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How can better governance lead to building an authentic corporate identity? https://download.pwc.com/in/esg/esg-moneycontrol-ep-2.mp4

[pwcindia2]

Understanding circular economy – a key ESG imperative

The ways in which businesses function and execute their operations have changed as the global economy has undergone major transformations in the past few years. Organisations today are shifting towards adopting circular economy and engaging in sustainable practices that are environment friendly. In the fifth episode of PwC’s ‘ESG: A bridge to action’, in association with Moneycontrol, leaders deliberate upon the concept of circular economy and its impact on the long-term ESG goals of organisations.

Shivanshu Chauhan, Partner, ESG – Circular Economy, PwC India, and Mohit Malhotra, CEO, Dabur India, were the guests who discussed circular economy and its impact in detail. Dr Rupinder Singh Sodhi, Managing Director, GCMMF (Amul), in an exclusive message before the beginning of the episode, reiterated the importance for organisations to be energy efficient and sustainable. Citing the example of dairy plants, Dr Sodhi said that such plants are capable of producing biogas and bio-fertilisers. He also said that manufacturing processes should be environmentally sustainable as all products nowadays undergo the scrutiny of sustainability, which will eventually become the measurement of efficient manufacturing practices in future.

Explaining circular economy and its relationship with ESG, Shivanshu Chauhan said that unlike linear economy in which a lot of resources are utilised and a significant amount of wastage is generated, circular economy minimises waste generation and maximises value creation, leading to reduced extraction of resources and more increased reusing/recycling of materials. With policy and regulatory measures on circular economy gradually being developed and implemented, and conversations about the subject becoming mainstream, organisations are able to focus better on their ESG goals. The pressures of finite resources and shifting demographics faced by organisations can be addressed by shifting to circular economy aided by technology, and PwC’s ESG services can assist them during the transition.

Discussing the incorporation of circular economy in Dabur’s operations, Mohit Malhotra said that the organisation is committed to waste management and recycling, and believes in the larger agenda of being responsible towards the planet and not merely adhering to ESG regulations. Dabur aims to become a plastic waste neutral organisation in 2022 and plans to recycle the 22,000 metric tonnes of plastic waste it generates every year.

Mohit Malhotra also reiterated the importance of involving communities for an organisation’s successful transition to ESG. Citing the example of Dabur, he said that the company ran a plastic waste management programme which is now operational across 27 states. Pilot projects are a good way of executing such ideas and addressing operational loopholes, if any. Working directly with stakeholders as well as organisations like PwC which provide ESG services have ensured a smooth and sustainable ESG transition.

Deliberating upon the cost aspect of ESG transition, Shivanshu Chauhan said that sustainability should be seen from the lens of value and not cost. The social, environmental and future cost of ESG transition should be considered and circularity creates more value for stakeholders, making them more resilient. From prioritising inputs to recycling and reusing waste, corporates today are doing more responsible and sustainable business. While there may be a significant cost involved in ESG transition, corporates should look at it from the perspective of long-term value.

Mohit Malhotra also identified consumer behaviour as a critical enabler of ESG. Urban Indian millennials and centennials are buying sustainable products to encourage corporates’ sustainability efforts. However, the real challenge would be to cater to the rural consumers at the bottom of the pyramid. India’s ESG transformation would only be possible on a larger scale when both rural and urban consumers help corporates in their sustainability journey.

Consumer acceptance as well as a functional return-on-investment (RoI) structure play important roles in a circular economy. Products and services that provide environmental, social and economic benefits will find more traction with improvement in the spending capacity of consumers and an improved understanding of sustainability. To know more: https://www.pwc.in/consulting/environment-social-governance/understanding-circular-economy-a-key-esg-imperative.html

[pwcindia2]

Tools of transition – the role of technology in ESG

With more organisations identifying and implementing environmental, social and governance (ESG) strategies across their businesses, it becomes important to identify how ESG goals can be embedded in this transformation journey. In the third episode of PwC’s ‘ESG: A bridge to action’, in association with Moneycontrol, leaders talk about embedding sustainability, organisational transformation and the role of technology in the ESG journey.

Sambitosh Mohapatra, ESG Leader, PwC India, and Kiran Mazumdar Shaw, Executive Chairperson, Biocon, were invited for the third episode. In a special message before the beginning of the episode, Sanjiv Bajaj, Chairman and Managing Director of Bajaj Finserv, said sustainability was becoming important for both governments and businesses. The actions taken today towards running climate-sensitive businesses will determine whether future generations are protected from or exposed to climate change.

