Why has ESG made its mark in Synthetic Leather Industry?

Environmentally friendly textiles have received an uptick globally with designers, entrepreneurs, venture capitalists and other stakeholders gearing up to boost their synthetic leather industry profiles. As consumers become more conscious about sustainability, manufacturers are likely to take a giant stride in making ethical choices. Synthetic leather tends to have less impact pertaining to GHG, depletion of fossil fuels, water used for production and animal abuse. Moreover, the application of solvent-free polyurethane and polyolefin heat shrinkable elastomer resins has played a pivotal role in minimizing volatile organic compounds.

The synthetic material has gained ground to be refurbished, repaired, repurposed and recycled. Lately, artificial leather has come on the horizon to play a pivotal role in reducing plastic, using organic waste and reducing environmental impact. Besides, the use of vegan leather has amassed popularity, partly due to the soaring awareness on sustainability. Prominently, environmental concerns pertaining to leather production have encouraged stakeholders to partake in ESG strategies. Stakeholders, including manufacturers, brands, suppliers and investors are expected to bank on sustainable solutions, including the use of high-grade artificial leathers stemming from non-toxic dyes and recycled polyester. 

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

Environmental Perspective

The need to create sustainable leather has added a fillip to the prospect of synthetic materials. Stakeholders have prioritized the significance of zero discharge of hazardous chemicals amidst a global push to contain pollution. Companies of all sizes and sectors have realized the need to foster their sustainability portfolio and live up to ESG responsibilities. To illustrate, Smit & Zoon aims to create an environmentally and socially sustainable leather supply chain by 2025. The company is gearing to develop innovative leather-making processes and chemistry to boost circularity by 2025. It has also used Gold Standard Verified Emission Reductions certification program to further its environmental profile. The Netherlands-based company has updated its Product Passport and adopted wastewater guidelines, Life Cycle Assessments, compostability, biodegradability and circularity. 

Forward-looking companies have shown an increased inclination for bio-based polyurethane that provides a notable bio-based carbon content and minimizes CO2 emissions. Besides, vegan leather has become a beacon of growth and innovation. In essence, a soaring number of vegan materials could be a vital cog in saving products and reducing waste from landfill. The expanding applications of vegan leather products from repurposed and reused materials are expected to help reduce landfill waste.  Moreover, artificial leathers in cars have witnessed profound growth as companies strive to adopt natural ingredients. Synthetic materials could be an invaluable addition to upgrading vehicles with automakers emphasizing the use of sustainable materials. Prominently, Tesla uses vegan leather as its supplier Ultrafabrics asserts it can replace animal leather. At a time when the auto sector has become one of the largest consumers of artificial material, synthetic leather could be a game changer in cabin upholstery and car seats. 

Social Perspective

The year 2023 and beyond could observe an unprecedented rise to strengthen healthy and safe workplaces and minimize employee turnover. Organizations are gearing up to boost people’s well-being and mental health through the adoption of bullish policies, training and certification to ensure the safety of employees. For instance, Stahl introduced the Road to Zero (R20) program to emphasize the integration of safety into the company’s culture and zero-tolerance policy on unsafe behavior. The company is also committed to do away with the restricted substances in the value chain. It has made a significant stride in chemical safety in Bangladesh. Solidaridad alluded to a collaboration with Stahl in Bangladesh in its 2021 Annual Report. The partnership saw them initiate sustainable practices in the industry in India and Bangladesh. The Dutch NGO kicked off a new project and claims to have covered around 80% of the leather clusters in India. 

Stakeholders have also vouched for the training and development of leather technicians and designers and the hiring of young and talented workforce. The onslaught of the COVID-19 pandemic compelled in-person training to take a backseat. During 2021, Stahl provided access to online training through an e-learning catalog and upped investments in cybersecurity, compliance and growth of soft skills. In 2021, it finalized the Automotive Leather Finishing Post Graduate Certificate course for some of the students and postponed it to 2022 for those who could not attend owing to travel restrictions. During the year, the company claims over 2,000 people from around 150 organizations attended Stahl Campus training courses. 

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

Governance Perspective

The tailwinds for a sound corporate governance system have encouraged investors and other stakeholders to count on fair management and improved corporate value. For instance, Kuraray has formed corporate governance functions under the aegis of its BoD and Board of Corporate Auditors to boost the monitoring functions and effectiveness of supervisory. The board of corporate auditors comprises 5 auditors, with at least three of them being independent outside corporate auditors and one female corporate auditor. The company has also formed the Corporate Advisory Committee consisting of outside experts and officers to bolster its governance portfolio. 

