Recent SAP studies show that eco-friendly practises are actually saving money for Indian companies. The global Environmental Sustainability Study found that as many as 59% of Indian enterprises saw a favourable correlation between environmental action and profitability.
The second edition of SAP’s annual report examines the drivers and roadblocks organisations encounter in their quest to increase sustainability, and it includes responses from 6500+ business leaders worldwide, including 400 from India.
In addition, the paper found that environmental activism is the primary driver of environmental action among businesses (45%), followed by revenue and growth potential (34%), and finally, customer demand (33%). But, Indian businesses run the risk of falling behind if they don’t make data the cornerstone of their approach to sustainability. For Kulmeet Bawa, President and Managing Director of SAP Indian Subcontinent, “sustainability is a holistic strategy to getting there” is essential if India is to make progress towards a more sustainable future. “It is apparent sustainability is no longer about brand reputation or ethics – there is a defined connection between profit and purpose,” Bawa said. Also, according to SAP, 76% of companies reported that their stakeholders would be moderately or highly tolerant of lost profitability in pursuit of the organization’s sustainability goals.
The study’s most important results are:
• 37% of businesses in India feel they can’t compete because they don’t have an environmental strategy.
A survey found that 35% of people said it was hard to show a positive ROI.
• Success and the generation of long-term value will depend critically on the incorporation of sustainability objectives into overall business strategy, as well as the monitoring and recognition of progress.
In order to determine the ecological effects of their supply chain, 31% of companies merely make educated guesses.
• 46% of organisations report limited or no visibility into their external supplier chain’s sustainability KPIs.
• Acquiring and analysing reliable data has become an urgent problem and a significant barrier to progress in the realm of measurement.
As of now, 59% of Indian top-level executives hold the view that green initiatives can also boost bottom-line results.
About half of Indian businesses now predict that environmental protection will have a significant impact on their bottom line within the next five years.