Corporates will indeed play a crucial role in this mission, as they possess the resources, innovation, and influence to drive sustainable practices across industries, accelerate the transition to renewable energy, and adopt eco-friendly technologies, thus contributing to India's carbon neutrality goal and global efforts to mitigate climate change
Environmental, Social, and Governance (ESG) practices in India are rapidly transforming from a niche set of actions to an integral part of businesses and corporate reporting. According to a 2023 CareEdge Research report, ESG reporting by Indian corporations has improved by 160 percent.
Regulatory authorities like the Securities and Exchange Board of India (SEBI) and the Ministry of Corporate Affairs (MCA) deserve credit for boosting ESG focus. SEBI has made ESG disclosures mandatory for the top 1,000 listed companies by market capitalisation as per the Business Responsibility and Sustainability Reporting (BRSR) framework for FY23. MCA, in fact, set the ball rolling by formulating Business Responsibility Reporting (BRR) guidelines in 2009, which, experts feel, acted as a foundation for developing broader ESG reporting guidelines.
Across a cross section of Indian enterprises, one can see a growing shift towards proactive ESG measures. LTI Mindtree has developed robust environment management systems and processes to continuously monitor, measure, and reduce the environmental impact of all their business operations and set a goal to become net-zero by 2040.
Hindustan Unilever Ltd. is focusing on sustainable packaging by reducing the use of virgin plastics and replacing them with post-consumer recycled plastic. Infosys is adopting clean technology in its operations and client solutions to minimise the impact on the environment. Dow India is working towards developing a circular economy and sustainable chemical innovations. Tata Steel is aiming for no net loss of biodiversity by FY30.
India's Long-Term Low Emissions Growth Strategy presented at COP27 is a significant step towards addressing climate change. By outlining plans in key economic sectors through Long term low-emission development pathways and development priorities (LT-LEDS), India demonstrates its commitment to reducing greenhouse gas emissions and achieving sustainable development.
The pledge to achieve Net Zero by 2070 underscores India's recognition of the urgency of combating climate change. Corporates will indeed play a crucial role in this mission, as they possess the resources, innovation, and influence to drive sustainable practices across industries, accelerate the transition to renewable energy, and adopt eco-friendly technologies, thus contributing to India's carbon neutrality goal and global efforts to mitigate climate change.
While reducing carbon emissions and protecting the ozone layer are certainly critical components of ESG initiatives, they are not the sole focus. ESG encompasses a broader framework that emphasises the integration of environmental, social, and governance factors into business operations to create long-term sustainable value.
This entails integrating environmental stewardship, social responsibility, and effective governance practices into the core business strategy. Environmental sustainability involves minimising ecological footprints and promoting resource efficiency. Social responsibility extends to fostering diversity, equity, and inclusion, as well as supporting community development and human rights. Effective governance leads to transparency and accountability.
By prioritising ESG principles, businesses can not only enhance their long-term financial performance but also contribute positively to environmental conservation, social well-being, and overall societal progress.
Ultimately, ESG is about aligning business practices with the needs and expectations of various stakeholders, thereby fostering sustainable growth and value creation for both the company and society.
The global inequalities in CO2 emissions are a much researched and written about topic. While one cannot go back in time, the learnings are relevant for us as we craft the way ahead and reiterate our responsibility for the future.
There is an urgent need to cultivate an aspirational culture around sustainable consumption and relinquishing carbon space, especially in developed nations. Businesses and brands can play a crucial role in influencing and promoting sustainable consumption, even as they focus on growth.
India has the opportunity to lead by example in ESG implementation and reporting, particularly for developing nations. Achieving this requires corporations to navigate the complex balance between growth and sustainability. While prioritising economic expansion is crucial for development, integrating environmental, social, and governance considerations into business strategies is equally vital for long-term resilience and progress.
This entails fostering innovation, adopting sustainable practices, and engaging stakeholders to ensure inclusive growth that benefits both the company and society. By embracing this challenge, India Inc. can demonstrate that sustainability and profitability are mutually inclusive, setting a compelling precedent for global sustainability efforts.
(Suresh Kumar R, is the Managing Director of Allcargo Terminals Limited.)