Global Wind Energy Giant Siemens Gamesa Earns Top ESG Score In DJSI
Siemens Gamesa Renewable Energy, S.A.
Global wind energy giant, Siemens Gamesa, Renewable Energy has scored an impressive 84 (out of 100) in the Environmental Category within the Machinery and Electrical equipment industry in the 2022 S&P Global Corporate Sustainability Assessment. The company performed in the 99th percentile of its industry in the assessment, earning the third-highest score out of 287 companies. Along with this, the company scored well in other categories like Innovation, Business Ethics, Risk and Crisis Management, Supply Chain Management, Product Stewardship, Climate Strategy, Customer Relationship Management, Corporate Citizenship and Philanthropy, and Reporting.
Siemens Gamesa continues to remain a member of the Dow Jones Sustainability Index, which tracks the environmental, social and economic performance of leading sustainability-focussed companies in the world.
Its competitor company, Vestas, had an ESG score of 78 in the same assessment. However, it is interesting to note that earlier this year, Vestas has been named the most sustainable company in the 18th annual ranking of the world’s best sustainable corporations, as published by Corporate Knights. The performance of 6,914 companies was assessed on a range of sustainability metrics where it was found that top performers were setting the most ambitious carbon emissions reduction goals in their overall sustainability operations.
The company is also a member of the Dow Jones Sustainability Index for Europe. Moreover, Brookfield Renewable Partners, one of the leading clean energy infrastructure companies, scored an ESG score of 43 out of 100 in the same sustainability assessment.
Implementing sustainability has become a challenge, especially for wind turbine manufacturers, both due to inflation and the ongoing Ukraine war that has increased the prices of energy and other important raw materials such as steel, increase in production costs, and overall turbine manufacturing costs. However, all hope is not lost yet as companies are expanding their investments in wind and solar energy. According to a research by Allied Markets, the global wind turbine market size was valued at USD 53.4 billion in 2020 and is projected to reach USD 98.4 billion by 2030, growing at a Compound annual growth rate (CAGR) of 6.3% from 2020 to 2030. Also, the Global Wind Energy Council is aiming to achieve 380 GW of offshore wind by 2030 and 2,000 GW of installed offshore wind capacity by 2050 on the path to net zero emissions.
As a result, this will lead to significant opportunities to deploy turbines that will continue to spur growth in the sector. Perhaps, for now, the positives outweigh the negatives in wind, but there is still a lot of work to do to keep momentum blowing in the right direction, if we are to achieve global sustainability targets
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