News

MSMEs Focusing on Governance Component of ESG
WriteCanvas News

MSMEs’ awareness of sustainability has grown, with a stronger focus on environmental measures in Q2 2024. A new Dun & Bradstreet and SIDBI Sustainability Perception Index (SPeX) for April to June 2024 shows that MSMEs value sustainability initiatives for profitability and brand image.

Highlights of the report:

As per the analysis, a larger section of medium and small firms believe sustainability efforts can improve brand image (89%), boost stakeholder appeal (88%) and profitability (84%), though they (78%) are less confident about cost reduction.

Implementation in Q2 2024 has improved over the past quarter, with microbusinesses leading in implementing sustainability practices.

The percentage share of micro-firms reporting implementation in Q2 2024 compared to Q1 2024 saw the highest increase in four categories: training on sustainability measures, compliance, sourcing from ethical suppliers, and recycling practices.

Sustainability initiatives by firms vary by age. In case of internal sustainability initiatives, younger (less than 1 year) and older MSMEs (more than 25 years) engage more on environment related measures. While MSMEs aged between 1-25 years revealed focusing on labour welfare.

For external sustainability initiatives, old (more than 25 years) and younger MSMEs (less than 5 years) are mostly involved in community welfare. While MSMEs aged between 5-25 years are engaged with activities related to the development of the environment of the local community.

Challenges and drivers:

Despite the increased awareness, MSMEs face challenges in quantifying the benefits of sustainability investments, with many concerned about returns from sustainability initiatives and having limited familiarity with social aspects of sustainability.

Global client demand is a primary driver for medium and small firms to adopt sustainability practices, while high costs, availability of capital, and lack of technical expertise are major challenges across all firm sizes.

Trends:

In this quarter, the SPeX value remained steady at 54. The awareness dimension led with a score of 59, a 9% increase, while implementation rose 35% to 49. However, overall awareness dropped 17% to 51. Implementation improved compared to the previous quarter, with micro businesses at the forefront of adopting sustainability practices. The percentage of micro firms reporting implementation saw highest increases in four key areas like training on sustainability measures, compliance, sourcing from ethical suppliers, and recycling practices.

The C-suite comments:

Dr. Arun Singh, Global Chief Economist, Dun & Bradstreet, said, “Over the past year, MSMEs have become more aware of sustainability, particularly of environmental measures, and are increasingly recognizing the profitability and cost-saving benefits of sustainable practices. However, high costs, availability of capital, and difficulty in quantifying benefits make them hesitant to deepen their expertise. To overcome these barriers, it’s crucial to reduce the cost of adopting sustainable practices and increase funding, especially for cleaner production and recycling technologies. The government’s initiative to create Climate Finance Taxonomy as announced in the Union Budget in July 2024 will be key in directing capital toward climate-resilient infrastructure, aiding MSMEs in achieving energy efficiency and emission reduction targets”.

Dr. R.K Singh, CGM, SIDBI stated, “SPeX endeavours to be a tracker of MSMEs’ intent and preparedness to go for green investments. This also helps us to customize our solutions aimed at inducing MSMEs to align to value chain expectations on responsiveness. SIDBI – D&B Sustainability Perception Index Survey, April – June 2024 indicates slight stability in the SPeX score, indicating the need to effectively scale up and augment the capacity building, orientation and awareness on enterprise side. The level of implementation needs a fillip across all sizes of enterprises. SIDBI has prioritized the Greening of Enterprise Ecosystem. SIDBI’s Panchtatva missions viz. Energy Efficiency, E-Mobility, Renewable Energy, Circular Economy and Adaptation Finance (Nature based Solutions) are oriented to enhance the acceptability amongst MSMEs to ‘Go Green’ and adopting Environmental & Social (E&S) practices for holistic improvement in the enterprise thereby making more resilient, competitive, sustainable operations / practices / products / services.”

Tags: #Sonal Desai, Dr. Arun Singh, Dr. R.K Singh, Dun & Bradstreet, Dun & Bradstreet and SIDBI Sustainability Perception Index (SPeX), ESG, Governance, Micro finance, microfirms, MSME, Renjini Liza Varghese, SIDBI, SPeX, sustainability, WriteCanvas

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Three important Sustainability Updates
WriteCanvas News

Oil India, NABARD, and a Union Minister highlighted the importance of sustainability and ESG in three separate incidents.

Oil India

Oil India has joined the Oil and Gas Decarbonization Charter.

By signing up for the Oil and Gas Decarbonization Charter (OGDC), Oil India Limited (OIL), a Maharatna CPSE and a major player in the exploration and production of natural gas and crude oil, has demonstrated its commitment to sustainable energy practices.

“This significant step underscores OIL’s dedication to reducing carbon emissions and zero flaring initiatives and contributing to a greener future for the nation,” Oil India stated in a regulatory filing. Oil India said it is decarbonizing at a rate that will enable it to reach Net Zero by 2040.

NABARD

In the second instance, the National Bank for Agriculture and Rural Development (NABARD) products for rural institutions, with India experiencing an annual impact of $30 billion due to climate change.

Speaking at the FIBAC conference in Mumbai, KV Shaji, Chairman, NABARD, said, “…we are working with some international agencies to set up a carbon fund. This is because in the West a lot of developments are happening in the carbon credit market. We need to leverage those developments and our appetite for India.”

“We are working with the Food and Agriculture Organization (FAO) for setting up the carbon fund in India. We are also setting up some training institutes where we will have a climate change establishment,” he said.

Thirdly, Union Minister of State for Corporate Affairs and Road Transport and Highways, Harsh Malhotra emphasized India’s commitment to responsible business practices for sustainable development and ESG, emphasizing inclusiveness in achieving Viksit Bharat. He urged Indian businesses to adopt ethical and sustainable practices.

Justice Dipak Misra, former Chief Justice of India, highlighted the ethical importance of corporate governance and the role of Environmental and Social Responsibility (ESG) policies in ensuring businesses operate within justice and fairness. He emphasized that ESG is a philosophical thought and should not be treated as a legal compliance task. Misra urged nations to change the philosophy of commercial concerns and make corporate and individual awareness of the new lexicon of global thinkers.

Dr. Ajay Bhushan Prasad Pandey, Director General and CEO, IICA, emphasized the significance of responsible business conduct in India’s sustainable development agenda. The IICA’s School of Business Environment promotes responsible conduct through policy advocacy, research, and capacity-building programs.

Mr Malhotra and Justice (Retd.) Misra inaugurated the National Conference on Responsible Business Conduct 2024 recently.

The conference emphasized the importance of responsible business practices for sustainable development and the role of ESG, particularly inclusiveness, in achieving Viksit Bharat.

Key speakers included UNICEF Country Representative Cynthia McCaffery and ACCA CEO Helen Brand OBE. The conference also released a book and launched an online Data Portal on Business Responsibility and Sustainability Reporting.

Key discussions included ‘Responsible Governance: The Leadership Dialogue’, ‘Nature Restoration: Role of Business’, and ‘Sectoral Adaptation of the National Guidelines on Responsible Business Conduct in the Ready-Made Garment Sector’.

Tags: ACCA, Ajay Bhushan Prasad Pandey, Cynthia McCaffery, ESG, Food and Agriculture Organization (FAO), Harsh Malhotra, Helen Brand OBE, IICA, Justice Dipak Misra, KV Shaji, NABARD, Net zero, net zero by 2040, Oil and Gas Decarbonization Charter (OGDC), Oil India Limited (OIL), UNICEF, Union Minister of State for Corporate Affairs and Road Transport and Highways, Viksit Bharat

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The Importance of ESG Framework and Integration into Business
WriteCanvas News

Two GoI officials recently underscored the significance to integrate ESG into business practices and the significance of an ESG framework.

The two officials are V Anantha Nageswaran, Chief Economic Advisor; and Inderdeep Singh Dhariwal, Joint Secretary, Corporate Affairs Ministry, Government of India. They addressed CXOs at an Indian Institute of Corporate Affairs (IICA) conference recently.

Integrating ESG into Business:

Mr Nageswaran emphasized India’s need for improved ESG practices, citing resistance from international bodies and forums to these measures.

He said that responsible business in India differs from Western interpretations, and urged companies to consider ESG integration into their business practices.

The CEA said that India should prioritize climate adaptation over emission mitigation, as it is not the primary contributor to emissions.

He alleged that developed countries are imposing standards on developing countries after reaching a certain income threshold at national and social level.

He took a dig at global leaders and organization heads for flying private jets to attend climate change or ESG conferences, stating that such behavior undermines credibility.

“In the process of earning the current top line and bottom line if businesses end up destroying the productivity and income earning capacity of today’s younger cohort then down the road it rebounds on businesses in terms of much lower aggregate demand and economic growth. It becomes a lose-lose proposition down the road,” he said.

Mr Nageswaran said that imposing costs on MSMEs may hinder their freedom of operation and global competition, and should be balanced based on national and social context.

The ESG framework:

Mr. Dhariwal said that the government wants to set guidelines for businesses regarding ESG practices, rather than imposing regulations.

According to him, the regulations might need to be sector-specific and different for mining companies and service-oriented businesses.

“We will provide a framework. The companies must contribute to evolve it. It is a trust-based relationship. We are listening to the stakeholders. The requirement has to echo from the source,” he said.

Tags: #Sonal Desai, Climate, Climate adaption, Corporate Affairs Ministry, Emission mitigation, ESG, ESG framework, Government of India, IICA, Inderdeep Singh Dhariwal, Indian Institute of Corporate Affairs, MSMEs, News, Regulations, Renjini Liza Varghese, V Anantha Nageswaran, WriteCanvas

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Blog

The Climate-Social Story of Kerala
Renjini Liza Varghese

Many of you may wonder why I titled my blog: The Climate Social Story of Kerala.

The main reason is the unprecedented social connect demonstrated by the local people and communities to reach out to the distressed, post-Wayanad tragedy.

Resilience

What caught my attention first was the cooperative approach of the community and the government to handling a climate incident of this scale. I was impressed by the fast pace of mobilization for search and rescue operations, medical support, and food and shelter.

Evolving social fabric

The second, and most important point for me was the human connect and compassion for the orphaned children and the elderly. This at a time when many families are ruthlessly shifting their parents to old age homes in the state.

Another thing that caught my attention was the manner in which people came forward to help the children and the elderly.

I am listing below three key examples:

Breast-feeding infants
Adopting orphaned children
Adopting elderly people

The kindness no doubt manifests the significance of the S-factor of the social component in ESG, which is at play in this instance.

Unlike corporate compliance, which mandates enterprises conduct business ethically and socially responsibly or spend CSR funds for social good, this kindness wave was motiveless.

It was a perfect setting of how people in a tight-knit community can selflessly put others before them, open doors to neighbours on even strangers in this case who may have been washed in the torrent from far-off villages.

Beyond the blame game:

The third thing that impressed me was a united political soul, one bared of ideological and political differences.

The netas were united and concentrated on search and rescue during the tragedy instead of gaining political mileage.

This rare unity in politics empowered the chief minister to take quick decisions and focus on saving maximum lives (humans and animals), and other rescue efforts.

Ofcourse, as is the normal course in politics, there was a fall-out. But that was after the emergency had passed and the primary work was completed.

From my perspective, what is now required is hard-core action. And here are some of the immediate action points I can think about.

Educate the local bodies and the communities about the impact of climate change.
Widen the scope of discussion and include the communities to prepare for climate incidents.
Use technology for prediction and mapping
Create a social system that can spearhead rebuilding
Create a dedicated fund for the entire activity outside the existing funds.

Our take:

The people of Kerala have set an example for the rest of the country and the world to follow. Such humanitarian acts go a long way in not just keeping the social fabric connected but also igniting HOPE in people that All’s not Lost yet.

Tags: 'S' Factor, #Sonal Desai, beyond compliance, Climate Social story of Kerala, ESG, Renjini Liza Varghese, Social fabric, The Kerala Story, Wayanad landslide, Wayanad tragedy, WriteCanvas

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IICA, HP India, Launch ESG Professional Program
WriteCanvas News

HP and IICA have launched an ESG Professional Program. The HP Future Impact Leader – IICA Certified ESG Professional Programme, aims to equip organizations with the skills to lead sustainable initiatives.

The scholarship-based program is a significant step towards building a sustainable and responsible corporate ecosystem.

Dr. Ajay Bhushan Prasad Pandey, Director General & CEO, IICA and Chairperson, NFRA, and former Secretary of the Ministry of Finance, Government of India, delivered the keynote address.

He spoke about the growing importance of ESG in the global business landscape, highlighting its role in attracting investors and stakeholders.

He emphasized the importance of adopting ESG principles in business operations to identify cost-saving opportunities, reduce energy consumption, and minimize operational costs. He shared insights into the need for mandatory ESG reporting practices to avoid future reputational and compliance issues.

Dr. Pandey discussed the role of ESG regulations in India’s growth and development, motivating delegates to integrate ESG principles into their strategies.

He stressed the importance of mandatory ESG reporting practices to avoid reputational and compliance issues in the future.

He cited the 1972 UN Conference on the Human Environment and the 2015 UN Summit, emphasizing the importance of sustainable development.

According to him, adopting ESG core principles in business operations helps identify cost-saving opportunities, lower energy consumption, reduce resource waste, and minimize operational costs.

He highlighted the call by Prime Minister Narendra Modi to redefine the PPP (Pro-Planet-People) in the G20 Delhi Declaration.

He also referred to new research co-authored by Wharton’s Aline Gatignon, which offers insights into how various firms allocate Corporate Social Responsibility (CSR) funds across different dimensions.

Why is ESG important?

Rajeev Nair, Legal Head, HP India, underscored the importance of integrating legal frameworks with sustainable business practices. He spoke about HP’s commitment to sustainability and innovation, and how this program aligns with the company’s vision of creating a positive impact on society and the environment.

Geetanjali Master, Public Private Partnership Specialist, UNICEF India, spoke about the need for collaborative efforts required between public and private sectors to achieve sustainable development goals. Her address underscored the importance of partnerships in driving impactful ESG initiatives.

Dr Garima Dadhich, Associate Professor & Head of the School of Business Environment, IICA, shared the critical role of shaping sustainable business practices and the importance of developing ESG professionals and impact leaders.

Tags: #Sonal Desai, Dr Garima Dadhich, Dr. Ajay Bhushan Prasad Pandey, ESG, ESG Professional Program, ESG regulations, G20, Geetanjali Master, HP Future Impact Leader – IICA Certified ESG Professional Programme, HP India, IICA, Impact leaders, News, Rajeev Nair, Renjini Liza Varghese, Sustainable business practices, Sustainable development goals, UNICEF, UNICEF India, WriteCanvas

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Is Corporate India Fuelling Climate Change?
Sonal Desai

Is Corporate India to be blamed for recent climate-induced disasters?

This is an edgy query and can lead to a series of furious debates. People from all walks of life will comment on whether corporate India is or is not responsible/partly responsible for the tragedy that has been continuously striking our country.

But that dear reader, is not my intent in posing the question. Ever since the tragedy struck India, I have noticed reactions: 1. Measured 2. Passionate from those affected 3. Dispassionate –corporate India and the layman and 4. Ugly: The politicians.

While I do not expect much from the politicians who are busy playing dirty in the Parliament and the state assembly, it is the common people (who are paying taxes for better infrastructure and amenities) who are the first on the field during rescue operations. Why do local corporates do not participate?

Climate change, respected employers also impacts you! If your factory or office is in a vulnerable terrain, nature’s fury will not exclude you.

I read sustainability, ESG, and BRSR reports in which you, dear corporate detail spending crores of rupees on CSR projects. That is a blessing for India for the initiatives and the impact (yes because you measure the matrix) are promising. Contextually, even if each corporate adopts one of the vulnerable areas I believe that climate change can be prevented to a large extent.

There are siloes of examples of how various corporate entities have adopted villages or clusters of rural areas and are working with the local community in fields such as health, education, infrastructure, and employment. We just need to include ENVIRONMENT and CLIMATE in this repository.

What next?

Bringing everyone to agree on Climate mitigation is crucial. A coordinated effort is required to stop the initiatives in silos and convert them into a collective effort.

It also means including morality as a KPI of your business and especially an essential matrix of ESG reports. Morality, Purpose, and Profit can go hand in hand. This is the need of the hour: SAVE the PLANET, SAVE HUMANITY, HELP PREVENT CLIMATE CHANGE.

Large companies in each domain or sector have ample knowledge of the terrain, the topological factors, and numerous studies by local experts to understand the climatic impact of the project. The impact of large-scale construction on the area or the ecology, deforestation is turning its head toward us. We are feeling the heat as climate-induced heat strokes increase.

Politicians will provide you with the environmental clearance for projects. Will your greed for profits allow you to trample over the environmental issues and crush the last chance to conserve/save Mother Earth?

As an example, I am touching upon the construction sector. Experts have pointed out the direct correlation between unscientific developments in ecology and climate incidents. The Mumbai flooding, and recent Himalayan and Kerala tragedies are a case in point.

Cartelization or contracts are being thrown to cartels and blacklisted companies. This has to stop. The winner may be the lowest bidder, but is the company qualified for the job? Does it have the requisite expertise and clearance to take on the project?

Our take:

And I am sure, accountability and ownership of this scale will benefit not just the brand involved but also involve the stakeholders and community at large. For sure, it will prevent displacement and migration and provide employment opportunities.

By no means is WriteCanvas anti-industrialization. We are an enterprise and can very much relate with the teething troubles of a new project, or the cost a business has to bear to bag a new one.

We do appreciate the contribution of Corporate India in propelling India’s economy and the growth of our country across sectors.

