Sustainability Is A Mindset

Sustainability is slowly becoming a way of life. It is no longer limited to talking about the environment. We see individuals and corporate leaders making changes to incorporate it into their way of being and living. Many of us are now quite conscious of how every action of ours impacts the community, humanity and the planet. 

India announced its target of achieving net zero by 2070 and the corporate sector, which is responsible for a significant amount of the energy consumption has pledged to do the work required. Several Indian corporate houses have set decarbonisation targets internally to become carbon neutral by 2050 or before. Reports suggest that while the intention is good but roadblocks such as lack of clear policy and technical framework along with high costs need to be addressed. Additionally, they might need to reconsider their supply chain planning, product innovation, and employee training. It is after all a combined effort, where even the top leaders of a company make sustainability a lifestyle and this requires a mindset change. Decarbonisation would help organisations enhance their reputation and garner increased investor interest.  

A 2023 WWF report on the net-zero roadmap for corporates in India shows that 46 per cent of companies have made climate commitments and 70 per cent of the companies report carbon emissions. Many companies have joined initiatives like SBTi, REDE, RE100 and Carbon Disclosure Project (CDP). 

The report highlights that for companies to develop a robust net zero action roadmap some key principles would have to be considered. An organisation must evaluate the nature of its business, type of emissions, understand technology needs and the policy framework before drawing up a viable decarbonisation plan. Add to this, proper metrics for measurement and recording of efforts towards this goal is needed. The scale of the business, financial viability and investor interest also needs to be understood. 

Further, it would need to assess social, financial and the environmental impact of any transition across supply chain, business teams and stakeholders. Appropriate reskilling programmes for the workforce would have to be thought through, if needed. And, collaboration with industry bodies and think-tanks for sharing expertise and optimal implementation. 

ESG Reporting 

Sometime back the Securities and Exchange Board of India (Sebi) mandated Environmental, Social, and Governance (ESG) reporting and declaration by listed companies FY23 onwards. A recent report by CareEdge Research states that ESG reporting by Indian corporates has improved by 160 per cent, this was arrived at after analysing reports of 1,000 listed entities over the last three fiscal years. Some findings from the report suggest that the Energy and Utilities sector saw close to 50 per cent companies reporting on ESG parameters. Companies in the Materials sector have shown an improvement with the average ESG performance improving by 20 per cent in the last three fiscal years. Industries such as Steel, Cement, and Mining, which have traditionally been heavy emitting industries are now adopting green initiatives to align with their long-term ESG goals. 

BW Businessworld IMSC

The BW Businessworld Study on India’s Most Sustainable Companies undertaken in partnership with Sustain Labs Paris is an effort to put the subject front and centre.   The aim for us is to address the pain points and also to highlight the victories on this journey. We have undertaken an in-depth study of how corporates are advancing towards their sustainability goals based on various parameters. Conversations with subject matter experts from across sectors helped us in putting together this report. 

Ranked among the top 10 in the study, Godrej Consumer Products (GCPL) has reduced specific energy consumption by 33 per cent and increased its renewable energy portfolio to 29.4 per cent. By FY2025-26, the company is committed to reduce greenhouse gas (GHG) emission intensity by 45 per cent. Additionally, the company boasts a high level of women empowerment with 41.67 per cent representation of women on the Board of Directors. 

Tech Mahindra, the IT services and consulting company has achieved more than 95 per cent of its energy consumption in the Bengaluru location from the renewable energy mix. In Bengaluru, the company has saved 16.69 million units of electricity, reducing 13,184 MTCO2e of Scope 1 and 2 emissions, leading to annual savings of grid cost of Rs 55,500,104. Further, the company has a strong focus on responsible and enduring business growth. The company aims to become carbon neutral by 2030 and has developed a roadmap to achieve net zero target before 2040. It also aims to reduce Scope 1 and Scope 2 emissions by 59 per cent by 2030.

Read on ahead for details.