Solid State Battery Industry ESG Thematic Report, 2022 Test

Industry Sustainability Outlook 

The average ESG disclosure score for the solid state battery industry is between 60% and 70%. Our proprietary Environment, Social, & Corporate Governance (ESG) scoring framework analyzed 65 parameters across ESG, as represented in the methodology section of this document.

Toyota Motor Corporation, Solvay SA, and two more market leaders were part of our research. Three out of four companies we researched scored above the average industry score. However, one of the market leaders needs to focus more on ESG reporting and transparency as it scored well below 60%.

However, we have seen a positive pattern in ESG evaluation among solid state battery industry participants for 5 years. Our research shows that most of the sustainability-related indicators have been made around environmental measurements, which stand at almost ∼ 70%, followed by governance and social components with a score of∼ 60% and ∼ 50%, respectively. Toyota Motor Corporation has been a leader in the sector from an ESG disclosure standpoint with a score of 78% followed by Solvay SA, among others.

Environmental Assessment

Batteries play an important role in our lives, from providing the initial power needed to start engines of cars to act as a backup source of electricity in telecommunications, public transportation, and medical procedures. Improperly disposed batteries negatively affect human health and also contribute to water and air pollution, affecting the environment, as they contain strong corrosive acids & chemicals. A solid-state battery, as the name suggests, uses solid electrodes and a solid electrolyte instead of liquid or polymer gel electrolytes found in lithium-ion or lithium polymer batteries. They have many advantages over other battery types. Energy efficiency, compactness, lightweight, and higher running range are some of the key advantages compared to the current lithium-ion batteries. In addition, they also do not pose the risk of explosion or there is a lower risk of battery fire; hence, there is no need to have safety components, which saves more space.

Provided below is a research on a few of the major organizations under environmental benchmarking, concerning their scope 1 and 2 emissions

Organizations in the solid state battery industry are constantly involved in research and development to enhance their presence across the globe by completely changing the oil and gas market. This is one of the technologies that have durability and minimum impact on the environment, for example, cobalt is not used in these batteries, resulting in a 50% better carbon footprint than conventional batteries. While considering the alignment principles of sustainability disclosure reports, it was seen that SolvaySA’s report aligns with the 11 recommendations of TCFD, along with the GRI, SASB, UNGC, and SDG standards. Moreover, the company has also set a target to reduce the CO2 intensity to 40% by 2025 along with the reduction of GHG emissions globally to 30% by 2030.

Environmental Assessment

Batteries play an important role in our lives, from providing the initial power needed to start engines of cars to act as a backup source of electricity in telecommunications, public transportation, and medical procedures. Improperly disposed batteries negatively affect human health and also contribute to water and air pollution, affecting the environment, as they contain strong corrosive acids & chemicals. A solid-state battery, as the name suggests, uses solid electrodes and a solid electrolyte instead of liquid or polymer gel electrolytes found in lithium-ion or lithium polymer batteries. They have many advantages over other battery types. Energy efficiency, compactness, lightweight, and higher running range are some of the key advantages compared to the current lithium-ion batteries. In addition, they also do not pose the risk of explosion or there is a lower risk of battery fire; hence, there is no need to have safety components, which saves more space.

Provided below is a research on a few of the major organizations under environmental benchmarking, concerning their scope 1 and 2 emissions

Organizations in the solid state battery industry are constantly involved in research and development to enhance their presence across the globe by completely changing the oil and gas market. This is one of the technologies that have durability and minimum impact on the environment, for example, cobalt is not used in these batteries, resulting in a 50% better carbon footprint than conventional batteries. While considering the alignment principles of sustainability disclosure reports, it was seen that SolvaySA’s report aligns with the 11 recommendations of TCFD, along with the GRI, SASB, UNGC, and SDG standards. Moreover, the company has also set a target to reduce the CO2 intensity to 40% by 2025 along with the reduction of GHG emissions globally to 30% by 2030.