We are of the view that a practical approach involves involving all stakeholders, including companies, investments, technology, and policy, to not only prevent climate disasters but also predict potential ones, thereby reducing their impact.

Remember, we have failed to limit temperature rise to 1.5 degrees of the pre-industrial level, accepting the breach of the 2 degrees threshold of the Paris Agreement.

The fact remains that any growth has to be inclusive, sustainable, and responsible.

Tags: #Sonal Desai, blog, BRSR reports, Climate Change, Climate disasters, Climate mitigation, Climate-induced disasters, Corporate India, CSR projects, ESG, Paris Agreement, Policy, Renjini Liza Varghese, Stakeholders, sustainability, technology, WriteCanvas

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DEI Weighs High, But Shunted by Corporates?
Sonal Desai

Two recent developments caught the DEI world by storm.

1. Microsoft laid off its DEI team

2. John Deere rejected DEI policies

These are just two examples of large multinational firms that decided to put profits before people.

Sadly, the number of enterprises side-lining DEI teams, casually rejecting policies, and scrapping DEI teams is on the rise. The issue came to the limelight because two major organizations, each a giant in its industry segment, decided to lean on DEI.

Globally, similar reports by many organizations going slow on DEI are coming out.

Corporate reality:

Although consolidated data on the issue is yet to be established, the trend is contrary to DEI reports by leading market analysis and advisory companies.

Market analyst reports indicate that most corporates have a DEI strategy in place and that these organizations are faring better in the ESG Index.

For example, recent S&P 1500 data shows that firms with diverse leadership consistently earn higher environmental ratings from MSCI, an ESG data provider in the United States.

The scenario is not so different at home in India. Several conversations with leading CXOs and decision-makers in large corporates across industry verticals reveal that these enterprises lag in DEI.

This is not because they do not have the necessary strategy or policy in place, but because revenues, business, and investors take center stage. And the two events are not harmonious.

Cover-ups?

“It is more about corporate culture. We have started implementing DEI, but that is more towards women empowerment,” a leading CXO told me.

Another corporate consultant asked to survey a client’s employee satisfaction index for DEI was gently warned against asking probing questions. He framed the questions in such a manner that the responses were indexed on a scale of 1 to 10. Needlessly to say, there was no qualitative analysis or follow-ups. The company proudly presented its DEI report in the ESG and integrated components of the annual report.

The World Economic Forum’s Global Gender Gap score in 2023 stands at 68.4%, with India ranking 127 out of 146 countries in terms of gender parity.

These frank admissions coincide with the recent findings of the WriteCanvas-ASSOCHAM survey. The survey reveals that the social component of which DEI is a formidable part is most often subsumed with CSR, governance, and environment. Three aspects stand out:

· Corporates equate gender equality with DEI. Nonetheless, women’s representation at the board level was marginalized

· Corporates have all the necessary DEI policies covered under the Company’s Act and global mandates in place. The reality is that not many have adequate physical and digital infrastructure for persons with disabilities.

· Community development, equal access and opportunity, and child labor are gaining ground as part of CSR activities.

Are things turning around in India?

The Companies Act and SEBI mandate women’s representation on Indian boards, leading to remarkable growth in women’s participation on boards.

CareEdge advisory analyzed the top 1000 companies’ board composition from a diversity perspective, observing upticks in the top 150 listed companies and trends in big manufacturing organizations prioritizing inclusion of different genders and persons with disabilities, observes Swati Agrawal, President CareAnalytics.

However, there is no focused regulation or policy regarding Diversity, Equity, and Inclusion (DEI) in India. The focus must be on addressing gender gaps and gender equality, while sustainability reporting focuses on gender gaps and gender equality. The industry must offer employment opportunities and address the banking requirements for employees and customers.

The change can be brought about just in the manner in which the shareholders are forcing corporates to consider environmental concerns to fight climate change. They must closely monitor how corporates implement DEI and ensure that the organizations are not just tick-boxing against all the parameters!

My take:

I believe that DEI adoption in its entirety will take a while. India is at the cusp of implementing DEI. Globally, enterprises are at least taking a small step towards diversity, equity, and inclusion.

Many organizations have promptly begun back-to-work policies for women. This is certainly a positive step. The shift is happening in the corporate sector, and that is a start.

Moreover, business leaders, stakeholders, and shareholders should understand that DEI is not just about improving diversity, but embracing the host of benefits that come along with it.

But there is also a nagging fear. Are Microsoft, John Deere and the ilk setting a precedent? Providing impetus to organizations to exploit loopholes and circumvent the regulations?

Tags: #Sonal Desai, blog, CareEdge, Climate Change, Companies Act, CSR, DEI, DEI policies, ESG, ESG Index, Global Gender Gap, John Deere, Microsoft, MSCI, Renjini Liza Varghese, SEBI, Sustainability reporting, Swati Agrawal, World Economic Forum, WriteCanvas, WriteCanvas-ASSOCHAM survey

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How Prepared Are the Indian CFOs for Climate Reporting and Compliances?
WriteCanvas News

One in five CFOs in large enterprises is prepared to meet upcoming requirements to report and seek external assurance on climate-related risks and opportunities.

An Accenture survey indicates that despite the majority of executives anticipating an increase in sustainability reporting requirements in the coming years, well-prepared executives are more likely to view sustainability as a potential opportunity for their companies.

The company has released the report during a period of increasing global sustainability regulations and legislation. These include EU’s CSRD regulation and CBAM, and the US SEC’s climate disclosure rules; measures to enhance market transparency, set carbon content-based import prices, and provide grants for sustainable activities.

Key findings:

According to the survey:

90% of respondents agreed that ESG issues will be a major focus for them over the next five years.
Nearly 85% of respondents said they expect mandatory disclosure to increase over the next three years.
Over 80% of respondents indicated that they are under pressure from three or more stakeholder groups to take sustainability-related action. The most frequently mentioned groups exerting pressure are shareholders, board members, and regulators.
Just 22% of CFOs reported feeling well prepared to disclose on climate-related risks and opportunities and to seek external assurance on their disclosures.
Additionally, only 10% of CFOs felt well prepared to meet these reporting requirements in all sustainability areas, such as resource use and circularity.

These results suggest that finance executives are feeling the pressure of the changing regulatory landscape. The findings suggest that even though finance executives are under increasing pressure to address sustainability issues, most do not yet feel ready to meet many of the new requirements.

Ratings per ESG measurement:

The study found a wide range of preparedness across the nine capabilities.

In this, it rated 12% of businesses as weak, 73% at a moderate level, with some having automated ESG data capture and most approaching the integration of ESG into their management systems, and 15% as having strong capabilities, including gathering comprehensive ESG data, automatically monitoring quality, utilizing ESG data to enhance business decision making, identifying potential ESG risks with predictive analytics, and developing complementary skills within their finance and sustainability teams.

According to the survey, 68% of the “weak” group’s companies reported finding it difficult to strike a balance between profitable growth and sustainability, compared to only 20% of the “strong” group. Additionally, “strong” companies were more than twice as likely (20%) to already view sustainability as a significant value driver for their organizations than the “weak” group (9%).

The study revealed a noteworthy association between businesses that perceive sustainability as a potential area for growth and opportunity and those that are well-prepared for ESG measurement and management.

How prepared are the Indian CFOs?

Indian Chief Financial Officers (CFOs) are the most optimistic in the APAC region, with 94% of them expressing confidence in their country’s economic future, according to the most recent Deloitte Asia Pacific (APAC) CFO Survey 2023 which was released in September last year.

Indian CFOs, also demonstrated an urgency when it came to putting in place suitable processes to comply with climate requirements. Approximately 59% of Indian CFOs plan to implement the required processes in the future, and 37% have already done so. Twenty-two percent of Indian CFOs were found to be adequately prepared to handle ESG challenges, according to the survey.

Using more sustainable materials (55 percent), encouraging or requiring suppliers and business partners to meet specific environmental sustainability criteria (53 percent), and adopting public policy positions that promote sustainability and actions to address climate change (65 percent) were the top three proactive sustainability initiatives by Indian CFOs.

Our take:

India is at the cusp of entering the ESG/sustainability mainstream. Global compliances and domestic mandates such as the BRSR Core are promoting the community to closely monitor the corporate ESG strategy, compliance and reporting. They are working closely with the BU Heads as well as the ESG teams and external partners to not just understand the new concepts, but also the ramification of non-compliance and the financial impact on the business!

The regulatory mandates in India have evolved to be more supportive and balance growth and sustainability.

Tags: #Sonal Desai, Accenture, BRSR Core, CBAM, CFOs, Circularity, Climate Reporting and Compliances, Climate-related risks, CSRD, Data, Deloitte, Deloitte Asia Pacific (APAC) CFO Survey 2023, ESG, ESG measurement and management, Indian CFOs, Renjini Liza Varghese, Sustainability reporting, WriteCanvas

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New L&T CMD S N Subrahmanyan Outlines ESG Plans
WriteCanvas News

Mr. S N Subrahmanyan, who replaced AM Naik as the CMD of L&T outlined the company’s ESG plans during his inaugural speech at the company’s 79th AGM.

The CMD outlined plans to enhance green energy capacity, encourage the participate of women in the workforce and community development.

He said the company is eyeing opportunities in the green energy sector and is leveraging technologies like AI and IoT to create new opportunities.

“L&T has digitally connected over 15,000 assets across its global projects and manufacturing bases to a central IoT platform. All these initiatives enable the company to make project execution faster, safer, cleaner, economical and more sustainable,” Mr S N Subrahmanyan said.

The renewable energy thrust:

Mr Subrahmanyan outlined various projects the company carried out in FY2023–2024 as part of its For A Better World vision.

These include electrifying over 3,400 track km of mass transit systems, commissioning 2.2 GW of solar capacity, 6.2 GW of nuclear power, 3.5 GW of hydroelectric power, and creating 14.8 million square feet of green buildings.

It must be noted that the company had last year announced its plans to invest $12 billion over the next five years will on green energy.

L&T will also contribute a minimum of $2 billion to its inaugural green hydrogen project as part of the same. With an investment of almost $4 billion, the company hopes to have a capacity of 2-3 million tonnes of green hydrogen and ammonia, Mr Subrahmanyan said.

Women in the workforce and community development:

L&T aims to increase the participation of women employees in the company to 10 percent by FY2025-26. It has launched exclusive career-assisting schemes for females and women-friendly facilities in offices.

The company has benefitted more than 1.6 million people. It has planted 4 million saplings globally and helped build resilience in rural communities through its Integrated community development programme, the CMD said.

Tags: #Sonal Desai, AI, AM Naik, Community development, ESG, Green buildings, Green Energy, Green hydrogen, IoT, L&T, Renewable energy, Renjini Liza Varghese, S N Subrahmanyan, Women in the workforce, WriteCanvas

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Mindspace REIT Secures Rs 650-crore SLL bond from IFC
WriteCanvas News

Mindspace Business Parks REIT has secured a Rs 650 crore sustainability-linked bond from the International Finance Corporation (IFC), the private sector arm of the World Bank Group, the company announced said.

The coupon of the 7-year bond is linked to Mindspace’s commitment to achieve certain ESG targets towards building a greener eco-system.

“We are thrilled to announce another significant milestone in our sustainability journey as we become the first Indian REIT to issue sustainability-linked bonds. International Finance Corporation fully subscribed to this issuance. This follows our maiden green bond issue in March 2023. Post this issuance our cumulative green/sustainability-linked financing now stands at Rs 1,860 crore, strengthening our commitment to responsible growth,” Ramesh Nair, CEO, Mindspace Business Parks REIT, said.

It must be noted that the company has aligned its ESG strategy to 10 out of the 17 UN Sustainable Development Goals (SDGs).

Some of the ESG targets include reduction of greenhouse gas (GHG) emissions, increasing the share of green certified area for existing buildings (under operations and maintenance), and reduction in energy intensity.

Tags: #Sonal Desai, ESG, ESG targets, Greenhouse gas (GHG) emissions, IFC, International Finance Corporation, Mindspace Business Parks REIT, Ramesh Nair, Renjini Liza Varghese, SDGs, Sustainability-linked bond, Sustainable development goals, World Bank, WriteCanvas

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Presenting a right sustainability narrative imperative to achieve SDGs: IMC banking conference
WriteCanvas News

The UN’s 17 SDGs address critical issues like access to clean water and sanitation, sustainable energy, and building sustainable cities. Importantly, the SDGs are interconnected. Progress on one goal can support the progress of the other. For example, ensuring access to clean energy (SDG 7) can contribute to reducing poverty (SDG 1) and improving health outcomes (SDG 3). This interconnectedness highlights the need for a balanced approach to social, economic, and environmental sustainability. This was the crux of IMC’s 14th Annual Banking & Finance Conference.

Experts discussed the pivotal role that the banking, non-banking, and financial industries is playing in the government of India’s ambitious financial inclusion drive during a day-long event.

Inaugurating the conference, Himanish Chaudhuri, Partner and Financial Services Industry Leader, Deloitte India, said that India is the poster child of financial inclusion. “We have conquered the complexities of the problem by using technology. We are data-rich. We want to go from being information-rich to being data-rich to reach the insight-rich stage. This will help us to drive last-mile financial inclusion.”

One such panel discussion was on: How Financial Institutions can play a Pivotal Role in Achievement of Sustainable Development Goal

The panel included Manish Kumar, Head of ESG & CSR, ICICI Bank Ltd, Renjini Liza Varghese, CEO, WriteCanvas, Smitha Hari. President (India), auctus ESG, Heena Khushalani, Partner, Climate Change and Sustainability Services, EY India, Jitesh Shetty, Co-Founder/CEO, Credible ESG. The panel was moderated by Swati Agrawal, CEO & President – Advisory, CARE Analytics and Advisory Pvt. Ltd.

Some edited excerpts:

Manish Kumar

All conventional sources that specify and use green are termed green bonds. Some new instruments, like securitization, have been introduced in the market. In this case, a pool of receivables with sustainability or green as an end-use can be securitized as a source for raising liabilities.

Heena Khushalani

We have witnessed tremendous momentum being created at the awareness level of green lending among banks during the past year. Has it progressed? Not really. They’re trying to figure out how to do it while maintaining the economics, which is why it’s not progressing because of everyone’s current predicament or dilemma.

Smitha Hari

Projects related to the Sustainable Development Goals are seen as having a high risk and low return when looking at the capital stack. For these, the grants or philanthropies come with the lowest rate, followed by government subsidies, equity, and debt. Dfis and MDB Capital can influence the market with diverse instruments in the form of credit enhancements. Instead of directly lending, if they come in with a credit enhancement, that can multiply the market

Renjini Liza Varghese

The absence of a clear narrative, inconsistent delivery, and missing data points present the three main obstacles to effectively communicating with the stakeholders. Filling in the blanks with data is crucial to constructing a consistent story.

Jitesh Shetty

Customers want data to flow in a seamless automated way. But the challenge is from within the bank or the enterprise. They don’t have the right owners of the data. The data not in the right place. But that is changing now with BRSR.

Other panels also touched upon ESG and rising climate risk :

Dr. Srikanta K. Panigrahi, Director General and Distinguished Research Fellow, Indian Institute of Sustainable Development (IISD), New Delhi

These days, risk finance is becoming increasingly popular. Thanks to the RBI’s climate-related financial risk disclosure on the public platform, leading banks like the State Bank of India have developed risk assessment procedures and are hiring climate risk officers in prime branches. The banking sector is empowering the green offshoot.

Rajiv Anand, Deputy Managing Director, Axis Bank Limited

Axis Bank has a board-level ESG committee, with its chair also serving on the credit committee. When it comes to green financing, we view the world through two lenses: our credit lens, which acts as a ban, and our ESG lens.

Tags: #Sonal Desai, Auctus, banking conference, Banks, BRSR, Climate Change, Credble ESG, ESG, green bonds, Green Funding, ICICI bank, IMC, Jitesh Shetty, Manish Kumar, Renjini Liza Varghese, SDGs, Smitha Hari, sustainability, Swati Agarwal, UN, WriteCanvas

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Why is the Social Component Important in ESG?
WriteCanvas News

Indian businesses are re-evaluating the social component’s importance as they create an inclusive corporate culture and formulate their yearly ESG strategy.

The synopsis is a brief outline of the status of the social component in India and a survey—an abbreviated version of which was recently released.

The survey jointly conducted by WriteCanvas and the DEI Committee of ASSOCHAM South, also revealed the need for organizations to address gender disparities and promote gender diversity across various roles to create more inclusive work environments.

As Renjini Liza Varghese, CEO, WriteCanvas, noted, “Women bear the brunt of the consequences of climate change. These observations align with the results of our survey, Why Is S the Blind Spot in ESG? In hindsight, all facets of society are impacted by climate change.”

DEI across sectors:

Overall, the social component of ESG is receiving more attention from all directions. Businesses that prioritize social responsibility and include it in their business continuity plan will gain more value in the future, she said.

On the education front, Ms Manasa Nagabhushanam, Director, DEI Committee, ASSOCHAM South and Director, Ramaiah Institute of Management, Bengaluru, noted that the trend has shown a significant shift in the number of women pursuing teaching as a profession. “India’s gross enrolment ratio for higher education is only 23% for girls, compared to 14% for boys.”

Highlighting the role of corporates, L Sridhar, Head, ESG, Bangalore International Airport Limited, said, “Woman empowerment is crucial in addressing climate change, as women are most affected by its effects. Our water harvesting system addresses this issue.”

The airport is introducing women firefighters and e-taxis with pink-colored taxes, providing more comfort to female passengers. This initiative is part of a broader scheme to enhance airport services.

