Around 86 per cent of Indian organisations perceive a moderate to strong correlation between sustainability and their company's profitability, a new report said on Monday. According to Cloud software giant SAP's new report 77 per cent of Indian businesses have observed that sustainability strategies have contributed to outcomes such as revenue or profit growth to a moderate or strong extent.
Approximately 39 per cent of businesses intend to boost their investments in sustainability within the next three years.
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Furthermore, the report mentioned that 69 per cent of Indian organisations utilise sustainability data to inform strategic and operational decision-making to a moderate to strong extent.
Businesses believe that extracting value from sustainability data is critical for informed decision making. If our sustainability data is not accurate, then the decisions we make to improve the health of our planet and our businesses are cast into doubt. The key is to record and report accurate, granular, and auditable sustainability data and integrate it with financial data to make the right business decision.
Lack Of Environmental Impact Strategy Is Challenging
The lack of an environmental impact strategy is the top barrier to taking environmental action with 40 per cent of Indian businesses finding it a challenge. Other notable challenges include uncertainty due to the COVID-19 pandemic, clear direction on embedding sustainability into business processes and IT systems and a shortage of expertise.
"Sustainability is now a business necessity rather than merely a moral duty. It can no longer be seen as distinct from the overall financial performance of the company," Manish Prasad, President and MD of SAP Indian Subcontinent, said in a statement.
"It is evident from the findings of our study that businesses that prioritise sustainability are more successful," he added.
Additionally, the Cloud software major's report highlighted that 58 per cent of Indian companies expect a favourable financial return on their sustainability investments within the next five years.
"The Asian market represents more than 50 per cent of the world’s emissions, and so as one of the fastest growing hotbeds of innovation and economic activity in the region, India is in a unique position to lead the charge against climate change," said Paul Marriott, President, SAP Asia Pacific Japan.