Following the results of the General Elections, where the BJP fell short of an outright majority but surpassed the halfway mark with its allies, PM Narendra Modi was sworn in for a third consecutive term as Prime Minister on June 8. In his address on June 4, PM Modi reaffirmed his pre-election pledges, emphasizing a commitment to continue the agenda from his previous terms. He highlighted the pressing issue of climate change and reiterated India's dedication to increasing investment in green industrialization, signaling a continued focus on sustainable development and environmental stewardship.
PM Modi said, “Be it green energy or green mobility, we will take India to the forefront.”
Industry expects increased impetus on innovation and sustainability from the new government
As India witnessed the swearing-in of the new government on June 8, industry experts are unified in their call for robust support for the nation's ambitious sustainability goals and net-zero targets. With climate change posing a significant threat, the new administration is expected to prioritize investments in sustainable development to advance India's commitment to environmental stewardship.
Industrialists Reacts
Viral Thakker’s Comment
“India’s new government has a unique opportunity to make the climate ambition a reality through progressive steps encouraging sustainable practices,” says Viral Thakker, Partner and Climate Change & Sustainability Leader, Deloitte South Asia. “As climate challenges escalate all around us and business leaders feel the pressure (61% of CxOs in India said climate change will have a high or very significant impact on their organisation’s strategy and operations over the next three years), it’s imperative to act and promote accountability. Building on past initiatives that prioritised green and eco-friendly approaches, the nation will look to the new regime for an increased impetus on innovation and sustainability that will lay the foundation for our future as a $35 trillion economy (by 2047).”
Sameer Jain’s Comment
Sameer Jain, MD, Primus Partners, told Business Today, “Industries are looking for economic support in the form of tax breaks, subsidies, and grants. These incentives are particularly important during the initial stages of adopting sustainable technologies. Recent budgetary demands for subsidies on green technologies and tax breaks on electric vehicles underscore this need.”
He adds, “Developing a robust green infrastructure network, including smart grids for renewable energy and efficient recycling systems, is essential. Industries in sectors such as electric vehicles and waste management will greatly benefit from such advancements, making sustainable operations more viable.”
Namrata Rana’s Comment
To achieve the country’s sustainable future, the new government can use India’s strength in technology. Namrata Rana, Partner, National Head ESG, KPMG in India, told Business Today, “a crucial component of sustainable growth needs to be the India stack for sustainability. A technology-first and sustainability-ready digital infrastructure that helps manage ecosystems, energy needs, waste, and water resources. The new Indian government can use India’s strengths in technology and an intrinsic understanding of digital innovation and circularity to show what a sustainability-first economy really looks like. Artificial intelligence and different tenets of sustainability can both be harnessed for a greener and yet more prosperous India.”
Driving Sustainable Development Goals forward with Technological Innovation
There is broad consensus among experts that technology and innovation are the primary drivers of global sustainable development and social change today. The United Nations' Sustainable Development Goals (SDGs), established in 2015, call for nations to end poverty, protect the planet, and ensure peace and prosperity by 2030. In India, rapid economic growth is accompanied by significant social and environmental challenges, creating a strong impetus for organizations to adopt sustainable practices.
Organizations are therefore expected not only to reduce their carbon dioxide and other toxic emissions but also to play a crucial role in helping the country achieve ambitious decarbonization targets, such as reaching net-zero emissions by 2070. Leading global tech companies like Google, Microsoft, Amazon, and Apple are aligning their business strategies with sustainability goals.
These tech giants leverage their technological capabilities and global influence to adopt circular economy principles and develop solutions for real-world problems, demonstrating their commitment to a sustainable and inclusive future. Innovations in artificial intelligence, big data analytics, and robotics are poised to revolutionize sustainable agricultural practices, prevent biodiversity loss—including the preservation of mangrove forests—and advance renewable and alternative energy sources.
Global impact through Technology and Corporates
The increasing adoption of Environmental, Social, and Governance (ESG) criteria for investments highlights the corporate sector’s growing commitment to sustainable practices. ESG assets are expected to surpass $53 trillion globally by 2025, accounting for over a third of the projected $140.5 trillion in total assets under management.
In India, the country’s diverse demographics, large population, and varied socio-economic conditions create a prime environment for social innovations. Technologies, especially those developed by tech companies, have the potential to significantly address challenges such as poverty, inequality, environmental degradation, and limited access to healthcare and education.
Indian corporations can lead in this area by integrating sustainability into their business models and investing in social innovation. This involves not only adopting environmentally friendly practices but also using technology to tackle broader social issues.
Roadmap to Net-Zero: Industry Calls for Consistent Policy Environment
India has set a monumental target of achieving net-zero emissions by 2070, a goal that necessitates a stable and long-term policy framework to foster confident investment in sustainable practices. Industries require a clear and detailed roadmap towards net-zero, with minimal policy volatility, to mitigate uncertainty and encourage proactive engagement. This consistent policy environment is crucial for enabling businesses to make informed decisions and commit to long-term investments in green technologies and practices.
Boosting Green Investments: Funding and Innovation Critical for Sustainability
To propel industries towards greener practices, substantial funding for renewable energy projects, carbon capture technologies, and sustainable materials is essential. Government investment in research and development (R&D) is critical to drive innovation in clean technologies, ensuring that industries have access to cutting-edge solutions for sustainability. By prioritizing financial support and technological advancement, the government can accelerate the transition to a green economy and help India meet its ambitious sustainability goals.
Educating Consumers and Skilling Workforce: Key to a Sustainable Future
In addition to industrial advancements, the new government should focus on educating consumers about the benefits of sustainable products to create market demand that drives industries to prioritize sustainability. Investing in skilling programs to support the green economy is equally important. By fostering consumer awareness and building a skilled workforce, India can achieve its sustainable development goals and net-zero target while ensuring a more sustainable future for both businesses and the environment. This comprehensive approach will not only help in achieving the 2070 net-zero goal but also in securing long-term environmental and economic benefits.
The Need to Embrace Sustainability
Economic Growth and Competitive Advantage: Adopting sustainable practices offers numerous advantages. It can enhance operational efficiencies, leading to significant cost savings, and create new market opportunities, giving early adopters a competitive edge. Additionally, many global investors prioritize sustainability when making investments, thereby boosting fundraising opportunities.
Regulatory Compliance and Risk Management: Proactively engaging in sustainable practices helps companies comply with environmental regulations and mitigate potential risks related to environmental degradation. Regulators today view environmental risks as the most significant threats facing corporations.
Reputation and Customer Engagement: Showing dedication to sustainability can improve brand reputation, social perception, and foster deeper connections with eco-minded consumers.
Employee Satisfaction and Talent Attraction: Businesses that prioritize sustainability and social responsibility tend to attract prospective employees, particularly among the younger demographic, thus cultivating a more enthusiastic and dedicated workforce. These collaborative endeavors within the corporate sector can bolster India's journey toward sustainability and pave the way for a future where ethical business conduct and environmental conservation take precedence.
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