Covid-19 has established the need to place sustainability towards top of India Inc’s agenda | Economic Times

In March, people in Jalandhar reported seeing the Himalayan snow peaks from their rooftops. And folks in Varanasi saw fish and tortoise from the surface of a surprisingly clean and clear Ganga. With our factories, cars and airplanes on silent mode during the lockdown induced by Covid-19, the world had practically taken a time machine to a pre-industrial revolution era. The air quality index of Jalandhar had crashed to 39 on March 31, 2020, compared to 129 on March 31, 2019. And the Ganga saw significant fall in dissolved pollutants, and increase in dissolved oxygen. The big question was, is this sustainable? And the answer was: certainly not. Or, at least not to that degree. As of December 27, with the lockdown a distant memory, Jalandhar’s AQI has risen to 94, and the far more industrialised Delhi’s AQI has shot up to a distressingly familiar ‘severe’ 415 (AQI in Delhi was 71 on March 31). And the Ganga is back to its murky, mucky worst. The inference is clear. Unless industry pulls up its green socks, the world – including businesses themselves – will suffer in rising degrees. Industry realises that consumers are becoming more discerning about the issue, which is influencing buying behaviour. “Environmental sustainability is a positioning that a company takes, which can possibly help them increase their sales by targeting customers who are inclined to favour a company which is green,” says NR Bhusnurmath, professor, finance, at MDI, Gurgaon. Swedish clothing giant H&M, for example, gives a 15% discount coupon for every bag of old clothes deposited by customers. By 2030, the company plans to source all its material through recycling or other sustainable ways. “We are constantly exploring new technology and innovations to help transform the fashion industry and reduce the dependency on virgin resources,” said Pascal Brun, head of sustainability at H&M, in a statement. “Getting customers on board is key to achieve real change.” Flipkart has set in motion a plan to transition its entire logistics fleet to electric vehicles by 2030. “Going fully electric is a step towards transitioning mobility systems to adapt to climate-friendly technology, which will future-proof the business and reduce carbon emissions,” says Mahesh Pratap Singh, head of sustainability and social responsibility, Flipkart. “It will also bring in cost efficiencies to the business in the long run.” IT major Infosys is transitioning to renewable energy for all its electricity needs, and has already invested in a 60 MW solar plant. The company says it has become carbon neutral for fiscal 2020, across all emissions.Dipankar Ghosh, partner and leader, sustainability, climate change and ESG, Thinkthrough Consulting, points out that mitigation measures such as adoption of resource conservation, energy efficiency, and recycling are adopted by companies at the initial phase of their sustainability journey. “Matured businesses today, additionally, often leverage on sustainability opportunities to enhance top line.” There’s an interesting view on bottom line impact as well. “Implementing ESG principles creates an ecosystem within the organisation focusing on resource optimisation and well-being,” says Chaitanya Kalia, partner and national leader, climate change and sustainability services, EY India. “With the right ESG framework, it adds up to profits as sales shoot up with increase in demand for sustainable products, and cost reduces with a sustainable supply chain in place.”Sounds perfect, but profitability from ESG-driven business models is some distance away for the larger business community. However, the desire to create an ecosystem of ‘responsible growth’ has certainly begun.(This story is part of a series of articles on sustainability in association with Mondelez. The company had no editorial input)