Table of Contents
Executive Summary................................................................................................................................. 3
1. Introduction to NVIDIA Corporation ............................................................................................... 3
2.1 Theoretical Concepts ................................................................................................................ 3
2.2 The Social Component of ESG ................................................................................................... 4
3. NVIDIA's Social Performance Assessment ...................................................................................... 4
3.1 Workforce Diversity, Equity and Inclusion ................................................................................ 4
3.2 Competitive Position ..................................................................................................................... 6
3.3 Board Composition and Independence .................................................................................... 6
3.4 Supply chain management and human rights ............................................................................. 7
3.5 Community Impact and Social Innovation ................................................................................... 8
3.6 Social Controversy Valuation of Nvidia ......................................................................................... 8
3.7 ESG Ratings and Benchmarks....................................................................................................... 8
3.8 Change in Response to Political Climate ...................................................................................... 9
Sustained Pledges: .......................................................................................................................... 9
Adjustment Areas: .......................................................................................................................... 9
4. Analysis: Is NVIDIA Socially Responsible? ......................................................................................... 10
4.1 Strengths ..................................................................................................................................... 10
4.2 Weaknesses ................................................................................................................................ 10
4.3 Social-Washing Assessment ........................................................................................................ 10
5. Theoretical Alignment Assessment................................................................................................... 11
Alignment with Stakeholder Theory ................................................................................................. 11
Position on Shareholder Theory ....................................................................................................... 11
Balance Under the Triple Bottom Line.............................................................................................. 11
Implications for Socially Responsible Investors ................................................................................ 11
7. Inclusion of Nvidia Corp in ESG-focused portfolios .......................................................................... 12
References ............................................................................................................................................ 13
Executive Summary
Using social initiatives, relationships with stakeholders, diversity programs, and board composition as
points of evaluation, this report assesses NVIDIA Corporation’s social performance. In short, NVIDIA
can be regarded as being moderately to strongly socially responsible, based on extensive research,
although improvements may occur. Measurable progress can be shown on quantifiable metrics in key
areas, and the firm is not simply 'social washing', but rather committed to being socially responsible.
Nevertheless, however, board diversity and gaps in certain social impact disclosures exist.
1. Introduction to NVIDIA Corporation
NVIDIA Corporation started as a Graphics Processing Unit (GPU) manufacturer to build itself into the
global leadership position in artificial intelligence (AI) and high-performance computing and graphics
solutions that began operations in 1993. Markets now recognize NVIDIA as a business with exceptional
value due to its market capitalization exceeding $2.5 trillion in early 2024.
The company expands its business through different market sectors.

The company operates across three main business areas including Gaming and Professional
visualization together with AI computing platforms.

NVIDIA provides Cloud computing and AI infrastructure through its Behind data centre
solutions platform.

