At Domini, we conduct proprietary in-house research to evaluate the social and environmental performance of our investments. Our in-depth ESG research and our standards help create value not only for portfolios but for people and planet, too. During our research process, we uncover many innovative initiatives worth sharing.
Nearly every company today is or will be affected by climate change. As a result, companies are reassessing their priorities and shifting towards more climate-aligned business strategies. For example, companies are prioritizing strategies to better reduce their greenhouse gas emissions (GHGs), transition to more sustainable operations and supply chains, and create innovative solutions to help reduce their negative impact on the environment.
Advancing Sustainable Initiatives
Deere & Co., a U.S. agricultural, construction, forestry machinery, and technology company, regularly engages with their shareholders in order to improve their sustainability practices and undertake long-term climate transition planning. The company has set science-based goals to reduce its GHGs and move towards a low-carbon future. It has also put into place several operational and product enhancement initiatives to advance its commitment to sustainability. For example, the company allows its customers to repair their own equipment to reduce machinery and parts waste. Deere & Co.’s cutting-edge solutions like Intelligent Boom Control, a system allowing the user to better control its products’ energy efficiency, grade management, and road-building solutions, have seen adoption rates soar, signaling a shift towards more efficient and eco-friendly operations.
Enhanced Reporting & Strategies
Reporting plays a crucial role in a company’s business model transition, reflecting its commitment to providing transparency and accountability for its business. Robust reporting practices involve the use of progress charts, integration of business results and sustainability reports, reporting on climate strategies, and human rights risk assessments.
Deere & Co’s business model transition is also marked by strengthened compliance disclosures, or, in other words, enhanced climate transparency through reporting practices. For example, their Leap Ambitions strategy is meant to measure the economic and sustainability efforts that aim to improve agricultural outcomes and product circularity. Additionally, the company’s strategy involves strategically analyzing its supply chain data to identify opportunities for reducing GHGs. They particularly focus on energy-intensive industries critical to achieving circularity goals, where materials and resources are used more efficiently.
Leading a Greener Future
The urgency to mitigate climate-related risks and align operations with sustainable practices has spurred companies across the globe toward redefining their business models. Deere & Co’s proactive stance and commitment to sustainability initiatives, exemplified by their innovative strategies and enhanced reporting practices, showcase the leadership necessary for navigating this transition successfully.