Leading players are reinforcing the need to focus on labor and human rights, sustainable procurement and ethics. Smit & Zoon addressed the UNG SDG goals 6,8,12,13,17 and materiality matrix facets, such as water & effluents, occupational health & safety, anti-corruption, environmental compliance, water & effluents, customer health & safety and energy. Additionally, Responsive Industries took a giant leap to foster workplace safety for women. The company noted in its Annual Report 2022 that it laid down Internal Complaints Committee for redressal of sexual harassment of female employees at workplace. It has also introduced a system that will help employees and directors to report issues regarding suspected or actual fraud, unethical behavior and violations of the company’s code of conduct and ethics. 

With synthetic leather-related products garnering notable demand, there are challenges and opportunities for stakeholders to embrace ESG goals. To illustrate, Stahl inferred that around 90.23% of its employees had a permanent contract in 2021. Meanwhile, in July 2022, Sage-ONF rolled out silicone synthetic leather in China. It will help to keep up with the demand for mobility interior, thereby boosting sustainability commitments through the petroleum-free and non-carbon-based solution. These trends complement the valuation of the global synthetic leather market at USD 36.24 billion in 2022. Well-established players will strive to underpin their core competencies and offer products that will propel ESG performance.  

 About Astra – ESG Solutions By Grand View Research

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

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

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

Why is ESG a Win-Win Solution in Kitchenware Industry?

Stakeholders are leveraging innovation in pursuit of enhancing life at home as kitchenware industry players emphasize agility and resilience. Social and environmental sustainability have created value with companies envisaging investment in home appliances to broaden ESG commitments. A sustainable future could redefine ESG goals, including reducing emissions, enhancing energy efficiency, prioritizing diversity and doing away with single-use packaging. ESG management has become instrumental in ensuring efficient progress with an emphasis on quality improvement, ecological environment, employee welfare system, occupational health & safety, business ethics and protection of customers’ rights and interests. 

Prominent players are well-positioned to assess and address risks, opportunities and impacts in the kitchenware landscape and navigate the robustly evolving space of ESG frameworks. Notably, the global push for sustainable development goals (SDGs) could propel the sustainability quotient to enhance business operations and benefit customers, communities, suppliers and employees. The adoption of ESG factors will provide a slew of upsides, including increased job satisfaction, reduced safety-related cases, and a productive workforce.  

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

Environmental Perspective

Climate strategies and roadmaps for greenhouse gas emission reduction have come to the horizon as companies seek to contribute to global efforts to propel sustainability. Carbon efficiency has received uptake with companies bolstering their strategies and measures. For instance, in June 2022, Dollarama established its first Scope 1 and Scope 2 emissions intensity reduction target. The company has set the 2030 target with strategies, including minimizing dependence on fossil fuels, enhancing the energy efficiency of stores and augmenting use of clean energy and renewable sources. An emphasis on the environment will not only have a positive influence on returns but also negate the risk to investments. Prominently, Whirlpool has placed science-based targets for greenhouse gas reductions and sustainability goals. 

Kitchen companies are foraying into innovation and technology to address key issues and challenges. Whirlpool created a sustainable product playbook in 2021 with chapters on sustainable packaging and recycled plastic content. The company has exhibited an increased inclination for the reduction of GHG emissions and addressing plastic pollution—it alludes to using 8% recycled plastic in dishwashers. The American home appliance company set a compelling target to use an average 18% recycled plastic content by 2025 in the EMEA region. In 2021, while it showcased the technical feasibility to use recycled PP in home appliance applications, it also suggested that 28% of its manufacturing sites garnered higher Environmental Pillar scores. During the same period, 90% of sites received Zero Waste to Landfill (ZWtL) Gold or Platinum status and the multinational manufacturer attained GHG emissions scopes 1 & 2 Intensity and Water Intensity. Robust implementation of bullish initiatives and emphasis on renewables could act as a catalyst and offer sustainable upsides to kitchenware suppliers and manufacturers. 

