Implementing sustainable practices, cutting resource use, and optimising operations make today's change agents tomorrow's winners. While impactful efforts might be costlier initially, the long-term gains justify these investments
India is on a path towards sustainable development, aspiring to reduce carbon emissions, enhance energy efficiency, and adopt eco-friendly technologies. By 2030, the country aims to decrease the emission intensity of its GDP by 45%. As per government reports, India is progressing towards achieving net-zero carbon emissions by 2070.
In line with this mission, businesses of all sizes, from small enterprises to multinational corporations, are prioritising environmentally responsible practices. Brands are acknowledging their role in the larger ecosystem and are taking proactive measures to minimise their ecological footprint. More than a moral obligation, this move is inspired by the increasing demands from consumers, investors, and regulatory bodies for transparency and responsibility.
Long-term influence of sustainability on businesses
When it comes to sustainability, businesses need to stay vigilant and responsible. Brands must realise that adopting ecological practices will have a lasting impact, shaping their long-term success and resilience. They must navigate risks and seize opportunities, including enhanced reputation, new revenue streams, and improved risk management for business continuity.
As a step in this direction, businesses across sectors are aligning with the expectations of consumers, investors, and employees to embrace sustainable practices. According to PwC's 25th Annual Global CEO Survey, Indian CEOs see transitioning to a net zero commitment as an important factor in meeting customer expectations. However, sustainability affects more than just consumer mindset and penetrates other areas of business as well, such as:
Investor appeal
Integrating environmental, social, and governance (ESG) principles into business strategies is on the rise, with more emphasis on ESG risk management. As per Mckinsey & Company, survey, 85% of CIOs report that ESG factors influence their investment decisions. It is time for executives to step up and fully integrate ESG into their strategies. This move will help set them apart.
Competitive advantage
Consumers prioritise environmental responsibility when choosing a brand, with sustainability significantly impacting their preferences. As per a Deloitte study, 34% of consumers believe their trust in brands would increase if an independent third party recognised them as ethical or sustainable providers. Additionally, 32% expressed that having a transparent, accountable, socially, and environmentally responsible supply chain would enhance their trust in brands. Thus, businesses must integrate eco-friendly principles throughout their operations to stand apart from the competition.
Revenue growth
Implementing sustainable practices, cutting resource use, and optimising operations make today's change agents tomorrow's winners. While impactful efforts might be costlier initially, the long-term gains justify these investments.
Sustainable business practices in action
Many top executives acknowledge that sustainability and responsibility are more than an ethical stance; they are also smart business moves. Companies prioritising these values tend to show better financial performance, risk management, and customer loyalty.
In this scenario, digital technologies emerge as a solution that empowers industrial operators to optimise processes and boost energy efficiency.
India is confidently striding towards a greener future, driven by a commitment to combat climate change. As enterprises actively join this journey, industries are being reshaped for productivity and flexibility. This sustainable shift will enhance energy security, job opportunities, and the quality of life. The collective efforts of these enterprises promise a brighter and more sustainable future for the entire planet.
(Ajay Sharma, Director of IT & Payments, Pluxee India.)