With increased focus on climate action, diversity and inclusion and sustainable business practices, 2024 was a pivotal year for ESG developments globally. India’s distinctive socio-economic profile and development agenda demand a tailored approach to Environmental, Social, and Governance (ESG) considerations. The country’s rapid economic growth, rich cultural diversity, and pressing environmental issues have created unique ESG challenges and opportunities. This necessitates a nuanced understanding of India’s specific ESG needs and how they differ from global norms. A focused examination of these differences is crucial for businesses, investors, and policymakers seeking to navigate India’s ESG landscape effectively.

India’s Sustainability Inflection Point
India’s rapid economic growth and its large and growing population have brought about unprecedented development opportunities and significant environmental challenges. India’s population, projected to reach 1.5 billion by 2030, will further strain the country’s natural resources, including water, land and energy.

As the country strives to lift millions of citizens out of poverty and achieve its ambitious development goals, the pressure on its natural resources intensifies. The resulting strain on the environment is taking a toll on the country’s ecosystems, biodiversity, and natural resources, threatening the very foundations of its economic growth and human well-being.

The next few years will be critical for India’s sustainability journey. As the country continues to develop, increasing environmental demands will be driven by factors such as rapid urbanisation, growing energy needs, increasing water scarcity and rising waste management challenges.

India’s urban population is projected to reach 590 million by 2030, putting pressure on cities’ infrastructure, resources, and ecosystems. India’s energy demand is expected to increase by 50 per cent by 2030, driven by economic growth, urbanisation, and rising incomes. Water resources are already under strain, and the situation is expected to worsen due to climate change, population growth, and urbanisation. The waste management infrastructure is inadequate, and the country is expected to generate over 150 million tons of municipal solid waste by 2030.

Economic expansion, driven by government initiatives such as Make in India and the National Infrastructure Pipeline, will also have a significant impact on the environment. As India’s economy continues to grow, sustainability must be integrated into the country’s development strategy to ensure that growth is equitable, inclusive, and environmentally conscious.

Key Drivers for a Greener Tomorrow
Indian corporates play a significant role in shaping a sustainable future for the country by leveraging its resources, innovation, and leadership to drive environmental, social and economic sustainability.

Accelerate towards a carbon-neutral future: Companies must consciously integrate energy-efficient technologies, renewable energy sources like solar and wind power, and waste-to-energy solutions into their operations. Embrace the circular economy model by reducing waste, recycling materials, and reusing resources to minimise environmental impact. For instance, to drive our net-zero agenda, we maintain a comprehensive GHG inventory to identify and quantify all Scope 1, 2, and 3 emissions across our operations and value chain. Our goal is to integrate each unit into the carbon neutrality transition, optimise energy usage, and invest in low-carbon technologies to reduce emissions.

Rethinking Plastic For A Sustainable Future: Plastic has long been the go-to choice for product packaging due to its lightweight and protective properties. However, companies need to recognise the environmental impact of plastic pollution and actively seek alternatives that can effectively replace plastic for packaging. At Marico, we are working towards integrating circularity into our packaging. Through research, we actively seek recyclable, reusable and compostable plastic packaging solutions, reducing reliance on virgin plastic and promoting a circular economy. In FY24, we achieved 95.30 per cent of recyclable packaging by weight across product portfolios.

Climate Change Mitigation: Organisations should invest in projects that offset their carbon emissions, like afforestation programs and renewable energy projects. Water shortage is one of the primary concerns. Indian companies must drive water stewardship programs that focus on implementing comprehensive water conservation measures, including rainwater harvesting, infrastructure development and creation of water conservation potential, which can enhance water availability, contribute to agricultural sustainability, and improve the quality of life for local communities.

Create Awareness And Advocacy: Indian corporates must promote local, indigenous produce with a significantly lower environmental footprint. Ensure ethics and integrity across the value chain by advocating business ethics and human rights principles through training and business communications for all suppliers/vendors, helping them imbibe the company’s ESG framework. A case in point is ‘Samyut’ – our responsible sourcing framework, implemented for critical suppliers, including raw materials, packaging, depots, warehouses, and third-party manufacturers. Through ‘Samyut’, we use a three-pronged maturity approach to engage value chain partners in our sustainability vision. It emphasises our commitment to ethical, social, and environmental standards through strong governance.

In conclusion, sustainability requires clear, measurable targets across short, medium, and long-term horizons. Indian corporates, emerging as key players in the nation’s sustainability journey, must focus on profitability and integrate environmental, social, and governance considerations into their operations. Companies can make a significant impact by adopting sustainable packaging solutions, promoting waste recycling and reuse, and reconfiguring logistics. Collaboration with critical value chain partners to implement green initiatives will drive meaningful, long-lasting change. Through innovation, responsible practices, and investment in sustainable solutions, Indian businesses can contribute to a greener, more equitable tomorrow, ensuring that the corporate sector remains central to the country’s long-term sustainability goals.

About Author: Amit Bhasin is the Chief Legal Officer, Group General Counsel, and Secretary of the CSR Committee, Marico Limited.