Dr Suma Krishnaswamy, Founder, Cambium Biotechnologies, was of the view that women traditionally have a greater receptivity for preservation. “As a woman, you tend to conserve and preserve. It’s part of our psyche. To that extent, we will be better champions for sustainability and preservation conservation efforts. And, I think women should be leading / holding a leadership role in these projects.”

Taking the narrative forward, she said, “Traditional healers, often women, pass down knowledge through generations, making them champions of this knowledge. They create a repository of vital knowledge, which is not documented, making their contribution to conservation significant.”

Tags: #Sonal Desai, Assocham South, Bangalore International Airport Limited, Business continuity, Cambium Biotechnologies, Climate Change, Dr Suma Krishnaswamy, ESG, ESG strategy, Gender disparities, L Sridhar, Manasa Nagabhushanam, Renjini Liza Varghese, Social, Social responsibility, WriteCanvas

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Offset Measures, Implementation, Key to Tackle Climate Crisis
WriteCanvas News

Climate change was the core of an interesting panel discussion.

The key takeaways from the ASSOCHAM webinar titled, Leading the way: Driving environmental innovation held on the World Environment Day 2024.

The panel comprising Dr Mansa Nagabushanam – Chair DEI Assocham South Director, Centre of Excellence for Sustainability, and Director (Academics, research and administration), Ramaiah Institute of Management, Bangalore; L Sridhar, ESG Head, Bangalore International Airport Limited, Dr Suma Krishnaswamy, Founder President, Cambium Biotechnologies, was moderated by Renjini Liza Varghese, CEO, WriteCanvas.

Renjini set the ball rolling for the webinar with startling statistics: India experienced over 165 deaths in June, highlighting the urgent need for fresh solutions and a collaborative approach to mitigate climate change. She initiated the discussion by highlighting the increasing number of climate casualties, particularly due to rising temperatures.

Key takeaways:

Dr. Mansa Nagabhushanam, Chair DEI Assocham South Director, Centre of Excellence for Sustainability, and Director (Academics, research and administration), Ramaiah Institute of Management: Political leadership vital to equip policymakers to create effective action plans

Rapid urbanization in Bangalore has led to a rise in groundwater levels, potentially disrupting the cosmic cycle if water is depleted.
The industry body has a significant influence on policymakers and stakeholders, but this awareness must be converted into action for the country’s future.
Political leadership is crucial for providing policymakers with the necessary information, data, and research to develop effective action plans.
Implementation is the main challenge, necessitating a mindset change and awareness, with a bottom-up approach being more effective in sustainability.
Incubation centers are fostering start-ups in the sustainability sector, both tech and non-tech-based. For example, we have created a self-learning course on sustainability for corporates, ranging from basic to mid-level and senior managers, featuring gamified content. The multi-stakeholder approach involves policy makers, industry bodies, and even MSMEs.

Dr. Suma Krishnaswamy, Founder President, Cambium Biotechnologies: Synergy between self-help groups and NGOs needed to create a multi-stakeholder circular economy

Farmers face challenges due to excessive or insufficient water, long fertilizer usage, and ecosystem imbalance.
The green revolution has increased depletion of fertilizers, necessitating awareness and government support for reversing to natural farming.
Farmers must adopt organic methods to preserve soil, ecosystem, and consumers.
For 20 years, we have advocated for natural farming, requiring farmers to convert to natural methods instead of fertilizer or pesticides.
However, obtaining a license for plant-based pesticides is challenging due to their non-agrochemical category.
This creates a gap in efficiency and requires policy changes at individual levels.
Plant-based pesticides could be a starting point, with cooperative movements like women’s self-help groups attempting to manufacture these at a cottage level.
To market a circular economy, a synergy between self-help groups and NGOs is needed to create a multi-stakeholder circular economy.
Indigenous agriculture should balance conservation and productivity, focusing on species diversity and soil preservation.
Advanced agriculture may be profitable, but it may harm the ecosystem in the long run.
Traditional, healthy, and nutritive varieties are disappearing, while high-yielding crops may be profitable but detrimental to the ecosystem.
However, there is a gap in ideas and resources, as there is no consensus on how to effectively implement these solutions.

Use Case: Bangalore International Airport Limited

L Sridhar, Head, ESG, Bangalore International Airport Limited (BIAL): Addressing climate change risks and implementing a business continuity plan is crucial

Our airport sustainability strategy 2030 is focused on six key pillars: water stewardship, net zero carbon emissions, community-aligned noise management, sustainable procurement, sustainable mobility, and circular economy.
BIAL, a carbon neutral airport since 2017, is water positive with a 2.36 score and plans to achieve 100% of its portable water requirements through rainwater harvesting.
The organization is voluntary in contributing and taking up activities, not being regulated by many disclosures due to being a non-listed entity.
Management emphasizes the need for strong commitment and support for the organization’s sustainable agenda, emphasizing the importance of a methodology for identifying opportunities and collaborating effectively.
Economic sustainability is crucial for preserving people and the planet, and growth should not only be economic but also consider the people and planet aspects.
As passenger volumes increase, terminal expansion is necessary.
Addressing climate change risks and implementing a business continuity plan is crucial. Consistency is essential for sustainability journeys.
To manage the e-factor, the highest green-rated building is built, focusing on resource efficiency, circular economy, water stewardship, net zero emission energy efficiency, indoor air quality, and natural lighting.
Innovation is crucial for mitigation, and balancing the three Ps in infrastructure expansion strategy can help overcome challenges.
Sustainable growth and responsible growth are essential, and aspiring professionals should become sustainability professionals.
An architect should align with sustainability principles and contribute to innovation, especially in process areas.
Collaboration is key in delivering sustainability ideas, and a separate innovation team should collaborate across the organization.
Change effects should occur everywhere, and sustainability should be seen as a payback, regardless of the short, medium, or long term outcomes. Aligning with these principles can lead to fruitful concepts and successful implementation.

Tags: #Sonal Desai, BIAL, Carbon, Dr Suma Krishnaswamy, Dr. Manasa Nagabhushanam, education, ESG, innovation, L Sridhar, natural farming, netzero, Ramaiah Institute of Management, Renjini Liza Varghese, Water positive, WriteCanvas

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Is Social the Blindspot in ESG?
WriteCanvas News

We’re excited to announce the release of a concise version of our first research report on ESG (Environmental, Social, and Governance)! The report was unveiled at a recent Assocham webinar in honor of World Environment Day 2024.

With India’s rollout of the Business Responsibility and Sustainability Reporting (BRSR) framework, we recognized a potential gap in how companies address the “S” (social) aspect of ESG. Our research suggests that many organizations are neglecting this critical area or limiting their social efforts to Corporate Social Responsibility (CSR) initiatives.

This led us to delve into the question: Is the Social Factor the Blind Spot in ESG? Our report explores this topic and offers valuable insights.

Interested in learning more?

Download the concise report by clicking below.

https://writecanvas.in/our-templates/

To access the full report, contact us at [email protected].

We believe this research will be a valuable resource for businesses looking to strengthen their ESG practices.

Tags: #Sonal Desai, Assocham, BRSR, BRSR framework, Business Responsibility and Sustainability Reporting, Corporate social responsibility, CSR, ESG, Renjini Liza Varghese, research report, Social, Srivalli Krishnan WriteCanvas, World Environment Day

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ASSOCHAM Webinar on World Environment Day
WriteCanvas News

ASSOCHAM South has on-boarded WriteCanvas to host a webinar titled: Leading the Way: Driving Environmental Innovation, on June 5.

June 5, has been declared the World Environment Day. The webinar’s theme is in line with the United Nations Environment Programme (UNEP)’s overarching concept of land restoration, desertification, and drought resilience for this year.

Renjini Liza Varghese, CEO, WriteCanvas will moderate the event. Eminent personalities like Manasa Nagabhushanam, Director (Academics, Research & Administration) Ramaiah Institute of Management, Bangalore Sridhar L, Head ESG, Bangalore International Airport, and Suma Krishnaswamy, Founder President, Cambium Biotechnologies will be a part of the esteemed panel.

According to Varghese, “The theme of the panel discussion has been long awaited. It will be interesting to hear about the corporates’ focus on various initiatives to preserve the environment, the matrix, and the lessons learned from implementing sustainability initiatives. More than what can be done, India needs to understand the best approach for climate action. We have a long way to go.”

Ms Nagabhushanam said, “The natural environment, which is currently considered external to business, will soon be considered internal. Businesses must take this issue seriously, establish internal guidelines, and coordinate internal initiatives for environmental change. Every business should take the initiative to embrace the environmental dimension rather than making it an aspect of the regulatory mandate.”

WriteCanvas and ASSOCHAM will also release an abbreviated version of the survey report titled “Is S the Blindspot in ESG?” in addition to the webinar. on June 5.

Tags: #Sonal Desai, Ashok Pamidi, Assocham, Bangalore International Airport, Cambium Biotechnologies, DEI, Diversity, Equality, ESG, Inclusion, Is S the Blindspot in ESG, Manasa Nagabhushanam, Ramaiah Institute of Management, Rengini Liza Varghese, research report, Social, Sridhar L, Suma Krishnaswamy, The S Matrix, UNEP, United Nations Environment Programme, Webinar, World Environment Day, WriteCanvas

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Are corporates using the BRSR loopholes rope to climb up?
Sonal Desai

Are corporates using the BRSR loopholes as a means of ascent?

Recent surveys and reports have brought to light not just the lapses in the questionnaire format developed by the market regulator, but also how the corporate sector has leveraged the BRSR loopholes for its benefit.

WriteCanvas has highlighted how certain companies have utilized experts to help them navigate the different regulatory requirements and mandates mostly by tick-boxing.

The reasons these companies have been able to get away with greenwashing are that there are no metrics to measure a corporate’s sustainability/ESG claims and the callous attitude of the watchdogs to conveniently look the other way.

This gives the corporate not just the wings to skirt the most pressing issues, but also ignore the red flags if any are raised. For example, in a recent circular, the National Stock Exchange has provided specific examples of how large corporates are providing insufficient details, or misrepresenting the facts by placing them under different subject heads.

Another survey by the CSE which studied 28 random reports of 14 listed companies remarked that the companies did not provide the details in most instances.

The BRSR framework in India is the first to mandate the sharing of detailed environmental performance and compliance data in the public domain.

External experts and internal auditors are supposed to keep a vigil over the information and content right from the concept till the stage when the last signatory signs it.

Identifying the problem:

Sadly, a majority of them cannot pull the plug when needed. I am certain that almost all of them can identify the BRSR loopholes and also have the solutions or refer to solutions experts.

CSE Program Director, Industrial Pollution, Nivit Yadav, believes transparency should drive investor decision-making. However, there’s room for improvement, and SEBI reviews guidance notes and BRSR format regularly.

But in a hazy world where the head honchos are busy signing M&A agreements and expanding operations with an eye on the stock market, the BRSR report is just one fly in their tea cup, possibly an irritant that needs to be tick-boxed and filed away.

The fact that some of these regulations mandate a board member to be a part of the sustainability/ESG committee can make a difference, is fast gathering dust.

The CSO, CRO significance:

I am by no means saying that the BRSR reports are fudged or the information is false. I am reiterating the points that the watchdog as well as the critics have argued–the corporates are answering all the questions, filling all the boxes, supplementing all the links, and providing internal and external audit reports. And yet, there is not a single organization globally that can claim to have met one regulatory obligation without leveraging a loophole.

As per a Havard Business Review article, the rise in corporate appointing of a chief sustainability officer (CSO) is largely due to the increasing popularity of the term, but there is still a lack of clarity about CSO’s tasks and responsibilities, leading to fragmented ownership, internal competition, and inefficiency. This confusion is partly due to the lack of history and benchmarks for the CSO role.

Secondly, traditional risk management methods are insufficient for complex risks, Companies also require a holistic approach with a Chief Risk Officer to oversee risk profile and board liaison.

The time is ripe to face the truth. The truth is that the corporate has not been able to fulfill all the obligations as demanded by the BRSR mandate. That acceptance is the first step in the right direction. This alone will require the team to look for and identify any gaps or weaknesses and then devise plans of action to close those gaps.

Our take:

Let BRSR be your friend in your sustainability journey. Let it not be the four-letter word for you to fear, and comply with the fear.

Use the pathways created by SEBI as your guideline. Instead of making it an ego hustle, pinpoint the loopholes in the questionnaires/format to the regulator when it releases consultation papers.

In all honesty, corporates are investing money, time, resources, and effort to become sustainable. The reasons can be many: regulatory, corporate policy, government action, geographic expansion, or a sincere effort to be a sustainable business.

Overall, the NSE circular and the CEI survey have come as eye-openers for all the stakeholders. This is not just a compelling pull-and-push theory or story, but a collective effort for a sustainable business, a greener planet, and able governance!

Tags: #Sonal Desai, BRSR, BRSR framework, BRSR loopholes, CEI, Chief Risk Officer, Chief Sustainability Officer, CRO, CSO, ESG, Havard Business Review, National Stock Exchange, Nivit Yadav, Renjini Liza Varghese, SEBI, sustainability, Tick-boxing, WriteCanvas

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SEBI Outlines Value Chain Disclosure Provisions in BRSR Core
WriteCanvas News

A new SEBI circular outlines provisions for ESG disclosures for the value chain, including disclosures for upstream and downstream partners and reporting KPIs in the BRSR Core for their value chain.

The proposal outlines several changes to the value chain reporting system, including rationalizing the definition of ‘value chain’ to cover only significant partners.

Some of these changes include:

• The proposed changes to the definition of value chain partners include excluding upstream and downstream partners, each comprising 2% or more of a listed entity’s purchases and sales.

• This will reduce the maximum number of upstream/downstream partners from 50 to 38, ensuring coverage of key partners.

• For the first year of reporting ESG disclosures, previous year numbers will be voluntary.

• The listed entity will also disclose the percentage of total sales and purchases covered by these partners.

• The Ministry of Environment, Forest and Climate Change (MoEFCC) has recommended adding a leadership indicator to BRSR, stating the number of Green Credits generated by the company and its value chain partners.

The committee also recommends redefining value chain partners to include upstream and downstream partners, each comprising 2% or more of the entity’s purchases and sales, to avoid cost burden and compliance issues for small businesses.

The new provision is a part of the Security and Exchange Board of India (Sebi)’s expert Committee that has proposed measures to improve the ease of doing business concerning BRSR.

The proposed amendments will be carried out in Regulation 34 (2)(f) of LODR Regulations, SEBI said in the circular.

The proposed amendment to the LODR Regulations and SEBI circulars on BRSR aims to replace the term “assurance” with “assessment” in the annual report, requiring listed entities to obtain an assurance assessment of the BRSE Core for their value chain.

The Regulations, 2015 mandates annual reports of the top 1,000 listed entities based on market capitalization to include a BRSR report on ESG disclosures.

Tags: #Sonal Desai, BRSR, BRSR Core, ESG, Green credits, Renjini Liza Varghese, SEBI, Value chain, Value Chain ESG Disclosure Provisions, WriteCanvas

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Sustainability a priority for 50% CEOs
WriteCanvas News

The EY CEO survey shows that CEOs prioritize AI transformation for productivity and aim for net zero and new revenue streams in the long term.

The 2023 EY Sustainable Value Study shows CEOs are committed to decarbonizing their businesses to reach net zero, with over half prioritizing it. However, a quarter has de-prioritized sustainability due to short-term financial or economic challenges. Technology and AI are key solutions, the authors note.

Key findings:

CEOs recognize the risk of stranded assets due to ESG factors and must balance future-proofing portfolios to ensure resilience and global sustainability trends.

Incentives are a more effective policy tool than penalties for accelerating companies’ net-zero journey, with government investment in renewable energy infrastructure supporting growth and sustainability.

CEOs are more confident in controlling their resources and managing their limitations.

Government, and institutional support a key:

Institutional investors support increased collaboration between governments and regulators to tackle climate change impacts, with half of CEOs indicating proactive sector input in sustainability regulations.

CEOs agree that coordinated action by governments worldwide is crucial for effectively addressing climate change impacts.

Government investment in infrastructure is seen as a supportive tool for driving companies’ growth and sustainability agenda.

Sustainability issues are a higher priority than 12 months ago, with over half of CEOs globally focusing on it.

Greater collaboration between corporates, investors, and policymakers could accelerate the road to net zero and unlock a more sustainable future.

The global GDP is expected to rise between $1.7t and $3.4t over the next ten years, driven by AI-powered technology.

Tags: #Sonal Desai, AI transformation, CEOs, Climate Change, Economic challenges, ESG, EY, EY Sustainable Value Study, Global sustainability trends, Net zero, Renewable energy infrastructure, Renjini Liza Varghese, sustainability, Sustainability regulations, technology, WriteCanvas

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Why is the Social component important in ESG?
WriteCanvas News

Our endeavor to focus on the social component of ESG is being widely appreciated. WriteCanvas received one such response from Mr Vikram Shetty, Co-Founder & Community Builder, 73bit, who took an active interest in our report and decided to probe further. Presenting details in this podcast. Sonal Desai, Editor, WriteCanvas, in conversation with Vikram Shetty. Click here to listen to the podcast.

Tags: #Sonal Desai, 73bit, ESG, Podcast, Renjini Liza Varghese, research report, S matrix, S matrix in ESG, Vikram Shetty, WriteCanvas

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AI Washing Eroding Trust in ESG Initiatives?
Renjini Liza Varghese

The environmental, social, and governance (ESG) space has long grappled with greenwashing. In greenwashing, companies often under or over-quote their environmental commitment for marketing advantage. We are also familiar with phrases like Blue washing and Pinkwashing, categorized under the ‘S’ factor’S’ ESG.

