75% of large Indian companies have clear sustainability goals, and 84% voluntarily share their sustainability targets. These insights come from the ‘Sustainability in Action’ report, which highlights the maturity of Environmental, Social, and Governance (ESG) practices and their role in long-term value creation for Indian corporations.
Published by IMA India, a business and economic research company, and Uniqus Consultech Inc., the report is comprehensive, incorporating survey results from all key sectors in India, including 150 large companies and SMEs.
The report shows that while 50% of large companies have successfully integrated ESG into their business strategy, small and medium-sized enterprises (SMEs) lag with only 29% doing so. It also found that 61.3% of manufacturing companies expect to see measurable outcomes from their ESG initiatives in the medium to long term, with 13.3% anticipating results within a year.
Large companies reported that their ESG strategies are fully integrated into their organisational strategies. However, SMEs have some progress to make. Nearly half of the surveyed companies have dedicated ESG teams, with 85% of respondents citing ethical responsibility and corporate citizenship as the primary drivers of ESG adoption.
More than half of the respondents are leveraging or exploring Green Finance and technology for their ESG efforts, though they have not made significant progress yet. To boost internal skills, one in two respondents is open to collaborating with external experts and consultants.
The survey also revealed that the manufacturing, chemical, and healthcare sectors lead in sustainable practices. Despite these positive trends, 25% of Indian companies, mostly SMEs, avoid ESG discussions in their Board of Directors meetings. Additionally, only 29% of companies report their ESG initiatives and seek stakeholder feedback.
Suraj Saigal, IMA India’s Research Director said, “Our report underscores the critical role of ESG in shaping the future of Indian businesses. Companies are not only recognising the ethical and regulatory imperatives but are also seeing the financial benefits of sustainable practices. The willingness to leverage green finance and technology shows a proactive approach to overcoming ESG challenges.”
