The Role of ESG in the Telecom Services Industry [Business]
Telecom operators are pushing to the limit to use environmental, social and governance (ESG) measures and reporting to attract investments. ESG integration into businesses can help stakeholders align with consumers’ demand for sustainable products, foster employee motivation, underpin biodiversity, minimize carbon emissions and reduce operational costs. Amidst industry leaders grappling with unpredictable challenges, socially responsible investing can be the silver lining to underpin workforce diversity, digital inclusion ventures, employee engagement and cut e-waste.
Notably, frameworks, such as the Task Force on Climate-Related Financial Disclosures (TCFD), Sustainability Accountability Standards Board (SASB) and Carbon Disclosure Project (CDP) have become paramount for ESG reporting that can serve as robust standards to satisfy regulators and boost access to capital. Companies are likely to invest in sustainability goals for strong governance, responsible business practices and effective leadership. Of late, regulators have shown an increased inclination for ESG as stakeholders foster their engagement with civil society, employees and customers.
Discover more regarding the practices and strategies being implemented by industry participants in the Telecom Services Industry ESG Thematic Report, 2023, published by Astra ESG Solutions
Telecom services have been invaluable in propelling IoT services and applications amidst soaring carbon emissions. According to the International Finance Corporation, diesel generators power more than 90% of the one million off-grid and bad-grid sites, producing over 45 million tons of CO2 annually. Besides, the number of bad and off-grid telecommunications sites is likely to rise by 22% over the next ten years. In the midst of the cacophony, incumbent players are expected to emphasize renewable and net-zero greenhouse gas options.
Vodafone Relishes Shift towards Circular Economy
As stakeholders realize that business goals should not come at a cost to the environment, ESG performance has grabbed immense headlines. Since July 2021, Vodafone Group has powered its European markets with 100% renewable electricity (as per its 2023 TCFD report). The company is bullish on achieving net zero across entire operations by 2040. In a path towards net zero, the British company is committed to reaching net zero for its operations (scope 1 and 2) by 2030.
In April 2023, Vodafone joined forces with Citi Group and CDP to minimize scope 3 emissions. Vodafone and Citi Group unveiled plans to provide preferential supply chain financial rates for telecom suppliers exhibiting more sustainable operations, disclosing emissions data and scoring highly against environmental performance criteria.
Verizon Communications Bats for Inclusive Environment
Diversity across spectrums has become the talk of the town, while other social aspects, including health & safety, product safety & quality, privacy & data security, health & demographic risks, financial product safety and access to communication, continue to gain ground. Verizon has taken a giant leap in diversity and inclusion — 59.7% of employees are women or people of color in its U.S. workforce. Besides, it has injected around USD 55 billion with diverse suppliers over the last 10 years. In June 2023, Verizon-owned Visible rolled out the Pride Month campaign and contemplated donating USD 50,000 to SAGE, an organization advocating for older members of the LGBTQ+ community.
Innovators are taking a quantum leap towards providing healthcare benefits, including high-quality comprehensive medical, vision, dental and life insurance coverage to their employees. In 2022, Verizon poured USD 2.5 billion for around 460,000 employees, eligible retirees and their dependents, providing healthcare benefits and services. Additionally, recruiting diverse talent has long been the go-to strategy to stay ahead of the curve. The American company has teamed up with the National Academy Foundation to help high school students for college and careers in STEM.
Telefonica SA Prioritizes Good Governance
Telecom operators’ approach to leadership, transparency, internal controls, ethics and corporate governance can dictate the company’s trajectory in the ESG rankings. Operators can report on governance aspects, including whistle-blower schemes, tax strategies, executive pay, board diversity and data breaches. To illustrate, Telefonica claims it has provided training about the code of ethics to more than 91,000 professionals. The telecom behemoth reportedly performed over 18,000 audits on suppliers in 2022; it is contemplating representation of sustainability at 30–35% of the company’s financing in 2024.
As sustainability receives an impetus with the ESG integration, it is worth mentioning that the Sustainability and Quality Committee oversees the Responsible Business Plan implementation, while the Audit and Control Committee oversees specific aspects, including risk analysis, regulatory compliance and management process. In the Spanish company, independent directors and women account for 60% and 33% of the Board, respectively. Furthermore, the mobile network provider asserts there were no confirmed cases of corruption in 2022 and the preceding year.
