This month our Safeguard ESG impact tracker shows HanesBrands leading our Consumer Discretionary category in ESG score and sentiment for October. The company achieved this by creating a new website devoted to their sustainability initiatives and rolling out new goals for 2030.
The United Nations identified the fashion and apparel industry as a major problem area in 2018 when they unveiled their sustainable development goals. Of the 17 goals, 8 of them involve the fashion and apparel sector. According to the U.N., the fashion and apparel sector accounts for 10% of the world’s carbon emissions and 20% of all wastewater. In addition, the industry is linked to gender and poverty issues with women comprising 80% of the workforce throughout the entire supply chain. With such a wide range of issues in one industry, it’s understandable that companies like HanesBrands have a broad based approach to mitigating these problems.
HanesBrands in the past have received low mentions but maintained a stellar sentiment score on our ESG impact tracker, Amenity Safeguard, thanks to a proven track record of the company addressing material sustainability issues in their industry. Now HanesBrands are amplifying their story with new urgency and greater transparency. Back in 2018 they set goals for reductions in water use and greenhouse gas emissions which received recognition by the Carbon Disclosure Project in January of this year. This month the company rolled out new initiatives along with a new website highlighting their sustainability initiatives as well as providing a platform for sharing progress and metrics.
HanesBrands new new goals for 2030 address environmental and social concerns that are material to their business and further the U.N. Sustainable Development Goals. Of primary concern on their website is people. HanesBrands have committed to improve the lives of 10 million people in their workforce and in the communities that they impact. Emphasis has been placed on health and wellness, diversity and inclusion, and education. According to the website more specific initiatives will be unveiled in 2021.
Pertaining to the environment, HanesBrands is committing to reducing Scope 1 and 2 emissions by 25% as well as using 100% renewable energy in company operations. As of 2019 company operations are 40% powered by renewables. Water has been targeted as well, with a 25% reduction in wastewater as a goal. An additional emphasis has been placed on product design for 2025 and waste reduction in packaging and end of product life.
These goals by HanesBrands touch on each of the eight Sustainable Development Goals outlined by the U.N. that pertain to textile manufacturing and fashion. Thanks to the new website HanesBrands have launched, it is easy now for investors and consumers to keep up to date with new initiatives and voluntarily reported metrics that impact the business. For these reasons HanesBrands topped our ESG index in their category for the month of October.
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Join us as we take a look at the evolution of the ESG narrative from 3Q Earnings through the lens of our industry-leading natural language processing. Our ongoing analysis of 3Q earnings transcripts and news articles found the following trends that are worth discussing in detail:
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This communication does not represent investment advice. Transcript text provided by FACTSET and S&P Global Market Intelligence.
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