The company approached Research Netser for strategic solutions to improve its environmental regulations to take advantage of new and existing business opportunities, as stakeholder and investor scrutiny over its environmental, social, and governance (ESG) performance has increased.
A major player in bulk chemical production has recently faced increased pressure to enhance its environmental, social, and governance (ESG) performance. Given the importance of sustainability, the company sought to design its ESG approach to remain competitive and meet regulatory requirements, since stakeholders' and investors' concerns about these regulations raised apprehensions for the company's long-term success.
Our client has been in the business for more than 30 years and has gained its position in the production of industrial chemicals. Despite its remarkable achievements in the industry had to face increasing pressure from the stakeholders and investors to improve its ESG performance which impacted the customer performance too. Our client understood the importance of implementing some strategic and sustainable practices without sacrificing the market share and the company’s long-established reputation. That is when the company approached Research Nester for strategic consulting in regulating its ESG norms.
Our analyst identified primary challenges in ESG performance, including:
The company’s operation had a severe impact on the environment including high carbon emissions and waste generation. It was also observed that few of the governance policies lack transparency and accountability. These raised concerns and attracted higher scrutiny from the regulatory and environmental bodies. Investors and stakeholders also raised apprehensions about the company’s long-term sustainability. With a detailed survey and some strategy mapping our experts emphasized implementing strict environmental regulations to be implemented in the organization:
Implementation and adoption of renewable energy and efficient production processes resulted in a successful reduction of carbon footprint by 25% over 2 years.
The growing demand for eco-friendly products was another strategic breakthrough to increase the company’s profit and expand the business. Our client agreed to embrace green chemistry principles and reformulated its cleaning solvent line to be biodegradable and non-toxic, this was aimed to minimize environmental impacts and reduce raw material costs. Our extensive findings also indicated that the company integrates energy-efficient technologies such as modern heat exchangers and energy recovery systems, as well as invests in renewable energy sources such as solar and wind, to power its operations. This assisted our clients in meeting 50% of their energy needs through renewables. Customers responded positively to the strategic adoption of eco-friendly product lines, opening up new commercial potential. Our client avoided potential fines, operational disruptions, and associated risk incidents in chemical manufacturing by meeting and surpassing regulatory standards on a proactive basis. This resulted in an increase in stock price by 15% and the implementation of sustainability measures led to a 20% in revenue growth.
Copyright © 2024 Research Nester. All Rights Reserved.