Social Perspective

Creating and maintaining a zero-tolerance policy towards racial marginalization and recognizing the values of an inclusive workplace have provided avenues of growth. A diverse workforce with an emphasis on female representation, black and underrepresented minorities and goodwill in local communities has remained a vital cog to foster the ESG profile. Tupperware injected funds into mental health facilities and leapfrogged towards attaining global certification for gender equity in practices, pay equity, representation, skill-based hiring and inclusiveness. In 2021, women accounted for 68% of all new hires and 58% of the global workforce in Tupperware. Moreover, the U.S.-based company launched a workplace engagement survey, bolstered its internal communications and standardized bonus programs. The product manufacturer held talent assessments of managers and rolled out an e-learning platform, providing over 16,000 courses. The company asserts around 60% of Associates viewed more than 360 hours of content from courses, learning paths and videos. 

Companies have also furthered their investments in training & development and employee welfare schemes. A prudent ESG strategy would potentially focus on products that can be accessible for underprivileged groups, including pregnant women, the elderly and children. LG has introduced braille stickers to help the visually impaired to use the function buttons. Besides, the South Korea-based company has created a safe working environment to provide an independent safety culture, boost employee satisfaction and offer a sustainable workplace. In an effort to propel diversity, LG aims to augment the ratio of female employees in Korea to 20% by 2030. Additionally, the company has operated childcare and breastfeeding facilities across 10 business sites in Korea, indicating a bullish approach toward ESG performance. 

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

Governance Perspective

Responsibilities for ESG-related opportunities and challenges reside with the Board of Directors. Well-established brands and emerging companies have come to the fore to create value through sound governance and the highest standards of legal & ethical conduct. Governance targets pertaining to the diversity of the Board of Directors strengthen the company profile in the global landscape. Some of the facets, such as internal audit, risk management, ethics & compliance have witnessed pronounced attention. In essence, the Board of Directors at Tupperware comprised 45% women as of December 2021. Meanwhile, Dollarama had over 30% female representation on its BoD in 2021. Besides, Tupperware formed a bullish roadmap for enterprise risk assessment in 2021 and hired a new Director of Compliance to underscore compliance department leadership. The company aims to use ESG metrics in employee performance and compensation goals by 2030. 

In a bid to underpin shareholder value over the long term, industry players have prioritized a smooth corporate governance structure. Board of directors tend to focus on ESG issues, including employee safety, climate, cybersecurity, human capital management, financial, marketing and inclusion & diversity. In doing so, companies have also vouched for the independence of the BoD to bolster the ethos of the decision-making right and explore new avenues of growth engines to boost corporate growth. To illustrate, the ESG committee at LG Electronics comprised four independent directors to supervise risk response pertaining to ESG and explore sustainable and long-term growth. 

The competitive landscape has witnessed a paradigm shift as organizations vie to achieve the company’s vision of customer satisfaction and underpin ESG frameworks. With companies emphasizing environmentally friendly and solution-oriented kitchen products, boosting ESG goals could nurture a sustainable future. The global kitchenware market is poised to register around 5% CAGR through 2025, largely due to the influx of funds into sustainable products and solutions. 

About Astra – ESG Solutions By Grand View Research

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

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

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

Environmental, Social and Governance (ESG)— A Pivotal Approach to Business in Lubricant Industry

As lubricant industry players face compelling challenges around sustainability issues, including product recyclability and greenhouse gas emission reduction, they are poised to focus on recycling and recovery of lubrication packaging into their ESG goals. Venture capitalists and other investors are prioritizing investment in sustainable businesses with environmental, social and governance concerns integral to corporate strategy. Bespoke solutions to reach sustainability and decarbonization goals could gain ground. ESG will remain pivotal in enhancing business ethics, creating sustainable growth with a resilient supply chain, retaining employees and attracting customers. 

Forward-looking players are expected to foster their footprint on ESG standards that have become invaluable in gauging a company’s capability to make an informed decision. ESG factors are likely to play a vital role in containing organizational risks. It has emerged as the main cog in corporate policies and practices with investors and businesses gearing to address workplace safety, inclusion, access to affordable healthcare and environmental equity. The need for ESG disclosure has shaped how companies allocate funds in the global landscape, and the demand for accountability has underscored ESG disclosure to track sustainability performance. For instance, businesses in Europe are obliged to report the proportion of investment considered sustainable in line with EU regulations. 

