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ESG – The Next Big Leap for the Technology Sector
ESG – The Next Big Leap for the Technology Sector

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We just celebrated 'World Environment Day' last week, with countries across the globe pledging to work towards a better tomorrow.

This morning I saw the below data which highlighted that despite so much development across all spheres the west is leading in terms of per capita carbon emissions, probably that is the cost of development?

 

After looking at the above data it's no surprise that the majority of the Fortune 500 companies have started to talk more about ESG/ Sustainability in their discussions.

·       A FactSet search analysis for the term “ESG” in the conference call transcripts of all the S&P 500 companies that conduct earnings conference calls indicated that the count of the term has increased significantly over the few quarters which is reflective of the trend that it's gaining significant importance across the corporate arena.

·       Specifically Q421, witnessed the highest number of citings in the last 10 years at 155, during the earnings calls.

Source: Factset

Though ESG has gained across all sectors, the technology sector is also working towards it, as it has become a top priority with scrutiny by clients, investors, and employees.

·       Notably, the number of ESG related articles has doubled over the last four years for the tech industry.

Source: NASSCOM-BCG “The Next Big Leap

Considering this need to work towards ESG, NASSCOM in partnership with BCG released the report The Next Big Leap’, which sensitizes the technology sector on the material ESG topics for the industry.  It also lays out the nine material topics across environmental, social, and governance that technology companies can use to formulate their respective ESG strategies.

 

Source: NASSCOM-BCG “The Next Big Leap

 

And a five-point maturity framework that enables CXOs to analyze their current position and provides actionable steps to dynamically evolve in this fast-evolving topic.

 

Source: NASSCOM-BCG “The Next Big Leap

Overall, the climate change that we face today has made ESG an important focus area across the globe, and larger organizations do have the responsibility to lead this charter from the front. Read more details on how technology organizations can formulate their ESG strategy in our report NASSCOM-BCG “The Next Big Leap”.

Stay tuned on NASSCOM Insights! Happy Reading!

 

 


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Neha Jain
Senior Analyst

Neha Jain

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