Mumbai – 29 April 2024 – At SAP Now, a flagship customer event attended by over 2000 delegates, SAP unveiled a new ‘sustainability study’ that highlights that 86% of Indian organizations see a moderate to strong relationship between sustainability and their organization’s profitability – and are boosting their investments as a result.
Commenting on the survey findings, Paul Marriott, President, SAP Asia Pacific Japan, said, “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. It is an encouraging sign that more and more Indian organizations recognize this and are ready to embrace it.
Manish Prasad, President, and Managing Director of SAP Indian Subcontinent, further added, “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. It is evident from the findings of our study that businesses that prioritize 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.”
Reaping Profits and Efficiency Gains from Sustainability Investments:
- While 77% of Indian businesses have witnessed sustainability strategies contributing to outcomes such as revenue or profit growth to a moderate or strong degree. Similarly, 84% of Indian respondents saw a moderate or strong increase in the efficiency of business processes from sustainability activities.
- 58% of Indian businesses expect to a positive financial return on their sustainability investments within the next five years. In India, 39% of businesses intend to increase their investments in sustainability over the next three years.
Lack of Environmental impact strategy emerges as the top challenge:
- The lack of an environmental impact strategy is the top barrier to taking environmental action with 40% 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.
Indian businesses looking to unlock the value of sustainability data:
- Businesses today 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.
- While 40% of Indian businesses are completely satisfied with the quality of the sustainability data they gather, others believe it’s a long way to go.
Indian businesses demand sustainability data from their ecosystem:
- Almost 8 in 10 of (78%) Indian businesses report moderate or strong tracking of Scope 1 emissions, while that number is 77% for Scope 2 emissions, and 65% for Scope 3 emissions.
- 69% of Indian businesses use sustainability data to inform strategic and operational decision-making to a moderate to strong degree. Subsequently, three-quarters (75%) of respondents said they require sustainability data from their suppliers and 78% demand environmental impact data from partners like logistics and fulfilment to a moderate to strong degree.
“Sakata Inx is strongly focusing on corporate sustainability initiative, “ESG (Environment – Social – Governance)” and steadily progressing our business, contributing to sustainable development goals and complying with laws and regulations. We are dedicated to operating as an “ecologically oriented company” in all aspects of our business operations. As a responsible multinational company, we were searching for a single all-inclusive solution that would allow us to automate our greenhouse gas (GHG) emissions accounting and help us in ensuring regulatory compliance worldwide,” said Rajnish Singh, Director of Manufacturing, Projects and Commercial, Sakata Inx. “Our sustainability goals are well aligned with SAP’s ‘zero emissions, zero waste, and zero inequality’ philosophy. By combining operations, experience, and financial information into our core business processes, SAP Sustainability solutions enable us to integrate sustainability in business at scale.”
At Sula Vineyards, sustainability isn’t just a practice; it’s our way of life. From championing renewable energy to pioneering efficient waste management, our Green Sula initiative is a testament to our commitment to responsible land stewardship. SAP has enabled us to not only advance our sustainability goals but also drive operational efficiency. As the first winery in Asia to earn IWCA Gold membership, we’re proud to lead by example, setting new standards for the wine industry and striving towards a carbon-neutral future by 2050. Around 60% of our energy requirements are fulfilled by solar energy, while electric vehicles comprise 33% of our total fleet. Additionally, we achieve zero liquid discharge by treating and reusing all wastewater within our facility, and we compost winery byproducts to nourish our vineyard.” said, Abhishek Kapoor, CFO of Sula Wines.
Sustainability directly links to SAP’s purpose of helping the world run better and improving people’s lives. SAP’s efforts focus on helping create a sustainable future for the world, our customers, and society at large by bringing together social, environmental, and economic performance.