The Role of Innovation in Driving ESG Practices in the European Pharmaceutical Industry

Environmental, social and governance (ESG) reporting in the healthcare sector has received a further push with the European pharmaceutical industry players confronting climate change and exploring challenges and opportunities, including strategies for product marketing and developing technologies and policies. In April 2021, the European Commission issued a legislative proposal for the Corporate Sustainability Reporting Directive (CSRD), requiring companies to report in line with European Sustainability Reporting Standards (ESRS). Furthermore, in July 2023, the EC adopted the first set of ESRS — companies will need to report in compliance with the new ESRS as early as 2024.

A rising chorus of voices is pitching for net-zero goals. In retrospect, the EU’s audacious move to become the first global market to roll out financial penalties for emissions in 2005 was a shot in the arm. So much so that companies that are leaving no stone unturned to reduce carbon are overcoming waste in packaging and production and encouraging suppliers to minimize emissions.

Stakeholders, including investors, clients, partners and the public, perceive transparency, diversity, equity & inclusion (DEI), corporate governance, business ethics, tax transparency, social opportunity, and pollution and waste as a game-changer for a better tomorrow. Predominantly, the circular economy is a riposte to the stiff challenge the 21st century presents — providing people’s needs without putting a burden on the environment and exhausting natural resources.

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

Healthcare facilities, such as hospitals, are responsible for a large chunk of environmental pollution. Citing Dutch government data, a U.K.-based Law company — Pinsent Masons — noted (in November 2022) that the healthcare sector contributed around 7% of the CO2 emissions. The emergence of the Green Deal has brought a seismic shift in the healthcare system by minimizing the sector’s negative effects on the environment and climate and achieving a shift towards green and climate-neutral healthcare. The 3rd Green Deal, effective from 2023 through 2026, will gear up to help the Netherlands be carbon neutral by 2050, minimize the environmental burden of pharmaceuticals, promote more sustainable, healthier and plant-based diets for consumers and minimize the use of new materials and reuse more materials.

Novartis Explores Environmental Challenges and Opportunities

As medical technology continues to accelerate to keep up with the soaring demand for high-quality healthcare, European pharmaceutical companies are banking on proactive decisions to underpin sustainability goals. A leap toward ESG business practices and reduction targets of scope 1, 2 and 3 emissions will propel long-term environmental goals. For instance, in 2022, Novartis claimed it minimized scope 1 and 2 emissions by 23% from the preceding year.

The Switzerland-headquartered company is committed to using 100% renewable electricity across its operations by 2025. In 2022, renewable power purchase agreements helped the healthcare giant cover electricity consumption across its operations in Europe and North America. Amidst its scope 3 emissions rising by 20% (from the preceding year), Novartis has set a bullish target of becoming carbon neutral by 2030.

Bristol-Myers Squibb Advances Inclusion and Diversity Efforts

Pharma companies are fostering ESG strategies — enhancing health & well-being and underscoring diversity, equity and inclusion (DEI). Commitment to a patient-centric culture and just society that respects and values people from all backgrounds will boost sustainably responsible investing. In 2023, Bristol-Myers Squibb bolstered workforce representation goals to include executive directors and above to impel the next generation of leadership. In March 2023, the company inferred that 85% strongly agreed or agreed that they felt they worked in diverse and cross-cultural teams at BMS UK.

The pharmaceutical industrial company asserted it enrolled more than 6,800 employees (in 2022) into professional, manager, and leadership development programs. The company claimed in its 2022 ESG report that 100% of its leadership development programs are inclusive and address topics pertaining to women and underrepresented ethnic groups.

AstraZeneca Encourages Transparency

Robust corporate governance warrants greater transparency, the integrity of risk management, internal controls and financial information. Embedding sustainability from the lab to the patient will strengthen the healthcare system and herald an ESG-powered future. AstraZeneca alluded to its commitment to high ethical standards and full compliance with laws, regulations and internal policies in its Sustainability Report 2022.

