How is ESG Redefining Real-time Payments Industry?

A quantum leap in real-time payments (RTPs) has leveraged customers, enterprises and governments to streamline payments and enhance the efficiency of the financial ecosystem. Real-time payments have made financial services attractive among millennials and the Gen Z population. The upsides of RTPs will be pronounced as policymakers, start-ups and other stakeholders emphasize the expansion of modern payments infrastructure. When compared with legacy alternatives that normally take days to reach the target, RTP has brought a tectonic shift to provide faster and more robust means of payment. It has unfolded social and economic facets that can influence stakeholders across verticals.

Industry leaders have jumped on the bandwagon to inject funds into environmental, social and governance (ESG) frameworks and policies. The year 2023 and beyond could witness real-time payments continuing disruptions. Notably, it could offset economic inefficiency with money locked up in financial systems. Cash-dominated regions are expected to invest in the advanced payment structure to help consumers gain access to financial services and help governments collect taxes and distribute benefits accurately and swiftly.

Fintechs and banks turned adversities into opportunities following the prevalence of the COVID-19 pandemic. The outbreak brought a paradigm shift in the payment landscape, bolstering the digital payment ecosystem. Companies scampered to keep up with the payment demands amidst a surge in cyber threats. Early adopters anticipate witnessing better liquidity management, enhanced communication with counterparties and seamless access to transaction data. 

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

Environmental Perspective

Sustainable payment structure has emerged as a pressing segment amidst the soaring cost of cash management, including environmental, social and governance cost of printing notes. Payments initiated and settled instantaneously could prove to be a game-changer in the cost-effectiveness of cash management and be available 24 hours a day, 7 days a week & 365 days a year. Organizations have exhibited strong demand to boost spending on payment infrastructure. According to an FIS survey released in 2021, around 27% of organizations expect to implement RTP in the next three to five years, while 14% have already embedded the payment infrastructure. 

At a time when customers of U.S. corporations are writing approximately 2.3 billion checks (equivalent to 455,000 trees) annually to pay their bills, digital payment could be a silver lining. With policymakers and global regulators pushing for a framework for reporting of climate risks, a transition from paper to digital could be a notable step toward sustainability. In April 2022, one of the largest check processors in the U.S. BNY Mellon announced a reduction in paper checks. Clients have reportedly minimized the number of checks they send to BNY Mellon for processing by 8.5% since 2019.

In May 2021, the check processing company announced the rollout of a real-time electronic bill (e-bill) and payment solution, it claims to be the first bank cashing in the RTP network to offer instant digital consumer bill pay service. Reflecting these trends, advanced economies, such as the U.S. have set an overarching goal of minimizing greenhouse gas emissions by 50%-52% by 2030. Advancements in payment systems are expected to complement these priorities. 

Social Perspective

With payments becoming cashless, the road to a digital economy has become pronounced globally. Agility and being proactive on ESG have become compelling as a solid ESG proposition can be the precursor to the company’s long-term success. A buoyant ESG framework can propel employee motivation, reduce employee turnover and enhance social credibility. For instance, Mastercard alluded to the launch of four “work from elsewhere” weeks annually in its 2021 Corporate Sustainability and Diversity, Equity, and Inclusion (DEI) report.

The payment processing company joined forces with Neurodiversity in the Workplace (NITW) to roll out a Neurodiversity Hiring Pilot for the recruitment of neurodivergent candidates for full-time job opportunities. A sharpened focus on social performance has created an avenue of growth. The U.S.-based company has also set an “In Solidarity” action plan to overcome racism and is on course to bring 50 million micro and small businesses and 1 billion people into the digital ecosystem by 2025. 

Businesses have also realized the need for skills renewal to leverage lucrative investment opportunities. The FIS survey asserts that around 44 percent of organizations will emphasize skills to bolster innovation. Fintech companies are investing in diversity and economic strength, especially among underbanked populations. To illustrate, in 2021, PayPal earmarked USD 535 million for racial equity and social justice and allocated USD 108 million commitment to underpin the economic empowerment of women and girls. The online payment company also furthered its social profile by enabling early wage access, financial education sessions and financial wellness grants. Companies are expected to harness the power of the ESG ecosystem to tap into the global landscape. 

