Environmental, Social, and Governance—often shortened to ESG—isn’t just a buzzword anymore. It’s now a key driver of decision-making in businesses, investments, and policies across industries. But how far along are different sectors in actually adopting ESG? And what can companies do to not just catch up, but lead?
1. 92% of S&P 500 companies published ESG reports in 2023
Why this matters
If you’re running a company or advising one, this stat should make you sit up. Almost the entire S&P 500 is now reporting on ESG. This means that ESG reporting is no longer a competitive advantage—it’s expected. Not having one makes you stand out, but not in a good way.
What’s driving this?
A mix of investor demand, regulatory pressure, and customer expectations. Investors want to know the risks. Regulators want to make sure companies are transparent. Customers want to buy from brands they trust. These three forces together have created a wave that’s hard to ignore.
How to act on this
You don’t need a massive budget to start ESG reporting. Here’s how you can begin:
Start with a materiality assessment
This just means figuring out what matters most to your stakeholders. For a food company, it might be packaging waste. For a tech firm, energy use. Talk to your stakeholders—investors, employees, customers—and rank what matters most.
Choose a reporting framework
Don’t reinvent the wheel. Use something like:
- GRI (Global Reporting Initiative)
- SASB (Sustainability Accounting Standards Board)
- TCFD (Task Force on Climate-Related Financial Disclosures)
Pick one that suits your industry and audience.
Keep it simple to start
Your first ESG report doesn’t need to be a glossy 80-page PDF. It could be a 5-page report that shares key metrics, goals, and actions. The goal is consistency and improvement over time.
2. 65% of Russell 1000 companies disclosed ESG information in 2023
Smaller players are catching up
The Russell 1000 includes more mid-sized companies compared to the S&P 500. The fact that two-thirds of them are disclosing ESG data tells us something important: this isn’t just for the big guys anymore. Mid-sized firms are feeling the heat too.
ESG is no longer optional
If you’re a mid-market firm, especially one planning to scale or attract investors, ESG disclosure is becoming a necessary part of your playbook. Firms with ESG plans are more likely to gain access to capital and attract better talent.
Tactical steps to move forward
Make ESG someone’s job
Even if you don’t have a dedicated ESG team, assign responsibility to someone. Maybe it’s your operations head, your CFO, or even an external advisor.
Set 1-year, 3-year, and 5-year ESG goals
You don’t need to be perfect now. Just show that you have a direction. For example:
- Year 1: Measure your emissions and set up reporting.
- Year 3: Reduce emissions by 15%.
- Year 5: Reach net-zero for Scope 1 emissions.
These simple milestones build investor trust.
Align with industry benchmarks
See what your competitors are doing. You don’t need to mimic them, but aligning your goals helps avoid being seen as an outlier. Plus, benchmarking makes it easier to set realistic targets.
3. 98% of utilities sector companies report ESG metrics
This industry is leading the charge
The utilities sector—think energy, water, and waste—is almost fully committed to ESG reporting. With 98% participation, this is the most advanced sector in terms of transparency and accountability.
Why utilities are ahead
There are a few reasons:
- Regulatory oversight is intense.
- Public pressure is high.
- Their environmental footprint is huge.
Because of this, utilities have had to act faster than most.
If you’re in utilities, here’s what to do next
Go deeper than compliance
Most utilities are already meeting the minimum. But what separates leaders is how far they go beyond that. Think about:
- Real-time reporting dashboards
- Open data portals for the public
- Publishing not just performance, but strategy
Bring social and governance into focus
Utilities often focus heavily on the “E” in ESG. That’s good, but don’t forget the S and G:
- Social: How do you serve underserved communities?
- Governance: Is your board diverse and ESG-educated?
Filling these gaps adds depth to your ESG profile and builds trust.
Embed ESG into daily operations
You can’t just report once a year and call it a day. Make ESG part of:
- Procurement: prioritize sustainable suppliers
- Customer service: add energy-saving tips
- Employee training: include ESG literacy
The more it becomes part of your day-to-day, the less effort it takes to maintain over time.
4. 94% of energy sector firms have formal ESG strategies
Why the energy industry can’t ignore ESG
The energy sector is at the heart of the global ESG conversation. It’s often seen as part of the problem when it comes to climate change, but increasingly, it’s positioning itself as part of the solution. That’s why nearly every major energy firm now has a formal ESG strategy in place.
What a “formal” strategy really means
Having a formal ESG strategy doesn’t just mean writing a vision statement. It means:
- Having clear, published ESG goals
- Allocating budget and resources to ESG initiatives
- Regularly reporting progress and being held accountable
Firms without this structure are falling behind, fast.
How to put a formal ESG strategy in place
Start with risk assessment
Energy companies are facing major transitional risks—from regulatory changes, investor activism, and shifting consumer behavior. Conduct a deep ESG risk assessment. This helps you know what areas to prioritize.