The U.K.-headquartered company has set an audacious 2025 target of maintaining 100% of active employees trained on the Code of Ethics. Besides, the stakeholder group has a keen interest in exposure to macro-economic risk, R&D productivity and successful pipeline, commercial operations, financial performance and strategy, climate and sustainability matters and culture, values and behaviors.

European pharmaceutical companies are striving to fuel high standards of conduct and accountability, including anti-corruption, anti-bribery, human rights and use of human tissue and animals for research. Businesses are centered on trust — seeking feedback and providing inputs on diversity, equity & inclusion and leadership structure — which will further align sustainability strategy with business strategy. Grand View Research estimates the Europe pharmaceutical market, which stood at USD 282.75 billion in 2020, to grow at 5.4% CAGR between 2021 and 2028. With ESG becoming a common denominator, stakeholders are poised to prioritize sustainability issues and propel ESG reporting.

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.

Read more ESG Blogs

ESG in the Antibiotics Sector: A Comprehensive Guide for Investors

C-suite executives and board members in the antibiotics industry have become increasingly aware of ESG and how it affects their strategy, companies’ future performance and their value. An ominous rise of antibiotic-resistant bacteria has sent shockwaves among manufacturers, compelling them to integrate ESG into their business operations. The Lancet noted in its 2021 study that antibiotics helped minimize the mortality of under-fives to 39 deaths (from 216) per 1,000 live births between 1950 and 2017. Meanwhile, the overuse of antibiotics has led to a notable outcry towards the emergence and prevalence of antimicrobial resistance (AMR). Citing the Global Research on AntiMicrobial Resistance (GRAM), the Lancet (in January 2022) suggested at least 1.27 million people succumbed to AMR in 2019.

Amidst havoc wracked by antibiotic resistance, traction for impact investing, socially responsible investing and the European Sustainable Finance Disclosure Regulation (SFDR) have risen by leaps and bounds. A report by the World Bank claimed that by 2050, drug-resistant infections could cause global economic damage akin to the 2008 financial crisis, while healthcare costs could soar to USD 1 trillion. 

Stakeholders are relying on impact investing to have a positive impact on the environment and society and generate financial returns. Besides, the adoption of science-based targets, commitment to reduce carbon footprint, investments in transparency, ethics, diversity and health & wellbeing will be a step forward towards adopting ESG best practices. 

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

Pfizer Inc. Invests in Environmental Initiatives for Value Creation

A robust ESG proposition can help organizations expand into existing markets and tap new ones. Industry leaders’ emphasis on reducing carbon footprint, minimization of waste and resource conservation have topped their agenda. Pfizer, for example, has set an audacious target of minimizing scope 1 and 2 GHG emissions by 46% (from a 2019 baseline) by 2030. In 2022, the company claimed to have eradicated around 50,000 mt of GHG emissions by transitioning other product shipments from air to ocean. Besides, in November 2022, the U.S.-based company contemplated joining “Activate,” a collective action initiative, to underscore decarbonization of major sources of GHG emissions in the pharmaceutical value chain. 

Pfizer is gearing up to limit the discharge of active pharmaceutical ingredients (from manufacturing processes to wastewater) using emission control practices and technologies and environmental risk assessment methodologies. The behemoth asserts it is on course to achieve the industry-published targets (Predicted No Effect Concentrations) for antibiotics by 2025.  

Merck Roots for Diverse, Inclusive and Healthy Workforce

At a time when the world is recuperating from COVID-19 and combating inequities in health outcomes, medicines and vaccine accessibility and affordability have become a vital cog in expanding healthcare access. Merck is emphasizing granting voluntary licenses to generic manufacturers and to the Medicines Patent Pool to make generic treatment available in over 100 low- and middle-income countries, provided local regulatory agencies give the nod and emergency authorization. It has also taken a giant leap in fostering diversity, equity and inclusion (DEI). The multinational company alluded to a 5% rise in the representation of underrepresented ethnic groups (UEGs) from 2020 to 2021. The pharmaceutical player is pushing for gender parity in leadership positions by 2030 and has ramped up the share of women (in leadership positions) to 38% in 2022. 

