• Three ASX companies honoured for strong ESG efforts
  • Orica leads sustainability with major emissions abatement project
  • Sims and Australian Vintage also recognised for ESG commitment

 

Three ASX-listed companies have been recognised this year for their strong work in environmental, social and governance (ESG) efforts.

These awards highlight how local companies are tackling issues like environmental impact, social responsibility and good governance.

For investors who care about ethical practices, these awards are a good sign that listed companies are aligning with values that support a more sustainable future.

As more people choose ethical investing, there’s a growing focus on businesses that not only provide financial returns, but also make a positive difference in society and the environment.

 

Orica’s game-changing abatement project

In July, Orica (ASX:ORI) was named Australia’s most sustainable company in the 2024 Australian Financial Review Sustainability Leaders awards, taking home top honours for its significant environmental impact.

The company, a global leader in commercial explosives, was recognised for its groundbreaking emissions abatement project at its Kooragang Island plant near Newcastle, NSW.

This project is the largest of its kind in the Australian chemicals sector, reducing emissions by 45% at the site and cutting national chemical industry emissions by 11%.

The initiative involves the installation of innovative abatement technology that significantly reduces nitrous oxide emissions from the production of nitric acid, a key component in explosives.

Nitrous oxide is a potent greenhouse gas, and the project’s success is expected to abate half a million tonnes of CO₂ equivalent annually. To put this in perspective, it’s the equivalent of removing 100,000 cars from the road each year.

Orica is also working on similar projects at its Yarwun facility, set to remove an additional 200,000 tonnes of CO₂ equivalent per year.

The judges believe Orica’s efforts have not only addressed environmental challenges but have also driven economic growth, injecting millions into the local economy while future-proofing critical manufacturing capabilities for industries such as mining, agriculture and healthcare.

The company’s commitment to sustainability is also reflected in its ambitious climate targets, aiming for net zero emissions by 2050.

 

Sims crushes emissions while recycling the world

Earlier this year, Sims Metal Management (ASX:SGM), an Australian-based global recycling company with a 106-year history, was named the most sustainable corporation of 2024 by Corporate Knights, topping its Global 100 list.

Known for its role in the circular economy, Sims has been integral in reducing carbon emissions by recycling metals like steel, copper, and aluminium – which are crucial in industries like electric vehicles, wind turbines and solar panels.

In 2023 alone, the company’s efforts saved 13 million tonnes of CO₂, equivalent to removing nearly three million cars from the road, according to its reports.

Sims’ approach to sustainability extends beyond recycling, with ambitious goals to transition to renewable energy in its operations by 2025 and achieve net-zero emissions by 2050.

Despite some environmental setbacks, such as a clean-up order related to effluent discharge in Canada, Sims has made substantial investments in emissions-control systems.

Looking forward, Sims says it sees a growing demand for recycled metals, driven by the shift to a low-carbon economy.

The company is investing in advanced technologies, like automated sorting systems and AI robots, to improve the efficiency of its recycling processes.

Although these innovations may not always attract the same attention as large renewable energy projects, CEO Stephen Mikkelsen said that metal recycling plays a vital role in decarbonising industries and contributing to a sustainable future.

 

Australian Vintage ages well in ESG

Australian Vintage (ASX:AVG) won the 2024 Global Drinks Intel ESG Award for Sustainable Wine Producer, which was announced in September.

The award recognised the company’s strong commitment to environmental, social, and governance (ESG) principles, despite current challenges within the Australian wine industry.

The company had earlier achieved B Corp certification in February, making it one of only three Australian wine companies with this status.

Australian Vintage’s ESG strategy focuses on three key pillars: ‘Thriving People’, ‘Nurture Nature’, and ‘Meaningful Growth’.

The company said all these are supported by measurable, verifiable performance.

Socially, Australian Vintage has also reduced its gender pay gap from 9% to 4% and increased female representation in leadership roles to 40%.

Environmentally, the company transitioned to 100% renewable electricity across all its sites and operates one of Australia’s largest privately owned solar farms. Additionally, 98% of its packaging is recyclable, with a target of 100% by 2025.

The company also exceeded its goal of having 50% of its winegrowing partners certified under the ‘Sustainable Winegrowing Australia’ programme, reaching 83%.

The judges praised Australian Vintage for not just making ESG commitments, but for quantifying and achieving real, impactful results.

 

 

This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decision.

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