As we head into the new year and you take stock of your ESG programs, here is a list of 9 ESG initiatives that are key to successful ESG programs. Use this list to help improve your existing ESG initiatives or add to them as appropriate.
1. Emission Reductions
Given the urgent need for emission reduction, measuring emissions and undertaking emission reduction activities is one of the most impactful initiatives corporations can implement. Emission reduction activities include implementing energy efficiency programs, electrification of facilities and processes, designing low-carbon products, and buying renewable energy. Corporations can get recognition and feedback on their emission reduction targets by committing to the Science-Based Target initiative.
Science-Based Target Initiative
Science-Based Target Initiative(SBTi) is a partnership between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). SBTi drives climate action by enabling private sector organizations to set science-based reduction targets.
Commit to the SBTi and join over 6,000 companies committed to science-based targets, with over 2500 companies making net-zero commitments.
Setting science-based targets enables organizations to see how much and how quickly they need to reduce their greenhouse gas (GHG) emissions to prevent the worst effects of climate change. Companies can get detailed feedback and support from the SBTi’s technical experts to get their targets validated and implement actions to get to the emission targets.
For example, VMWare, has used its science-based target as the foundation for emission reductions.
Source: VMWare 2023 Sustainability Report
2. Renewable Energy
Corporations can set targets to increase the amount of electricity coming from renewable sources, and even set commitments to go 100% renewable. Several mechanisms are available to get to 100% renewable, including on-site renewables, purchasing renewable energy from utilities, and using other procurement instruments like Energy Attribute Certificates. Corporations can also bring along suppliers on the 100% renewable energy goals, by encouraging suppliers to procure renewable energy. Initiatives like RE100 help corporations advocate for policies in geographic locations where their suppliers might be located.
RE100 Initiative
RE100 is a global initiative bringing together the world’s most influential businesses committed to 100% renewable electricity. The goal of RE100 is carbon-free grids by 2040.
Using renewable energy is the primary method to reduce Scope 2 emissions. Join over 400 RE100 companies that have made a commitment to go 100% renewable. By joining RE100, members get to advocate for policies at the local and government levels to accelerate the adoption of renewable electricity solutions. RE100 provides member companies access to peer learning, policy support, and local market insight.
For example, Adobe intends to reach its RE100 goal by 2035 through operational and energy efficiency excellence; through policy advocacy that pushes everyone to a low-to-no carbon economy; by “fuel switching” (moving all natural gas and fuel oil to electric) when technology advancements allow it; and then by procuring only true, renewable energy from decarbonized grids where we work and liv
3. Supplier-focused initiatives
As companies mature on their sustainability journey and implement emission reduction and renewable energy programs at their facilities, they realize that a large portion of emissions are from their Scope 3 emissions. These are emissions based on upstream and downstream activities, including the purchase of goods and services. For many businesses, Scope 3 emissions account for more than 70 percent of their carbon footprint. Companies committing to the Corporate Net Zero Target with SBTi are required to address their Scope 3 emissions.
Supplier-focused initiatives address emissions from your upstream activities, that is, emissions from your suppliers. Supplier emissions can be addressed by creating “Supplier Code of Conduct” requirements in your procurement process and asking your suppliers to respond to questionnaires. Educating suppliers and providing financial resources can also help suppliers implement sustainability programs. For example, Clean Energy Procurement Academy, an initiative of Apple and Nike through the Clean Energy Buyers Institute (CEBI) and joined by Amazon, Meta, PepsiCo, and REI Co-op as founding organizations.
CDP and EcoVadis Assessments
CDP and EcoVadis provide platforms to manage supplier engagement. Members of CDP’s supply chain program can request their suppliers provide environmental data through CDP questionnaires. Going beyond environmental data, EcoVadis also provides ratings for all your suppliers, including criteria to evaluate their labor and human rights and ethics.
Companies can also create programs to use their purchasing power to provide impetus to suppliers to join the climate action movement.
For example, Walmart’s Project Gigaton requires Walmart suppliers to set science-based targets and take measurable action to reduce emissions across six areas critical to reach zero emissions: energy use, nature, waste, packaging, transportation, and product use and design.
4. Customer-Focused Initiatives
Customer-focused initiatives address emissions and resource use related to downstream activities, including product processing, use, and end-of-life treatment. These activities also include transportation and distribution of products to end-users.
For certain sectors like the Information and Communication Technology (ICT) Sector, customer-focused initiatives highlight their ability to be both enablers and exemplars in the actions to reduce environmental impact.
For consumer products, the focus is reducing end-user energy needs by making products energy-efficient and designing them with circular design principles. For example, to address increasing demand from customers for information on the carbon footprint of their solutions, Fortinet has developed a carbon footprint calculator for over 120 product models to help customers estimate the emissions of products in use. This calculator, whose methodology has been independently verified, is a testament to Fortinet’s commitment to transparency on the environmental impacts of its products.
Life Cycle Assessment (LCA)
Life cycle assessment: a method for the environmental assessment of products and services, covering their life cycle from raw material extraction to waste treatment.
The new Apple Watch is an excellent example of a product-based initiative. Designed to be carbon neutral through innovative materials, clean electricity, and low-carbon shipping.