The healthcare giant has expanded its employee networks with (including but not limited to) Rainbow Networks, Inclusion Networks, Well-being Communities and Women Networks. Rainbow Networks, for example, boosts an inclusive and safe environment and community where LGBTQ+ employees and allies are “recognized and valued.” In its 2022 Sustainability Report, Merck noted that the Uhlala Group chose them as one of the top 11 large companies in the LGBTIQ+ Diversity Performance Index. 

AbbVie Counts on Governance for Success in the Boardroom

The confluence of environmental, social and governance pillars has allowed companies not only to survive but also thrive. To put this in perspective, strong corporate governance has become second to none to stay cut above the rest and build a culture of ethical behavior. In the 2022 ESG Action Report, AbbVie inferred that ten of its eleven directors were independent. The company claims that 99% of assigned employees are certified to the AbbVie Code of Business Conduct. The American pharmaceutical company has reinforced the risk assessment process by establishing an annual risk landscape, while the assessment results and mitigation plans are formally documented biannually. 

Ethical decision-making and transparency are instrumental in promoting accountability, quality, integrity and safety. AbbVie exhorted in the report that it assesses its efforts in line with the United Nations Sustainable Development Goals (UN SDGs), the Task Force on Climate-Related Financial Disclosures (TCFD), Carbon Disclosure Project (CDP), the Sustainability Accounting Standards Board (SASB) and the S&P Global Corporate Sustainability Assessment. In 2023, the company took a meaningful step by updating its TCFD report to foster governance and strategy efforts to manage climate risks and highlight “approved” science-based targets to the Science Based Targets initiative. Besides, in 2022, it rolled out an “Acting with Integrity” initiative to undergird ethical and compliant behavior.  

ESG Matters

ESG strategies have turned out to be an invaluable portfolio for responsible investors. Companies that care about their customers, people and environment can outperform their peers. A sustainable approach will help organizations enhance health outcomes, create shared value, make a positive impact on society and build trust. In November 2023, Melinta Therapeutics and Venatorx Pharmaceuticals entered into a license agreement to commercialize cefepime-taniborbactam in the U.S. The collaboration comes against the backdrop of the latter’s submission of a new drug application for cefepime-taniborbactam for the treatment of complicated urinary tract infections (cUTI). With ESG gaining traction globally, Grand View Research has predicted the antibiotics market will grow at 4.5% CAGR between 2021 and 2028.

Related Reports:

• Pharmaceutcial Manufacturing Industry ESG: https://astra.grandviewresearch.com/pharmaceutical-manufacturing-industry-esg-outlook
  
  
• Brain Health Supplement Industry ESG: https://astra.grandviewresearch.com/brain-health-supplement-industry-esg-outlook
  
  
• Clinical Trials Industry ESG: https://astra.grandviewresearch.com/clinical-trials-industry-esg-outlook

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.

Read More ESG Blogs

 

The Role of Stakeholder Engagement in Advancing ESG in Plastic Package Industry

The ubiquity of plastic package has put the spotlight on environmental, social and governance (ESG) as industry leaders take a leap towards decarbonization and circular economy. Incumbent manufacturers are harnessing sustainable packaging solutions to protect the environment, foster the planet and underscore society. There is no denying that packaging ensures product quality and safety; however, pervasive plastic pollution has been the major bottleneck towards sustainability goals.

According to UNEP, humanity produces over 430 million tons of plastic annually, while 280 million tons of short-lived plastic products become waste. Moreover, the packaging sector is the largest generator of plastic waste — the figure is likely to be logged at 1,014 million metric tons of plastic waste per year in 2060. Besides, the Ellen MacArthur Foundation claims 20 trillion flexible packaging items, including sachets and pouches, would end up in the ocean by 2040, provided regulator measures and binding policy are not taken.

Governing bodies and watchdogs are leaving no stone unturned to underscore socially responsible investment (SRI). ESG reporting can have a considerable impact on the strategies and operations of the firm, prompting leaders to advance toward the circular packaging economy.

