A glimpse into the recently held The Celerity Supply Chain Tribe Strategies Summit in Bengaluru Interviews
Aparna Sharma, HR Practitioner & Independent Director on Corporate Boards…
Dinesh Agrawal, Principal Consultant, Consocia Advisory
Exploring emerging trends, technologies, and best practices in sustainability reporting to drive transparency, stakeholder trust, and continuous improvement
Dear Readers,
As we close another remarkable year, the December issue of Celerity Supply Chain Tribe explores the future of sustainability reporting— an area that is fast becoming indispensable in strategic decision-making. Our cover story, “The Future of Sustainability Reporting: Emerging Trends, Technologies, and Transparency for a Greener Tomorrow,” underscores the critical role ESG (Environmental, Social, and Governance) reporting plays in shaping resilient, sustainable businesses.
With regulatory frameworks becoming more comprehensive, and sustainability broadening to encompass diverse operational aspects, companies must now go beyond compliance to integrate ESG into their core strategies. Cutting-edge technologies like AI, blockchain, and data analytics are transforming the reporting landscape, enabling organizations to measure, manage, and communicate their environmental and social impact with unprecedented accuracy.
This issue also takes pride in showcasing glimpses of our maiden Celerity Supply Chain Tribe Strategies Summit , held in Bengaluru last month. The event brought together brilliant minds from across industries, facilitating insightful discussions and setting the tone for future collaborations. Additionally, we’ve curated a selection of thoughtprovoking quotes published throughout 2024, encapsulating the essence of the value chain and reflecting the diverse perspectives of global leaders.
As we gear up for 2025, let’s pledge to build supply chains that are not only efficient but also equitable and environmentally conscious, ensuring a sustainable legacy for generations to come.
Here’s wishing you a joyous holiday season and a prosperous New Year!
Happy Reading!
Charulata Bansal Publisher Charulata.bansal@celerityin.com
www.supplychaintribe.com
Published by: Charulata
Edited by: Prerna Lodaya e-mail: prerna.lodaya@celerityin.com
Designed by: Lakshminarayanan G e-mail: lakshdesign@gmail.com
Logistics Partner: Blue Dart Express Limited
16 | ‘The NGRBC and BRSR reporting are designed to provide adequate checks & balances’
“The ESG strategy is being used as a tool to identify and manage environmental, social and governance-related risks, improve competitiveness, encourage innovations and be the sector leader,” shares Dinesh Agrawal, Principal Consultant, Consocia Advisory…
19 | ‘ESG Emissions Reporting Mandates a Strong Action from BoDs’
“While we can see action happening on this front, sadly there is hardly any mindful action, which to me, is a greater concern,” highlights Aparna Sharma, HR Practitioner & Independent Director on Corporate Board…
Glimpses of our maiden Celerity Supply Chain Tribe Strategies Summit in Bengaluru. The dynamic discussions, thought-provoking keynotes, and engaging panels left an indelible mark on the community. Here’s sharing few of these moments captured during the day…
Over the last few years, an increasing number of entities have started preparing and disclosing their sustainability reports, either under a mandate or voluntarily in alignment with frameworks and standards set by standard-setting bodies and regulators. With regulatory and reporting frameworks becoming more comprehensive, and sustainability becoming broad based, pervasive and assuming criticality in strategic managerial decision making, ESG Reporting is bound to assume a pivotal role in decision making for all stakeholders. This Cover Story explores emerging trends and best practices in sustainability reporting landscape, and the transformative role of technology in ensuring accurate data collection and analysis.
Mihir Patel, Manager – Business Consulting and Supply Chain & Operations, Ernst & Young LLP, delves into the ways companies can integrate ESG principles into their supply chains, the benefits and challenges of doing so, and real-world examples of successful implementation.
The Year 2024 had its share of unique challenges as well as opportunities for corporates to embrace and explore. Through this section, we offer you few of the chosen strategies covered throughout the year that will always hold importance in a supply chain professional’s strategic mandate…
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November 15th marked yet another first for team Celerity as we expanded our flagship event –Supply Chain Tribe Summit down South. The maiden event was a resounding success with an eclectic mix of attendees and veterans offering their valued insights on the Next Generation Value Chains. Here’s sharing few of these moments captured during the day…
WITH the theme, ‘Decoding Supply Chains of Tomorrow’, the maiden event of Supply Chain Tribe in Bengaluru was a successful affair. With a stellar lineup of 35+ speakers, the event saw 100+ attendees engage in 5 insightful panel discussions followed by honoring the best-inclass supply chain leaders. It was an intense, knowledge-packed day, equipping participants with practical solutions to redefine supply chains for tomorrow.
The attendees during the summit unequivocally highlighted that the summit reinforced the growing significance of supply chains in driving enterprise success, with technology, AI, and
Decision Intelligence at the core of this transformation. As one of the attendees, Yogesh Lohiya, Manager, EY, mentioned, “A key highlight of the event was the confidence among panelists that supply chain leaders will dominate the C-suite in the next decade, paving the way for a new generation of CEOs with a supply chain background.”
Our attendees resonated with the unified output, “The supply chain landscape is brimming with promise, and with the rise of AI, it’s ready for an exciting future. Let’s lead this transformation, drive innovation, and unlock the potential of Data and Decision Intelligence.”
The day began with an impactful fireside chat between Dr. Aditya Gupta, COO, Supply Chain Management Centre at Indian Institute of Management, Bangalore; and Anil Tomar, COOAliaxis India Region, Member Board of Directors at Ashirvad.
These experts offered actionable insights into sustainable supply chains, decarbonization of transportation, reducing emissions, circular economy and deriving value by making supply chains more sustainable. Both of them brought forward their nuanced insights on what would make supply chains of tomorrow. With sustainability ably backed by technology, the fireside chat drove home the crucial importance of these two aspects in driving future supply chains.
It was a moment of pride for us as we honored a distinguished group of industry leaders from Bengaluru in an ode to celebrating their inspiring contribution to the industry. Their exceptional innovation, visionary leadership, and unwavering dedication have not only propelled their organizations to new heights but have also set remarkable standards of excellence across the value chain. (From L to R)
t Sukanta Das, President & Chief Logistics Officer, Hindalco Industries
t Nilanjan Das, VP & Head – Supply Chain Management, Tata Hitachi Construction Machinery Co. Pvt. Ltd.
t Pratibha Nath, Director – Supply Chain, Alstom
t Kalyanasundaram G, SVP & Head Supply Chain – Fashion & Lifestyle Business, Reliance Retail
t Anil Tomar, COO – Aliaxis India Region, and Member Board of Directors at Ashirvad
t Bheem Manthale, President – Operations and Supply chain, Parag Milk Foods
t Somnath Chatterjee, Executive Vice President – Head of Procurement & Logistics (ITC Foods Division), couldn’t make it to receive the award.
Today's supply chains are constantly impacted by numerous external challenges and disruptions. Through this panel, our attendees explored how harnessing data, refining processes, and implementing robust risk mitigation strategies can create a resilient and sustainable supply chain. This panel was moderated by Karthikeyan Subramanian (Karthik), Senior Director, Consulting at GEP Worldwide.
t Sharmishtha Niyogi, India Supply Chain Director, Merck Life Science Pvt. Ltd.
t Dinesh Phutane, Sr DirectorSupply Chain, Herbalife
t Sri Hari PM, Head – SCMA India, Continental Automotive Components (India) Pvt. Ltd.
t Devendra Rawat, Former Director, Planning & Distribution - South Asia and MENA, Levi Strauss
t Ashwin Kak, Sustainability Consultant and Start-up Advisor
With the unprecedented global events and instability, with the Make in India push by the government, how can Indian manufacturers come up to speed and what steps should be taken to seize the opportunity to become the next Manufacturing Hub of the World was the premise of this session. This session was moderated by Hanuman Swami, Global Planning and Fulfilment Manager, ABB.
t Pratibha Nath, Director of Supply Chain, Alstom
t Bheem Manthale, President of Operations and Supply chain, Parag Milk Foods
t Nilanjan Das, VP & Head – Supply Chain Management, Tata Hitachi Construction Machinery Co. Pvt. Ltd.
t Vishal Pandey, Product Lead (Business Application) - Alphabet Supply Chain, Google
t Gaurav Middha, Procurement, ITC (Foods)
This panel delved into the various strategies essential for achieving operational excellence in warehousing. It will cover innovative approaches to optimize storage, enhance inventory management, and improve overall efficiency, ensuring warehouses meet the evolving demands of the modern supply chain ecosystem. Rajan Ekambaram, Business Head - Stockone WMS, Shipsy, ably moderated the session and brought forth the nuanced insights from panelists.
t Tannistha Ganguly, Global Head –Supply Chain WMS (IT), KimberlyClark
t Gopala Krishna, National Head –Supply Chain, Big Basket
t Prasanna Kulkarni – AVP Supply Chain, Reliance Retail Ltd.
t Kapil Premchandani, FounderDirector, KD Supply Chain Solutions
This session put spotlight on the transforming supply chain operations to meet the demands of omnichannel retail. Industry leaders discussed the integration of logistics, technology, and customer experience to create seamless shopping journeys across physical and digital platforms. It was enriching to learn about strategies that drive innovation and growth in a hyper-connected retail world.
