36 per cent believe the costs for sustainability initiatives outweigh the benefits, according to a Capgemini Research Institute survey

A growing number of companies acknowledge the benefits of incorporating sustainable business practices, according to a new report by the Capgemini Research Institute.

Organisations believe digital technology, particularly generative AI (GenAI), will help them in achieving their sustainability goals, said the report titled ‘A World in Balance 2023’.

As many as 69 per cent of Indian organisations believe GenAI will play a key role in their sustainability transformation efforts compared to 59 per cent globally.

GenAI’s ability to analyse large volumes of data is transforming ESG (environmental, social, governance) strategies, enabling accurate insights for sustainability decisions. GenAI can help reduce the consumption of natural resources by making processes leaner and by reducing waste. For example, GenAI algorithms can be used to optimise buildings, infrastructure, and the design of products.

Compared to 59 per cent of organisations worldwide, 77 per cent of Indian organisations reported that their boards of directors are involved in sustainability strategy. In India, the proportion of participants who expressed clarity of the business case for sustainability rose from 23 per cent in 2022 to 53 per cent this year. Comparatively, globally, it has from 21 per cent in 2022 to 63 per cent.

Compared to 24 per cent of respondents worldwide, up to 36 per cent of Indian respondents think that the expenses of sustainability programmes outweigh the advantages. Reliability for sustainability initiatives as a financial burden has declined among Indian respondents, from 49 per cent in 2022 to 34 per cent in 2023. Whereas respondents globally have decreased from 53 per cent in 2022 to 22 per cent in 2023.

2151 executives from 718 companies, each with yearly revenue of more than USD 1 billion, were surveyed by the Capgemini Research Institute in 13 countries, including India. Director-level and above executives were surveyed; of these, 50 per cent came from corporate functions like sales, marketing, strategy, and sustainability, and the remaining 25 per cent came from value chain functions like product design, R&D, procurement, and logistics.