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

Mondi Harnesses Challenges & Opportunities with Climate Change

Companies with high ESG ratings tend to plan better for the future and boost returns. Predominantly, investors, insurers and lenders are eager to know how organizations are responding to environmental changes, the emergence of technology and customer behavior shifts. In essence, Mondi is on track to minimize specific waste to landfill by 30% by 2030. The U.K.-based company is gearing up to create 100% reusable, recyclable, or compostable plastic packaging by 2025. The global giant has undergirded recyclability with an emphasis on structures with 30–50% material made from post-consumer resin (PCR). In doing so, it will work with recyclers to enhance the quality of the recycled resins, remove hard-to-recycle components and redesign packaging to mono-material solutions.

Amcor Uncovers Future-Driven Approach Keeping People at the Center

Businesses are increasingly emphasizing social goals to enhance financial performance, manage risk, boost reputation and comply with regulations. A commitment to inclusion and diversity, employee health & wellness, product safety and employee training can help companies build stronger relationships with stakeholders. The community pillar at Amcor has formed a global network of representatives to bolster the deployment of the company’s DEI (diversity, equity and inclusion) agenda. It also conducted OurVoice@Amcor global feedback survey in FY 2023 to launch programs for more employee-centric and future-focused workplaces. Besides, Amcor went on to onboard more than 40 Afghans and about a dozen of Congolese team members in one year.

Coveris Adds Value through Governance

Robust corporate governance practices have become second to none in maintaining accountability, mitigating risks and fostering performance. In essence, sound risk management, ethics & compliance, transparency and board diversity can have a notable impact on brand reputation, financial condition and business operations. Coveris asserts it complies with tax laws, human trafficking, tax laws and regulatory compliance. According to the UK Tax Disclosure Policy published by Coveris on November 10, 2023, the senior management of the UK entities manages and controls the tax function (and related risks). The policy suggests the UK Group does not facilitate/tolerate tax evasion and it may claim properly available allowances, incentives, exemptions, credits, or other government-granted reliefs.

Making a Difference with ESG Reporting

Stakeholders, including customers, manufacturers, suppliers, governments and NGOs, are developing recyclable materials, fostering sustainable packaging for strength, safety and barrier attributes. Authentic information on the environmental footprint, contribution to society, tax transparency and corruption will place companies cut above the rest.

ESG reporting has become the silver lining amidst brands striving to enhance their position in the competitive market. Companies disclosing environmental data can assess the impact of plastic packaging, commit to proactive action and report on progress with transparency. In April 2023, CDP announced that it would add plastics to its environmental disclosure system for the first time, leveraging 6,743 organizations to disclose their plastic-related impacts, including that of plastic packaging.

As stakeholders embed ESG in roles, activities and responsibilities, companies are bullish towards investments in plastic circular economy, health & wellbeing, DEI and product and employee safety. The global plastic package market size, pegged at USD 355 billion in 2021, could depict around 4.2% CAGR between 2022 and 2030, according to Grand View Research. With suppliers and manufacturers making strides to meet packaging goals, the spotlight will continue to remain on socially responsible investing.

Related Reports:

• Green Packaging Industry: https://astra.grandviewresearch.com/green-packaging-industry-esg-outlook
  
  
• Bioplastics Industry: https://astra.grandviewresearch.com/bioplastics-industry-esg-outlook
  
  
• Recycled Plastic Industry: https://astra.grandviewresearch.com/recycled-plastic-industry-esg-outlook

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 leve

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!

ESG Reporting and Transparency in the Pharmaceutical Manufacturing Sector

Pharmaceutical manufacturing has repeatedly stepped up during global crises, including the COVID-19 pandemic and the Russia-Ukraine conflict. Industry leaders are recognizing the significance of environmental, social and governance (ESG) pillars, including climate change, diversity, equity & inclusion (DEI), product innovation, business ethics, equitable access & pricing and product quality. The need to embed and align responsible business practices for strategic decisions, governance and business operations will augur well for purpose-driven pharmaceutical manufacturing organizations.

Leading companies are exploring the United Nations Sustainable Development Goals (UN SDGs) and Global Reporting Initiative to help pharmaceutical players assess their impacts on corruption, climate change and human rights and pursue opportunities to solve societal challenges.

