Jewelry Industry: A Look at ESG Reporting Practices

The Jewelry industry has a significant impact on ESG in terms of environment and social aspects. 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. 

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. 

Key companies in this theme

    • Tiffany & Co.,

    • Pandora

    • Chow Tai Fook

    • Louis Vuitton SE

    • Richemont

    • among others.

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

Fuel Cell Industry ESG Trends to Watch in 2023

Fuel cells have emerged as an environmentally friendly option to provide power for applications, including residential/commercial/industrial buildings, transportation and power stations. The unique value proposition of environmental, social and governance pillars will leverage industry leaders to empower the world with clean energy. Although 2020 through 2022 were periods of global turbulence emanating from the COVID-19 pandemic, inflation, energy crisis, geopolitical developments and volatile weather conditions, 2023 and beyond could see stakeholders prioritize ESG to bolster the brand position.

Global push to comply with the Paris Accord Climate Targets will encourage companies to meet the greenhouse gas emissions commitments, thereby fostering the clean energy revolution. Hydrogen has emerged as an invaluable component for green transition and energy source diversification. Fuel cell technology will expedite targets to pursue economic recovery and combat climate change Along with the concerted efforts to transition to a zero carbon economy, forward-looking companies have prioritized diversity, equity & inclusion, workers' health & safety, training programs, transparency, corporate behavior and ethics & compliance.

Key Companies in this theme:

    • Fuel Cell Energy, Inc.

    • Ballard Power Systems

    • SFC Energy AG

    • Nedstack Fuel Cell Technology B.V.

    • Bloom Energy

Learn more about the practices & strategies being implemented by industry participants from the Fuel Cell Industry ESG Thematic Report, 2023, published by Astra ESG Solutions

Environmental Perspective

Amidst an exponential demand for energy, decarbonizing power and producing hydrogen have come on the horizon. Technologies are likely to be built for decarbonizing mobility and industrial applications. The penetration of hydrogen fuel will potentially negate the fossil fuel concerns that have plagued the globe. It is worth mentioning that hydrogen does not need mining and is not prone to geopolitical risks.

In February 2022, FuelCell Energy introduced the 2021 Sustainability Report exhorting a commitment to attain net zero emissions by 2030 on Scope 1 and Scope 2 emissions. As of August 2022, its energy plants generated over 13,788,125 megawatt hours. The U.S.-based company is gearing up to achieve net-zero carbon emissions by 2050, a step likely to foster the adoption of decarbonization.

Social Perspective

Industry leaders have furthered their focus on social contributions, including increasing the proportion of women in the workforce, underpinning employment in operational sites and providing training programs. Lately, emphasis on talent attraction, retention, robust grievance mechanisms, women empowerment and occupational health & safety has gained uptick.

Advent Technologies has upped investments in women empowerment and training pertaining to ethics, professional skills development and health & safety issues on laboratory processes. In 2021, the percentage of permanent employees was 98%, exhibiting its efforts toward human capital management. The company asserts its Employee Handbook covers bullying and harassment, diversity, accessibility, non-discrimination, working hours and minimum age requirements. A strong commitment to the social pillar to provide fuel cell power for a sustainable world will help companies position themselves in the industry.

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

Governance Perspective

The strategic ESG vision warrants board diversity, transparency, sound corporate behavior, fair business practices and regulatory compliance. Building trust from business partners, investors, financial markets and the public at large has become instrumental in boosting the ESG rankings. For instance, Bloom Energy has strengthened its ESG disclosure efforts. The company's 2021 sustainability report is in line with Task Force on Climate-related Financial Disclosure (TCFD) recommendations, Sustainability Accounting Standards Board (SASB) standards and the Global Reporting Initiative (GRI) framework.

The Board of Directors (BoD) offers strategic guidelines on ESG matters pertaining to Bloom Energy's business and approves strategy, such as ESG components. Besides, the company inferred that its first Environmental Management System (EMS) audit would have happened in 2022. Bloom Energy has also fostered its culture of ethical decision-making. In 2021, the U.S.-based company hired corporate ethics and compliance program leaders. Building a strong and robust governance culture will serve as a solid foundation to propel environmental and social performances.

