Smart TV Industry ESG Thematic Report, 2023

Environmental, Social and Governance (ESG) in the Smart TV Industry

Integrating 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. The companies which fall under the smart TV industry have been disclosing sustainability concerns and updates on an annual or regular basis.

Smart TV segments have been growing due to increase in usage of the internet and streaming platforms like Over the Top space. Many companies are collaborating with OTT platforms in order to expand in the market along with introducing innovative productslike OLED, QLED, 4k and 8k TV’s. In terms of ESG, these products have significant influence on climate action and energy management as there has been an influence of renewable energy in this segment. Stakeholders are also interested in human rights issues or violation, occupational health and safety and training and development for the workforce as it has been criticized in the past. Sustainable supply chain and a transition to a circular economy has been a vital factor for this sector. Companies also emphasize on human rights and labor rights with a well-furnished policy respectively. All these elements within ESG can have a significant influence on sustainability when viewed from the lens of the United Nations’ Sustainable Development Goals (UN SDGs).

ESG Trends

Main ESG trends for Smart TV segment lies with both social and environmental aspects, starting with very promising product innovation like OLED, QLED, 4k and 8k TVs with built-in software and apps including platforms which provide access to OTT’s. This can directly promote the achievement of UN SDG 9- Industry, innovation, and infrastructure.  Reducing emission and transition as well as using renewable energy with specific targets have been one of the main trends that focuses on addressing climate action within the UN SDG, which is SDG 13: Climate Action. Companies have emission targets in terms of Scope 1,2 and 3 with specific target years’ respect to GHG protocol. Using energy efficient products and renewable energy has been one of focus which is linked to achieving the UN SDG 7: Affordable and Clean Energy. Maximizing resource circularity or engaging circular economy has been one of the primary focuses for this sector, where resources are reused and recycled, developing circular products, improving reparability, retrieval of e-waste etc. (SDG 12- Responsible production and consumption). Sustainable value chain operations are being ensured by such circularity for example eco-packages which replaces conventional plastic and vinyl materials with paper and recycled materials reducing environmental impact. Such practices also seek to reduce GHG emission and carbon footprint in upstream and downstream activities of the company.  Even though occupational Health and Safety have been a critical fall back in the previous years, companies have included workplace training and development for personnel with safety also in agenda (SDG 8- Decent work and economic growth). Companies disclose hours of training for safety and other activities as well.

ESG Challenges

Even though human rights and labor rights policies are well furnished and are in accordance with United Nations Global compact or international labor laws; still there have been many downfalls in certain parameters.  There have been various reports of child labor, unhealthy work conditions, inhuman working hours and poor working facilities. There are many disputes in supply chain and value operation, which are unattended and ignored from various news sources. Implementing strong monitoring and whistleblower systems can reduce the extent of human rights issues in the companies. In terms of affordability, smart TV is not intended for different socio-economic classes as such, but it has a target audience who can afford it. This is linked to the UN SDG 10: Reduced Inequalities among minorities which cannot afford it.

Growth of the Smart TV Market

To sum up, the smart TV market has promising market growth as they have integrated current technologies and updates. Smart TV has a great potential to storm the market with refining work ethics and culture throughout operations and supply chain, investors are keen for understanding projection of companies in terms of the elements mentioned. In fact, this segment has been expecting a compound annual growth rate of 20.8% from 2021 to 2028, with the current market at 268.9 million units.

Key Companies in this theme

    • LG Electronics Inc.

    • Samsung Electronics Co. Ltd.

    • Sony Corporation

    • VIZIO Inc.

    • Videocon Industries Ltd.

    • Sansui Electric Co. Ltd.

    • Toshiba Corporation

    • Haier Electronics Group Co., Ltd.

Scope of the Smart TV 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 Smart TV Industry ESG Thematic Report

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

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