A new global study conducted by the IBM Institute for Business Value (IBV) has revealed significant insights into the sustainability strategies of Indian enterprises. According to the study, titled “Beyond checking the box,” by reshaping the operationalization of sustainability, organisations stand to unlock considerable business value. The study emphasised the importance of businesses integrating sustainability into all facets of their operations, as opposed to treating it as an optional addition.
Global findings indicate 75% of the surveyed attribute greater improvement in revenue from their sustainability efforts and are 52% more likely to outperform their peers on profitability. The study further found that spending on sustainability reporting exceeds spending on sustainability innovation by 38% in India indicating demand for solutions that facilitate efficient data management and reporting.
“In today’s business world, sustainability has evolved from being optional to indispensable. With AI reshaping industries, integrating sustainability into core business practices add to the long-term value creation. The commitment of businesses to invest in Gen AI for sustainability signals a promising move towards a greener, more prosperous future,” stated Sandip Patel, Managing Director, IBM India Private Limited; General Manager, IBM India/South Asia. “This not only underscores their environmental responsibility but also highlights their readiness to leverage cutting-edge technology for lasting impact and competitiveness.”
Highlights for India from the study:
- Organisations continue to pursue sustainability, but funding, skilling and operationalizing actions remain a challenge
- In India, 78% of executives surveyed agree that sustainability drives better business results, and 68% agree that sustainability is central to their business strategy.
- At the same time, 62% of executives surveyed say that sustainability needs to be a higher priority in their organisation.
- 86% of executive respondents agree that high-quality data and transparency are necessary to achieve sustainability outcomes.
- 44% of executives surveyed also cite a lack of requisite skills as the top barrier to sustainability progress.
Leaders in India expect generative AI to help supercharge sustainability efforts.
- 63% of executives surveyed agree that generative AI will be important for their sustainability efforts.
- 76% say they plan to increase their investment in generative AI for sustainability.
Organisations that embed sustainability more deeply into their operations see benefits that can convert sustainability efforts into business value
- Organisations that embed sustainability spend slightly less on dedicated sustainability efforts as a share of their revenue compared to organisations that don’t embed.
- 28% of executives surveyed they are incorporating sustainability data and insights into operational improvements to a great extent.
- Almost half (47%) of organisations still struggle to fund sustainability investments.
- 53% of these organisations globally say that business benefits are essential for justifying sustainability investments; only 17% say meeting sustainability objectives is in itself sufficient to justify investment.
- These organisations are also 191% more likely to have aligned their data and sustainability strategies to a great extent, and 80% more likely to be using AI for sustainability to a great extent.