Identifying areas for development and improvements of communities, environments and businesses have become pronounced with the emergence of the hydrogen economy. Manufacturing and injecting funds into key technologies to protect energy security, employment and achieve climate goals can propel the value proposition.

In July 2022, the European Commission was reported to have approved an Important Project of Common European Interest (IPCEI) to underpin research & innovation and the first industrial deployment in the hydrogen technology value chain. The Member States would pour €5.4 billion (approximately USD 5.8 billion) in public funding. Meanwhile, in February 2023, Nedstack joined forces with ZBT for the industrialization and co-development of fuel cells.

About Astra – ESG Solutions by Grand View Research

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

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

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

The Impact of ESG on the Future of Hydrogen Generation

Like-minded stakeholders, innovators and entrepreneurs are counting on hydrogen generation to combat climate change and dramatically minimize CO2 emissions. Well-established players are prioritizing decarbonized hydrogen to propel the green portfolio. The environmental, social and governance (ESG) performance has received an impetus with bullish government policies. In April 2021, U.S. President Joe Biden announced a robust goal of minimizing greenhouse gas emissions by 50-52% by 2030. Green hydrogen—created from the electrolysis of water—has gained ground as the most environmentally friendly fuel to produce energy without emitting CO2. In common parlance, hydrogen is a major enabler of clean energy transition and produces zero emission at the point of use. 

Exponential demand for green hydrogen has boded well for ESG policies amidst the fuel warranting significant storage, transportation and production infrastructure. The U.S. has proposed Climate Disclosure Rule requiring public companies to make GHG-related disclosures. Besides, it mandates public companies to disclose Scope 1, 2 and 3 emissions. The disclosure rule is poised to prompt and incentivize industry participants to infuse funds into greener energy. Hydrogen could be a silver bullet to minimize GHG emissions. Industry players are gearing up to provide a sustainable future with cost-effective, dependable and accessible green hydrogen energy. 

Key Companies in this theme

• Linde PLC

• Indian Oil Corporation

• Air Products and Chemicals Ltd.

• Air Liquide

• Bloom Energy Corporation

• Ceres Power Holdings PLC

• Plug Power, Inc.

• FuelCell Energy, Inc.

Environmental Perspective

As stakeholders emphasize a clean hydrogen economy to boost productivity, reduce carbon footprints and minimize operating costs, bespoke hydrogen generation solutions could bring a paradigm shift globally. Investors are aligning their businesses with environmental performance, with companies striving to inject funds into clean energy technologies to foster energy efficiency and cut climate-changing emissions. Even though hydrogen is a low-carbon energy source, transportation of hydrogen using internal combustion engine trucks contributes to GHG emissions. These trends have compelled leading companies to invest in green hydrogen. In 2022, Plug Power acquired Joule Processing to bolster its green hydrogen ecosystem and reduce the logistics networks and hydrogen infrastructure cost. The company plans to augment the green hydrogen production to 200 TPD by 2023 across North America. 

Leading players aspire to infuse funds into clean energy technologies to reduce fleet emissions. Linde asserts around 83% GHG emissions could be reduced from transportation using renewable diesel. The company has implemented an environmental management system in line with ISO 14001—the international standard for EMS—for the management of atmospheric emissions and waste, to leverage pollution prevention and control, management of environmental impacts from transportation and protection of biodiversity and natural resources. Around 99% by weight of the raw materials used in 2021 were renewable raw materials, such as produce hydrogen, oxygen, gaseous nitrogen, carbon dioxide and argon. It has an audacious target to cut absolute GHG emissions by 35% by 2035 and claims it helped customers do away with over 88 million metric tons of CO2 in 2021. 

