As consumer knowledge about environmental, social and governance issues grows, there’s an increased expectation that companies will report their progress in these areas.
This is achieved through ESG reporting, whereby brands state their achievements and future commitments. Organisations that report good ESG data are more attractive to investors and consumers.
ESG investing is a great way to support the planet and have a stake in a more sustainable and greener future. This is great practice alongside sustainable practices like recycling more, eating less red meat and switching to LED lighting.
Read on to discover what ESG is and which tech companies are performing well against these criteria.
What Is ESG?
ESG stands for environment, social and governance. More and more companies are reporting their ESG efforts, which is helping people make better-informed decisions.
Stakeholders, investors, employees and consumers are increasingly interested in how brands interact with their environmental responsibilities and social obligations. They’re also increasingly likely to choose to buy from, work for and invest in brands that are reporting satisfactory ESG information.
The biggest ESG tech companies
A remarkable 81% of companies have a formal ESG program but some organisations are leading the way in their reporting. Let’s dive in and discover some of the biggest ESG tech companies in the world.
Telstra Group Limited
Telstra Group Limited is an Australian telecommunications company that was founded in 1975. It has built a mobile phone signal and data network and is the largest mobile service provider in the country. The organisation enjoys a customer base of 18.8 million people, employs over 25,000 people and has a revenue of A$26bn.
With regard to Telstra Group Limited’s ESG commitments, it is one of the strongest in Australia and the world. They publicly outline how Aboriginal and Torres Strait Islander peoples contribute to the company and have made a commitment to support the building of a more inclusive Australia.
The brand releases regular reports about its sustainability and ethical practices, pinpointing that they’re a carbon-neutral company and are on track to reduce absolute emissions by at least 50% by 2030.
Microsoft
Microsoft is one of the most recognisable technology brands in the world – and it’s easy to see why. They operate worldwide and are one of only three companies to be valued at over US$1tn, being in an exclusive group alongside Apple and Amazon.
Microsoft produces laptops, video games, game consoles, internet browsers and writing tools that are used by millions of people every day. With 221,000 employees and revenue of US$198.3bn, they know the importance of presenting their ESG data.
The brand is working towards being carbon negative by 2023 and is going one step further than most technology companies. By 2050, they intend to remove all their historical emissions too – repairing existing damage to the environment. They are also working to replenish more water than they use and become a zero-waste organisation.
Verizon Communications Inc.
Verizon Communications Inc., better known simply as Verizon, is a US company with a revenue of US$136.8bn. It’s the largest wireless carrier in the US and owns AOL and Yahoo! Inc.
It was the first telecom company in the country to produce a green bond, showing an early commitment to the environment and for good reason – it has traditionally been one of the big polluters. Fortunately, steps are being taken to address this.
In 2021, Verizon recycled 35 million pounds of electronic waste, which included batteries and plastics. The company has a dedicated page on its website about its ESG performance and commitments, which is helpful in letting investors, employees and customers better understand the relationship between the company and the environment.
Apple
The world-famous company Apple was founded in 1976. Back then, it was only selling computers but now it’s the largest technology company in the world, generating revenue of US$394.33bn. It’s a producer of both hardware and software, including iPhones, Apple TV+ and AirPods.
Apple is working to be completely carbon neutral by 2030 and is governed by a clear set of principles and initiatives that drive them to become more sustainable. Their most recent products use more recycled materials and their in-store recycling programme ensures that their electronic waste is substantially reduced.
Outside of the environment, Apple also reports on its social and governance performance. They state that they are committed to creating an inclusive work environment and embedding transparency and accountability at every level of the organisation.
