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A recent study by Oxford Economics and SAP, revealed that Indian businesses today recognize the potential of sustainability to unlock business value, with 62pc of companies realizing that it is not difficult to be sustainable and profitable at the same time.
The study also revealed that although the meaning of sustainability is well understood, much work remains to be done to ensure sustainability ambition is translated into action. The study found that only 17pc of respondents calculated their total organizational carbon input. More importantly, of the organizations that have acted on a sustainability strategy, only 7 PCs get significant value from it.
“It is a positive sign that Indian organizations believe it is feasible to improve profits and protect the environment at the same time,” said Kulmeet Bawa, President & Managing Director, SAP Indian Subcontinent. “The use of technology can help us strategically help companies realize real, genuine and quantifiable business value. At SAP, we are dedicated to enabling businesses of all sizes and industries to achieve their sustainability goals,” he added.
Regulatory compliance is both a key sustainability issue and a challenge
More than half of Indian respondents (60pc) noted that regulatory mandates are the main drivers of their sustainability strategies. This is consistent with the fact that regulatory compliance (45 pc) is the most important benefit derived from reduced carbon emissions and increased operational visibility.
It is clear that organizations may need to refocus their strategies to achieve greater value from sustainability. Too much focus on compliance was cited as the third highest challenge to sustainability success by Indian respondents.
Data is the most important gap to go green
Access to accurate and insightful data across the business value chain is critical to maximizing sustainability outcomes. But only four in ten (44pc) of respondents said they have invested in data analytics to measure sustainability in their business, and a similar amount (43pc) said they train staff how to capture sustainability data.
Organizations must go beyond driving transparency for legal compliance to expand sustainable practices across industrial business networks and value chains. To do this, they must use technology to collect data, optimize business processes and make more sustainable business decisions.
The role of leadership is central in driving progress on sustainability
Senior leadership can play a pivotal role in engaging and leading their companies to sustainable transformation by setting clear paths and goals. However, only 22pc of businesses have motivated leaders based on sustainability strategy success and only half (52pc) say their employees are active participants in their sustainability efforts.
Business leaders must speak through clearly communicating with key audiences such as employees, supply chain partners and policy makers about how to harness the transformative power of technology and data management to be a smarter, more sustainable enterprise.
“Sustainability leaders go beyond vision to ensure action on sustainability initiatives,” said Edward Cone, editorial director, Oxford Economics. “They communicate with key constituencies both inside and outside the company, and they use integrated technologies to measure and track performance in a way that drives accountability,” he added.
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