Demystifying Sustainability Measurement: A Look at Frameworks Popular in India, with Data-Driven Insights

In today's environmentally conscious world, businesses in India are facing a growing imperative: measuring their sustainability performance. This goes beyond just environmental impact, encompassing a holistic approach that considers social and governance factors (ESG) as well. To navigate this complex landscape, several frameworks offer guidance and structure. Let's delve into the most commonly used frameworks in India, with data and examples of leading organizations leveraging them.

Global Reporting Initiative (GRI): The GRI reigns supreme as the most widely adopted global framework, boasting over 10,000 reporting organizations worldwide. It provides a comprehensive set of standards for organizations to report on their Environmental, Social, and Governance (ESG) impacts. Companies like Mahindra & Mahindra effectively utilize GRI to disclose their sustainability efforts, from water management (reducing water usage by 27% in five years) to community engagement (impacting over 5 million lives through social initiatives).

Business Responsibility Index (BRI): Developed by the Confederation of Indian Industry (CII), the BRI holds a special place in the Indian context. A 2021 survey by Deloitte revealed that 75% of Indian companies now report on their sustainability and ESG performance, with many utilizing the BRI framework. The BRI assesses and benchmarks sustainability performance based on a set of industry-specific indicators. This targeted approach allows leading Indian companies like Tata Group and Reliance Industries to identify areas for improvement within their sectors. For example, Tata Steel, a BRI user, reduced its CO2 emissions intensity by 25% between 2010 and 2020 .

Sustainability Excellence Model (SEM): Authored by the Centre for Science and Environment (CSE), the SEM offers a robust framework for Indian businesses, with a focus on environmental and social impact. Companies like Godrej Industries and Infosys rely on the SEM's rigorous assessment process, which goes beyond simple reporting to identify areas for concrete action. For instance, Godrej Consumer Products, a SEM user, achieved zero waste to landfill status across 12 manufacturing sites in India by 2020.

Beyond Frameworks: The Power of SDGs

While frameworks provide valuable structure, India's commitment to the UN Sustainable Development Goals (SDGs) adds another dimension to sustainability measurement. The 17 SDGs encompass a broad range of social, environmental, and economic goals, providing a common language for businesses to align their strategies. According to a 2023 report by the World Business Council for Sustainable Development (WBCSD), 70% of large companies globally are now setting goals aligned with the SDGs. ITC, a leading Indian conglomerate, is a prime example, integrating the SDGs into their core business operations, such as promoting sustainable agriculture practices that benefit local farmers. ITC also reports their progress on each aligned SDG transparently in their annual sustainability report.

The Sustainability Reporting Gap

However, despite the increasing importance of sustainability measurement, a significant gap remains between awareness and action. A 2022 CRISIL study revealed that only around 20% of the 586 Indian companies surveyed publish sustainability reports . This highlights the need for further education and incentives to encourage wider adoption of sustainability reporting practices and we at Social Bay consulting helps orgnaisation for the same through our experts consultants. (www.socialbay.co.in)

Choosing the Right Fit

The ideal framework depends on an organization's specific needs and industry. For a multinational corporation like Mahindra & Mahindra, GRI's global recognition might be essential for international stakeholder engagement. On the other hand, a domestic company like Tata Steel could benefit from the BRI's focus on Indian industry benchmarks. Additionally, aligning with the SDGs allows businesses to contribute to a larger global movement, like ITC's commitment to sustainable agriculture.

In conclusion, measuring sustainability in India is a multifaceted endeavor. By understanding the strengths of various frameworks like GRI, BRI, and SEM, alongside the UN SDGs, organizations can choose the approach that best empowers them to track progress, identify areas for improvement, and ultimately contribute to a more sustainable future. This data-driven approach, with real-world examples of leading companies' achievements, showcases the tangible impact businesses can have through effective sustainability measurement and action.