Panel Speakers
t Deepak Kumar Goel, Chief of Operations – Last Mile, Shadowfax Technologies
t Kalyanasundaram G, SVP & Head Supply chain – Fashion & Lifestyle Business, Reliance Retail
t Kamlesh Kumar, Vice PresidentSupply Chain, Jumbotail
The session explored the pivotal role of supply chain planning in driving efficient operations at this insightful session. The session moderator was Srinath Reddy, Head – S&OP, United Breweries Ltd.
Panel Speakers
t Yogesh Sarin, Director – Supply Chain, South Asia, Dell Technologies
t Yogeshwar Patil, Head – Supply Chain, Wipro Enterprises Ltd.
t Gaurav Arora, AVP – Head of Procurement and Sourcing, Medreich Ltd.
t Girish KK, Assistant Vice President, Reliance Retail Ventures Ltd.
With stakeholders increasingly demanding transparency and accountability, effective reporting on sustainability practices, especially Scope 3 Emissions, is taking centerstage. Over the last few years, more and more entities have started preparing and disclosing their sustainability reports either under a mandate or voluntarily as per the reporting frameworks/standards provided by standardsetting bodies/ regulators. With regulatory and reporting frameworks widening and sustainability issues becoming broad based, pervasive and assuming criticality in strategic managerial decision making, ESG Reporting is bound to assume a pivotal role in decision making for all stakeholders. This Cover Story explores emerging trends and best practices in sustainability reporting landscape, including the use of technology for accurate data collection and analysis. Expert interviews followed by this compiled story offer nuanced insights into the importance of transparent reporting in building trust with stakeholders and driving continuous improvement in sustainability performance.
AS India commits to achieve its net Zero Vision by 2070, the business sector is being viewed as a critical enabler in furthering this ambition. To support this eco-conscious growth, the government and the regulators have introduced new regulations pertaining to ESG for businesses. In this context, Sustainability Reporting is an emerging discipline encompassing the disclosure and communication of an entity's nonfinancial – Environmental, Social, and Governance (ESG) performance and its overall impact.
Sustainability reporting has evolved as a crucial practice for businesses to disclose their ESG impacts. Initially driven by environmental concerns raised during the industrial revolution, the concept of sustainable development gained global traction with reports like the Brundtland Report. Over the years, frameworks such as Business Responsibility and Sustainability Report (BRSR) have emerged, guiding companies to align their operations with sustainability goals.
According to a PwC report, evolving sustainability reporting requirements reflect an increasing shift towards embracing environmental and social responsibility. As stakeholders’ expectations are undergoing a transformative change, governments and regulatory bodies are working diligently to address critical sustainability issues by directing organizations to disclose their sustainability efforts and impacts.
These directives push businesses to communicate their environmental practices, social initiatives and governance structures transparently. This drives greater accountability and encourages the integration of sustainability into core business strategies. The evolving reporting landscape not only lays emphasis on reporting of the overall impact of an entity but also attempts to enhance stakeholders’ trust by accentuating the need to verify reporting.
The introduction of regulations like the BRSR by SEBI which mandates the top 1,000 listed companies to disclose their performance with respect to various E, S, and G parameters highlights the growing importance of corporate sustainability in India’s growth story.
In fact, India has emerged as one of the frontrunners globally in transitioning to a credible sustainability reporting landscape through the introduction of the BRSR Core.
As mentioned above, Indian companies, nudged by the SEBI, have started reporting on their environmental and sustainability performance, but their submissions lack details and relevant information – finds a survey and assessment done by Centre for Science and Environment (CSE).
In May 2021, SEBI, in a welcome move, launched an initiative called ‘Business Responsibility and Sustainability Reporting (BRSR)’. Under it, the Board wanted the top 1,000 listed companies in India – identified based on their worth in the stock market – to disclose their non-financial data from 2021 to 2023, including data on “environmental stewardship”. SEBI’s BRSR framework asks for this data for two financial years: the current and the previous.
CSE has reviewed 28 reports submitted by 14 of these top companies. Its assessment, titled ‘Strengthening Environmental Reporting under BRSR (Business Responsibility and Sustainability Reporting)’, is largely focused on data provided by the companies pertaining to their actions and records on environmental stewardship.
Nivit Yadav, Programme Director – Industrial Pollution, CSE, stated, “We have reviewed the reports for two
consecutive years – 2021-22 and 202223 – and also analyzed the data for three consecutive years: 2020-21 to 2022-23. The primary aim behind our assessment has been to find out how the format can be strengthened to get quality data out in the public domain, which can then be used by policymakers and investors for more informed decision-making.”
Shobhit Srivastava, Deputy Programme Manager – Industrial Pollution, CSE, added, “The criteria for selection of the 14 companies was to have as much diversity as possible in terms of the sector. The selection is random as well, and is based on the availability of reports.”
The problem lies in the way the BRSR format and questionnaire has been designed, and the kind of questions that have been asked of the companies – it leaves room for submission of information, which is incomplete, thus defeating the purpose behind the entire exercise: that of creating a reporting structure for Indian companies that would help investors make rational decisions.
Consolidated company data vs unitspecific data: “Consolidated company data is not always useful,” highlighted Srivastava. An average value which takes into account both good and bad units cannot represent the sustainability of a company, says the CSE assessment. Instead, sustainability can be judged effectively if poor or average performing units are identified and a roadmap is prepared for them to improve their
We must seize the opportunity to drive meaningful, lasting change – ensuring that sustainability is embedded at every level of corporate decision-making and operational activity, and that companies can clearly demonstrate their contributions to a net zero, nature-positive future and a more equitable world.
Corporations exist within a broader system. The obsession with shareholder primacy has served executives and investors well, but it has left younger generations with a staggering bill. This past-due invoice includes environmental degradation, biodiversity loss, income inequality, and climate change. Going forward, stability and prosperity require that executive leaders advocate for structural changes that enable them to focus beyond the next quarter’s numbers. After all, like the members of Sustainability Inc., they, too, want to pass on a better world than the one they inherited.
Source: HBR
performance on various indicators.
Data without the rationale behind it: The current BRSR format makes it difficult to understand the reasons behind the increase or decrease in values and numbers of the parameters.
Companies tweaking the questionnaire: Companies have often provided data selectively, as per their understanding, and added or deleted rows of information as per their convenience. It should not be left to them to decide how they wish to present the data.
Some important indicators categorized as ‘voluntary’, not ‘mandatory’: Some key indicators such as water withdrawal, consumption and discharge have been placed under ‘Leadership Indicators’, where companies can share information voluntarily. These can be moved to the ‘Essential Indicators’ category, which lists mandatory data points that need to be provided mandatorily.
Yadav highlighted, “The BRSR questionnaire has some problems. For example, the format does not seek information on the type of fuels used by a company, or the sources of renewable and non-renewable energy, or how is the undischarged treated water being used. In the case of hazardous and non-hazardous wastes generated by a company, information on waste-wise
management and disposal is critical –but the questionnaire does not ask for it.”
Opt for a sector-specific approach: The existing disclosure format conceived by SEBI is generic in nature and does not contain sector-specific guidelines. CSE’s assessment indicates that a sectorspecific approach – similar to ones followed by international frameworks -- might be more useful for analysis and comparison while reporting. Since BRSR is aimed at helping investors finance environmentally responsible companies, a sector-specific format would help them gain an easy, holistic and comprehensive understanding when they prepare to invest in a specific sector.
Update the BRSR guidance document: The BRSR questionnaire and format were reviewed in July 2023, but the guidance document has not been updated alongside. There are certain parameters in which the document has not given sufficient clarifications on the information to be provided. A case in point is that of questions that have been asked on air emissions– the guidance document does not offer any directions on how companies should report the data in the format provided.
Include table formats (as suggested by CSE) to enable data capture:
Companies have often provided data as per their understanding and added or deleted rows as per their convenience. It should not be left to companies to decide how they wish to present the data. A proper format with specific tables will help in extracting the required information. For this purpose, SEBI can publish the BRSR questionnaire as a protected spreadsheet with the provision of including the responses from industries, but with no option of editing the format.
Non-hazardous and hazardous wastes should be accounted for separately: Though SEBI has asked for data on generation of different types of waste, when it comes to management and disposal mechanisms, the only information that has been asked for is whether waste is recycled, reused or disposed of. SEBI should also seek information on waste generation and disposal in the top three waste streams under both hazardous and nonhazardous categories. There should be a separate section as well on plastic waste, e-waste, biomedical waste and other types of waste that do not result from manufacturing operations.
Mandate specific energy and water consumption data: The BRSR format carries an optional parameter on energy and water intensity – it
is up to the company to report on it. CSE recommends that companies should be asked to give specific energy consumption (SEC) data in kilowatt (kw) or megawatt (mw)/tonne of the product; and specific water consumption (SWC) figures in cubic metre (m3)/tonne of the product. This data will clearly reflect the overall energy and water efficiency of the manufacturing process of a company.
Yadav pointed out, “The BRSR framework is the first attempt by any regulatory authority or agency in India to mandate the sharing of such detailed environmental performance and compliance data in the public domain – sharing of such data in a transparent manner should be one of the key drivers in decision-making by investors in today’s era of climate change where resource availability is becoming a serious issue.”