On questioned about how companies are responding to their ESG needs and navigating the path to meet their ESG goals, Sambitosh Mohapatra said that over the last 12–18 months, ESG, along with related issues of climate change, financial and technological availability, is creating a unified, emerging ecosystem. ESG, which was earlier seen as a risk factor, is now an area that can be leveraged by businesses. It is also driving business outcomes, so leaders are focusing on it to improve ratings and brand reputation. Organisations are focusing on doing the right type of business, identifying the correct environmental and social aspects, adopting global best practices and strategising on the kind of technology and finance required to make the necessary ESG transition. Companies looking to adopt a robust ESG framework should communicate their plans to all the stakeholders and develop a transition vision for the next three to five years.

Speaking about ESG standards and goals set by businesses, Kiran Mazumdar Shaw said that the purpose of a business should drive its ESG strategy. Biocon is focused on health equity and its purpose is embedded in greater social and sustainable impact, and the organisation upholds the value of ethical governance while achieving its ESG goals. ESG has become an important contributor to business and business practices.

When questioned about future plans and new targets in the ESG context, the Biocon Chairperson said that an inclusive culture paves the way for an organisation to become sustainable. Biocon was set up to promote a gender-inclusive work culture which promotes equal opportunities and is now focusing on technology adoption to further expand its sustainability footprint. The organisation is spending on R&D to manufacture high-quality medicines and provide managed care services. It is also utilising technology in ensuring transparency, accountability and responsibility.

While discussing how to handhold organisations in their ESG journey, Sambitosh Mohapatra said organisations need to believe in the long-term value creation of sustainability and how to scale up to make their transition journey financially viable. Good ESG transition ideas can be backed up with green financing options, something that is becoming a trend in India as well. Organisations should also communicate to their stakeholders the social aspect and impact of their businesses to access financial and human capital. Technology could help organisations put verifiable and measurable data into the ecosystem for stakeholders to access. Kiran Mazumdar Shaw reiterated the importance of data to bring in objectivity and trust, especially for a healthcare/pharma organisation. She also suggested that stakeholders must evaluate organisations to ensure they continue to remain sustainable.

India Inc.’s ESG journey has several facets, with technology playing a critical role in the ESG transition of an organisation. Going forward, organisations will look to further implement tools and technologies to make their sustainability journey smoother and one in which stakeholders are equally involved. To know more: https://www.pwc.in/consulting/environment-social-governance/tools-of-transition-the-role-of-technology-in-esg.html

[pwcindia2]

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Customers and stakeholders are increasingly seeking greater transparency in the ESG performance of organisations.

Customers and stakeholders are increasingly seeking greater transparency in the ESG performance of organisations. Industry experts Kunal Bahl, Co-Founder & CEO - Snapdeal and Manish Sharma, Leader - Infrastructure & Logistics, PwC India, discuss this and more with NISHA PODDAR, CNBC TV-18. Tune in to the fourth episode of PwC India presents ‘ESG – A bridge to action’, in association with moneycontrol.com. To know more: https://www.pwc.in/consulting/environment-social-governance.html

[pwcindia2]

Focusing on governance - decoding the ‘G’ in ESG

As ESG becomes imperative for organisations towards achieving sustainable growth, it is critical for them to focus on each aspect, namely environmental, social and governance, and develop strategies accordingly. In the second episode of PwC’s ‘ESG: A bridge to action’, in association with Moneycontrol, leaders discuss the governance aspect of ESG and how it could be utilised to drive sustainable value creation.

Vivek Prasad, Markets Leader, PwC India, and Nilanjan Roy, CFO, Infosys, were invited for the second episode. CP Gurnani, CEO, Tech Mahindra, shared a special message on sustainability before the discussion started. He said that global risks for organisations have shifted from economic to environmental and social. Tech Mahindra started its sustainable practices a decade ago and aims to achieve carbon neutrality by 2030 and 50% renewable energy mix by 2025.

Talking about corporate governance and its role in organisational ESG agenda, Vivek Prasad said that its necessary to equally balance all the aspects of ESG, though the environmental part tends to get more focus due to its tangibility. Governance is more about transparency, ethical business conduct, board compositions and policies and processes. Organisations that have invested and focused on the ‘G’ aspect of ESG have been rewarded with stakeholder trust, including stock market performance. These are necessary aspects to factor in for a successful ESG transformation in India.

