Sustainable development is embedded in the DNA of every organization Nitin Gupta Capgemini
In a chat with Urvi Shrivastav, Editorial, BW Businessworld, Nitin Gupta, Head of Sustainability, Capgemini, talks about the growing importance of sustainability, the outlook for the future, and its necessity in organizations.
What issues do companies face when struggling between sustainability and development?
The general perception is that adopting sustainability measures is seen as a costly and laborious exercise and a barrier to development, as it forces companies to consider new operating models, modify existing product lines and even to quit companies that are perceived as carbon-intensive. emissions. A good number of companies approach sustainable development and development programs in isolation, rather in conjunction, which further fuels the debate on the complementarity of these two elements.
Another problem conglomerates face is trying to craft a net-zero “One Size Fits All” vision. Given the complexity of their presence in multiple geographies, operations across multiple industries, and different supply chains, companies are unable to accurately determine business impacts if these measures are not personalized and adjusted to the specificity leading to the decrease!
The fact is that sustainability is now going to be ingrained in the DNA of every organization. If businesses are to survive in the future, they must see sustainability as helping them grow and giving them the necessary competitive advantage in the marketplace.
HHow do you come to common ground?
The struggle will end when sustainability is viewed as a profit center rather than a cost center and this is a challenge that management must drive, implement and communicate to its employees, stakeholders and customers. Sustainability is not a one-time thing, it will continue to evolve, like any other technology. A report from the Capgemini Research Institute suggests that innovation, driven by technology and data, will help companies improve sustainability while delivering profitable growth.
It is important to break down silos and engage stakeholders throughout the process, assess the impact on the business, and ensure the business strategy takes these metrics into account to identify opportunities and opportunities. risk areas. For Conglomerates, it is imperative that localized action plans are prepared, more pragmatic and synergistic.
What are the positive and negative impacts of sustainable development on companies?
Of the many positive impacts of sustainability, the top three would be:
· Adopting sustainable practices will help companies manage their risks and explore new areas of opportunity.
Improved brand value resulting in better financial valuation by investors, attraction/retention of good talent and increased customer loyalty.
· Sustainability offers companies the opportunity to revamp their traditional business practices, bring about efficiencies and drive innovation.
Capgemini research indicates that more than 80% of organizations say they have enhanced their brand reputation by improving their ESG rating; nearly eight in ten saw improved efficiency and productivity, a more than 50% reduction in packaging costs, and increased sales.
Negative impacts will include commitment of a lot of resources in terms of capital, time, effort, etc. without a definite way to measure the success of these efforts. Another negative impact on the business can be disoriented efforts due to a lack of a solid execution plan or unengaged staff, leading to failure to reap the desired business benefits.
How does the government help businesses maintain a balance in this regard?
Governments around the world are taking a stick and carrot approach to maintaining the right balance in this regard. They have put in place various incentive and funding schemes for organizations that ensure they are positive on their ESG journey metrics and at the same time penalize companies by enforcing strict laws if they fail to meet their commitments to sustainable development.
Renewed COP26 pledges by various governments, including India, further incentivize companies to take this route. Governments must ensure they provide collaborative platforms for businesses to work with legislators, regulators and academic think tanks to propel progress and maturity of sustainability initiatives. A concrete example – SIDBI – has introduced the Sustainable Finance Program to finance sustainable development projects that contribute to energy efficiency and cleaner production. For organizations, it has therefore become more obvious to adopt and implement sustainability measures for their growth and survival.
What are the sustainability goals for companies in the future?
The future goals for businesses are very clear – Embedding sustainability into core values and DNA, taking proactive steps to transform entire value chains, seeing sustainability as a ‘profit center’. The ideal scenario is to make businesses more sustainable with an improved triple bottom line, thereby creating value across all three Ps – profit, people and planet.