Reports from the Healthcare Sector, published by Astra - ESG Solutions

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.

Need expert consultation around identifying, analyzing and creating a plan to mitigate ESG risks related to your business? Share your concerns and queries, we can help!

The Growing Importance of ESG in the Bakery Product Industry

Embedding the value of environmental, social and governance (ESG) in the bakery product industry has become a vital cog in augmenting revenue growth and bolstering employee productivity. A strong ESG performance can help industry leaders tap into new markets and attract customers to pay more. That said, status brings responsibility and challenges—air pollution and waste from bakery manufacturing have become pervasive. Oven produces volatile organic compounds (VOCs), including ethanol, while food waste in the landfill releases methane, aggravating global warming. Amidst criticism, buoyant ESG policies could be the silver lining. In 2023, the U.K. Environmental Act 2021 came into full effect, which fosters the U.K. government’s commitment to eliminate food waste in landfill by 2030. 

The food industry has an overarching impact on the planet, society and governance. Reduction of ecological footprint has become instrumental in underpinning the sustainability profile. One of the most rapidly rising segments in the bakery industry is that which offers sustainably raised products. Besides, robust ESG policies can help deal fairly and ethically with stakeholders, deliver value to customers, reinforce communities and provide value for shareholders. 

An increasing chorus of stakeholders has pushed for publishing sustainability/ESG reports and fostering transparency and ethical standards. In the same breath, questions arise:

1. Which ESG issues have garnered headlines among forward-looking companies? 

2. Are companies ramping up efforts to underpin employee safety, reduce carbon footprint and accentuate transparency? 

Kraft Food Bolsters Environmental Stewardship

Climate risks have posed risks as the increasing number of days with extreme heat has led to reduced productivity. Moreover, changing rainfall patterns and scorching heat have triggered wildfires, disrupting economies and killing citizens. ESG goals, including minimizing waste, reducing GHG emissions and making sustainable packaging, have become invaluable to stay ahead of the curve. Kraft Heinz has set an audacious goal of a 20% reduction in waste-to-landfill intensity across manufacturing facilities by 2025.

In 2021, the American food manufacturing company pledged to attain Net-Zero greenhouse gas emissions by 2050. Kraft Heinz collaborated with seven companies in Canada to minimize food waste by 50% by 2025. The company will emphasize regenerative and sustainable practices, procure most electricity from renewable sources and shift to more circular and recyclable packaging. It will also further its efforts to propel scope 3 emission minimization strategies across ingredients, upstream and downstream transportation, packaging, end-of-life and sold products.  

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

Bimbo Bakeries Gains from DEI Initiatives

Stakeholders’ actions on social factors, including conditions employees work under, pay parity and diversity, equity & inclusion, can notably impact shareholders’ returns. Bimbo Bakeries is gearing up to ensure 50% diverse candidate slates—at least 25% racially diverse and a minimum of 25% women; the company laid down the goals to be achieved from 2022 to 2024. The company also requires associates to complete at least 1.5 hours of Racial Equity Strategy Training (REST) annually.

It has established the 2030 ambition to bolster underserved communities, emphasizing economics, education and health assistance. In 2021, Bimbo Bakeries USA (BBU) committed USD 1 million to national and local organizations to propel the financial well-being, education and health of Black and minority Americans. The company provides scholarships and internships through collaboration with the United Negro College Fund.

The reputation of companies largely depends upon their social credibility. In 2020, BBU donated half a million dollars to the COVID-19 Relief Fun of Feeding America. The company donates around 20 million pounds of food to local food banks annually (collaborated with Feeding America). Across the U.S., the bakery firm chooses ten food banks to receive a donation of 5,000 pounds of bread. The prevalence of a safe and inclusive working environment, along with economic assistance, will add value to ESG goals. 

Transparency Pivotal for General Mills to Create Synergy

The financial impact is largely driven by the impact the firm has on the environment and society. In the realm of ESG factors, investors, managers, communities, employees and suppliers have furthered governance pillar to adhere to the law, make effective decisions and keep up with the demand of stakeholders. Consumers are eager to know what is in their bakery products, how they are prepared and where they came from.

General Mills has fostered ingredient sourcing by disclosing information about purchasing Roundtable on Sustainable Palm Oil (RSPO) certified palm oil volumes. The website also includes an updated list of all palm oil suppliers. As of 2022, the company has listed around 1,900 products on smartlabel.org, 319 topics were covered on askgeneralmills.com and 600 products were enrolled in the U.S. Non-GMO Project, according to its 2023 Global Responsibility Report.