5. Employee Initiatives
Passionate employees are a resource that can be tapped into for leading sustainability programs and advancing climate innovation. Training initiatives can be used to raise environmental awareness, and help employees integrate sustainability into their roles.
For example, Microsoft provides employees with learning opportunities and role-specific sustainability training.
Beyond the “environmental” impact, employee initiatives around the social impact of a company include initiatives around human capital management like compensation and benefits, training and talent development programs, diversity, equity, and inclusion (DEI) programs, health and safety initiatives, volunteer opportunities for employees and programs that communicate the corporation’s culture and values.
Going beyond emissions: Water and Waste Initiatives
6. Water Initiatives
In addition to emissions, water conservation is an environmental concern. Water use has temporal and location aspects to it as well. Companies can become leaders in water stewardship by conserving water used in operations, protecting watersheds, and working with local communities for access to clean water.
UN Global Compact, the CEO Water Mandate
The CEO Water Mandate is a special initiative established in 2007 by the UN Secretary General and the UN Global Compact (UNGC) in partnership with the Pacific Institute to advance corporate water stewardship around the world.
The Mandate offers a powerful forum for companies to share good practices and forge partnerships to address urgent water challenges related to scarcity, quality, governance, and access to water and sanitation.
For example, Intel’s Global Water Policy guides their water use. They aim to achieve net positive water by conserving 60 billion gallons of water (cumulative from 2020) and funding water projects that will restore more fresh water than we consume to our local watersheds.
7. Zero Waste Initiatives
Waste initiatives involve going beyond diverting waste from landfills to rethinking product design and material use to foster a circular economy.
Ellen MacArthur Foundation is an organization dedicated to creating a circular economy designed to eliminate waste and pollution, circulate products and materials (at their highest value), and regenerate nature.
For example, Nike is designing footwear, apparel, and accessories to last longer and, when it’s time, give those products and their materials new life.
Designing for a circular economy can also be a new business model like a product-as-a-service business model, which shifts the focus from owning the product to having access to the product as needed.
For example, Michelin, the tire manufacturer, offers a “Tire as a Service” model through its Michelin Fleet Solutions. Companies pay for using tires based on mileage, and Michelin manages tire maintenance and replacement.
Going beyond the company: Investing in Innovation, the Planet and Society
8. Supporting Sustainable Development Goals
The UN Sustainable Development Goals (SDGs) are aimed at stimulating action in areas of critical importance for humanity and the planet. Corporations can use the SDGs to inform their philanthropic projects and community-based initiatives.
For example, Intel believes that information communications technology (ICT) can play an enabling role in the implementation of all of the SDGs. Intel, Nethope, and the UN Foundation developed an SDG ICT Playbook that outlines technology trends, opportunities, and innovative case studies that global leaders can reference as they develop their strategies and actions to address the SDGs.
United Nations Global Compact (UNGC)
The United Nations Global Compact is an initiative that global corporations can sign on to committing to responsible business practices in the areas of human rights, labor, the environment, and corruption.
The UNGC is based on Ten Principles derived from the Universal Declaration of Human Rights, the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on Environment and Development, and the United Nations Convention Against Corruption.
The UN Global compact also drives business awareness and action in support of achieving SDGs by 2030. Join over 18,000 companies and commit to operating according to the Ten Principles of the UNGC and to support the 17 SDGs.
9. Investing in Climate Innovation
In addition to implementing ESG initiatives, companies are also investing in climate technology innovation that will provide further speed and scale to climate action.
Carbon Removal Initiatives:
Frontier is an advance market commitment (AMC) that aims to accelerate the development of carbon removal technologies by guaranteeing future demand for them. The goal is to send a strong demand signal to researchers, entrepreneurs, and investors that there is a growing market for these technologies. Importantly, Frontier aims to help create net new carbon removal supply rather than compete over what exists today.
It was founded by Stripe, Alphabet, Shopify, Meta, McKinsey and tens of thousands of businesses using Stripe Climate with a commitment to buy an initial $1B+ of permanent carbon removal between 2022 and 2030.
Funds and Pledges
In 2019, Amazon and Global Optimism co-founded The Climate Pledge, a commitment to net-zero carbon by 2040. Since then, a growing list of major companies have joined The Climate Pledge. These signatories will play a critical role in stimulating investment in the development of low-carbon products and services. Amazon’s Climate Pledge Fund, started with $2 billion from Amazon, will invest in companies creating products, services, and technologies to protect the planet. Amazon’s Climate Pledge Fund will accelerate investment in innovations for the net-zero carbon economy of the future.
Another example is Microsoft’s Climate Innovation Fund with focus on areas such as direct carbon removal, digital optimization, advanced energy systems, industrial materials, circular economy, water technologies, sustainable agriculture, and business strategies for nature-based markets.
Corporate ESG initiatives play a critical role in how companies can go beyond shareholder profits and respond to the needs of all stakeholders, including investors, employees, customers, suppliers, communities, society, and the planet.
This comprehensive list provides a catalog of ESG initiatives that can improve your 2025 ESG programs. Need help getting started or implementing ESG initiatives? Contact Us – with your questions or book a call with us for a free Assessment Consultation to discuss your needs and challenges.
