A new global study conducted by the IBM (NYSE: IBM) Institute for Business Value (IBV) has revealed insights into the sustainability strategies of Indian enterprises. According to the study, titled “Beyond checking the box,” the study emphasises the importance of businesses embedding sustainability into their operations, as opposed to treating it as an optional addition.
Official data from the study suggests that organisations in India that embed sustainability are 41% more likely to attribute improvement in revenue from their sustainability efforts and are 90% 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 data management and reporting.
In India, 78% executives surveyed agreed that sustainability drives better business results, and 68% agreed that sustainability is central to their business strategy. At the same time, 62% said that sustainability needs to be a higher priority in their organisation, with 86% of executive respondents agreeing that high-quality data and transparency are necessary to achieve sustainability outcomes. Reportedly, a lack of requisite skills has been identified as the top barrier to sustainability progress by 44% executives. 63% of executives surveyed agreed that generative AI will be important for their sustainability efforts, and 76% said they plan to increase their investment in generative AI for sustainability.
It’s believed that organisations that embed sustainability spend less on dedicated sustainability efforts as a share of their revenue compared to organisations that don’t. At a global level, these organisations are also 191% more likely to have aligned their data and sustainability strategies to an extent, and 80% more likely to be using AI for sustainability to an extent. Around 28% of Indian executives surveyed are incorporating sustainability data and insights into operational improvements to an extent. Almost half (47%) of Indian organisations are believed to still struggle to fund sustainability investments. Moreover, 53% of these organisations globally say that business benefits are essential for justifying sustainability investments, with around 17% saying meeting sustainability objectives is sufficient to justify investment.
“In today’s business world, I think sustainability has evolved from being optional to indispensable. With AI reshaping industries, integrating sustainability into core business practices can add to the long-term value creation. The commitment of businesses to invest in Gen AI for sustainability aims to signal a move towards a greener, prosperous future. I believe this study not only underscores the environmental responsibility of enterprises but also highlights their readiness to leverage cutting-edge technology for lasting impact and competitiveness,” Sandip Patel, managing director, IBM India Private Limited, said.