These recommendations imply that companies must build new capabilities and governance structures to ensure that their sustainability claims are not only reported but matched with ambitious action plans and transparent disclosures on progress. According to a WBCSD report, organizations use materiality
assessments more strategically to align their sustainability goals with the realworld impacts they need to manage. This year’s analysis shows a significant 22% increase in companies following a double materiality approach, now standing at 77% of the 91% of companies disclosing their materiality process. Additionally, by building material topics into business strategy and governance companies can drive transformation across all levels of business. Businesses can use these changes to reduce the risk of greenwashing, ensuring that sustainability reporting is rooted in accuracy and transparency, further helping to build trust with stakeholders.
It’s vital to remember that disclosure is not the same as communication. Looking ahead, it is anticipated to have more regular communication about sustainability, across broader channels, to engage a wider range of stakeholders. Comprehensive annual reporting will be complemented with engaging, accessible and ongoing updates through digital channels, podcasts and social media content. Critically, the granular and detailed information required by
the disclosures associated with the regulations will need to be ‘translated’ into digestible, meaningful information for wider audiences, that’ll unlock the change and drive the sustainable transformation we need to see.
As Fiona Watson, Senior Director, Corporate Performance & Accountability, WBCSD, was quoted as saying in the report, “No board of directors can ignore the significant pace and impact of changes in the physical, financial and regulatory landscape of sustainability in recent years. As guardians of enterprise value, boards play a central role in supervising the assessment, management and reporting of impacts, risks and opportunities. In the face of new transparency requirements, companies require both incremental adjustments and a fundamental shift in how they approach sustainability reporting and the integration of sustainability into the heart of business strategy and decision making.”
“However, despite growing sustainability commitments and
While expectations and requirements in reporting are rising, many organizations are facing the challenge of the practicalities of implementation. Emerging and supportive guidance often lacks specifics, leading to varied interpretation. A key challenge remains how to provide the necessary data and detail required to deliver impactful and engaging communications. The struggle is real – as is the opportunity
– given the clear mandate to push sustainability reporting on an equal footing with financial reporting. Many are exploring how their reporting and wider communications can add greater value in this shifting landscape.
sustainable products, a significant gap persists between public expectations and the reality of many companies’ practices. Issues like rising greenwashing allegations and climate-related litigation are eroding public trust in the corporate community’s commitment to sustainability and its role in civil society.”
“To meet expectations, reporting approaches should transcend compliance to focus on the consistent measurement, management and reporting of related impacts, risks and opportunities, connecting financial performance to sustainability outcomes and improving accountability mechanisms. This is a systemic shift in which we are all finding our way and developing new ways of working across value chains. But as the world changes around us, we need to act fast to accelerate our understanding of the value at risk from inaction and increased exposure and potential future losses.”
“Transparency will help build the business case for sustainability and realize opportunities for growth, gains in productivity and efficiency and more resilient business models and supply chains.”
The way in which the ESG landscape is evolving in India and how businesses are responding to the developments demonstrates the increasing focus on sustainability. The shift in focus is also underpinned by rapid development and
enhancement of regulations in this field. As a result, it is vital for companies to thoroughly assess their existing ESG guidelines, processes, control and data management mechanisms, and continue to upgrade them in a timely manner to ensure the quality and consistency of ESG performance reporting. Further, it is equally important to recognize that merely offering ESG data is no longer sufficient. The BRSR Core framework’s execution has underlined the need for greater trust in ESG reporting, with the inclusion of the value chain in the disclosures instead of limiting the regulations to an entity’s operations.
In a nutshell, India’s inaugural journey into BRSR reporting has been a revealing and transformative one for the corporate sector. The experience, rich in challenges ranging from data management complexities to environmental and HR data intricacies, has provided valuable lessons. Companies have navigated these challenges with strategic adaptations, implementing robust frameworks, enhancing ESG awareness, and fostering comprehensive compliance. The process has underscored the necessity of a holistic approach to BRSR reporting, one that necessitates meticulous attention to detail and an unwavering commitment to transparency and ethical governance. Future reporting needs to include material sustainability-related financial and impact information and ultimately
reflect a company’s sustainability performance. This presents an opportunity to further review and evolve the Reporting matters assessment framework and put the accent on the performance and impact criteria. This would result in more actionable insights into how companies can leverage transparent reporting to effectively engage stakeholders, attract investors and ultimately drive positive societal impact and build long-term trust.
As Indian corporations continue to evolve in their BRSR journey, these insights lay the groundwork for more refined and effective sustainability practices, heralding a new era of responsible business conduct that aligns with global standards and stakeholder expectations. As we move ahead, businesses, with their innovation, expertise and capital, will be fundamental in ensuring a sustainable future for India. Corporate reporting on ESG topics will act to ensure that stakeholders understand how business is impacting on, and being impacted by, these issues.
Disclaimer: This is a compiled article from various sources such as WBCSD, PwC, McKinsey and CES.
“The ESG strategy of an organization is no longer driven by the preparation of an ESG report for its stakeholders, particularly the investors. The ESG strategy is more being used as a tool to identify and manage environmental, social and governance-related risks, improve competitiveness, encourage innovations and be the sector leader,” shares Dinesh Agrawal, Principal Consultant, Consocia Advisory, during this exclusive interview…
Pls enlighten us on the genesis of BRSR…
It is an Ongoing Commitment for Sustainable Business Practices.
The Business Responsibility and Sustainability Reporting (BRSR) is not a one-time Compliance activity but an ongoing process for companies to ensure compliance with the National Guidelines on Responsible Business Conduct (NGRBC) and manage ESG risks. The crux of the issue lies in the broader goals that a company aims to address.
This has become increasingly critical, as highlighted by a recent incident where a company declared in its BRSR that no child labour was deployed, but for an accident that revealed the presence of child labour in their factory. This false declaration not only tarnished the company’s reputation but also exposed board members to legal risks, violating basic laws and Securities and Exchange Board of India (SEBI’s) Listing Obligations and Disclosure Requirements (LODR) requirements for listed companies.
The NGRBC and BRSR reporting are designed to provide adequate checks and balances which are often bypassed with a focus on meeting the LODR requirement
of the SEBI Act.
The NGRBC reiterates the need to encourage businesses to ensure that not only do they follow these guidelines in business contexts directly within their control or influence, but that they also encourage and support their suppliers, vendors, distributors, partners and other collaborators to follow them.
At the core of BRSR reporting are the NGRBC principles, which provide a comprehensive framework for businesses to assess and report their commitment to responsible and sustainable practices. NGRBC comprises nine principles that cover various aspects of business operations:
a Businesses should conduct and govern themselves with integrity, transparency, and ethical behavior.
a Businesses should provide goods and services that are safe and contribute to sustainability.
a Businesses should promote the wellbeing of all employees.
a Businesses should respect the interests of and be responsive to stakeholders, especially those who are disadvantaged or marginalized.
a Businesses should respect and
Dinesh Agrawal has more than 45 years of experience in the areas of ESG, Sustainability, Business Excellence, Corporate Social Responsibility, Resettlement & Rehabilitation and land acquisition, etc. He was the General Manager and National Head of CSR and Sustainability at NTPC and a consulting advisor in CII. He is a graduate of Mechanical Engineering from GB Pant University and has undergone a Leadership Programme at IIM, Lucknow, a sustainability leadership programme at LEAD International, UK with international training in Costa Rica, Zimbabwe and Thailand; and an advanced programme on Environmental Management at ICH, Norway. He is a member of the advisory group, and Vice Chair of Alliance for Integrity.
promote human rights.
a Businesses should respect and make efforts to protect and restore the environment.
a Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner.
a Businesses should support inclusive growth and equitable development.
a Businesses should engage with and provide value to their customers and consumers in a responsible manner.
a These principles guide businesses in aligning their operations with the broader goals of sustainability, responsible conduct, and positive societal impact.
The scope and application of BRSR extends far beyond traditional financial reporting, encapsulating a company’s commitment to ethical conduct, sustainable practices, and long-term value creation. BRSR reporting offers a structured framework for companies to communicate their responsible business initiatives and their impact on the environment, society, and governance. Understanding the scope and application of BRSR reporting is essential for companies seeking to align with evolving stakeholder expectations and regulatory demands.
The BRSR Core is a sub-set of the BRSR, consisting of a set of Key Performance Indicators (KPIs) / metrics under 9 ESG attributes. Keeping in view the relevance to the Indian / Emerging market context, few new KPIs have been identified for assurance such as job creation in small towns, openness of business, gross wages paid to women, etc. Further, for better global comparability intensity ratios based on revenue adjusted for Purchasing Power Parity (PPP) have been included.
As per the SEBI mandate, the information sought is categorized as “Essential” and “Leadership”. While the essential indicators are expected to be disclosed by every entity that is mandated to file this report, the leadership indicators may be voluntarily disclosed by entities, which aspire to progress to a higher level in their quest to be socially, environmentally and ethically responsible.
India is probably the only country where the government has issued national guidelines on responsible business conduct (NGRBC) which among other things includes a reporting framework. Taking cue from this, the Securities and Exchange Board of India (SEBI) mandated the Business Responsibility and Sustainability Reporting (BRSR) for the top 1000 listed companies. This is being expanded to their supply chain as well. Thus, India has been very proactive to bring in transparency and accountability through sustainability reporting among the companies. This is likely to be expanded to more and more companies in future.
Are we moving towards a framework which is action-oriented rather than gauging the impact?