A strong ESG proposition warrants the assessment of climate-related risks, opportunities; relationships with the society they do business; and investments in corporate governance that encapsulate firms’ long-term success. Grand View Research indicates that the global bakery products market size could reach USD 251.1 billion by 2025. The billion-dollar industry will emphasize ESG reporting to undergird sustainable bakeries. 

Browse more ESG Thematic Reports from the Consumer Products Sector, published by Astra - ESG Solutions

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.

Need expert consultation around identifying, analyzing and creating a plan to mitigate ESG risks related to your business? Share your concerns and queries, we can help!

Evaluating ESG Performance in the Bottled Water Industry

Concerted efforts to boost water conservation have prompted bottled water brands to bank on environmental, social and governance (ESG) pillars. Maintaining the delicate balance between the ecosystem and human needs will foster environmental sustainability. Brands are vying to bolster their sustainability journey with commitments across packaging, climate change, water and sourcing. Moreover, emphasizing labor management, supply chain labor standards, corporate governance, board diversity and transparency will develop resiliency and help produce high-quality and safe products. 

Prioritizing ESG has become paramount for leading companies to stay ahead of the game amidst stiff competition. Consumers have increasingly sought bottled water. According to the Beverage Marketing Corporation, bottled water outnumbered soft drinks in the U.S., amassing 15.7 billion gallons of water as of 2021. The total volume of packaged drinks surpassed the all-time peak of the carbonated drink of 15.3 billion gallons in 2004. Industry players are expected to bank on the three pillars as ESG reporting is poised to garner headlines while framing sustainable strategies. 

Key Companies in this theme

    • Nestlé, PepsiCo

    • The Coca-Cola Company

    • DANONE

    • Nongfu Spring

    • National Beverage Corp.

    • Keurig Dr Pepper Inc.

Environmental Perspective 

Sustainable packaging solution has received an impetus to negate the environmental impact of plastic bottles. According to the survey conducted by the Harris Poll for the International Bottled Water Association (IBWA), nine out of ten Americans sought the availability of bottled water wherever other drinks were sold. Soaring consumer preference for bottled water has prompted industry leaders to use recycled PET and HDPE plastic.

Prominently, PET bottled water containers have reduced material usage and weigh less. Moreover, rPET (recycled PET) and rHDPE (recycled HDPE) have become pronounced. In February 2023, Revalyu announced an infusion of USD 50 million to build a PET bottle recycling plant in the U.S. The company will use water- and energy-conserving advanced recycling methods on 12 million PET bottles per day when operation starts in 2024. With recyclable and sustainable packaging more in demand than ever, industry leaders will likely bolster their environmental profile. 

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

Social Perspective

Diversity, equity and inclusion (DEI) has become imperative to narrow the gender gap across organizations. Recruiting from diverse backgrounds, social dialogue and emphasizing workplace safety can provide promising growth opportunities. In 2021, Danone rolled out the “Future of Work” study to redefine the ways of working. Besides, it fosters equal pay for men and women and has deployed a parental policy globally, covering 91,628 employees. 

Companies have left no stone unturned to underpin and promote human rights. In 2021, Danone bolstered a partnership with UN Women and Bonafont in Mexico to equip and train women with entrepreneurship skills. The company has propelled its human rights policy as it has pledged to deploy and develop Human Rights Due Diligence (HRDD) systems emphasizing forced labor in its operations. In 2020, it attained the 5-year ambition of reducing lost time accidents by 50% between 2015-2020. Ensuring health & safety with a safe working environment will remain indispensable to streamline operations.

Governance Perspective

The business practices and principles designed to propel corporate governance, tax transparency, ethical behavior, accountability and board diversity have become pronounced. The Coca-Cola Company has an Audit Committee, a Committee on Directors and Corporate Governance, a Talent and Compensation Committee, an ESG and public policy committee, a Finance Committee and an Executive Committee to help smoothly discharge governance duties. 

In 2022, the Talent and Compensation Committee gave the nod to link the ESG performance measures to annual and long-term incentive programs, thereby fostering executive compensation. The beverage giant has also incorporated its 2030 Water Security Strategy and World Without Waste packaging strategy (50% recycled material in all packages by 2030) into the 2022-2024 incentive awards. 

