Wipro acknowledges the implications of climate change and has identified various risks and opportunities that have the potential to have a material impact on its business in light of both regulatory developments and physical impacts of climate change. Its five year GHG mitigation strategy includes targets to reduce the energy intensity of its operations as well as implementation of mitigation programs including energy efficiency initiatives, renewable energy generation and procurement. Wipro commits to doubling its renewable energy procurement by 2020 with 20% of its operations in India being powered by renewable energy sources, a leading industry practice during FY2015.
As a property developer, City Developments Limited (CDL) is exposed to potential social and environmental risks related to its supply chain. However, the company demonstrates strong mechanisms to mitigate related risks in this area, which include social and environmental standards for all its suppliers and contractors, as well as screening and monitoring their performance according to its in-house Five-Star Assessment System. CDL’s efforts to manage supply chain risks include engaging with top management and supervisory staff of its contractors to promote sharing of best practices. In addition, the company’s Green Procurement Guidelines for selection of vendors and suppliers indicate a preference for those with ISO 14001 and OHSAS 18001 certifications, an industry leading practice.
Lite-On's supply chain management focuses on issues such as workers' welfare, environmental protection, health and safety. The company has developed a set of supplier principles based on Electronic Industry Citizenship Coalition (EICC) Code of Conduct that demands its suppliers fulfill social responsibilities and also conducts periodic audits to ensure compliance. If a supplier is found to have significant or potential negative impacts on human rights and labor practices, the company, in the past, has disqualified them. These initiatives highlight the company’s ability to identify and managed related risks in its supply chain.
As a member of the Tire Industry Project (TIP) group under the World Business Council for Sustainable Development, Hankook promotes research initiatives and has launched two eco-friendly tire lines: Kinergy Eco at the global level, and Enfren Eco in South Korea and Japan with the latter receiving the highest AAA mark in the labeling system for fuel efficient tires. These products can reduce rolling resistance and wind resistance to minimize energy use and noise emissions. Hankook has also prototyped and tested a non-pneumatic airless tire, which can increase the recyclability of materials used in production. With these initiatives, Hankook is well placed to capitalize on the growing global demand for ecofriendly tires.
Consumers of technology are increasingly interested in acquiring eco-friendly products and services. Qisda requires its R&D staff members to incorporate "Life Cycle Thinking" at the early stages of product design and development by taking into consideration the environmental impact of its products thereby giving it an opportunity to improve the efficiency of its next generation of products. The company manufactures green products (projectors, monitors, scanners, lighting devices and others), which save energy and reduce material use.
United Microelectronics Corporation’s (UMC’s) production relies on minerals, some of which are sourced from developing countries thereby exposing it to public scrutiny for possible involvement in human rights violations related to extraction of these minerals. However, by conducting annual supplier assessments to ascertain that they do not use conflict minerals, UMC manages this risk well. Moreover, in line with industry best practices, since 2013, UMC has established an EICC committee to address issues in its supply chain pertaining to labour, health and safety, environment, and ethics. These initiatives underline the company’s commitment to sustainable sourcing of minerals, a material issue for the semiconductor foundry industry.
Infosys’ data centres account for the bulk of the company’s electricity consumption. Acknowledging the importance of managing its energy use and related GHG emissions, the company has set a target to reduce its carbon footprint by 50% by FY2018 and is increasing its use of renewable energy to meet this goal, with more than 26% of its FY2016 electricity demand being met using renewable sources. Infosys has also been proactive in retrofitting older facilities to lower energy consumption and reports that such retrofits have a payback period of under three years and are expected to result in an energy optimization of nearly 30%.
Being involved in a water intensive line of business line, TSMC’s fabrication facilities in Taiwan are particularly exposed to water risks, including periodic drought conditions that could result in interruptions to its operations. During the 2015 drought in Taiwan, the company organized a media tour to transparently demonstrate its water conservation measures following scrutiny of the company by media and the general public. TSMC has a strong water management system and has obtained ISO 14046 certification for water footprint at all its fabrication facilities. The company has implemented water recycling systems and rainwater storage systems and has reduced its unit wafer water use by 29% in 2015 compared to 2010 levels.
Auto components companies are parts of a highly complex supply chain, which requires timely and effective interaction with suppliers to ensure product reliability, operational efficiency and manage environmental and social risks in the supply chain. Calsonic Kansei expects its suppliers to comply with its global code of conduct and monitors compliance with various CSR issues including human rights. Its green procurement guidelines recommended that suppliers should obtain ISO 14001 certification or develop equivalent environmental management systems. In order to identify and manage related risks, Calsonic Kansei has also started to conduct supplier surveys with an aim to increase the number of suppliers that are covered by such surveys.
Offering sustainable products creates not only a growth opportunity but also improves long-term operational efficiency and competitiveness, as it may lead to reduced production costs. Since 2003, NEC has aimed to qualify all new products for the internally developed Eco-Symbol (Star), which, among other things requires a 50% reduction in GHG emissions as compared to conventional products. NEC aims to reduce GHG emissions stemming from products by an average of 80% for all products by FY2017 (base year FY2005). NEC has also implemented initiatives for end-of-life product management by providing detailed product component information, and implementing easy-to-disassemble designs. In FY2015, it maintained a 98% recycle rate, which is in line with industry leaders.