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

Social Perspective

Investors prioritize community investment, diversity & inclusion, ethical supply chain, harassment-free workplace and employee health. Prominently, these factors act as a marker shaping the future of business, creating resilient business plans and cementing equality of opportunity. Linde has been at the helm with over 80% social score as it integrates sustainable strategies into business strategy. The company introduced the Global Giving program to infuse over USD 4 million into educational programs. The Board of Directors and CEO are accountable for social issues affecting Linde. Meanwhile, the CHRO oversees management and retention, talent sourcing, inclusion and diversity. However, the global voluntary turnover rate was pegged at 6.7%, according to its Sustainable Development Report 2021.

Linde has furthered its efforts on a safe operating environment through investment in cutting-edge technologies. For instance, in 2021, the industrial gas company invested around 5 million hours in safety training for its contractors and employees. The company is leaving no stone unturned to promote gender diversity. It introduced a “30 by 30” gender balance goal with the aim of having 30% females at all professional levels by 2030. The company is emphasizing training for inclusion, business accountability and strengthening the pipeline program to achieve the ambitious goal. 

IndianOil has propelled its recruitment strategy and equal opportunities policy to develop, attract and retain top talent from diverse backgrounds. According to its Sustainability Report 2020-21, the company hired 490 new employees; 90% of these hires were below 30 years of age, while 43 were female during the year. It also formulated Talent Vision and Strategy Framework for the 2021-24 period to foster learning, employee engagement and workplace safety, among others.

Notably, the Indian giant rolled out the revamped employee satisfaction and engagement survey in 2021—Pratidhwani—to underscore engagement activities and understand the feedback and opinions of internal stakeholders. The company has also established reporting kiosk to report near-miss incidents. It conducts regular safety audits to comply with standard operating procedures, detect unsafe and hazardous acts, and analyze the effectiveness of safety systems. The energy major has developed Emergency Response and Disaster Management Plans (ERDMP) to streamline preparedness during fires, spills, leaks, explosions and other risk scenarios. The Indian PSU asserts its 100% locations are equipped with ERDMP plans and performs liaison activities with central government agencies, including National Disaster Response Force (NDRF). Amidst strong safety policies, IndianOil recorded 8 cases of fatalities during 2020-21, a two-fold rise from 2019-2020. 

Governance Perspective

Ensuring compliance with the rules, regulations and laws has become a major prerequisite for sound corporate governance. NEL ASA published its first sustainability report in 2020 with the goal of 100% of executive management and other employees completing anti-corruption training by 2022. In September 2020, the company launched its whistleblowing channel—NEL Ethics Hotline. In the next month, it introduced the Nel Anti-Bribery and Corruption Policy and the Nel Competition Law Policy.

A transparent government structure is a vital cog in the governance pillar for sustainable growth. Companies such as Plug have set the goal of continuing the development of ESG governance to boost transparency, standardization and consistency across the landscape. The CEO at Plug organizes weekly hall meetings with employees to share updates on initiatives and answer questions and queries. The company provided compulsory training on vigilance to eradicate corruption and bribery.

Air Liquide has propelled its sustainability portfolio, contributing to ESG commitments and creating positive impacts for climate, people and health. In April 2022, the French company published its first Sustainable Development report, taking a giant leap toward transparency. In March 2022, the Group laid out a strategic plan—ADVANCE—to combine financial performance, environmental and societal performances. The company aims to augment the investments to around 16 billion euros (approximately USD 16.5 billion) from 2022 through 2025, with 50% earmarked for the energy transition.

The France-based company aims to increase the percentage of women among managers and professionals to 35% by 2025, up from 31% in 2021. The company has spotlighted an international, independent, gender-balanced board of directors. Prominently, 50% of its board are women and around 92% are independent members. In June 2022, the board of directors announced the separation of the roles of Chief Executive Officer and the Chairman of the Board of Directors. 

With a strong case of independent directors in better-performing organizations, forward-looking companies have reinforced their governance profile. In essence, Linde’s 8 BOD are independent non-executive directors. The board has fostered its governance structure with a focus on, including but not limited to split roles of Chairperson and CEO, director independence, board effectiveness, ideal board committees, alignment with shareholder interests, shareholder outreach, limits to service and board diversity. In 2021, the BOD included a new Sustainability Committee emphasizing clean energy initiatives and environmental aspects. During this period, the executive leadership team reviewed the ESG presentations prepared for the BOD. 

