Cold Storage Industry ESG Thematic Report, 2023

Environment, Social and Governance (ESG) in the Cold Storage Industry

The Cold Storage market is one few markets, where demand has been reported to be high. Preserving the temperature sensitive products such as crops, sea food, processed food and pharmaceuticals, this market plays a crucial role, as part of the value chain of different markets. The cold storage industry impacts the ESG in terms of both environmental and social aspects. The carbon footprint from the infrastructure adversely impacts the environment, whereas by preserving the temperature sensitive products, the market creates a positive impact on the social aspect of ESG.

Increase in demand for pharmaceuticals and food products and the need for the supporting value chain impacted the market in terms of ESG, by promoting social health and food security. The United Nations’ Sustainable Development Goals (UN SDGs) is a comprehensive framework that helps companies in this market obtain a perspective on the impact of their products and operations on ESG parameters.

ESG Trends

The cold storage industry has been reported to be a crucial component of the global value chain of different markets ranging from processed foods, agriculture to pharmaceuticals, as to preserve the products of each of the mentioned markets, since the products are temperature sensitive and perishable.

Usage of cold storage infrastructure in the agricultural market has been reported to be beneficial, since the perishable goods are preserved in the controlled atmosphere, where air, temperature and humidity are remotely controlled, in the process of preserving. In the other markets, such as sea foods, the process of freezing has been reported to be beneficial, since the reduction in temperature helps in preserving the nutrients and proteins in the food, thereby promoting food security.

The same has been considered in the case of pharmaceutical products, since the products are temperature sensitive and in order to preserve them, lower temperatures are needed, impacting the social health aspect of the ESG. Hence, the industry has been making efforts to achieve one of the key UN SDGs which is Zero Hunger and Poverty (SDG2) and promote good health and wellbeing (SDG3).

Conversely, there are certain challenges to the cold storage market in terms of environment, in the form of establishment, the energy sourcing and the emissions.  Different kinds of components are used in the cold storage establishment, such as devices and gas for the purpose of commercial refrigeration.

The energy for running a cold storage requires industrial scale energy, in the present scenario, the energy is sourced from crude oil and coal, causing strain on the environment. In response to this scenario, one of the key companies of the market has adopted renewable sources of energy to power the facilities, by using solar panels, promoting the UN SDG goals of affordable and clean energy (SDG7).

The devices use different kinds of raw materials such as steel and plastic, when sourced causes strain on the environment, while the gas such as hydrofluorocarbons cause greenhouse effect, contributing to climate change. However, due to stringent policies made by different governments, the cfcs were replaced with more environmentally friendly gas such as tetrafluoroethene, which is reported to be a potential greenhouse gas, in contrast to the UN SDG goals of climate action (SDG13).

Growth of the Cold Storage Market

The cold storage market was valued at USD 119.98 billion as of 2021 and is forecasted to expand with a CAGR (Compound Annual Growth Rate) of 13.4% from 2021 to 2030. The promotion of UN SDG goals of zero hunger and good health and wellbeing although create a positive impact in terms of ESG, the challenges to the market in terms of power consumption and usage of gas, negatively impact the market in terms of ESG.  

Key Companies in this theme

    • Americold Logistics, LLC

    • Burris Logistics

    • Barloworld Limited

    • Cloverleaf Cold Storage

    • Henningsen Cold Storage

Scope of the Cold Storage 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 Aspects of the Cold Storage Industry ESG Thematic Report

    • Offers a global perspective of the cold storage industry and the policies and measures taken by the players, for overcoming the challenges faced in terms of Environment, Social and Governance.

    • Key insights into the sustainability practices of major players in the market.