Set transformation targets
ESG in energy isn’t just about reducing emissions. It’s also about transforming business models:
- Shift from fossil fuels to renewables
- Offer carbon offset services
- Invest in energy-efficient infrastructure
Lay out your roadmap for transformation with milestones for the next 5 to 10 years.
Communicate your vision clearly
Use plain language and visuals when sharing your ESG plans. Whether you’re talking to investors, regulators, or the public, clarity is key. Make your goals public, track them openly, and update stakeholders frequently.
5. 90% of financial services firms include ESG in risk assessments
ESG is now a financial risk factor
Gone are the days when ESG was just about being “green.” Today, ESG metrics are considered real financial risk indicators. That’s why 9 out of 10 financial institutions are incorporating ESG into how they evaluate risk—across lending, insurance, and investment portfolios.
Why ESG is a material risk
Ignoring ESG risks can result in:
- Regulatory fines
- Lawsuits and reputational damage
- Devalued assets or stranded investments
For example, financing a company with poor environmental practices can expose a bank to climate risk or litigation.
How to embed ESG into your financial risk model
Use ESG scores in underwriting and lending
Whether you’re in banking, insurance, or asset management, add ESG performance as a data point when assessing a company’s creditworthiness. Use third-party ESG ratings or develop your own scoring system.
Stress-test portfolios for ESG exposure
Financial institutions are now stress-testing for things like:
- Climate shocks
- Labor violations in supply chains
- Poor governance in foreign markets
These tests help identify which assets are vulnerable and need to be rebalanced or insured differently.
Train your teams
Risk teams, compliance officers, and relationship managers all need basic ESG literacy. Consider mandatory training modules that cover key ESG concepts and how they relate to your products.
6. 84% of consumer goods companies integrate ESG into supply chains
The shift toward ethical supply chains
Consumer goods companies face intense scrutiny—from customers, activists, and investors. That’s why most of them are pushing ESG deeper into their supply chains. It’s not just about their own practices, but also how their suppliers operate.
Why supply chain ESG matters
Many ESG risks lie several steps down the chain. Think about:
- Child labor in sourcing raw materials
- Water pollution in production
- Carbon emissions from shipping
Even if your company doesn’t do these things, you can still be held accountable for working with suppliers who do.
Practical steps to build an ESG-friendly supply chain
Set supplier ESG standards
Create a supplier code of conduct that includes ESG requirements. This can cover:
- Labor practices
- Environmental impact
- Anti-corruption measures
Make signing it mandatory for all vendors.
Audit regularly
Don’t just trust paperwork. Conduct random or scheduled ESG audits, especially in high-risk regions or sectors. Partner with third-party firms if you need extra eyes and resources.
Use tech for transparency
Blockchain and traceability tools are becoming more accessible. These tools allow you to track raw materials or goods across the supply chain. That transparency can boost trust and efficiency.
Reward high performers
Create incentives for ESG-compliant suppliers—like long-term contracts or better payment terms. This shifts ESG from being a burden to a benefit.
7. 82% of healthcare companies have ESG policies in place
Healthcare’s growing responsibility in ESG
The healthcare industry has a unique and powerful role to play in ESG. This sector doesn’t just affect patients and profits—it directly impacts public health, environmental safety, and social equity. That’s why over 8 in 10 healthcare companies now have formal ESG policies guiding their decisions.
What’s behind the healthcare ESG push?
Several key reasons:
- Hospitals and manufacturers generate significant waste and emissions
- Equity in healthcare access is now a social expectation
- Investors are pushing for accountability in biotech and pharma
This mix of ethical obligation and public pressure is making ESG a strategic priority.
Building a healthcare ESG policy that actually works
Prioritize waste and emissions reduction
Healthcare waste is a real issue. Focus on:
- Reducing single-use plastics
- Introducing safe recycling programs
- Investing in energy-efficient equipment
Even small changes, like switching to LED lighting or consolidating shipping, can make a measurable impact.
Embed equity in care delivery
Social responsibility in healthcare isn’t optional. Your ESG strategy should include goals for:
- Serving underserved populations
- Offering affordable care options
- Improving accessibility for disabled or rural patients
Make sure your care model reflects the values your stakeholders care about.
Strengthen data transparency
If you’re collecting patient data, you must also protect it. Governance in healthcare ESG means:
- Strong cybersecurity measures
- Transparent data usage policies
- Clear board-level oversight of data risk
These steps not only reduce regulatory risk but build trust with patients and regulators.
8. 79% of tech companies disclose ESG goals annually
The tech sector steps up its game
Technology companies are no longer hiding behind screens. Nearly 80% now publish ESG goals every year—and for good reason. Whether it’s energy-hungry data centers or labor conditions in hardware production, the ESG spotlight on tech has grown brighter than ever.
Why annual ESG disclosures matter
For fast-moving industries like tech, annual disclosures help:
- Keep investors updated on progress
- Stay ahead of evolving ESG regulations
- Prove accountability in real-time
These disclosures signal transparency and a willingness to evolve.
