Why Green leadership is essential for today’s business?

Company ko profitable banana hai par green leadership, yeh kya hota hai?

Green Leadership is a commitment to make decisions that benefit not only the revenue of organizations but also the planet and society at large. It refers to a leadership style that supports sustainability and environmental stewardship.

Then, Green Leaders kya karte hai? What they do?

Green Leaders promote environmental awareness, incorporate eco-friendly practices, and seek to minimize the ecological imprint of their organizations, while also supporting social equity and long-term well being.

Environment and society protect karne ke liye Government kuch kyu nhi krti hai?

Government are doing various things to protect our environment as, in the Companies Act, 2013, Factories Act, 1948, Corporate Social Responsibility (CSR), Environment Protection Act, 1986, Waste (Management, Handling & Transboundary Movement) Rules, 2016 and many more such laws along with governing bodies to ensure the implementation and adhereance of these laws.?

But, Hume kaise pata chalega if we are following the green leadership in a correct way?

Global Reporting Initiatives (GRI) - a global framework and Business Responsibility and Sustainability Reporting (BRSR) - an Indian framework are indicators of Green Leadership which help us to measure it and provide direction. It also helps to divide essential and core leadership indicators.

GRI (Global Reporting Initiative) is the independent and international statutory organization that assists business entities and other organizations to take responsibility for their impacts, by giving them the global common language and framework to communicate those impacts.

Whereas, Business Responsibility and Sustainability Reporting (BRSR) is an Indian reporting framework to meet ESG and sustainability communication requirements. The applicability of BRSR Core expands gradually over financial years, starting with the top 150 listed entities by market capitalization in 2023-24, the top 250 in 2024-25, the top 500 in 2025-26, and finally the top 1000 in 2026-27.

But what is the outcome of this leadership?

It is a path to sustainable growth.

In today’s rapidly changing and evolving world, green leadership is no longer an alternative option but a necessity. Companies and leaders who embrace sustainability are not only protecting the environment but are also unlocking great social and economic benefits which helps them to grow. Green Leadership focuses on betterment of the environment, it cares about society, and economic factors. Green leadership can drive innovation, upgrades, evolution, also builds up the brand’s goodwill, and encourages long-term growth.

Environmental Benefits?

According to the upper echelon hypothesis, eco-friendly resources are necessary to maintain organizational effectiveness. In this study, sustainable leadership was employed as a core resource because it is suitable for the environment. Leaders devoted to sustainability have sustainable perspectives, acknowledge sustainability concerns, promote green initiatives, and adopt green management practices. Environmental leadership or green leadership has a favorable correlation with green activities, such as green innovation, among workers. Tesla is a well known example, as a leader in the Electric Vehicle (EV) industry. Tesla has not only minimised the dependency on fossil fuels by promoting EVs but also invested heavily in renewable energy solutions through its solar energy division and energy storage products. The company is committed to sustainability and helps to reduce carbon emissions related to transportation (Ref: https://www.tesla.com/ ).

GRI Indicators:

• 301-1 Materials: Reveal the perspective to sustainable material sourcing, which considers recycled content, renewable materials, and responsible sourcing certifications.
• 302-1 Energy: Describe the energy consumption, taking charge for the efficiency, and utilization of renewable energy sources.
• 303-1 Water: Disclose the water withdrawal, consumption, and efforts to decrease water usage and protect water resources.
• 305-1 Emissions: Give an opinion and conclusion on greenhouse gas emissions, which contains Scope 1, 2, and 3 emissions, and your strategies for decreasing your carbon footprint.
• 306-1 Effluents and Waste: Reveal the best ways to manage the waste, by giving consideration to waste reduction, recycling, and responsible disposal.

BRSR Indicators:

• Principle 6: Businesses must respect, take care, and make efforts to protect and restore the environment. This principle enhances companies to take the suitable actions to implement environmental management systems, minimize pollution, and conserve/ save biodiversity.

Social Benefits

Do you know what are the social benefits of following the Green leadership and how does it help the organisations? Let’s Decode it by taking some relevant examples…

Green leadership uplifts community well-being by supporting ethical labour practices and ensuring product sustainability. For instance, let us take an example of Patagonia, which supports workers' rights, encourages environmental activism, and promotes fair trade practices. Their commitment to social responsibility reverberates with rational consumers and follows loyalty (Ref: https://www.patagonia.com/home/ ).?

