【毕马威】2024年ESG峰会报告-构建印度绿色与包容性增长的可持续性发展学习之路英文版_23页_2mb

Sustainability Learning Summary

Core Content

Sustainability Learning is a foundational element for achieving green and inclusive growth in India. It plays a pivotal role in equipping the workforce with the necessary skills and knowledge to support the transition towards a sustainable future, aligning business practices with environmental, social, and governance (ESG) goals. The Indian government's "Viksit Bharat" programme and its decarbonisation roadmap to 2070 underscore the country's commitment to addressing climate change while maintaining economic growth.

Main Points

• Green and Inclusive Growth: The Indian economy needs to focus on both growth and sustainability as twin pillars. This requires a systemic redesign of policies, people, and technologies to ensure resilience and long-term value creation.

• ESG Integration: ESG considerations have become central to corporate strategy. They must be deeply embedded in an organisation's culture, influencing daily decisions and not just be a compliance requirement.

• Leadership Transformation: Leadership teams are being challenged to shift from a purely financial focus to one that includes ESG integration. This involves new processes, skills, and oversight to meet global standards and investor expectations.

• Green Skills Development: The transition to a green economy demands new skills across various sectors, especially in renewable energy, energy efficiency, and sustainability consulting. Digital literacy and rapid learning methods are critical in this context.

• Workforce Demographics: A significant portion of India's young population lacks the skills required for a modern economy, highlighting the need for education and training reforms.

Key Trends in ESG

• Climate Action and Decarbonisation: Nearly half of the companies assessed have committed to Net Zero, with 69% aiming for 2040 or later. Renewable energy consumption has increased by 64% annually, with an average of 15% in the energy mix.

• Water Management: India is one of the most water-stressed countries, with water scarcity affecting both people and industries. Companies are adopting water stewardship practices, such as rainwater harvesting and wastewater recycling, to reduce water intensity.

• Diversity, Equity, and Inclusion (DEI): Companies are increasingly focusing on gender and educational diversity. Women constitute 16% of the workforce, with 20% of Board positions and 13% of management roles held by women. DEI also extends to supply chain management and fair labor practices.

• Waste and Circularity: With 17 million tons of plastic produced annually in India, there is a growing emphasis on circular economy models. 60% of Consumer Markets sector companies have disclosed commitments related to packaging use.

• Governance and Ethical Leadership: Strong governance practices are essential for ESG success. 79% of companies have obtained external assurance for their sustainability reports, reflecting a commitment to transparency and stakeholder trust.

Tipping Points for Green and Inclusive Growth

1. Climate Resilient Development: Climate change threatens India's natural resources and livelihoods. Over 80% of its population resides in climate-prone areas, and heat stress is expected to reduce working hours significantly.

2. Changes in Agriculture, Waste, Water, and Circularity: Sustainable practices in agriculture, waste management, and water conservation are crucial for India's future. Technology and circular economy models are key to addressing these challenges.

3. Scaling Up Sustainable Finance: Climate finance is increasing, supported by government policies and private sector initiatives. Regulatory frameworks and green finance portfolios are shaping the future of investment and risk management.

4. Gender and Educational Diversity: There is a notable rise in women's participation in the workforce and leadership roles, as well as a broader recognition of diverse educational backgrounds. This trend is enhancing inclusivity and innovation in the economy.

5. Consumer Choices and Greenwashing: Consumers are more informed and skeptical of greenwashing. Brands must provide transparent and verifiable information about their sustainability practices to gain consumer trust.

6. Technology at Scale: Digital transformation and technological innovation are accelerating the green transition. Skills in technology, such as drone usage and blockchain for supply chain transparency, are becoming essential.

7. Green Supply Chains: Developing green supply chains is vital for India's global competitiveness. It supports sustainable practices and reduces environmental impact across industries.

Conclusion

Sustainability Learning is a critical enabler for India's transition to a green and inclusive economy. By embedding ESG into organisational culture, investing in new skills, and leveraging technology and circular economy models, Indian companies can lead the way in climate resilience and sustainable growth. The collaboration between government, industry, and thought leaders is essential to drive these changes and ensure a prosperous future for both people and the planet.