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

Governance Perspective

Governance has become invaluable for banks to act as gatekeepers, comply with the law, make effective decisions and meet the needs of external stakeholders. Companies are gearing up to adhere to environmental laws amidst soaring sustainability concerns. High standards set by governance structure will add a fillip to the brands’ reputation and corporate culture. Sound internal governance and disclosures pertaining to the role of the Board and management in climate-related risk management and technology resiliency could reshape the industry dynamics.

Prevalence of practices, such as a diversified board of directors, ethical business practices and transparency has propelled the prominence of the ESG framework. For instance, BNY Mellon boasts of 91% board independence and 36.4% women directors (after the election of directors in 2022). Throughout the year, the senior management rendered reports and updates of the company’s environmental and sustainability programs to the Corporate Governance, Nominating and Social Responsibility (CGNSR) Committee. 

Directors, venture capitalists and other stakeholders have prioritized governance, long-term business strategy and education on climate-related issues. Well-established brands have underscored monitoring board composition, risk management and diverse board structure. Akin to BNY Mellon, independent directors at Visa were pegged at 91% (as of April 2022). Besides, the payment giant has fostered its ethics & compliance program amidst a shift to a virtual business environment. Notably, Ethisphere Institute listed Visa among the world’s most ethical companies in early 2022. Embedment of ethics, compliance and transparency into management processes could further promote and bolster corporate governance. 

Forward-looking companies face an uphill task that provides both challenges and opportunities to empower people, invest in a diversity workforce and protect customers from cyber threats. The projected CAGR of the real-time payments market at 34.9% through 2030 indicates a rising trend of electronic payment infrastructure.  

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

Automakers seek Solid State Battery to Bolster ESG Performance

Auto-makers have exhibited increased traction to cut battery’s carbon footprint, encouraging solid-state battery industry players to propel environmental, social and governance (ESG) goals. Solid state batteries (SSBs) store more energy, provide greater safety and charge faster compared to liquid lithium-ion batteries. Since a few batteries are required, SSBs can boost energy density per unit, making the technology highly sought-after in the EV landscape. SSBs could propel the ESG performance with several watchdogs vouching for the batteries. According to Transport & Environment (T&E), solid state batteries can minimize the carbon footprint of EV batteries by two-fifths. With solid state batteries poised to be used in EVs by 2025, battery manufacturers have furthered their investments in the ESG ecosystem.  

The sustainability of battery supply chains has become pronounced as companies seek to reap upsides from using SSBs. These batteries promise to attain the Paris Agreement, boost energy access and economic value and foster decarbonization. Companies could shift to a circular value chain to enhance their economic and environmental footprint and by harvesting end-of-life values from batteries. With investors looking for companies with better ESG scores, stakeholders could focus on deploying SSBs in electric vehicles. Stakeholders are bullish towards safe working conditions and have exhibited respect for human rights by keeping the child and forced labor at bay. Private companies and public stakeholders are expected to expedite the share of renewable energies in the value chain. 

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

Environmental Perspective

The growth of SSBs is likely to foster green energy and e-mobility as stakeholders strive to minimize their carbon footprint. The European climate group has pitched for incentives for the production of batteries with a lower carbon footprint in the new EV battery regulations—EU governments and MEPs are negotiating the final text of the regulation. In December 2020, the European Commission reportedly tabled a proposal for the modernization of the regulatory framework for batteries and bolstering the sustainability of EU battery value chains. 

Although SSBs are at a low technology readiness level, strong demand from EV manufacturers to offset initial costs and propel sustainability could augur growth. The need for intensive actions against climate change and to bring the automotive sector to greenhouse gas neutrality has become an enabler for technological advances and buoyant policies. For instance, Toyota Motor Corporation issued Challenge 2050 to underpin the creation of a more sustainable and inclusive society. The company aims to reduce CO2 emissions from new vehicles by 30% by 2025 and 90% by 2050.

Solvay has a bullish plan to achieve carbon neutrality—scope 1 and 2—before 2040 for all businesses barring soda ash. The audacious goal is underpinned by an investment program of approximately €2 billion (USD 2.05 billion). The next-generation power source for EVs will continue to be sought to underscore the environmental profile. In July 2022, Nikkei, in partnership with Patent Result, inferred that Toyota had a massive lead in the solid-state battery patents—with 1,331 known patents. 

