In today’s corporate landscape, environmental, social, and governance (ESG) considerations are no longer mere buzzwords but have emerged as critical components of business strategy, driving the creation of sustainable brands.
A recent roundtable discussion at KPMG’s Gurugram office underscored the paradigm shift underway as companies recognize the imperative of integrating sustainability and responsible business practices into their core operations. From a traditional focus on financial performance, businesses are now actively incorporating ESG factors into their decision-making processes, reflecting a broader understanding of the interconnectedness between business operations, societal well-being, and environmental sustainability.
Namrata Rana, Partner and National Head for ESG at KPMG in India, emphasized the transformative potential of sustainable brands in shaping a better future for all. She highlighted the need for collective action to address global risks and seize opportunities for positive change, particularly in the face of escalating climate risks.
According to a KPMG study, 80% of India’s top 200 companies have established climate goals and are actively pursuing strategies for climate leadership. Moreover, a significant proportion of CEOs in India are committed to investing in sustainability initiatives, recognizing the link between digital transformation, ESG integration, and long-term growth.
Key themes of the discussion centered on the role of ESG in driving long-term value creation, with companies poised to outperform their peers by effectively managing ESG risks and opportunities. Investors worldwide are increasingly considering ESG factors in their investment decisions, acknowledging the resilience and competitive advantage offered by sustainable businesses.
The discussion also delved into practical strategies for mitigating environmental impact, including sustainable practices, energy efficiency measures, and investments in renewable energy. These initiatives not only drive innovation but also yield cost savings, positioning companies for sustainable growth in the long term.
Overall, the consensus among participants was clear: the journey towards active ESG integration presents a myriad of opportunities for innovation, differentiation, and sustainable growth. By prioritizing ESG considerations, companies can build resilient brands that thrive in an increasingly complex and interconnected world.