Nilanjan Roy said that while profitability has been one of Infosys’s goals since its inception, the organisation had identified sustainability as key to be cognisant of the larger ecosystem of clients, the environment and society. The organisation ventured towards its carbon neutrality goal in 2010 and achieved it in 2020. It has developed an ‘ESG 2030’ vision and is currently working towards it, other than including a larger percentage of women in its workforce and planning to use digital technologies to impart education to ten million children, thereby looking to play a critical role in India’s ESG transformation.

 Discussing the role of technology in organisations’ ESG transition, Nilanjan Roy said that Infosys now incorporates sustainability during the design phase of clients’ digital transformation, thereby ensuring that sustainability is a core business strategy and not an afterthought.

Touching upon organisations’ understanding of governance, Vivek Prasad said it’s important for companies to identify their targets and objectives, and align their operational decisions to achieve them, and PwC’s ESG strategy seeks to help them achieve that. Developing relevant policies and procedures, communicating them to the larger stakeholders, taking ESG factors into consideration during strategic decision making, and capital and portfolio allocations should be integral for organisations in their ESG journey.

Value creation for the stakeholders, the community and the environment should be priorities for organisations going forward into their ESG journey, said Nilanjan Roy. Regulations like BRSR, are slated to be implemented in India from 2022 and become mandatory from 2023. Integration of sustainability in an organisation’s business model is key to realising its ESG objectives. Globally, developments such as oil companies moving towards using renewable energy and the automobile sector encouraging the adoption of EVs indicate that companies are strategically focusing on sustainability and hence, need to imbibe their ESG agenda as part of their everyday strategy and risk model.

To know more: https://www.pwc.in/consulting/environment-social-governance.html

[pwcindia2]

The evolution of ESG in the new normal

Organisations worldwide are developing and implementing environmental, social and governance (ESG) strategies to build sustainable business. With global business operations undergoing significant changes amidst the COVID-19 pandemic, ESG has become a critical agenda for companies as they are focusing on long-term sustainable growth. To shed further light on the ESG question, PwC, in partnership with Moneycontrol, has launched ‘ESG: A bridge to action’, a brand new platform where leaders discuss the multiple aspects of ESG and the key ESG strategies adopted by their organisations.

Sanjeev Krishan, Chairman, PwC India, and Koushik Chatterjee, Executive Director and CFO, Tata Steel, were invited for the inaugural episode. Ajay Piramal, Chairman of Piramal Enterprises, shared a short note before the discussion started, highlighting how Piramal Enterprises plans to extend its ESG focus over the next few years and float an ESG fund.

On being asked about why the ESG agenda has gained prominence in recent times, Sanjeev Krishan highlighted the role of stakeholder capitalism and how corporations are focusing on long-term sustainable growth that addresses both ESG requirements as well as caters to the accountability demanded by stakeholders at large. A successful ESG agenda is capable of making organisations resilient, create long-term value and build trust and PwC’s ESG strategy aims to to work on similar lines.

As a concept, ESG focuses on the additional responsibilities of businesses other than generating profits. This view was echoed by Koushik Chatterjee who said that businesses should look to strike a healthy balance between generating profits and maintaining sustainability. In this context, it is important for organisations to work with communities and use structured frameworks to measure their ESG performance. The UN’s 17-point Sustainable Development Goals is a robust framework that can help organisations assess the relevance of the sustainability factors and their roles in developing long-term strategies.

Commending the adoption of the ESG agenda by multiple companies and countries, Sanjeev Krishan said that corporations should look to transform their supply chains and make them ESG compliant. As more organisations become socially responsible, they are embracing diversity at a differentiated pace. They are still exploring how innovation, technology and funding could play critical roles in building an ESG ecosystem. He also said that organisations would incur near-term costs when transforming their supply chains to make them ESG compliant. PwC’s ESG services plays a critical role in helping clients understand ESG requirements and implement the same.    

Koushik Chatterjee further highlighted the fundamental role of reporting and disclosures in the ESG agenda. The risks incurred and opportunities explored in an organisation’s ESG strategy can only be measured through proper disclosure. This further becomes critical for financial stakeholders, such as banks, as going forward, they may want to seek detailed information about a company’s ESG strategy before lending. Financial and non-financial ESG reporting is expected to converge soon, resulting in unified corporate reporting that will help stakeholders understand the multiple aspects of ESG.