Social Perspective

Industry partners have prioritized social contributions activities to enrich society and communities. In February 2022, Samsung SDI established a sustainable business management committee to propel ESG efforts. The company is gearing up for a full transition to renewable energy by 2050. The battery firm stood first with around 70% score, partly due to bullish efforts to propel work environment, diversity and human rights. In April 2022, Samsung SDI set out Safety Environment Management Policy to create safe and healthy corporate values, implement environmentally friendly management and form an external green community. In 2021, the company appointed around 299 CAs to take the organizational culture to the next level through team member development, fair appraisal, better collaboration, enhanced work efficiency and open communication. 

Amidst occupational accidents becoming pervasive and denting the economy and employees’ health, stakeholders have responded with buoyant policies. In May 2021, the firm operated the “Eradicating Serious Accidents Task Force” to bolster safety and keep occupational injuries at bay. The South Korea-based company has expedited labor-management communication to enhance the work environment and protect labor rights. In 2020, around 1,193 issues were reportedly submitted and addressed with robust follow-up measures. 

The diversity of directors has come to the fore as a driver of social portfolio for efficient decision-making and supervision. In 2020, Samsung SDI appointed four independent directors on the basis of expertise in areas, including law/human rights, electrical and electronics industry, accounting/tax and labor policy/relations. The company has placed no limitations on the basis of religion, gender, race, nationality, ethnicity or cultural background.

Companies have also prioritized the ESG committee to underpin sustainability. In 2021, Solvay rolled out its first employee share purchase program to propel the feeling of ownership among employees. Moreover, 98 of its 105 sites have observed a security vulnerability self-assessment (SVSA). It has also rolled out “Solvay One Dignity” to eradicate discrimination, providing equal opportunities for every employee. The company also announced the introduction of its first employee stock ownership plan. Moreover, in 2021, Solvay introduced a ten-year “STAR Factory Program” to cash in on digital and data science and make all plants STAR factory certified by 2030. 

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

Governance Perspective

Well-established and emerging players have reinforced governance, ethics and transparency to create a sustainable value for all stakeholders. Companies have raised the bar in ESG performance to pursue their sustainability vision. The repercussion of unsound governance could expand beyond the realm of financial results, prompting financial bodies to mandate governance disclosure reports. With environmental and climate issues placed at the top of agendas, governance practices and disclosures could underscore a culture of sustainable value creation.

The ESG scoring model of Grand View Research has ranked Solvay second to none—with a 70% score—in corporate governance. The top rank is mainly due to its efforts to foster governance practices with an emphasis on independent directors. In 2021, the company had 64% independent directors and the stand-alone ESG committee made a new carbon neutrality ambition recommendation to the board. The board backed the introduction of an employee share purchase plan providing Solvay personnel the chance to buy company shares at a 10% discount. 

Prominent companies have underscored the focus on sound governance, the ratio of independent directors, compliance training and taking disciplinary actions for corruption. Around 12,598 Samsung SDI employees completed ethics and compliance training, while there were 26 compliance review activities in 2021. The company appoints a chair of the BOD among directors to boost the flexibility of BOD operations and enhance directors’ accountability. The South Korean firm rolled out the Samsung Compliance Committee in February 2020 to propel compliance oversight and control at the company’s seven primary affiliates. In 2021, it amended all guidelines managed by the compliance team and provided training and reviews to alert employees about the risk of regulatory non-compliance. 

Forward-looking companies are assessing risks, opportunities and issues pertaining to sustainability amidst the expanding footprint of solid state batteries. With longer ranges and quicker charging times, SSBs could be the game changer for the electric vehicle manufacturers and other stakeholders. In January 2022, Toyota announced its first vehicle to use SSBs would be hybrid and would go on sale by 2025. Meanwhile, in June 2022, Solid Power announced it would be shipping solid state battery cells to BMW and Ford by the year-end for validation testing. Prevailing trends allude to a robust growth outlook in the ensuing period. The global solid state battery market is expected to witness around 36% CAGR from 2021 through 2028. Policies and approaches toward ESG could dictate the growth trajectory as automakers seek massive EV battery breakthroughs.  