Discover more regarding the practices and strategies being implemented by industry participants form the Lubricant Industry ESG Thematic Report, 2022, published by Astra ESG Solutions

Environmental Perspective

Environmental, social and governance aspects are at the forefront as prominent players gear to overcome social, economic and environmental challenges. Leading players are poised to improve, respond and recover their resilience to the shifting ESG landscape. Investors are inclined to know how companies will respond to social, environmental and economic landscape and related opportunities and risks. A host of companies has come forward to publish sustainability reports as organizations across geographies, industries and company sizes allocate more resources toward enhancing ESG. According to the Governance & Accountability Institute, Inc. (G&A) 2021 Sustainability Reporting, 92% of S&P 500 Companies and 70% of Russell 1000 Companies published sustainability reports in 2020. 

A significant part of ESG growth is mainly attributed to environmental factors and apt responses to climate change. Companies are likely to contribute disclosures in energy efficiency, biodiversity, environmental management, water efficiency and GHG emissions. For instance, Chevron Shipping could disclose vessels’ climate alignment scores leveraging the Sea Cargo Charter methodology from 2023. Further, the environmental impact of lubricants has prompted vital players to provide impetus to bio-based lubricants that can boost the sustainability quotient through high viscosity index, enhanced water quality and longer equipment life. Prominently, BP aims to contain scope 1 and scope 2 emissions globally by 30% by 2030. On the other hand, Shell has been providing carbon-neutral lubricants, including biodegradable multi-purpose grease and energy-efficient high viscosity index hydraulic oils to offset carbon footprint. 

Social Perspective

On the social front, lubricant companies have emphasized data privacy, product quality, employee development, community support and development. Stakeholders have dubbed social license as corporate oxygen—impossible to survive without it. Some social practices, such as promoting equality and diversity in the workplace, providing training and well-being support and underpinning local and national charities will augur well for leading companies in the landscape. 

According to Grand View Research Lubricant Industry ESG Thematic Report 2022, Idemitsu Kosan tops the chart in the social category with an impressive score of 70%. The tag is partly due to the institutionalization of human rights monitoring mechanisms across its supply chain operation. Besides, most companies are ISO 45001 standards certified and have rolled out robust healthcare plans and programs, H&S training and health insurance—promising factors bolstering employee retention rates. Meanwhile, Lukoil had the highest employee turnover rate (6.7%) in 2020 amidst comprehensive healthcare plans.

Prominent players have left no stone unturned to underscore their social and community investments. For instance, in 2020, Chevron contemplated injecting USD 15 million to underpin the Black community in the U.S. to address equity barriers. Besides, in 2021, the company poured USD 6.6 million into non-profits and community organizations in Kern, Fresno, and Monterey counties. The U.S.-based company is also said to have employed more than 700 full-time employees, along with 1,600 contract employees in those counties. Incumbent players are poised to get a grip with social factors as the building block of a sustainable world. 

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

Governance Perspective

Governance is envisaged as an indicator of how transparent, accountable and ethical a company is with stakeholders. It also highlights board structure, audit committee functioning, board independence and financial audit and control. An emphasis on governance could bode well with investors and customers and encourage sound risk management practices. Chevron is at the pole position in corporate governance, notes the ESG scoring model of Grand View Research. It has more than 90% independent directors—the highest in terms of a board comprising independent directors. The American multinational energy corporation established a Supplier Diversity Governance Board providing strategic direction and oversight of supplier diversity strategy across its U.S.-based units. With solid governance being the foundation to create value for stockholders, board members are expected to review operational, financial, market, political and other risks that are inherent in the business. 

ESG is a valuable consideration—one that goes beyond philanthropic perception and is paramount to sustainable development. In essence, Royal Dutch Shell scored more than 80% in corporate governance—second to Chevron. The former has the highest percentage of female members on its board, taking a giant leap toward gender equality. The company is gearing to surpass or reach 40% of women in senior leadership by 2030. Governance will likely leverage companies to cash in on and manage various ESG risks and opportunities. 

Well-established players and new entrants are slated to integrate ESG practices to foster brand reputation, propel sustainability and minimize costs. Companies are likely to focus on generating more environmentally friendly and efficient lubricants. For instance, in March 2021, Castrol rolled out the PATH360 strategy sustainability strategy with 2030 aims and focus areas, including reducing carbon, saving waste and enhancing lives. Stakeholders are bullish on the prospect of lubricants against the backdrop of heightened product demand and emphasis on ESG frameworks. The global lubricant market size garnered USD 125.81 billion in 2020 and could witness a 3.7% CAGR from 2021 to 2028. 