Governing bodies and other stakeholders are emphasizing sustainability development targets through innovations and decarbonization investments. In December 2021, the European Commission reportedly proposed an EU framework to boost hydrogen, decarbonize gas markets and minimize methane emissions. The European Network of Network Operators for Hydrogen (ENNOH) would be formed to underpin dedicated hydrogen infrastructure, interconnecting network infrastructure and cross-border coordination. The new rule is expected to expand in two phases with access to the separation of hydrogen production, tariff setting, transportation activities and hydrogen infrastructure.

Industry participants are striving to create a business model that enhances social, economic, governance and environmental values. Well-established players are prioritizing hydrogen as a cornerstone of the energy transition. For instance, Air Liquide has earmarked 8 billion euros (around USD 8.25 billion)—over the next ten years—for the full hydrogen value chain, such as electrolysis, supply chain, carbon capture and storage. It expects its hydrogen revenue to be pegged at 6 billion euros (approximately USD 6.2 billion) by 2035. In 2021, Shell initiated production at the electrolyzer with the 10 MW proton exchange membrane using renewable energy to produce up to 1,300 tons of decarbonized hydrogen annually. In January 2022, Shell New Energy was involved in a joint venture with Zhangjiakou City Transport to start a hydrogen electrolyzer in China with 20 MW capacity. It expected the electrolyzer to render around 50% of the total green hydrogen supply for fuel cell vehicles during the Winter Olympic Games in the Zhangjiakou competition zone. The hydrogen generation market size garnered USD 129.85 billion in 2021 and could witness a 6.4% CAGR from 2022 to 2030. Soaring hydrogen demand and a surge in global spending on energy research will provide a quantum leap to the ESG efforts. 

About Astra – ESG Solutions by Grand View Research

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

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

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

The Role of ESG in Driving Innovation in Smart Agriculture Industry ESG

Stakeholders are establishing ethos to bolster environmental, social and governance (ESG) performance in the smart agriculture industry. Forward-looking players are enriching the lives of producers and consumers through sustainable innovation to minimize environmental footprint. State-of-the-art technologies, including precision farming, automation, sensors and cloud computing, have become the next big thing in the agriculture industry. ESG investors are expected to drive capital flows to help farmers overcome livelihood and other barriers to adopting environmentally friendly smart technologies.

Governing bodies and watchdogs have vouched for building resilience for people, agriculture food system and sustainability to augment agricultural productivity and incomes. An unprecedented spike in the global population and shifting diets have spurred the demand for smart agriculture to manage cropland, forests and livestock.

A feature story on the World Bank website claimed that acute food insecurity in 2023 could overtake the food crisis witnessed in 2007-2008. With agriculture being prone to climate change, weather variability, soaring temperature and invasive crops have elicited challenges and opportunities for investors and other stakeholders. The World Bank infers that agriculture produces around 19–29% of total greenhouse gas (GHG) emissions.

Learn more about the practices & strategies being implemented by industry participants from the Smart Agriculture Industry ESG Thematic Report, 2023, published by Astra ESG Solutions

Environmental Perspective

The agriculture sector is witnessing a seismic shift with an increased focus on minimizing emissions, preventing deforestation and bolstering productivity. Climate-smart agriculture has become paramount to avoid or reduce GHG emissions, reflecting expectations from stakeholders that businesses should deliver not only profits & revenue but also ESG performance. Extreme weather events showed the repercussions of climate change on agriculture.

Farms are expected to count on bespoke solutions to foster their sustainability strategies. For instance, Argus Controls uses a proprietary control algorithm to automate the growing process and forecast specific needs, including watering, lighting and feeding cycles. With sustainable production gaining a stronghold, the North American cannabis cultivation and manufacturing experts unveiled Sustainable Cannabis Coalition (SCC) in January 2021 to propel sustainability practices in the cannabis industry.

