Strategy& – The Competitive Advantage of ESG

The industrial manufacturing (IM) industry is being greatly impacted by ESG standards, which are driving their strategic agenda. This is especially true for IM companies that supply emissions-heavy sectors such as automotive, chemicals, and energy. They are facing pressure from regulators and customers to demonstrate how they will achieve net zero emissions throughout their value chain. To assess the progress of IM companies in reducing emissions and other environmental impacts, this report compares the performance of 44 leading companies from Germany, Switzerland, and Austria with the findings of a previous study conducted in 2022. The analysis includes both quantitative and qualitative data. Quantitative data includes CO2e emissions in Scope 1, 2, and 3, as well as CO2e reduction targets and ESG investments. Qualitative information encompasses specific measures taken by these companies to reduce CO2e emissions. This report aims to provide insights into the current state of ESG implementation within the IM industry and highlights the areas where improvements are needed. By understanding the progress being made by these companies, stakeholders can gain valuable information to drive their own ESG initiatives and contribute to a more sustainable future.