With earnings season underway, we highlight the most interesting ESG themes along with the associated management sentiment that stood out among the call commentary. In particular, our ESG analytics highlights Resource and Materials Use as well as Clean Technology Beyond Wind and Solar—two themes that we highlighted earlier this year as must watch.
Earnings calls have kicked off in recent weeks. Using our ESG Safeguard platform to comb through the multitude of ESG insights from this latest round of calls, we are delivering the most interesting extractions from the past two weeks that highlight the major themes we have outlined for 2022, including Resource and Materials use as well as Clean Technology Beyond Wind and Solar.
"We also continue to benefit from the shift to electrification in our truck/trailer business with strong traction on our innovative Vector eCool units.
Customers now operate these units in 11 countries, and our market leadership in this segment is being recognized. Just recently, Vector eCool earned the Top Product of the Year Award from the Environment + Energy Leader Awards program.”
“In the next three years, we expect to redeploy $300 million to $500 million to advance innovation across our iconic brands, accelerate electrification in our Outdoor and Engineered Fastening businesses, rapidly accelerate our end-user market activation and create the supply chain of the future.”
“In Spain, we've now reached two agreements for wind power that would support 75% of the energy needs for the restart of the San Ciprin smelter.”
Green hydrogen continues to play an important role in the green transition. More companies and countries are working to develop and build regional industrial hubs that will produce green hydrogen as well as support industries in the area transitioning from diesel to hydrogen fuel systems.
“The project sets up the Hydrogen Valley in Rome, the first industrial scale technological hub for the development of the national supply chain for the production, transport, and storage and use of hydrogen for the decarbonization of industrial processes and for sustainable mobility.”
Water is emerging as an important topic from a material perspective as it impacts agriculture, beverage manufacturers, and even data centers that use water for cooling. Swiss-based industrial company, Sulzer sees desalination as an area of growth, especially in water stressed regions like the Middle East.
“But this project will be there, and we expect not only Saudi as I just mentioned, but also in the Emirates, in Qatar, in Dubai, a strong and solid activity for desalination.
And this also might or will come in other places like the US in California, but also starting in South Europe in view of what the hot summer we have experienced. So, desalination remains a niche market compared to the size of water.”
Resource and Materials Use was one of our five themes for 2022, and the following two companies are showing how recycling in the construction industry and consumer space have become major business lines. Interestingly, Tomra is a company that bases its entire business around recycling consumer plastics and talks about how new regulations affect their business.
“Environmental and recycling growth are driving demand for our Ecotec and CBI products.
The MP team has taken existing product designs and modified them to service the fast-growing environmental and waste recycling market with a focus on construction and demolition waste.”
“So, in general, still strong market sentiment, some uncertainty by smaller players, but especially among the large players, their continued commitment into the circular economy and investments seems to be firm.
Some positive regulatory developments in Europe in the quarter, September 15, the European Commission adopted new rules on recycled plastic to be used in contact with foods.”
In recent weeks we saw some usual extractions when it comes to ESG in earnings calls, like renewable energy and electrification. However, we also see more companies discussing recycling, and recycling as a real driver of business as well. Water use is starting to become a hot topic as well, and Sulzer has identified demand for solutions in this space including desalination.
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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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