Social Perspective

Farmers and investors are responding to the need for sustainable agricultural practices to underpin economic and nutrition livelihoods, employee safety & well-being and reinforce diversity, equity and inclusion. AGCO Corporation initiated the FOCUS 2.0 program with a 40-step blueprint to create a robust safety culture. It reduced its total case incident rate (TCIR) by 14% in 2022 vis-à-vis the preceding year, the company mentioned in the 2022 Sustainability Report.

The American agricultural machinery manufacturer underscored employee engagement through programs, including Voices. Predominantly in 2022, almost 20,000 employees shared their voices in the annual Voices Survey. The company noted that its engagement score stood at 69% and is on course to take the tally to the 75% target by 2025. The U.S.-based company collaborated with the Faça Um Bem Incrível" (Make a Great Good) social project in Brazil that redirects fresh produce which would otherwise go to waste. The initiative fostered over 150 rural workers and 20 local food producers.

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

Governance Perspective

The need for the Board to provide sustainability strategy, goals and policies has fueled the significance of sound governance, transparency, ethics & compliance, diversity and good corporate behavior. For instance, Cargill formed an ESG Committee to underscore governance and accountability. It has teamed up with the World Economic Forum, the World Business Council for Sustainable Development (WBCSD) and Tropical Forest Alliance (TFA) to undergird operation and stakeholders' engagement.

The company has strengthened its ethics & compliance portfolio to set a foundation for sustainable growth. Cargill completed over 80,000 hours of mandatory online compliance training in 2022 on bribery and corruption, monitoring government donations & gifts and entertainment expenses. In January 2022, the company celebrated Ethics Week to foster employee ethics.

ESG investors expect farmers to overcome hurdles to adopt smart farming strategies. Accordingly, organic and inorganic strategies will be pronounced in the near terms. For instance, farmers in Sri Lanka augmented land under irrigation by 15% during the dry season, largely due to their training in the alternate wetting and drying (AWD) techniques. These dynamics validate Grand View Research's valuation of the global smart agriculture market at USD 14.44 billion in 2021 which could witness a double-digit CAGR of 10.8% between 2022 and 2030.

About Astra – ESG Solutions by Grand View Research

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

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

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

The Intersection of Fashion and Sustainability in Footwear

Shoe companies have witnessed C-suite leaders prioritize sustainability, a shift in company cultures showing the footwear industry making giant strides beyond corporate promises. Stakeholders are developing KPIs and bullish strategies to foster ESG reporting. Although the COVID-19 pandemic has had a compelling impact on industries, 2023 through 2030 should see more companies start to report sustainability both to the public and internally.

With millions of footwear inundating landfills, manufacturing of environmentally preferred materials (EPMs) has become pronounced. Sustainable use of resources, including water, energy and materials, has become the next big thing. Prominently, Adidas is contemplating replacing virgin polyester with recycled polyester by 2024. The footwear giant is bullish that 9 out of its 10 articles will have a sustainable material by 2025. Moreover, in 2021, the sportswear company aimed to use recycled marine plastic waste to manufacture 17 million pairs of shoes. During the period, Tier 1 suppliers attained a 15% dip in water intensity, while Tier 2 suppliers observed an 18% plunge.

Forward-looking companies are zeroing in on augmenting the adoption of renewable energy and boosting energy efficiency. Gen Z and millennials are expected to seek products made from materials that can be recycled, reused or repurposed. Besides, socially compliant and sound corporate governance-focused companies will remain ahead of the curve in a competitive footwear industry.

Environmental Perspective

Contract manufacturers, material vendors and shoe companies have upped their environmental strategies to tap into the potential opportunities and enhance their ESG profiles. In essence, Caleres Inc. is vying to recycle, reclaim, or refurbish 90,000 pairs of shoes each year. The American footwear brand mentioned in its inaugural ESG report that environmentally preferred materials will be used for 25% of footwear sold in Famous Footwear. Moreover, the EPM will also be used in 100% of Caleres products and shoeboxes by 2025. Footwear material solution providers have furthered their emphasis on recycled materials, bio-based materials, waterless dying, material consolidation and waste reduction to propel their shoe sustainability profiles.  

