Becoming carbon-neutral helps companies of all sizes create long-term value.
As calls for tangible climate action grow louder, India Inc is increasingly working to balance their top line, bottom line, and “green line.” A recent global sustainability study by SAP found that 76% of Indian enterprises believe their stakeholders would be moderately or highly tolerant of reduced profitability in pursuit of their organisation’s sustainability goals – indicating leeway to invest in positive sustainability outcomes. Businesses, large and small, are looking to integrate sustainability objectives into their overall strategy, by measuring it, recognising progress, and rewarding accomplishments to create long-term value.
“Sustainability is the biggest business challenge of our generation. At SAP, we’ve known this for a long time and have been working both as an enabler for our customers and within our own business,” says Sanket Deodhar, vice-president – Unicorn & Digital Natives, SAP India. According to him, organisations have to integrate sustainability into their core business operations. “Sustainability should never be considered separate to other business functions like finance or operations – it should be intrinsic to each of them,” he feels.
Making it happen
“At SAP, we believe that embedding sustainability into core business operations can be empowered by data. This allows businesses to establish a baseline for sustainable operations, understand what’s happening, measure, and improve sustainability outcomes,” stresses Deodhar.
As the world becomes more environmentally conscious, the concept of sustainability is evolving rapidly. IDC estimates suggest that by 2024, 30% of organisations will advance their ESG metrics and data management beyond reporting capabilities to generate sustainably driven cost and competitive advantages. This is a huge opportunity for businesses to make sustainability profitable and profitability sustainable. “At SAP, we’ve got the technology and expertise to help customers at every stage of their sustainability journey and, with our broad industry sector expertise and strong partner ecosystem, we have deep insight into industry-specific sustainability challenges and needs,” summarises Deodhar.
Data-driven insights are critical to value-led sustainability
59% of Indian firms see a positive connection between environmental action and profitability
Companies need to integrate sustainability into their core business operations
SAP solutions help transition to low-carbon, low-waste, and more equal business processes
The interview originally appeared in The Financial Express on May 23, 2023