Regenerative Approach Vital To Align Sustainability In India’s Growing Economy: Study

Amid the growing concerns about the climate change crisis, a study by global management consultancy Kearney has stated that a regenerative approach is essential to align sustainability ambition and action in India’s growing economy. The report revealed that about 52 per cent of the businesses have decarbonisation plans that are acutely aligned with the Paris Agreement.

Kearney's Asia Pacific study on sustainability and beyond added that the majority of Indian companies (92 per cent) believe that the targets of the Paris Agreement are attainable. While Asia-Pacific businesses are optimistic about achieving their decarbonisation targets, India is at the forefront of leading the region towards achieving net zero. 

However, decarbonisation goals often fail to align with the Paris Agreement, signalling a mismatch between the pace of company aspirations and global objectives aimed at limiting global warming to 1.5°C. The majority of businesses in India (71 per cent) believe that enhanced technologies would accelerate their decarbonization initiatives, with the highest in Thailand (76 per cent) and Malaysia (73 per cent).

Additionally, over half (57 per cent) consider support from the government crucial for expediting decarbonisation efforts, with the Philippines ranking the highest (63 per cent) followed by Singapore (58%) and India (57 per cent). India had the highest number of leaders (69 per cent) suggesting the need for a better ability to measure emissions.

On the path to meeting their goal to achieve net zero emissions by 2070, 91 per cent of Indian businesses have set targets to reach net zero, however, the 2030 deadline the country has set for itself seems unrealistic. It revealed that to achieve progress on the sustainability front, Indian companies need to adjust strategies and set achievable timelines.

In India, the pursuit of broader sustainability objectives also experiences hurdles such as complexities in overcoming technical challenges (65 per cent), limited capabilities including the quality and quantity of resources (63 per cent), and businesses frequently grappling with the challenges of cross-team collaboration (57 per cent). 

To overcome these obstacles, there is a clear need for improved understanding by Board members; only 37 per cent of respondents strongly agree that sustainability trends are well understood by their Board members and executive teams.

Arun Unni, Partner and APAC Sustainability Co-lead, Kearney said, “Energy transition is not just a challenge but presents one of the greatest investment opportunities in the coming decades. It is positive to see businesses across the Asia Pacific actively setting targets for achieving net zero."

However, Unni added that these targets need to be aligned with global standards, even if the approach is highly local. If timed right, not only can they harness the full benefits of clean energy technologies and energy-efficient practices, but they can also add significantly to their bottom lines and valuations.

Greenwashing fears fuel sustainability investment, but sustainability is still seen as a business cost rather than an opportunity. Concerns about greenwashing are prompting companies to invest more in sustainability, 86 per cent say that greenwashing concerns have motivated their organization to increase investment in sustainability resources and capabilities. 

However, the study also found that 78 per cent say it has made their organisation more hesitant to discuss sustainability plans publicly. 87 per cent of leadership in India has expressed concerns about greenwashing. 

To tackle this issue, business leaders in India are motivated to change their approach towards more conscious supplier and partner arrangements (92 per cent), more cautious in emissions management plans/target setting (92 per cent) and tighten sustainability policies and processes (91 per cent).