Social Perspective

Lately, incorporating diversity, equity and inclusion (DEI) has become the talk of the town as leading players strive to create a positive change in the industry, protect the rights of employees and leverage a culture of acceptance and belonging. To illustrate, Nike had a 50.4% representation of women in the global corporate workforce during FY 2021. NIKE Impact Report notes that the American multinational company has 100% pay equity across all employee levels on an annual basis and offers equitable and competitive benefits for all employees. It also fostered relationships with more than 50 external partners, such as Lesbians Who Tech, the Mom Project and Women Who Code, enabling the footwear behemoth to hire candidates from various backgrounds. Considering the soaring demand for socially sustainable footwear, leading shoe brands are poised to emphasize ESG pillars.

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

Governance Perspective

The significance of sound corporate governance has gained new heights to oversee sustainability initiatives, DEI opportunities, community affairs and labor practices. In essence, at Puma, leaders from CEO to the Team Head level have clearly defined sustainability targets in line with its Forever Better Sustainability Strategy. It is worth noting that the strategy is based on 10FOR25 target areas, including Human Rights, Climate Action, Plastic and the Oceans and Circularity, to integrate sustainability into the core business functions.

The German sporting goods company has underscored gender balance at management levels and reinforced the ratio of women in leadership positions. As of November 2022, women have filled 44% of leadership positions at Puma. Further, employees in leadership positions are trained in intercultural communication, diversity and inclusion, exhibiting commitment to a tolerant and open work environment through buoyant governance.

The effective implementation of ESG practices, along with organic and inorganic growth strategies, has become paramount to adding value to the company's growth. To put this in perspective, footwear companies are poised to use sustainability to systematically address challenges focusing on technological advancements, geographical expansion, ESG reporting and bullish sustainability targets. For instance, by May 2021, On met its goal to use 100% recycled, FSC-certified cardboard, as well as 100% recycled HDPE in its apparel packaging, the Zurich-based athletic company stated in the Impact Progress Report 2021.

Given the social and political pressure shoe companies grapple with, industry leaders are expected to act proactively to stay ahead of the game. According to Grand View Research, the global footwear market size stood at USD 373.19 billion in 2021 and could depict a 4.3% CAGR between 2022 and 2030.

About Astra – ESG Solutions by Grand View Research

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

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

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

The Role of Biofuels in Meeting ESG Goals

Stakeholders are counting on environmental, social and governance (ESG) goals to decarbonize the supply chain of the biofuel industry. The global push to replace fossil fuels with biofuels has sparked innovations and prompted industry players to invest in renewable feedstock. Sustainable solutions will warrant infrastructure developments, demand signals and sound corporate governance. Energy companies will likely consider ESG risks and opportunities for a low-carbon economy.

The need for clean energy has spurred the penetration of renewable sources. According to an IEA report, in the net zero scenario, biofuel produced from residues, wastes and dedicated crops that do not compete with food crops account for 50% of the biofuels consumed in 2030. Moreover, biofuels can prevent 4.4% of global road transport oil use. 

Businesses are responding to the need for low-carbon fuels to help decarbonize the automotive, transport, marine and aviation sectors. For instance, Raízen produced approximately 3 billion liters of ethanol from sugar cane, while around 26 million liters of second-gen cellulosic ethanol from inedible agricultural waste in 2022. Besides, during the same period, Shell inked a non-binding MoU with Lufthansa to supply sustainable aviation fuel (SAF) to help reduce carbon emissions from air travel. 

All that glitter is not gold. Green campaigners claim that biofuels could disrupt land use patterns that may lead to increased GHG emissions, air and water pollution and pressure on water resources, thereby augmenting food prices. According to Transport & Environment, palm biodiesel is three times worse for the climate than fossil fuel. Besides, the watchdog claimed that every day around 19 million bottles of rapeseed and sunflower oil, and 14 million bottles of soy and palm oil are burned across Europe. Amidst the flak received from governing bodies, forward-looking companies and innovators are expected to bolster their ESG profile to enhance their brand values. 