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

Leading Players Prioritize ESG Investments In The Edtech Industry: Astra ESG Solutions

Edtech industry or Education Technology Industry players are gearing up to plan, report and monitor their ESG performance amidst an exponential rise in digitization. Notably, the prevalence of online learning against the backdrop of the COVID-19 pandemic prompted industry leaders to achieve ESG goals. AI-based learning tools forayed into the mainstream education landscape, encouraging investors, venture capitalists and other stakeholders to prioritize ESG goals. Lately, education technology has witnessed skyrocketing demand across advanced and emerging economies. A host of global organizations expects their vendors to adopt ESG goals, while stakeholders are demanding that startups define and focus on ESG strategy.

Investors are bullish on the prospect of edtech providing an immersive learning experience to K-12 students (kindergarten to 12th grade). High-profile and emerging players continue investing in tech and tools that boost online and digital learning. A slew of private equity funds has ESG-themed funds, alluding to stakeholders growing interest in society and the environment. For instance, in March 2022, Cakap, an Indonesian online language learning platform, secured fresh funding from IIF (Indonesia Impact Fund). The infusion of funds is reported to be the first ESG-compliant private impact fund under the aegis of Mandiri Capital Indonesia. Buoyant investments will propel access to high-quality education, especially in lower-tier cities, and play a pivotal role in bridging the language proficiency gap. 

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

Environmental Perspective

Edtech companies are responding to climate change to invest in an environmentally sustainable future. Digital learning companies have furthered their efforts to propel UN Sustainable Development Goals and take a giant stride toward decarbonization. Stakeholders are expected to be on the same page on global net zero emissions and use technology and operations to foster the change the world needs. Microsoft aims to reduce its Scope 1 and 2 emissions to near zero by 2025 and is contemplating removing more carbon than it emits by 2030. Moreover, in July 2021, it also rolled out the Microsoft Cloud for Sustainability to render automated, integrated and comprehensive sustainability management. 

Stakeholders are likely to take a robust approach to reporting and recording emissions with automation and data collation. Industry players could use a secure cloud to tackle e-waste across schools with startups investing in the advanced technology. In December 2020, Karo Sambhav used Microsoft Azure, engaged with over 22,700 schools, and collated around 12,000 metric tons of e-waste for responsible recycling in India. Furthermore, Microsoft also emphasized bridging the skill gap in data center communities through investment in technical training programs at vocational schools, community colleges and other educational institutions. 

Social Perspective

Edtech companies are promoting the values of gender equality, inclusion and a safe work environment. Companies are likely to complement UN Sustainable Development Goals with an emphasis on quality education and boosting workers’ health and safety. Several edtech companies have sought state-of-the-art technology to bolster inclusion, diversity and access. For instance, in September 2021, SP2 Mentor Collective suggested that it connects students, targeting first-generation learners, including those of color, students from low-income backgrounds and other underrepresented students. 

Stakeholders have added fillip to their ESG goals by investing in new-age skills and focusing on talent mobility. Companies are gearing up to upskill talent pools to keep up with global digital transformation. Cisco is expediting the way it develops, attracts and promotes diverse talent. It has joined forces with OneTen Initiative, that is gearing to hire, upskill, and promote one million African American/Black (AA/B) Americans over the next ten years. It witnessed a 60% surge in the representation of all employees who identified themselves as AA/B from entry level through the manager.

State-of-the-art technologies, including ML and AI, have witnessed an uptake. To illustrate, as of June 2022, Coursera reported around a 50% surge in the number of business learners in India. The trends have prompted technology-oriented startups to inject funds into advanced solutions and services to help bolster the digital skills of their employees. In August 2021, Caisse de dépôt et placement du Québec (CDPQ) announced an infusion of funds into ApplyBoard through Equity 253 fund—a diversity-dedicated fund—aimed at companies leveraging diversity and inclusion initiatives and promoting them as business priorities. 

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

Governance Perspective 

As sustainability becomes mainstream, governance and accountability have become instrumental for prioritization and alignment across the industry. Microsoft has formed a Climate Council with business leaders from every business group to foster alignment, offer sustainability advice, review progress on commitment, prioritize resources and funding and collaborate. Its Board of Directors offers feedback, insights, and oversight across environmental and social aspects.

