For far too long, sustainability has been relegated to the sidelines, not only within India but globally. However, there has been a noticeable shift in mindset, with companies increasingly recognising the pivotal role sustainability plays. About 86% of Indian organisations see a moderate to strong relationship between sustainability and their organisation’s profitability and are boosting their investments as a result, according to a survey undertaken by SAP.
“The Asian market represents more than 50% of the world’s emissions, and so as one of the fastest-growing hotbeds of innovation and economic activity in the region, India is in a unique position to lead the charge against climate change. It is an encouraging sign that more and more Indian organisations recognise this and are ready to embrace it,” said Paul Marriott, President, SAP Asia Pacific Japan.
The report highlights that 77% of Indian businesses have witnessed sustainability strategies contributing to outcomes such as revenue or profit growth to a moderate or strong degree. Similarly, 84% of Indian respondents saw a moderate or strong increase in the efficiency of business processes from sustainability activities. Also, 58% of Indian businesses expect a positive financial return on their sustainability investments within the next five years. In India, 39% of businesses intend to increase their investments in sustainability over the next three years.
The key challenges highlighted for the slow adoption of sustainability adoption happen to be the lack of an environmental impact strategy, uncertainty due to the COVID-19 pandemic, a clear direction on embedding sustainability into business processes and IT systems, and a shortage of expertise.
“Sustainability is now a business necessity rather than merely a moral duty. It can no longer be seen as distinct from the overall financial performance of the company. It is evident from the findings of our study that businesses that prioritise sustainability are more successful. The moment has come to consider carbon data similarly to financial data in all corporate processes by integrating financial and environmental decision-making,” explains Manish Prasad, President, and Managing Director of SAP Indian Subcontinent.
Indian businesses are increasingly looking to unlock the value of sustainability data for making informed decisions. They state that if the sustainability data is not accurate, then the decisions taken to improve the health of the planet and businesses are cast into doubt. 40% of Indian businesses are completely satisfied with the quality of the sustainability data they gather; others believe it’s a long way to go.
The study SAP conducted saw participation from 4750 respondents across 21 nations and 29 industries, including 300 respondents in India.