AI washing is emerging as a significant challenge in ESG dynamics.

One may wonder about the connection between AI washing and sustainability. Therefore, we begin with a definition of AI washing.

AI washing is the practice of a business overstating the amount of AI that is used in its goods and services. A recent order regarding AI washing from the US Securities and Exchange Commission (SEC) piqued my interest in this topic. Their position is unambiguous: businesses need to disclose their real AI integration. This is vital because exaggerated claims regarding AI’s capabilities have the potential to deceive stakeholders and investors.

I tried to connect the dots between AI and sustainability, and here is my take on the issue.

We have seen tech platforms enabling, fast-tracking, and measuring the impacts of sustainability initiatives. Sustainability and technology go hand-in-hand. Technology and sustainability cannot be delinked from each other. All the same, if not controlled or measured, technology can also play a spoiler to the company’s company’s-2, -3, and now -4 measurements.

Take, for example, a company that touts its “AI-powered “sustainability initiative. This may, in reality, be fundamental data analysis. The misleading narrative is a classic case of AI-driven greenwashing. It can undermine transparency and erode trust in ESG, creating further hurdles in recognizing genuine sustainability efforts. This presents a huge concern.

Deception in the digital age:

The impact of a narrative is deep and wide. When companies embellish their AI prowess, stakeholders become sceptical. This hinders genuine AI advancements that could benefit both businesses and society.

Excited, AI washing can slacken tech adoption and hinder progress.

Let me give you an example. AI tools can optimize resource utilization, identify environmental risks, and enhance supply chain transparency. On the other hand, AI washing undermines the confidence of investors and stakeholders who fall prey to pretence or false reports and invest in companies that don’t deliver on their promises. This can have a significant impact on market dynamics.

AI washing is a sophisticated evolution of greenwashing. Companies can leverage AI-generated reports or fabricated data analysis to bolster their supposed sustainability efforts, making it increasingly difficult to differentiate genuine progress from marketing gimmicks.

How to safeguard against AI washing?

It is a call for extra vigilance. To combat AI washing and ensure the integrity of ESG initiatives, several key steps are essential:

Critical thinking: Do not take claims about AI at face value. Ask questions about the specific applications and their impact.

Prioritize transparency: Clearly articulate how AI is integrated into your ESG strategy. Businesses must provide detailed explanations of their AI-powered sustainability programs. What specific challenges are these programs designed to address? How is AI being utilized to achieve these objectives?

Independent verification: Support independent audits and certifications to substantiate the AI adoption and impacts in sustainability efforts. Also, encourage research and reporting that investigates and exposes AI washing practices.

Regulatory support: Supporting regulatory bodies in establishing clear guidelines and enforcing them effectively is crucial in combating AI washing.

Investor and consumer education: Empowering both investors and consumers through educational initiatives is crucial. Foster open dialogues and raise awareness about AI washing.

AI washing poses a significant threat to the integrity of ESG initiatives. However, through collaborative action and a collective commitment to transparency, we can ensure that AI is used as a force for good, driving genuine progress in sustainability.

After all, in today’s current landscape, trust is the bedrock of a solid corporate reputation and a key differentiator in attracting stakeholders who value genuine ESG commitment.

Tags: #Sonal Desai, AI, AI driven ESG initiative, AI washing, blue washing, Climate Action, emissions, ESG, greenwashing, netzero, pink washing, Renjini Liza Varghese, sustainability, WriteCanvas

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WriteCanvas Joins Forces with GreenFi
WriteCanvas News

WriteCanvas, a Mumbai-based knowledge powerhouse founded in 2018, has partnered with GreenFi, a Singapore-based company specializing in ESG risk analysis.

WriteCanvas will help GreenFi with its strategic communication by producing blog posts and thought leadership articles, among other types of content.

Erica de Wit

Erica de Wit, Co-Founder, GreenFi, sees a natural synergy between the two companies. “Both GreenFi and WriteCanvas share a passion for ESG and sustainability. WriteCanvas’s expertise will be invaluable in establishing GreenFi as a leader in the ESG space,” she said.

Renjini Liza Varghese

Renjini Liza Varghese, CEO, WriteCanvas, expressed her enthusiasm about the collaboration. “The collaboration will raise our profile internationally. We look forward to a fruitful partnership and significant contribution to GreenFi’s building.”

Since its inception in 2018, WriteCanvas has honed its expertise by working with a diverse clientele. The portfolio includes companies from manufacturing, banking, financial services, and insurance (BFSI), green funding, trade finance, and trade associations. This experience positions WriteCanvas as a perfect partner to assist GreenFi’s communication strategy.

Tags: #Sonal Desai, Barun Chandra, Climate Action, Climate Change, Erica de Wit, ESG, ESG Due Diligence, GreenFi, Partnership, Renjini Liza Varghese, WriteCanvas

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The Paradox of Women’s Leadership
Renjini Liza Varghese

Every year, International Women’s Day sparks a flurry of women-led activities. These include special news coverage, initiatives, awards, and recognition ceremonies. I want to draw everyone’s attention to the recurring euphoria of increased attention to women’s issues and gender diversity, and then a decline in focus throughout the rest of the year.

One of the latest initiatives involves the role of women in leadership and the corresponding antithesis. The increase in women in leadership roles is accompanied by a surge in gender-related jokes and memes, highlighting the superficial nature of progress.

While celebrating the increasing number of women in senior leadership positions is crucial, a more sustainable approach is needed. Implementing environmental, social, and governance (ESG) practices has led to a positive shift in the male-female ratio at leadership levels.

According to a McKinsey report:

a) 26% of women hold C-suite positions, 32% are VPs, and 28% are senior leaders (McKinsey, 2023).

b) Only 1 in 4 C-suite executives is a woman, and only 1 in 20 is a woman of color.

India’s image is more encouraging. According to Grant Thornton’s International Business Report for 2023, the percentage of women in senior management roles in mid-market Indian businesses is 36%, which is higher than the global average of 32%.

Furthermore, India’s share of female leadership positions in 2022 was 39%, higher than the global average of 31%. What’s interesting is that women are driving sustainability initiatives in the corporate sector.

The emphasis needs to be on appointing more women as Chief Sustainability Officers (CSOs) while recognizing the important role they play in corporate social responsibility (CSR) initiatives. This change is important for a number of reasons:

a) Empathy and environmental protection: Since women are generally seen as having greater compassion, businesses may place a greater emphasis on environmental protection.

b) Prior CSR experience: A large number of women occupy leadership roles in CSR, which equips them with the necessary skills to incorporate sustainable practices.

c) Emphasizing the social component of ESG: Women in CSO positions would guarantee that the social component of ESG gets the attention it deserves.

Today’s blog is about promoting a just and progressive change. We are by no means demanding out-of-turn promotions or unregulated reservations. Companies can gain access to a diverse range of perspectives and experiences by actively promoting women across management roles. These are essential components for creating truly inclusive leadership and a strong corporate culture.

Tags: #Sonal Desai, Corporate social responsibility, CSR, DEI, ESG, Gender diversity, Grant Thorton, india, McKinsey, Renjini Liza Varghese, Social, sustainability, Women in leadership, WriteCanvas

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News

Sustainability Disclosure netting corporate sector
Sonal Desai

Sustainability disclosure is netting the global corporate sector,

The corporate segment is just a month away from disclosing its quarterly financial results. Besides the financial analysts who are waiting with a hawk eye to review the company’s performance and forecast its trajectory, another set–of sustainability experts are keen to study the impact of various regulatory disclosures that companies have undertaken and the impact of these regulations.

However, for the business as usual (BaU), commissions and governments are giving out mixed signals. On a positive note, Singapore will introduce mandatory climate-related reporting requirements for listed and large non-listed companies starting in 2025. The rules were announced by the Second Minister for Finance Chee Hong Tat, and details were released by the Accounting and Corporate Regulatory Authority (ACRA) and Singapore Exchange Regulation (SGX RegCo). The new reporting obligations will be phased, starting with listed companies in 2025 and large non-listed companies in 2027.

The specific obligations for each group will be phased in over time, with listed companies reporting on Scope 1 and 2 emissions in the first year and large non-listed companies starting in 2029. The government will also focus on helping companies develop sustainability reporting and assurance competencies.

The country already has stringent ESG compliance standards. The new mandate will strengthen its stand in the global Destination Sustainability Index, demonstrating its commitment to real change.

Back home in India, the Securities and Exchange Board of India (SEBI) introduced BRSR in 2021, last year upgraded the compliance to introduce Business Responsibility and Sustainability Reporting (BRSR) Core that includes nine new principles to include the value chain and the customers, as well as third-party assurance.

The framework is set to undergo a significant transformation in 2024, requiring top 1000 companies to ensure reasonable assurance, enhancing transparency, risk management, and regulatory compliance. Analysts have pointed out SEBI’s reduction in the number of listed corporates required to submit BRSR reports from 1000, resulting in a decrease in compliance.

On the other hand, in Europe, the Council and the European Parliament have reached a provisional agreement to delay sustainability reporting for certain sectors and third-country companies by two years. The agreement will allow more time for companies to prepare for the sectorial European Sustainability Reporting Standards (ESRS) and specific standards for large non-EU companies, which will be adopted in June 2026. The agreement aims to boost European competitiveness by reducing the administrative burden on companies and allowing them time to implement the ESRS and prepare for the sectorial European Sustainability Reporting Standards.

The Commission proposed reducing reporting obligations by 25% without undermining related policy objectives, and the provisional agreement now needs to be endorsed and formally adopted by both institutions. The date of application for third-country companies will remain the financial year 2028, as set out in the CSRD.

Sustainability and ESG reporting are now mainstream. Regionally, corporates are abiding by the local rules and therefore, have an ESG strategy in place. For those organizations that have a multi-national presence, compliance gets tougher as they have to comply with multiple regulations.

What is required is a linear compliance mechanism that will enable the multinationals, or domestic companies targeting global expansion to seamlessly adhere to the compliance.

The organizations have come a long way in terms of change of attitude from tick-boxing compliance mandates to impact-driven outcomes. However, not meeting climate action targets remains a concern. For this, we need stricter and faster implementation of regulations.

Tags: #Sonal Desai, Accounting and Corporate Regulatory Authority (ACRA), BRSR, Business Responsibility and Sustainability Reporting (BRSR) Core, Climate-related reporting, CSRD, ESG, ESG compliance standards, ESG strategy, European Sustainability Reporting Standards (ESRS), Regulatory disclosures, Renjini Liza Varghese, Singapore Exchange Regulation (SGX RegCo), sustainability, Sustainability disclosures, WriteCanvas

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ESG Dynamics Changing in the US
WriteCanvas News

The environment, social and governance or ESG dynamics are changing in the US!

As the ESG frameworks get more complex, more and more enterprises are turning to experts for help.

More so—US companies bear the brunt from consumers, communities, investors, market demand, and global mandates.

Investors and financial services companies are driving the demand for ESG services among organizations. The change in ESG dynamics is a result of their realization of the connection between reducing ESG risk and raising market value.

A 2023 ISG Provider Lens Sustainability and ESG report predicts significant growth in US enterprise investments in sustainability and ESG initiatives.

The authors note that many businesses don’t record or store ESG data. While demand for these services is lower in the US as compared to Europe, factors like investor preferences, consumer purchasing behavior, and geopolitics are changing the ESG dynamics. Businesses across all regions are exposed to risks such as regulations, reputational damage, increased capital expenses, and weather-related asset damage.

The authors note that investors and financial services firms are driving the demand for ESG services. The organization’s realization of the link between lowering ESG risk and increasing market value is what is causing the change in ESG dynamics. Nonetheless, legal actions taken against financial institutions that select assets by ESG guidelines could obstruct US economic expansion, they caution.

Companies operating in the US may be required by upcoming federal and state laws to reveal hundreds of data points about emissions, decarbonization, and risks associated with climate change.

More regulatory bodies around the world require businesses to disclose and improve their ESG performance. It is becoming more challenging for these companies to locate and obtain the necessary ratings and benchmarks. In addition to environmental performance, which has traditionally been the primary focus of evaluations, social and governance aspects are now often included. In response to these challenges, the number of rating and benchmarking services available globally is rapidly expanding, the authors wrote.

According to Andy Miears, Director, Adaptive Organization, ISG, “US companies know they need to improve their sustainability and ESG performance but face increasing complexity at every turn.”

Jan Erik Aase, Partner and Global Leader, ISG Provider Lens Research, said, “New regulations will significantly increase the data collection and reporting burden on U.S. companies, driving demand for services to help them comply. A lot of businesses today either don’t record this data at all or store it in different systems.”

Tags: #Sonal Desai, Andy Miears, Environment, ESG, ESG dynamics, ESG frameworks, ISG Provider Lens Sustainability and ESG report, Jan Erik Aase, Regulations, Renjini Liza Varghese, Social and Governance, WriteCanvas

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DHL, Aragen Partner for Scope-3 Emissions
WriteCanvas News

DHL Express and Aragen Life Sciences have partnered for DHL’s GoGreen Plus service to reduce scope-3 emissions.

Aragen becomes the first DHL customer to use the GoGreen Plus service across all its overseas trade lanes including the American and European routes.

GoGreen Plus uses SAF to enable customers to reduce scope-3 emissions, which include the CO2e emissions associated with their freight.

Unlike offsetting initiatives, GoGreen Plus (insetting) reduces emissions within the logistics sector. Therefore it can be used for DHL customers’ voluntary emission reporting.

The service uses sustainable aviation fuel (SAF) to enable customers to reduce scope-3 emissions. For Aragen, it supports the company’s goal to reduce carbon emissions in international shipments.

GoGreen Plus, introduced in India, is made possible by large agreements with important suppliers. These include World Energy, BP, and Neste, who manufacture SAF using alternative raw materials with a sustainable energy profile.

R S Subramanian, Senior Vice President, South Asia, DHL Express, said, “Now more than ever, it has become necessary to address the problem of scope-3 emissions. With our GoGreen Plus service, we are assisting customers in this journey. We hope this agreement inspires others to adopt sustainable practices and embrace low-emission transport services through sustainable aviation fuel.”

Manni Kantipudi, CEO, Aragen Life Sciences, said, “Sustainability and ESG are key priority areas for Aragen. The collaboration with DHL Express will help us achieve our near-term target under SBTi by 2032. As a socially and environmentally responsible corporation, Aragen is committed to reducing carbon emissions produced while shipping internationally. The GoGreen Plus service will enable us to achieve this. Aragen and DHL have a long-standing association and this collaboration underscores our mutual commitment to responsible sustainable practices and managing our scope emissions with carbon insetting.”

Tags: #Sonal Desai, Aragen LifeSciences, CO2e emissions, DHL express, Emission, ESG, GoGreen Plus service, Renjini Liza Varghese, Science Based Targets initiative, Scope 3 emissions, Sustainable aviation fuel (SAF), WriteCanvas

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Crowning Glory: WriteCanvas Wins Sustainable Steward Award!
WriteCanvas News

The Sustainability narrative and communication strategy are getting their due. WriteCanvas – Connecting the Green Dots…, which has developed a sustainability narrative and communique for domestic and global clients, has won the CONNECT- Future Ready Leaders in India’s Amrit Kaal’s Sustainable Steward Award category.

Jointly presented by Credibl ESG, ENQUBE Collaborations, and Kiya.ai, the Sustainable Steward Award isn’t just a trophy. It is a validation of the important role that narration and communication play in any field. In sustainability, we have crafted customized case studies, white papers, research papers, and videos, among other content, for global customers.

This award cements our determination to provide creative and interactive narratives for clients who want to convey their green stories to stakeholders. We extend heartfelt thanks to the three incredible enterprises: Credibl, Enqube, and Kiya.ai.

While the award categories covered a broad canvas, including ESG and the best startup within the FinTech industry, our unique approach truly set us apart. One jury member’s words beautifully captured the essence of our win: “Your entry offered food for thought. It compelled the jury to think out of the box and underscored the importance that communication and branding play along with technology and finance. This gave you the edge over the others.”

These words resonate deeply with what we believe: that sustainability isn’t just about cutting-edge tech or complex financial solutions; it’s about weaving a compelling narrative, building trust, and inspiring action. And it’s this holistic approach that earned us this prestigious recognition.

This award isn’t just a feather in our cap; it’s a burning torch, igniting a renewed passion within us. It’s a clarion call to continue to push boundaries, develop impactful stories, and provide a sustainable future for generations to come.

This would not have been possible without the support of our esteemed customers, partners, and the community — without whose support our journey would not be so fruitful. As they say, this is the first step. WriteCanvas has many more milestones to achieve.

Tags: 'research papers, #Sonal Desai, Case studies, Climate Change, communication, Community development, Connecting future ready leaders, Credibl ESG, Enqube, ESG, Fintech, gap analysis, Kiya.ai, panel discussion, Renjini Liza Varghese, Startup, sustainability, Sustainability leader, Sustainability leadership award, Sustainable Steward Award, WriteCanvas

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6 ESG Trends that will Influence Credit Outlook in 2024
Sibi Sathyan

In its report on ESG Outlook 2024, Moody’s has identified six major ESG trends that will influence credit outlook in 2024.

Moody’s six ESG trends include environmental degradation, green technology, and disruptive innovation, complex ESG policy landscape, rising physical climate risks, climate finance gap in emerging markets, and reshaping the future of work. These trends will significantly impact credit strength in industries vulnerable to the carbon transition.

According to Moody’s, green technology and disruptive innovation will play an increasingly lead role in shaping investment and business decisions within sectors most susceptible to carbon transition. Despite this, the sluggish economic conditions and geopolitical tensions may present obstacles to achieving net-zero ambitions.