There are more than 400 ESG ratings, so the important question is who is driving the efforts – is it the Investor or the Customers? I am happy to share that there’s currently a movement going on to bring all these reporting parameters under one uniform rating system so that it becomes easier for organizations to be weighed on a uniform platform. More than just reporting, they also need to have an action plan in place to improve performance on all parameters.
What do you think is the crucial importance of reporting when it comes to Scope 3 emissions?
Let me present to you an interesting insight into ‘the butterfly effect’ – a term proposed by American meteorologist Edward N. Lorenz. This will help us understand the critical role of a strong supply chain in driving a company’s success and how it can create a #ButterflyEffect with far-reaching impacts across operations. He theorized that a butterfly gently flapping its wings in Brazil can set off a chain of events that eventually cause a hurricane halfway across the world in Texas. Global supply chains are similarly interlinked. Their complexity and interdependency mean that one small change can snowball into momentous impact. Such is the
impact of supply chain, and it has only accentuated due to fast shaping up global turn of events.
Scope 3 emissions cover the indirect emissions from their value chain including upstream and downstream activities. In the manufacturing business, its contribution is relatively low as compared to Scope 1 and 2 emissions. But in the IT and financial sector, its contribution is significantly more than Scope 1 and 2.
Therefore, reporting scope 3 emissions has become crucial to get realistic and trustworthy data on total carbon emissions and more and more companies are making efforts to report on scope 3 emissions. SEBI has now mandated the companies to report on BRSR Core from their value chain as per the following timeline. The value chain represents a major portion of scope 3 emissions.
FY 23 – 24: Top 150 listed companies
FY 24 – 25: Top 250 listed companies
FY 25 – 26: Top 500 listed companies
FY 26 – 27: Top 1000 listed companies
What key metrics or indicators do companies need to prioritize to assess the effectiveness and impact of a sustainability strategy within their organizations?
As a thumb rule, the key indicators that drive the sustainability strategy are
The best way to address the issues of transparency and accountability to stakeholders is to change the mindset from annual sustainability reporting. The company should report to all stakeholders on a regular and frequent basis. The corporate presentations including sustainability aspects are presented to investors at least quarterly. A similar approach should be adopted with all other stakeholders.
energy intensity; carbon intensity; water intensity; and waste intensity. These are environmental issues that impact the economics of business operations. However, social and governance aspects pose serious risks in the fastchanging scenario including the issues of compliance.
How can companies approach sustainability reporting and communication to ensure transparency and accountability to stakeholders?
The best way to address the issues of transparency and accountability to stakeholders is to change the mindset from annual sustainability reporting. The company should report to all stakeholders on a regular and frequent basis. The corporate presentations including sustainability aspects are presented to investors at least quarterly. A similar approach should be adopted with all other stakeholders.
What are the challenges that companies face while reporting sustainability measures? How can they address them?
The first and foremost challenge is the commitment of the top management without which it remains a compliance exercise. Then there are issues of what is material to the company and the stakeholders. Data management and accountability for compiling and seeding the data is another issue. These issues can be addressed by establishing the systems and processes, which need to be reviewed and evaluated for effectiveness and efficiency regularly.
In an ever-changing regulatory and societal landscape, how can companies track and adapt
organization’s ESG strategy to remain competitive and compliant?
The ESG strategy of an organization is no longer driven by the preparation of an ESG report for its stakeholders, particularly the investors. The ESG strategy is more being used as a tool to identify and manage environmental, social and governance-related risks, improve competitiveness, encourage innovations and be the sector leader. It is bringing in a shift towards the use of environmentally friendly materials and manufacturing processes ahead of its competitors giving a market edge. Companies are getting ready not only for compliance with national regulations but the future international regulations as well.
What is the way forward in
sustainability reporting? Where do you see India’s stance in this fast shaping up landscape?
India is probably the only country where the government has issued national guidelines on responsible business conduct (NGRBC) which among other things includes a reporting framework. Taking cue from this, the Securities and Exchange Board of India (SEBI) mandated the Business Responsibility and Sustainability Reporting (BRSR) for the top 1000 listed companies. This is being expanded to their supply chain as well. Thus, India has been very proactive to bring in transparency and accountability through sustainability reporting among the companies. This is likely to be expanded to more and more companies in future.
“While we can see action happening on this front, sadly there is hardly any mindful action, which to me, is a greater concern. There is so much fear in terms of the enormity of data that needs to be gathered when it comes to Scope 3 emissions, the framework, the data methodologies, and the entire ecosystem that needs to be mapped. The discussions around the associated costs are very short-sighted as on today, which really need to change as we progress,” highlights
Aparna Sharma, HR Practitioner & Independent Director on Corporate Board…
Enlighten us on the role of Independent Directors in ensuring Sustainability Reporting?
I must admit that it is assumed that once you are part of the Board, you know what Reporting is all about. The discussion needs to start with the awareness level from across the spectrum including the Board Members. There’s great amount of confusion and lack of understanding at the Management level. Once the Board is informed and aware, the organization takes the lead in its ESG journey. It has started off as a Compliance exercise because of the mandate from SEBI. In the rush to abide by the mandate, companies and in fact board members are not realizing that somewhere the loopholes will be caught on and then organizations might land in trouble. Simply having an ESG committee or an Audit committee doesn’t serve the purpose, there needs to be dedicated time & effort devoted to reporting the right measures.
As a positive start on this front, the Ministry of Agriculture & Farmers Welfare has developed a framework for promoting Voluntary Carbon Market (VCM) in India for the Agricultural
sector to encourage small and marginal farmers to get carbon credit benefits. Introducing Carbon Markets to farmers can accelerate the acceptance of ecofriendly agricultural practices while enhancing their income. Farmers can adopt sustainable agriculture practices and get additional income from carbon credits as well as other agro-ecological benefits in terms of improved natural capital such as soil, water, biodiversity, etc.
The Framework for the voluntary carbon markets in the agriculture sector will help promote carbon market among the farming community, incentivize and finance sustainable agricultural practices. The major objective of VCM framework is to create awareness and capacity building of the stakeholders, motivating farmers to adopt sustainable agricultural practices. In the long run, this would contribute to sustainable development goals, support rural livelihoods, and promote resilience in agriculture.
There are small steps being taken in this regard, it’s nascent as far as Boards and their involvement is concerned. Organizations must realize the gravity of the matter that if the reporting is
as a Board
various boards & as an advisor to various corporates in areas such as Strategic Leadership, Organization Behaviour & Strategy for Board Room Effectiveness, Organization Culture & Development, Leadership Relationships, Temperamental Traits & Derailment Factors within Boards.
not correct, how much can it impact the organization in a negative manner.
Are we moving towards a framework which is action-oriented rather than gauging the impact?
While we can see action happening on this front, sadly there is hardly any mindful action, which to me, is a bigger concern. There is so much fear in terms of the enormity of data that needs to be gathered when it comes to Scope 3 emissions, the framework, the data methodologies, and the entire ecosystem that needs to be mapped. The discussions around the associated costs are very short-sighted as on today, which really need to change as we progress.
The Board of Directors (BoD) are the key stakeholders responsible for shaping and providing an oversight to the Governance framework of an organization. I believe they have certain key responsibilities in aligning the strategic decisions with best governance practices to meet the regulatory requirements. First & foremost, they should establish a governance framework which defines the roles, responsibilities and processes. This includes structuring the BoD effectively to oversee the various facets of the company’s governance aspects. There must be a balanced
Reporting is a great opportunity for organizations to be transparent with their stakeholders about their emissions reduction strategy and the progress they have made towards any of these goals. We are seeing many globally leading companies already taking significant steps to set specific targets on Scope 3, with the more advanced companies focusing on science-based initiatives. Scope 3 emissions measurement requires top-to-bottom approach wherein the top management needs to lead from the front and highlight its far-reaching impact that every business vertical has – be it supply chain or product development or the reporting, tax, marketing departments. Once the leadership sets the right example, it’s only a matter of time that the rest of the employees follow suit.
composition of independent and nonindependent directors to maintain objectivity and oversight. Additionally, developing and enforcing a code of conduct is a must to uphold ethical standards across all business practices and implement training programs to reinforce these standards. BoDs must promote transparency in decision-
making processes and financial reporting to build trust with the stakeholders. The organization’s whistleblower mechanism must be easily accessible to internal/ external stakeholders which will help in ensuring that the complaints are thoroughly investigated and addressed.
Risk management is a key consideration when it comes to ESG
In an increasingly interconnected world where sustainability is becoming a defining factor for business success, addressing Scope 3 emissions is not just a responsibility but also an opportunity for companies to exhibit leadership, build resilience, and contribute to a more sustainable future for all. Addressing Scope 3 emissions is a significant step because there is an increased pressure from the stakeholders, including investors, customers, and regulatory bodies, on making Scope 3 emissions a critical area of focus.
reporting norms. For this, companies should develop and implement a risk management framework to identify, assess, and mitigate potential risks. The team should regularly review and update risk management strategies. Internal controls and standard operating procedures should be laid out to safeguard the company’s assets and ensure accurate financial reporting.
All these criteria necessitate integrating sustainability principles into business practices with a focus on reducing the environmental impact of the organization’s operations and ensuring sustainable growth. These principles will go a long way in enhancing transparency in reporting.
What do you think is the crucial importance of reporting when it comes to Scope 3 emissions? How far have the Indian companies reached in this matrix?
