The Growing Importance of ESG Metrics in Food Grocery Retail Industry

A strategic combination of brick-and-mortar stores and sustainability has come of age to help create a society free of hunger and waste—a commitment that is all but likely to foster the ESG performance of food grocery retailers. A holistic approach and concerted efforts for a circular economy have unlocked avenues of opportunities to underscore sustainability, complementing good governance, transparency, ethics, diversity, health & wellbeing, renewable energy and greenhouse gas reduction.

Grocery CEOs, shoppers, vendors, investors, NGOs and government organizations are zeroing in on ESG targets to streamline the path to sustainability. A spike in greenhouse gas emissions has meant grocers have upped their efforts on environmental, social and governance fronts—known as ESG.

With consumer behavior shifting towards sustainable products, more so during the COVID-19 pandemic, food manufacturing companies have exhibited resilience. Of late, brands are not shying from making their ESG performance public, communicating their milestones and sharing credentials.

Key Companies:

    • Walmart

    • Costco Wholesale Corp

    • 7-ELEVEN, Inc

    • Amazon.com Inc

    • The Kroger Co.

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

Walmart Echoes Green Growth

Millennials and the Gen Z population prioritize sustainability-marketed products as grocery shoppers emphasize GHG emission reduction and raw material conservation. Amidst the popularity of ready-made meals, consumers expect brands to adhere to sustainability goals. Brands are gearing to reduce virgin plastic content and invest in recyclable packaging. Walmart is heading to 100% recyclable, reusable or compostable packaging by 2025. The behemoth aims for 20% post-consumer recycled content in private-brand product packaging across North America by 2025.

The American retail brand is on the cusp of innovation and is committed to science-based targets (SBTs) to attain a 35% reduction in absolute scopes 1 & 2 emissions by 2025. In fact, the company is on course to minimize or avoid one billion metric tons of GHG emissions (Project Gigaton) in the global value chain by 2030. It claims that over 4,500 suppliers have joined the project since 2017.

On the other side of the spectrum of opportunities and challenges, an unprecedented rise in waste has prompted Walmart to use reusable packaging containers and navigate unsold food issues. The retailer giant is aiming for zero operational waste in the U.S., Canada and Mexico by 2025. Leading brands are expected to develop an ESG impact that resonates the sentiments of the circular economy.

Kroger Insists on Food & Product Safety to Bolster Philanthropy

The COVID-19 disruption was a wake-up call for retailers to reinforce responsible sourcing and foster quality food across the supply chain. A robust social profile is paramount to provide convenience and add value to customers through the inculcation of, including but not limited to, integrity, safety, respect and inclusion. Kroger has set bullish strategies across manufacturing and distribution centers, such as environmental monitoring programs, hazard analysis and risk-based preventive controls, leadership and training, food allergen control, food safety maintenance, cleaning practices and pest prevention.

Brands are positioning themselves to tap into social pillars to foster donations and meals for communities. Ever since the retail company set the Zero Hunger | Zero Waste plan in 2017, it has taken a giant stride to achieve the philanthropic goals of creating communities free from food waste and hunger. Kroger infers to have trained 98% of associates in personal safety, while it boasts of rescuing 94 million pounds of surplus food for donation. In 2021, the American brand asserted to have directed 546 million meals to communities.

The retailer explored diversity-focused development and learning opportunities to underpin positive change in the workplace. The company joined forces with historically Black colleges and universities (HBCUs) and Hispanic-serving institutions (HSIs) to foster a diverse talent pipeline. It essentially injected around USD 450 million into associate wages and training in 2021.

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

Costco Wholesale Underscores Corporate Governance

Strong corporate governance heralds a company culture that complements transparency, ethics & compliance, engagement in public policy, board diversity and human rights. The FY 2022 saw Costco make sustainability a "core part of the charter and responsibility" for the Board's Nominating and Governance Committee. It has also introduced ESG Executive Advisory Council and aligned executive compensation with ESG priorities, including but not limited to, waste reduction, diversity, equity and inclusion (DEI), climate and resource consumption.

Risk assessment in financial planning, strategy and business has become paramount to upholding sustainability standards. Costco has qualitatively analyzed and identified potential climate-related risks influencing the Food & Beverage and Multiline retail industries. In 2022, its global executives reportedly held in-depth climate-pertaining scenarios assessments to decipher risks and opportunities to supply chain, operations, goodwill, employees, members and products.