Valero Energy Emphasizes Reducing Scope 1 and 2 Emissions

Sustainable fuels have become paramount in contributing to the energy transition and a decarbonized economy. Forward-looking companies, such as Valero, have bolstered their emission targets and are gearing up to propel a low-carbon economy. The company has injected over USD 4.65 billion into low-carbon fuels business. In 2021, it allocated over 70% of the growth capital to low-carbon projects. Furthermore, the U.S.-based company is on course to minimize and displace 100% of refinery Scope 1 and 2 GHG emissions by 2035. 

The petroleum refinery is expected to augment the total annual capacity of the new renewable diesel plant to 1.2 billion gallons and 50 million gallons of renewable naphtha. Similar to Shell, Valero has spurred emphasis on sustainable aviation fuel: it is assessing the engineering capability to include SAF in the new renewable diesel facility in Port Arthur. Renewable fuel and SAF could be game changer to undergird the ESG profile and create long-term value for stockholders.

Diversity and Equity Garner Headlines in Bunge Limited

Mental well-being and diversity, to name a few, have become the bedrock for organizations to propel their ESG rankings. With shifting trends, training, diversity, equity and inclusion have amassed huge attention across business verticals. In 2021, Bunge offered its employees over 87,000 hours of training, while over 60 participants were in targeted female development programs. The company infers that around 44% of all new hires across the organization were women. 

Bunge Employee Resource Group has furthered its focus on community building and awareness initiatives, including Proud & Allied, Women @Bunge, Veterans, Bunge Global Black Network and Asian Professionals. Besides, the U.S-headquartered company also established a “Together We Grow” consortium—a coalition (public-private) between food companies, agriculture, the USDA, nonprofits and universities—to address diversity and inclusion within the food and agriculture sectors in the U.S. Brands will potentially put their energy into building an organization that complements diversity and fair representation at every level.

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

Commitment to Ethics & Compliance Paves Way for Petrobras

A governance model that fosters transparency, ethics, compliance and integrity has become instrumental in fostering ESG practices. Petrobras has formed an Ethics Commission to oversee compliance with the Code of Conduct of the Federal Senior Management (CCAF). It also supervises the Compliance Program through the Statutory Audit Committee with the support of the Senior Management. 

Compliance risk management has gained ground to monitor, define, control and report actions as a riposte to the risks and prioritize money laundering, fraud & corruption, harassment, antitrust, conflict of interest, trade sanctions and embargoes. The organization asserts it has an independent board for the compliance program. Robust history of good governance and manufacturing biofuel ethically will enable companies to bring ESG solutions to farmers and customers. 

The competitive nature of the industry indicates sustainable sourcing of products and the role of biofuels across business verticals will steer the growth trajectory. Governments exhibited resilience amidst havoc wracked by the COVID-19 pandemic. In June 2022, the USDA announced pouring USD 700 million to restore sustainable fuel markets grappling with the outbreak. Besides, the Wall Street Journal was reported to have mentioned that Archer Daniels Midland (ADM) would receive USD 50 million in U.S. aid to tone down losses during the pandemic. These ESG trends validate Grand View Research’s projected CAGR of the global biofuel market at 6.9% between 2019 and 2024.

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 AstraESG Solutions, powered by Grand View Research

How the ESG Industry is Addressing Food Waste at Every Stage

Environmental, Social and Governance (ESG) strategies have become paramount to steer positive change for the planet, people, communities and other stakeholders. Sustainability has garnered headlines with measures for waste reduction, carbon emissions and higher raw material costs. The global push to boost ESG performance has compelled brands to emphasize recycling and waste management.

Notably, the adoption of the Sustainable Development Goals suggests countries' commitment to helping halve per capita food waste at the consumer and retail levels and minimize food losses by 2030. Amidst efforts to bolster food accessibility, around 687 million people go hungry each day, according to a report cited by the World Bank. In essence, the organization notes that 1.3 billion tons of food are wasted by consumers and retailers or lost along the supply chain.

