The Role of ESG Reporting 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. 

Related Reports:

Luxury Footwear Industry ESG: https://astra.grandviewresearch.com/luxury-footwear-industry-esg-outlook

Handbag Industry ESG: https://astra.grandviewresearch.com/handbag-industry-esg-outlook

Disposable Gloves Industry ESG: https://astra.grandviewresearch.com/disposable-gloves-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.

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

ESG and Future Trends in the Life Science Analytics Industry

Business goals in the healthcare and medical sectors are increasingly linked with big data, so much so that life science analytics has become a major proponent of environmental, social and governance (ESG) practices. At a time when life science companies are painstakingly emphasizing the manufacturing and distribution of medicines, research and development and innovation, sustainable reporting has become instrumental in solidifying their brand positions. ESG reporting can be the silver bullet to retain talent and drive business results with a positive influence on society and the best possible outcome for all.

A concerted and sustainable effort to expedite replacement, reduction and refinement to foster new research models, approaches and tools has panned well. Several organizations are banking on diversity to minimize attrition rates and employees who prioritize environmental issues and social factors for good health. Furthermore, policymakers, consumers, employees, investors and venture capitalists have prioritized transparency, leadership behavior, opportunities and pay parity.

IBM Views Sustainability as Vehicle to Drive Business

Business leaders have fostered their roles in the environment portfolio to bolster carbon footprint monitoring and develop recycling initiatives. Life science companies are poised to play an invaluable role in combating climate change. The 2021 UN Climate Change Conference (COP26)—Glasgow Climate Pact—has potentially encouraged companies to move towards a low-carbon and more sustainable path. IBM will use renewable sources to procure 75% of its global electricity consumption by 2025, the giant mentioned in its 2022 ESG report. The company is also committed to implementing at least 3,000 new energy conservation projects to offset the consumption of 275,000 MWh of energy from 2021 through 2025.

With IBM expecting to reach net-zero operational GHG emissions by 2030, it has addressed market-based scope 1 and 2 emissions and scope 3 emissions (linked with electricity consumption) at third-party co-location data centers. Besides, the technology behemoth pegged its weighted average power usage effectiveness (PUE) at 1.52 in 2022 vis-à-vis 1.552 PUE (baseline) in 2019. Commitment to environmental leadership has received an impetus, creating a path to reduce climate-related risks.

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

Wipro and Novartis Up Social Commitment to Turn ESG Goals into Actions

Employees and consumer safety are pivotal to further sustainable goals as companies foster social targets to underpin the business strategy. So much so that ESG-themed bond has become pronounced to make drugs more accessible to everyone. In September 2020, Novartis reportedly became the first pharma company to issue a sustainability-linked bond at EUR 1.85 billion (USD 2.2 billion) to impel patient reach in low- and middle-income countries (LMICs). The company is bullish on augmenting patient reach in LMICs through strategic innovative therapies by 200% by 2025.

Wipro underpinned its social profile with an infusion of funds into an inclusive and diverse culture that fosters sustainable performance. The Indian giant has implemented buoyant policies to attract and retain LGBTQ+ employees. It has apparently revised group mediclaim insurance and the medical insurance scheme to include same-sex partners of employees. In February 2021, Wipro was named in the Human Rights Campaign Foundation's Corporate Equality Index (CEI)—the U.S. corporate policies and practices pertaining to LGBT workplace equality. Cultivating a culture of inclusion will sow the seed of a plurality of ideas and embrace all forms of differences.

Accenture Invests in Board Diversity to Pave Path with Vision and Value

Gender-diverse boards are widely linked with better engagement, increased investment efficiency and increased work-life balance. The trend toward transparent disclosure and creating an equitable environment can be contagious. Accenture infers that 50% of its board of directors is women, while 50% is racially and ethnically diverse. The company's 2021 U.S. workforce data reveal that it has fostered the number of Asia Americans and Asia executives by 3.5 percentage points. The service company is gearing up to achieve its 2025 goals of boosting representation of Black, African American, Hispanic American and Latinx among its leadership and workforce. Forward-looking companies are expected to uphold sound corporate governance practices to ramp up their ESG objectives.

Amid medical device, pharmaceutical and diagnostic regulatory scenarios changing, top-performing companies are poised to inject funds into sustainable goals. Tax transparency, for instance, is invaluable to building trust among stakeholders. Plastic packaging tax in the U.K. came into force in April 2022, with the charge pegged at £210.82 per ton from 1 April 2023 on plastic packaging with less than 30% recycled plastic, imported or manufactured into the U.K.

Price transparency in hospitals has gained a considerable uptick, a compelling portfolio to raise the ESG bar. In January 2021, each hospital functioning in the U.S. have been required to offer accessible and clear pricing information online about services and items. With the ESG pressure compelling businesses to enhance their sustainable value chain, Grand View Research forecasts the global life science analytics market to exhibit a 7.7% CAGR between 2022 to 2030.

Related Reports:

• Clinical Trials Industry ESG: https://astra.grandviewresearch.com/clinical-trials-industry-esg-outlook
  
  
• Antibiotics Industry ESG: https://astra.grandviewresearch.com/antibiotics-industry-esg-outlook 
  
  
• Biotechnology Industry ESG: https://astra.grandviewresearch.com/biotechnology-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.

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

Unlocking the Potential of the Digital Payments Industry ESG

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

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

PayPal Propels Science-Based Targets (SBTs)

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

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

Global Payments Underscores Philanthropic Activities

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

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

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

JP Morgan Embeds Transparency and Accountability

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

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

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

Related Reports: 

• Digital Lending Industry ESG: https://astra.grandviewresearch.com/digital-lending-industry-esg-outlook
  
  
• Real-time Payments Industry ESG: https://astra.grandviewresearch.com/real-time-payments-industry-esg-outlook
  
  
• E-commerce Industry ESG: https://astra.grandviewresearch.com/e-commerce-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.

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

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!

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