The ESG framework is evolving and organisations need to proactively focus on revamping supply chains, working with communities, and reporting and disclosures to further strengthen the role of ESG in the new normal. To know more: https://www.pwc.in/consulting/environment-social-governance/the-evolution-of-esg-in-the-new-normal.html

[pwcindia2]

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ESG: Creating Social Value

Businesses today have several yardsticks and rating frameworks to measure their social impact with accuracy. However, it is also critical to communicate this impact with authenticity. PwC’s Social Sector Leader Ashok Varma weighs in on the significance of ESG measurement in PwC India presents ‘ESG – A bridge to action’, in association with moneycontrol. To know more: https://www.pwc.in/consulting/environment-social-governance.html

[pwcindia2]

The evolution of ESG in the new normal

Organisations worldwide are developing and implementing environmental, social and governance (ESG) strategies to build sustainable business. With global business operations undergoing significant changes amidst the COVID-19 pandemic, ESG has become a critical agenda for companies as they are focusing on long-term sustainable growth. To shed further light on the ESG question, PwC, in partnership with Moneycontrol, has launched ‘ESG: A bridge to action’, a brand new platform where leaders discuss the multiple aspects of ESG and the key ESG strategies adopted by their organisations.

Sanjeev Krishan, Chairman, PwC India, and Koushik Chatterjee, Executive Director and CFO, Tata Steel, were invited for the inaugural episode. Ajay Piramal, Chairman of Piramal Enterprises, shared a short note before the discussion started, highlighting how Piramal Enterprises plans to extend its ESG focus over the next few years and float an ESG fund.

On being asked about why the ESG agenda has gained prominence in recent times, Sanjeev Krishan highlighted the role of stakeholder capitalism and how corporations are focusing on long-term sustainable growth that addresses both ESG requirements as well as caters to the accountability demanded by stakeholders at large. A successful ESG agenda is capable of making organisations resilient, create long-term value and build trust and PwC’s ESG strategy aims to to work on similar lines.

As a concept, ESG focuses on the additional responsibilities of businesses other than generating profits. This view was echoed by Koushik Chatterjee who said that businesses should look to strike a healthy balance between generating profits and maintaining sustainability. In this context, it is important for organisations to work with communities and use structured frameworks to measure their ESG performance. The UN’s 17-point Sustainable Development Goals is a robust framework that can help organisations assess the relevance of the sustainability factors and their roles in developing long-term strategies.

Commending the adoption of the ESG agenda by multiple companies and countries, Sanjeev Krishan said that corporations should look to transform their supply chains and make them ESG compliant. As more organisations become socially responsible, they are embracing diversity at a differentiated pace. They are still exploring how innovation, technology and funding could play critical roles in building an ESG ecosystem. He also said that organisations would incur near-term costs when transforming their supply chains to make them ESG compliant. PwC’s ESG services plays a critical role in helping clients understand ESG requirements and implement the same.    

Koushik Chatterjee further highlighted the fundamental role of reporting and disclosures in the ESG agenda. The risks incurred and opportunities explored in an organisation’s ESG strategy can only be measured through proper disclosure. This further becomes critical for financial stakeholders, such as banks, as going forward, they may want to seek detailed information about a company’s ESG strategy before lending. Financial and non-financial ESG reporting is expected to converge soon, resulting in unified corporate reporting that will help stakeholders understand the multiple aspects of ESG.

The ESG framework is evolving and organisations need to proactively focus on revamping supply chains, working with communities, and reporting and disclosures to further strengthen the role of ESG in the new normal. To know more: https://www.pwc.in/consulting/environment-social-governance/the-evolution-of-esg-in-the-new-normal.html

[pwcindia2]

Understanding circular economy – a key ESG imperative

The ways in which businesses function and execute their operations have changed as the global economy has undergone major transformations in the past few years. Organisations today are shifting towards adopting circular economy and engaging in sustainable practices that are environment friendly. In the fifth episode of PwC’s ‘ESG: A bridge to action’, in association with Moneycontrol, leaders deliberate upon the concept of circular economy and its impact on the long-term ESG goals of organisations.