In an increasingly interconnected world where sustainability is becoming a defining factor for business success, addressing Scope 3 emissions is not just a responsibility but also an opportunity for companies to exhibit leadership, build resilience, and contribute to a more sustainable future for all. Addressing Scope 3 emissions is a significant step because there is an increased pressure from the stakeholders, including investors, customers, and regulatory bodies, on making Scope 3 emissions a critical area of focus.
I was reading an interesting report by PwC, which mentions, “Measuring and reporting Scope 3 emissions is an effective way for companies to show stakeholders – including investors, customers and employees – that they understand their impact on the environment, and are working actively to consciously reduce
their overall footprint. This presents an important opportunity for companies to proactively manage their value chain sustainability.”
The evolving global regulatory landscape mandates organizations to report their Scope 3 emissions. These dynamics make it imperative that companies have the capabilities to collect, measure, manage and report on value chain GHG emissions so that they can comply with the stringent disclosure requirements.
Talking specifically about India, governing bodies like the Ministry of Corporate Affairs (MCA), the Securities Exchange Board of India (SEBI), the Central Pollution Control Board (CPCB) and the Ministry of Environment, Forest and Climate Change (MoEFCC), have laid down several guidelines and regulations which are specific to the Indian market. Companies must comply with ESG regulations based on the jurisdiction in which they operate. These regulations and stakeholder expectations have pushed companies to embrace ESG aspects in their business strategy. As a result, Board of Directors (BoDs) around the globe have recognized ESG as an important agenda for boardroom discussions.
In a recent update, the Reserve Bank of India (RBI) has issued draft guidelines on disclosure framework on climaterelated financial risks 2024, which is a mandate for regulated entities to disclose information on four major areas – strategy, key areas of governance, risk management, and metrics and targets.
What key metrics or indicators do companies need to prioritize to assess the effectiveness and impact of a sustainability strategy within their organizations?
Reporting is a great opportunity for
organizations to be transparent with their stakeholders about their emissions reduction strategy and the progress they have made towards any of these goals. I believe these are some of the few fundamental questions that the leadership of organizations must deal with: How is the data reported? What frameworks are being used? Does supplier data reporting match the timeframes for their company’s reporting? Do they need to fill in gaps or make any estimations? Is supplier data complete, accurate and verified? How granular is the data? Do their suppliers have the capabilities to provide data at the product level? Can they provide inputs such as emissions by truckload, mode of transport, mileage and fuel data?
We are seeing many globally leading companies already taking significant steps to set specific targets on Scope 3, with the more advanced companies focusing on science-based initiatives. Scope 3 emissions measurement requires top-to-bottom approach wherein the top management needs to lead from the front and highlight its far-reaching impact that every business vertical has – be it supply chain or product development or the reporting, tax, marketing departments. Once the leadership sets the right example, it’s only a matter of time that the rest of the employees follow suit.
In an increasingly interconnected and environmentally conscious world, businesses are under growing pressure to adopt sustainable and responsible practices across their operations. One of the most significant areas where this shift is occurring is in global supply chains, which are often complex networks involving multiple stakeholders, spanning different countries, and often straddling various regulatory environments. Sustainable supply chain management is not only a moral imperative but also a strategic necessity in the current business landscape. This article by Mihir Patel, Manager – Business Consulting and Supply Chain & Operations, Ernst & Young LLP, delves into the ways companies can integrate ESG principles into their supply chains, the benefits and challenges of doing so, and real-world examples of successful implementation.
ENVIRONMENTAL, Social, and Governance (ESG) principles have emerged as a vital framework for companies seeking to incorporate sustainability into their operations. ESG goes beyond traditional corporate social responsibility (CSR) by embedding sustainable practices into the core of a company’s operational strategy. Integrating ESG principles into supply chain management enables companies to reduce their environmental footprint, enhance social equity, and adhere to governance standards, aligning with global frameworks such as the United Nations Sustainable Development Goals (SDGs).
Environmental (E): The environmental component of ESG focuses on reducing the negative impacts of business activities on the planet. In the context of supply chains, this involves measures
such as:
w Reducing carbon emissions through sustainable sourcing and transportation methods
w Minimizing waste production by optimizing processes and adopting circular economy principles
w Using renewable energy and materials to decrease the depletion of natural resources.
The supply chain’s environmental impact is significant, with transportation, manufacturing, and logistics accounting for substantial greenhouse gas emissions. Companies are increasingly adopting practices such as sourcing raw materials sustainably, using energyefficient technologies, and employing green logistics strategies like electric vehicles for transportation and route optimization software to cut down fuel consumption.
Social (S): The social dimension of ESG refers to how businesses impact
Mihir Patel is a recognized strategist and a distinguished author and thought leader in the realm of supply chain management. With over a decade of international experience, Mihir has earned accolades for pioneering transformative initiatives that integrate sustainability into the very fabric of supply chain operations. An MBA from the Kelley School of Business at Indiana University and a degree in Engineering from LD College of Engineering, Gujarat University, have equipped him with a formidable blend of skills. His expertise spans strategic sourcing, process optimization, and the creation of sustainable supply chain models, making him a venerated figure in the industry.
people, including workers, communities, and consumers. Key considerations for supply chains include:
w Ensuring fair labor practices and avoiding human rights violations, such as child or forced labor, in supply chain operations
w Promoting diversity and inclusion within the workforce and among suppliers
w Engaging with local communities and ensuring that supply chain practices do not harm local populations or ecosystems.
Social sustainability in the supply chain often requires careful auditing of suppliers to ensure compliance with labor laws and ethical practices. Companies that prioritize the social aspect of ESG create resilient supply chains that respect human rights and provide fair wages and safe working conditions for all workers involved in production processes.
Governance (G): The governance aspect
of ESG concerns the structures, policies, and processes that guide a company’s ethical conduct and accountability. In supply chain management, this includes:
w Transparent reporting and accountability for supply chain activities
w Establishing and enforcing anticorruption policies, particularly in regions with weaker regulatory environments
w Adopting rigorous ethical standards in dealings with suppliers and partners.
Effective governance ensures that ESG principles are not just aspirational but are integrated into the company’s DNA. Strong governance structures help businesses avoid risks associated with non-compliance, such as legal penalties, and foster trust with stakeholders, investors, and consumers.
The United Nations Sustainable Development Goals (SDGs) provide a comprehensive blueprint for achieving a better and more sustainable future. Integrating ESG principles into supply chains helps companies contribute to several of these goals, particularly:
Goal 12: Responsible Consumption and Production: Sustainable supply chains promote responsible resource use, minimize waste, and reduce the carbon footprint of production processes, contributing directly to this goal.
Goal 8: Decent Work and Economic Growth: By ensuring fair labor practices and promoting economic inclusivity in global supply chains, companies can foster sustainable economic growth and uphold decent work standards.
Goal 13: Climate Action: Reducing emissions and adopting sustainable
Social sustainability in the supply chain often requires careful auditing of suppliers to ensure compliance with labor laws and ethical practices. Companies that prioritize the social aspect of ESG create resilient supply chains that respect human rights and provide fair wages and safe working conditions for all workers involved in production processes.
To align their operations with the SDGs, companies need to build ESG criteria into every layer of the supply chain, from procurement to production to distribution. This requires collaboration between internal teams and external partners, including suppliers, to ensure that sustainability goals are achieved without sacrificing quality or efficiency.
sourcing and production practices helps combat climate change, aligning with the objectives of Goal 13.
Goal 9: Industry, Innovation, and Infrastructure: Incorporating innovative technologies in supply chains can improve sustainability and efficiency, driving progress toward industrial sustainability and resilient infrastructure.
To align their operations with the SDGs, companies need to build ESG criteria into every layer of the supply chain, from procurement to production to distribution. This requires collaboration between internal teams and external partners, including suppliers, to ensure that sustainability goals are achieved without sacrificing quality or efficiency.
Complexity of Global Operations: Global supply chains are vast, involving multiple tiers of suppliers across various countries, each with different regulations, cultural practices, and environmental conditions. Managing sustainability across such diverse networks is a significant challenge. Ensuring that all suppliers adhere to ESG standards requires comprehensive oversight and robust governance structures, which can be difficult to implement and enforce.
Cost Implications: Adopting sustainable practices often requires upfront investments in technology, training, and infrastructure. For example, switching to renewable energy sources or eco-friendly materials may be more expensive initially than relying on traditional, nonsustainable options. Small- and mediumsized enterprises (SMEs), which form a large part of global supply chains, may struggle to bear these costs, posing a
challenge to wide-scale ESG adoption.
Lack of Transparency: One of the critical issues in sustainable supply chain management is transparency. Many companies have limited visibility into the practices of their lower-tier suppliers, which makes it difficult to ensure compliance with ESG principles. Moreover, unethical practices such as corruption and bribery can undermine governance efforts, especially in regions with weaker regulatory frameworks.
Regulatory Fragmentation: Different countries have varying standards for environmental and social responsibility, and navigating these regulatory differences can be daunting. Companies must adapt their ESG strategies to local regulations while maintaining a coherent global sustainability framework. This often involves balancing the expectations of different stakeholders, including governments, customers, and investors.