Is your business one of the participants in the Telecom Services Industry? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices
ESG Creating Value for Stakeholders
The rising recognition of ESG in investment and business decision-making has leveraged telecom service providers to boost their reputation, manage risk, enhance financial performance, adhere to regulations and contribute to a circular economy. Investors are increasingly relying on ESG factors to assess companies and make robust investment decisions. The global telecom service market is likely to expand at around 5.4% CAGR through 2028. With climate change posing risks to the industry, commitment to sustainability could be worth a bet to undergird telecom services.
About Astra – ESG Solutions By Grand View Research
Astra is the Environmental, Social, and Governance (ESG) arm of Grand View Research Inc. - a global market research publishing & management consulting firm.
Astra offers comprehensive ESG thematic assessment & scores across diverse impact & socially responsible investment topics, including both public and private companies along with intuitive dashboards. Our ESG solutions are powered by robust fundamental & alternative information. Astra specializes in consulting services that equip corporates and the investment community with the in-depth ESG research and actionable insight they need to support their bottom lines and their values. We have supported our clients across diverse ESG consulting projects & advisory services, including climate strategies & assessment, ESG benchmarking, stakeholder engagement programs, active ownership, developing ESG investment strategies, ESG data services, build corporate sustainability reports. Astra team includes a pool of industry experts and ESG enthusiasts who possess extensive end-end ESG research and consulting experience at a global level.
Need expert consultation around identifying, analyzing and creating a plan to mitigate ESG risks related to your business? Share your concerns and queries, we can help!
How ESG Factors are Shaping the Nutritional Supplements Industry [Business]
Robust environmental, social and governance (ESG) performance has become a hallmark of a sustainable-focused nutritional supplements industry. The ethos of sustainability has gradually become interwoven in the corporate environment. The ESG performance has gradually become one of the deciding factors for consumers, including millennials, baby boomers and people of all genders during their buying journey. The strategic approach to meet sustainability goals will foster a responsible business practice to achieve Sustainable Development Goals (SDGs).
Investors, venture capitalists, entrepreneurs and other stakeholders have raised their ESG bar as sustainability has assumed a vanguard position in boardrooms. Green initiatives to create positive change will encourage companies to fulfill their ESG targets, including but not limited to, good corporate governance, healthy workplace, reduced environmental impact of product life cycle and propel diversity.
Nestle Creates Ripple Effect with Bullish Environmental Goals
Amid the knock-on effects of Russia’s invasion of Ukraine, supply chain disruptions and energy shortages, companies have shown a strong commitment to health and nutrition. Nestle is on a path towards net zero emissions by 2050 as it aims to reduce greenhouse gas emissions by 50% by 2030 from the 2018 baseline. The food giant is also committed to sourcing 20% of key ingredients through regenerative agriculture techniques by 2025. The Swiss company has audacious goals to minimize virgin plastics by one-third by 2025 and reduce water use in factories by 6 million between 2021 and 2023.
The shift to regenerative farming and a renewed focus on recycling have become palpable to help farmers protect forests and the ecosystem. The urge to bolster environmental profile has prompted Nestle to not only put a break on scope 1 & 2 emissions but also scope 3, a go-to strategy to bolster regenerative food systems. In 2022, the food & drink company collaborated with farmers to help them store carbon in soil and enhance biodiversity, soil health, water security and quality.
Is your business one of participants to the Nutritional Supplements Industry? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices
Amway Gives Back to Communities
Nutritional supplement manufacturers are navigating opportunities and challenges stemming from the prevalence of malnutrition. UNICEF reported in June 2022 that around 8 million children under 5 were prone to death from severe wasting (in 15 crisis-hit countries). The spiraling global food shortage on the back of climate change, the COVID-19 pandemic and the Russia-Ukraine war have compelled leading players to bolster their commitment to society.
Amway has joined forces with global organizations and Nutrilite scientists to introduce a micronutrient powder Nutrilite Little Bits, to offer essential nutrients required for proper growth. In August 2022, over 400 Amway employees served 17 non-profit organizations, clocking over 2,700 volunteer hours and underpinning 24 projects, including packing meals for community distribution. Besides, the company has taken a giant leap in bolstering inclusive entrepreneurship, allowing people to build the tools required to establish their businesses. The U.S.-based company has provided digital platforms, tools and free educational resources to over one million Amway Business Owners (ABOs).