Coway’s manufacturing operations are energy and carbon intensive. Thus, the use of renewable energy and implementation of energy efficient processes become essential preparatory steps to comply with strengthening environmental regulations and to reduce production costs. In line with industry leaders, Coway has committed to supporting the UN Framework Convention on Climate Change (agreed at the COP21 held in Paris in December 2015) by planning to reduce GHG emissions per unit by 50% by 2020 compared to 2010. This commitment is expected to be fulfilled, inter alia, via the use of photovoltaic generators at three of the company’s plants.
S‐Oil’s management committee, comprised of top management members, assists its CEO to make decisions on sustainability related issues including social, environmental and labour policies and programs. The company has also established an ethics committee that oversees management of ethical behaviour across the company and directly reports to the CEO. Such governance structures, involving high level executives, to identify and integrate sustainability into business practices signify strong management awareness of ESG risks and opportunities.
Tech Mahindra has certain services such as SMART cities solutions, mobility, cloud based solutions, Micro Grid and Energy management services that help its customers manage their environmental and social impacts. These SMART Solutions are implemented in the areas such as Parking, Garbage and Building Energy Management and have the potential to cause up to 30% reduction in GHG emissions. With the Indian government looking to create multiple smart cities across the country over the next decade, Tech Mahindra seems well placed to capitalize on opportunities arising from this regulatory push.
The market for bio-based chemicals has experienced strong growth rates over the last few years. The company derives a little over 3% revenues from its green chemicals segment which include products such as polylactic acid bioplastic, light weight polyethylene plastic and biodiesel. Moreover, aligned with industry leaders, PTTGC has announced plans to invest about 40 billion baht (USD 1.1 billion) in R&D for biochemical products over the next five years.
Siam Cement acknowledges that it faces emerging risks associated with Thailand’s energy source depletion and its eventual dependence on energy imports, which would increase costs for the company. It also highlights the importance of improving its processes to increase energy efficiency and reduce GHG emissions in light of global commitment towards climate change mitigation post-COP-21. The company discloses a strong GHG emissions reduction programme, including a target of reducing GHG emissions per unit production by 10% by 2020 (baseline 2007). Around 11% of its energy demand is currently being met by renewable sources.
When applying for approval for developments, INPEX gathers opinions from the local community, and reflects their feedback in its project plans. The company conducts information sessions for local communities in Japan, Australia and Indonesia, where some of its biggest projects take place. In 2013, INPEX Australia launched its first Reconciliation Action Plan (RAP), a public document that outlines its commitments to local Aboriginal and Torres strait Islanders (ATSI) people. Given the high impact nature of its operations, its strong community involvement programs would ensure that there are limited operational delays due to community protests.
Kao Corp. has a target to use only recycled or sustainably sourced FSC paper by 2020 and by the use of biomass materials in its hair care and skin care product packaging. Kao’s approach on this subject is poised to reduce its dependence on traditional petroleum-based plastic, thus reducing its exposure to price volatility and mitigate risks associated with end-of-life products and waste generation. Additionally, the company is aiming to reduce water consumption during product use by 30% by 2020, with the launch of innovative products such as its laundry detergent CuCute that has improved cleaning power as well as faster rising capabilities. In FY2014, 27% of Kao’s revenues made in Japan were derived from products sold under the “eco together” logo. Given the growing sustainability-related consumer trend, Kao is well positioned to meet future demand for sustainable products and has the capacity to capitalize on brand value.
Like many tech companies, Konica Minolta relies on coltan, cassiterite, gold and wolframite for the manufacturing of some of its products. Depending on their location of procurement, these may be deemed conflict minerals and present a liability due to little or no government oversight and possible labour abuses – such as the use of child or trafficked labour to work in mines. To mitigate these risks, Konica has a stand-alone policy on the elimination of conflict minerals from its production and strong corresponding programmes to back it up, signaling strong preparedness to prevent incidents that may occur in the procurement process. Moreover, the company has adopted the Electronic Industry Citizenship Coalition’s (EICC’s) code of conduct, which also incorporates the International Labour Organisation (ILO) standards and has a strong system to monitor compliance with these standards.
Unilever Indonesia is exposed to scrutiny regarding land use and biodiversity issues in its supply chains, especially with respect to the sourcing of wood pulp and palm oil, both of which are used for making personal care products. Unilever Indonesia pursues industry leading sustainable agriculture practices as part of a group-wide programme implemented by its parent company Unilever, which has set the goal to obtain 100% of its raw materials from sustainable sources by 2020.
Lenovo highlights product sustainability as a key differentiator for the company and focuses on improving product energy efficiency, materials, packaging and end-of-life management to match consumer preference. More than 90% of monitors, server and notebook platforms offered by Lenovo are Energy star certified. Lenovo uses post-consumer recycled content (PCC) in all of its PC products, and has set targets to increase the percentage of PCC usage for new generations of products. The company also reduces the amount of packaging material used and uses 100% recycled content for packaging certain products. The company has take-back programs and asset recovery services for its business customers, through which customer-returned equipment is recycled by suppliers and reused for manufacturing new products.