The global push to develop and build a resilient, equitable and sustainable health system has encouraged stakeholders to achieve a safe, ethical and responsible culture by harnessing the power of innovation and science.

Surmounting Climate Change Concerns—Environmental Pillar

Pharma companies are navigating the environmental challenges that have become notorious for causing a surge in health inequalities, chronic diseases and the burden on the health system.  The environmental impact of drug manufacturing can lead to carbon emissions, pollution and water depletion. Accordingly, access to healthcare and environmental sustainability has come to the fore as an invaluable proposition.

Stakeholders are expected to use emission control practices, technologies, and environmental risk assessment methodologies to limit the discharge of active pharmaceutical ingredients to wastewater from manufacturing processes. For instance, in 2021, Pfizer forged a virtual PPA with Vesper Energy (Vesper), wherein the latter will provide a minimum of 310 MW of renewable energy to the grid from the Hornet Solar project (in west Texas).

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

Emphasis on Expanding Healthcare Access—Social Pillar

The havoc wrecked by the COVID-19 pandemic proved to be a litmus test for healthcare workers, frontline employees and the public amidst soaring demand to bolster healthcare resilience, boost access to life-saving treatments and foster sustainable healthcare solutions. A buoyant ESG approach alludes to expanding geographies where rare disease medicines are available, ramping up patient access, addressing unmet medical needs and enhancing product life cycle management.

Data analytics can be instrumental for early diagnosis, medical research and training. In 2022, AstraZeneca joined forces with the EDISON Alliance of World Economic Forum to enhance the lives of 1 billion people by 2025 through digital inclusion. The pharmaceutical giant is committed to using AI-based technology to screen 5 million patients for lung cancer.

Ethics and Transparency Vital to Embed ESG Culture—Governance Pillar

Decision-making that complements ethics, quality, transparency and integrity serves as a precursor to governance goals. As the industry moves towards a sustainable future, sound corporate governance will be pivotal to underscore ESG performance. With the pharma industry investing in life-saving drugs, incumbent players are well-positioned to underpin their governance portfolio.

Robust ethical behavior speaks volumes of how industry leaders are doing the right thing—reporting and investigating concerns. For instance, 87% of employees at GlaxoSmithKline believe they “can and do speak up if things don’t feel right.” In 2022, the behemoth reportedly conducted 1,060 quality audits of its suppliers, emphasizing active pharmaceutical ingredient suppliers and propelling product governance.

Corporate governance warrants commitment to high ethical standards to underscore trust among stakeholders and underpin transparency and integrity. Sustainability-focused decision-making will help companies bolster their brand position through ethical decision-making, accountability, supply chain transparency, data privacy & protection and risk management. Notably, audit programs in manufacturing, clinical, preclinical and logistics will ensure that products are compliant with regulatory requirements. Bullish governance policies will muster up the confidence of investors, entrepreneurs, shareholders and other stakeholders.

Reaping Benefits of ESG—a Vital Cog for Business

The future of the pharma industry alludes to a sustainable approach to building a healthier planet. Investments in net zero buildings, renewables, patient engagement, reducing the environmental footprint of the supply chain and manufacturing and medicine optimization will engineer ESG growth. Stakeholders are pushing to the limits to create an atmosphere to impel DEI, provide decent work and economic growth, gender equality, minimize inequalities, foster corporate governance and communicate ESG goals to the public. Prevailing trends exhort the valuation of the global pharmaceutical manufacturing market size at USD 405.52 billion in 2020 and back the expected CAGR of 11.34% 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.

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

ESG Investing and the Legal Services Sector

The global legal services industry has witnessed a significant shift in recent years, with a growing emphasis on sustainability and responsible business practices. As corporations, governments, and consumers strive to make a positive impact, the integration of Environment, Social, and Governance (ESG) principles into the legal sector has become a key trend. Through the adoption of advanced technologies and a focus on sustainability, the industry is not only enhancing efficiency but also contributing to the United Nations Sustainable Development Goals (UNSDG). In this article, we will explore the role of ESG in the legal services ecosystem, examine key trends, discuss the growth of the market, and highlight the initiatives taken by industry leaders to promote sustainability.