By using technology for greater visibility and data-driven decision-making, newage companies can ensure their supply chains are both ethical and efficient. They can utilize cutting-edge technologies like blockchain, artificial intelligence (AI), and the Internet of Things (IoT) to bring transparency and accountability into their supply chains.
w Blockchain for Supply Chain Transparency: Blockchain enables end-to-end traceability by creating a decentralized and tamper-proof ledger that records every transaction within the supply chain. Companies like Provenance and IBM’s Food Trust platform allow businesses to track materials from the source to the final
product, ensuring that suppliers meet sustainability standards. New-age businesses can use this technology to guarantee ethically sourced raw materials, fair labor practices, and low carbon footprints.
w AI for Predictive Sustainability: Artificial intelligence can be used to forecast supply chain disruptions, optimize routes for carbon footprint reduction, and identify inefficiencies. New-age companies can use AIpowered analytics to gather data on energy consumption, waste generation, and resource use across their supply chains, allowing for realtime ESG performance monitoring.
w IoT for Resource Optimization: The use of IoT in warehouses and logistics enables the realtime monitoring of energy usage, emissions, and water consumption. For instance, IoT sensors can monitor the energy consumption of manufacturing equipment, helping companies optimize processes and reduce waste.
w Embedding Circular Economy Principles: The circular economy focuses on minimizing waste by reusing, recycling, and extending the life cycle of products. New-age companies are well-positioned to adopt circularity, as many already leverage digital business models that allow for innovation.
w Product-as-a-Service Models: Instead of traditional ownership, companies can shift to servicebased models where customers use products temporarily, and then the products are returned, refurbished, and reused. For example, companies like Rent the Runway (fashion)
and The RealReal (luxury goods) capitalize on the circular economy by promoting reuse and resale.
w Closed-Loop Supply Chains: New-age companies can design closed-loop supply chains where end-of-life products are returned to the manufacturer for recycling or repurposing. For instance, smartphone manufacturers like Fairphone design their products with modular components that can be easily replaced or recycled, reducing electronic waste.
w Sustainable Packaging: Many e-commerce companies and startups have started incorporating sustainable packaging into their operations. They can use biodegradable, recyclable, or reusable packaging to minimize environmental impact. New-age companies should work closely with suppliers to design packaging solutions that reduce waste while meeting customer expectations.
New-age companies can adopt ESG principles by being highly selective about the suppliers and partners they work with. Collaboration with suppliers to ensure they meet sustainability benchmarks is crucial.
w Ethical Sourcing from the Start: One of the advantages for new-age companies is that they can build their supplier networks from scratch with ESG in mind. Startups can prioritize sourcing from suppliers who meet international sustainability standards, such as ISO 14001
(environmental management) or B Corporation certification.
w Collaborative Supplier Development: For many smaller suppliers, meeting stringent ESG standards can be difficult due to a lack of resources. New-age companies can provide technical support and training to help suppliers improve their sustainability performance. Collaboration and long-term partnerships foster trust and shared ESG goals, benefiting both parties.
w Supply Chain Audits and Certifications: Regular third-party audits can help companies verify that suppliers comply with labor, environmental, and governance standards. Certifications like Fair Trade, Rainforest Alliance, and Cradle to Cradle give new-age companies credibility in maintaining high sustainability standards throughout the supply chain.
w Creating Digital Platforms for ESG Reporting: Digital-first companies have the advantage of building systems for real-time ESG performance reporting from the ground up. Transparent reporting builds trust with stakeholders and can be a valuable tool for maintaining investor confidence, especially as ESG becomes an increasingly important factor for venture capital firms and investors.
w ESG Dashboards: New-age companies can develop digital dashboards that track key ESG metrics such as carbon emissions, water usage, waste generation, and supplier compliance. By collecting and analyzing this data, companies can
easily report on their sustainability performance to stakeholders and regulatory bodies.
w Automating ESG Reporting: New-age companies can leverage software to automate the collection and reporting of ESG data, reducing the administrative burden. Software solutions like SAP’s sustainability modules or startups like Planetly and Watershed offer ESG performance tracking and reporting tools tailored for digital-first businesses.
w Integration of ESG into Corporate KPIs: To fully integrate ESG into their operations, companies can incorporate ESG metrics into their core key performance indicators (KPIs). By doing this, sustainability goals are treated with the same importance as financial goals, ensuring that ESG is a priority across the company’s entire operation.
w Building a Sustainable Culture: New-age companies often foster a culture of innovation and adaptability, making it easier to weave sustainability into their business ethos. Incorporating ESG principles into company culture encourages employees and stakeholders to embrace sustainability as a core value.
w Employee Engagement and Education: New-age companies can build strong ESG foundations by educating their employees about sustainability issues and encouraging them to contribute ideas for improving the company’s environmental and social impact. Google, for example, has employee-driven sustainability initiatives where workers participate
Digital-first companies have the advantage of building systems for real-time ESG performance reporting from the ground up. Transparent reporting builds trust with stakeholders and can be a valuable tool for maintaining investor confidence, especially as ESG becomes an increasingly important factor for venture capital firms and investors.
in developing and executing the company’s sustainability strategies.
w Diversity, Equity, and Inclusion (DEI): The social aspect of ESG focuses on creating diverse and inclusive workplaces. New-age companies, particularly in the tech and innovation sectors, can lead by example by promoting DEI at all levels. Hiring policies that prioritize diversity, providing equal opportunities, and cultivating a supportive and inclusive work environment are essential for creating socially sustainable businesses.
w Sustainability in Leadership:
Company leaders need to champion sustainability as part of the business strategy. New-age companies, especially those led by socially conscious entrepreneurs, should make it clear that sustainability is not just an afterthought but central to the company’s mission. Leadership buy-in ensures that sustainability initiatives receive the necessary resources and attention.
New-age companies, particularly in the post-pandemic world, are increasingly exploring localized supply chains to
reduce reliance on global suppliers and mitigate risks associated with longdistance transportation. In line with the SDGs, new-age companies can support local suppliers, particularly in developing regions, by incorporating them into their supply chains. This not only contributes to the local economy but also reduces the environmental costs of shipping and logistics. By relocating production closer to key markets, new-age companies can reduce their carbon footprints and increase supply chain resilience. Nearshoring, or sourcing suppliers closer to the company’s operational base, reduces transportation costs and emissions, while improving speed to market.
Unilever: Unilever, a global consumer goods company, has been at the forefront of integrating ESG principles into its supply chain. Through its Sustainable Living Plan, Unilever has committed to halving its environmental impact by reducing emissions, waste, and water usage in its operations and supply chain. Unilever has also focused on sourcing raw materials sustainably, with a goal to have 100% of its agricultural materials sourced sustainably by 2030. The company works closely with smallholder farmers in developing countries, providing training and resources to help them adopt sustainable farming practices, which aligns with the SDGs focused on poverty reduction, sustainable agriculture, and decent work.
chain strategy. The company sources 100% of its cotton from sustainable sources and aims to use only renewable or recycled materials in its products by 2030. IKEA also emphasizes energy efficiency in its operations, with many of its stores running on renewable energy. The company’s approach to sustainability extends to its suppliers, where it ensures that all partners adhere to strict environmental and social standards. IKEA conducts regular audits of its suppliers and works collaboratively to improve their sustainability performance. As global supply chains continue to evolve, companies that embrace ESG principles will be better positioned to succeed in a world increasingly focused on sustainability and corporate responsibility.
IKEA: IKEA, the multinational furniture retailer, has embedded sustainability deeply into its supply
The integration of ESG principles into global supply chains is no longer a niche trend but a fundamental requirement for businesses aiming to thrive in an increasingly sustainability-conscious world. By focusing on environmental responsibility, social equity, and strong governance, companies can not only reduce their ecological impact but also drive long-term operational efficiency, innovation, and profitability. The benefits of aligning supply chain practices with
the UN's Sustainable Development Goals (SDGs) are evident in the ability to foster ethical partnerships, ensure compliance with international standards, and enhance resilience against disruptions like climate change and regulatory shifts. While there are challenges—ranging from the complexity of global operations to the upfront costs of implementing sustainable practices—technological advances and collaborative strategies provide clear pathways for overcoming these obstacles. New-age companies, particularly, are well-positioned to adopt forward-thinking approaches by leveraging technologies like blockchain, AI, and IoT, and embracing models such as the circular economy. Established companies like Unilever and IKEA showcase that ESG integration can be done successfully without compromising profitability.
As businesses move forward, it is critical that they make sustainability a core part of their strategy rather than a peripheral concern. Companies must ask themselves: are they ready to be pioneers in building supply chains that safeguard the future of both people and the planet? The opportunity for lasting, positive impact is here—NOW is the TIME to ACT!
The Year 2024 had its share of unique challenges as well as opportunities for corporates to embrace and explore. Just like every time, the pathbreaking companies emerged victorious, channeling through tough terrains. Since inception, year on year, the editorial team at Celerity has been able to capture the nuanced insights of industry leaders for others to take inspiration and carve their own growth story. This year too we were fortunate to bring our readers thought leadership success stories from the experts. Through this section, we offer you few of the chosen strategies covered throughout the year that will always hold importance in a supply chain professional’s strategic mandate…
Dharmesh Srivastava, Vice President – Supply Chain, Agro Tech Foods Ltd.
Yogesh Sarin, Director - Supply Chain, South Asia, Dell Technologies
Dirk Stolte, Supply Chain & Industry 4.0 expert
Mayur Chhabra, Head – Supply Chain, White Cement and Paints Division, JK Cement Ltd.