How tech companies can lead, not just comply
Treat ESG like product development
Use the same agile methodology you use for product features:
- Plan: Set clear quarterly ESG goals
- Build: Assign cross-functional teams
- Measure: Track key performance indicators
- Iterate: Adjust based on stakeholder feedback
This keeps ESG flexible, measurable, and relevant.
Reduce energy use in cloud and servers
Data centers are a major ESG concern. Lower your environmental footprint by:
- Moving to renewable-powered hosting
- Using smart cooling technologies
- Measuring carbon per transaction or query
These changes cut costs and emissions, delivering a double win.
Improve workforce diversity and transparency
Governance and social factors can’t be an afterthought. Focus on:
- Public diversity data (especially at leadership levels)
- Clear anti-bias hiring practices
- Internal accountability metrics (e.g., inclusive retention rates)
Publishing these numbers builds trust and creates a culture of integrity.
9. 75% of telecommunications companies have adopted ESG reporting frameworks
Why telecom firms are jumping on ESG
The telecom industry is the infrastructure behind modern life. From the internet to emergency communications, the responsibility they carry is massive. So it’s no surprise that three-quarters of telecom companies are now using ESG frameworks to report their performance.
What makes ESG tricky in telecom?
The challenge isn’t just emissions or waste—it’s scope. Telecom firms operate globally, across jurisdictions, and with complex supply chains. That makes unified, consistent ESG reporting difficult—but essential.
How telecom companies can improve ESG practices
Choose a reporting framework that fits your reach
Telecom firms should opt for frameworks like:
- GRI, for broad stakeholder coverage
- TCFD, for climate-specific risk reporting
- CDP, for emissions tracking
Sticking with one framework helps you stay consistent, especially across global operations.
Build ESG into infrastructure rollouts
As you expand networks (e.g., 5G or fiber), consider:
- Minimizing land disruption
- Using low-impact construction methods
- Partnering with communities during installations
This adds a social responsibility layer to your technical operations.
Address the digital divide
Social equity is a key part of ESG in telecom. Focus on:
- Connecting rural and underserved communities
- Offering low-income internet programs
- Improving accessibility for disabled users
These actions create long-term customer loyalty and meet social impact goals at the same time.
10. 72% of industrials sector firms link ESG to long-term strategy
ESG is now part of the blueprint
In the industrials sector—covering everything from machinery and equipment to aerospace and construction—nearly three-quarters of companies are linking ESG to their long-term strategies. It’s not just an add-on. ESG has become a core part of how these firms think about growth, risk, and innovation.
Why strategy alignment matters
Industrials often face high environmental footprints and safety risks. Linking ESG to strategy helps:
- Manage regulatory compliance proactively
- Attract institutional investors
- Future-proof operations against environmental and social shifts
It moves ESG from a reporting exercise to a long-term business advantage.
How to embed ESG into your industrial strategy
Use ESG to drive innovation
Sustainable design is gaining traction. Focus on:
- Reducing material waste in product design
- Using recycled components where possible
- Designing for durability and energy efficiency
This makes your products more attractive and your operations leaner.
Rethink capital investments
Future investments should include ESG filters. For example:
- Prioritize low-emission manufacturing lines
- Invest in water-saving technology
- Build resilience against climate shocks (e.g., flooding or heatwaves)
Linking capital expenditure to ESG outcomes shows long-term thinking.
Get the board involved
Make ESG part of every board meeting. Include it in quarterly strategy reviews. The more leadership involvement you have, the easier it becomes to align ESG goals with business outcomes.
11. 70% of materials companies incorporate ESG into procurement practices
The materials industry goes deeper
For companies in metals, chemicals, glass, and paper, ESG is moving beyond internal operations. Now, 70% of these firms are applying ESG standards to procurement. That means evaluating suppliers not just on cost and speed, but also on sustainability and ethics.
Why this is a game changer
Materials companies rely heavily on extraction, refining, and shipping—often across high-risk geographies. If you don’t screen suppliers carefully, you risk:
- Being linked to human rights abuses
- Causing long-term environmental harm
- Facing backlash from regulators and activists
Procurement is now a frontline ESG issue.
How to revamp your procurement with ESG
Set ESG benchmarks for suppliers
Create a clear list of ESG expectations. This should cover:
- Emissions levels per product category
- Waste disposal practices
- Labor and safety standards
These benchmarks should be part of your RFP process and supplier scorecards.
Offer supplier training and support
Many suppliers want to improve but don’t know how. Offer:
- Templates for ESG self-assessments
- Workshops on sustainable practices
- Joint improvement plans
This builds loyalty and helps raise the bar across your supply chain.
Track and report on supplier performance
Use digital tools to collect and analyze ESG data from suppliers. Monitor trends over time and flag risks early. This makes your entire chain more resilient and allows for smarter sourcing decisions.
12. 68% of real estate firms track ESG metrics in asset management
Buildings are becoming smarter—and greener
Real estate companies are increasingly integrating ESG into how they manage properties and assets. With 68% of firms now tracking ESG metrics in real time, the industry is shifting from simply owning buildings to actively managing their impact on the world.