Shivanshu Chauhan, Partner, ESG – Circular Economy, PwC India, and Mohit Malhotra, CEO, Dabur India, were the guests who discussed circular economy and its impact in detail. Dr Rupinder Singh Sodhi, Managing Director, GCMMF (Amul), in an exclusive message before the beginning of the episode, reiterated the importance for organisations to be energy efficient and sustainable. Citing the example of dairy plants, Dr Sodhi said that such plants are capable of producing biogas and bio-fertilisers. He also said that manufacturing processes should be environmentally sustainable as all products nowadays undergo the scrutiny of sustainability, which will eventually become the measurement of efficient manufacturing practices in future.

Explaining circular economy and its relationship with ESG, Shivanshu Chauhan said that unlike linear economy in which a lot of resources are utilised and a significant amount of wastage is generated, circular economy minimises waste generation and maximises value creation, leading to reduced extraction of resources and more increased reusing/recycling of materials. With policy and regulatory measures on circular economy gradually being developed and implemented, and conversations about the subject becoming mainstream, organisations are able to focus better on their ESG goals. The pressures of finite resources and shifting demographics faced by organisations can be addressed by shifting to circular economy aided by technology, and PwC’s ESG services can assist them during the transition.

Discussing the incorporation of circular economy in Dabur’s operations, Mohit Malhotra said that the organisation is committed to waste management and recycling, and believes in the larger agenda of being responsible towards the planet and not merely adhering to ESG regulations. Dabur aims to become a plastic waste neutral organisation in 2022 and plans to recycle the 22,000 metric tonnes of plastic waste it generates every year.

Mohit Malhotra also reiterated the importance of involving communities for an organisation’s successful transition to ESG. Citing the example of Dabur, he said that the company ran a plastic waste management programme which is now operational across 27 states. Pilot projects are a good way of executing such ideas and addressing operational loopholes, if any. Working directly with stakeholders as well as organisations like PwC which provide ESG services have ensured a smooth and sustainable ESG transition.

Deliberating upon the cost aspect of ESG transition, Shivanshu Chauhan said that sustainability should be seen from the lens of value and not cost. The social, environmental and future cost of ESG transition should be considered and circularity creates more value for stakeholders, making them more resilient. From prioritising inputs to recycling and reusing waste, corporates today are doing more responsible and sustainable business. While there may be a significant cost involved in ESG transition, corporates should look at it from the perspective of long-term value.

Mohit Malhotra also identified consumer behaviour as a critical enabler of ESG. Urban Indian millennials and centennials are buying sustainable products to encourage corporates’ sustainability efforts. However, the real challenge would be to cater to the rural consumers at the bottom of the pyramid. India’s ESG transformation would only be possible on a larger scale when both rural and urban consumers help corporates in their sustainability journey.

Consumer acceptance as well as a functional return-on-investment (RoI) structure play important roles in a circular economy. Products and services that provide environmental, social and economic benefits will find more traction with improvement in the spending capacity of consumers and an improved understanding of sustainability. To know more: https://www.pwc.in/consulting/environment-social-governance/understanding-circular-economy-a-key-esg-imperative.html

[pwcindia2]

Tools of transition – the role of technology in ESG

With more organisations identifying and implementing environmental, social and governance (ESG) strategies across their businesses, it becomes important to identify how ESG goals can be embedded in this transformation journey. In the third episode of PwC’s ‘ESG: A bridge to action’, in association with Moneycontrol, leaders talk about embedding sustainability, organisational transformation and the role of technology in the ESG journey.

Sambitosh Mohapatra, ESG Leader, PwC India, and Kiran Mazumdar Shaw, Executive Chairperson, Biocon, were invited for the third episode. In a special message before the beginning of the episode, Sanjiv Bajaj, Chairman and Managing Director of Bajaj Finserv, said sustainability was becoming important for both governments and businesses. The actions taken today towards running climate-sensitive businesses will determine whether future generations are protected from or exposed to climate change.

On questioned about how companies are responding to their ESG needs and navigating the path to meet their ESG goals, Sambitosh Mohapatra said that over the last 12–18 months, ESG, along with related issues of climate change, financial and technological availability, is creating a unified, emerging ecosystem. ESG, which was earlier seen as a risk factor, is now an area that can be leveraged by businesses. It is also driving business outcomes, so leaders are focusing on it to improve ratings and brand reputation. Organisations are focusing on doing the right type of business, identifying the correct environmental and social aspects, adopting global best practices and strategising on the kind of technology and finance required to make the necessary ESG transition. Companies looking to adopt a robust ESG framework should communicate their plans to all the stakeholders and develop a transition vision for the next three to five years.

