Customers are Choosing to do Business with Sustainable Businesses: IBM

Elaborating on how sustainability has become much critical for bottom lines, ChittaranjanMeher, Principal, IBM Sustainability Software Business Unit, India/South Asia, in a brief interaction with Amit Singh, highlights how technology is now anchoring the boardroom discussions around sustainability and how organizations are tying sustainability to economic outcomes as they adopt sustainable practices, solutions, and technologies

What is the gravityyou are seeing among the organizations toward sustainability in India?

Some of the larger enterprises in India have traditionally taken a more structured approach with dedicated functions to focus on sustainability initiatives and chief sustainability officers in place. On the other hand, medium to small-size organizations have been relying on theirESG-focused teams or CSR teams to drive their sustainability agenda. However,with SEBI and other regulatory agencies in India mandating ESG reporting and Business Responsibility and Sustainability Reports(BRSR), and, there is certainly an increased focus on sustainability. Besides, regulators, even customers, and employees are choosing to engage with corporations that are committed to sustainability.

There is also a growing realization in the industry that ESG is not just about carbon reporting. Rather, it’s about deriving the right insights on sustainability and bringing those insights back to action for business benefits.

How are organizations tying sustainability to economic outcomes as they adopt sustainable practices, solutions, and technologies?

Sustainability initiatives are often focused on building operational efficiencies, taking sustainable decisions concerning repairing/replacing assets, investing in renewable energy, and bringing greater visibility across the business (internal as well as external across the supply chain). All of these are tied to better economic outcomes. In addition, as mentioned earlier, customers too are increasingly choosing to do business with sustainable organizations, thus making sustainability even more critical to the bottom line.

How is technology critical in addressing sustainability challenges and creating sustainable businesses?

Technology has a  key role to play in driving sustainability initiatives. For instance, for the organization to have the right visibility into the current carbon footprint, data is required. This data comes from various source systems. The technology collects the IT and OT data together. Data also comes directly from meters, sensors, PLCs, SCADA, BMS, and DCS. This needs to be translated from OT protocols to IT understandable formats.

Technology is now able to connect to the source systems, collect the dataset, process it at speed and with the required accuracy, and derive the right insight. This insight then translates into actions/execution. Technology is now anchoring the boardroom discussions around sustainability to the larger team for execution. Organizations are also investing in advanced technology that can take them along the pathtoachieving their sustainability objectives.

What are the government initiatives or private sector innovations you see in India to promote sustainable technologies in India?

New regulations are coming up. For example, the top 1000 listed organizations in India have a mandate for ESG reporting as per SEBI guidelines. We see several organizations appointing Chief Sustainability Officers who report directly tothe CEO/MD and drive the sustainability agenda and initiatives from the top.

Private sector organizations are also broadening the scope of their sustainability agenda beyond  CSR and EHS initiatives. The government is also awarding new contracts on aTCO  basis, making the respective OEM/EPC responsible for not only building the assets but also operating and maintainingthem through their lifespan, thus putting the focus on sustainability.

Where do we stand at innovations for sustainable technologies to meet the green demands of industries?

The recently publishedVerdantix report on ‘Green Quadrant Carbon Management Software’ has called out IBM as a technical leader among all global providers. Our technology is built to capture and manage over 500 quantitative and qualitative data types to support expanding sustainability reporting requirements. They are also well-suited for frameworks and reporting schemes such as: Advancing Net Zero, SBTi, RE100, GRESB, SASB, TCFD, GHG Protocol, Energy Star, NABERS, EPRA, INREV, Better Buildings Partnership, SECR, and others.

How are organizations adopting sustainable technologies in India?

The best and immediate sustainable action for all organizations is to adopt renewable energy for their consumption and India is leading this with huge solar and wind energy transfer. This not only reduces immediate scope-2 emissions but also makes organizations eligible for REC certificates, hence facilitating carbon off-setting. The Indian government is also supporting and promoting sustainable technologies such as EVs in intra-campus transport or public transport, thereby growing their adoption. Other examples include Sustainable Supply Chain that empowers not only the customers but also their consumers with visibility/awareness about the environmental impact which ultimately encourages sustainable practices.