Why asset-level ESG tracking is essential
Buildings account for a huge portion of global emissions. ESG metrics at the asset level help firms:
- Reduce energy and water use
- Improve tenant satisfaction
- Increase property value and marketability
It also helps meet investor demand for performance data.
How to get started with ESG tracking in real estate
Focus on operational efficiency
Start by collecting baseline data on:
- Energy consumption per square foot
- Water usage by building type
- Waste diversion rates
From there, set clear targets for improvements.
Invest in smart tech
IoT sensors, smart meters, and building management software can help you track ESG data automatically. The more accurate your data, the easier it is to act on it.
Engage tenants in the process
Tenants play a big role in building sustainability. Share your ESG goals with them and offer incentives like:
- Energy-saving competitions
- Recycling programs
- Green lease agreements
Making tenants partners in your ESG mission boosts results and reputation.
13. 65% of transportation companies disclose carbon emissions
Why emissions tracking is critical in transportation
Transportation is one of the largest sources of global carbon emissions. That’s why it’s encouraging to see that 65% of transportation companies are now disclosing their carbon footprints. While this is progress, there’s still room for improvement.
Emissions reporting isn’t optional anymore
Carbon disclosure is being driven by multiple forces:
- Government regulations tightening globally
- Investors demanding accountability
- Customers prioritizing eco-friendly logistics
Tracking emissions is now the price of doing business, not a nice-to-have.
How transportation firms can improve carbon disclosure
Measure across all scopes
Start by clearly defining and measuring:
- Scope 1: Direct emissions (e.g., fuel used by company-owned trucks)
- Scope 2: Indirect emissions (e.g., electricity used at depots)
- Scope 3: Value chain emissions (e.g., subcontracted carriers, upstream fuel extraction)
Many companies stop at Scope 1. Scope 3 often has the biggest impact.
Use standardized tools
Adopt established carbon accounting tools like:
- GLEC Framework (specific to freight and logistics)
- ISO 14064
- Smart Freight Centre calculators
Using industry-standard tools makes reporting easier and more credible.
Set clear targets
After measurement comes action. Set achievable reduction goals:
- Short-term: Improve fuel efficiency
- Medium-term: Invest in route optimization software
- Long-term: Transition to electric or alternative-fuel fleets
Publish progress annually to stay transparent and accountable.
14. 62% of retail sector companies publish sustainability reports
Retailers embrace transparency
Retail is under pressure from all sides—consumers, investors, and regulators—to prove they’re doing business responsibly. That’s why 62% of retail companies now publish sustainability reports. These reports are not just PR—they’re shaping brand loyalty and investor trust.
Why this matters for retail success
A good sustainability report can:
- Improve brand image and customer retention
- Reduce supply chain risks
- Attract ESG-focused capital
Retailers that ignore ESG are risking more than bad press—they’re risking revenue and relevance.
How to build a retail sustainability report that drives results
Focus on what customers care about
For most retailers, these are the key topics:
- Sustainable packaging
- Ethical sourcing
- Fair labor practices
- Waste and recycling
Prioritize these in your report to stay aligned with customer expectations.
Include measurable goals
Instead of vague promises like “going green,” use numbers:
- “Reduce plastic packaging by 40% by 2026”
- “Source 80% of cotton from certified sustainable farms”
Measurable goals help you stay focused and demonstrate progress over time.
Make it readable and visual
A dense, text-heavy PDF won’t engage your audience. Use charts, infographics, and customer stories to bring your report to life. Post it on your site, email it to subscribers, and promote highlights on social media.
15. 61% of hospitality firms have formal ESG initiatives
The hospitality sector turns the corner
Whether it’s hotels, resorts, or travel services, the hospitality industry has come under fire for its high environmental impact. But things are changing. With 61% of firms now embracing formal ESG programs, the industry is working to become part of the solution.
ESG is reshaping the guest experience
Travelers are more conscious than ever. They ask:
- How much energy does this hotel use?
- Is the staff treated fairly?
- Are operations supporting the local community?
Having an ESG initiative is now a competitive differentiator, not just a compliance task.
How hospitality brands can level up their ESG efforts
Start with water and energy efficiency
Hotels are heavy users of water and power. Begin with:
- Installing low-flow fixtures
- Switching to LED lighting
- Offering guests the option to skip daily towel changes
These changes reduce costs and environmental impact.
Train staff in ESG principles
Every employee—from housekeeping to front desk—should understand your ESG goals. Offer basic training that includes:
- Energy-saving behaviors
- Waste management practices
- Cultural sensitivity and social impact policies
When employees are engaged, they become brand ambassadors.
Highlight sustainability in your marketing
Guests want to know your values. Feature your ESG efforts:
- In booking confirmation emails
- On room key cards and in-room materials
- During check-in with a brief welcome message
Transparency builds trust and encourages repeat bookings.