The retailer has taken a quantum leap in transparency through frameworks, including CDP. The retail giant has rolled out several frameworks to augment data security. The manufacturing company is counting on the NIST Cyber Security Framework (CSF), ISO27001 and the Payment Card Industry Data Security Standard (PCI DSS). The adoption of measures, such as multi-factor authentication, phishing detection and mitigation and file integrity monitoring, has furthered the company's governance policies.

At a time when brands are grappling to protect the planet and propel their business performance, creating a transparent baseline around GHG emissions could be the silver bullet. For instance, the AEON Group has set the AEON Decarbonization Vision 2050 to minimize CO2 emissions to zero at stores by 2040, helping achieve a decarbonized society. 

Growth Of The Food Grocery Retail Market

As of 2022, the global food grocery retail market is valued at USD 11,324.4 billion and is expected to grow at a compound annual growth rate (CAGR) of 3.0%. In addition to increased grocery expenditures induced by COVID-19 lockdown, higher online grocery sales volumes, and consumer polarization, the growth is primarily attributed to these factors. As a result of the pandemic, consumers became polarized where some were ready to pay for premium-priced products. The food & grocery retail sector has been altered by the COVID-19 pandemic.

Related Reports:

• Snack Industry ESG: https://astra.grandviewresearch.com/snack-industry-esg-outlook
  
  
• Dietary Supplements Industry ESG: https://astra.grandviewresearch.com/dietary-supplements-industry-esg-outlook
  
  
• Protein Supplements Industry ESG: https://astra.grandviewresearch.com/protein-supplements-industry-esg-outlook

About Astra – ESG Solutions by Grand View Research

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

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

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

ESG Trends Shaping the Online Grocery Industry

Grocery CEOs, consumers and grocers envisage online shopping as the next big thing, spurred by technological advancements and greater convenience. The COVID-19 onslaught was partly attributed to online grocery flooding the market. While leading players and startups jumped on the bandwagon, ESG watchdogs were wary of the sustainable impact the industry would have on the planet. Stakeholders are expected to harness gender equality, fair wages, waste reduction, responsible sourcing of farm produce and sound corporate governance. 

The ease of browsing, getting items ticked off and quick delivery have been a revelation—a delivery service delivering to multiple homes has negated the need to drive to the store. More than 17 million metric tons of CO2 pollution are attributed to weekly household trips to the grocery store, a report cited by the U.S. EPA claimed. Incumbent players have furthered investments in electric vehicles (EVs) to offset greenhouse gas emissions. In April 2022, India-based Swiggy, a food delivery company, joined forces with EVIFY to enable grocery and food delivery through EVs in Surat, Gujarat. 

Industry leaders are likely to emphasize upstream transportation (farm-to-retail) and foster last-mile transportation—pushing for deliveries and offsetting personal trips. Centralized grocery delivery services and fulfillment centers have brought a paradigm shift in minimizing GHG emissions and food loss. State-of-the-art technologies, including predictive analytics, can provide the silver bullet to prevent pilferage and streamline sourcing. Besides, boosting access to affordable and high-quality fresh food, along with the focus on diversity, integrity and transparency, will remain instrumental for a circular economy. 

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

Kroger and BigBasket Invest in Climate Strategy for a Sustainable Future

The online retail boom and an emphasis on speed and user experience—instant delivery—have disrupted e-commerce business models. Brands with sustainability strategies appeared resilient during the COVID-19 outbreak, banking on online shopping to conserve raw materials and minimize GHG emissions. Kroger is poised to establish a new Scope 3 goal for supply chain emissions reduction in line with its Science Based Targets initiative (SBTi) commitment. The American retail giant has set 2030 sustainable packaging goals, such as using 100% recyclable, reusable and/or compostable packaging. 

Amidst emerging climate risks and opportunities, Kroger inferred using infrared refrigerant leak-detection technology in 2,000 stores. Meanwhile, in 2021, Bigbasket, a TATA Enterprise-owned online grocery retailer, teamed up with New Leaf Dynamic to install a biomass-powered chiller that can save 186 tons of CO2 annually. The Indian giant cited in its Green Report 2022 that it produced 5,457,000 kWh of solar power (reducing 1,670 tons of GHG emissions) in 2022 and 5,458 electric delivery vehicles helped minimize 7012 tons of CO2 emissions during the period. 

