5 days ago
Towards Net Zero: Rethinking business for a sustainable future
Two thousand and seventy! Every business in India is focused on this year. As India Inc. navigates the complexities of daily operations, aligning with this long-term goal of reaching Net Zero has become central to its strategy and operations. Five decades may seem a long way away but a reset in business operations, some of which are decades old, needs to be executed.
Sustainability is emerging as a central theme for businesses, not just as a regulatory or reputational necessity but also as a moral imperative. With India committed to achieving net zero by 2070, companies bear the onus of mitigating harmful emissions that impact public health.
Sustainability is no longer just a buzzword; it has emerged as a crucial theme that transcends regulatory compliance and reputational concerns, evolving into a moral imperative. With India's commitment to achieving net zero by 2070, the responsibility now rests on companies to mitigate harmful emissions and protect the environment for future generations.
Sustainability-focused regulatory legislations, such as Business Responsibility and Sustainability Reporting (BRSR), are compelling companies to measure their environmental impact and take definite actions to minimise it.
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SUSTAINABILITY METRICS
At the heart of sustainable businesses could be assessing operations at each step. Measuring the carbon footprint, for example, could help in developing a strategy to cut down its emissions. A company's carbon footprint is the amount of greenhouse gas emissions it generates while creating its products or services. Once companies identify the greenhouse gas sources, it could be the early steps in cutting down carbon footprint. Areas for improvement, setting reduction targets, and tracking progress could follow.
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Heavy industries, such as steel, cement, and chemicals, account for over 70 percent of industrial emissions. Transitioning to renewable energy sources can significantly reduce carbon footprint. The roadmap for India's hard-to-abate sectors offers a clear plan that calls for consistent and collaborative efforts from industry players.
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While businesses focus on measuring and tracking their sustainability initiatives, they can educate and engage with their employees to drive home the importance of sustainable practices. They can develop and opt for green policies and use technology to reduce their carbon footprint. Aligning with regulatory requirements ensures businesses stay ahead of compliance while contributing to India's broader sustainability goals. The convergence of competitiveness and decarbonisation paves the way for a sustainable future for everyone.
ENERGY EFFICIENT TOMORROW
Sustainable business operations can contribute in a big way to cutting down emissions, with a 'more electric, more digital approach' driving energy transition with demand-side optimisation at its core.
Reducing consumption, minimising waste, and optimising efficiency could be critical. Improving energy efficiency can account for over 40 percent of the greenhouse gas emissions reductions needed to meet global climate goals by 2040, according to the International Energy Agency. As India aims for 500GW of non-fossil energy by 2030, demand-side management is essential for grid stability and renewable integration.
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By optimising energy consumption, reducing inefficiencies, and enabling prosumers, India can drive nearly 50 percent of total carbon dioxide reductions. Electrification and digitalisation accelerate decarbonisation—energy efficiency alone can cut emissions by 25 percent, while electrifying industrial processes and adopting green hydrogen can further reduce carbon footprints.
Sustainability-focused regulatory frameworks such as Business Responsibility and Sustainability Reporting (BRSR) compel companies to rigorously measure their environmental impact and take concrete actions to minimize it. This shift in accountability will not only enhance corporate reputation but also drive innovation and create competitive advantages in an increasingly eco-conscious market.
Aligning daily operations with the long-term goal of reaching Net Zero has transitioned from a mere priority to a central tenet of corporate strategy. While 2070 may seem far off, the need for a comprehensive reset in business operations—many of which are entrenched in decades-old practices—is urgent and immediate. Digitalisation, electrification, and automation could be the way ahead.
