Laptop Industry ESG Thematic Report, 2023

Environmental, Social and Governance (ESG) in the Laptop Industry

Considering ESG into decision making and business strategies contributes to an effective due diligence and a better investment decision for the company as well as relevant stakeholders. Companies which are focused on the market have been disclosing ESG data and strategies.

Laptop industry segment has been rising due various stimulants like growing internet penetration, rising disposable incomes, swelling global population as well as increasing awareness among consumers about the surge of novel technologies. One of the major ESG concerns for this segment is material sourcing, innovation and technology have been key parts of sustainable sourcing for most of the companies. Along with this, companies are transitioning to a circular business model throughout value chain operations. Focus for such a model is to implement sustainable packaging and waste reduction strategies. Companies are in favor of e-waste recycling programs to minimize environmental impact at end-of-life use. Affordability of various company products have also been a crucial factor among consumers. Stakeholders are also concerned about human rights violations in various parts of the world. 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

Main ESG trends have been more inclined towards environmental impact, and companies have been more responsible in material sourcing (SDG 12- Responsible production and consumption). One of the companies has a commitment made to design the future sustainably, over 27 million pounds of sustainable materials are used in products, products have 85% of post-consumer recycled plastic. Moreover, companies have made a commitment to keep materials out of oceans and water bodies ensuring the health of marine animals (SDG 14- Life below water).  Companies do have a lot of space for innovation (SDG 9- Industry, Innovation and Infrastructure) as focus on renewable materials have been noticeable with engineering marvels like tree-based bioplastics, bio-based rubbers and various technologies. Concept of circularity has been one of the critical aspects for these companies. One of the companies had introduced closed-loop aluminum from out of use hard drives with a collaboration with Intel. Such innovative concepts estimated a 50% reduction in overall product carbon footprint. Sustainable packaging has also been focal point for such circular business model ensuring zero plastic usage in the covers and packages with recyclable materials

ESG Challenges

Main challenges with this segment is affordability and persisting human right violation. Affordability is one of critical areas of interest, due to high import tax and levies certain products are very costly around some areas of the globe. This has come to place due to lack of production units or infrastructure supporting specific technology.  Most important challenge this industry has been facing is human rights violation, one of the companies has been accused of human right violation especially forced labor in China. Even though it is a violation of company policies among the supply chain foreign ministries were not in favor of people who complained and accused them of fabricating. Child labor has also been witnessed in certain sites, as it is stated cobalt batteries are built on backs of child labor in mines causing severe damage to children and violation of human rights.

Growth of the Laptop Market

Laptop market segment has a promising future ahead with a better room for innovation like cross functional and multifunctional capabilities catered by high investment and inclination to a sustainable business model. Even though there have been downfalls in many aspects, strict whistleblowing policies and human right monitoring systems can mitigate a lot of aftereffects of various issues. As well as introduction of production units and infrastructure or reducing import tax can mitigate affordability factors.  The laptop market has been valued at USD 101.67 billion in 2017 and estimated to expand at a CAGR of 0.4 %.

Key Companies in this theme

    • Dell

    • HP Development Company, L.P.

    • ASUSTeK Computer Inc.

    • Apple Inc.

    • Acer Inc.

Scope of the Laptop 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 of the Laptop Industry ESG Thematic Report

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

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

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

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