Amazon Fresh Navigates Changing Social Landscape 

Amidst rampant layoffs and the prevalence of workplace injuries, grocery warehouses and fulfillment centers have prioritized the social pillar. In January 2023, Amazon announced over 18,000 job cuts, denting workers across industry verticals, including grocery stores. People employed as supply chain managers, program managers, software engineers and store designers bore the brunt in online grocery delivery and fresh stores businesses. That said, the American behemoth inferred in May 2023 that it had poured CDN 25 billion since 2010 in its Canadian operations, including job creation and establishment of data centers and fulfillment centers. In September 2021, the U.S. giant committed USD 1.2 billion to offer 300,000 employees education and skills training programs till 2025. 

Incumbent players have upped investments to make the workplace safer and foster a healthy environment. Amazon has a team of health coordinators, physiotherapists and advisors. The occupational doctors perform medical checks and report trends in major risk areas. 

The U.S. e-commerce company has augmented diversity, equity and inclusion (DEI) efforts to underscore its sustainability quotient. In 2021, it committed to a 30% rise year over year in hiring U.S. black employees in level 4 through level 7 from the preceding year’s hiring. The multinational company warrants 100% of employees to take inclusion training. 

Governance Key for Relentless Sustainable Goals of Rakuten and Walmart

Sound corporate behavior is second to none for an agile business process and an inclusive global system that complements ethical business practices. Rakuten creates a list of ESG themes with the assistance of external experts and refers to the UN Sustainable Development Goals and Sustainability Accounting Standards Board (SASB) Materiality Map.

The Japanese company has appointed Chief Compliance Officer (CCO) to undergird compliance management. It has banked on a risk-based approach to define high-risk issues and implement measures, such as prevention of money laundering and terrorist financing; prohibition of bribery and corruption; and adherence to competition, antitrust and other related laws. 

Rakuten has propelled board diversity—outside directors account for 58.3% of the BoD, while 25% are foreign directors. Meanwhile, Walmart expects Board members to disclose their race/ethnicity and gender annually. Its board had 27% women and 18% directors who are racially/ethnically diverse (as of April 2023). 

Millennials and Gen Z want the e-commerce sector to foster social contributions, operate in a responsible supply chain and bolster transparency. ESG reporting could be pronounced, prompting online incumbents to further their investments in sustainability. Grand View Research anticipates the global online grocery market size to depict upward growth through 2030. Investments in the circular economy can create momentum and be a differentiating factor in an ever-growing competition in the online grocery business. 

Related Reports:

• Real-time Payments Industry ESG: https://astra.grandviewresearch.com/real-time-payments-industry-esg-outlook
  
  
• Digital Payments Industry ESG: https://astra.grandviewresearch.com/digital-payments-industry-esg-outlook
  
  
• Business Process Outsourcing Industry ESG: https://astra.grandviewresearch.com/business-process-outsourcing-industry-esg-outlook

About Astra – ESG Solutions by Grand View Research

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

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

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

The Intersection of ESG and Innovation in the Bottled Water Industry

Concerted efforts to boost water conservation have prompted bottled water brands to bank on environmental, social and governance (ESG) pillars. Maintaining the delicate balance between the ecosystem and human needs will foster environmental sustainability. Brands are vying to bolster their sustainability journey with commitments across packaging, climate change, water and sourcing. Moreover, emphasizing labor management, supply chain labor standards, corporate governance, board diversity and transparency will develop resiliency and help produce high-quality and safe products. 

Prioritizing ESG has become paramount for leading companies to stay ahead of the game amidst stiff competition. Consumers have increasingly sought bottled water. According to the Beverage Marketing Corporation, bottled water outnumbered soft drinks in the U.S., amassing 15.7 billion gallons of water as of 2021. The total volume of packaged drinks surpassed the all-time peak of the carbonated drink of 15.3 billion gallons in 2004. Industry players are expected to bank on the three pillars as ESG reporting is poised to garner headlines while framing sustainable strategies. 

Key Companies in this theme

    • Nestlé, PepsiCo

    • The Coca-Cola Company

    • DANONE

    • Nongfu Spring

    • National Beverage Corp.

    • Keurig Dr Pepper Inc.

Environmental Perspective 

Sustainable packaging solution has received an impetus to negate the environmental impact of plastic bottles. According to the survey conducted by the Harris Poll for the International Bottled Water Association (IBWA), nine out of ten Americans sought the availability of bottled water wherever other drinks were sold. Soaring consumer preference for bottled water has prompted industry leaders to use recycled PET and HDPE plastic.