Speaking about ESG standards and goals set by businesses, Kiran Mazumdar Shaw said that the purpose of a business should drive its ESG strategy. Biocon is focused on health equity and its purpose is embedded in greater social and sustainable impact, and the organisation upholds the value of ethical governance while achieving its ESG goals. ESG has become an important contributor to business and business practices.

When questioned about future plans and new targets in the ESG context, the Biocon Chairperson said that an inclusive culture paves the way for an organisation to become sustainable. Biocon was set up to promote a gender-inclusive work culture which promotes equal opportunities and is now focusing on technology adoption to further expand its sustainability footprint. The organisation is spending on R&D to manufacture high-quality medicines and provide managed care services. It is also utilising technology in ensuring transparency, accountability and responsibility.

While discussing how to handhold organisations in their ESG journey, Sambitosh Mohapatra said organisations need to believe in the long-term value creation of sustainability and how to scale up to make their transition journey financially viable. Good ESG transition ideas can be backed up with green financing options, something that is becoming a trend in India as well. Organisations should also communicate to their stakeholders the social aspect and impact of their businesses to access financial and human capital. Technology could help organisations put verifiable and measurable data into the ecosystem for stakeholders to access. Kiran Mazumdar Shaw reiterated the importance of data to bring in objectivity and trust, especially for a healthcare/pharma organisation. She also suggested that stakeholders must evaluate organisations to ensure they continue to remain sustainable.

India Inc.’s ESG journey has several facets, with technology playing a critical role in the ESG transition of an organisation. Going forward, organisations will look to further implement tools and technologies to make their sustainability journey smoother and one in which stakeholders are equally involved. To know more: https://www.pwc.in/consulting/environment-social-governance/tools-of-transition-the-role-of-technology-in-esg.html

[pwcindia2]

undefined

Customers and stakeholders are increasingly seeking greater transparency in the ESG performance of organisations.

Customers and stakeholders are increasingly seeking greater transparency in the ESG performance of organisations. Industry experts Kunal Bahl, Co-Founder & CEO - Snapdeal and Manish Sharma, Leader - Infrastructure & Logistics, PwC India, discuss this and more with NISHA PODDAR, CNBC TV-18. Tune in to the fourth episode of PwC India presents ‘ESG – A bridge to action’, in association with moneycontrol.com. To know more: https://www.pwc.in/consulting/environment-social-governance.html

[pwcindia2]

ESG Episode 2

How can better governance lead to building an authentic corporate identity? https://download.pwc.com/in/esg/esg-moneycontrol-ep-2.mp4

[pwcindia2]

ESG Episode 1

Why has ESG become a buzzword in corporate India? https://download.pwc.com/in/esg/esg-moneycontrol-video-3.mp4

[pwcindia2]

Focusing on governance - decoding the ‘G’ in ESG

As ESG becomes imperative for organisations towards achieving sustainable growth, it is critical for them to focus on each aspect, namely environmental, social and governance, and develop strategies accordingly. In the second episode of PwC’s ‘ESG: A bridge to action’, in association with Moneycontrol, leaders discuss the governance aspect of ESG and how it could be utilised to drive sustainable value creation.

Vivek Prasad, Markets Leader, PwC India, and Nilanjan Roy, CFO, Infosys, were invited for the second episode. CP Gurnani, CEO, Tech Mahindra, shared a special message on sustainability before the discussion started. He said that global risks for organisations have shifted from economic to environmental and social. Tech Mahindra started its sustainable practices a decade ago and aims to achieve carbon neutrality by 2030 and 50% renewable energy mix by 2025.

Talking about corporate governance and its role in organisational ESG agenda, Vivek Prasad said that its necessary to equally balance all the aspects of ESG, though the environmental part tends to get more focus due to its tangibility. Governance is more about transparency, ethical business conduct, board compositions and policies and processes. Organisations that have invested and focused on the ‘G’ aspect of ESG have been rewarded with stakeholder trust, including stock market performance. These are necessary aspects to factor in for a successful ESG transformation in India.

Nilanjan Roy said that while profitability has been one of Infosys’s goals since its inception, the organisation had identified sustainability as key to be cognisant of the larger ecosystem of clients, the environment and society. The organisation ventured towards its carbon neutrality goal in 2010 and achieved it in 2020. It has developed an ‘ESG 2030’ vision and is currently working towards it, other than including a larger percentage of women in its workforce and planning to use digital technologies to impart education to ten million children, thereby looking to play a critical role in India’s ESG transformation.