16. 60% of insurance firms tie ESG to investment decisions
Why ESG is changing the insurance game
The insurance industry plays a powerful role in shaping corporate behavior—often more than we realize. When 60% of insurance firms link ESG to their investment decisions, it sends a strong signal: sustainability now affects who gets covered and where capital flows.
Risk and reward, redefined
Insurers are in the business of managing risk. And ESG risks—like climate disasters, governance failures, or social unrest—can create major losses. By integrating ESG into underwriting and asset management, insurers are protecting both their clients and their balance sheets.
What insurance companies should do next
Build ESG into underwriting criteria
Underwriters should start evaluating:
- Climate risks in real estate and infrastructure projects
- Social risks in labor-intensive industries
- Governance risks in high-liability sectors
Doing this helps avoid high-risk clients while rewarding responsible ones.
Align your investment portfolio
Most large insurers manage billions in assets. Apply ESG filters to:
- Screen out fossil fuels or unethical labor
- Prioritize clean energy and socially responsible companies
- Use ESG ETFs and green bonds for diversified impact
You’ll be reducing long-term exposure and appealing to conscious investors.
Educate clients
Insurers can drive real change by educating policyholders. Offer:
- Premium discounts for sustainability certifications
- ESG improvement plans as part of risk consulting
- Reports that show clients how their behavior impacts premiums
Being proactive turns ESG from a checkbox into a partnership.
17. 58% of manufacturing companies link ESG to operational KPIs
Making ESG operational, not optional
Manufacturing is where strategy meets execution. That’s why it’s impressive that 58% of manufacturers now tie ESG metrics directly into their operational KPIs. It means ESG isn’t just a boardroom idea—it’s being tracked on factory floors and shop floors.
Why this matters in manufacturing
This sector consumes massive energy, water, and raw materials. If ESG isn’t built into daily decisions—like production schedules or material choices—it won’t drive real change. Tying ESG to operations ensures accountability and measurable impact.
How to link ESG and operations in manufacturing
Track the right metrics
Set ESG KPIs for:
- Emissions per unit of product
- Energy consumption by process line
- Waste generated vs. diverted
- Worker health and safety incidents
These should be reviewed as often as financial metrics—weekly or monthly.
Create ESG scorecards for teams
Give plant managers, engineers, and procurement teams ESG scorecards. This helps:
- Align goals across departments
- Create ownership at the operational level
- Encourage friendly competition between units or sites
Small wins across departments add up to big impact.
Use tech for real-time insights
Sensors, IoT, and analytics software can help track ESG data live. For example:
- Monitor equipment for energy spikes
- Track air quality inside production areas
- Predict when waste bins will overflow
This level of visibility enables faster, smarter ESG decisions on the ground.
18. 55% of media and entertainment companies release ESG data
ESG goes prime time
The media and entertainment industry shapes culture—and increasingly, it’s holding itself to higher ESG standards. With 55% of companies releasing ESG data, the industry is acknowledging its power and responsibility in influencing public perception and behavior.
Why ESG matters in this industry
The sector may not pollute like heavy industry, but it holds influence:
- Content shapes opinions on climate and social justice
- Operations affect data use, inclusion, and energy
- Events and productions have a real environmental footprint
From streaming to live shows, ESG is touching every corner of this industry.
How media and entertainment brands can lead in ESG
Address representation and equity
Social issues are front and center. Focus on:
- Inclusive hiring for cast, crew, and leadership
- Fair pay and safe working conditions
- Authentic storytelling from diverse perspectives
This isn’t just ethical—it drives audience loyalty.
Reduce production impact
Producing shows, films, or live events uses a lot of resources. Improve by:
- Using LED lighting on sets
- Eliminating single-use plastics during shoots
- Encouraging remote post-production when feasible
Even switching to virtual premieres can slash emissions.
Be transparent about data
With digital media dominating, governance is key. Companies should:
- Disclose how user data is collected and used
- Offer opt-outs and privacy controls
- Review algorithms for bias
Transparency and trust are increasingly part of brand equity.
19. 53% of agriculture and food processing firms monitor ESG metrics
ESG takes root in food and agriculture
The agriculture and food processing sectors are under growing pressure to feed the world—sustainably. With 53% of firms now tracking ESG metrics, this industry is waking up to its outsized role in environmental impact, labor conditions, and supply chain transparency.
Why this sector matters for ESG
Agriculture touches everything from climate change to community health. The stakes are high:
- Land and water use have long-term consequences
- Labor issues persist in harvesting and processing
- Food safety and traceability are critical concerns
Monitoring ESG metrics helps companies get ahead of these risks.
What food and agriculture firms should focus on
Track inputs and outputs
Start with metrics that matter most:
- Water use per acre or facility
- Fertilizer and pesticide usage
- Waste generated during processing
- Emissions per ton of product
These figures help identify inefficiencies and opportunities for improvement.