Governance Garners Stakeholders’ Attention in Herbalife
Lately, investors and corporates are investing in ESG integration, emphasizing transparency, traceability, risk identification, ethics & compliance and board diversity. In doing so, effective February 11, 2022, Herbalife Nutrition Ltd. announced that the ESG Committee would help the board oversee ESG activities and practices, such as stakeholder engagement and risks, programs, policies and practices.
The committee would comprise the Board-appointed three directors. Some duties and responsibilities, such as reviewing investor governance sentiment in coordination with the nominating and corporate governance committee, have strengthened the company’s governance pillar. It has fostered its corporate governance policies to further ESG performance. In essence, the director must be deemed independent to be eligible for the Board’s Audit Committee, Nominating and Corporate Governance Committee and Compensation Committee.
The nutrition company has received bullish support from the board toward digitization. To illustrate, in August 2022, the Board gave a green signal for digital transformation as the American company announced an infusion of USD 400 million to bolster the growth initiative.
The underlying business trends indicate that brands will emphasize sustainability as ESG emerges as a key evaluation parameter. Predominantly, Glanbia has pledged to minimize carbon emissions (scope 1 and 2) by 31% in manufacturing sites by 2030. The company is also committed to a 50% reduction in food waste by 2030 and zero waste to landfill at operational sites by 2025. The global nutritional supplement market could depict a 6.3% CAGR between 2022 and 2030, infers Grand View Research.
Key Companies in this theme
• Amway
• Nestle
• Glabania PLC
• PepsiCo
• Herbalife International of America
• Abbott Nutrition
About Astra – ESG Solutions By Grand View Research
Astra is the Environmental, Social, and Governance (ESG) arm of Grand View Research Inc. - a global market research publishing & management consulting firm.
Astra offers comprehensive ESG thematic assessment & scores across diverse impact & socially responsible investment topics, including both public and private companies along with intuitive dashboards. Our ESG solutions are powered by robust fundamental & alternative information. Astra specializes in consulting services that equip corporates and the investment community with the in-depth ESG research and actionable insight they need to support their bottom lines and their values. We have supported our clients across diverse ESG consulting projects & advisory services, including climate strategies & assessment, ESG benchmarking, stakeholder engagement programs, active ownership, developing ESG investment strategies, ESG data services, build corporate sustainability reports. Astra team includes a pool of industry experts and ESG enthusiasts who possess extensive end-end ESG research and consulting experience at a global level.
Need expert consultation around identifying, analyzing and creating a plan to mitigate ESG risks related to your business? Share your concerns and queries, we can help!
Environmental Innovations in Biotechnology: A Path to Sustainability [Business]
The biotechnology industry plays a crucial role in developing products that are both environmentally friendly and economically profitable. By adapting and modifying biological organisms, processes, and systems found in nature, biotechnology contributes to sustainable industrial development. This article explores the impact of ESG considerations in the biotechnology sector, highlighting the environmental benefits, social contributions, and governance practices that shape the industry's trajectory.
Environmental Advancements in Biotechnology
Biotechnology has the potential to revolutionize agriculture and contribute to sustainable food production. By increasing crop yields and designing more efficient crops, biotechnology can manipulate primary energy flows and reduce the use of fossil fuels in agricultural systems. This technology also helps address environmental challenges such as deforestation and soil erosion. Additionally, biotechnology enables resource recovery, recycling, and hazardous waste disposal, offering environmentally beneficial solutions.
The COVID-19 pandemic has further showcased the positive impact of biotechnology on healthcare infrastructure. Through advancements in biotechnology, the pharmaceutical industry has expanded opportunities for drug development and vaccine manufacturing. These developments have improved healthcare infrastructure, enabling better diagnosis, treatment, and reduction of the seroprevalence rate of COVID-19 infections.
Is your business one of participants to the Biotechnology Industry? Contact us for focused consultation around ESG Investing, and help you build sustainable business practices
ESG Trends
The biotechnology industry is at the forefront of environmental innovations aimed at increasing efficiency and promoting sustainability. Governments, public institutions, and private organizations alike are investing heavily in environmental biotechnology to protect biodiversity and address waste treatment and bioremediation challenges. This sector has witnessed significant advancements in waste treatment and pollutant removal methods, replacing inefficient and costly chemical-based approaches.