About Astra – ESG Solutions By Grand View Research

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

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

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

Embedding ESG Policies in 3D Printing Industry

Sustainability priorities of environmental stewardship, workers’ safety, human rights and sound governance have become pronounced in the 3D printing industry. Additive manufacturing (AM) technology and solutions are well-placed to influence global issues and foster improvements through innovations, training, education and carbon footprint reduction. 3D printing, post-COVID-19, has become a game-changer as companies seek to assess the untapped potential of additive manufacturing. Prominently, 3D printing has amassed huge popularity among manufacturers, engineers and designers to keep up with the need for responsible energy consumption. Moreover, recycling, reducing, repurposing, reusing and repairing have ushered innovation in the global landscape. Companies are expected to exhibit product improvements and complement transparency, fairness, regulated, ethical and compliant operations.

3D printed parts and products have become palpable in end-products, including athletic shoes and printed cars. Stakeholders are exhibiting traction for additive manufacturing programs and embracing the responsibility to enhance lives and protect the environment. Exponential growth in digitization and a paradigm shift witnessed in the energy transition towards renewables have redefined the 3D printing landscape. Additive manufacturing could be instrumental in aerospace, manufacturing, automotive and healthcare sectors to reduce lead time, and material cost, leverage on-site production and underpin growth with sustainability targets. Amidst surging pressure to address supply chain issues and keep up with energy efficiency needs, industry players could explore opportunities in 3D printing. 

Discover more regarding the practices and strategies being implemented by industry participants from the 3D Printing Industry ESG Thematic Report, 2023, published by Astra ESG Solutions

Environmental Perspective 

A notable shift towards AM technologies could lead to less energy consumption, reduced waste, optimized and enhanced supply chains and more recycling. In July 2021, eight companies joined the bandwagon to be part of the Additive Manufacturer Green Trade Association (AMGTA) to educate and promote the green upsides of 3D printing. Similarly, in May 2022, the global trade organization announced that 20 member companies received the 2022 Sustainability Awards. AM technologies are expected to boost environmentally friendly methods of manufacturing, mainly attributed to the innate ability to manufacture closer to the point of need, minimize material consumption and redesign parts to reduce energy consumption and weight. 

Pioneering products, services and state-of-the-art technologies are unlocking opportunities and measuring sustainability metrics in line with ESG goals. The trend has become prevalent and prompted stakeholders to inject funds into sustainability portfolios. In December 2020, 3D Systems announced the rollout of its ESG initiative, bolstering its commitment to leveraging AM solutions for a host of applications. Companies are poised to advocate for sustainable technologies that will help minimize carbon emissions and eradicate waste. Notably, AM uses merely the material required to produce the final part, thereby playing an invaluable role in bolstering sustainability. 

Social Perspective

3D printing has come on the horizon as a vital cog in fostering employees’ health and safety and social programs, including entrepreneurship and STEAM education. In April 2022, it was reported that Stratasys offered access to dozens of 3D printers and funded the FIRST Robotics Competition for high school students. The company also introduced the “learning by making” program with Jerusalem Municipality, spanning across state-religious, independent-religious, state-secular and Arab schools. Additionally, the company was reported to be resilient amidst havoc wracked by the COVID-19 pandemic. Stratasys inferred in its 2020-2021 ESG and Sustainability Report that it reduced the work to 80% capacity till the end of 2020. It helped them do away with the pandemic-induced layoffs. The company offered mental health seminars on depression, social connections and loneliness. Besides, it organized an in-person summer camp in 2021 to provide fun and relief to the teams and their families.

Stakeholders have furthered their focus on diversity to add value for shareholders, employees and customers. In doing so, embracing diverse teams could propel an inclusive culture and complement employees’ unique identities, experiences and backgrounds. For instance, in 2021, GE updated a few voluntary self-identification categories and selections pertaining to sexual orientation and gender identity (based on employee feedback). The company asserted in its 2021 Diversity Annual Report that around 3.7% of its U.S. employees identified themselves as having a disability, while over 10% of the U.S. employees are military veterans. Amidst call for equal pay for all, GE is gearing to attain 100% pay equity in each of its businesses.

