For the global manufacturing industry, Environmental, Social and Governance (ESG) reporting can be particularly complicated and cumbersome given the often extensive portfolio of international sites requiring monitoring and auditing. Increasingly organizations are utilizing sustainability software, such as Envizi, to help consolidate and navigate their ESG data and to overcome these reporting obstacles.
Celestica, a leader in design, manufacturing, and supply chain solutions for the world’s most innovative companies has over 20,000 employees worldwide. Providing end-to-end product lifecycle services from product design through to end-of-life management, Celestica supports a range of markets including Aerospace and Defense, Communications, Enterprise, HealthTech, Industrial, Capital Equipment, and Energy.
Celestica is known for its ability to bring global expertise to every stage of product development – from the drawing board to full-scale production and after-market services.
Sustainability leadership across Celestica
Based out of their head office in Toronto, Canada, Jessica Peixoto is a Sustainability Manager who has been instrumental in managing the organization’s greenhouse gas (GHG) emissions reductions strategies, whilst also overseeing Celestica’s comprehensive reporting requirements.
“This includes working with our global facilities to reduce energy usage and implement renewable energy, and to track our environmental data using Envizi,” says Peixoto.
Peixoto has been involved in a number of exciting sustainability projects with Celestica, but some highlights include implementing a Science-Based Target, increasing the use of renewable energy in its facilities, and participating in the United Nations Global Compact.
She plays a crucial role in disseminating Celestica’s data into actionable results, having been recognized as a ‘Top 30 Under 30 Sustainability Leader in Canada’ by Corporate Knights in 2019. This commitment to advancing Celestica’s journey is shared company-wide, with Celestica having integrated sustainability into all aspects of the business for over 10 years.
Peixoto notes that most recently this has been reflected in the implementation of sustainability objectives into its senior management levels, including ESG oversight within the Nominating and Corporate Governance Committee on the Board of Directors.
Describing these initiatives as major milestones, Peixoto explained that:
“This governance model will trickle down into each team, tying sustainability into all aspects of the business.”
C-suite involvement in an organization’s decarbonization and sustainability journey is experiencing a sharp upward trend, as we outline in the State of ESG Reporting and Performance report. Executives are now actively involved in setting strategic priorities for the organization’s sustainability efforts alongside Sustainability Managers – a welcomed approach indicating the urgency to deliver increased emissions reductions.
This corporate leadership and Celestica’s company-wide commitment to driving sustainability has also earned Celestica a top 5 spot in the Corporate Knights ‘Best 50 Canadian Corporate Citizens’, a significant accomplishment that sees them ranking ahead of other organizations across different industries based on 21 indicators.
Celestica's 2020 sustainability highlights
Transforming the reporting process
From manual data entry to now ranking highly on an award-winning sustainability business publication, Celestica has significantly transformed its sustainability efforts including its reporting processes.
Global data for its many facilities were once gathered and captured in spreadsheets, where calculations needed to be done manually noted Peixoto:
“This was many years ago, but it seems like there were many errors. It was a very tedious process.”
Sustainability reporting software has helped streamline the whole process. In particular, Celestica found reporting has been made easier through well-organized emissions factors and useful outputs such as emissions totals and reporting on different waste streams.
“For us, without the software, we would have to collect data from all around the world, in different units, and compile it manually. Now, individuals at each of our sites can input data into Envizi and have it compiled and transformed into usable outputs. It is very easy to make mistakes on your own, so data management software helps alleviate some of those errors.”
Data management and accuracy is a relatable challenge for many sustainability managers who are accountable for internal reporting but also external reporting frameworks. Sustainability software eliminates this challenge by automating complex calculations, so organizations can focus their efforts on other activities such as target setting and other strategic priorities.
Peixoto is doing just that by focusing on setting targets and completing their latest sustainability report detailing Celestica’s strategies and aspirational sustainability goals which include:
- Reducing absolute Scope 1 and Scope 2 GHG emissions by 30% by 2025 from a 2018 base year.
- Reducing absolute Scope 3 GHG emissions from fuel and energy-related activities purchased goods and services, and upstream and downstream transportation and distribution 10% by 2025 from a 2018 base year.
ESG challenges in manufacturing
The manufacturing industry has some unique sustainability challenges such as the use of large industrial equipment and necessary HVAC systems, as well as supply chain logistics emissions and material waste.
“Aligning with the UN Sustainable Development Goals and reporting frameworks like the GRI, SASB, and TCFD, all help to make companies more transparent and work to solve many of the issues faced globally,” Peixoto explains.
The future of ESG & sustainability reporting
For the manufacturing industry, ESG and sustainability are just getting started. Peixoto foresees an increased focus on energy efficiency and a greater reduction of GHG emissions.
“There will be more renewable energy options at sites, but also a need to manufacture more items for the EV industry and other smart energy products,” says Peixoto.
Just as important are the other elements of ESG, besides sustainability. For example, diversity and inclusion are having an increased focus for Celestica and the industry as a whole, which will continue to drive the agenda for change.
Peixoto’s advice for other sustainability leaders is simple: stay passionate and keep learning.
“The science, strategies, and standards within the sustainability/climate change realm are constantly evolving, so it is important to keep growing your knowledge base and your organization’s initiatives. But it’s just as important to maintain a passion for what you do.”
To view Celestica’s latest Sustainability Report, please visit their website.
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