Prominently, PET bottled water containers have reduced material usage and weigh less. Moreover, rPET (recycled PET) and rHDPE (recycled HDPE) have become pronounced. In February 2023, Revalyu announced an infusion of USD 50 million to build a PET bottle recycling plant in the U.S. The company will use water- and energy-conserving advanced recycling methods on 12 million PET bottles per day when operation starts in 2024. With recyclable and sustainable packaging more in demand than ever, industry leaders will likely bolster their environmental profile. 

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

Social Perspective

Diversity, equity and inclusion (DEI) has become imperative to narrow the gender gap across organizations. Recruiting from diverse backgrounds, social dialogue and emphasizing workplace safety can provide promising growth opportunities. In 2021, Danone rolled out the “Future of Work” study to redefine the ways of working. Besides, it fosters equal pay for men and women and has deployed a parental policy globally, covering 91,628 employees. 

Companies have left no stone unturned to underpin and promote human rights. In 2021, Danone bolstered a partnership with UN Women and Bonafont in Mexico to equip and train women with entrepreneurship skills. The company has propelled its human rights policy as it has pledged to deploy and develop Human Rights Due Diligence (HRDD) systems emphasizing forced labor in its operations. In 2020, it attained the 5-year ambition of reducing lost time accidents by 50% between 2015-2020. Ensuring health & safety with a safe working environment will remain indispensable to streamline operations.

Governance Perspective

The business practices and principles designed to propel corporate governance, tax transparency, ethical behavior, accountability and board diversity have become pronounced. The Coca-Cola Company has an Audit Committee, a Committee on Directors and Corporate Governance, a Talent and Compensation Committee, an ESG and public policy committee, a Finance Committee and an Executive Committee to help smoothly discharge governance duties. 

In 2022, the Talent and Compensation Committee gave the nod to link the ESG performance measures to annual and long-term incentive programs, thereby fostering executive compensation. The beverage giant has also incorporated its 2030 Water Security Strategy and World Without Waste packaging strategy (50% recycled material in all packages by 2030) into the 2022-2024 incentive awards. 

The growing prominence of water security and the need for smart water policies has amplified the topic of water governance. Coca-Cola has incorporated certain ESG metrics to underscore water issues. It has over 225 bottling partners across 200 countries and territories. Moreover, in 2021, the drink company earned a spot on the “A-List” of CDP for leadership in corporate transparency and action on water security. 

Incumbent players have depicted increased traction for organic and inorganic growth strategies to tap into the global ecosystem. Brands are likely to map opportunities from collaboration, technological advancements, innovations and research & development activities. To illustrate, in December 2022, PepsiCo set a goal to double the reusable packaging for beverages to 20% by 2030. These trends suggest that the global bottled water market could expand at 6.7% CAGR between 2022 to 2030. 

Related Reports:

• Luxury Footwear Industry ESG: https://astra.grandviewresearch.com/luxury-footwear-industry-esg-outlook
  
  
• Handbag Industry ESG: https://astra.grandviewresearch.com/handbag-industry-esg-outlook
  
  
• Disposable Gloves Industry ESG: https://astra.grandviewresearch.com/disposable-gloves-industry-esg-outlook

About Astra – ESG Solutions by Grand View Research

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

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

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

The Role of ESG Reporting in the Bottled Water Industry

Concerted efforts to boost water conservation have prompted bottled water brands to bank on environmental, social and governance (ESG) pillars. Maintaining the delicate balance between the ecosystem and human needs will foster environmental sustainability. Brands are vying to bolster their sustainability journey with commitments across packaging, climate change, water and sourcing. Moreover, emphasizing labor management, supply chain labor standards, corporate governance, board diversity and transparency will develop resiliency and help produce high-quality and safe products. 

Prioritizing ESG has become paramount for leading companies to stay ahead of the game amidst stiff competition. Consumers have increasingly sought bottled water. According to the Beverage Marketing Corporation, bottled water outnumbered soft drinks in the U.S., amassing 15.7 billion gallons of water as of 2021. The total volume of packaged drinks surpassed the all-time peak of the carbonated drink of 15.3 billion gallons in 2004. Industry players are expected to bank on the three pillars as ESG reporting is poised to garner headlines while framing sustainable strategies. 

