ESG in the manufacturing industry is important for enhancing sustainability and ESG commitment, across all points in the supply chain. A survey of CEOs points to significant market cap increase (for some, as high as 10%) for companies who committed and invested into ESG programs. In addition, public companies are increasingly required to publish their ESG strategy and reporting, both for government and investors. Investors ask for ESG commitments before investing in a company, and regulators are inducing pressure to promote transparency in ESG reporting.
Manufacturing companies are setting up ESG-minded best practices and initiatives, pledging to reduce emissions, improve energy and water efficiency, and achieve net-zero emissions in their procurement & logistics operations. They are also partnering with suppliers and buyers to reduce packaging waste and encourage recycling and reuse initiatives to reduce wastage. ESG programs in the manufacturing sector need to be set up to promote workers’ safety and well-being. Providing training to upskill for the latest innovations helps social development programs and ensure the workforce is appropriately trained and equipped for future innovation.
- Reduce greenhouse gas emissions, waste generation, energy and water consumption in procurement, manufacturing, and distribution operations
- Increase utilization of renewable energy sources and recyclable materials, and improve environmental performance of the supply chain, transportation logistics, recycling and disposal of pharmaceutical and chemical products
- Develop greener product packaging to reduce environmental impact or address environmental challenges
- Improve affordability of products for underserved populations
- Increase diversity and inclusion in workforce composition, and patient access from financially and socially underserved communities
- Conduct humane and ethical research & development
- Maintain privacy policies
- Support employees, community health, and wellness initiatives
- Establish sustainability policies and monitoring processes
- Provide transparency and accountability in ESG information
- Comply with Federal, State, and Local laws and regulations
- Set up awareness training to prevent, notify, and action for employee harassment
- Set up controls and governance
- Set up a Dedicated ESG Platform to gather ESG data from across the company