Corporate India stays afloat on sustainability

Mumbai: With sustainability likely to become the driving force of business success in the next decade, a report has revealed that 57 per cent organisation in India has a sustainability strategy that has been acted upon and clearly communicated. Globally, 43 per cent organisations have sustainability strategies which have been clearly acted upon and communicated, according to a report by leadership advisory and search firm Russell Reynolds Associates report - 'Divides and Dividends: Leadership Actions for a More Sustainable Future'.

"In many ways, India's record on sustainability is a source of pride. Yet we know that the transition to sustainable business is far from over. Sustainability must become a fundamental strand of business strategy, not an add-on to business as usual," Russell Reynolds Associates consultant Vijuraj Eranazhath said.

'Divides and Dividends: Leadership Actions for a More Sustainable Future' report is based on responses of more than 9,500 respondents - C-Suite executives, next-generation leaders and employees - including 1,392 in India. The report further revealed that 61 per cent employees interviewed believe their CEO is personally committed to sustainability and organisational progress has been made as compared to 51 per cent globally. More leaders in India recognise the potential of sustainability to unlock value for people, planet and profit, the report noted.

Over 45 per cent C-suite leaders in India admitted that their sustainability approach is mainly driven by brand management concerns, that is they want to be seen as socially responsible and reputable or to use sustainability for competitive differentiation, it said. About 29 per cent of C-suite leaders in the country said their sustainability efforts are motivated by value creation, like having a positive impact by creating new sustainable products or services, or by creating opportunities and access for disadvantaged or underserved groups, it added.

According to the report, India was the third most likely of all markets studied to cite value creation as a primary driver of their company's sustainability strategy, behind Brazil and Mexico.

The report also found that the top hurdle to embed sustainability across business strategy is the lack of organisational investment. Over 51 per cent of C-suite leaders in India believe that lack of organisational investment is a major challenge followed by short-term pressures from investors (47 per cent) and organisational complexity (46 per cent), it added. Meanwhile, 70 per cent of next-generation leaders in India have taken on three or more job responsibilities in the past two years to improve environmental and social outcomes — well ahead of the global average (40 per cent) and their APAC neighbours (49 per cent), the report stated.

"Our research shows that while business leaders in India are firmly committed to sustainability action, many are running into myriad challenges on their sustainability journeys, from bureaucracy and a lack of organisational investment to short-term pressures from investors. It's also comforting to note that next-gen leaders in India seem to be getting a lot more exposure to strategic sustainability initiatives vis-a-vis the global average, which sets up Indian businesses well for the future," Eranazhath added.

Corporate India stays afloat on sustainability