 Discussing the role of technology in organisations’ ESG transition, Nilanjan Roy said that Infosys now incorporates sustainability during the design phase of clients’ digital transformation, thereby ensuring that sustainability is a core business strategy and not an afterthought.

Touching upon organisations’ understanding of governance, Vivek Prasad said it’s important for companies to identify their targets and objectives, and align their operational decisions to achieve them, and PwC’s ESG strategy seeks to help them achieve that. Developing relevant policies and procedures, communicating them to the larger stakeholders, taking ESG factors into consideration during strategic decision making, and capital and portfolio allocations should be integral for organisations in their ESG journey.

Value creation for the stakeholders, the community and the environment should be priorities for organisations going forward into their ESG journey, said Nilanjan Roy. Regulations like BRSR, are slated to be implemented in India from 2022 and become mandatory from 2023. Integration of sustainability in an organisation’s business model is key to realising its ESG objectives. Globally, developments such as oil companies moving towards using renewable energy and the automobile sector encouraging the adoption of EVs indicate that companies are strategically focusing on sustainability and hence, need to imbibe their ESG agenda as part of their everyday strategy and risk model.

To know more:

https://www.pwc.in/consulting/environment-social-governance.html

[pwcindia2]

The evolution of ESG in the new normal

Organisations worldwide are developing and implementing environmental, social and governance (ESG) strategies to build sustainable business. With global business operations undergoing significant changes amidst the COVID-19 pandemic, ESG has become a critical agenda for companies as they are focusing on long-term sustainable growth. To shed further light on the ESG question, PwC, in partnership with Moneycontrol, has launched ‘ESG: A bridge to action’, a brand new platform where leaders discuss the multiple aspects of ESG and the key ESG strategies adopted by their organisations.

 Sanjeev Krishan, Chairman, PwC India, and Koushik Chatterjee, Executive Director and CFO, Tata Steel, were invited for the inaugural episode. Ajay Piramal, Chairman of Piramal Enterprises, shared a short note before the discussion started, highlighting how Piramal Enterprises plans to extend its ESG focus over the next few years and float an ESG fund.

 On being asked about why the ESG agenda has gained prominence in recent times, Sanjeev Krishan highlighted the role of stakeholder capitalism and how corporations are focusing on long-term sustainable growth that addresses both ESG requirements as well as caters to the accountability demanded by stakeholders at large. A successful ESG agenda is capable of making organisations resilient, create long-term value and build trust and PwC’s ESG strategy aims to to work on similar lines.

 As a concept, ESG focuses on the additional responsibilities of businesses other than generating profits. This view was echoed by Koushik Chatterjee who said that businesses should look to strike a healthy balance between generating profits and maintaining sustainability. In this context, it is important for organisations to work with communities and use structured frameworks to measure their ESG performance. The UN’s 17-point Sustainable Development Goals is a robust framework that can help organisations assess the relevance of the sustainability factors and their roles in developing long-term strategies.

 Commending the adoption of the ESG agenda by multiple companies and countries, Sanjeev Krishan said that corporations should look to transform their supply chains and make them ESG compliant. As more organisations become socially responsible, they are embracing diversity at a differentiated pace. They are still exploring how innovation, technology and funding could play critical roles in building an ESG ecosystem. He also said that organisations would incur near-term costs when transforming their supply chains to make them ESG compliant. PwC’s ESG services plays a critical role in helping clients understand ESG requirements and implement the same.    

 Koushik Chatterjee further highlighted the fundamental role of reporting and disclosures in the ESG agenda. The risks incurred and opportunities explored in an organisation’s ESG strategy can only be measured through proper disclosure. This further becomes critical for financial stakeholders, such as banks, as going forward, they may want to seek detailed information about a company’s ESG strategy before lending. Financial and non-financial ESG reporting is expected to converge soon, resulting in unified corporate reporting that will help stakeholders understand the multiple aspects of ESG.

 The ESG framework is evolving and organisations need to proactively focus on revamping supply chains, working with communities, and reporting and disclosures to further strengthen the role of ESG in the new normal.

To know more: https://www.pwc.in/consulting/environment-social-governance/the-evolution-of-esg-in-the-new-normal.html