The growing prominence of water security and the need for smart water policies has amplified the topic of water governance. Coca-Cola has incorporated certain ESG metrics to underscore water issues. It has over 225 bottling partners across 200 countries and territories. Moreover, in 2021, the drink company earned a spot on the “A-List” of CDP for leadership in corporate transparency and action on water security. 

Incumbent players have depicted increased traction for organic and inorganic growth strategies to tap into the global ecosystem. Brands are likely to map opportunities from collaboration, technological advancements, innovations and research & development activities. To illustrate, in December 2022, PepsiCo set a goal to double the reusable packaging for beverages to 20% by 2030. These trends suggest that the global bottled water market could expand at 6.7% CAGR between 2022 to 2030. 

Browse more ESG Thematic Reports from the Consumer Products Sector, published by Astra - ESG Solutions

About Astra – ESG Solutions by Grand View Research

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

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

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

How ESG Principles Can Drive the Growth of the Vegan Cheese Sector

Food businesses wanting to manage risk, enhance their financial performance, adhere to financial regulations and underpin their brand reputation in the vegan cheese industry have banked on ESG. Companies that shun ESG factors may grapple with reputational damage; recent years have witnessed an increasing preference for sustainability fueled by heightened awareness of environmental and social issues. Plant-based cheese has grown mainstream as cheesemakers witness rising diet acceptance and a surge in dairy-free food vloggers.  

An emphasis on sustainable sourcing, treatment of employees, climate change, pollution and internal and external governance can have an overarching influence on long-term financial performance. Animal products, like dairy, notably impact the environment. Consumption of 30g of cheese per day annually can lead to 352kg of GHG emission per year, akin to driving a petrol-fueled car close to 900 miles, notes BBC.

Consumers are counting on the vegan culture to reinforce sustainability. However, investment in products with negative social externalities can be written off. Employees’ satisfaction has a positive correlation with shareholders’ returns. A strong ESG performance will muster up the confidence of employees and workers, boosting productivity. 

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

Upfield Navigates Environmental Impact

The environmental factor has garnered huge headlines, with dairy-free alternatives witnessing a proliferation in demand. Upfield-owned Violife, for instance, reportedly has less than 50% of the climate footprint vis-à-vis dairy cheese (of the same amount). Besides, the company claims its products use less than one-third of the land compared to dairy cheese. Upfield is contemplating eliminating 95% of plastic content from all its packaging and communicating the upsides of plant-based food through labeling carbon emissions on around 500 million packs by 2025. The Dutch food company has set an audacious goal of achieving net zero by 2050 and is committed to being 100% plant-based by 2025.

Daiya Foods Integrates Socially Responsible Practices

An invaluable part of corporate strategy has been a commitment to community, employees, health (emotional wellbeing, social wellbeing and physical wellbeing) and nutrition. Notably, Daiya’s donation to the Kingdom Acts Foundation has helped serve dietary-specific food to families across Vancouver. Furthermore, the food brand’s collaboration with FoodMesh has leveraged donations of 138,872 kg of food and saved 358,291 kg of CO2e emissions. The company asserted that it is poised to be a BCorp-certified organization—a designation for businesses that meet high standards of transparency, accountability and performance on charitable giving, employee benefits, input materials and supply chain practices. 

Kraft Heinz Invests in Good Governance for Sustainable Future

Good governance is indispensable for brands striving to be role models in the plant-based food industry. The board’s competency and diversity, along with investments in transparency, ethics & compliance, can shape the company’s outlook. The Board of Directors at Kraft Heinz oversees its ESG objectives and frameworks on matters, such as animal welfare, climate change, social issues, nutrition and wellbeing.

The ESG team spearheads the ESG Steering Committee engaging with major stakeholders, including community leaders, customers, consumers, employees, stockholders and NGOs. The U.S.-based company updates its ESG materiality assessment with a cloud-based AI software platform to underscore its sustainability strategy. The multinational food company provides ethics and compliance training to its employees on whistleblowing, conflict of interest, due diligence and IT security factors. 

As plant-based food witnesses a tectonic shift, more sustainable, affordable and healthier vegan products could be at the heart of cheese manufacturing. Leading players are championing their strategies to propel the penetration of dairy-free alternatives. The growth outlook is strong: Grand View Research inferred that the global vegan cheese market stood at USD 2.43 billion in 2021 and could observe a 12.6% CAGR between 2022 and 2030. Factors, such as responsible sourcing, environmental stewardship and adoption of socially responsible business practices (with transparency) will bring good governance to life.  

Browse more ESG Thematic Reports from the Consumer Products Sector, published by Astra - ESG Solutions

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