Environmental aspects weigh heavily in ESG-related discussions by companies, finds GlobalData

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Under mounting pressure from regulators and investors, businesses worldwide across sectors have been progressively embracing environmental, social, and governance (ESG) frameworks. Against this backdrop, companies are discussing ESG extensively in their filing documents, with a particular emphasis on the significant influence of environmental aspects, according to GlobalData, a leading data and analytics company.

Misa Singh, Business Fundamentals Analyst at GlobalData, comments: “Companies across sectors are increasingly showing interest in ESG-based initiatives, as it assumes a significantly larger role within their business strategy planning. However, the emphasis seems to be more on environmental aspects and eco-friendly products as the world begins to focus on climate change, decarbonization and sustainable operations. For instance, while tech companies are identifying ways to reduce carbon footprint, green finance is gaining traction among financial services firms.”

An analysis of GlobalData’s Company Filing Analytics Database reveals that discussions around ESG in the filing documents of companies in 2023 so far mostly revolved around climate change, recycling programs, renewable energy, net zero, environmental protection, sustainable development, waste management, green initiatives, electric vehicles, alternative fuel, pollution control, noise reduction, and batteries.

Technology companies such as Meta Platforms Inc have a vision to transition to a zero-carbon economy. The social technology platform, in partnership with Aspiration Partners, is committed to a pre-order carbon removal credit.

Meanwhile, financial services firms are engaged in discussions related to funding low-carbon transformation. For instance, EnTie Commercial Bank is offering a range of green financial products and services, encouraging customers to engage in low-carbon transformation and invest in green finance. American Express Co has set a goal to support initiatives, partnerships, and programs that address the adverse effects of climate change and pollution.

Joby Aviation Inc., an aerospace & defense company, is supporting the development of hydrogen propulsion. It is implementing additional recycling programs for carbon fiber waste and tested aircraft batteries. Likewise, Bharat Electronics Ltd discussed electronic waste that is generated during the manufacturing of products. It is segregated, stored, and handed over to authorized agencies of the Pollution Control Board for scientific processing, recovery, and recycling.

Within the automotive industry, companies such as Ford Otomotiv Sanayi AS are working on developing new carbon-neutral fuel technologies such as electric vehicles, hydrogen internal combustion engine technologies, and hydrogen fuel cells. Nexen Tire Corp plans to increase the proportion of eco-friendly products and bring in relevant products in the future. They are focusing on investing in new facilities to draft fuel economy reduction and noise reduction designs.

Oil & gas cos are also doing their bit. For instance, Oil and Natural Gas Corp Ltd is planning to spend INR1 trillion on green initiatives by 2030 to reduce carbon footprint as part of its broader effort to achieve net zero (Scope-1 and Scope-2) emissions by 2038.

Singh concludes: “The escalating adoption of ESG frameworks by companies irrespective of sectors underscores a fundamental transformation in corporate strategy. This collective effort signals not just compliance but a genuine dedication to shaping a more environmentally conscious and responsible future.”


About GlobalData

4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.

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