With companies targeting pre-K to 12, post-secondary and workforce education portfolios, stakeholders have prioritized governance structure to foster their ESG profile. For instance, Cisco asserted in its Purpose Report that audits covered 390,000 supply chain workers during fiscal 2022. Cisco’s compliance and ethics organization reports all allegations and cases of ethical violations to the Audit Committee of the BoD and the Compliance Steering Committee. 

Poor ESG practices may be detrimental to environmental, reputational and legal risks that can dent an organization’s prospect on the bottom line. Companies with strong ESG performance could stay ahead of the curve with a lower cost of capital, a loyal investor base and better access to financing. According to the U.S. financial services company Morningstar, ESG investment strategies surpassed USD 1 trillion in 2020, largely fueled by sustainable investment funds amidst the COVID-19 pandemic.

In December 2022, Skillsoft’s corporate social responsibility report found that diversity, equity, and inclusion (DEI), participation in fair trade, and enhancing labor policies were top priorities in the CSR program. The research noted that 46% said ESG efforts were replacing CSR efforts. Prevailing trends suggest the global edtech market could register a 16.5% CAGR from 2022 through 2030. The growth trajectory is expected to gain ground as companies focus on creating long-term value by creating ESG strategies. 

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 in 2023 and Beyond in Healthy Snack Industry

Responsible Environmental, Social and Governance (ESG) strategies have become instrumental to create growth and value for stakeholders in the healthy snack industry. Equitable and sustainable access to food through diversity, inclusion and well-being could hold prominence across developing and developed countries. Accelerating sustainability efforts have become paramount amidst the COVID-19 pandemic and Russia’s invasion of Ukraine. Prominently, climate change has led to crop failures, extreme weather, supply chain bottlenecks and food shortages. The prevailing situation warrants a renewed focus on sustainability—an approach that is in line with an environmentally friendly food system.

Lately, regenerative agriculture has come to the fore with the need to reduce carbon footprint gaining ground. Brands have shown traction to minimize tillage and foster a regenerative supply chain. Food and beverage manufacturers are poised to play a pivotal role in tackling greenhouse gas emissions. Sourcing ingredients through regenerative agriculture could be the new normal and gain ground across retailers. Climate-friendly snack companies are likely to show traction for regenerative farming to create a resilient ecosystem and boost food security. Leading players are working closely with farmers to make soil healthier, foster biodiversity, enhance watershed health and bolster farming communities. For instance, PepsiCo aims at spreading regenerative agriculture practices to 7 million acres by 2030.  

Uptake in ESG investments provides a promising opportunity to align financial gains with upsides for the environment and society. With the prevalence of suboptimal nutrition denting the brand value and fiscal performance of the food sector, snacks with a strong ESG profile could be the game changer. Industry players have reinforced traction to enhance products and recapture packaging materials, minimize GHG emissions, replenish water and expedite changes required to address climate change. 

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

Mondelēz Underscores Environmental Portfolio

Investments in resilient and sustainable food supply chains could protect the environment and propel a transition to regenerative practices. Amidst possible repercussions of climate change, robust initiatives to minimize environmental impact have become pronounced. In June 2022, Mondelēz International exhibited bullish initiatives, including a reduction in water usage, packaging and greenhouse gas emissions in its 2021 Snacking Made Right Report.

Sustainable snacking companies are slated to emphasize ambitious ESG goals—Mondelēz is on course to use 5% recycled plastic content by 2025, including Philadelphia tubs and Cadbury Dairy Milk sharing bars. The company intends to have 100% renewable electricity in 6 of its U.K. production sites and a reduction of 21% in Scope 1 and 2 CO2e emissions (baseline 2018). The snacking company has set a net zero GHG emissions by 2050 and is injecting funds into Circulate Capital Ocean Fund to underpin the collection of plastic waste. In September, it also issued its first green bond, depicting Mondelēz’s commitment to propel the ESG agenda. 

Environmentally friendly snacking has amassed popularity with major players gearing to provide the right product, made the right way for the right moment. For instance, Mondelēz noted that the majority of dairy materials were purchased from suppliers functioning under animal welfare schemes. The U.S. multinational company aims for a 15% reduction in food waste in internal manufacturing sites and a 10% reduction in absolute water usage in priority sites by 2025. Moreover, the company also noted that 100% wheat volume is required for Europe business unit biscuits production under the Harmony charter by 2022. 