The ESG landscape is expected to become more complex for businesses and financial institutions, with mandatory climate and sustainability disclosures taking effect in various jurisdictions. Regulatory scrutiny on greenwashing, combined with a busy election calendar that could lead to shifts in climate policies and heightened social tensions, could add to the complexity.

Moody’s underscores the rising physical climate risks, predicting escalating economic and financial losses for governments and businesses. This, in turn, could result in more expensive or even unavailable insurance in certain markets, underscoring the imperative for investment in adaptation and resilience. Despite efforts to mobilize private finance, the persistent climate finance gap in emerging markets (EMs) is a hindrance. the report said.

A heightened focus on environmental degradation is identified as a source of regulatory, litigation, and market risks for businesses heavily reliant on natural capital and those facing waste and pollution risks. Factors such as carbon transition, population aging, and artificial intelligence (AI) are expected to initiate significant shifts in the future of work, carrying social and economic ramifications. The ESG Outlook 2024 positions these trends as pivotal in shaping the economic landscape in the coming years.

The Key Takeaways from the ESG Outlook:

Green Technology and Disruptive Innovation: Green technology and disruptive innovation introduce credit risks and opportunities for carbon-intensive sectors. Strong policy support, market momentum, and the growing cost competitiveness of mature clean energy technologies are expected to drive green capital spending in 2024, particularly in major markets like the US. Initiatives such as the Inflation Reduction Act (IRA) in the US provide substantial financial incentives for investments in renewables, battery electric vehicles (BEVs), green hydrogen, and carbon capture, utilization, and storage (CCUS).

Navigating a Complex ESG Policy Landscape: Businesses are navigating a complex ESG policy landscape, with an increase in disclosure requirements supporting risk management. In 2024, companies and financial institutions face the challenge of meeting growing climate and sustainability disclosure demands amid a busy election calendar that contributes to polarization on key ESG issues. Regulators globally increasingly require companies to disclose ESG-related data, enhancing businesses’ ability to identify, manage, and monitor risks.

Rising Physical Climate Risks: The escalation of extreme weather events underscores rising physical climate risks, prompting shifts in business strategy. The increased frequency and severity of events like wildfires, heatwaves, and torrential rain result in significant financial and economic losses. Moody’s identifies 16 sectors with over $4 trillion in rated debt that has high exposure to physical climate risks. As climate-related disasters become more concurrent, they risk constraining investment, productivity growth, and economic output, and amplifying social strains.

The story has been syndicated from ESGTimes. WriteCanvas has changed the headline. The rest of the text remains unchanged.

Tags: #Sonal Desai, Credit outlook, ESG, ESG Outlook, ESG trends, EVs, green technology, Moody's, Renjini Liza Varghese, WriteCanvas

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Textile MSMEs Embracing Sustainability
Sonal Desai

The Ministry of Textiles is promoting sustainable production and consumption patterns in the Indian textile industry through initiatives like SusTex and an ESG task force. The Confederation of Indian Textile Industry (CITI), one of the leading trade bodies, and an integral part of the ESG task force, is promoting compliance with domestic and international regulations among MSMEs.

Chandrima Chatterjee, Secretary General, CITI, discusses the significance of MSMEs adhering to ESG regulations and increasing opportunities for the sector, in an exclusive interview with Sonal Desai, Editor, WriteCanvas.

Some industry facts: Invest India predicts the Indian textile and apparel market to reach $350 billion by 2030, with the domestic market accounting for $250 billion and exports at $100 billion.

The textile industry’s MSME sector, comprising 80% of its value chain, is embracing sustainability and ESG regulations due to increased demand from domestic and international players.

Remember, approximately 70% of the textile industry is in the MSME. That is why MSME’s moving to the compliance folder makes it all the more significant, as that will ensure growth for Indian textiles in coming years.

Edited excerpts:

Although the GoI and the trade bodies have launched various initiatives to enable the MSMEs in the textile segment, the uptake is slow, largely due to lack of clarity and capacities.

Given their numerous voluntary ESG initiatives, the large Indian textile companies have the potential to establish themselves as a hub for sustainable sourcing; however, the vast majority of SMEs in the industry have not yet benefited from this awareness or capacity.

But the scenario is changing as more and more MSMEs are at least showing a keen interest in various regulations and ESG frameworks. The EU’s Green Bill and the Supply Chain Act in Germany have kicked off the conversations about ESG in the MSMEs. With deadlines for many of these regulations nearing or some of them becoming mandatory, MSMEs are realizing that it is going to be a business imperative, for all those looking at exporting. The understanding and adherence to the ESG requirements is presently a work in progress.

What is driving ESG compliance among the MSMEs in the textile sector?

The Ministry of Textile has set a target for $100 billion in textile exports over five years. India sees this as an opportunity to strengthen its textile industry, with MSMEs playing a crucial role in achieving this goal.

This is a huge opportunity for the MSME segment. Our nation is the only one with an end-to-end value chain and with a USP of servicing small lot orders and niche hand-crafted products.

The social compliances in the last decade were primarily top-down and brand-driven, making them ad-hoc and not sustained efforts towards organic changes. Also, MSMEs servicing largely domestic market did not find the business case to understand and implement these. But with the greater integration of the domestic and export segments, growing commoner awareness across the world, the digital/ e- commerce trade homogenising the markets, the gaps in expectations and requirements are also closing. Recognising the need and intent of the MSMEs to align to the global requirements, the need is for developing and aligning Indian benchmarking with ESG compliances and best practicies of the destination countries. Feasible, adoptable initiatives that make Indian MSMEs more responsive to the ESG reporting requirements need to be mapped and guidance provided to them.

It is now important to tread the ESG path, and it is more significant that we start driving the path over the next year or two.

CITI has been researching the nation’s ESG environment for the past year. Can you share some key findings?

We have identified three or four critical areas where the textile value chain as a whole can begin its ESG journey.

To begin with, we have been encouraging capacity building through the ESG series for the past few months. We are engaging with the think tanks, manufacturers and solution providers to come together and discuss the possible solutions and challenges.

We understand that observing the peer group will help the industry identify workable strategies and inspire peers to take action. Hence we are providing platforms for peer group discussions also.

CITI is also part of the ministry’s ESG group. We are in the process of creating a number of guidelines and frameworks to help SMEs adhere to legal requirements.

For instance, we are trying to work on guidelines and reporting frameworks that incorporate the fiber to finish value chain with a special focus on recycling. They play a critical role in all the areas from yarn to fiber to the fabric.

We are working with regenerative cotton and are also focusing on Human Right Due Diligence and Disclosure (HRDD) disclosures. They emphasize the importance of social and environmental aspects, particularly carbon capture.

In India, the textile value chain is focusing on environmental and social aspects, with governance being a key focus. Awareness of sustainable practices is increasing, with solar energy being a promising start. Capacity building is essential, and building energy audits are prioritized.

CITI constituted textile sustainability awards to promote sustainability and ESG in the segment…

Since last year CITI has been encouraging sustainability initiatives in the textile value chain through the textile sustainability awards for better carbon footprint, water management etc. This year, we plan to include the Best HR and Best Retail practices as new categories.

Tags: #Sonal Desai, Chandrima Chatterjee, CITI, ESG, MSME, Renjini Liza Varghese, Secretary General, Sustainable textile, SusTex, The Confederation of Indian Textile Industry (CITI), The Ministry of Textiles

« Why Should Companies Prepare a Sustainability Report?

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Why Should Companies Prepare a Sustainability Report?
Renjini Liza Varghese

Globally, the pace of climate action is accelerating. More countries are enacting and embracing green mandates and tightening regulations. This pushes companies to reassess their operations and ensure their products meet evolving sustainability standards.

In this context, the value of a sustainability report gains traction. These reports serve as vital tools for companies to navigate the green landscape.

The conversations about the suitability report with industry stakeholders reveal new facts, that are sometimes eye-openers.

For instance, in the past few months, I have come across many interesting facts regarding the sustainability initiatives of large and mid-size organizations. Basis the companies’ sustainability initiatives and my observations, I am bracketing those into three key categories.

The three key categories:

Laid-back approach: These companies implemented sustainable practices early on but haven’t documented the impact, or claimed carbon credits, leaving potential value untapped.

The greenwashing dodger: Companies seeking easy shortcuts and using “greenwashing practices” as tightened regulations are sometimes a challenge.

Uninformed exporters: Many Indian MSMEs and SMBs, particularly exporters, are unaware of the changing global regulatory landscape, putting them at risk of being left behind.

Several survey reports have highlighted the above-mentioned reasons why Indian companies have missed out on crucial deals. Except for the top 1000 listed companies (by market capitalization), creating a sustainability or ESG report is not mandatory in the country. All the same, with increasing awareness, the time is right for companies to develop a sustainability report.

Let me list the 5 compelling benefits of creating a sustainability report.

1. Identify gaps and opportunities: A report acts as a mirror, reflecting your environmental, social, and governance (ESG) performance and helps set goals for future progress.

2. Future-proofing: Even if your company isn’t currently subject to ESG (Environmental, Social, and Governance) reporting regulations, an annual sustainability report makes future ESG reporting easier.

3. Carbon credits: By quantifying your environmental impact, you unlock the potential to claim valuable carbon credits, leading to financial benefits and compliance with some environmental regulations.

4. Transparency and trust: Openly communicating your sustainability effort fosters trust and strengthens relationships with stakeholders, including investors, customers, and employees.

5. Brand image and reputation: In today’s conscious consumer market, a strong sustainability report can significantly boost your brand image and attract environmentally conscious customers.

So, creating a sustainability report is no longer optional. It’s a strategic investment that unlocks numerous benefits, regardless of your company’s size or current regulatory obligations. This can secure a competitive edge for the companies and also unlock a multitude of benefits.

Tags: #Sonal Desai, BRSR, carbon credits, Climate Action, Climate mandates, Climate regulations, ESG, ESG report, greenwashing, Regulations, Renjini Liza Varghese, sustainability, Sustainability report, WriteCanvas

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Textile MSMEs Embracing Sustainability »

Blog

10 Key Sustainability Regulations to watch out for in 2024
Sonal Desai

Sustainability and ESG have entered the mainstream; strong sustainability regulations are now in focus.

Although large corporate houses reserved dedicated budgets for CSR activities, these did not involve the entire planetary ecosystem. The Federal governments, The UN, The World Bank, and other regulators introduced tightened regulations and are handholding the countries, and top-tier companies to comply with the statuettes.

We list below the top ten compliances which gained prominence in 2023, and which we believe will play a key role in the coming years.
These compliances do not appear in any order of importance but are placed ad hoc.

1. BRSR
The Business Responsibility and Sustainability Report (BRSR) reporting requirement in India aligns with global sustainability frameworks like GRI and UNGC, aiming to improve the quality of sustainability reporting by listed
entities.

The BRSR format, introduced in May 2021, mandates the top 1000 listed entities by market capitalization to disclose ESG-related information on governance, environment, social, customer, supply chain, and human rights.

Updates: SEBI added new ESG metrics to BRSR Core disclosure requirements for Indian-listed companies in July 2023, requiring the top 1000 listed companies to file BRSR reports by FY2023.

The BRSR Core subset includes key performance indicators (KPIs) for nine ESG attributes, including job creation, business openness, and women’s wages, with intensity ratios based on revenue adjusted for PPP for global comparability.

2. Compliance emission trading mechanism (in works):
India plans to operationalize its compliance carbon market, focusing on emission allowances. According to a Bureau of Energy Efficiency document, obligated entities (companies in compliance markets) will receive Carbon Credit Certificates (CCCs) for maintaining emission intensities below targets. They must buy CCCs if they exceed them. The market will follow a one-year compliance cycle, requiring annual performance reports. The scope of emissions covers direct and indirect emissions from fuel combustion, industrial processes, electricity, and heat consumption.

The CCCs will be issued from a national registry called the Indian Carbon Market (ICM) registry, and obligated entities will need to buy and sell them through designated power exchanges.

3. GRI:
The Global Reporting Initiative (GRI) is an international standards organization that aids businesses, governments, and organizations in understanding and communicating their impacts on climate change, human rights, and
corruption.

GRI Standards consist of Universal, Sector, and Topic Standards, with Universal Standards mandatory for all disclosures. Sector Standards prioritize high-impact industries like oil and gas, coal, agriculture, aquaculture, fisheries, and mining. Mining industry sector standards were being developed, followed by financial and textile industries in 2023. Topic standards list disclosures for various material topics.

Updates: The GSSB meeting approved two new GRI Standards, the GRI Topic Standard for Biodiversity and the GRI Sector Standard for Mining, which will be published in early 2024. The standards were developed through multi-stakeholder engagement and collaboration. The new year will also see the implementation of GRI 13 for the Agriculture, Aquaculture, and Fishing Sectors and GRI 12 for the Coal Sector.

4. SBTi:
The Science Based Targets Initiative (SBTi) is a collaboration between the World Resources Institute, the World Wide Fund for Nature, and the United Nations Global Compact. It aims to define and promote best practices in emissions reduction and net-zero targets in line with climate science.

With hundreds of the world’s largest companies committed to setting targets, SBTi has recognized emissions targets of nearly 4,000 companies worldwide, aligning them with the Paris Agreement’s goals of reducing global warming to 1.5 degrees Celsius.

Updates: SBTi plans to introduce a tailored standard for financial institutions, requiring banks and asset managers to avoid financing new fossil fuel projects.

Starting January 1, 2024, SBTi will update its SME definition to include sector-specific criteria, excluding companies from certain sectors.

5. Corporate Sustainability Reporting Directive (CSRD):
The Corporate Sustainability Reporting Directive (CSRD) is the new EU legislation requiring large companies and listed SMEs to publish regular reports on their environmental and social impact activities. It expands sustainability reporting to approximately 50,000 companies across Europe, aiming to standardize non-financial data reporting.

Updates: Starting in 2024, companies with over 250 employees, annual turnover exceeding €50 million, or total assets exceeding €25 million must report under the CSRD. The European Union’s CSRD will be implemented from January 1, 2024, requiring over 50,000 European businesses to report on social and environmental risks and opportunities, and their impact on people.

6. The International Sustainability Standards Board (ISSB):
ISSB was established in November 2021 to develop IFRS Sustainability Disclosure Standards. Launched at the COP26 climate conference, the board aims to provide a global baseline of disclosure requirements for investors, companies, governments, and regulators.

Updates: In 2024, the ISSB will take over monitoring companies’ climate-related disclosures from the Financial Stability Board’s Task Force on Climate-related Financial Disclosures. CDP will align its sustainability reporting questionnaire with the new climate disclosure standard.

7. Carbon Border Adjustment Mechanism (CBAM):
The European Union (EU) introduced the Carbon Border Adjustment Mechanism (CBAM) to level the playing field in the global market and mitigate carbon leakage.

CBAM ensures a fair carbon cost, fostering competitiveness and upholding the EU’s environmental goals. It targets EU importers of carbon-intensive products from sectors without similar carbon costs.

Updates: The EU Official Journal released regulations for updating the EU CBAM and the EU Emission Trading System (ETS). The transitional period will be from October 1 to December 31, 2025, with quarterly reporting requirements. The ETS II will expand to aviation and maritime sectors, and free allowances will disappear.

8. Sustainable Finance Disclosure Regulation (SFDR):
The Sustainable Finance Directive (SFDR) mandates ESG disclosure obligations for financial market participants, including pension funds, asset managers, insurance companies, banks, institutional investors, and credit institutions. The aim is to standardize ESG reporting in Europe, enabling investors to make informed choices. FMPs with over 500 employees must disclose annual PAI statements by June 30, while those with fewer than 500 employees can use the Comply or Explain principle.

9. EU Corporate Sustainability Due Diligence Directive (CSDDD):
On June 1, 2023, The European Union introduced the Corporate Sustainability Due Diligence Directive (CSDDD), requiring businesses to assess and disclose their supply chain and operations’ environmental and human rights impacts. The directive will apply to 13,000 EU-based businesses and 4,000 non-EU businesses operating in the EU, focusing on high-risk industries. Businesses with over 500 workers and €150 million annual revenue are covered, while non-EU businesses from third countries with revenue within the EU are also subject.

Updates: Inter-institutional negotiations on the CSDDD between the European Parliament, Council, and Commission can begin, with Member States having two years to implement it into national legislation.

10. The Streamlined Electricity and Carbon Reporting (SECR):
SECR is a UK regulation that mandates companies to report on their emissions and energy consumption. It aims to promote energy efficiency, reduce costs, and improve productivity while reducing carbon emissions. Companies must report under SECR, including quoted companies, large unquoted companies, and Limited Liability Partnerships.

End Note:

This is by no means an exhaustive list. The laws that may directly affect India and our companies are mentioned below. This includes the effect on the rapidly growing MSME market, which will receive special attention this year.

Which ESG regulations will affect your company?

Tags: #Sonal Desai, BRSR Core, Bureau of Energy Efficiency, Corporate Sustainability Reporting Directive (CSRD), ESG, EU Corporate Sustainability Due Diligence Directive (CSDDD), Renjini Liza Varghese, Sustainability regulations, Sustainable Finance Disclosure Regulation (SFDR), The Business Responsibility and Sustainability Report (BRSR), The Carbon Border Adjustment Mechanism (CBAM), The Global Reporting Initiative (GRI), The International Sustainability Standards Board (ISSB), The Science Based Targets initiative (SBTi), The Streamlined Electricity and Carbon Reporting (SECR), WriteCanvas

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Indian MSMEs to be in Spotlight in 2024
Sonal Desai

If we were to list the value chain of any large Indian corporation or the India office of an MNC, the micro, small, and mid-size enterprises (MSME) would comprise more than 80 percent.

