For far too long, sustainability has been sidelined, both in India and globally. However, a noticeable shift in mindset is occurring, with companies increasingly recognizing its pivotal role. According to a survey by SAP, 86% of Indian organizations see a moderate to strong relationship between sustainability and their profitability, leading to increased investments.
"The Asian market accounts for over 50% of global emissions," said Paul Marriott, President of SAP Asia Pacific Japan. "As a fast-growing hub of innovation and economic activity, India is uniquely positioned to lead the fight against climate change. It's encouraging to see more Indian organizations recognizing this and embracing it."
The report highlights that 77% of Indian businesses have witnessed sustainability strategies contributing to revenue or profit growth. Similarly, 84% saw increased efficiency in business processes. Additionally, 58% expect a positive financial return on their sustainability investments within five years, and 39% intend to increase investments in the next three years.
Key challenges hindering adoption include the lack of an environmental impact strategy, uncertainty due to the COVID-19 pandemic, and a shortage of expertise.
"Sustainability is now a business necessity, not just a moral duty," explains Manish Prasad, President and Managing Director of SAP Indian Subcontinent. "It's inseparable from financial performance. Our study shows that businesses prioritizing sustainability are more successful. We need to consider carbon data like financial data, integrating environmental and financial decision-making."
Indian businesses are increasingly looking to unlock the value of sustainability data for informed decision-making. However, concerns exist about data accuracy. 40% are satisfied with the quality of their sustainability data, while others believe there's room for improvement.
The SAP study surveyed 4750 respondents across 21 nations and 29 industries, including 300 in India.