Supply Chain Managers must train themselves to face every moment the unexpected situations as we are dealing with many uncertainties. Only a peaceful mind can look for a solution. Every problem has an opportunity for improvement. It is very easy to get sucked into Blame Game. Instead of blaming any person for a problem, first diagnose the root cause and create a robust process, infrastructure, trained resources to handle situations for future. Trust your people, train them, take care of them. It takes hard work to build and nurture a high performing team, it takes years and years to create top performers. There are ups and downs in the career of every professional. If you support your team in the thick of the problems – they learn and become better with every passing day.
Embracing change and continuous learning is crucial to staying adaptable in a dynamic environment. Open mindedness & adaptability, proactive attitude to learn, welcoming feedback & focus on goals are some ways that can surely help. While there may be no one size that fit all, some of the effective learnings include upholding integrity & ethics, agility to adapt & be resilient, clear communication towards strategic direction & vision, empowerment & delegation with sense of empathy & emotional intelligence. Welcome uncertainty with passion as that is the only constant that would keep you inspired in everyday supply chain adventures. It’s ok to fail but not ok to give up!
Supply Chain leaders of the future require a holistic mindset with an excellent knowledge and expertise about the end-to-end Supply Chain (E2E Supply Chain) as the fundament to challenge the status quo. At the same time, they need to have more than just an insight of industry 4.0 & digital supply chain technology developments. Understanding when to invest in which technology requires a combination of Industry 4.0 expertise and strategic foresight. The successful supply chain leader has the competence to deal with the fact that supply chain disruptions are omnipresent and unpredictable at the same time. Being able to deal with these shifts in the global economy has become a core competency for competitive supply chains. But the future supply chain leader is required to go beyond the concept of resiliency.
‘Success doesn’t come overnight’, it takes toll on your time & efforts to become a successful leader. No wonder how many sleepless nights had gone behind the success of an individual, but I see them as an investment for a bright future / career. In this constant pursuit of becoming a leader, one needs to lead by example, not necessarily all your tasks will be super hit. There will be some failures as well. Whatever be the reason, a true leader will never get impacted by failures, rather he will prepare in much better way / work on the shortcomings / learnings to make sure that failure is turned into grand success. Remember not everyone will like you, but one needs to understand that conflict is part of the job & try to take everyone along. If any individual is able to follow the same, the transformation from an Individual to a successful leader will be seamless.
Rajiv Ganju, Sr. Vice President – Manufacturing & Global Supply Chain, Luminous Power Technologies (P) Ltd.
Saurabh Lal, Sr Director - Network Design, Logistics, Planning & Digital, Kellanova (Kellogg Asia Pacific Pte Ltd)
Dr. Radha Mohan Gupta, Supply Chain Strategist & Advisor and Adjunct Professor at IMT Ghaziabad
The world is becoming SMART and so are workplaces. This is the time to unlearn conventional wisdom and apply SMART tools. This is beautifully explained in the book “Break All the Rules” by Marcus Buckingham and Curt Coffman. The book reveals what great managers do differently from ordinary managers to coax world class performance out of their workers. Great managers routinely break all the rules. They take the conventional wisdom about human nature and managing people and turn it upside down. Being supply chain professionals, we believe in enhancing the efficiency and the gross margins of the product. This should be the ultimate mantra of every supply chain professional. They must have the passion for supply chain and as they say, ‘Always stay hungry & curious’. I don’t shy away from stating that shamelessly emulate an already successful idea if it’s working well and is delivering what the customers want.
Supply chains are undergoing rapid transformation with the use of machine learning and artificial intelligence, which can enable us to optimize our processes, reduce costs, and improve customer satisfaction. AI and ML based systems are the future of supply chains; however, I believe that the more pressing challenge is how to address the issues of data quality, skill development, and the transition from descriptive to prescriptive analytics and planning. We need to make sure the data we feed into our new systems is accurate and reliable. This can be a major challenge for large or complex enterprises with multiple sources of data. Further, we need to train and empower our people to use the new technologies and methods. Weaning away from spreadsheets and presentation is required but perhaps not so easy.
More than the product flow, supply chains are now all about the information flow. I would rather say the future supply chains will be based on information sharing ably facilitated by digital transformation. As a result, these will become supply networks. I think there will be an increased focus on end-to-end supply chain visibility and increased responsiveness. This will include leveraging IoT sensors, RFID tech, blockchain technology, and many other advanced tools. The landscape of talent will see a dramatic shift as AI will take over repetitive jobs and we would need competitive talent to work on continuous innovation. Risk management and resilience will become an integral part of the supply chain.
Aarti Garde, Sr. Team Leader – Supply Chain Analytics & Digitalization, Elanco Innovation and Alliance Centre India, IAC
In the journey towards a more inclusive supply chain ecosystem, women can break biases and build support systems through a combination of clarity, communication, and organization culture. Having clear career goals and voicing these ambitions is crucial. When women articulate their aspirations and seek support, they not only pave the way for their own advancement but also set a precedent for their colleagues. An organization’s culture plays a significant role in this process. A culture that encourages open dialogue, values diversity, and supports career development can help women overcome challenges and biases. As women receive support, they are often inspired to extend the same to their colleagues, fostering a cycle of empowerment. Lastly, it’s essential to remember that no goal is unattainable. With determination, support, and a conducive work environment, women can break through barriers and contribute significantly to an inclusive supply chain ecosystem.
Xerrxes Master, President, AMTOI
Subodh Nagarsekar, VP – Procurement & Supply Chain, Rentokil Initial
Rahul Vishwakarma, Co-Founder & CEO, Crest
Arpita Srivastava, Supply Chain Planning & Logistics Leader, Schreiber Foods (India)
The government’s interventions are set to transform India’s logistics landscape, making it more integrated, efficient and cost-effective. Continued focus on multimodal transport solutions, enhanced infrastructure and innovative policies will be crucial for sustaining this work and addressing challenges related to funding execution and technological integration would be the key to fully realizing the potential of these initiatives. Overall, these government initiatives are poised to significantly enhance India’s multimodal logistics capabilities, boosting trade, reducing cost and supporting economic growth. Multimodalism in global logistics brings significant advantages in terms of efficiency, cost reduction, environmental benefits, and reliability. It requires substantial investment in infrastructure and technology, as well as effective coordination between different transportation modes. As global trade continues to expand, the importance of multimodal logistics will only increase, driving innovations and improvements in the supply chain industry.
The skill development landscape in India is a mix of government led initiatives, private sector participation, and community driven programs. Leading Indian corporates have recognized the need to bridge the skill gap and have partnered with training institutions to offer industry relevant skill development courses to create a workforce aligned with contemporary industry demands. Majority of the jobs @ 70% are generated in companies with manpower of less than 20 people. This is more so in the manufacturing industry, and it is therefore critical that small companies and other employers verify and validate the job roles and performance metrics from their perspective and adapt them to suit their requirements. For higher levels of competencies and expertise, exposure to practical work experience is a must. The Corporate Sector should open its doors to interns and trainees in large numbers – through on-the-job training opportunities. The corporates need to work closely with academic institutes like ITIs, which may help them design courses pertaining to industry standards and industry requirements.
Demand planning plays a pivotal role in creating customer-centric supply chains by aligning production, inventory, and distribution with customer demand. Here are several ways in which demand planning contributes to the development of customercentric supply chains, such as customer Satisfaction, responsive inventory management; order fulfilment efficiency; reduced lead times; product availability and variety; dynamic supply chain adjustments; personalized customer experiences; optimized product launches; cost optimization; enhanced communication and collaboration; and continuous improvement. Businesses that prioritize accurate demand forecasting and align their operations with customer demand are better positioned to build strong, lasting relationships with their customers.
Over the years, I learnt that “People are the most important pillar of the supply chain”. While technology and processes are integral, the human element remains the most critical one for translating plans into actionable results. Whether it’s managing relationships with customers or suppliers, coordinating within organizations, or responding to unexpected situations, the competence of individuals within the supply chain is paramount. In the last few years, I have witnessed several instances where systems may have crashed, but it was “people” that shouldered the supply chain and ensured delivery despite disruptions. Hence, investing in this pillar of supply chain, and recognizing the value each team member brings becomes imperative.
Satish Karunakaran, Director – Transformation, Pepe Jeans India Ltd.
Sanjeev Setia, Supply Chain Expert & Former VP – Supply Chain, Haldiram Snacks
As Alvin Toffler said more than 50 years ago “The illiterate of the 21st Century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn.” With all of these changes happening at the same time, one of the most challenging tasks is change management within the organization. There are people with many years of experience who know intuitively this is how it works. Implementing meaningful change without actually hampering the creativity of the people is an arduous task. To ensure that things go seamlessly, it is best to engage with the key stakeholders right from the start so that they understand the context, task on hand and need for the change. Technology deployment shouldn’t be seen as merely replacing human intuition or creativity. If change management is done well, it can lead to a far more agile and motivated high-performance organization.
Customization & Premiumization are the two biggest trends that we will witness in FMCG. That is why industry players are looking to create experiences and encourage their consumers to share their experiences with the product. Many companies invest in digital capabilities to enable more personalized communication via social media and community management. We are also seeing a noticeable shift towards eco-friendly packaging and sustainable sourcing of raw materials. Another notable trend centers around consumers’ heightened awareness of product ingredients. With a focus on making swift and informed choices regarding nutritional content, consumers are actively scrutinizing product formulations. The industry is expected to witness a sustained focus on conscious snacking, striking a delicate balance between health and taste. This trend is likely to be fueled by the growing preference of the working population for convenient foods that are not only tasty but also high in nutritional value.
