CGI';s 2023 ESG Report highlights progress through responsible innovation
- CGI demonstrates a 43.7% total energy usage from renewable sources, surpassing the previous year's percentage.
- The company achieved a 38% reduction in CO2e emissions since 2019 and decreased carbon intensity per employee by 47.5%.
- 28.6% of leadership positions at CGI are held by women, showing an increase from the previous year.
- CGI's commitment to modern slavery eradication is highlighted through the publication of its global statement on the issue.
- 65% of CGI's major suppliers were evaluated based on environmental and social criteria, indicating a focus on responsible sourcing.
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Insights
CGI's commitment to aligning with the Science Based Targets initiative (SBTi) represents a strategic move towards sustainability that could potentially mitigate operational risks associated with environmental regulations and climate change. By increasing renewable energy usage to 43.7% and reducing CO2e emissions by 38% since 2019, CGI is not just improving its environmental footprint but also enhancing its appeal to sustainability-focused investors and clients. The company's achievement of a Platinum rating from EcoVadis for the second year in a row indicates robust sustainability practices, which can be a differentiator in competitive bidding processes.
However, transitioning to renewable energy and reducing emissions often requires significant capital expenditure. While this is likely to have a positive impact on CGI's long-term operational costs, there is a possibility of short-term financial impacts due to these investments. The company's ability to support clients in achieving their ESG goals could open new revenue streams but will also necessitate continuous innovation and adaptation to emerging technologies.
The progress CGI has made in social and governance aspects, such as increasing the percentage of leadership roles held by women to 28.6% and board representation to 40%, reflects a commitment to diversity and inclusivity. This could enhance decision-making and potentially improve company performance, as diverse leadership has been linked to better financial outcomes. The publication of CGI's first global statement on modern slavery also demonstrates a proactive approach to ethical issues, which can be critical for maintaining a company's reputation and license to operate.
From a governance perspective, the increase in supplier assessments on environmental and social criteria, from 58% to 65%, indicates a comprehensive approach to risk management. By ensuring suppliers adhere to certain standards, CGI is not only reducing its own risk profile but also leveraging its influence to promote sustainability throughout its supply chain.
The recognition from CDP as an outperformer in the IT and software sector and across all rated companies in North America could provide CGI with a competitive edge in the market. As ESG factors become increasingly important to investors, CGI's strong performance and transparency in environmental and social initiatives might attract investment and improve its stock market valuation. The company's ESG report could serve as a valuable communication tool to inform stakeholders of its progress and future commitments.
However, it is essential to monitor the balance between the costs associated with implementing these initiatives and the potential revenue growth from ESG-related services. The market will likely scrutinize whether CGI's ESG strategy translates into tangible financial benefits and whether it can maintain its competitive position while adhering to these commitments.
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New commitment to align with Science Based Targets initiative (SBTi)
For the second consecutive year, CGI achieved a Platinum rating from EcoVadis for its Sustainability Performance, placing the company in the top
Environment
43.7% of total energy from renewable sources compared to35.6% in 2022; this includes reaching CGI's target to power100% of its data centers by renewable electricity.38% reduction of CO2e emissions from 2019, and reduced carbon intensity per employee by47.5% .
Social
28.6% of leadership positions are held by women, compared to27.5% in 2022.44.4% of Strategic Business Unit Presidents are women, compared to33.3% in 2022.40% of members of the Board of Directors are women, compared to31.3% in 2022.
Governance
- Publication of CGI's first global statement on modern slavery reiterating the company's commitment to tackling forced labor, child labor and human trafficking.
65% of CGI's most significant suppliers were assessed on environmental and social criteria, compared to58% in 2022.
To read CGI's full 2023 ESG Report and to learn more about the company's initiatives, visit cgi.com/esg.
Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With 90,500 consultants and professionals across the globe, CGI delivers an end-to-end portfolio of capabilities, from strategic IT and business consulting to systems integration, managed IT and business process services and intellectual property solutions. CGI works with clients through a local relationship model complemented by a global delivery network that helps clients digitally transform their organizations and accelerate results. CGI Fiscal 2023 reported revenue is
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SOURCE CGI Inc.
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