Update: 23 dec. 2021 17:47 STI
New Delhi [India], Dec. 23 (ANI / NewsView): The Corporate Responsibility and Sustainability Report (BRSR) format aims to align India’s sustainability reporting with global reporting standards. Odgers Berndtson, one of the world’s leading executive search firms, recently brought together board members from prominent companies in India for a panel discussion to understand how leaders align business goals with sustainability.
The 7 key takeaways from business leaders about the changing sustainability landscape in India are:
1. Choosing the right framework is important and often a challenge for companies starting their sustainability journey. Currently, there is a lot of confusion around which charter a business should adopt. In accordance with the latest SEBI guidelines, the BRSR report format will become mandatory from fiscal year 2022-2023. “The BRSR has been structured in such a way that it is relatively easy for companies to migrate to globally converged frameworks and standards. The BRSR is a good way for companies to discipline themselves when it comes to sustainability reporting. It’s a magnet for moving the ESG story forward, ”says Shailesh Haribhakti, Non-Executive Chairman, L&T Financial Services.
2. Collaboration is essential to achieve the goal of sustainability.
All the energy produced over the past 300 years by primary elements will undergo dramatic changes over the next 10 to 15 years. By keeping this context in the background, collaboration is the only way to make an impact. “Industry needs to come together to collaborate and set sustainability standards that work for their industry. Although this can be a difficult challenge, but with the larger goal in mind, they need to share best practices in innovation and sustainability rather than using them as a competitive advantage, ”says Naina Lal Kidwai, Member of the Board of Directors and Member of the Holcim Group Health, Safety and Sustainability Committee.
3. Do the markets favor companies working on sustainable development?
The harsh reality is that global markets and investors only look at companies with strong balance sheets. However, markets favor companies that have adopted sustainability as part of their business ethics. “When investors decide which company to invest in, they will go for the option where profitability and sustainability are present. The market is extremely competitive, with many options for global investors to choose from. So a company that does not work for sustainability will be the loser, ”notes Anand Kripalu, Managing Director and Global CEO of EPL Ltd.
4. Infuse sustainability into the supply chain. Educate vendors and MSMEs who lack the necessary know-how.
“While large companies have set their sustainability goals and increased their focus, it’s also important that they go even further and also imbibe sustainability in their supply chains. It means reaching out and educating suppliers on the value of being mindful about water consumption, clean energy use and other benefits of focusing on sustainability, ”says Gita Nayyar, Independent Director of PNB Housing Finance Ltd, Indian Director – Glenmark Life Sciences, Independent Non-Executive Director of Transport Corporation of India.
5. Sustainability is no longer a choice but a way of doing business
“I believe that the current drive towards sustainability can be seen as a life-changing opportunity in the organization’s lifecycle. Whether you take this in the right spirit and catapult yourself, or get bogged down in all the risks that are involved, is a choice. I would say it’s better to change before the world forces you to change, ”says Ashish Bhandari, Managing Director and CEO of Thermax Group.
6. Young talents giving the necessary impetus towards sustainability.
Young talents expect their recruiting companies to be environmentally conscious. Unlike before, companies have started to ensure that their ESG goals are clearly reflected in mission and value statements. “The awareness and intention to achieve a sustainable business model is spreading in all areas and is not limited to a generation or a certain industry or a certain size of company. The ability to make a difference is what matters. Companies that go to great lengths and invest a lot of money and resources to advance sustainability, due to the industry in which they operate and the constraints they have to live with, often do not receive sufficient credit ”, said Bhavana Bindra, Managing Director South Asia, REHAU Polymers.
7. Link between executive compensation and ESG objectives
The seriousness with which some companies plan to conduct their ESG commitments can be seen with the recent trend to link executive compensation to ESG objectives. “Executive compensation must be linked to ESG objectives if the organization is serious about achieving them. By human nature, we are only motivated to achieve the goals for which we are prompted. The challenge is to encourage managers to set more ambitious and more ambitious ESG objectives that are not necessarily quantifiable in the short or medium term ”, said Vikas Kulkarni, Managing Director of Bostik India.
“Executives may not be comfortable linking executive compensation to ESG objectives due to the challenges of setting appropriate metrics and well-defined goals. However, that doesn’t mean it can’t be done. The key lies in breaking down the larger goals into achievable goals and actions. that can be mapped within a given time frame that is acceptable to all. The light at the end of the tunnel shouldn’t seem so far away that you even get discouraged from trying to walk through it. If ESG goals are set too broadly and leaders are not given the incentive to drive them, then they will remain a distant dream, ”says Dr Prasad Medury, MD India, Odgers Berndtson.
Odgers Berndtson is one of the world’s leading executive search firms, present in more than 35 countries, providing services such as executive appointments, appointment of (independent) directors, leadership assessment and contractual appointments (interim). Approach The Odgers Berndtson team to explore your leadership requirements.
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