Corporate reputation rests on the value added to its stakeholders, and its alignment with environmental, social and governance (ESG) criteria. Inculcating practices that are sustainable and impact-conscious not only lower operational costs, but also attract mindful consumers and investors. Ultimately, future-ready businesses are proactive, adaptable, and visionary, driving sustained growth and relevance in a rapidly changing world.
The global landscape is evolving in such a way where impact parameters of a company are deciding long-term growth and have an almost immediate effect on revenue and reputation. Consumers want to be able to compare products based on price, benefits and the emissions and impact associated with it. By optimising supply chains, adopting renewable energy, and implementing resource reduction programmes, businesses can maintain high productivity with lower environmental and social impact. Sustainability practices ensure long-term viability, addressing environmental and social impacts. Strategic partnerships and diversified portfolios further strengthen resilience.
In a country like India where consumption is increasing faster than ever before, brands need to get a grip on the emissions tied to their products. The reality today is that, for companies to measure and address these issues, they need to start making investments in products, packaging, and innovation - fundamentally business transformation. Many times, these investments could increase the cost of the product. Unfortunately, this translates to consumers buying products which are relatively cheaper, as most products that are available at more affordable price points are not necessarily sustainable. Therein lies the marketer’s dilemma!
Making the right environmental claims require transparency, authenticity, and value demonstration. The combination of genuine environmental claims and a clear demonstration of added value can persuade consumers to pay a green premium, supporting both business growth and environmental sustainability. The concept of charging a green premium involves demonstrating the added value of sustainable products to customers, and thereby meeting customer demands, but at a higher price point.
Continuous assessment and alignment with global environmental standards, ensuring businesses contribute positively to the planet, while maintaining a competitive advantage is championing the board agenda across the world. Here are the major areas to consider in creating a future-ready organisation:
1. ESG as a watermark
Companies that are transparent and truthful about their offerings are more likely to develop a loyal customer base. The level of business transformation required for operational efficiency and authenticity to promote long-term growth requires active engagement from the board and CXOs. The lens through which ESG is seen needs to be changed from the top-down in an organszation. If lowering emission drove the board agenda, sustainability can be seen as a core objective, and the business growth will be exponential.
2. Operations driven by low impact and high value
In the past, price has driven the consumer market and now there is a new expectation emerging – impact. With inaccurate data clouding the reality of environmental impact, consumers who believe they are making responsible choices are misled. This calls for accurate measurement of the carbon footprint of products and services offered to the public.
Companies need to get real about reducing impact and delivering on their business values. Green premiums, green loans and green finance are shaping the way we buy, build, and invest. Moving towards investing in innovation and lower-impact initiatives brings down the cost of operation significantly, giving companies the ability to disclose data-driven emissions, impacting the bottom line and generating value
3. Delivering green
The government is demanding clarity - right from advertisements to ESG reporting, pushing companies towards authenticity. Companies will have to operate within new guidelines, and new guardrails that they were not operating with earlier. No matter how well a product is manufactured, materials are sourced, or waste is handled, if the supply chain is inefficient, it undoes the entire mission of being sustainable. Business transformation around products is about every single aspect, right from sourcing to delivery.
