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Report Shows 86% of Indian Companies Link Sustainability to Profits

3 weeks ago
thedialog
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Indian Companies

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A recent report by SAP, a major cloud software company, reveals a promising trend in the Indian business landscape: a growing recognition of the symbiotic relationship between sustainability and profitability.

The findings shed light on how businesses are increasingly embracing sustainable practices not just as a moral obligation but as a strategic imperative driving financial success.

 

Reaping Profits and Efficiency Gains from Sustainability Investments

The report finds that a significant 77% of Indian businesses attribute revenue or profit growth to sustainability strategies. Moreover, 84% note an enhancement in the efficiency of business processes due to sustainable initiatives.

  • 58% of businesses expect positive financial returns on sustainability investments within five years.
  • 39% of Indian businesses plan to increase investments in sustainability over the next three years.

 

Challenges Hindering Environmental Action

Despite the promising outlook, challenges persist. The lack of a structured environmental impact strategy emerges as the foremost barrier, affecting 40% of Indian businesses, as per the report.

  • Uncertainty due to the COVID-19 pandemic poses challenges to sustainability initiatives.
  • Clear direction on integrating sustainability into business processes and IT systems is needed.
  • There is a shortage of expertise in implementing sustainable practices effectively.

 

 Unlocking the Value of Sustainability Data

Accurate and integrated sustainability data is deemed essential for informed decision-making, stresses the report.

  • 40% of Indian businesses are satisfied with the quality of sustainability data they gather.
  • Improvement in data accuracy and integration with financial metrics is necessary.

 

Demand for Sustainability Data across Ecosystems

According to the report, Indian businesses not only track their own emissions but also demand sustainability data from their ecosystem partners.

  • 78% of businesses require environmental impact data from partners like logistics and fulfillment providers.
  • Indian businesses are tracking emissions across all scopes, with varying degrees of emphasis.
  • Sustainability data informs strategic and operational decision-making for 69% of businesses.

Voices from Industry Leaders: Industry leaders emphasize the significance of sustainability in driving business success.

Rajnish Singh, Director of Manufacturing, Projects, and Commercial at Sakata Inx, emphasizes the alignment of their sustainability goals with SAP’s philosophy.

“Our sustainability goals are well aligned with SAP’s ‘zero emissions, zero waste, and zero inequality’ philosophy”, says Singh.

Abhishek Kapoor, CFO of Sula Wines, highlights the role of SAP in driving operational efficiency and advancing environmental goals. “We are striving towards a carbon-neutral future by 2050”, adds Kapoor.

 

SAP’s Role in Driving Sustainable Practices

SAP says it is committed to fostering a sustainable future by integrating social, environmental, and economic performance. The company empowers businesses to embrace sustainability as a core component of their operations.