As more and more organizations prepare themselves and their teams to adhere to various ESG statutes and sustainability compliances in 2024, they must also involve their MSME partners in their green endeavors.

The right time:

India has set the target to achieve net zero emissions by 2070. Furthermore, the Indian government launched the “LiFE” (Lifestyle for Environment) campaign, realizing that achieving a sustainable future requires the participation of citizens. The UN recently commended the G20 Presidency of India for emphasizing sustainability goals.

Businesses are held accountable by the 193 UN member states to achieve sustainable development. However, since MSMEs are essential to business value chains, large corporations can only meet their ESG targets if they assist MSMEs in implementing sustainable business practices.

The reason is twofold:

1. Climate change and resultant disasters impact everyone equally. It is therefore crucial that everyone is aware of the impacts of their business not just on their top line and bottom line but on the overall planet.
2. Since new compliances demand that the enterprises calculate Scope-1, -2-, -3 and now even -4 emissions at all levels, and MSMEs form a bulk of any organization’s supply chain, it is essential to create awareness in the community. More vital is encouraging it to create its own sustainability and integrated reports!

The importance of MSMEs and the changing business dynamics:

MSMEs play a crucial role in achieving the 2030 Agenda for Sustainable Development and SDGs by reducing poverty, creating jobs, and promoting entrepreneurship. They are food producers and contribute 27% to India’s GDP. To address climate change, large and small businesses must invest in sustainability. The government can empower the MSME sector by introducing standardized ESG disclosure and certification providing guidance, incentives, and support.

The MSMEs are in the spotlight for various reasons. This includes their increasing:

a) Contribution to the Indian GDP
b) Contribution to the manufacturing production
c) Stake and significance among the global supply chain
d) Contribution to exports
e) Contribution to the UNSDGs
f) Manufacturing and systems integrated of the IT and solar/wind power solutions

The sheer magnitude of MSMEs—they contribute more than 29% to the GDP and are responsible for 50% of the country’s total exports. The sector generates 360.41 lakh jobs out of the 11.10 crore jobs. The jobs mainly belong to the manufacturing sector, in the rural and urban areas, with 387.18 lakh jobs in trade and 362.82 lakh jobs in other services across the country. They are also accountable for one-third of India’s manufacturing output —making them an essential candidate for assistance in becoming inclusive and sustainable.

However, the booming sector faces pressure from domestic and international—TCFD, BRSR, SBTi, (CBAM being the latest) regulatory mandates to disclose sustainability/ESG initiatives.

Indian MSMEs lagging:

How prepared are our MSMEs to report on DEI, green finance, governance, and the environmental impact of their business? to make the information public?

According to three SIDBI and Dun & Bradstreet India surveys, only 25% of MSMEs have the internal knowledge or ability to implement sustainability measures in their operations. This highlights the significant challenges that MSMEs face in implementing these initiatives owing to a need for more capital and technical expertise.

The SPeX report shows that only one in three MSMEs in Q3 2023 were aware of green financing and its impact on brand image and competitiveness.

While MSMEs continue to be highly aware of sustainability issues and are eager to adopt sustainable practices, compliance is outside their priorities. According to the survey, only 23% of MSMEs claimed prompt and complete compliance with sustainability regulations, and only 17% had started sustainability-related policies and procedures. Furthermore, just 2 out of 5 MSMEs claimed that client retention has improved due to sustainability initiatives.

Government support and investors’ push:

Recognizing the potential of the MSMEs, the GoI recently launched three sub-schemes under Raising and Accelerating MSME Productivity {RAMP) program to promote sustainable technology adoption, boost the circular economy, and address delayed payment issues.

Among them, the MSE SPICE Scheme and MSE Green Investment and Financing for Transformation (GIFT) Scheme are government programs aiming to support circular economy projects and the MSME sector towards zero emissions by 2070, providing credit subsidies and support.

Besides, the GOI revamped its credit guarantee program for MSMEs in Budget FY2023-24 to lower credit costs and provide additional guaranteed credit without collateral.

The Union budget announced plans to launch a unified Skill India Digital Platform to facilitate demand-based formal skilling, connect employers, and foster entrepreneurship schemes.

One of the best pushes to report on ESG disclosures can come from the stock exchanges. The SEBI has mandated India’s top 1000 listed companies (by market capitalisation) to report on Business Responsibility and Sustainability Reporting.

Why are such disclosures not mandated for the MSME segment?

So far, 464 companies have been listed on the BSE SME platform, of which 181 have migrated to the main board.

Similarly, the market capitalization of the SME companies listed on the NSE Emerge platform crossed ₹1 lakh crore mark for the first time. Almost 397 companies have listed on NSE Emerge with fundraising of more than ₹7,800 crore.

The Nifty SME EMERGE Index launched in the year 2017, currently consisting of 166 companies from 19 sectors, has shown a CAGR of 39.78% till November 2023, which signifies a notable track record & the growing contribution of the SME sector in the overall economic growth of our country, the National Stock Exchange (NSE) said.

Notwithstanding the widely recognized significance of the MSME sector in advancing the industrial development of the nation, it is a fact that the industry has been confronted with a multitude of challenges. Therefore, to enable the MSME sector to comply with the ESG and sustainability standards, as the regulators have stated their intention, large corporations, and the government must provide timely assistance and incentives within a predefined time frame.

The changing scenario:

However, in August last year, a survey showed that ESG adoption was considered a high priority by 92% of Indian MSMEs. They believe that ESG is essential to joining the global value chain.

Hence, various ESG risks are also assessed for MSMEs, such as inappropriate waste disposal techniques, the impact of climate change on production, noncompliance with labor laws, inadequate health and safety measures, human rights violations, irresponsible raw material sourcing, and unethical business practices.

End note:

These are encouraging trends. A slight nudge, a small push, can go a long way in integrating the MSME segment into the mainstream of ESG.

Tags: #Sonal Desai, Climate Change, ESG, G20 Presidency, LiFE (Lifestyle for Environment), Micro, net zero emissions, Renjini Liza Varghese, SDGs, Small, small and mid-sized enterprises (MSMEs), sustainability, Sustainability goals, Sustainable Development, WriteCanvas

« 2023: A Year Defined by Climate Change

Climate Change and Migration or Abandonment Patterns »

Social investments, BRSR, ESG

Social Finds Emphasis at BRSR workshop
WriteCanvas News

Social, a key component of Environment, Social and Governance or ESG, is finally getting its due.

In a recent SoBE workshop for BRSR professionals, speakers highlighted the significance of social responsibility and the impact of investments on businesses.

ESG and BRSR were the focal points of a one-day workshop conducted by The School of Business Environment (SoBE), a specialized division of the Indian Institute of Corporate Affairs (IICA), and some partners.

The ESG emphasis:

Dr. Ravi Raj Atrey, Chief Program Officer, SoBE, IICA, discussed ESG’s role in establishing a Responsible Brand, highlighting the connection between sustainability and responsible branding.

Dinesh Agrawal, Principal Consultant, Consocia Advisory, conducted a session on “Exploring the ‘S’ of ESG.” The session focused on the analysis of the social responsibility and impact of investments and businesses. Mr Agrawal emphasized that the letter “S” stands for several things, such as equitable labor practices, inclusivity and diversity, and worker welfare. The incorporation of social considerations into ESG frameworks is a reflection of the growing understanding that social responsibility and sustainable business practices are inextricably linked to long-term success and favorable societal outcomes.

The workshop:

Overall, the one-day workshop on Business Responsibility and Sustainability Reporting (BRSR) featured over eight technical sessions. These sessions emphasized the key components of BRSR Disclosures and resolution.

In his inaugural address, Praveen Kumar, DG & CEO, IICA, said that the training will fulfill the demand for ESG professionals. The role of ESG and BRSR is not merely on compliance or cost to the company. It is a strategic Investment.

Key highlights from other sessions:

The first technical session was on the Interlinking of ESG-NGRBC-BRSR Principles. Prof. Garima Dadhich, Associate Professor & Head SoBE, IICA, explained the various Principles of NGRBC and their relevance with BRSR.

The next session on BRSR- Industrial Perspective was taken by Bharat Wakhlu, Founder-President, The Wakhlu Advisory. He highlighted the importance of happy and healthy living for current and future generations, emphasizing the industrial sector’s duty and role.

In the session on Illustrating Top Companies BRSR Database, Dheeraj, Lead-Programmes, PRAXIS, discussed the growth and acceptance of BRSR by companies, emphasizing its role as a ‘Roadmap’ rather than a strict compliance format.

Pradeep Narayanan, CEO, Partner in Change, discussed the importance of human rights and DE & I in addressing social equity and inclusion. He pointed out the impact of issues on businesses and provided explanations for the materiality approach’ and saliency approach.

The Session on Women and Children Friendly Policies (NGRBC Principles 3, 5, and 8) was conducted by Shubrajyoti Bhowmik, Public and Private Partnership Officer, UNICEF. He emphasized the need to uphold women’s and children’s rights and establish safety precautions. Businesses must show their dedication to moral and socially conscious behavior, making a positive contribution to society and supporting global sustainability goals. This should not be done to satisfy policy requirements.

Tags: #Sonal Desai, BRSR, Environment, ESG, Indian Institute of Corporate Affairs (IICA), Renjini Liza Varghese, Social, Social and Governance, Social responsibility, The School of Business Environment (SoBE), UNICEF, WriteCanvas

« A Green Leap: Reliance & DBS Partner for Compressed Biogas Project

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Sustainable individual development (SID), DEI

Sustainable Individual Development: Balancing Work, Life, and Health
Renjini Liza Varghese

In the contemporary world, the pursuit of sustainable individual development (SID) has become a paramount goal for many. This holistic approach encompasses various aspects of life, including work-life balance, healthy living, community involvement, and self-development. It is a vision that stands in stark contrast to the outdated notion of working excessively long hours, as famously suggested by Mr. Narayana Murthy. The implications of such a work ethic on issues like gender parity and employee well-being deserve careful consideration.

The concept of SID encourages us to evaluate our choices and priorities in light of our overall well-being. While it’s true that some individuals may find success by working 70 hours a week, it’s important to remember that one size does not fit all. The Infosys co-founder’s statement, while well-intentioned, could inadvertently widen the workforce gap, especially when striving for gender parity in the workplace.

Gender parity is a fundamental aspect of diversity, equity, and inclusion (DEI) initiatives that have gained considerable momentum in recent years. Organizations around the world are making substantial efforts to bridge the gender gap, promote equal opportunities, and foster an inclusive environment. Proposing long working hours as a norm runs counter to these essential efforts, potentially hindering progress.

The COVID-19 pandemic significantly transformed our world, especially the way we work. Flexible working arrangements have become the norm. While this has numerous benefits, it also has challenges. Increased stress, reduced social interaction, and health are among the top issues prevalent among working professionals. In this evolving landscape, employee welfare has emerged as a key focal point, particularly under the “S” factor of Environmental, Social, and Governance (ESG) compliance.

Of all the aspects within the “S” category, health takes precedence. Long hours of work can lead to various health risks—especially lifestyle-related diseases like hypertension and obesity. To maintain SID, a balance between work and personal life is essential. We must prioritize our health and well-being to lead fulfilling and productive lives.

Advocating for excessive work hours is counterproductive in today’s world. Rather than endorsing such practices, it is crucial to promote smart work and flexible working arrangements that enable individuals to be more productive without compromising their health and personal lives. SID involves considering the long-term impact of our choices on our well-being, our communities, and our world. It’s a vision that aligns with the evolving work culture and the growing emphasis on employee welfare and inclusivity. In a world that is changing rapidly, let us adapt and evolve while ensuring we prioritize our health and happiness on our journey toward sustainable individual development.

My mantra is to work smart, be flexible, and be productive!!! What’s yours?

Tags: #Sonal Desai, and inclusion (DEI), Diversity, Employee welfare and inclusivity, equity, ESG, Gender Parity, Infosys, Narayana Murthy, Renjini Liza Varghese, Sustainable individual development (SID), WriteCanvas

« The story of rising women participation in the Indian workforce

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Mercedes-Benz launches e-Trucks in Hongkong

Mercedes-Benz has launched two new e-trucks in Hongkong to support the country’s carbon-neutral commercial transportation initiative.

Mercedes-Benz’s Actros and Econic series are already servicing the country’s local and cross-border logistics, and urban applications segments. Now, the company is transforming the segment into sustainable transportation.

Features:

The eActros 400 series:
• Equipped with a 448 kWh lithium-ion battery pack
• 400 KM range
• Dual-motor system with total output of 400 kW (544hp)
• 2-speed transmission to simplify driving and operation processes
• Reduced stress for drivers
• Multimedia cockpit interactive, AVAS (acoustic vehicle alerting system), lane keep assist, fifth-generation active brake assist emergency braking system, MirrorCam rearview mirror system (optional)

The eEconic series:
• DirectVision low-floor cabin
• Higher efficiency in energy recuperation during braking
• Zero exhaust emissions and quiet operation
• Well-suited for nighttime operations
• High-performance lithium-ion battery can seamlessly integrate with a 160 kW charging system
• Recharging up to 20%-80% in approximately 75 minutes
• Perfect for urban applications that require multiple stops

Accelerating Hongkong’s ESG journey:

With the launch of the all-electric versions of these two truck series, Mercedes-Benz has accelerated the country’s journey carbon-neutral transportation.

The initiative will enable the company to partner with the local freight industry and truck users. Local businesses can now acquire large-scale environmentally friendly transport vehicles that align with sustainable development strategies on ESG.

Incentives and support:

The electric trucks will be included in the eligible vehicle list of the New Energy Transport Fund. This will allow owners to apply for subsidies of up to HKD 3 million, according to a press release.

Mercedes-Benz Trucks, in collaboration with CLP and Shell Hong Kong, will provide professional charging system support services to truck owners.

CLP will enhance the power supply system. Shell Hong Kong will assist customers in installing wall-mounted chargers and provide charging services at its network of service stations.

The two all-electric trucks are available for order and are expected to be delivered and put into service in the second quarter of 2024.

Tags: #Sonal Desai, Carbon neutral commercial transportation, CLP, e-Trucks, ESG, Hongkong, Logistics, Mercedes-Benz, New Energy Transport Fund, Renjini Liza Varghese, Shell Hong Kong, The eActros 400, The eEconic, WriteCanvas

« Infosys, smart Europe sign pact for sustainable e-mobility

Developed countries off track to meet 2030 carbon emission targets »

Blog

DEI: What is prevalent, Greenwashing?
Renjini Liza Varghese

It is sad to see that greenwashing in each segment of ESG is prevalent.

The other day, when my colleague wrote about whether ESG is losing its steam, we had a lengthy conversation on how the segment is panning out globally and in India. We deduced that a section of society is driving the message that ESG is outdated.

However, we also agreed that compliance, statute, and an intent will drive ESG implementation in a developing country like India. Moreover, we have also noticed that the ‘S’ factor of ESG is the least cared for. The S factor has many facets, from diversity, equity, and inclusion (DEI) on one side to human rights and community development on the other.

DEI is the new buzzword in the corporate world. We have come across some eye-opening facts during our conversations with various stakeholders in the last year. For example, a CXO associated with a large company in the aviation segment admitted that though the organization releases a Sustainability/ESG report for the past few years, it is yet to appoint a woman at the board level. This particular company is not an exception. Many large organizations that are also under BRSR purview have appointed women at the board level. However, experts argue that it is a token meant to tick box the compliance. The point I am making here is that diversity is a vital criteria of ESG.

Let us move to the noises (it is just noise and not voice yet) around us on DEI. Each industry segment, whether tech, manufacturing, BFSI or services, has DEI experts on board. But they all refuse to answer critical, uncomfortable questions. We have noticed that everyone wants to be there at the top order. Keywords such as DEI, inclusion, women, leadership vision, etc, meet their SEO criteria. Beyond the conversations in the boardroom, they have done zilch to act upon the valuable treasure trove of data (both in-house and through external agencies), on the impact. Ironically, they dodge any DEI questions within their organization but sit on the judge’s chair and discuss DEI best practices at industry events. They know how to make a lot of noise and get noticed in the process. Initially, I took the conversations with these people at face value. Thankfully, I learnt my truth faster and now rely on my gut instinct and research to counter them.

By voicing my experience, I am not trying to paint a gloomy picture. Infact, there are corporates that have implemented DEI, and it continues to be among their top priority. From freshers’ recruitment levels to the board, they have skilfully integrated diversity.

Our aim at WriteCanvas is to create the narrative—sift the noise from the actual use cases (however small the integration maybe), and enable a system supported by the policy. And that allows DEI or inclusion in the true sense and not just tickboxing. Join us if you believe in creating the structure.

As part of this endeavor, WriteCanvas in association with the DEI Committee of ASSOCHAM Southern Region, is conducting a survey on the S factor of the ESG implemented by companies. Here is the link to the questionnaire. LINK:

We will publish the findings and will share key take-aways with you.

Tags: 'S' Factor, #Sonal Desai, Assocham, Aviation, Banking, BRSR, Compliances, CXO, DEI, Diversity, ESG, Fintech, Inclusion, manufacturing, Renjini Liza Varghese, tech companies, technology, WriteCanvas

« Technip Secures EPC Contract for Advanced Biofuels, Green H2 Units

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ESG

Is ESG losing steam?
Sonal Desai

Is ESG losing steam?

Is ESG being pushed over to maintain profits? Are compliances being watered down for short-term gains? Though it is too early to conclude, indicators point in that direction.

Governments and corporates are finding it difficult to answer a blunt question: What and where is the impact of your ESG strategies?