Embracing Technology for Sustainability

The legal service has undergone a significant transformation thanks to advancements in technology. The integration of Artificial Intelligence (AI) and Machine Learning (ML) has revolutionized traditional legal practices, making them more efficient and sustainable. Technologies like contract lifecycle management software have reduced the reliance on logistics, thereby minimizing the carbon footprint associated with transportation and contributing to the UNSDG goal of climate action (SDG 13). By streamlining processes and reducing the use of physical resources, advanced technologies have become instrumental in promoting sustainability within the industry.

Moreover, the adoption of state-of-the-art technology has improved the governance aspect of ESG across various industries. Disputes can now be resolved more efficiently, reducing the risk of damaging the corporate governance goodwill. Alternative dispute resolution services provided by key players not only cut costs but also ensure privacy for corporate consumers, further enhancing the governance aspect of ESG.

In addition to dispute resolution, legal service providers offer advisory services on compliance and corporate governance frameworks. These services assist companies in adhering to legal frameworks and promoting peace and justice, aligning with the UNSDG goal of Institutions for Peace and Justice (SDG 16). By providing guidance on regulatory compliance, service providers contribute to the establishment of fair and just business practices.

However, the integration of technology also brings certain risks that can adversely impact the governance aspect of ESG within the industry. Law firms often rely on third-party software for tasks such as contract drafting, which pose risks related to data security and breaches. Data breaches not only have financial implications but also undermine the governance aspect, affecting both companies and their clients.

To mitigate these risks, industry leaders have implemented relevant policies to protect against data breaches. By giving consumers more control over their data, service providers are improving the governance aspect of ESG and instilling trust in the industry.

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

Growth and Outlook of the Legal Services Market

The global legal services market has experienced steady growth in recent years and is projected to expand further in the coming years. As of 2021, the market is valued at USD 901.8 billion and is expected to grow at a compound annual growth rate (CAGR) of 5.3% from 2022-2030. One of the key factors driving this growth is the increasing demand for resolving disputes among corporates. The industry plays a vital role in providing guidance on the governance aspect of ESG, thereby promoting the UNSDG goal of peace and justice.

Furthermore, the usage of technology for mitigating legal risks and resolving disputes amicably aligns with the goal of institutions for peace and justice. While the industry continues to face challenges related to data protection and privacy, efforts are underway to address these issues and ensure sustainable growth.

Key Companies Leading the Way in ESG

Several key players in the legal services industry have taken significant initiatives to promote ESG principles and sustainability. Let's take a closer look at some of these companies:

• Baker & McKenzie: A global law firm that has integrated ESG practices into its operations. The firm emphasizes sustainability and responsible business practices, contributing to the achievement of the UNSDGs. Notably, the firm asserts that 45% of organizations are emphasizing retention of underrepresented groups and 51% of diversity leaders have termed recruiting diverse talent as a “priority.”

• Clifford Chance LLP: Known for its commitment to sustainability, Clifford Chance LLP has implemented various initiatives to promote ESG within the legal industry. The firm's efforts include advising clients on ESG matters and incorporating sustainability considerations into its own operations. The law firm has delivered 1,610

legal skills training courses in FY23 ( provided by the Global Clifford Chance

Academy).

• Deloitte: As a leading professional services firm, Deloitte recognizes the importance of ESG. The firm provides comprehensive ESG solutions, assisting clients in aligning their business practices with sustainability goals.

• DLA Piper: DLA Piper is committed to integrating ESG principles into its business portfolio. In 2022, the company set a bullish target of becoming a Net Zero law firm, while it contemplates reducing emissions by 90% across all three scopes by 2040. The firm focuses on advising clients on sustainability-related matters, including environmental compliance, social responsibility, and corporate governance.

• Ernst & Young (E&Y): E&Y is actively engaged in promoting ESG practices within the industry. The firm offers ESG advisory services, helping clients navigate the complexities of sustainability and responsible business practices.

