5 companies leading in environmental, social and governance (ESG) (2024)

Environmental, social and governance (ESG) frameworks are not a new phenomena to the business world. In fact, investment in ESG initiatives date back to the early 2000s.

However, as new targets emerge for the preservation of biodiversity and the mitigation of climate change, there’s a greater emphasis on the enormous potential of business investment in environmental, social and governance issues and how companies can make a significant contribution to reaching biodiversity goals. And as a result, more business leaders are seeing the compounding benefits of investing in ESG.

Some of the benefits of investing in ESG for business include:

Reputational benefits: Investing in ESG initiatives can support employee retention and customer loyalty through good PR
Business and market benefits: Successful ESG initiatives can lead to innovation in products, giving companies the edge in market
Workforce benefits: ESG creates opportunities for employee development and in some cases, job creation for local communities
Long-term benefits: By investing in a more sustainable business model early, companies can ensure long-term resilience in volatile markets

With all this in mind, let’s take a look at the companies that are pushing the boundaries when it comes to their environmental, social and governance policies.

Companies excelling in ESG initiatives

ESG covers a broad range of issues divided into three distinct areas: environmental (covering things like energy consumption, waste water, carbon emissions etc), social (how a company treats its workforce, supply chain workers or impacts local communities), and governance (the policies and practises a business puts in place to tackle the aforementioned issues).

Many companies have made strides in each of these areas thanks to robust ESG practices. Let’s take a look at some leaders in the field.

ESG at Salesforce

Cloud-based software company, Salesforce, is a leader within the technology space when it comes to adopting a rigorous ESG strategy. They release an annual Stakeholder Impact Report which outlines the progress and impacts made by the business in the areas of environmental, social and governance.

Salesforce adheres to internationally verified methodologies and frameworks when reporting on their projects, including the Sustainability Accounting Standards Board’s (SASB) Software and IT Services sector guide and the Task Force on Climate-Related Financial Disclosures (TCFD), among others.

Some of their ESG achievements in 2022 included:

ESG at Coca-Cola Europacific Partners

Coca-Cola Europacific Partners is the European bottler and distributor of Coca-Cola beverages and has made great strides in developing their ESG frameworks to reduce environmental impact.

The company has several focus areas as part of their framework around environmental, social and governance issues:

Packaging: The business is making strides to reduce plastic pollution from its packaging. In 2022, 98.7% of product packaging in Europe was recyclable and 48.5% of PET used in their plastic bottles was recycled.
Communities: Realising the importance of supporting local communities, the business has invested in several initiatives to aid communities via employee volunteering and business investment. They invested €12.2 million in community projects in 2022.
Water: Knowing that water is a vital resource, the business has ambitious plans to preserve and replenish 100% of the waste water it uses to make its products. They replenished 105.5% of the water they used in 2022.
Climate: The business has goals to drastically reduce emissions and reach net zero emissions by 2040.

ESG at Workday

Enterprise Management Cloud provider, Workday, has put in place a thorough ESG framework that focuses on sustainability and community-based projects. Their 2023 Global Impact report outlined the progress they’ve made in these areas:

Committing to net zero carbon emissions; 100% achieved in 2022
Utilising 100% of renewable electricity
Joining Frontier alongside other businesses contributing a combined $100 million to advance permanent carbon removal
Supporting a $1 million investment in two natural climate solution projects focused on mangrove reforestation in Mexico and Kenya.
Being a founding member of the Business Alliance to Scale Climate Solutions (BASCS), which was founded to increase the scale and impact of business investment in climate solutions
Encouraging and supporting 70% of their suppliers to incorporate and meet science-based climate targets by 2026.
The Workday Foundation is dedicated to investing in global workforce development organisations that provide in-demand training and upskilling for job seekers. They also focus on upskilling for jobs that will create a positive climate impact.
The business has invested over €33 million in grants since 2013 in areas such as disaster relief, global health, war relief and social justice.

ESG at Iberdrola

Renewable energy company, Iberdrola, places huge emphasis on their environmental, social and governance targets and strategies. With goals including reaching carbon neutrality by 2030 and net-zero emissions by 2040, the business has ESG at its centre.

Iberdrola’s 2023-2025 Investment Plan focuses on creating more electricity grids and investing in renewables to create a safe and healthy system that will support more renewable energy sources.

The company sets targets in line with globally recognised frameworks including the Paris Agreement and UN Sustainable Development Goals. Their goals focus on projects in the following areas:

Clean water and sanitation: The company is committed to responsible and efficient use of this critical resource, looking to reduce the amount of water used by 50% by 2030.
Affordable and clean energy: The company plans to continue in its mission to invest in clean energy sources such as wind, solar, and hydropower.
Climate action: The business aims to achieve carbon neutrality by 2030 and net zero emissions by 2040.
Biodiversity: The company has committed to putting biodiversity conservation at the heart of all of its actions and ensuring the sustainable use of ecosystems to produce energy.

ESG at Cemex

Construction company Cemex has its Sustainability Model at the heart of its ESG commitments. The model ensures that the business considers sustainable practices in every part of the business.

The model expands on traditional ESG models by focusing on 4 areas; Economic, environmental, social and governance. Priorities under the model include:

People: Aiming to develop and support a healthy and engaged workforce
Local communities: Encouraging open engagement with the local communities in which the company works and put their concerns first
Business partners: Helping suppliers and customers optimise by responding to their needs and finding ways to reduce impact of operations
The planet: As a global company, the business is committed to contributing to international efforts and address global complex challenges
Partnerships: Committing to sustainability means that the company will work to partner with national and international bodies. They will also participate in industry initiatives to support global concerns

Your business and ESG

Getting started building an ESG framework or investing in an existing company model can be a challenge for many businesses. Here are some high-level pointers on where to start:

Look outward: Do your research. Meet with internal and external stakeholders to understand opportunities for improvement across the business.
Dedicated team: Where possible, try to have teams or team members who are solely dedicated to these initiatives and are experts in the field.
Identify issues: Look at issues most prescient to the business, the board, and local communities.
Define goals: Identify goals and targets and ensure a baseline is in place to measure impact of initiatives.
Adopt frameworks: Deploy initiatives through defined frameworks. Ensure the mechanisms are in place for the accurate reporting and measurement of ESG initiatives. The Taskforce on Nature-Related Financial Disclosures (TNFD) is a good place to start for European-based businesses.

At Glas Future, we’re committed to helping businesses to invest in credible, scientific-led biodiversity projects to ensure the preservation and restoration of the natural world. Learn more.