Global compliance and regulatory mandates have made it possible for the stakeholders to report on the Environment and the Governance components. Where is the social component?

Our irresponsible behavior, utter disregard for the environment, and apathy toward the problems of fellow beings are leaving the planet in a quandary.

The impact is equally horrifying: unprecedented floods and heatwaves, melting glaciers, poverty, hunger, and displaced lives.

Global organizations led by the UN, the World Bank, the Asian Development Bank, and countries united on a common platform (Paris Agreement) to retain the temperature to 1.5-to-2 degrees C (pre-industrial period). UN SDGs, climate action, carbon capture and removal, renewable energy, and Net Zero are the new fashionable buzzwords. Or are they?

I am inspired by the daily reportage of ESG events, and governmental, NGO, and global initiatives to combat climate change. But I am also a bit confused with the on-the-ground signals.

For example, the number of naysayers or anti-ESG brigade is on the rise. Led by the West which is soft-landing ESG theories, the turnover has slowly percolated into Asia upward/downward.

Two things are tweaking the ESG story. One: Greenwashing and two: data and financial risk/security—the crux of any business SMB, MSME, large or multi-national. While data security has always been challenging for organizations, the new viruses stump the businesses worldwide. What is equally important to understand is: that data security laws, frameworks, and regulatory compliances are far more granular. They cover the end-to-end data security policies and practices including the human angle. Lack of compliance also has a far-reaching impact.

The ESG sector has yet to see that kind of whole-hearted and collective acceptance: across the sectors, across countries, across organizations, and end customers. Country-wise, each nation has its own set of regulatory compliances for ESG. Are they enough? For instance, one just has to look at the BRSR forms—they account for just box ticking. Or the recent EU Green Bond Standards which mandate EuGB holders to ensure 85% of the bond’s raised funds are used for taxonomy-compliant economic activities until the taxonomy framework is fully operational. The balance of 15% can be allocated to other economic activities as long as they clearly explain its
allocation.

Secondly, the impact of ESG needs to be properly documented. Instead of being a part of an exclusive club for the elite, who are busy voicing opinions on domestic and global platforms, the influencers must unite and play a proactive role. The need of the hour, according to me is to develop a strong community and bring ESG into the mainstream. Convey the impact in a manner that everyone can relate to. The narrative does not always have to be scary. If we are reporting about the deluge, let us also highlight the positives that effective ESG, sustainability, climate action strategies, and implementation can affect.

It is time, ESG is dusted off the silos and integrated into the mainstream. While arguments for and against continue, I want the voices, even constructive critics to be vocal about the change they want.

Meanwhile, here are some statistics to chew on:

The global ESG market is expected to quadruple from $7.7 billion in 2020 to $31.2 billion by 2030. Asia is expected to drive growth with ESG AUM expected to surpass $500B by 2025. Not to be left behind, India’s ESG market is predicted to constitute 34% of its domestic AUM by 2051, aligning with its goal of net-zero emissions.

ESG is real. ESG can be effective. It needs a collective effort…

Tags: #Sonal Desai, Asian Development Bank, Carbon capture and removal, Climate Action, Data security, ESG, Net zero, Renewable energy, Renjini Liza Varghese, the World Bank, UN, UN SDGs, WriteCanvas

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ICRA, ESG ratings

ICRA to Foray in ESG Rating
WriteCanvas News

Credit rating agency ICRA has applied for an ESG Rating Provider (ERP) license under its wholly-owned subsidiary, ICRA ESG Ratings Ltd.

The new entity—ICRA ESG Ratings Ltd will commence operations after receiving the requisite license from SEBI.

Commenting on the development, Mr. Ramnath Krishnan, MD & Group CEO, ICRA, said, “ICRA ESG Ratings Ltd marks our commitment to responsible and sustainable investing. ICRA is poised to bring its expertise to this pivotal segment. I would like to highlight ICRA’s commitment to expanding its offerings and strengthening its presence in the realm of ESG ratings.”

Tags: #Sonal Desai, Credit rating agency, ESG, ESG rating, ICRA, Ramnath Krishnan, Renjini Liza Varghese, SEBI, WriteCanvas

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News

Indian automotive sector: in pursuit of sustainability
WriteCanvas News

The automotive and auto ancillaries industry in India contributes $70 billion or 2.1% to the national GDP, and employs 5 million people.

While the sector accounts for 4.5% of India’s merchandise exports, it is also responsible for 1.4% of the country’s annual greenhouse gas emissions. Implementing sustainability priorities could help India achieve net-zero emissions.

These are the findings of a new The Automotive Component Manufacturers Association of India (ACMA)-McKinsey study titled: Mobility 360° – Sustainability for competitiveness: A perspective on sustainability in the automotive sector.

OEMs worldwide set upstream decarbonization targets, requiring suppliers’ interventions, especially for Scope 3. India’s automotive companies commit to decarbonization, with use-phase emissions potentially dropping as electric vehicle adoption rates rise.

Key findings:

Sustainability is a priority for most Indian OEMs
Controlling Scope-1 and -2 emissions primary focus
Encouraging suppliers on sustainability themes to reduce Scope-3 upstream emissions
Many OEMs are adopting targets, measuring and tracking key performance indicators and disclosing ESG information
While 100 per cent disclosure on ESG reports is still some way off, the journey has begun

Some stats:

3/4 OEMs list sustainability among their top 5 business KPIs
2/4 OEMs are working with suppliers to change designs for circularity
3/4 OEMs disclose ESG information in their annual report/BRSR report
OEMs are already rolling out RFQs incorporating decarbonization targets

Indian OEMs are currently where EU players were a few years ago OEMs’ demand for sustainable operations may suddenly change as policies change. Indian suppliers could kick off efforts to be better prepared for these changes, to become preferred suppliers for OEMs in the future, the authors noted in the report.

Offense vs defense:

Playing defense in the global sustainability push can lead to a growing capital cost, declining market share, and reactive mode. On the other hand, companies can play offence, resulting in a 20-30% valuation increase and increased strategic distance from competitors. This strategy relies on five drivers:

Chasing new business opportunities: Companies could build new green businesses by tapping into existing assets, capabilities and relationships.
Targeting sustainability qualification-led–led growth: Offering green products that match customer expectations (e.g., green packaging) and requirements (e.g., carbon neutral steel) could lead companies to command a higher premium in the market.
Achieving sustainability-led cost reduction: Thoughtful use of resources such as energy, water, waste and raw materials could help improve resource efficiencies.
Improving employee productivity, well-being and morale: Companies could implement a holistic strategy for employee engagement to cut down attrition, boost sales productivity, and control absenteeism as employees feel rejuvenated and inspired by their organization.
Growing valuation impact (equity): A compelling sustainability story and credible strategy could drive up valuation and expand multiples.

Material circularity, renewable energy, decarbonization:

Material circularity in the automotive sector can increase the industry’s top line by 10-20%, reduce costs by 5-10%, and decrease CO2 emissions by 50-70%. India’s automotive sector is promoting circularity due to policy and regulatory support, high primary material prices, and increased carbon markets. Recycled materials require less energy and reduce geopolitical risk.

The report noted that auto-component manufacturers in India primarily rely on electricity for manufacturing and assembly processes, accounting for 90% of their energy needs. However, a shift to renewable energy sources is crucial as grid electricity is the primary emission source. Between 2019 and 2022, thermal sources accounted for 74% of the total electricity generation mix. Solar and wind energy accounted for 11% of the mix in 2022. Alternatives for energy decarbonization include behind-the-meter solar, captive renewable energy access, and energy efficiency improvements. Companies can also consider gas-based, bio-mass-based, solar, hydrogen, or electric boilers.

Respondents from the auto suppliers segment indicated new business opportunities, sustainability qualification-led growth and sustainability-led cost reduction as the three most relevant themes.

The journey of automotive companies and their suppliers to reduce emissions calls for a focus on two big themes.

A concerted effort towards energy decarbonization by mapping the greatest sources of emissions (electricity, steam, backup power, etc.) and finding scalable, cost-efficient alternatives to these.
A quest to attain material circularity – with sound decisions about material sourcing, product design, process selection, and associated logistics management to ensure an overall sustainable value chain for automotive companies.

The role of the stakeholders:

Sustainability is becoming mandatory for operating licenses, but implementing it requires industry alignment, cross-value chain partnerships, and collaboration with stakeholders. The government can support this by strengthening reporting regulations, introducing incentives, tax benefits, and grants, and promoting circular-economy principles. Automotive industry bodies can create a scalable sustainability framework, drive capability-building programs, and facilitate collaborations. OEMs can support domestic suppliers by setting ambitious decarbonization targets, adopting renewable energy options, and designing products for circularity. Suppliers can be at the forefront of this transformation by moving sustainability closer to their business priorities, investing in energy transition initiatives, and working with OEMs to drive circularity.

Tags: #Sonal Desai, Auto sector, Automobile, BRSR, ESG, GDP, India GDP, India OEM, Renjini Liza Varghese, sustainability, sustainability in auto, WriteCanvas

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MSCI

MSCI Launches Sustainability Institute
WriteCanvas News

Morgan Stanley Capital International (MSCI), a global provider of equity, fixed income, real estate indexes, multi-asset portfolio analysis tools, ESG and climate products, has launched sustainability institute.

According to MSCI, the institute aims to advance the role of capital markets in creating sustainable value and tackling global challenges like climate change.

The institute will use MSCI’s investment industry expertise to foster collaboration across finance, academia, government, NGOs, think tanks, and companies. It will provide access to data and knowledge, encourage innovation in new approaches, curate decision-useful research, and provide a forum for debate.

It will equip academic researchers and policymakers with sustainability data, metrics, and models, and encourage innovators to pilot new data and measurement approaches. The initiative is supported by the Bezos Earth Fund and ClimateWorks Foundation, MSCI said in a press release.

Henry Fernandez, Chairman and Chief Executive Officer, MSCI, said, “Global challenges such as climate change cannot be solved by governments, corporations, NGOs or multilateral organizations alone. The most meaningful solutions all require some type of cross-sector collaboration. Through the MSCI Sustainability Institute, we will bring together a wide range of thinkers with complementary strengths and expertise, and help them turn data-driven ideas into real-world influence and action.”

Linda-Eling Lee, Founding Director and Head, MSCI Sustainability Institute, said, “We are incredibly excited to work with investors, academics, policymakers, NGOs and companies across industries, leveraging MSCI’s experience in developing new ways to measure both financial and non-financial value. Together, we will deepen knowledge of how capital markets can help drive sustainable value.”

The institute will also be advised by Hiromichi Mizuno, who recently joined the firm as Special Advisor to the CEO, with a particular focus on climate and sustainable investing issues.

Tags: #Sonal Desai, Bezos Earth Fund, Capital markets, Climate Change, ClimateWorks Foundation, ESG, Henry Fernandez, Linda-Eling Lee, Morgan Stanley Capital International (MSCI), MSCI sustainability institute, Renjini Liza Varghese, WriteCanvas

« Act NOW

SBTi Separates Standard Setting and Validation Units »

ESG

Decoding the ESG matrix: Understanding the factors that shape it
Renjini Liza Varghese

I was delighted with the evolution of ESG in the past decade. The subject has garnered global attention and got the attention of regulators who are constantly upgrading the frameworks and introducing new compliances. On the one hand, I am happy that ESG is dominating decision-making at the board level, but on the other, I am also saddened that the enterprises are moving towards more camouflage or greenwashing. It is a double-edged sword.

I have been thinking about this issue as a result of recent news and feature stories in the newspapers on television and other platforms. Globally, the political landscape, protests, the potential to manipulate the numbers, and the practice of “greenwashing” are a few issues dominating the sustainability landscape. The impact of ESG variables is particularly noticeable in funding choices, mergers & acquisitions, and investment strategies.

The moot point is, do these principles apply to India? Since the majority of the occurrences I have noticed are global in nature, it is still too early to draw any conclusions. But trust me, we are not too far behind.

ESG due diligence

Take, for instance, the most recent KPMG report—a study on ESG Due Diligence. According to the research, more than half (53%) of investors have given up on M&A projects because of significant issues with regard to ESG due diligence. This study surveyed 200 US ESG practitioners, including corporate and financial investors and M&A debt providers.

However, this does not present the entire scenario. According to 42% of respondents, the results of the ESG due diligence led to lower purchasing prices. Over 60% investors stated that they would be willing to pay more if a company showed advanced ESG maturity and a commitment to their values. More than a third of them said that this premium might be higher than 5%.

It is interesting to note that KPMG, in earlier research for the EMEA region, observed a rise in ESG evaluation, with four out of five dealmakers stating that ESG concerns now occupy a significant position on their M&A agendas.

ESG gaining prominence

Another study conducted by media analytics company Cision reveals the prominence of ESG issues in traditional media and social platforms. Globally, even as ESG reportage in the media and discussion on the topic on social media increased between January 2020 and June 2023, consumers were unwilling to pay more for environmentally friendly products and were uninterested in corporate social responsibility.

The study was focused on Germany. ESG concerns saw a 36 percent upswing in visibility in the first half of 2023 in comparison to the previous three years. Ecological issues increased by 74% during this evaluation period, social issues by 8%, and corporate governance issues by 6%. (No clarity).

While, on the one hand, corporates are embracing transparency to meet increased ESG reporting standards, we also come across instances of greenwashing, and this number, too, is rising. I believe the organizations have been unable to articulate and communicate their ESG strategies and related outcomes.

As a veteran in the communications industry, here are my two bits.

Effective communication is the key: Have a communications strategy in place. Identify the key points and the focus areas you want to communicate. Elaborate your ESG initiatives in the form of case studies.
Manuela Schreckenbach, Head of Insights Consulting, DACH at Cision, also notes that efforts are being made to combat “greenwashing.” A Dutch court recently granted environmental organizations’ request to move on with legal action against KLM over alleged greenwashing in the airline’s “Fly responsibly” commercials.

Companies of all stripes are increasingly promoting their “GREEN” efforts. Some businesses have resorted to overstating, lying about, or inventing their ESG credentials rather than making genuine adjustments to their operations and goods. How many of these claims will withstand scrutiny from authorities, activist groups, or opportunistic customers remains to be seen.

As per a Reuters report, as part of a concerted effort by international regulators, the UK Advertising Standards Authority (ASA) has recently enforced action against corporate greenwashing. Airlines, banks, fashion retailers and energy giants are among over 20 companies targeted by the ASA for misleading statements and representations about their sustainability and environmental credentials.

Recalling here the UK’s Competition and Markets Authority investigation into retailers ASOS, Boohoo, and Asda’s fashion brand, George.

I leave you with a food for thought —— Sustainable practices should be a habit and not to be forced element. Do you agree?

Tags: #Sonal Desai, Cision, Climate, ESG, ESG Due Diligence, greenwashing, KPMG, Renjini Liza Varghese, Reuters, sustainability, Sustainable funding, WriteCanvas

« Sajjan Jindal suggests four measures to mitigate climate risks

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ICAI, Sustainability

CAs must learn about Carbon, CSR, ESG practices: Nirmala Sitharaman
WriteCanvas News

Union finance minister Nirmala Sitharaman urged the chartered accountants in the country to learn about carbon, CSR, and ESG practices; and implement the same in their business practice.

She stressed the need for the CAs to familiarize themselves with national and international accounting standards, regulatory frameworks, and compliance mandates for carbon accounting, CSR and ESG.

“In each of these areas, you will have to set up best practices. Put your best efforts,” Ms. Sitharaman said addressing Cas at an event organized by the Institute of Chartered Accountants of India (ICAI) in Bhubaneswar.

Tags: Business practice, Carbon, CSR, ESG, Institute of Chartered Accountants of India (ICAI), International accounting standards, Nirmala Sitharaman, Regulatory frameworks, WriteCanvas

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AR Rahman develops sonic compositions for M&M EVs »

FICCI, HUL

FICCI to establish Centre for Sustainability Leadership
WriteCanvas News

The Federation of Indian Chambers of Commerce & Industry or FICCI is establishing the Centre for Sustainability Leadership. Hindustan Unilever Limited (HUL) has already signed on as its founding member.

The centre will focus on:
1. Institutionalizing sustainability leadership, decarbonization, Green entrepreneurship and Nature-based solutions
2. Supporting small and medium enterprises (SMEs), start-ups, and large corporates in their sustainability journey
3. Mainstreaming climate technology solutions by showcasing innovations by sustainability start-ups in India
4. Adopting sustainable consumption and circular economy in line with Government of India’s ‘Mission LiFE’ mantra
5. Facilitating training programs, expert workshops and offering bespoke solutions for climate action
6. Supporting companies in complying with reporting and disclosure mandates on Environmental, Social and Governance (ESG)

“The Centre will help realise social and environmental co-benefits, further strengthening FICCI’s commitment towards inclusiveness and building sustainable businesses. It will facilitate progress towards climate neutrality for industry with special focus on SMEs—the backbone of Indian economy and an integral part of global value chains,” said Subhrakant Panda, President, FICCI.

“The Centre for Sustainability Leadership will usher in transformative change by helping Indian businesses to meet sustainability goals and achieve net zero targets in alignmL

Tags: Centre for Sustainability Leadership, circular economy, Climate technology, decarbonization, ESG, Federation of Indian Chambers of Commerce & Industry, FICCI, Green entrepreneurship, Hindustan Unilever Limited, HUL, Mission LiFE, Nature-based solutions, Sanjiv Mehta, Small and medium enterprises (SMEs), Start-ups, Subhrakant Panda

« Budgetary support to unlock potential for pumped hydro energy storage Projects

Microsoft adds ESG Reporting, Scope 3 emissions to Sustainability Platform »

Biodiversity, ESG, Climate change

PwC to launch nature and biodiversity-focused practice
Sonal Desai

Global market advisory firm PwC has a series of initiatives aimed at boosting its global nature and biodiversity capabilities.