Make your supply chain visible
Food companies often work with smallholders or remote farms. Use tools like:
- Blockchain for product traceability
- Satellite imagery to monitor land use
- Digital audits for working conditions
This visibility builds trust with both regulators and consumers.
Certify and communicate
Pursue sustainability certifications where possible—like:
- Fair Trade
- Rainforest Alliance
- Non-GMO Project
Then communicate your progress clearly on packaging, websites, and reports. People want to know where their food comes from—and how it got to them.
20. 51% of aerospace and defense companies include ESG in reporting
ESG lifts off in aerospace and defense
The aerospace and defense sectors have historically focused on innovation and security. But now, more than half of these companies are also embracing ESG reporting, showing that even the most complex industries can evolve.
Why ESG is gaining ground here
Aerospace and defense face unique pressures:
- High emissions from manufacturing and flights
- Sensitive geopolitical relationships
- Heavy reliance on government contracts
Transparency through ESG reporting helps manage reputational risk and meet evolving stakeholder expectations.
How companies in this space can strengthen ESG
Focus on cleaner technologies
Invest in next-gen systems that lower environmental impact:
- Hybrid or electric aircraft designs
- Alternative fuels for defense vehicles
- Sustainable materials for components
These investments reduce emissions while keeping innovation front and center.
Improve supply chain screening
Global suppliers are often part of the defense pipeline. Screen for:
- Ethical labor practices
- Conflict-free minerals
- Environmental stewardship
Compliance with ESG criteria in procurement is becoming a prerequisite for large contracts.
Strengthen governance systems
The “G” in ESG is especially vital here. Focus on:
- Clear ethical codes of conduct
- Whistleblower protections
- Oversight of lobbying and political contributions
Governance gaps can lead to public scandals—proactive transparency prevents this.
21. 50% of mining companies integrate ESG into stakeholder engagement
A deeper look at mining and ESG
Mining companies are literally digging into the earth—and their ESG responsibilities go just as deep. With half the industry now incorporating ESG into how they engage with stakeholders, change is underway. And it needs to be.
Why ESG is critical in mining
The risks are enormous:
- Environmental degradation
- Community displacement
- Labor abuses
At the same time, mining provides materials essential for clean energy. ESG helps balance these trade-offs.
How mining firms can drive ethical engagement
Start with community consultation
Don’t wait for resistance. Engage early with:
- Local residents and leaders
- Indigenous groups
- Environmental NGOs
Involve them in decision-making from day one. This reduces conflict and builds long-term cooperation.
Disclose impacts honestly
Mining has unavoidable impacts. What matters is how you handle them. Publish data on:
- Water use and quality
- Land rehabilitation progress
- Pollution controls in place
Transparency earns trust and helps meet compliance standards.
Tie executive pay to ESG outcomes
Align leadership incentives with ESG goals. For example:
- Bonuses tied to local hiring
- Long-term stock options linked to reclamation progress
- Performance reviews that include stakeholder feedback
When leaders are accountable, ESG becomes part of company culture—not just reporting.
22. 48% of chemicals industry players have net-zero commitments
The chemical industry begins its transformation
With nearly half of all chemical companies now committing to net-zero targets, a sector once seen as purely extractive and high-impact is working to redefine its future. These commitments are not just PR—they’re signaling real change in how products are made and processes are managed.
Why net-zero is tough—but vital—in chemicals
This industry faces complex challenges:
- High carbon intensity in production
- Reliance on petroleum-based feedstocks
- Safety risks and toxic emissions
Still, ESG leaders in this space are proving that transformation is possible.
How chemical firms can follow through on net-zero goals
Start with energy audits
Before you can reduce, you have to measure. Conduct plant-wide energy audits to identify:
- Inefficient heating and cooling processes
- Energy loss in batch production
- Opportunities for waste heat recovery
These insights help prioritize quick wins.
Switch to low-carbon feedstocks
Look for opportunities to replace fossil-based inputs with:
- Biomass or plant-based materials
- Recycled chemical streams
- Green hydrogen where applicable
This may involve partnerships with suppliers or investing in R&D, but the long-term benefits are huge.
Capture and reuse emissions
Invest in technologies like:
- Carbon capture and utilization (CCU)
- On-site recycling of waste gases
- Closed-loop processing systems
These systems can significantly reduce emissions while improving efficiency.
23. 45% of construction firms follow ESG standards
Building a sustainable future
The construction industry has one of the largest environmental footprints globally. That’s why it’s promising to see that 45% of firms are now applying ESG standards across their projects. This shift is helping make cities cleaner, safer, and more livable.
What ESG looks like in construction
It’s more than just green buildings. ESG in this sector covers:
- Sustainable material sourcing
- Worker health and safety
- Community impact during and after construction
It also affects how projects get financed, permitted, and marketed.
Steps for construction firms to build ESG into the blueprint
Use greener materials
Opt for:
- Recycled steel and concrete
- Locally sourced timber
- Low-VOC paints and sealants
These choices reduce your environmental footprint and can improve indoor air quality for future tenants.
