Wires And Cables Industry ESG Thematic Report, 202

Wires And Cables Industry ESG Thematic Report, 2023

Compliance, ESG Challenges & Framework, ESG Trends

  • Published Date: Nov, 2022
  • Report ID: Astra-100271
  • Format: Electronic (PDF)
  • Number of Pages: 63

Environment Social and Governance (ESG) in the Wires And Cables Industry

The current trend of investments is impacted by the introduction of policies in areas of Environment, Social and Governance and the intense implementation of such policies.

The wires and cables industry is one of the highly demanded markets, the products have high applicability across various industries ranging from automotive, aeronautical to information technology industries. Products such as optic fiber and copper cables are used for connectivity and powering the infrastructures, with the high globalization activity, the market faces different kinds of challenges in terms of ESG. There are certain positive sides to the market in terms of the social aspect of the ESG by improving access to communication. However, the production of the wires and cables challenge the market in terms of environment. 

The key leaders of the market are however trying to scale down the negative impacts caused by the aforementioned issues by taking up initiatives. Also, 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 key products of the market are wire and cables. The components used for manufacturing the products are mainly thermoplastic for insulation and copper, silica for wiring, as well as germanium for cladding, used for optical fibers. Thermoplastic used for insulation is a polymer material, which is extracted from petroleum or crude oil and chemicals such as benzene or vinyl hydrochloride.  The sourcing of fossil fuel i.e., natural gas strains the environment, since the extraction process leaves intense amounts of carbon footprint, contributing to the increase of global warming and climate change, in contrast to the UN SDG 13 - climate change.

Germanium is extracted from the sphalerite, an ore which contains zinc. Extraction of germanium at industrial scale is done from copper and silver ores. The mining process is reported to cause poisoned waters, where chemicals such as lead and mercury and some acids, which are byproducts of the extraction process are dumped into the water bodies, in contrast to the UN SDG goals of clean water and sanitation(SDG6).

A significant component of electrical wires is copper, which is considered to be an efficient semiconductor, and is used in making the final product.  The extraction of copper negatively impacts the environment, since the mining process involves intense amounts of carbon emissions and also from the smelting and refining, which fall under scope 1 emissions. Besides, the waste produced from production may lead to copper poisoning, impacting the health of humans, contrasting the UN SDG goals of good health and wellbeing (SDG3).

In response to the circumstances, major companies of the wires and cables industry have taken up steps to reduce the impact by making environmental policies which influence the production process. One of the leading companies of the market has pledged to reduce the scope 1 and scope 2 emissions to 25% by 2025 and have committed to utilize renewable energy for production.

Inclusion of waste management strategies such as circular economy also helps in reducing the consumption of fresh raw materials, which in turn reduces the carbon footprint. Some of the key companies of the market have taken up policies to reduce and recycle the hazardous waste from the production, preventing the negative impact that can be caused from such hazardous waste.

Growth of Wire And Cables Market

The wires and cables market at global scale was valued at USD 183.14 billion as of 2020 and is forecasted to expand with a compound annual growth rate (CAGR) of 4.4% from 2021 to 2028. The increase in globalization activity is the driving factor of the market in commercial terms, however the value chain of the market, which involves the sourcing of the raw materials, extraction of raw materials and the waste management are some of the prevalent challenges that exist in the wires and cables market.

Key Companies in this theme

    • Belden Inc.

    • Fujikura Ltd.

    • Furukawa Electric Co., Ltd.

    • Leoni AG

    • LS Cables & System Ltd.

Scope of the Wires And Cables 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 Wires And Cables Industry ESG Thematic Report

    • Offers a global perspective of the wires and cables 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.

gvr icn


gvr icn

This Free Demo includes an overview of our proprietary ESG dashboard with industry & company benchmarking data, country performance, technological innovations, market estimates & forecasts. See for yourself!