By Rameesh Kailasam & Rajesh Mehta

For the first part of the 20th century, the business stalwarts, barons and leaders singularly pushed for growth at all costs. Business growth was the only mantra. That was until we began to feel and realize our impact as a species on the Earth as a whole- and the new era that we helped create – the Anthropocene. A steeply rising population, the clearing of vast areas for agriculture and the creation of dense clusters for industrialisation on a global scale made the impact of business clear on the planet, on societies, on indigenous peoples, and the environment.

This was followed by a new generation of business leaders that were conscious of the externalities that business creates and worked to increase the positive ones and minimize the negative ones. Professionals, and young minds who wish to create sustainable change, and work on issues that are driven by purpose and impact. However, the lack of strong leaders continues to prevent the sector from performing to its true potential and bringing about real change on the ground.

The nature of work of the sector is focused on building equity across society, with an aim to protect and promote society’s welfare. That is why the need of the hour is to strengthen leaders both of social impact organizations as well as the corporate world through talent infusion and upskilling to ensure a strong impact at scale through organisations like India Leaders for Social Sector (ILSS). India has its own share of such business leaders from ITC’s Sanjiv Puri to the sprawling business of Vedanta. To them, business is a driver for generating value for society that goes beyond increasing shareholder profits.

Social sector impact

The social sector in India works to solve some very difficult problems facing the country today. It works at multiple levels with multiple groups to make a difference in the lives of people, for problems including poverty, unemployment, malnutrition, illiteracy, social inequality, and climate change, among many others. Sustainability work in many Indian businesses has been the gold standard and has always set the bar for inclusive, sustainable and empathetic leadership. Trying to maximise the social benefits of business on society, these businesses are leading the way for a human-centric business model that uplifts its stakeholders.

For example, for understanding purposes, we take the example of ITC, one of the largest diversified conglomerates in the country. The company under the leadership of its chairman Sanjiv Puri has demonstrated exemplary environmental stewardship by following a two-pronged approach that includes efficient use of resources and augmenting precious natural capital. As part of its commitment to reduce dependence on energy from fossil fuels, nearly 42% of the electrical energy consumed by the company is currently met through renewable sources. Over 57% of electricity at ITC Hotels is generated through renewable sources, such as biomass, wind and solar. Adding to it, 10 of its hotel properties have attained “Net Zero Carbon Status” and have been awarded the “LEED Zero Carbon Certification” by USGBC (United States Green Building Council)

All the ITC factories incorporate appropriate green features and its luxury hotels and office complexes continue to be certified by either the US Green Building Council or Indian Green Building Council. The company’s first offsite 14.9 MW solar plant in Dindigul, Tamil Nadu, has enabled it to meet 90% of its electricity requirement in the state from renewable sources. The company has a stated goal of meeting 100% of purchased grid electricity requirements from renewable sources and is in course to achieve a 50% renewable energy share in its total energy consumption by 2030.

Further, ITC’s afforestation program consisting of social forestry and farm forestry has so far greened over a total of 9.5 lakh acres and generated over 173-million-person days of employment for rural households, including women, poor tribal and marginal farmers. It also creates additional carbon sinks for tackling climate change.

Environment focus

Similarly, Vedanta’s Sesa Goa Iron Ore Business’ leadership has taken multiple bold steps in the recent past to become carbon neutral by 2050. In line with the country’s larger vision of a net zero carbon economy, the company has devised a comprehensive plan to achieve this goal. To reduce greenhouse gases (GHG) emissions, Vedanta Sesa Goa has implemented several projects, such as pulverized coal injection, waste heat recovery power plants, massive plantation drives, development of green belts within operation sites, and refurbishment of blast furnaces. The company also aims to install solar power plants up to 10 MW and upgrade turbines in waste heat recovery power plants in the near future to increase clean power generation. It is also mulling a carbon capture utilization and storage unit of 10 tons per day to make carbon products.

These are a few of the known and many unknown stalwarts of inclusive business. Running a business enterprise in an environment of high uncertainty and geopolitical tensions is never easy. However, backed by empathetic leadership, these companies have shown that business, social, and environmental good can happen at the same time, even in difficult circumstances. If you have a bold vision and know when and where to invest, identifying and nurturing potential leaders through capacity-building programs, specialized trainings, impact-driven engagement, and customised mentoring, like the ones developed by ILSS, could go a long way in creating a sustainability-focused strong leadership.

(Rameesh Kailasam is CEO, Indiatech.org and Rajesh Mehta is a serial entrepreneur and a leading consultant on international business, innovation and public policy. Views are personal.)