Key Companies in this theme

    • Nestlé, PepsiCo

    • The Coca-Cola Company

    • DANONE

    • Nongfu Spring

    • National Beverage Corp.

    • Keurig Dr Pepper Inc.

Environmental Perspective 

Sustainable packaging solution has received an impetus to negate the environmental impact of plastic bottles. According to the survey conducted by the Harris Poll for the International Bottled Water Association (IBWA), nine out of ten Americans sought the availability of bottled water wherever other drinks were sold. Soaring consumer preference for bottled water has prompted industry leaders to use recycled PET and HDPE plastic.

Prominently, PET bottled water containers have reduced material usage and weigh less. Moreover, rPET (recycled PET) and rHDPE (recycled HDPE) have become pronounced. In February 2023, Revalyu announced an infusion of USD 50 million to build a PET bottle recycling plant in the U.S. The company will use water- and energy-conserving advanced recycling methods on 12 million PET bottles per day when operation starts in 2024. With recyclable and sustainable packaging more in demand than ever, industry leaders will likely bolster their environmental profile. 

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

Social Perspective

Diversity, equity and inclusion (DEI) has become imperative to narrow the gender gap across organizations. Recruiting from diverse backgrounds, social dialogue and emphasizing workplace safety can provide promising growth opportunities. In 2021, Danone rolled out the “Future of Work” study to redefine the ways of working. Besides, it fosters equal pay for men and women and has deployed a parental policy globally, covering 91,628 employees. 

Companies have left no stone unturned to underpin and promote human rights. In 2021, Danone bolstered a partnership with UN Women and Bonafont in Mexico to equip and train women with entrepreneurship skills. The company has propelled its human rights policy as it has pledged to deploy and develop Human Rights Due Diligence (HRDD) systems emphasizing forced labor in its operations. In 2020, it attained the 5-year ambition of reducing lost time accidents by 50% between 2015-2020. Ensuring health & safety with a safe working environment will remain indispensable to streamline operations.

Governance Perspective

The business practices and principles designed to propel corporate governance, tax transparency, ethical behavior, accountability and board diversity have become pronounced. The Coca-Cola Company has an Audit Committee, a Committee on Directors and Corporate Governance, a Talent and Compensation Committee, an ESG and public policy committee, a Finance Committee and an Executive Committee to help smoothly discharge governance duties. 

In 2022, the Talent and Compensation Committee gave the nod to link the ESG performance measures to annual and long-term incentive programs, thereby fostering executive compensation. The beverage giant has also incorporated its 2030 Water Security Strategy and World Without Waste packaging strategy (50% recycled material in all packages by 2030) into the 2022-2024 incentive awards. 

The growing prominence of water security and the need for smart water policies has amplified the topic of water governance. Coca-Cola has incorporated certain ESG metrics to underscore water issues. It has over 225 bottling partners across 200 countries and territories. Moreover, in 2021, the drink company earned a spot on the “A-List” of CDP for leadership in corporate transparency and action on water security. 

Incumbent players have depicted increased traction for organic and inorganic growth strategies to tap into the global ecosystem. Brands are likely to map opportunities from collaboration, technological advancements, innovations and research & development activities. To illustrate, in December 2022, PepsiCo set a goal to double the reusable packaging for beverages to 20% by 2030. These trends suggest that the global bottled water market could expand at 6.7% CAGR between 2022 to 2030. 

Related Reports:

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

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

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

About Astra – ESG Solutions by Grand View Research

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

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

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

ESG and Future Trends in the Life Science Analytics Industry

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

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

IBM Views Sustainability as Vehicle to Drive Business

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

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

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

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

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

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

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

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

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

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

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

About Astra – ESG Solutions by Grand View Research

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

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

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

Unlocking the Potential of the Digital Payments Industry ESG

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

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

PayPal Propels Science-Based Targets (SBTs)

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

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

Global Payments Underscores Philanthropic Activities

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

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

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

JP Morgan Embeds Transparency and Accountability

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

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

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

Related Reports: 

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

About Astra – ESG Solutions by Grand View Research

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

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

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

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

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

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

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

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

Novartis Explores Environmental Challenges and Opportunities

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

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

Bristol-Myers Squibb Advances Inclusion and Diversity Efforts

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

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

AstraZeneca Encourages Transparency

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

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

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

About Astra — ESG Solutions By Grand View Research

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

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

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