Six emerging issues of ESG management in India

As natural resources are depleted, sustainability becomes essential throughout the entire process of purchasing, developing, manufacturing, distributing, using and disposing of products. Therefore, it is necessary to move away from a linear economy that consumes and disposes of resources after one-time use to a circular economy that empowers efficient use of resources by expanding the reuse of materials and recycling

ESG and sustainability management in India will not be very easy. From its conception to its implementation, ESG is a very complex subject. Whatever companies are able to do is because of the environment and society. Undoubtedly the environment is getting unbalanced due to excessive human interventions. On the other hand, consumers are rapidly changing their ideologies, but society at large is not progressing with that much speed. Through this article, I am presenting a list of some priority topics of ESG and sustainability management from an Indian perspective. Along with developing a deep understanding of these topics for companies, there will be a need for competent human resources and the use of technology to solve these complex topics.

Climate actions

Societies across the globe are cautioned that climate change is expected to deteriorate biodiversity, human health and food systems. Some regions are even warned that they may face unpredictable levels of crisis. Such a crisis will have a significant impact on companies' activities and that global response is needed.

Circular economy

As natural resources are depleted, sustainability becomes essential throughout the entire process of purchasing, developing, manufacturing, distributing, using and disposing of products. Therefore, it is necessary to move away from a linear economy that consumes and disposes of resources after one-time use to a circular economy that empowers efficient use of resources by expanding the reuse of materials and recycling.

Labor & human rights

Affairs related to Human Rights are growing everywhere. The protection, respect and remedy of human rights are essential to the sustainable development of a global society. Companies must comply with India's constitutional provisions and international human rights guidelines and national laws throughout their management activities, establish relevant policies, and regularly assess the status of policy compliance and improvement activities.

Privacy & cybersecurity

The damage and threats from various types of cyber-attacks have increased in recent years. Undoubtedly cybersecurity and privacy have become important to businesses. Cybersecurity should be considered in the entire process from product development to production. Moreover, a user's personal information must be thoroughly protected regardless of the purpose and method of use in various products and services to prevent the misuse of personal information.

Corporate governance

For transparent and responsible management, the Board of Directors needs to make decisions. The decisions on matters stipulated by-laws or articles of incorporation, delegated matters from the general shareholders' meetings, and important matters related to the company's basic policy and business practice. These will be helping and supervising the executives' decisions.

Compliance

In India, which is a democratic nation, Compliance with laws and regulations is one of the most basic principles of business activities. In the case of global companies, compliance must be thoroughly followed to conduct business following the global norms and laws of each country where the business operates.

(Rusen Kumar is the founder and managing editor of India CSR – indiacsr.in)