Green Dilemma

As the world is moving towards sustainable development, corporates are expected to take the lead in achieving sustainability goals. Sustainability has become an important issue for corporates in India as they recognize the impact of their operations on the environment and society. Many corporates are adopting sustainability policies and practices, such as reducing their carbon footprint, implementing sustainable supply chain management, and promoting social responsibility initiatives. The government has also implemented policies and regulations to promote sustainable development, such as the Corporate Social Responsibility (CSR) mandate, which requires corporates to spend a portion of their profits on social and environmental initiatives. The mandatory BRSR reporting for top listed companies in India to disclose information related to their environmental, social, and governance (ESG) performance. While there is still a long way to go, the efforts of corporates in India towards sustainability are a positive step towards creating a more equitable and sustainable future. However, with the inherent limitations in governance, green washing of green wishing are a big challenge to a truly sustainable corporate India. In this article, we will discuss challenges and their impact on sustainable development in India.

Inherent limitations in governance is one of the major challenges to sustainable development in India. The complex governance structure with multiple layers of bureaucracy and regulations often leads to a lack of accountability and transparency in decision-making making it difficult to implement sustainable development policies and initiatives. In addition, the regulatory framework in India is often fragmented and lacks coherence. This makes it difficult for corporates to comply with regulations and implement sustainable development policies. Furthermore, there is often a lack of coordination between different regulatory bodies, which results in conflicting policies and guidelines.

Green washing refers to the practice of making false or exaggerated claims about the environmental benefits of a product or service. This is done to attract environmentally conscious consumers and to improve the company's image as a socially responsible entity. Green washing is a major challenge to sustainable development as it misleads consumers and undermines efforts to promote genuine sustainability. In India, green washing is rampant in the consumer goods sector, especially in the fast-moving consumer goods (FMCG) industry. Many companies make false claims about the environmental benefits of their products, such as being biodegradable or eco-friendly, without any scientific evidence to back up their claims. Shelfs in supermarkets and listings on e-com websites are loaded with products claiming to be "organic" without providing any evidence to support the claim. This practice misleads consumers into believing they are making environmentally conscious choices, when in fact they are not.

It is important for consumers to be aware of green washing tactics and to do their own research to verify claims made by companies. Certification by recognized organizations, such the Agricultural and Processed Food Products Export Development Authority’s (APEDA) National Program for Organic Production (NPOP), USDA’s NOP or Ecocert provide consumers with confidence that the product indeed meets certain organic criteria.

The recycle logo, which features three arrows chasing each other in a triangular shape is an international symbol used to indicate that a product or packaging material is recyclable or made from recycled materials. In India where there is a lack of awareness, the misuse of this logo is another concern. Many companies in India misuse the logo, either by using it on products that are not recyclable or by making false claims about the recycled content of their products. This is a form of greenwashing that deceives consumers into believing that the products they are buying are more environmentally friendly than they actually are. This not only undermines efforts to promote genuine sustainability but also has negative consequences for the recycling industry. When non-recyclable materials are labeled with the recycle logo, they can contaminate the recycling stream and reduce the efficiency of recycling facilities.

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More often than not the problem of green wishing in India gets attributed to small and medium-sized enterprises (SMEs) who view sustainable development as a cost rather than an opportunity to improve their business operations. Although SMEs face significant challenges in terms of limited resources and awareness when it comes to avoiding green wishing, larger corporations are equally or even more guilty of engaging in this practice.

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Many large corporates engage in green wishing to improve their image without actually addressing their environmental and social impact. On large beverage multinational announced that it would invest $5 billion in the India over the next five years, with a focus on sustainable development initiatives. However, a closer examination of the announcement revealed that much of the investment was allocated towards expanding the production capacity and marketing efforts instead of genuine sustainability initiatives.?In another case one of the largest conglomerates in the country. Announced in 2019 that it would become a net-zero carbon company by 2035, a commitment that was widely publicized in the media. However, the conglomerate failed to provide details on how it planned to achieve this goal or what measures it would take to reduce its carbon footprint. In yet another case a major engineering and construction company announced in 2020 that it would become carbon-neutral by 2021, a claim that was bound to be met with skepticism by environmental experts who pointed out that the company had a poor environmental track record, particularly in relation to its construction projects and could not provide any details on how it planned to achieve carbon neutrality.

The challenges of green washing and green wishing have a significant impact on sustainable development in India. Green washing misleads consumers and undermines efforts to promote genuine sustainability. This can lead to a loss of trust in corporate sustainability initiatives and a reluctance to support sustainable products and services. Green wishing, on the other hand, results in a lack of genuine commitment to sustainable development. This can result in a failure to implement sustainable development policies and initiatives, which in turn can have a negative impact on the environment and society.

?Furthermore, the challenges of green washing and green wishing create a lack of accountability and transparency in the corporate sector. This makes it difficult to measure the impact of corporate sustainability initiatives and to hold companies accountable for their environmental and social performance. All stakeholders need to make ?concerted efforts to address the challenges of green washing and green wishing. Everyone, including the government, corporates, civil society organizations and consumers have a role to play. The government can play a crucial role in promoting sustainable development by implementing strong regulatory frameworks and policies that promote transparency and accountability. The government can also provide incentives and support to corporates to adopt sustainable development practices. Corporates, on the other hand, need to adopt a genuine commitment to sustainable development by integrating sustainability into their business strategies and operations. This can be done by setting clear sustainability goals, implementing sustainability policies and initiatives, and reporting on their environmental and social performance. Civil society organizations and consumers can play a crucial role in promoting sustainable development by raising awareness and demanding accountability from corporates and the Government. This can be done through consumer activism, advocacy, and public pressure.

While the efforts of corporates as well as the Government in India towards sustainability are a positive step, limitations in governance, green washing, and green wishing pose a significant challenge ?towards creating a more equitable and sustainable future. It is important for corporates to adopt genuine sustainability policies and practices and for consumers to be aware of green washing tactics and do their own research to verify claims made by companies. Certification by recognized organizations and the proper use of logos can help build confidence in sustainable products and services. Moreover, there is a need for greater accountability and transparency in the corporate sector to measure the impact of sustainability initiatives and for civil society to hold companies accountable. The path to sustainable development in India is a long and challenging one, but by working together, corporates, consumers, and regulators can create a more sustainable future for all. It is time for all stakeholders to take concrete actions towards achieving a sustainable and equitable future! As we move forward, let us strive to uphold invaluable virtues of sustainability that are embedded in our ancient culture that focus on protecting our environment for the sake of our own well-being and that of future generations. As the Sanskrit saying goes, 'Vasudhaiva Kutumbakam' - the world is one family, and it is our collective responsibility to ensure its preservation and prosperity!