How working with the right manufacturer improves your ESG profile

Environmental, social, and corporate governance (ESG) increasingly impacts how brands are perceived by customers. As such, ESG plays an ever more important role in maintaining customer loyalty and providing businesses with investment prospects. Indeed, more than 60% of customers are now basing their purchasing decisions on how sustainable and ethical a brand is, and this is growing by 10% every year, according to consultancy PwC.

Having strong ESG practices in place will benefit many aspects of businesses, so it’s hardly surprising that ESG requires a multi-faceted approach across the entire organisation. Every process needs to be carried out with a consideration of its wider environmental and social impact.

Naturally, this includes security, where the video technology you invest in, and the manufacturers that you partner with, can have a tangible impact on your ESG efforts – and what you must report back to stakeholders.

Partner with the right vendors

Your choice of vendors and supply chain will influence many parts of your ESG profile. When it comes to video technology manufacturers, they are not all the same – and many don’t place sufficient emphasis on sustainable or in-house manufacture, ethical supply chains, or reducing energy and waste, for example. Having control over the entire design and production process allows a manufacturer to adhere to design and specifications throughout manufacture, ensure product quality is consistent, and build resilience in the supply chain. Those who simply relabel products manufactured elsewhere cannot do this.

Working with a reputable manufacturer like Hanwha Vision can support your ESG efforts through the use (and transparent declaration) of sustainable manufacturing operations, ethical supply chains and lower energy usage.

Sustainable and resilient in-house manufacturing

At our Vietnam-based smart factory, all manufacturing environments and equipment are managed in an integrated way for efficiency. Solar panels deliver sustainable electricity to the plant and help reduce energy consumption, for example.

Hanwha Vision operates a green purchasing strategy, prioritising products with minimal energy and raw material resource impacts. Production materials are carefully selected to aid in disassembly and recycling. During manufacture, device authentication is inserted in each product, ensuring trusted cybersecurity.

We continue to build on our ESG efforts by optimising water and energy use. Our sustainability report shows that energy consumption fell between 2021 and 2022, while renewable energy use has accounted for a greater proportion of our total energy mix year-on-year. Our water use and wastewater creation are down, along with air pollutant emissions, for the same period.

Making a difference

Hanwha Group participates in the World Economic Forum’s Center for Nature and Climate, and is a member of three of its initiatives: the First Movers Coalition, the Circular Transformation of Industries, and Respectively, these aim to help decarbonise the world’s heavy-emitting sectors, promote a circular economy that minimises waste and encourages the sustainable use of natural resources, and conserve, restore and grow a trillion trees by 2030. Through these and other initiatives, the Hanwha Group is working to drive sustainability through innovation and the power of partnership.

Supporting your ESG efforts

That partnership extends to Hanwha Vision customers and users. That’s because partnering with an ESG-focused manufacturer such as Hanwha Vision can provide you with ongoing environmental gains and innovation. Our research and development team focuses on sustainable product development, with recent innovations including Edge AI, low-light technology, and SolidEDGE cameras as a serverless VMS option to enhance energy efficiency. Systems that use less energy contribute to your ESG bottom line.

Cybersecurity and responsible use

Beyond this, the security and responsible use of video also fall into ESG reporting. A robust cybersecurity strategy for collecting and storing video data is critical. Investing in cameras and other connected devices that have certifications, such as UL CAP, and are compliant with the US National Defense Authorization Act (NDAA) provide peace of mind that your video system is as protected as possible against cyber threats.

If you are impacted by forthcoming NIS2 legislation, it is important to work with a manufacturer that is NIS2 ready. EU member states are expected to comply with NIS2 by October to meet specific measures aimed at improving the cybersecurity of network and information systems. Also important is compliance with the EU’s CRA regulation, which sets minimum cybersecurity requirements for products such as video cameras.

Finally, it is important to work with a manufacturer that ensures that even products that have reached the end of their line continue to be updated to remain cyber-secure.

The security industry’s ESG efforts will be under increasing scrutiny in the coming years as climate change and AI put the spotlight on environmental and social practices. Gathering information on your supply chain ESG efforts, such as your vendors, will ensure you can answer stakeholders when they inevitably ask how your organisation is making a positive impact on society and the world.