With more organisations identifying and implementing environmental, social and governance (ESG) strategies across their businesses, it becomes important to identify how ESG goals can be embedded in this transformation journey. In the third episode of PwC’s ‘ESG: A bridge to action’, in association with Moneycontrol, leaders talk about embedding sustainability, organisational transformation and the role of technology in the ESG journey.
Sambitosh Mohapatra, ESG Leader, PwC India, and Kiran Mazumdar Shaw, Executive Chairperson, Biocon, were invited for the third episode. In a special message before the beginning of the episode, Sanjiv Bajaj, Chairman and Managing Director of Bajaj Finserv, said sustainability was becoming important for both governments and businesses. The actions taken today towards running climate-sensitive businesses will determine whether future generations are protected from or exposed to climate change.
On questioned about how companies are responding to their ESG needs and navigating the path to meet their ESG goals, Sambitosh Mohapatra said that over the last 12–18 months, ESG, along with related issues of climate change, financial and technological availability, is creating a unified, emerging ecosystem. ESG, which was earlier seen as a risk factor, is now an area that can be leveraged by businesses. It is also driving business outcomes, so leaders are focusing on it to improve ratings and brand reputation. Organisations are focusing on doing the right type of business, identifying the correct environmental and social aspects, adopting global best practices and strategising on the kind of technology and finance required to make the necessary ESG transition. Companies looking to adopt a robust ESG framework should communicate their plans to all the stakeholders and develop a transition vision for the next three to five years.
Speaking about ESG standards and goals set by businesses, Kiran Mazumdar Shaw said that the purpose of a business should drive its ESG strategy. Biocon is focused on health equity and its purpose is embedded in greater social and sustainable impact, and the organisation upholds the value of ethical governance while achieving its ESG goals. ESG has become an important contributor to business and business practices.
When questioned about future plans and new targets in the ESG context, the Biocon Chairperson said that an inclusive culture paves the way for an organisation to become sustainable. Biocon was set up to promote a gender-inclusive work culture which promotes equal opportunities and is now focusing on technology adoption to further expand its sustainability footprint. The organisation is spending on R&D to manufacture high-quality medicines and provide managed care services. It is also utilising technology in ensuring transparency, accountability and responsibility.
While discussing how to handhold organisations in their ESG journey, Sambitosh Mohapatra said organisations need to believe in the long-term value creation of sustainability and how to scale up to make their transition journey financially viable. Good ESG transition ideas can be backed up with green financing options, something that is becoming a trend in India as well. Organisations should also communicate to their stakeholders the social aspect and impact of their businesses to access financial and human capital. Technology could help organisations put verifiable and measurable data into the ecosystem for stakeholders to access. Kiran Mazumdar Shaw reiterated the importance of data to bring in objectivity and trust, especially for a healthcare/pharma organisation. She also suggested that stakeholders must evaluate organisations to ensure they continue to remain sustainable.
India Inc.’s ESG journey has several facets, with technology playing a critical role in the ESG transition of an organisation. Going forward, organisations will look to further implement tools and technologies to make their sustainability journey smoother and one in which stakeholders are equally involved.