Is your business one of participants of the Global 3D Printing Industry? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices.

Governance Perspective

Stakeholders demand greater traceability and transparency as companies seek to build trust with customers, communities, investors and other parties. Corporate governance has come to the fore as an invaluable pillar to running a business sustainably. Additive manufacturing companies are expected to devote attention to corporate governance policies, and guidelines and invest in data-driven products and solutions. Leading players are emphasizing independent leadership for a robust compliance and internal controls with applicable laws, policies and regulations. Notably, Autodesk infers in its 2022 Impact Report that 90% of its Board of Directors are independent, while 50% are women. 

Stakeholders are counting on AI and ML to streamline the business. Forward-looking companies anticipate additive manufacturing to foster logistics systems and bolster resilience through the incorporation of environmental and social aspects. Leading players are likely to prioritize sustainability reporting frameworks to further organizations’ governance disclosure. In essence, GE offers disclosure as per SASB standards and provides climate-related disclosures in line with the TCFD framework. For instance, the organization has been disclosing how it assesses, identifies and manages climate-related risks. Meanwhile, Eaton has set an audacious target (2030 Sustainability Target) of over 50% enhancements in safety metrics, disclose U.S. minority and global gender pay equity assurance results, and ensure no human rights violation from major suppliers. It has also set report priority issues in line with TCFD and SASB requirements. The company asserted that around 65% of its net sales stemmed from sustainable solutions in 2021. 

As 3D printing brings a seismic shift in the global landscape, stakeholders are gearing to augment their leadership position in ESG. In doing so, prominent manufacturers and suppliers are poised to inject funds into organic and inorganic growth strategies. To illustrate, in November 2022, Stratasys announced the pouring of USD 10 million in Axial3D, wherein both companies will render a joint offering to provide the accessibility of patient-specific 3D printing solutions for medical device manufacturers and hospitals. Prevailing trends indicate the global 3D printing market size could register an impressive CAGR of 20.8% from 2022 through 2030. Industry dynamics suggest sustainability priorities will witness an upward growth trajectory with a focus on, including but not limited to, people-first strategies, innovation, climate actions and transparency. 

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

Fintech Players Hone ESG Strategies in Digital Lending Industry

Fintech companies, banks and non-banking financial players have exhibited traction for digital lending to streamline seamless loan disbursement, approval, recovery, credit assessment and other credit services through remote and automated lending processes. On the heels of the COVID-19 pandemic, banks are scampering to play their part in the environmental, social and governance concerns. In a bid to help transpire a greener, transparent and resilient world, digitization of the lending process could bring a tectonic shift, such as enhanced customer experience, and better decision-making. Prominently, an uptick in collaboration between investors and firms taking ESG into account has provided an impetus to banks and fintech players. 

Digital lending has added a fillip to financial inclusion, particularly assisting borrowers who may not reap benefits from formal finance sources. Banks are exploring opportunities in ramping up and automating credit processing, including digital lending and imbibing ESG considerations into lending decisions. The trend for end-to-end e-invoicing and payment solutions to help businesses with easy digital transactions has become pronounced among fintech and banks. Giving and recovering loans through apps and web platforms have become popular. A surge in mobile money accounts has expedited the advanced financial services that can reduce cost, boost transparency and streamline services. However, the prevalence of micro-financial risks and chances of spillovers to the economy have warranted regulation. In September 2022, the Reserve Bank of India issued guidelines on digital lending and emphasized that regulated entities should ensure the lending service providers and digital lending apps adhere to the guidelines mentioned in the circular. 

Investors are likely to prioritize environmentally sustainable strategies amidst a data-led credit process gaining ground globally. 

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

Environmental Perspective

The need for an organic financial model that is in line with the environmental paradigm has become paramount for an organization to be truly sustainable. At a time when fintech lenders are navigating opportunities in state-of-the-art technologies, including AI and machine learning, investments in environmental pillar could give them an edge in the competitive ecosystem. For instance, ICE Mortgage Technology is committed to a 50% reduction in scope 1 and 2 emissions by 2032. It has also implemented data center air management, optimal thermal stratification, automated lighting control systems, and high-efficiency HVAC facilities, playing a vital role in its Power Usage Effectiveness (PUE) outperforming the base building design by around 14%. The company has also purchased renewable energy credits for electricity consumption in data centers and offices. A bullish approach towards sustainability will foster their brand position in the global landscape.