Moreover, industrial biotechnology extends beyond biofuel production. It has transformed various industrial processes, ranging from the production of detergents and textiles to vitamins and antibiotics. By conserving natural resources, reducing costs, and accelerating the development of greener products, industrial biotechnology contributes to sustainable practices.
The biotechnology sector also aligns with the United Nations' Sustainable Development Goals (SDGs) to achieve sustainable development solutions. It addresses SDG 1 by offering agricultural biotechnology solutions that help farmers increase their incomes and reduce vulnerability to climate change. In pursuit of SDG 2, biotechnology produces healthier and more productive crops, reducing food waste and extending shelf life. SDG 3 benefits from biotechnology's development of medicines, vaccines, and tools to prevent and contain epidemics and improve global healthcare quality. Biotechnology also supports SDG 6 by purifying water using bacteria and plants, ensuring clean water and sanitation. Additionally, biotechnology innovations contribute to SDG 8 by providing economic opportunities through the development of medicines and agricultural products. SDG 9 is advanced through investments in biotechnology parks, research and development infrastructure, and partnerships with international organizations.
ESG Risks and Challenges
While biotechnology offers numerous benefits, it also presents risks and challenges. The commercial availability of biotechnology has led to increased exploitation of biological resources for various applications, including food productivity enhancement, disease treatment, and energy generation. However, these applications have been associated with undesirable outcomes such as diminished species biodiversity, agrobiodiversity loss, environmental contamination, and appropriation of biodiversity through intellectual property rights and patents in developing countries.
The use of genetic engineering and antibiotic marker genes in biotechnology can contribute to the problem of antibiotic-resistant bacteria. Genetic modifications in crops have raised concerns about the loss of natural farming practices, altering the very essence and taste of food. To ensure sustainable practices, biotechnology must prioritize natural and ethical farming methods that do not solely rely on agrochemicals and do not exploit humans, animals, and natural flora and fauna.
The Growth of the Biotechnology Market
The global biotechnology market is projected to reach USD 1,023.92 billion by 2021, with a compound annual growth rate (CAGR) of 13.9% from 2022 to 2030. Governments worldwide are supporting this market by modernizing regulatory frameworks, improving approval processes and reimbursement policies, and standardizing clinical trials. Collaborations between government bodies and biotech companies focus on research and development to develop drugs and vaccines for various diseases.
Key Companies
• AstraZeneca
• Gilead Sciences, Inc.
• Bristol-Myers Squibb
• Sanofi
• Biogen
• Abbott Laboratories
• Pfizer, Inc.
• Amgen, Inc.
• Novo Nordisk A/S
• Merck KGaA
• Johnson & Johnson Services, Inc.
• Novartis AG
• F. Hoffmann-La Roche Ltd.
• Lonza
Key Benefits of the Biotechnology Industry ESG Thematic Report
The Biotechnology Industry ESG Thematic Report offers several key benefits to its readers. It provides a comprehensive understanding of macro-economic factors, policies, regulations, and innovations impacting the biotechnology industry globally. The report delves into infrastructure developments and ESG issues relevant to the industry, allowing businesses to identify risks and opportunities among leading players. Moreover, it offers clear insights into company actions, progress, and impact, empowering investors to make informed decisions.
Browse more ESG Thematic Reports from the Healthcare Sector, published by Astra - ESG Solutions
About Astra – ESG Solutions By Grand View Research
Astra is the Environmental, Social, and Governance (ESG) arm of Grand View Research Inc. - a global market research publishing & management consulting firm.
Astra offers comprehensive ESG thematic assessment & scores across diverse impact & socially responsible investment topics, including both public and private companies along with intuitive dashboards. Our ESG solutions are powered by robust fundamental & alternative information. Astra specializes in consulting services that equip corporates and the investment community with the in-depth ESG research and actionable insight they need to support their bottom lines and their values. We have supported our clients across diverse ESG consulting projects & advisory services, including climate strategies & assessment, ESG benchmarking, stakeholder engagement programs, active ownership, developing ESG investment strategies, ESG data services, build corporate sustainability reports. Astra team includes a pool of industry experts and ESG enthusiasts who possess extensive end-end ESG research and consulting experience at a global level.
Need expert consultation around identifying, analyzing and creating a plan to mitigate ESG risks related to your business? Share your concerns and queries, we can help!
