According to a survey, about seven out of ten domestic companies, mainly those that pollute in ten sectors, are confident of meeting their emission reduction targets, pushed by investors as also committed by the government at the last United Nations summit on the climate change.

At the 26th United Nations Conference of the Parties (COP26) held in the Scottish city of Glasgow last November, the government pledged to further strengthen green goals by pushing organizations to reduce emissions. In a report released on Earth Day (April 22), the Boston Consulting Group said its survey covered ten sectors: automotive, cement, consumer goods, financial services, oil and gas, manufacturing, metals, power and utilities. , professional services, and technology, including comments from 143 CXOs.

The survey showed that 71% of them are convinced of achieving their ecological objectives. “When it comes to implementing and achieving sustainability goals, a significant number of companies said they face significant challenges in the form of technology to address ESG data issues, such as integrating real-time data, regulatory challenges such as lack of standards and financial challenges such as high cost of technologies and cost-competitive construction,” Anirban Mukherjee, Managing Director and Partner at BCG told PTI. India.

Only when these barriers are resolved through scalable regulatory standards and innovative solutions can organizations truly implement their sustainability efforts to bring about greater change in the way they do business, he said. -he adds. According to the survey, no less than 71% of respondents are confident of achieving the COP26 targets with an encouraging regulatory framework with aspects such as incentives for low-carbon technologies and carbon pricing mechanisms. Most respondents from the cement, metals, power and utilities sectors are very confident about achieving sustainability goals.

The report notes that organizations are adopting sustainable business practices for a number of reasons, including brand image, growth, and pressure from investors and stakeholders such as rating agencies, customers, and employees to achieve the ESG (environmental, social and governance) objectives. Around 51% of respondents ranked stakeholder pressure as one of their top reasons for investing in sustainability initiatives, especially those focused on ESG considerations, Mukherjee said citing survey results. .

Companies have considerable understanding of sustainability and climate goals and are increasingly integrating ESG considerations into their business decisions. A full 44% of respondents aim to comply with regulations and become a leader in sustainability and 45% are clear about their emission reduction targets and measure their scope 1 and 2 emissions. Almost two-thirds ( 60%) of cement companies have finalized their net zero schedule and set their periodic emission reduction targets.

The growing trend towards sustainable living is also widening the window of opportunity for all businesses, as 55% suggested their customers are willing to pay more for sustainable alternatives. According to Mukherjee, companies need to align their operations and production processes with standard sustainability norms and practices and they can start this process by setting their sustainability goals on a prioritized basis and identifying their unique Key Performance Indicators (KPIs). to monitor and evaluate progress.

(PTI)

Article first published: Friday, April 22, 2022, 1:26 p.m. [IST]