Social Perspective

Of late, an inclusive financial ecosystem has come on the horizon for social progress with access to borrowing and capital opportunities. Companies are offering competitive and comprehensive upsides to foster employees’ well-being, health, financial security, diversity, and inclusion. In essence, Fiserv has formed a solid partnership with Black colleges and universities and the National Black MBA Association in the U.S. In 2021, the Fiserv Back2Business initiative augmented its commitment to USD 50 million which initially stood at USD 10 million for minority-owned small businesses affected by the COVID-19 outbreak. Furthermore, the company has invested in workforce diversity as it asserts that 34% of employees are diverse in race or ethnicity. Companies have increased banking on social strategies as an integrated part of their business process. 

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

Governance Perspective

Fintechs and banks have been championing the significance of ESG for the sustainability of the business. Assessment of ESG-related opportunities and trends has largely been fueled by the governance aspect. The operation of companies in an ethical manner to dissuade corruption and bribery has become pronounced. Notably, Newgen Software has furthered its commitment to a high level of transparency, accountability and integrity. With a two-tier governance model, the company comprised 7 directors (as of March 31st 2021), out of which 4 directors were non-executive directors (independent), while three were executive directors. The Board has prioritized innovations in business strategies, diversity, strategic planning and analysis and compliance requirements for transparency, accountability, and safeguard of shareholder interest. Given the risk of a data breach, stakeholders have also emphasized risk management to provide state-of-the-art security of operations and curb business disruptions. 

Concerted efforts in risk oversight, business strategy, succession planning, ESG and financial reporting could provide an edge to key players. The digital lending market size stood at USD 5.84 billion in 2021 and could register an impressive CAGR of 25.9% from 2022 through 2030. Strong demand for quick access to working capital for daily operations will provide impetus to the growth of the advanced lending process. 

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

Top 6 Companies Underscoring ESG Profile in Paints and Coatings Industry

Sustainable and innovative solutions, underpinned by ESG goals, have garnered immense traction in the paints and coatings industry. Substituting hazardous substances and minimizing energy demand have posed challenges to stakeholders. Needless to say, paints and coatings offer essential coatings for offshore wind power plants, add color to the spaces, boost durability and underpin the transportation and hygienic production of food. The substance has had a vital role in helping minimize the environmental footprint, largely due to its innate ability to boost recyclability and bolster the life cycle of several products. 

Lately, key players have explored opportunities in waste management and efficient production processes. However, several companies in the paint industry have been accused of greenwashing—using sustainability as a marketing gimmick—to hide their environmental lapses. The UN chief has been vocal in pushing for zero tolerance for net-zero greenwashing. According to the competition regulator in the U.K. Competition and Markets Authority, 40% of green claims made online could be misleading. 

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

EU’s corporate sustainability reporting directive (CSRD) will compel companies to disclose comprehensive data to enhance the assessment of their sustainability efforts. It is worth noting that the EU Council gave a nod to CSRD in November 2022, a buoyant step to curb divergent sustainability standards, propel the company’s accountability and ease the transition to a sustainable economy. In March 2022, the British Coatings Federation (BCF) rolled out the “Green Claims Guide to Decorative Paints” to tackle greenwash claims in decorative paints. BCF asserted that the use of the terms “VOC free” and “Zero VOC” are false claims and should be avoided in the paint industry. 

The U.S. Federal Trade Commission initiated a set of Green Guides to help marketers ensure their claims are not deceptive. Prominently, Green Guides were first issued in the U.S. in the early 1990s. In December 2022, the FTC sought public comments—on the term “recyclable,” “recyclable content,” need for additional guidance and carbon offsets and climate change—on the likely updates to the Green Guides. 

Leading companies that have propelled their ESG strategies are delineated below: 

1. Sherwin-Williams Pits on Environmental Targets to Gain Ground

The environmental profile has garnered prominence as sustainability continues to steer the growth across business verticals. Companies are pushing to the limit and finding ESG as a pivotal portfolio to contain carbon emissions and reduce waste in their value chain. Sherwin-Williams laid down its 2030 environmental footprint targets—to minimize waste disposal intensity by 25%, curb absolute Scope 1 and 2 greenhouse gas emissions by 30%, boost operational energy efficiency by 20% and expedite electricity from renewable sources to 50% of total electricity usage. The company notes that failure to mitigate environmental impact and emissions or respond to shifting consumer behavior and preferences could have repercussions in the form of reduced demand for products and services.

