Battery Industry ESG Thematic Report, 2023

Environmental, Social, and Governance (ESG) in the Battery market

The global population is expected to reach almost 10 billion people by 2050, that presents an opportunity for companies in the market to capture this unprecedented energy consumption demand. This will be an existential challenge unless battery Industry leaders develop new technologies and sustainable business models that minimize greenhouse gases emissions. So, incorporating ESG is not only important in risk approaches, but it can also be looked like an emerging factor for the market growth. From providing the initial power needed to start cars to acting as a backup source of electricity in telecommunications, public transportation, and medical procedures, batteries play a significant role in our daily lives.

The increasing demand of consumer electronics on a global scale is projected to result in the usage of the lithium-ion battery as a product type over the coming years. The market is expanding because of rising demand for portable electronics and gadgets including LCDs, smartphones, tablets, and wearable gadgets like fitness bands. The automotive application of rechargeable batteries used in non-rechargeable batteries and electric vehicles is also boosting the growth of the market.

ESG Trends

Solid-state batteries and Sodium-ion batteries have the potential to become more environmentally friendly alternatives to lithium-ion batteries. They have many advantages over other battery types, which include energy efficiency, compactness, lightweight, and higher usage time. In addition, there is a lower risk of explosion or battery fire; hence, there is no need to have safety components, which saves more space.

Battery companies are already making efforts on their environmental, social and governance (ESG) journeys, especially for the environmental part, for example many companies have set Net-Zero targets. One of the top companies in this sector has recently set a target to reduce the CO₂ intensity to 40% by 2025, along with the reduction of GHG emissions globally to 30% by 2030.

ESG Challenges

The biggest challenge for investors is the greenhouse gas emissions and disposal of batteries by the battery companies. Improperly disposed batteries contribute to water and air pollution, affecting the environment, and negatively affecting human health as they contain harmful acids & chemicals. Also, the economic situation has gotten more difficult, and sustainability is becoming more important. Supply chain challenges due the COVID-19 pandemic have made the supply chain concerns even worse. Other challenges include lack of standard protocols, lack of skilled Engineers, and logistics Issues. All these directly affect progress of companies in the market toward the United Nation’s Sustainable Development Goals. Some of these include Decent Work and Economic Growth and Industry, Infrastructure, and Innovation.

Growth of The Battery industry

In 2019, the global battery market size was valued at US$ 108.4 billion and is expected to expand at a compound annual growth rate (CAGR) of 14.1% from 2020 to 2027. India’s annual battery market could surpass $15 billion by 2030, and the battery demand in India is expected to rise to 260GWh by 2030. Much of the growth for the industry has been accelerated by an increase in the demand for lithium-ion batteries, which caters to the electric mobility. Initiatives like FAME II and other state EV policies have helped to create a favorable environment for accelerated EV deployment, which will enable battery companies to gain market share. Also, the production-linked incentive (PLI) program launched by the government of India is one such initiative that would provide a much-needed incentive to boost the manufacturing capacity of batteries in the coming years.

Key Companies in this theme

    • BYD Company Ltd.

    • Duracell

    • Johnson Controls

    • LG Chem Ltd.

    • Samsung SDI Co. Ltd.

Scope of the Battery Industry ESG Thematic Report:

    • Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape

    • Key insights on infrastructure developments and ESG issues affecting the theme

    • Identify key initiatives and challenges within the industry

    • Identify ESG leaders within the industry

    • Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process

    • Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment

Key Benefits Battery Industry ESG Thematic Report:

    • Developing a comprehensive understanding of macro-economic, Policies & Regulations and innovations affecting the market, globally

    • Key insights into environmental developments and ESG issues affecting the theme

    • Identifying ESG risks and opportunities to business among leading players in the market

    • Obtaining a clear and relevant understanding of company actions, progress, and impact and find opportunities for investment into the market