Investors, shareholders and other stakeholders are emphasizing the reduction of environmental footprint. Government agencies and organizations are responding to demands for ESG reporting. The emergence and implementation of policies have made a profound difference in the industry. In August 2022, U.S. President Joe Biden inked an Inflation Reduction Act, alluding to the injection of USD 369 billion into energy and climate projects in the next 10 years. Several provisions of the Act aim to minimize greenhouse gas emissions by a billion metric tons by 2030. 

Key Companies in Food Waste Management Industry

    • Veoli

    • Suez

    • Waste Management, Inc.

    • Republic Services, Inc.

    • Covanta Ltd.

    • Stericycle, Inc.

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

Environmental Perspective

Food waste management companies have exhibited bullish traction for ESG as they augment greenhouse gas emission- and food waste- reduction targets. Boosting sustainable practices to motivate vendor partners, stakeholders and communities can solidify the company's position in the global ecosystem. To illustrate, Albertsons Companies mentioned in its report the commitment to zero food waste going to landfills by 2030.

The American grocery company is vying to propel the reusability, recyclability and compostability of Own Brands packaging by 2025. Furthermore, it is gearing to achieve net zero emissions in its operations by 2040 and 47% carbon reduction from its operation by 2030. Prominently, the company suggested it diverted over 215 million pounds of food from landfill with the help of anaerobic digestion. Industry partners and leaders are expected to be inclined towards creating a sustainable food system, eradicating hunger and undergirding food security.

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

Social Perspective

Amidst the prevalence of food insecurity, an emphasis on customers' and employees' well-being has prompted industry leaders to bank on the social pillar. In doing so, stakeholders have upped their efforts on diversity, equity and inclusion to foster community engagement, augment the pool of diverse candidates, expand training and promote racial equity and social justice. For instance, in 2021, Kellogg's included Potential Severe Injury Fatality cases and rolled out EHS Insight Dashboards to offer better trends analysis of EHS data. The company claims to have no fatalities in 2021, with a global total Kellogg total reportable incident rate of 0.42.

The food company has furthered its efforts on diversity globally. For instance, as of December 2022, 25% of the 3,000 employees in Kellogg India are women. Women of Kellogg + (WOK+) has become pivotal in empowering women and advocating gender equity in the workplace. The American food manufacturing company is committed to Human Rights Campaigns Best Place to Work for LGBTQ Equality and Diversity Best Practices Index, among others. Companies are expected to embrace the commitment to diversity, equity and inclusion to deliver upsides to the communities, people and the environment.

Governance Perspective

Food waste management companies are counting on corporate governance, transparency, board diversity, corporate behavior and ethics to stay ahead of the curve. Diversity of experience, skills, backgrounds, qualifications, expertise and age will hold the key to selecting board members. Notably, in Veolia, seven out of ten directors on the Board of Directors of Environment are independent. The BoD is responsible for drafting the agenda of the annual shareholders meeting and appointing the chairman and the financial statements. The company has four committees: Research, Innovation and Sustainable Development Committee, accounts and audit committee, nominations committee and compensation committee.

Brands, such as Veolia, have made a giant stride in gender diversity to bolster their position in ESG performance. Prominently, the company has 33% women on the Executive committee and is gearing up for 25% women among Group executives by 2023. With gender diversity and professional equity gaining ground, companies are poised to create meaningful change through investments in governance.

The competitive landscape alludes to an emphasis on organic and inorganic strategies to tap into the global landscape. To put things in perspective, commitment to environmentally friendly food practices using state-of-the-art technologies may become pronounced in the ensuing period. The use of machine learning and AI could become the next big thing to reduce waste and propel sales through inventory management. Amazon asserts the Amazon Forecast has helped its customers in Greater China minimize product waste by 37%, leading to 22% cost savings across three merchandise categories and 168 stores.

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 AstraESG Solutions, powered by Grand View Research