2. AkzoNobel Propels Carbon Neutrality Commitment

Companies, such as AkzoNobel have recognized the significance of ESG and underpinned their sustainability quotient. The Netherlands-based company committed to becoming carbon neutral by 2050 and has used a holistic Sustainable Product Portfolio Assessment (SPPA) framework. The chemicals firm is on course to becoming a zero waste company by 2030—77% reduction in waste to landfill was witnessed in 2021 vis-à-vis the preceding year. It has also developed wood coatings to foster manufacturing efficiency and energy-saving powder coating to provide 30% more output. 

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

3. PPG Industries Banks on Diversity, Equity and Inclusion to Stay Ahead of the Curve

Paints and coatings manufacturers have exhibited an unwavering commitment to further a culture of diversity, equity and inclusion. Chemical companies are leaving to stone unturned to propel the leadership roles for women and under-represented ethnic or racial groups. Not to mention, leading players have furthered their investments in bullish initiatives to strengthen accountability and engagement. In essence, PPG mentioned in its 2021 ESG report that an infusion of USD 7.4 million was made to underscore racial equity with educational pathways for people of color and black communities. It also injected USD 13 million to foster education and community sustainability in communities globally, while it is also committed to pouring USD 20 million from 2020 through 2025 to boost educational opportunities and social justice in underrepresented communities. 

4. Nippon Paint Holdings Emphasizes Occupational Health & Safety

Global watchdogs have pushed for increased health measures as chemicals manufacturing is prone to accidents and health hazards. Investments in workplace safety have become pronounced to undergird the social profile.  In 2022, Nippon Paint embraced the Group-wide Global Code of Conduct that considered stakeholder and employee safety in its activities. Meanwhile, in FY 2020, the Japanese behemoth updated the risk assessment lists to identify and address serious risks, including explosions and fire that lead to operation suspension. It has also put the spotlight on safety training programs. The company offered an online ISO internal auditor training course to 113 participants, online follow-up training to 78 new employees and online entry training to 89 new employees. 

5. BASF Navigates Opportunities in Corporate Governance

Transparent and effective corporate governance has become indispensable to supervising and managing organizations and enthusing the confidence of financial markets, investors, employees, customers and other stakeholders. BASF has a two-tier corporate governance system with an effective and transparent separation of company supervision and management between its Board of Executive Directors and the Supervisory Board. As of December 2021, the German multinational company had six members on the Board of Executive Directors. It has also taken a giant stride in compliance management, emphasizing audits and participation in training. In the 2021 report, BASF inferred that 77 internal audits were conducted on adherence to compliance standards and over 53,000 employees participated in compliance training.

6. RPM Prioritizes Diversity in Board Vacancies 

Concerted efforts from RPM towards corporate governance and ethical practices & programs have placed the company in a solid position. It has deployed Route 168 training program and promoted transparency, balanced decision-making and diversity & inclusion across its operations. The Governance and Nominating Committee of RPM reports to the full Board on developing and recommending a set of corporate governance principles, overseeing ESG strategy, and identifying diverse candidates for Board members, among others. In January 2020, the company gave a green light to the Rooney Rule to fill Board vacancies, suggesting a mandate to include diversity in ethnicity and gender in the selection pool. 

Companies of all sizes have envisaged ESG as tailwinds that can open avenues of growth and innovations. Leading players are gearing to underpin effective governance frameworks for fairness of the management, objectivity and transparency, and most importantly—to earn trust. A sustainable solution, waste management and a renewed focus on health & safety are some of the underlying factors that can take the ESG goals to a whole new level. The paints and coatings market size was pegged at USD 146.17 billion in 2019 and could witness a 4.3% CAGR between 2020 and 2027. Bullish ESG strategies will be pivotal to tapping into the global landscape. 

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 Strategies Gain Ground Among Jewelry Industry Players

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

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

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

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

Pandora Brings Lab-created Diamonds to the Fore

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

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

Tiffany Banks on DEI Initiatives to Stay Ahead of the Game

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

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

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

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

Leading Players Navigate Opportunities in Governance

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

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

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

About Astra – ESG Solutions By Grand View Research

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

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

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