Prioritize safety as a social metric
Worker safety should be treated as a central part of ESG, not just a compliance item. Track and report on:
- Lost time injury rates
- Near-miss incidents
- Mental health support programs
Sharing this data can help attract clients, partners, and employees who value responsibility.
Reduce construction waste
Develop a plan for:
- On-site sorting of recyclable materials
- Modular construction to reduce excess
- Donating surplus materials to local nonprofits
Smarter waste management not only saves money but enhances your social and environmental credibility.
24. 44% of logistics companies report ESG metrics externally
Logistics gets transparent
As the backbone of global commerce, logistics companies are under pressure to clean up their act. With 44% of firms now reporting ESG metrics externally, this sector is beginning to take accountability for its role in climate and social impact.
Why ESG is rising in logistics
Several key factors are at play:
- Customers demand greener shipping options
- Retailers want visibility into their supply chains
- Regulators are starting to target emissions and labor practices
ESG metrics help logistics firms stay competitive and compliant.
How logistics firms can lead with ESG
Track emissions by shipment
Use digital tools to measure carbon output per delivery or route. This allows you to:
- Optimize delivery schedules
- Shift to rail or sea for longer hauls
- Offer carbon-neutral shipping options
This data can also feed into your clients’ own ESG reports—making you a more valuable partner.
Improve warehouse efficiency
Warehouses are big energy consumers. Focus on:
- LED lighting with motion sensors
- Smart HVAC systems
- Solar panels for rooftops
These upgrades reduce costs and emissions over time.
Treat workers as stakeholders
Social impact in logistics often starts with the workforce. Invest in:
- Fair wages and benefits
- Diversity and inclusion programs
- Training and upskilling opportunities
Better conditions not only meet ESG standards—they improve retention and productivity too.
25. 42% of education-related corporations mention ESG in annual reports
ESG enters the education space
Education might not be the first sector that comes to mind when you think of ESG, but that’s changing. With 42% of education-focused corporations—such as edtech companies, private institutions, and learning platforms—now including ESG in their annual reports, the industry is waking up to its broader responsibilities.
Why ESG matters in education
Education affects future generations. ESG in this field helps address:
- Digital equity and access to learning
- Data privacy and ethical use of technology
- Inclusion in hiring, content, and leadership
When handled well, ESG adds value for students, investors, and communities alike.
Practical ways to implement ESG in education companies
Promote accessibility and equity
If you’re an education provider, ask yourself:
- Can students access your platform in low-bandwidth areas?
- Do you offer scholarships, free tiers, or subsidies?
- Is your content available in multiple languages or formats?
These are not just ESG moves—they’re growth strategies too.
Embed ESG into curriculum design
Whether you’re creating K-12 content, university syllabi, or corporate learning modules, add ESG themes like:
- Climate awareness
- Financial literacy
- Social responsibility
This helps learners connect their education to real-world issues.
Report data privacy and governance clearly
Especially in edtech, governance is critical. Show transparency by:
- Explaining how user data is stored and shared
- Disclosing third-party partnerships
- Outlining internal oversight mechanisms
Trust is essential in education—ESG reporting helps build it.
26. 41% of professional services firms use ESG benchmarks
ESG becomes a service differentiator
In professional services—consulting, accounting, legal, HR—41% of firms now use ESG benchmarks to evaluate their own operations and their clients’. These benchmarks are fast becoming part of how these firms win and retain business.
Why ESG matters in client service industries
Firms in this sector may not produce goods, but they shape decisions and strategies for others. That influence means:
- Clients look for ESG-aligned advisors
- Talent prefers working at values-driven firms
- Investors reward ESG-aligned service providers
In other words, ESG is becoming a credibility factor.
How service firms can implement ESG benchmarks effectively
Benchmark your own practices first
Start with internal assessments of:
- Workforce diversity
- Energy usage in office spaces
- Ethical billing and data policies
Then, set public goals to improve.
Help clients achieve their ESG targets
Offer ESG consulting as part of your service stack. For example:
- Legal firms can review sustainability clauses in contracts
- HR firms can advise on DEI policies
- Accounting firms can help with ESG reporting
This builds deeper client relationships and adds real value.
Share your journey
Publish a simple, clear ESG section in your annual report or website. Include:
- Progress toward internal goals
- How you support client ESG needs
- Community and pro bono involvement
This transparency sets you apart in a crowded market.
27. 40% of legal and compliance firms apply ESG filters to due diligence
ESG is reshaping due diligence
Due diligence isn’t just about finances anymore. With 40% of legal and compliance firms now using ESG filters, things like environmental violations, labor practices, and board diversity are becoming critical in M&A, partnerships, and investments.
Why this shift is happening
Investors and boards want to avoid risks that don’t show up on balance sheets. ESG due diligence helps uncover:
- Potential litigation tied to pollution or unfair labor
- Supply chain risks in overseas manufacturing
- Weak governance in startup acquisitions
This early insight prevents costly surprises.
