ESG will help companies create sustainable business culture: Experts

Environmental, social, and governance (ESG) will help companies create a sustainable business culture that goes beyond wealth creation, leading executives of companies said on Tuesday.

ESG reporting landscape is rapidly changing at the global level owing to ever-increasing challenges and re-orientation of the corporations, they said.

Speaking at a CII event here, managing director of Linde India Abhijit Banerjee said with increasing challenges arising out of ESG dimensions, business leaders in India see merit to reorient their corporate purpose and extend beyond wealth creation into broader themes that its key stakeholders are concerned with.

Banerjee said in the present world, sustainability is something that investors are demanding, customers are expecting and employees are valuing.

"Leadership has to play a key role in implementing sustainable business culture in an organization. The leadership indicators focus on providing a broader picture of the company's operations in terms of sustainability," he said.

Managing director of Jamshedpur Continuous Annealing & Processing Company Ujjal Chakraborti said ESG factors have gained significant attention from investors, businesses, and society.

"While ESG has traditionally focused on environment and governance issues, the social component has recently garnered recognition. Inclusion of occupational health and safety (OHS) considerations into the ESG framework has been a crucial step for the companies to create sustainable, responsible, and resilient operations that prioritize both the people and the planet," he said.

Rajiv Mangal, VP (of safety, health, and sustainability) of Tata Steel said the OHS and ESG goals are closely related, and integrating them can help companies to create a responsible and sustainable business.