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WEF Report Highlights Accelerated Adoption Of Sustainability Practices Across Indian Corporations

Most companies (62 per cent) reported that their investments currently come from Corporate Social Responsibility (CSR) budgets and the majority are pretty small (under USD 1 million) 

The latest research, collaboratively carried out by the World Economic Forum, the Confederation of Indian Industry and IORA Ecological Solutions, has illuminated the state of sustainability in the major Indian corporations. 89 per cent of these organisations have already implemented a sustainability plan, according to the research. Moreover, about 50 per cent  of these companies have already proactively adopted a net-zero approach. The businesses indicated a particular interest in nature-based solutions (NBS) for carbon sequestration during their discussion of the business case for sustainability. NBS not only help achieve net-zero targets but also improve brand image and increase business resilience.

The poll also revealed that over 90 per cent of respondents aim to significantly or moderately boost their investments in natural climate solutions (NCS) during the next five years. Remarkably, a whopping 54 per cent of participants said they intended to start or increase their forest carbon credit purchases during the next five years, a significant rise from the current 7 per cent who make such purchases.

On the other hand, the study found four major obstacles that affect business choices about the amount of NCS investments. These obstacles include the requirement for unambiguous nature-related legislative frameworks, handling land ownership difficulties, guaranteeing the availability of top-notch NCS projects with reliable monitoring and verification frameworks and developing a business case tailored to the industry.

In the global environment, natural capital strategies (NCS) become imperative, particularly given that USD 44 trillion of the world economy is in danger of natural disasters. By combining a number of strategies for maintaining and responsibly managing ecosystems, NCS offers a workable way to achieve up to one-third of the net emission reductions needed by 2030.

India has pledged to increase forest cover and restore degraded land under its Nationally Determined Contributions (NDC) to the Paris Agreement and the UNCCD due to its sensitivity to climate-related hazards, which could cost the country three per cent of its GDP annually.

Despite these pledges, the analysis shows that India’s existing investments in NCS, which are mostly supported by the public sector, are insufficient to meet the significant financing requirements by 2030—roughly USD 161.9 billion in the forestry sector alone. The majority of business investments—62 per cent—come from budgets allocated to corporate social responsibility (CSR) and a sizeable chunk—35 per cent—are motivated by local, state, or federal regulations. This emphasises the necessity of removing the obstacles that have been found to prevent businesses from realising the full potential of their NCS investments and closing the gap between understanding the business case for sustainability and turning it into specific investment decisions.

WEF Report Highlights Accelerated Adoption Of Sustainability Practices Across Indian Corporations

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