With the race to become environmentally friendly and sustainable continuing, corporations are focusing on environmental, social, and corporate governance (ESG) issues. As social policies, regulations, and environmental worries are at the forefront, ESG has a broad, far-reaching impact on the environment and communities worldwide. All companies should pay attention. Keter, an Israeli-based company that manufactures resin-based garden and home products, is paying attention. Alejandro Peno, the company’s CEO, believes that Keter’s goal is not only to create value for shareholders but also to protect the community and environment. He also believes environmental, social, and governance efforts should go beyond simply an issue of doing business.
ESG (Environment, Social, Governance Impact)
Unlike some companies that view ESG efforts as a barrier to businesses, Alejandro Pena sees ESG as a competitive advantage and an opportunity to incorporate itself into the area it serves. Pena believes one of Keter’s pillars is to be an industry leader guided by technology and innovation. Several studies back up Alejandro Pena’s opinions, including one from Wharton School in Pennsylvania. This study found that customers are willing to pay more for services and products if they are produced sustainably. Another study conducted a couple of years ago showed that 34 percent of Generation Xers were willing to pay 10 percent more for sustainably produced services and products. Today, the number hovers around 90 percent.
Everday Sustainability Pledge
Alejandro Pena presented stockholders with an Everyday Sustainability Pledge. This pledge will be incorporated into the company’s manufacturing process as a guiding principle. Keter uses resin to make its goods, and Pena knows the risks associated with ESG pitfalls related to petroleum-based materials.
Last year, Keter significantly reduced its carbon footprint by driving efficiencies and using recycled polish and resin. With the world moving away from oil-based solutions, Alejandro Pena believes Keter can lead the industry in sustainability for itself and others.
Manufacturing and Energy Savings
Keter has 29 plants spread across North America, Israel, and Europe, making up much of the global community. The company produces many products where it sells them, thereby reducing transportation costs. Pena says 60% of production occurs within the region of consumption.