Technology companies play a crucial role in driving innovation and shaping the future. Embracing ESG practices helps them build and maintain a positive reputation. ESG stands for Environmental, Social and Governance which involves adopting sustainable practices, addressing social impact, and ensuring effective governance.
Since companies leverage AI and other technologies to gain a competitive edge and market opportunities, they must implement ESG strategies for long-term success. According to a KPMG report, 26 percent of companies have significant incorporation of ESG into their strategic planning.
Conversely, the report revealed that 45 percent of companies struggle to link their growth strategy with a wider societal purpose. If you are a tech enthusiast, an entrepreneur, or an industry leader, this article explores the innovative approaches of technology companies employing ESG initiatives and showcasing their commitment towards building a more sustainable future.
Let us understand ESG.
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What is ESG?
Environmental, Social, and Governance (ESG) refers to a set of criteria that companies use to measure their sustainability and societal impact. It helps in
- Reputation Management
- Investor Appeal
- Regulatory Compliance
- Talent Attraction and Retention
- Long-term Viability
The benefits of ESG practices are vast and tech companies are well aware of its significance. Some of the practices to implement ESG strategies in businesses are:
- Integrating environmental initiatives into every aspect of business, right from manufacturing to supply chain and distribution.
- Building products that generate sustainable value for society and solve problems. For example, OPPO’s Zero-Power Tag: an Internet of Experience (IoE) technology.
- Supporting emerging companies on their ESG journeys.
Now, move on to see which technology companies are embracing ESG strategies.
Top 10 Tech Companies Leading ESG Strategies
As there are a vast number of companies around the world in the technology sector embracing ESG, we have compiled a list of 10 industry players leading the way.
1. Microsoft
By 2030, Microsoft aims to achieve carbon negativity (microsoft.com/en-us/corporate-responsibility/sustainability/report), water positivity, and zero waste. The software company is focused on expediting progress toward its commitments and beyond. It is also investing in new approaches to meet the realities of this challenge.
2. Salesforce
American cloud-based software company Salesforce strives to implement transparent and inclusive ESG practices (salesforce.com/company/esg-and-impact/). Its ESG initiatives revolve around building a sustainable, low-carbon future with a carbon-neutral cloud and striving to be a net-zero greenhouse gas emissions company.
3. Apple
Computer and consumer electronics company Apple aims to achieve carbon neutrality for its entire footprint by 2030. In FY 2021, the company shipped nearly 20 per cent of the materials in Apple products which came from recycled sources.
4. NVIDIA
During the COVID-19 pandemic, NVIDIA’s technology has been instrumental for scientists, public health experts, and companies. 23 of the world’s top 30 most energy-efficient supercomputers are powered by NVIDIA. The company is committed to acquiring or generating sufficient renewable energy to offset 100% of its global electricity consumption.
5. Cisco
One of the leading networking and software companies Cisco is committed to achieving net zero across its value chain by 2040. The company’s net-zero goal consists of two near-term targets:
- To minimize absolute Scope 1 and Scope 2 emissions by 90 percent by FY 2025.
- To reduce absolute Scope 3 emissions from purchased goods and services, upstream transportation and distribution, and use of sold products 30 per cent by FY 2030.
6. Verizon
Multinational telecommunications conglomerate Verizon aims to source renewable energy equivalent to 50 percent of its annual electricity usage by 2025 and 100 percent by 2030. The company’s ESG strategy is built upon four pillars: governance, integration, engagement, and reporting.
7. Google
Search Engine giant Google aims to reduce 50% of its combined scope 1, scope 2, and scope 3 absolute emissions before 2030. It also plans to invest in nature-based and technology-based carbon removal solutions to neutralize its remaining emissions. Google is also committed to producing 24/7 carbon-free energy across its data centres and office campuses by 2030.
8. IBM
In 2022, IBM surpassed its 2025 target for reducing its operational GHG emissions, which marked its goal of achieving net-zero operational GHG emissions by 2030. The company plans to train 1,000 tech suppliers in technology ethics by 2025. It is also looking to implement a minimum of 3,000 energy conservation projects to avoid the consumption of 275,000 MWh of energy from 2021 to 2025.
9. Intel Corporation
The world’s leading semiconductor company Intel is committed to achieve net-zero GHG emissions across its global operations (known as Scope 1 and 2) by 2040. The company aims to reduce 30 per cent supply chain GHG emissions by 2030 and accomplish net-zero upstream Scope 3 GHG emissions by 2050.
10. SAP
In 2023, the world’s leading software company SAP achieved net carbon neutrality in its operations. Now, the company aims to achieve net zero along the entire value chain by 2030. Its facilities and data centres are already carbon neutral.
Technology companies have the tools and mandate to help them lead in building a better future. By prioritizing environmental sustainability, social responsibility, and strong governance, they can create a resilient, forward-thinking, and successful future. In case you also have other companies leading in ESG, comment box is yours. Share your thoughts in comment box below.
Also Read: The EU’s First Draft of the General-Purpose AI Code of Practice
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