Why Going Green is Important for corporates?
The continued depletion of natural resources has led corporations that have large energy requirements to become more environmentally aware than ever. This is because not only do green initiatives save on costs, reuse resources and meet compliance requirements, but they also help to create brand recognition among customers.
Companies that are seen as being environmentally sensitive tend to create a vision of care. This provides the benefit of perceptions and practicality with the broader effects going beyond the organization. However, the ability to save money by lowering the use of energy and power is more important. Besides lowering the consumption of energy, the technology adoption organizations also invest in R&D efforts and support social action initiatives that are geared towards environmentally friendly products as well as internal processes. This has broader effects on the environment at large.
Companies are taking CSR initiatives which requires engagement with internal and external stakeholders so it enables enterprises to anticipate better and take advantage of fast-changing expectations in society as well as operating conditions. This means it can also act as a driver for the development of new markets and create real opportunities for growth.
For a long time Indian companies have focused on market access, customer acquisition and compliance. There is now however a shift towards a more responsible form of growth because taking a long term view of sustainability and social responsibility is creating long term competitive advantages and helping in managing risks. Top companies have a deeper focus on Governance, Disclosure, Sustainability and CSR. However, the lower ranked companies have not seen a significant change.
Top performing companies have increased their focus on sustainability and also deepened current efforts around reduction of emissions, climate change, waste management, water and energy. 47% companies had higher sustainability scores (YOY), 34% remained the same and 19% witnessed decline.
– Notable improvements were seen in waste management and sustainable products/services. However, the efforts do not keep pace with the increased government and consumer scrutiny.
– Renewable energy programs gained traction in the year for reducing emissions from operations, in-line with Government programs. Their footprint is however small.
– Water management remained a highly underutilized space, especially in service industries where less than half of them disclosed programs.
– Green supply chains still a remains a significant gap in the sustainability efforts of India’s top companies. The focus of many companies seems to be on compliance and immediate operations related programs rather than adopting a strategic direction towards sustainability on a long term basis.
Environment sustainability is possible through combined efforts of all the elements of society such as agriculturists, industrialists, authorities and nongovernmental association, voluntary welfare associations as well as the general public. The controlling authority in most of the problems is the government. For example, the bulk of the forest areas are possessed by the authorities, mostly the government can construct dams, roads, railroad transportation, etc. Here the use of agencies that do not come under the government becomes vital. They do not have to adhere to the formalities. They have the advantage of being in contact. Let’s look in a little more detail at these facts:
Role of Government and the issues faced In India, the state and Central Authorities own, own and control all the country’s major irrigation systems, dams, woods, power stations, rail transport ports, roads, mines, and industries. India created the Department of Environment and after the Ministry of Environment and Forests from the year 1985. The Ministry of Environment and woods is encountered with security preparation and coordination of forestry and environmental programs. The Ministry is concerned with research and conservation of fauna, flora, woods and wildlife prevention and control of pollution, afforestation, regeneration, and protection of the atmosphere.
Top Indian Companies for Sustainibility:
Tata Chemicals Ltd.
Ambuja Cements Ltd.
Mahindra & Mahindra Ltd.
Tata Motors Ltd.
Tata Power Company Ltd.
Bharat Petroleum Corporation Ltd.
Hindustan Zinc Ltd.
Indian Oil Corporation Ltd.
Overall, regardless of the initiatives that a company may embrace, businesses and governments are doing well to monitor these initiatives and identify ways of becoming more efficient over time.