Sustainability for 60% of Indian companies is driven by regulatory threat: study

As a country, this can affect our Gross Domestic Product (GDP) growth and even exacerbate our already plummeting poverty rates. India is also the third largest emitter of CO2 after China and the United States. As the country gains power in the world order and becomes one of the fastest growing economies in the world, the next phase of growth must be planned with sustainability built into its very fabric.

The good news is that the winds of change are coming. Today, sustainability has become a central topic of discussion in business boardrooms that cut across industry lines, and the general consensus is that sustainability and profitability can coexist. A recent study by Oxford Economics and SAP (NYSE: SAP) revealed that Indian companies today recognize the potential of sustainability to unlock business value, with 62% of companies saying that it is not difficult to be sustainable and profitable at the same time. . .

“It is a positive sign that Indian organizations believe that it is viable to improve profits and protect the environment at the same time,” he said. Kulmeet Bawa, President and CEO, SAP Indian Subcontinent.

The study has also revealed that while the importance of sustainability is well understood, much work remains to be done to ensure that sustainability ambition is translated into action. The study found that only 17% of respondents have calculated their total organizational carbon contribution. More importantly, of the organizations that have acted on a sustainability strategy, only 7% receive significant value from it.

“The use of technology can help us strategically to help companies realize real, genuine and measurable business value. At SAP, we are dedicated to enabling companies of all sizes and industries to achieve their sustainability goals,” he added.

Regulatory compliance is both a key factor and a challenge
However, the main driver of sustainability initiatives remains regulation. In the study, around 60% of respondents from India indicated that regulatory mandates are the main drivers of their sustainability strategies. This aligns with the fact that regulatory compliance (45%) is the top benefit derived, ahead of reduced carbon emissions and increased operational visibility.

While organizations may need to refocus their strategies to achieve greater value from sustainability, an excessive focus on compliance is not good either. The study cited this as the third biggest challenge to sustainability success by Indian respondents.

Data is the main gap in going green
While access to accurate and detailed data throughout the business value chain is critical to maximizing sustainability results, only about 44% of respondents said they have invested in data analytics to measure sustainability in their business. . In another 43% said cases, they were training staff on how to capture sustainability data.

Organizations must go beyond driving transparency for legal compliance to expand sustainable practices through industrial trade networks and value chains. To do this, they must use technology to collect data, optimize business processes, and make more sustainable business decisions.

The role of leadership is essential to drive progress
Business leaders must lead by example by clearly engaging with key stakeholders such as employees, supply chain partners and policymakers on how to harness the transformative power of technology and data management to build a stronger business. smart and sustainable

Senior leadership can play a critical role in engaging and driving their companies through a sustainable transformation by setting clear paths and goals. However, only 22% of companies have incentivized leaders based on the success of the sustainability strategy and only half (52%) say their employees are active participants in their sustainability efforts.

“Sustainability leaders go beyond vision to ensure sustainability initiatives are acted on,” he said. Edward Cone, Editorial Director, Oxford Economics. “They communicate with key groups both inside and outside the company, and use embedded technologies to measure and track performance in a way that drives accountability.”

You can click here to access the full report.

conclusion
Sustainability ties directly to SAP’s purpose of helping the world run better and improving people’s lives. SAP’s efforts are focused on helping create a sustainable future for the Asia Pacific and Japan region, customers, and society at large by bringing together social, environmental, and economic performance.

SAP has a portfolio of sustainability solutions to help companies incorporate operational, experiential, and financial data and information to drive sustainability at scale. SAP is also working to become carbon neutral in its own operations by 2023, and will be carbon neutral across our entire value chain, what we call Scope 3 emissions, by 2030. Past 15-year software company index.

Disclaimer: This item has been produced on behalf of the brand by HT Brand Studio.

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