Indian businesses are increasingly seeing financial benefits from sustainability, according to a new SAP study.
Environmental activism (45 per cent) is the biggest motivating factor for organisations to take environmental action, with revenue and growth opportunities (34 per cebt) and customer demand (33 per cent) trailing behind. Yet Indian organisations risk losing out if they are unable to place data at the heart of their sustainability strategy.
"If India is to advance towards a more sustainable future, businesses must do their part and embrace sustainability as a holistic approach to get there," said Kulmeet Bawa, President & Managing Director, of SAP Indian Subcontinent. "It is clear that sustainability is no longer about brand reputation or ethics - there is a defined connection between profit and purpose.”
The global environmental sustainability study of 6500+ business leaders, including 400 from India, is the second edition of SAP’s annual report, which explores the motivations and barriers organisations face as they look to boost sustainability in their companies.
At least 37 per cent of Indian businesses say a lack of environmental strategy is holding them back, on the other hand, 35 per cent of respondents point towards difficulty proving a return on investment.
Nearly 31 per cent of businesses rely solely on assumptions and estimates to assess the environmental impact of their supply chain. 46 per cent of businesses say they don’t have complete visibility over the sustainability metrics of their external supply chain.
With 59 per cent of Indian leaders agreeing, it is now widely acknowledged that environmental action and profitability are positively correlated. Almost half (48 per cent) of Indian businesses now believe addressing environmental issues will be material to business results within the next five years.