How legal and compliance teams can integrate ESG into due diligence
Create ESG checklists for transactions
Include items like:
- Environmental permits and violations
- Workplace safety records
- Board diversity and executive compensation structures
Use these as part of every deal review—not just for large transactions.
Highlight red flags early
Don’t bury ESG concerns in appendices. Flag them clearly in executive summaries. Give decision-makers a risk rating and action plan.
This makes ESG part of the conversation, not an afterthought.
Train your team in ESG literacy
Due diligence teams need to understand:
- What ESG metrics mean
- Which regulations apply by region or industry
- How to evaluate non-financial disclosures
Short internal training sessions or expert webinars can make a big difference.
28. 38% of private equity firms screen investments based on ESG criteria
ESG is influencing private capital
Private equity used to focus almost entirely on financial performance. Now, 38% of firms are adding ESG criteria into their investment screening process. It’s a major shift—because where capital flows, change follows.
Why ESG is gaining traction in private equity
Private equity firms are long-term owners. They don’t just buy and flip—they shape company culture, strategy, and governance. Screening for ESG issues helps:
- Reduce long-term regulatory and reputational risk
- Improve portfolio company performance
- Align with limited partners who demand responsible investing
It’s about future-proofing returns and reputation.
How PE firms can integrate ESG screening effectively
Define your ESG filters
Customize based on your sector focus. For example:
- Environmental: Emissions intensity, resource usage, pollution controls
- Social: Workforce treatment, diversity, community impact
- Governance: Board structure, audit transparency, anti-corruption policies
Make these part of your investment memos and term sheets.
Make ESG part of value creation
Don’t stop at screening. Post-acquisition, work with portfolio companies to:
- Set ESG targets
- Improve data collection
- Publish annual ESG updates
This builds enterprise value and creates better exit stories.
Communicate with LPs
Institutional investors increasingly demand ESG-aligned portfolios. Regularly update your LPs on:
- ESG strategy and results
- Portfolio ESG performance
- Steps taken to address red flags
It builds trust and can help raise your next fund more easily.
29. 36% of VC firms require ESG assessments from portfolio companies
Startups feel the ESG push
Venture capital is traditionally about speed, growth, and risk. But that’s changing too. Now, 36% of VC firms require startups to assess or report on ESG. It shows that sustainability isn’t just for mature businesses—early-stage companies are in the game too.
Why ESG matters at the startup stage
Founders set the culture. If ESG is part of the DNA early, it’s easier to scale with integrity. And VCs know this:
- Startups with strong ESG are more attractive to acquirers
- Employees are more loyal to mission-driven startups
- Future funding rounds go smoother with solid governance
Early ESG adoption is a strategic edge.
How VCs can build ESG into their playbook
Include ESG in due diligence
Even basic questions help:
- Does the company track energy use or diversity?
- Are founders trained on anti-discrimination laws?
- Are there any ESG red flags from prior ventures?
These questions create a foundation for future accountability.
Provide ESG toolkits to founders
Most startups don’t know where to begin. Offer:
- ESG reporting templates
- Access to third-party auditors or platforms
- Coaching sessions on ESG storytelling for fundraising
This turns ESG into a value-add, not a burden.
Tie ESG to growth metrics
Encourage founders to track ESG alongside revenue and burn rate. For example:
- CO₂ per transaction
- Employee turnover
- Customer complaints related to ethics
Simple metrics that grow with the company lead to smarter scaling.
30. 32% of family-owned enterprises report ESG metrics to stakeholders
Tradition meets transformation
Family businesses may be private and deeply rooted—but they’re starting to open up. With 32% now reporting ESG metrics, these companies are recognizing the need to evolve while preserving legacy.
Why ESG is a smart move for family-owned firms
Many of these companies are:
- Highly respected in local communities
- Multi-generational, with long-term views
- In industries with close public scrutiny (e.g., agriculture, manufacturing)
ESG reporting helps them maintain trust, plan for succession, and stay competitive.
How family enterprises can approach ESG
Start small, but start now
You don’t need a corporate-level ESG report. Begin with:
- An annual letter to stakeholders covering environmental and social goals
- A one-page metrics sheet on key topics like waste or hiring diversity
Clarity and honesty matter more than polish.
Involve the next generation
Younger family members often push for sustainability and transparency. Bring them into:
- ESG strategy development
- Community engagement efforts
- Technology upgrades for data tracking
This builds both buy-in and leadership for the future.
Show how ESG ties to values
Family businesses are often mission-driven. Link ESG goals to your founding principles. For example:
- “Respect for the land” becomes a water conservation plan
- “People first” becomes a fair wage policy
This makes ESG authentic, not performative—and builds deeper connections with stakeholders.
Conclusion
Across industries—from utilities to startups, from real estate to agriculture—one thing is clear: ESG is no longer a niche concept. It’s a core business practice, and it’s being adopted at scale, with each sector bringing its own challenges, priorities, and opportunities to the table.