In conclusion, law firms are embracing ESG principles to create a sustainable future. Through the integration of technology, the sector is becoming more efficient, while also contributing to the UNSDGs. Key players in the industry are taking initiatives to promote sustainability and responsible business practices. With the market poised for growth, the adoption of ESG practices will continue to shape the future of the legal services industry.

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

ESG Reporting in the Dairy Product Industry

Protecting the environment and society for a better future has posed challenges and opportunities to underpin sustainable dairy product farming. Farmers have furthered efforts on science and innovations to foster a transition to net-zero GHG emissions. A safe, healthy and inclusive workplace and the need to ensure the well-being of cows will bring a tectonic shift in the dairy industry. So much so that responsible sourcing, responsible social engagement and responsible operations have become a household name in the environmental, social and governance (ESG) landscape.

Brands’ endeavor to augment returns for investors could see them inject funds into a resilient, inclusive, low-carbon future. Concerted efforts to create a sustainable future have largely counted on raw milk preservation, quality control technology, smart manufacturing and probiotics. Bullish strategies to bolster business ethics, transparency and anti-bribery mechanisms will help leading companies to underscore their ESG targets and rankings. 

Arla Navigates Sustainability Trends

A notable uptick in on-farm emissions has compelled incumbent dairy companies to emphasize sustainable development goals. An emphasis on green energy and the integration of grasslands into dairy farming could provide a silver bullet to ESG goals. Arla has set an audacious target of reducing on-farm emissions by 30% per kilo milk by 2030. Besides, 24% of the company’s farm owners produced renewable electricity from solar panels or wind turbines at their farms in 2021.

The brand fostered a carbon net zero commitment by 2050—it claims the cow manure in Sweden corresponds to 54 million liters of diesel. The company claims to have converted 70 million cartons of Lactofree milk from layers of virgin plastic to plastic from the side streams of paper production. Besides, it aims for 100% recyclable packaging by 2025 and is bullish on halving food waste in its operations and logistics by 2030. Environmental commitment will be instrumental in bolstering brand position and propelling ESG ranking.

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

Fonterra Co-operative Underpins Employment Generation

Food safety has become vital to underscore sustainability profile, look after people, and help farmers add value to the milk business. Fonterra has formed farmer engagement and support programs to collect milk from farms. The dairy giant has furthered farm assessment. In FY 2022, 57% of farmers were assessed in Australia, while 14% of farms were placed in the performance management process in New Zealand. 

Employment generation and income creation have garnered headlines in the dairy business. In 2022, Fonterra returned over USD 13.7 billion to regional New Zealand through the milk price. The dairy company directly employed 19,608 people—over 60% were based in New Zealand. Closing the gender pay gap has become an invaluable lever to boost social pillar. The ratio of female-to-male base salary in 2022 was pegged at 0.93 on a median basis and 1.07 on a mean basis. Meanwhile, the gender pay gap in New Zealand was 0.95 (median basis). The company is expected to review the experiences of Māori and Pasifika employees within its Aotearoa New Zealand teams. As of FY 2022, the dairy company has 15% ethnic representation in senior leadership.

Kraft Heinz Company Propels Governance Profile

Dairy product business seeks strategic direction, board diversity, transparency and ethics & compliance, similar to other industries, to stay ahead of the curve and underscore sustainability quotient. The Board of Directors at Kraft Heinz reviews ESG policies, processes and goals, while the ESG team interacts with customers, consumers, employees, stockholders, community leaders and NGOs. Its ESG Steering Committee Subcommittees foster transparency and collaboration, track emerging issues and hold monthly workgroups on animal welfare, sustainable packaging, responsible sourcing, product health, corporate & government affairs and sustainable agriculture.  

Kraft Heinz has undergirded ethics and compliance to set high standards for conducting business. The American food company offers training on issues, such as whistleblowing, due diligence and conflict of interest matters. The company also warrants all employees to maintain transparent, honest and forthright relationships with government officials, a significant stride towards effective compliance procedures. 