GRI Indicators:

• 401-1 Employment: Disclose your opinion on employee training and development, diversity and inclusion, and labor rights.
• 403-1 Occupational Health and Safety: Report on your workplace health and safety performance, by considering injury rates and actions to prevent accidents and promote well-being.
• 413-1 Local Communities: Describe the connections and collaborations with local communities, which considers community investment programs and action of addressing social and economic challenges and problems.

BRSR Indicators:

• Principle 3: Businesses should enhance the well-being of all employees. This principle encourages companies to come with fair and standardized wages, safe working place, friendly environment and opportunities for growth and development.
• Principle 4: Business organizations should respect the interests of, and be open to give suggestions towards all the stakeholders, especially those who are disadvantaged, vulnerable and marginalized. This principle promotes considerability and stakeholder engagement.??
• Principle 5: Businesses should respect and promote human rights. This principle encourages companies to validate human rights for their whole operations and supply chain.

Economic Benefits

Green practices may lead to cost savings through energy efficiency, waste minimization, and better supply chain management. Green leadership also suggests working ethically and adhering to corporate governance. Walmart sets the goal of reaching zero waste, and sourcing products sustainably helps to conserve the company's billions while making the most of the planet. Maintainable innovation can also help to open new markets and opportunities for growth (Ref: https://www.walmart.com/ ).

GRI Indicators:

• 102-16 Values, Principles, Standards, and Norms of Behavior: Disclose the company's code of conduct and ethical guidelines.
• 103-1 Management Approach: Explanation of the material topic and its Limits; 103-2 Management Approach: The management perspective and its components; 103-3 Management Perspective: Evaluation of the management approach: Clarify how you recognize and manage material ESG issues.
• 205-1 Anti-corruption: Disclose your anti-corruption policies and processes.

BRSR Indicators:

• Principle 1: Businesses should manage and govern themselves with Ethics, Transparency and Accountability. This principle enhances companies to establish strong governance structures, promote ethical decision-making, and ensure accountability.??
• Principle 9: Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner. This principle upgrades transparency and ethical conduct in lobbying and advocacy activities.

A Call to Action

Green leadership is about making strong choices today for a sustainable tomorrow. By merging all the environmental, social, and economic deliberations into their strategies, leaders can create a lasting impression. Whether you are a business leader, policymaker, or entrepreneur, now is the time to adapt green practices and encourage others to follow them.

Adopting the GRI and BRSR framework is an effective way for companies to demonstrate leadership for ESG. There are many other sustainability frameworks are there and one can shoose any of it based on their requirement and suitability.?

Now is the time to include these tools, whether you are just starting or looking to strengthen your sustainability efforts. By doing so, you can drive positive change, create long-term value and position your company as a responsible leader for ESG.

Environmental Leadership (E)

• Key Actions for Green Leaders:
• Set ambitious targets for minimizing the environmental impacts.
• Invest in renewable energy and energy efficiency technologies.
• Take action for economic principles to minimize waste and maximize resource utilization.
• Connect with suppliers to encourage them for sustainable practices for the whole supply chain.

III. Social Leadership (S)

• Key Actions for Green Leaders:
• Promote a culture of diversity, equity, and incorporation.
• Give importance to employee well-being and progress.
• Encourage local communities and contribute to social progress.
• Respect human rights and promote ethical labor practices.

IV. Governance Leadership (G)

• Key Actions for Green Leaders:
• Establish a strong board-level commitment to sustainability.
• Implement robust structures and policies for ESG governance.
• Promote transparency and accountability in all business practices.
• Engage in responsible persuasion and advocacy.

References

Impacts of leadership on corporate social responsibility management in multi-tier supply chains - ScienceDirect

A Critical Analysis of Environmental, Social, and Governance (ESG) in India: A Proposed need for a Codified Law

GRI

GRI - Standards

Environmental Compliance for Companies in India: Key Legislation and ESG Guidelines

5 examples of sustainable leadership