Kellogg Prioritizes Social Commitment

Healthy snack brands are bolstering communities and investing in sustainable access to food with improved quality of life for families and people with nutritious and accessible options. Social equity and opportunities with diversity and inclusion have provided a fillip to the industry profile. Brands are measuring their impact on farm families and employees. Some of the dynamics, such as safe and healthy working conditions, gender participation and financial literacy could be pronounced.  For instance, in August 2022, Kellogg announced its ambitious goal of creating better days for 3 billion people by 2030. The company noted in its annual ESG report (illustrating achievements from 2015 through 2021) that around 800 million people were nourished with its foods, while it fed 219 million people grappling with hunger or crisis. Additionally, the globally popular brand also backed 445,000 farmers, several of whom were women and smallholders. 

The U.S. company has upped its focus on gender diversity and boosted equity and inclusion in the workforce. Kellogg suggested that around 44% of the global roles were filled by women at the management level. The American company expressed contemplation for gender 50/50 parity at the management level by 2025. The company has also recognized the significance of women in the agriculture sector and is identifying areas of the supply chain with the highest presence of women. Moreover, in 2020, Kellogg published its Global Human Rights Policy, reinforcing salient human rights risks and human rights strategy. 

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

Nestle Adds Value to ESG with Investments in Governance

At a time when the regenerative food system has gained a massive uptick, governance has received notable traction among investors, regulators and other stakeholders. Implementation of ESG-related performance indicators has gained ground. In 2021, Nestlé rolled out a new structure for managing ESG topics and its Board of Directors created a dedicated and distinct Sustainability Committee to review the company’s sustainability agenda and boost shared value. The ESG and Sustainability Council offers strategic leadership, governance and execution guidance and advises Nestlé’s Executive Board on making science-based and informed decisions. 

Nestlé mentioned in its Creating Shared Value and Sustainability Report 2021 that it appointed 11 new independent directors since 2015. Moreover, the food & beverage company also ran a series of Food Systems Summit Dialogues offering inputs on innovation for food systems transformations, mainstreaming regenerative agriculture and how to make nutritious diets more accessible, affordable and adequate. It is also expected to vouch for policies that assist in whole grains consumption and is committing to minimize sodium in frequently consumed products by 2025 and 2030. Besides, it conducts a materiality assessment every two years to help identify the economic, social and environmental aspects.

Business leaders and ESG subject matter experts are vying to drive positive change through partnerships, product launches, innovations and technology advancements that address sustainability. To illustrate, in May 2021, Hershey announced the acquisition of Lily's Confectionery Brand to bolster its zero-sugar product offerings. It could help the former underscore the use of innovative sugars in snacks. With innovations and industry-wide developments emphasizing ESG, the healthy snack market could witness a CAGR of 6.6% during the assessment period. A renewed focus on the environment, health, safety and climate policy could steer the growth trajectory. 

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 are Brands Counting On ESG in Mattress Industry?

The soaring significance of environmental, social and governance (ESG) strategies has encouraged mattress industry players to boost their sustainability quotient. Reporting on non-financial information has become pronounced across business verticals. Stakeholders are poised to take a quantum leap to embed ESG considerations into their portfolios. Companies are championing sleep as an invaluable pillar to underpin the work environment and emphasize talent attraction, equity, diversity and inclusion. Amidst increased responsibilities, demanding schedules and feelings of stress, the addition of ESG pillars to help people foster positive social change and improve health and well-being could provide impetus to an equitable and fair world. 

There has been a palpable trend to recycle and reuse mattresses to minimize waste from landfills. Amidst climate change creating pressure on the planet, well-established players are expected to emphasize minimizing carbon footprint, sourcing raw materials sustainably and using resources more efficiently. Strategic aspirations and priorities could take center stage to provide sustainable sleep solutions. Companies are likely to seek ESG goals to expand their physical and digital footprint and provide customers with seamless products and services. 