The New Equation:
The new initiative follows PwC’s launch in 2021 of its global strategy—The New Equation. This includes:
• Plans to invest $12 billion over five years,
• ESG as one of the key focus areas for investment
• A target for ESG revenues to grow ten-fold over the next four years

Three new key initiatives:
The new initiatives include:
1. Launching a new Centre for Nature Positive Business
2. Doubling the size of its team of nature specialists over the next 12 months
3. Upskilling all 328,000 employees to better understand nature impacts and to work with clients on nature-positive outcomes

Expanding Nature Positive Business:
PwC aims to expand its key global capabilities in biodiversity, water, regenerative agriculture, and forestry. It will bring together more than 500 nature specialists, expand the team to 1,000 – from across the firm’s network. The teams will focus on nature positive strategy and transformation, nature risk management and reporting, nature technology, data and measurement, and nature finance and fund management.

PwC said that it will also offer nature and biodiversity training to its global workforce, including bespoke online learning through its global Sustainability Academy.

Alignment with UN SDG 15:
The Sustainable Development Goal 15 of the 2030 Agenda for Sustainable Development is devoted to protecting, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss.

Leader comments:
Emma Cox, PwC’s Global Climate Leader, PwC UK, said, “Climate change and nature are inextricably linked, and as the challenges facing the environment continue to rise, so too will the impacts felt by ecosystems around the world. By boosting our capabilities to help clients develop and implement nature positive strategies as part of their broader sustainability strategies, we will help a growing number of businesses transform their operating models, and in doing so, help to build a net zero, nature positive world.”

Leading the way:
In its own business, PwC is identifying offices which are in or adjacent to key biodiversity areas and assessing nature-related impacts in its supply chain.

Tags: #Sonal Desai, Centre for Nature Positive Business, Climate Change, Emma Cox, ESG, Global strategy, Global Sustainability Academy, Nature and biodiversity, PwC, Regenerative agriculture, Supply chain, Sustainable Development, The New Equation, UN SDG 15

« AM Green Energy places 166 MW wind turbine order in India

Sustainability now and @2030: The India report card »

ESG, Sustainability, SMB

Entry barriers!
Sonal Desai

Entry barriers!

I am sure the sentence resonates with my friends in sales and marketing organizations. Does it not?

Folks, each one of us—across business categories, across designations including the C-Suite has faced entry barriers. These do not come just from nay-sayers who oppose any new idea or innovation, but a new breed of defensive souls is laying new barricades.

Consider this:

I am using the example from ESG and sustainability, not because these are new buzzwords or are a part of the mandatory compliances globally. I also want to highlight how ignorance or fear of losing power is building the wall. Result: we received a backlash from a top source in the sector recently.

WriteCanvas was invited for a `chat’ to map the company’s ESG initiatives. As an enterprise that does not believe in box-ticking, we identified some gaps that could be plugged at the entry-level. Considering the prospect was an ambitious enterprise in the SMB segment, we took a four-pronged approach and informed the prospect that we would not just handhold them throughout the project but maintain transparency at all levels.

Needless to say, we did not bag the project!

The indicators were present from the second meeting itself! One of the managers started getting restless and defensive. And the parting shot was: If we have everything in-house, why do we need you?

The importance of compliance:
Compliances in ESG if not strictly implemented invite heavy penalties. And organizations that want to scale up, and expand geographically, may face issues due to non-compliance.

We believe that an external agency can help you to identify and plug the gaps until you acquire adequate manpower in the sustainability department, with adequate skillsets.

Lessons learnt:

1. We will have to face naysayers at every stage
2. We have to learn to deal with the defensive structure
3. The prospects have to really look inward and scope the requirements. They need experts to plug the holes, for course correction and NOT to mutely nod their heads in YES SIR fashion
4. We HAVE NOT, DO NOT, and WILL NOT promise the moon. We are realistic and know our capabilities

No one can address climate change single-handedly. It requires collective efforts and the involvement of all stakeholders. Override your resistance. We are not there to replace you, but to extend a helping hand in your journey to transform your organization into a purpose-driven, sustainable one.

Tags: #Sonal Desai, Climate Change, Compliances, ESG, Purpose-driven, SMB, Stakeholders, sustainability, WriteCanvas

« Golden era for wind energy in India?

10 Benefits of Sustainable Agriculture Practices »

Blogs

How technology is helping enterprises to embrace sustainability?
Sonal Desai

These days, the buzzword is sustainability. ESG, deforestation, biodiversity, DEF, and sustainable finance discussions are gaining traction across platforms. Thanks to global watchdogs, enterprises worldwide are mapping their sustainability journeys with purpose-driven impact and green outcomes.

Two major strategies are allowing businesses to accelerate their sustainability journey: 1. A top-down approach; and 2. Information technology optimization. And both strategies streamline and enable an enterprise’s tactical and operational aspirations on its path to green goals.

Experts emphasize the significance of sustainable business practices and the importance of sustainability in our daily lives. I want to emphasize the importance of technology.

Technology—in its advanced form, Web 4.0, and a select few who are piloting Web 5.0—is an enterprise’s best friend on its journey to sustainability. I am convinced that green technology will propel sustainability to unprecedented heights. I emphasize technology as the primary enabler for two reasons: 1. technology as an enabler and 2. people enablement.

The green technology market is rapidly expanding. According to a Fortune Business report, the global green technology and sustainability market will grow from $ 13.76 billion in 2022 to $51.09 billion by 2029. It will grow at a CAGR of 20.6% during the forecast period.

Both software companies and hardware OEMs are working hard to market the new opportunity. The new-age start-ups that are developing customized apps to help enterprises ranging from MSMEs to SMBs to large conglomerates meet their sustainability targets are the icing on the cake.

According to studies, survey reports, and market research commissioned by market advisory firms, technology is enabling average people to ‘just do their jobs and key in the data to their daily roaster. The apps track the data, analyze and categorize it, and assign it to the appropriate block based on the company’s sustainability goal/target.

At the end of the year, the BI software compiles and formats the data based on each disclosure the company must make, aligning the corporate goals with the UN SDGs. Taking it a step further, the predictive analysis software assists the company in predicting corporate goals for the coming fiscal year / CAGR for a forecast period.

From the perspective of the CIO, who is the co-owner of data and thus a key stakeholder in all sustainability initiatives, the automation process enables the enterprise to identify stakeholders, establish the merit of implementing the technology to the stakeholders by developing a solid narrative, and measure the goals achieved. The ROI calculator is a valuable tool for gap analysis and plug points.

But that is a story for another day…

Tags: #Sonal Desai, AI, BI software, big data, Biodiversity, deforestattion, DEI, ESG, green bonds, green finance, green technology, IIoT, ML, predictive analysis, technology

« How different is CSR from ESG or BRSR?

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Blogs

Five challenges hindering ESG adoption in India
Renjini Liza Varghese

Environmental, Social, and Governance (ESG) criteria have gained significant importance in the global investment landscape in recent years. In India, investors, particularly institutional investors, are looking at funds that align with the ESG framework. However, ESG implementation is facing some bottlenecks in the country.

Listed below are some critical challenges:

Lack of knowledge about ESG and long-term benefits: There is a lack of understanding among Indian companies and investors about ESG frameworks and the long-term benefits they offer. As a result, ESG is not a priority for many companies. And investors may not get ESG-compliant investments.

Inadequate frameworks: The current regulatory framework in India does not have effective ESG mandates or incentives to encourage companies to prioritize ESG practices. A lack of clear and enforceable regulations and standards makes it difficult for companies to justify the costs of implementing ESG practices.

Penalties: Penalties for non-compliance vary across different countries. While ESG non-compliance is a criminal offence in some countries, it is still evolving in India.

The Securities and Exchange Board of India (SEBI) has introduced several measures to promote ESG compliance among listed companies. SEBI mandated the top 1,000 listed companies to disclose their ESG performance in their annual reports. Failure to disclose ESG performance may result in penalties and other regulatory actions by SEBI. Additionally, SEBI has also proposed the introduction of ESG scores for listed companies, which will be used to determine their eligibility for inclusion in certain indices. While there is still a long way to go, these measures are a step in the right direction towards promoting ESG compliance in India.

Globally, some countries have even gone as far as making ESG non-compliance a criminal offence. For instance, France has introduced a law that criminalizes misleading information about ESG performance and imposes heavy fines and imprisonment for non-compliance.

India’s dependency on fossil fuels: India heavily dependent on fossil fuels for its energy needs. The country is the world’s third-largest consumer of oil and the fourth-largest consumer of coal. This dependency on fossil fuels is the biggest challenge for Indian companies wanting to align with ESG—particularly in the environment and climate change.

Energy transition a long way: While India has set ambitious targets to transition to renewable energy sources, the transition will likely take several years. Until then, companies in energy-intensive sectors may struggle to meet ESG standards, and investors may struggle to find ESG-compliant investments.

To overcome these challenges, there must be a concerted effort by the government, companies, and investors to prioritize ESG. This can be achieved by introducing strong regulatory frameworks and incentives to encourage compliance. These efforts must be backed with greater awareness and education about the benefits of ESG practices and their long-term impact on businesses and society.

By taking these steps, India can become an attractive destination for ESG investments and contribute to a more sustainable future.

Tags: Coal, ESG, ESG awareness, ESG framework, ESG implementation, ESG Non-compliance, ESG training, Fossil fuel, Renjini Liza Varghese, SEBI

« Budget 2023

Global leaders emphasise the need for sustainable finance at WSDS »

News

Sustainability is key for manufacturing: Jindal Stainless
Renjini Liza Varghese

Sustainability has taken the centre stage in the manufacturing sector. Interestingly, companies are becoming more environmentally conscious. Read the detailed interview of Jagmohan Sood, Director and CEO, Jindal Stainless (Hissar) with Think ESG’s Editor-in-Chief Renjini Liza Varghese.

Sustainability measures are typically classified under CSR activities, however, Jindal Stainless has been taking major measures in bringing sustainable development at the plant level. What pushed Jindal Stainless towards such initiatives?

The sustainability-related work is happening at the plant site, in the units and in the area of labour. As a group, our focus is to bring down the carbon footprint by all means including the adoption of the best technology. JSL Hisar plant is no different. Being pioneers in bringing out stainless steel in India, the company feels responsible for the environment. Energy efficiency measures are one part of the sustainability measures implemented by the company. It started a decade ago, however, the real momentum was seen in the last three years. We are adhering to all prescribed norms and realised that we can do more, that is when in 2017–18, the campaign for the same started towards energy conservation, renewable energy purchase, sustainable utilisation of natural resources. 264 million units of electricity, and 11.5 Giga kilocalories in thermal energy. If compared to the last consumption period, it is 6% savings for JSL. That translates to a saving of Rs 25.5 crore. The reduction in Co2 emissions is 16000 tonnes. This has brought many accolades to the company from both domestic and international bodies. Our target is to further reduce Co2 emissions by another 6.5% in the next three years (by 2022).

We are planning to include bringing in efficient motors in all plants, efficient lighting solutions, automation of systems, smart energy monitoring systems and energy monitoring system. In terms of use of renewable energy, currently, there is a 0. 68 MW solar PV installed which will be further enhanced to 2 MW capacity. In addition, we will be purchasing more solar power from nearby solar park or from the state grid.

In addition, we are at 1% current in terms of the enhanced use of biofuels, which will be increased to 5% in 3 years.

How much time and investment did it take to make the plant to the current energy-efficient level?

In the last three years, we have invested almost Rs 20 cr in a phased manner and we are planning to invest another Rs 30–40 cr in the next three years targeting to replace inefficient motors, old motors and compressors. We are also planning to bring in more automation, which is a long process and capital-intensive as well. We have set timelines from one year to three years.

Sustainability programmes, as of now, in India, are voluntary initiatives from the entities. Do you think a policy in this regard can bring a major shift in companies attitude towards sustainability programmes?

It differs from company to company. All may not follow the same manner of implementation or adoption. It depends on the culture the company follows, it depends on the management of the company, how much you care for the community, the employees and the stakeholders. Once you start implementing it, you realise the value and the benefits that you get. Those who keep away are ignorant of the benefits.

Do you see an increase in allocation for sustainability programmes?

It automatically happens. We know the benefits. Once you find the benefits, you start investing more and more to reap them the benefits.

Water and carbon emission are equally important elements of sustainability programmes. Can you elaborate on the actions taken by JSL?

Carbon footprint is a key focus area for the company; we switched to biofuels and to futuristic technologies that minimise waste. We are working on other areas which need attention. JSL believes in zero liquid discharge.

When solar capacity is increased to 2MW, what percentage of your energy requirement is met by this?

The existing capacity is from the rooftops; we are planning to cover the entire rooftop and make it 2MW. This will be equivalent to 2% of the total consumption.

Every sustainability programme needs auditing. How does JSL get that done?

Yes, we do have our sustainability programme audited. There are government certified entities that do such auditing work. So, we go with the prescribed parameters when it comes to auditing.

What is your immediate target in the short term?

The effect of sustainability programmes is visible in the medium to long term. So the efforts that are put in now can be measured only at a later stage. Currently, we work with a three-year schedule and it is work in progress. We are trying to get into the new areas of technology to bring the required change. The efforts put in will be measured after three years.

Tags: biofuels, energy, energy monitoring, ESG, Jagmohan Sood, Jindal Stainless, Renjini Liza Varghese, sustainability

« ICAI joins 12 others to form Sustainability Standards Advisory Forum

Building the future: Innovative technologies shaping green construction »

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News

MSMEs Focusing on Governance Component of ESG WriteCanvas News

Highlights of the report:

Challenges and drivers:

Trends:

The C-suite comments:

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Oil India

NABARD

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Integrating ESG into Business:

The ESG framework:

Blog

The Climate-Social Story of Kerala Renjini Liza Varghese

Resilience

Evolving social fabric

Beyond the blame game:

Our take:

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IICA, HP India, Launch ESG Professional Program WriteCanvas News

Why is ESG important?

Blog

Is Corporate India Fuelling Climate Change? Sonal Desai

What next?

Our take:

Blog

DEI Weighs High, But Shunted by Corporates? Sonal Desai

Corporate reality:

Cover-ups?

Are things turning around in India?

My take:

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Key findings:

Ratings per ESG measurement:

How prepared are the Indian CFOs?

Our take:

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The renewable energy thrust:

Women in the workforce and community development:

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DEI across sectors:

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Key takeaways:

Dr. Mansa Nagabhushanam, Chair DEI Assocham South Director, Centre of Excellence for Sustainability, and Director (Academics, research and administration), Ramaiah Institute of Management: Political leadership vital to equip policymakers to create effective action plans

Dr. Suma Krishnaswamy, Founder President, Cambium Biotechnologies: Synergy between self-help groups and NGOs needed to create a multi-stakeholder circular economy

Use Case: Bangalore International Airport Limited

L Sridhar, Head, ESG, Bangalore International Airport Limited (BIAL): Addressing climate change risks and implementing a business continuity plan is crucial

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ASSOCHAM Webinar on World Environment Day WriteCanvas News

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Are corporates using the BRSR loopholes rope to climb up? Sonal Desai

Identifying the problem:

The CSO, CRO significance:

Our take:

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SEBI Outlines Value Chain Disclosure Provisions in BRSR Core WriteCanvas News

Some of these changes include:

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Sustainability a priority for 50% CEOs WriteCanvas News

Key findings:

Government, and institutional support a key:

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Why is the Social component important in ESG? WriteCanvas News

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AI Washing Eroding Trust in ESG Initiatives? Renjini Liza Varghese

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WriteCanvas Joins Forces with GreenFi WriteCanvas News

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MSMEs Focusing on Governance Component of ESG
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Three important Sustainability Updates
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IICA, HP India, Launch ESG Professional Program
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Is Corporate India Fuelling Climate Change?
Sonal Desai

DEI Weighs High, But Shunted by Corporates?
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How Prepared Are the Indian CFOs for Climate Reporting and Compliances?
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Mindspace REIT Secures Rs 650-crore SLL bond from IFC
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Why is the Social Component Important in ESG?
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Offset Measures, Implementation, Key to Tackle Climate Crisis
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Is Social the Blindspot in ESG?
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ASSOCHAM Webinar on World Environment Day
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Are corporates using the BRSR loopholes rope to climb up?
Sonal Desai

SEBI Outlines Value Chain Disclosure Provisions in BRSR Core
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Sustainability a priority for 50% CEOs
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Why is the Social component important in ESG?
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AI Washing Eroding Trust in ESG Initiatives?
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WriteCanvas Joins Forces with GreenFi
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Sustainability Disclosure netting corporate sector
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ESG Dynamics Changing in the US
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Crowning Glory: WriteCanvas Wins Sustainable Steward Award!
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Sibi Sathyan

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Why Should Companies Prepare a Sustainability Report?
Renjini Liza Varghese

10 Key Sustainability Regulations to watch out for in 2024
Sonal Desai

Indian MSMEs to be in Spotlight in 2024
Sonal Desai

Social Finds Emphasis at BRSR workshop
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Sustainable Individual Development: Balancing Work, Life, and Health
Renjini Liza Varghese

DEI: What is prevalent, Greenwashing?
Renjini Liza Varghese

Is ESG losing steam?
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ICRA to Foray in ESG Rating
WriteCanvas News

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MSCI Launches Sustainability Institute
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CAs must learn about Carbon, CSR, ESG practices: Nirmala Sitharaman
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Entry barriers!
Sonal Desai

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Sonal Desai