A recent sustainability study highlights a promising trend: 86% of Indian organizations perceive a moderate to strong connection between sustainability practices and profitability, leading to a surge in investments in eco-friendly initiatives.
The SAP sustainability study highlights that 77% of businesses in India have noted that sustainability strategies contribute significantly to revenue and profit growth.
The report further details that 84% of respondents in India observed a noticeable improvement in business process efficiency due to sustainability efforts. Additionally, 58% of Indian businesses anticipate a positive financial return on their sustainability investments within the next five years, with 39% planning to ramp up their sustainability spending in the coming three years.
Paul Marriott, President of SAP Asia Pacific Japan, underlines India’s strategic importance in the global fight against climate change. He states, “The Asian market accounts for over 50 percent of the world’s emissions. As a rapidly evolving center of innovation and economic activity in the region, India has a pivotal role in leading environmental initiatives.”
Manish Prasad, President and Managing Director of SAP Indian Subcontinent, remarked on the necessity of integrating sustainability with business operations. “Sustainability is now integral to business success, not just a moral obligation. It’s clear from our findings that companies prioritizing environmental concerns tend to perform better financially,” Prasad said. He advocated for the assimilation of carbon and financial data in corporate decision-making processes.
However, the study also sheds light on challenges hindering environmental efforts. Forty percent of Indian businesses cited the absence of a comprehensive environmental impact strategy as the primary obstacle. Additional challenges include a lack of clear direction for incorporating sustainability in business processes and IT systems and a scarcity of expertise in the field.
The report underscores the growing importance of sustainability data for informed decision-making. While 40% of Indian businesses are satisfied with the quality of their sustainability data, there remains significant room for improvement. Accurate, detailed, and auditable sustainability data is essential for making effective business decisions.
Moreover, Indian businesses are increasingly demanding sustainability data from their supply chain. Seventy-eight percent of businesses report moderate to strong tracking of Scope 1 emissions, with similar figures for Scope 2 and 65% for Scope 3 emissions. Approximately 69% of businesses use this data extensively in strategic and operational planning, while three-quarters of the respondents require sustainability data from their suppliers, highlighting the critical role of environmental data in enhancing supply chain transparency and accountability.