Sustainability cannot be achieved without responsible environmental practices. At the MMA All-India Management Student Convention, speakers highlighted businesses that have successfully integrated eco-conscious strategies into their operations, from green supply chains to waste reduction initiatives. They shared practical steps to reduce the carbon footprint and promote eco-friendly practices.
Mr Suhrith Parthasarathy
Advocate & Policy Commentator
There is an urgent need for corporations and businesses to be eco-conscious. With respect to that urgent need, I’d like to focus on the legal and ethical standpoint and bring my own experience as a practicing lawyer in our courts.
Studies have shown us that the real impact of climate change could cost India up to 2.8% of its GDP. The Constitution of India, which was drafted in 1950 and came into force in 1950, was in some ways, quite prescient. Article 48A of the Constitution mandates that the state shall endeavour to protect and improve the environment. Thus, in many ways, the Constitution of India predates some of the later documents that have come over the course of the last 10 or 20 years when we’ve become increasingly aware of the dangers to our planet. We’ve had a number of legislations that have come into force, like the Water Act, the Air Act, the Environmental Protection Act and several others, each of which seeks to broadly ensure that industries operate in a manner that is environmentally sustainable.
Favouring Business Interests
Apart from these legislations, we’ve had interference from the courts against public interest litigations. Various courts ensure that sustainable development remains the goal of the country. But what is regrettable, at some levels in the approach of the courts, is that the courts have tended to place interest of businesses first, over and above the idea of sustainable development and the interests of the poorest amongst us at the bottom rungs and that needs to change. In trying to bring about that change, businesses—and all of you as future leaders of businesses—have quite an important role to play.
Businesses aren’t just economic entities; they are societal entities as well. The corporate ethos should transcend mere interests of profits and emphasize on adding value to the society and planet. David Attenborough has said, “Our planet is a world and we are all its citizens.” We must all cooperate and make sure that we leave it in a condition that ensures that future generations enjoy it as we have.
Not Just Compliance but Growth
Some of the environmental concerns today which might seem daunting to us also present businesses with an opportunity. A shift towards sustainability doesn’t just mitigate risks; it also opens doors in many ways. We’ve had an increasing demand for green products, sustainable supply chains, and ethical practices. All of this is growing globally. When we look to find innovative solutions to environmental concerns, businesses don’t just ensure compliance with the laws and broad ethical practices. They can also carve out new and profitable niches and ensure that they cement their own brands in an increasingly environment-conscious world.
The ethical standards today have evolved significantly. They transcend mere profit making to encompass a much broader responsibility towards various stakeholders, the environment and society at large. We need to see businesses as custodians of the planet’s future. Their ethical standards and actions will play a crucial role in shaping the world of tomorrow. We must see technology not just as a tool for efficiency. We must also look at our responsibilities towards the planet, and its inhabitants. There has to be some nexus between business ethics and technological solutions, so we arrive at a more sustainable and inclusive future.
There are a number of penalties that one is susceptible to under different legislations when one doesn’t follow the standards that have been set. But it’s also equally important to think about the incentives that are offered, if we provide energy solutions or energy compliance solutions. We have subsidies; we have a national mission for enhanced energy efficiency. Sustainable businesses enjoy better reputations, which in turn, can lead to better relationships with regulators and enable us to get quicker clearances, and even ensure waivers in certain duties and taxes. So, it’s all a win-win.
As future leaders of India’s business landscape, you have a great opportunity and a responsibility to set a good precedent where you can run businesses by looking not just at the next quarter financial results but at the next generation. Businesses shouldn’t just be about boosting stock prices but also be about looking at the health of our planet. Ultimately, we can look towards our constitution for inspiration in this regard. Because our constitution in its preamble itself speaks about liberty, equality and fraternity. These ideals might sound like abstract ideas, but these can only be met if we are all environmentally conscious, because climate change and global warming will only drive inequality.
Dr R Palaniswamy
IAS (Retd),Advisor – Education, Srinivasan Services Trust
I represent SST—Srinivasan Services Trust. I would like to share a few of our programs that we are implementing in SST.
SST is the CSR arm of TVS Motor Company. We have successfully integrated eco-conscious strategies into our operations. We are eco-conscious in all aspects of business and community service. We have taken several initiatives in water conservation, wildlife conservation, afforestation and wastewater treatment.
Biodiversity
We strongly feel that our customers should feel that they have received 25 % extra value over what they pay for our products. Our TVS manufacturing factory in Hosur is spread over 330 acres, out of which 50 acres are dedicated to biodiversity forest that houses 442 trees or plants and 292 animals. We have 27 years of experience in water conservation, wildlife conservation and afforestation in Tamil Nadu and Karnataka.