Autonomous Vehicle System driving Technology

The platform for developing and deploying AI solutions exists within specific software
environments.
Society's increasing dependence on NVIDIA's technologies makes the company's ESG performance
progressively vital for stakeholders as well as investors.
2.1 Theoretical Concepts
2.1.1 Stakeholder Theory
According to Stakeholder Theory (Freeman, 1984) Companies must deliver value to every community
affected by business activities including their workforce and their customer base as well as
environmental constituents. The approach asserts that business responsibility encompasses more
than financial gains and concentrates on meeting the requirements of every group with ties to
company operations.
2.1.2 Shareholder Theory
Friedman (1970) establishes Shareholder Theory where profit maximization through shareholders
represents the main duty of any corporation. This doctrine mandates executives to use social
initiatives only when they improve shareholder value execution and shareholders recognize the agents
who optimize financial performance.
2.1.3 Triple Bottom Line (TBL)
Under Triple Bottom Line framework (Elkington, 1997) organizations embrace the core values of
people, planet and profit in their sustainability strategies. The establishment of strong performance
across these bottom lines helps ensure meaningful effects for people and the environment and
financial sustainability. People include workforce fairness together with benefits to society and ethical
business practices under the social performance category.
2.2 The Social Component of ESG
The "S" portion of ESG represents the evaluation of the relationship between corporations and the
staff, providers, clients, and communities. These crucial measurements include workforce practices
including diverse representation, equitable pay and safe working environments, protection of human
rights along the inventory network, product safety protection and safeguarding of consumer
information, community involvement as well as the addressing of social issues. Lastly, societal
outcomes of their creations for technology giants such as NVIDIA where social ratings are concerned
— such as the ethics controversies surrounding artificial intelligence, and whether or not advanced
technologies will exacerbate digital gaps — and social ratings of individual online privacy are both
taken into account. (Yeung, 2019)
3. NVIDIA's Social Performance Assessment
3.1 Workforce Diversity, Equity and Inclusion
Diversity, Equity and Inclusion is a must in order to foster a workplace of diverse points and
backgrounds. Diversity and equality; the company innovates and provides the means to show
the company’s commitment to social responsibility.
NVIDIA Workforce Diversity Trends (2021-2024)
Category
Gender (Global)
Women Overall
Women in Tech Roles
Women in Leadership
Race/Ethnicity (US Only)
Underrepresented Minorities
Black/African American
Hispanic/Latino
Asian
White
2021
2022
2023
2024
18.70% 19.60% 20.50% 22.60%
15.80% 16.80% 17.90% 19.20%
16.50% 17.60% 18.90% 20.50%
6.90% 7.60% 8.40% 9.70%
2.00% 2.30% 2.50% 2.80%
4.10% 4.50% 4.80% 5.10%
39.50% 40.80% 41.90% 44.30%
49.20% 46.50% 44.10% 41.20%
Figure 1 NVIDIA Workforce Diversity Trends (2021-2024)
From 2021 to 2024, NVIDIA maintained consistent year after year improvement in all diversity metrics.
•
Overall, in 4 years, women representation increased by 3.9 percentage points
•
Representation of underrepresented minority grew by 2.8 percentage points
The trends are on the rise but improvement has not been transformational, rather 1 to 2 percentage
point improvements a year in almost all categories. (NVIDIA,2023a)
NVIDIA's 2024 Key Metrics:
• Women: 22.6% worldwide (19.2% in the technical and commercial roles)
•
Minorities which are Under-represented in (US): 9.7%
•
Africo-American: 2.8%
•
Hispanic American: 5.1%
Metric
Women (Global)
Women in Tech
Underrepresented minorities (US)
Black/AA (US)
Hispanic/Latino (US)
NVIDIA
22.60%
19.20%
9.70%
2.80%
5.10%
Figure 2 Comparison with Competitors (2024 data)
Intel
29.20%
25.10%
13.60%
5.20%
7.00%
AMD
25.80%
22.30%
10.90%
3.60%
5.80%
Key Initiatives:
• The company has established quantitative targets aimed at increasing female participation in
technology fields to reach 25% by 2025.
•
Double Black employees by 2026 (from 2021)
•
Women receive salaries equivalent to 99.7% of male workers throughout the world.
The NVIDIA 2023 CSR report contains numerous aspirational statements where the organization
declares plans to enhance its positive reputation although they do not provide specific measurable
targets. The company's approach raises questions about social-washing because it lacks exact targets
which can be compared with organizations that report measurable objectives together with fixed
timeframes.
Through its 2024 sustainability report the organization established detailed representation
benchmarks to achieve 25% engineering positions by women by 2025 and to double Black/African
American staffing numbers in the U.S. relative to 2021 baseline by 2026.
3.2 Competitive Position
The workforce diversity metrics demonstrate additional growth at NVIDIA since the corporation shows
lower diversity rates than Apple (25.8%) and Google (24.9%) in terms of women working in technical
fields.
NVIDIA has continued developing its diversity initiatives since 2019 into 2024.
•
Eight employee resource groups (up from six)
•
Expanded partnerships with organizations like Rewriting the Code and Out in Tech
71% of NVIDIA managers have undergone new inclusive leadership training sessions. Women earn
99.7% of male salaries at NVIDIA when performing identical duties. (NVIDIA, 2024a)
3.3 Board Composition and Independence
The company demonstrates its dedication to diversity and inclusivity through the 13 members of its
Board of Directors in November 2024.
Gender Diversity: 4 women (30.8%)
Racial/Ethnic Diversity:
2 Asian directors (15.4%)
1 African American director (7.7%)