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

Environmental Perspective

As companies embark on the ambition to be more environmentally friendly and transparent, goals to attain carbon neutrality could receive an uptick with investments in ESG reports. A buoyant environment profile has become paramount to raising the bar for sustainability. In January 2023, Tempur Sealy International revealed its 2023 Corporate Social Values Report noting that it achieved around 3% dip in GHG emissions per unit produced at wholly-owned manufacturing and logistics operations. It kept the sustainable reporting in line with the Task Force on Climate-Related Financial Disclosures (TCFD) framework. The American manufacturer of mattresses suggested that 100% of waste was diverted from landfills from the U.S. wholly-owned manufacturing operations as of September 2022, up from 96% during the same month in the preceding year. It also bolstered its commitment to achieving zero landfill waste to include its research and development facilities and corporate offices by 2025. 

Forward-looking companies are exploring opportunities to decarbonize operations and inject funds into boosting energy efficiency. To illustrate, in 2021, Sleep Country Canada rolled out a pilot project at three locations connecting AI-powered technologies to HVAC and lighting equipment at retail locations and warehouses. The company has also bolstered its efforts to minimize landfill waste under the aegis of recycling programs and mattress donations. It claims to have diverted more than 165,000 mattresses and foundations (in 2021) from landfills through recycling or donation. The Canadian retailer company claims around 91% of its mattresses and foundations have sustainable materials. It has also banked on several of its suppliers that use CertiPUR-US-certified mattress foam. The certified foam is made without flame retardants, ozone depleters, lead, mercury, phthalates, formaldehyde and low VOC emissions. Emphasis on environmentally responsible products will provide impetus to the use of sustainable materials, helping stakeholders use resources efficiently. 

Social Perspective

Stakeholders are recognizing the importance of underpinning programs that can bring a paradigm shift in the way corporate philanthropy achieves social performance. Concerted effort on workforce development targeting underemployed groups, and gender discrimination management has provided tailwinds for investors, manufacturers and suppliers. Leading players are poised to observe an inclination for equity, diversity, inclusion and belonging, retaining and recruiting talented people from diverse backgrounds and creating a safe work environment. Social performance has become a vital cog in reinforcing brand value and reputation. For instance, Avocado Green Mattress, in its 2021 Impact Report, alluded to developing a nationwide network (in the U.S.) of over 1,000 nonprofit partners, such as rehabilitation centers, local women’s shelters, centers for people with disabilities and refugee centers. The company donated 90% of returned mattresses to shelters and gave away 2% of annual revenue to environmental nonprofits. 

Recognizing performance has become one of the most compelling factors to offer rewards, compensation packages and learning & development training. Key players have included LinkedIn Learning in their toolkits to offer access to thousands of courses to associates. Additionally, equity, diversity and inclusion training has also spurred, creating an aura of strong growth for mattress manufacturers and suppliers. To illustrate, Sleep Country Canada noted that 98% of associates were trained on diversity, harassment and respect in the office, while 24% identified themselves as visible minority leaders. Meanwhile, Tempur Sealy propelled the percentage of U.S. employees who self-identified as a minority to 49%. The prevalence of robust and inclusive culture could place companies vying to propel their ESG portfolios in the driver’s seat. 

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

Governance Perspective

Lately, good governance and strong ethics & compliance have come into the spotlight to ensure risk management, ESG accountability and performance. Embedding a robust culture of sustainability has become pivotal for buoyant governance standards. An emphasis on fostering corporate behavior, board diversity, anti-competitive practices, tax transparency and eradicating corruption could be the precursor of sound and sustainable governance. In April 2021, Serta Simmons Bedding promoted two major leaders and streamlined the organization’s structure. Venture capitalists, manufacturers and other stakeholders are expected to place bullish measures to address major ESG risks, such as cyber security, talent attraction and retention, reputation and shifting consumer behavior.  

Integration of ESG priorities into the code of conduct has become prevalent across business verticals. Tracking and reporting of possible code violations and strengthening of cyber security could be pronounced. Companies are updating their information security policy, reporting policy and mitigating the ESG risks. Organizations are prioritizing data management and developing strategies that are in accordance with the law of the land and which can keep up with the demands of shareholders, venture capitalists and other major stakeholders. 

The competitive landscape suggests industry players are likely to focus on brand strategies and develop retail partnerships. Industry-leading innovations that can provide customers with increased quality sleep could be the major selling point. To illustrate, in July 2022, Bryte raised USD 20 million under the aegis of Tempur Sealy. With mattresses being trendy, investments and revenue forecasts could be bullish. The global mattress market size is poised to garner significant gain in the ensuing period.

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 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