Some 86% of businesses in India see a ‘moderate to strong’ relationship between sustainability and profitability, a new study by SAP has found.
In addition, more than three quarters (77%) state that they have seen sustainability strategies contribute to revenue or profit growth, while 84% said that they saw a moderate or strong increase in the efficiency of business processes from sustainability activities.
Elsewhere, three fifths (58%) of Indian firms said that they are expecting to generate a positive return from their investments in sustainability within the next five years, while 39% intent to increase said investments over the next three years.
SAP revealed the findings at SAP Now, an event held in Mumbai that attracted more than 2,000 delegates.
‘A business necessity’
“Sustainability is now a business necessity rather than merely a moral duty,” said Manish Prasad, president, and managing director of SAP Indian Subcontinent. It can no longer be seen as distinct from the overall financial performance of the company.
“It is evident from the findings of our study that businesses that prioritise sustainability are more successful. The moment has come to consider carbon data similarly to financial data in all corporate processes by integrating financial and environmental decision-making.”
Environmental impact strategy
Other findings from the study induce that the lack of an environmental impact strategy is cited as the top barrier preventing firms from taking environmental actions, with 40% of Indian businesses citing this as a challenge.
Also, 40% of Indian firms state that they are ‘satisfied’ with the quality of the sustainability data that they generate, while 69% utilise sustainability data to inform strategic and operational decisions to a moderate to strong extent.
Regarding emissions tracking, 78% of Indian businesses report moderate or strong tracking of Scope 1 emissions, 77% for Scope 2 emissions, and 65% for Scope 3 emissions.
“The Asian market represents more than 50 percent 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. “It is an encouraging sign that more and more Indian organisations recognise this and are ready to embrace it.”