Yogesh Punde, Senior Industry Principal, Kinaxis
Demand Planning for the future requires planners to communicate with the stakeholder groups to enrich the forecast (the most important stakeholder being the end consumer). They must be ready to respond to any eventuality. Demand uncertainty will require more flexibility and speed from the planners. They should have a base case, best case, worst case, etc., scenarios ready to be put into action. Companies must allow segmentation strategies to help prioritize time and effort spent on different activities. While planners have been traditionally well versed with MS Excel, being future ready will require adopting new technology platforms. To remain flexible and agile, organizations will need to move from siloed functional planning to having end-toend supply chain visibility. Concurrent planning bridges functional silos and connects all nodes in the supply chain. It provides the ability to plan, monitor and respond to supply chain changes in a harmonious environment simultaneously and continuously. This enables cross-functional collaboration and faster, more effective decision making, resulting in improved analytics accuracy, reduced planning cycles, higher profitability, and quicker response times.
With the promise to intrigue and inspire companies to embrace and work towards the Net Zero Goal, team Celerity achieved yet another and the most important first in the year 2024 by hosting industry-first event on Scope 3 Emissions, which compelled industry stakeholders to actually put utmost emphasis on the most crucial sustainability parameter – Reporting Scope 3 Emission, which often remains amiss in most of the sustainability reports as it is the most complex to report too. While the crucial start has been made, we are not going to stop here… In fact, our readers will see an increased coverage on sustainability from here on wherein we would present industry insights on the possibilities and expanse of reducing overall emissions to prepare the supply chain professionals for the interesting journey ahead… Here’s offering you some of the most powerful quotes we captured this year…
Shailesh Haribhakti, ESG Champion, Board Chairman, Independent Director at some of the country’s most preeminent organizations
Prabodha Acharya, Chief Sustainability Officer, JSW Group
To bring Scope 3 emissions into focus, companies must embrace three fundamental principles: collaboration, innovation, and technology. First, collaboration is crucial. Large corporations should work closely with their suppliers, particularly MSMEs (Micro, Small, and Medium Enterprises), to integrate them into carbon emissions measurement efforts. This involves paying a portion of the costs and ensuring that payments to MSMEs are made on time. By doing so, MSMEs will be more motivated to participate in the value chain, contributing to the overall sustainability effort. Moreover, companies should diversify their supplier base, prioritizing those with the lowest carbon footprints. By doing so, Scope 3 will become a “Must Do” rather than an afterthought. The role of collaboration cannot be overstated; it is the bedrock upon which sustainable supply chains are built.
Organizations aiming to accurately manage/control Scope 3 emissions need an integrated ecosystem that includes robust data-sharing platforms, supply chain transparency tools, and collaborative frameworks. Infrastructure should support real-time tracking of external activities, involve suppliers in emission reporting, and utilize technologies like IoT and blockchain for reliable data. Emerging technologies are pivotal for organizations’ sustainability goals. AI-driven analytics aids in smart decision making, while IoT enhances supply chain visibility. Circular economy initiatives benefit from blockchain. Clean energy tech and carbon capture contribute to emission reduction. Integration of these technologies is essential for achieving sustainability goals. Technology companies are leveraging their innovation prowess to lead in sustainability. AI, IoT, and data analytics optimize resource use. Renewable energy adoption and circular economy models reduce waste. Smart supply chains, enabled by blockchain, enhance transparency.
Madhvendra Singh, Chief Executive Officer, Gujarat Maritime Cluster
Jaswinder Saini, VP - Procurement, Tata Play Ltd.
Pavan Sharma, Director, Advance SCS and Co-Founder & CEO, PlanetWise Pte. Ltd.
Vishal Bhavsar, Head – ESG, Multiples Alternate Asset Management
Shipping industry can work towards decarbonation by regressively adopting the renewable energy investment and deployment. Producing fuels like hydrogen, ammonia, and methanol demands substantial energy, and these fuels can only effectively mitigate emissions if the energy used for their production is also decarbonized. Presently, only 30% of the world’s energy is renewable, indicating a need for rapid scaling up of renewable energy investment and deployment for the shipping industry to produce enough zero emissions fuel to achieve net-zero targets by 2050. Initiatives like the Green Shipping Challenge, supported by the Ocean Panel, encourage commitments toward net-zero emissions, illustrating progress in this realm.
Sustainability serves as a key factor in attracting customers to an organization. Today’s customers are informed and savvy about a company’s operations. They can readily access information on whether a company sources its raw materials ethically or delivers goods sustainably. Customers tend to favor organizations that adhere to sustainability over those that do not. We, too, are consumers, both individually and corporately. Would you consider endorsing organizations that engage in unsustainable practices? I believe the unanimous response would be negative. At an individual level, we must all be cognizant of ESG principles to progress on this path. From my experience in the manufacturing sector, implementing ESG is more challenging in manufacturing than in services due to the significant role of technology. Without technological support, contributing to ESG can be difficult, regardless of the resources committed. In contrast, the service industry, with the correct measures, can implement ESG initiatives with greater probability and ease.
As a supply chain professional, sustainability is a subject close to my heart. Today, there can be no discussion of supply chain without reference to sustainability. Embracing the 3Ps of sustainability – Planet, People, and Profit – is essential for organizational success. There can be no trade-offs. Climate change is for real and the impact of GHG emissions cannot be ignored. By integrating ESG considerations into risk management, organizations can identify and address potential threats, build resilience, and create long-term value for shareholders, customers, and communities. Organizations have to assess the potential impacts of climate change (e.g., extreme weather events, scarcity of resources, etc.) on operations, supply chain, and assets in order to develop effective adaptation and mitigation strategies.
Sustainable supply chains enhance corporate reputation and consumer trust by demonstrating a commitment to ethical practices, including human rights and traceability. Initiatives like the Better Cotton Initiative promote sustainable cotton production while supporting farmers’ rights, appealing to eco-conscious consumers. Addressing issues like conflict minerals also ensures responsible sourcing, fostering trust. Corporates can leverage this impact by promoting their sustainability initiatives through marketing and social media, sharing success stories such as Trustea, which focuses on sustainable tea sourcing. Transparency in reporting sustainability metrics builds consumer confidence, while third-party certifications enhance credibility. By positioning sustainability as a core value, companies can differentiate themselves in the market and attract a growing base of socially and environmentally conscious customers and investors focused on ESG criteria.
Veeshwass Kulkarni, General Manager, Legrand India
Ashwin Kak, Sustainability Consultant and Start-up Advisor
Nitin Varkey, VP – Strategic Projects, Organization Excellence and Innovations, Blue Dart Express
Sandeep Chatterjee, Supply Chain and Sustainability Leader, IBM Consulting
Weighing the costs and benefits of sustainability activities, particularly in terms of reducing Scope 3 emissions, we need a strategic approach that considers both current trade-offs and long-term gains. While sustainability activities are typically seen as costly, they can yield significant long-term benefits, ranging from financial savings, risk management, and increased brand value to regulatory compliance and customer loyalty. Authorities globally are increasing restrictions on emissions, waste management, and sustainable operations. By taking proactive steps to address sustainability now, businesses can prevent incurring future expenses or fines related to more stringent regulations. At times, early implementation may make companies eligible for tax deductions or perks.
For organizations just starting off on their journey, they need to get their scope 3 materiality baselining correct – it could be a mix of actual emissions and scientific assumptions-based working – depending on how mature the supply-chain is already in terms of their own emission mapping – many guidelines and frameworks exist to help an organization get kick-started on their journey. The second point has to be a digital ecosystem which binds and integrates all of this vast information together into analyzable and actionable bits of information. The third, and the final one, has to be putting a roadmap in place for addressing these emissions thenceforth. The first two are almost like the base foundation, while point three is where we end up spending more time with our problem-solving hats.
Supply chain excellence is vital for maintaining competitive advantage and achieving customer satisfaction. It enhances efficiency, productivity, and reduces errors. Achieving this requires leadership commitment, a culture of “Right First Time,” with a robust planning and execution mindset. Companies should focus on continuous improvement, adopt new technologies, and foster strong stakeholder relationships. Achieving supply chain excellence requires a holistic approach that encompasses collaboration, technology adoption, continuous improvement, talent development, performance measurement, and sustainability. By focusing on these areas, companies can optimize their supply chain operations, enhance customer satisfaction, and gain a competitive advantage in the marketplace.
To drive real improvement, ESG data and metrics should be embedded into core operations, processes, functions, and workflows. Such integration is key to weaving sustainability into day-to-day tasks and activities. The role of the CSO becomes paramount here in driving this integration. ESG leaders are far more likely to have ESG metrics incorporated into their innovation and digital transformation efforts and integrated into finance functions. Across all organizations, the integration of ESG metrics into core functions is limited, mostly focused on risk management (44%), brand strategy (40%), and customer service/engagement (39%). Only 20% are integrating ESG metrics into supply chain operations; 26% into procurement and sourcing; and just 11% into real estate and facilities management. This offers a window into huge, missed opportunities. Companies pursuing value-driven sustainability must look for change opportunities that will create a ripple effect. Their view should cut across traditional functional silos and processes—unlocking opportunities for rapid improvement at scale.
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