ESG stewardship calls for waste minimization, emission reduction, sustainable packaging, a healthy community and sound corporate governance. Forward-looking companies are likely to prioritize issues that matter the most to the business, stakeholders and society. The global dairy products market size stood at USD 481.08 billion in 2019 and will expand at around 2.5% CAGR between 2020 and 2027, infers Grand View Research. The billion-dollar industry could witness the paradigm shift created by evolving ESG goals.  

About Astra – ESG Solutions By Grand View Research

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

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

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 Wires and Cables Industry

Sustainable development of society and advancements in renewable energy in the wires and cables industry have revved up the transition to a greener world. The energy crisis in Europe, with fluctuating supply and high prices, has compelled leaders to invest in renewable energy generation and rigorous climate action. According to IEA, EU electricity demand dipped by 3% in 2022, alluding to an avoidance of 14 bcm of gas demand. In September 2022, Eurostat reported that consumer electricity prices in the EU were 35% higher compared to the preceding year. Bullish demand for high-quality cable solutions will encourage industry players to invest in ESG goals.

The promotion of diversity and inclusion has ushered women into leadership positions. Many sites traditionally dominated by men have witnessed a paradigm shift. For instance, NKT has set an audacious target of at least 30% women in senior leadership positions in 2025. In essence, women contributed 22% of the company’s senior management roles in 2022. These visible initiatives have amped up the confidence of stakeholders to bolster their sustainable business operations.

Key Companies in this theme

    • Belden Inc.

    • Fujikura Ltd.

    • Furukawa Electric Co., Ltd.

    • Leoni AG

    • LS Cables & System Ltd.

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

Environmental Perspective

Decarbonizing energy generation and enhancing energy efficiency have become pivotal to fostering an environmental profile. Concerted efforts to reduce emissions and foster clean energy could mark the beginning of a roadmap bolstering environmental performance. For instance, in FY 2021, the Fujikura Group performed activities to minimize CO2 emissions by 4% or more vis-à-vis FY 2018. In 2016, the Japanese company built the Fujikura Group Environment Long-term Vision 2050, acknowledging the Paris Agreement adoption and the goal to minimize CO2 emissions by 80% by 2050. It has also set the goal to achieve carbon-neutral plants by 2050. In pursuing increased RoI, environmental sustainability will remain paramount across the business vertical.

Social Perspective

Sustainable development has garnered headlines with the need for fair, inclusive and diverse work culture, irrespective of gender, disability, ethnicity, neurodiversity or orientation. Industry players are likely to prioritize work-life balance and gender equality to enhance well-being and boost mental health. LEONI is gearing up for women to account for 20% of senior management positions by 2030. It is contemplating reducing its global accident rate to 0.3 by 2023 and expanding local health protection projects by 2025. Leading players are poised to emphasize a safe and comfortable work environment full of diversity. Wires and cables manufacturers are expected to prioritize occupational health & safety, human rights, corporate mentorship programs and talent attraction. 

Governance Perspective 

A sound corporate governance structure with transparency and ethics & compliance has become fundamental to sustainable growth. Ethical behavior has become paramount for data ethics, cyber security and combating bribery and corruption. Predominantly, Belden has set an audacious goal of achieving an understanding of the Code of Conduct from 100% of global non-productive team members. In 2020, the company formalized ESG’s board oversight; its ESG Steering Committee is responsible for ESG procedures, practices and other aspects. The company has taken a giant stride in fostering board diversity. In 2023, the St. Louis-headquartered company appointed a new Vice President of Diversity, Equity and Inclusion to create and strengthen an environment of equity. Promoting a company culture that prioritizes employees, customers and other stakeholders with sustainability goals will stay ahead of the curve. 

Wires and cables manufacturers and suppliers have created a forward-looking approach towards business ethics and environmental goals through a strong ESG roadmap. For instance, Hellenic Cables is committed to achieve net-zero GHG emissions by 2050. Besides, in 2021, it donated cables for infrastructure needs to institutions, including Municipality of Loutraki, Local Government of Evia and Municipality of Corinth, among others. These trends favor Grand View Research’s projection of the wires and cables market growing at a 4.4% 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.

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