We started in 1996 in a simple way, initially with focus on repairs and renovation of buildings. Subsequently, we moved into formation of self-help groups; holistic development of villages, working in multiple focus areas; community participation; and moving to remote and tribal village communities. We work in the Nilgiris and Jawadhu hills in Tiruvannamalai. Water was a major thrust area in 2017 and 2020. During Covid, we purchased essential medical equipment. We even imported and supplied them to many government hospitals.
After we do renovation or any work with community participation, we ensure that further upkeep of the infrastructure that we created or renovated is maintained by the community, through 50% contribution. We have 400 field staff who live in the villages and they mingle with the community and act as a part of the community.
Measuring the Impact
Our impact is being measured by external agencies like Institute of Rural Management Anand (IRMA). As per their studies, Padavedu village has seen 141% of growth with our intervention, whereas the nearby Kalasapadi block without intervention has seen only 38%. That says that because of SST TVS intervention, there has been three times more than normal growth.
As part of water conservation initiative, we desilt water bodies, construct and renovate check dams, irrigation tanks and create watershed and farm ponds. We have desilted about 350 water bodies that led to an increase of 150 crore litres storage capacity. In collaboration with NABARD, we created 19 check dams and 120 farm ponds. Our total investment in this sector alone is 400 lakhs in the last five years.
We select the villages through Geo Informatics Center mapping, with the help of experts. SST already has plans to invest 10 crores in this sector also. Another Impact Study by The Center for Water Resources, Anna University has shown how water levels improved in various districts, by our intervention. Tiruvannamalai district saw an improvement by 22 feet. The increase in gross product value ranges from 6 to 18%. The cultivation area also has increased.
In wildlife conservation, we have invested two crores in six tiger reserves in Tamil Nadu and Karnataka. We have supplied various essential items like torches, binoculars and GPS devices in Sathyamangalam Tiger Reserve, BRT Tiger Reserve in Karnataka and Mudumalai. Towards afforestation initiative, in Santhavasal Reserve Forest, Padavedu, we have covered 140 hectares and planted 70,000 plants. Every year, we plant more than a lakh of trees.
We also focus on waste-to-wealth. We help rural women to make useful products from waste to wealth. From banana fibre, river grass and fall leaves, they make beautiful handicraft items. Once they produce these products, marketing is their concern. SST has provided an e-commerce platform branded, ‘Truly Cottage’ for selling their products. Through this initiative, we can avoid plastic usage and generate income for women.
As future leaders, I suggest that you must try to have your own wing for implementing all kinds of activities related to CSR, so that you can have your own ideas properly implemented.
Mr Suniti Bhat
Managing Director, Selan Exploration Technology Ltd
We all love the planet that we live in. We want to leave the planet a ‘better’ place for our children and future generations. The only question that comes is: What is the definition of that ‘better’? How do we define the family that we want to leave better? You could take a very narrow view or a very broader view that includes everybody on the planet. Strategy is always about making choices. It is about deciding what to do and what not to do.
The Bhutan Story
We all talk about net zero by 2050. Some want it to be 2030. In India, we want to achieve it by 2070. But Bhutan is one country that is already net zero. In fact, it is net negative. Bhutan is the only country in the world which emits less carbon footprint than it absorbs, primarily because of the large forest cover that helps it. But Bhutan tries to go beyond the targets. They do something completely different. They still commit to net CO2 reduction targets in how they consume energy and how they drive up their tourism. For someone as an entity, they don’t need to do it. They’re already net negative. They are increasing the radius of what they think their sphere of influence is.
It is always going to be about your perception of what your sphere of influence is. If you walk into a place, you are a part of a team, and you come to a conclusion that my job is only to do my piece of work and achieve my target and KPIs. You will, for sure, rise to a particular point. But if you are someone who will go beyond that, you will be moving up, having differentiated you from others. From an India perspective, we need to go from oil towards natural gas and eventually towards hydrogen more than electric cars. Hydrogen is my personal bet. Because with electric, the biggest challenge is storage. Hydrogen is still a sub-commercial thing. But you can hear a lot of noise going on in the ecosystem around hydrogen. I think, Hydrogen ecosystem is going to pick up in India as well.
Q&A
Can you share an example of the eco-conscious initiatives that you have implemented?
Mr Suniti Bhat: When you produce oil and gas, some of the gas gets released to the atmosphere as greenhouse gas. One of the big initiatives we’re trying with the current technology is piping all the capital natural gas into consumption rather than putting it into the atmosphere. The second thing we are trying is around hydrogen. We are also trying to do some green hydrogen pilots, so that we can see if we can eventually replace natural gas with hydrogen.
What advice would you give to students aspiring to lead the organizations?
Dr R Palaniswamy: Whatever you get from the society, you must try to return more. That’s why we have CSR activities mandated for organizations. My suggestion is, from the beginning, try to frame the policies in such a way that you try to protect the environment and mother planet. That is number one. Number two, try to have your own policy wing or CSR wing. Once your organisation grows, your CSR wing also will grow and you can impact more and more people’s lives.
