Working for a Happier Planet

The Brundtland Commission report, 1987 – defined Sustainability as "meeting the needs of the present without compromising the ability of future generations to meet their own needs." The definition provided a new paradigm for businesses to measure their performance going beyond financials to include Sustainability/ESG performance. The transition from Sustainability that could mean anything from "doing well by doing good” to a narrower & focused ESG (Environment Social Governance) is about meeting social responsibility standards & going way beyond ROI (Returns on Investment) considerations. ESG is essentially an approach incorporating Environmental, Social and Governance elements in the business process to create a balanced and Sustainable business organization. The approach not only delivers competitive business advantage but also ensures consistent and stable business performance meeting the current & future global expectations. By developing a business model that addresses ESG factors, one is better positioned to future-proof business with operations, cultural and financial changes in the process.

Adopting the path of ESG has become an imperative for all. As organizations prepare themselves to deal with new kinds of risks hitherto unknown, especially with rising crises in economic, environment, public health & social issues; there is an increased focus on Sustainability and ESG efforts. With the changing business landscape, companies are expected to deliver results that bring a positive impact on the environment and the society along with shareholder returns. Corporations across the globe have additional responsibility as a collective to address issues like global warming, climate change, diversity, inequity etc., and every organization is making their own efforts to address the same. Customer expectations and interactions with brands are also going through major transition, especially with the onset of digital platforms.

Against this background, leaders are committing themselves beyond sheer compliance on ESG aspects to help deliver robust returns. These actions are creating value for the stakeholders – employees, customers, suppliers and wider society. Being integral to business strategy, ESG guides how firms serve society and impact both their current & future performances.

Another dimension that is driving enormous interest in ESG performance is Financial, as it’s playing a larger role in companies’ decisions around M&A and divestment. There is adequate research that shows positive linkages between better ESG scores and financial performance be it equity, profitability or valuation multiples and now even on lower cost of capital due to reduced business risks.

With ESG gaining traction amongst consumers, policymakers, regulators and investors – the smooth transition from a broad rubric of Sustainability to narrower ESG is evident at Welspun India. With a committed leadership driven by innovation and strong research-led consumer focus, the company with a global footprint in home textiles is geared to meet expectations of both socially responsible investors and millennials alike with focus on ESG performance. The commitment to build strong partnerships & align with global practices on ESG is visible with efforts on the three pillars – Environment, Social & Governance. Governance is all about how well the executive having established its Sustainability program over the years, transition to ESG was seamless, and the workforce was also quick to adapt & adopt given its huge traction globally and with key stakeholders.

At Welspun India,

• efforts on Environment were strategic to be it clean energy, transportation, reduced GHG emissions, recycling etc. a steward of natural environment;
• On the Social front – the impetus is on nurturing business relations that drive inclusive growth, women empowerment, safe & healthy work spaces and supporting community livelihood generation;
• Executive management & the Board attend to stakeholders’ interest, honest and transparent accounting besides establishing policies and frameworks that help in robust ESG performances