New SAP research reveals that Indian businesses are increasingly seeing financial benefits from sustainability. As many as 59 per cent of Indian businesses see a positive connection between environmental action and profitability, according to the global Environmental Sustainability Study.
The study covers 6500+ business leaders, including 400 from India, It is the second edition of SAP’s annual report which explores the motivations and barriers organisations face as they look to boost sustainability in their companies.
The paper further revealed that environmental activism (45 per cent) is the biggest motivating factor for organisations to take environmental action, with revenue and growth opportunities (34 per cent) and customer demand (33 per cent) trailing behind. Yet Indian organisations risk losing out if they are unable to place data at the heart of their sustainability strategy. “If India is to advance towards a more sustainable future, businesses must do their part and embrace sustainability as a holistic approach to get there,” said Kulmeet Bawa, President and MD of SAP Indian Subcontinent. “It is clear sustainability is no longer about brand reputation or ethics – there is a defined connection between profit and purpose,” added Bawa. SAP also found 76 per cent of businesses said that their stakeholders would be moderately or highly tolerant of reduced profitability in pursuit of their organisation’s sustainability goals – indicating leeway to invest in positive sustainability outcomes.
Key findings from the study:
• 37 per cent of Indian businesses say a lack of environmental strategy is holding them back.
• 35 per cent of respondents point towards difficulty proving a return on investment.
• Embedding sustainability goals within larger business strategy, measuring, and recognising progress will be crucial to success and driving long-term value.
• 31 per cent of businesses rely solely on assumptions and estimates to assess the environmental impact of their supply chain.
• 46 per cent of businesses say they don’t have complete visibility over the sustainability metrics of their external supply chain.
• Collecting and analysing high-quality data has emerged as a critical issue and a major stumbling block in the measurement process.
• 59 per cent of Indian leaders now believe that there is a positive relationship between environmental action and profitability.
• Almost half (48 per cent) of Indian businesses now believe addressing environmental issues will be material to business results within the next five years.