The rising awareness around environmental, social, and governance (ESG) factors has transformed how corporations engage with their stakeholders. Over the past decade, the integration of sustainability practices has shifted from a voluntary initiative to a key driver of business success. At the heart of this transition is the increased demand for businesses to align their strategies with global sustainability goals, which influence their operational efficiency and social and environmental footprints and mitigate business risks in an increasingly volatile marketplace.

Corporate Social Responsibility (CSR) in India has seen a remarkable evolution. In 2014, India became the first country to mandate CSR spending, thereby setting a global precedent. Though designed to address social issues, this regulatory framework has inadvertently brought environmental sustainability into sharper focus. 

CSR investments have increasingly focused on creating systemic solutions that support communities and contribute to social well-being while also enhancing a company's social license to operate. The convergence of CSR and ESG has prompted businesses to rethink how they engage with environmental challenges, with companies now actively working towards decarbonisation, better resource management, and the integration of green technologies while building social equity. 

For businesses to effectively integrate sustainability and ESG, it’s essential to reframe their approach. What was once considered an isolated function is now seen as a strategic imperative. The shift from shareholder-focused thinking to a more inclusive, stakeholder-driven model is the key to this transformation. This shift recognises that businesses are not just responsible for profit generation but also for the impact they have on people, the environment, and the planet.

Sustainability as a Business Strategy

One of the most crucial aspects of the sustainability journey is the understanding of double materiality—the idea that both the impact of business on the environment and the risks posed by changes in environmental conditions to business must be considered equally. This approach ties ESG initiatives directly to long-term business success. 

Corporations are now tasked with managing a wide array of risks, from operational disruptions caused by environmental factors to the reputational risks of failing to comply with evolving regulations. Once a peripheral activity, sustainability is now central to ensuring business continuity and growth.

An increasing number of corporations are aligning their sustainability efforts with their core business goals. As sustainability becomes more integrated into business strategies, it is no longer just about reducing emissions or waste; it is about leveraging all the key factors attributing to ESG to create value. 

For example, companies like Tata Group and Infosys have set ambitious decarbonisation targets, investing in renewable energy sources and making their operations more energy-efficient. In fact, a McKinsey report reveals that businesses prioritising sustainability are more likely to outperform competitors by up to 2x in terms of financial returns.

The Role of CSR and ESG Compliance

India’s introduction of the Business Responsibility and Sustainability Report (BRSR) has added a new layer of transparency to corporate governance. By mandating ESG disclosures, India is pushing companies towards greater accountability. The BRSR, which integrates environmental, social, and governance performance measures into corporate reporting, is shaping corporate transparency. It aims to provide a standard for organisations to disclose their sustainability actions and commitments, making it easier for stakeholders to assess the corporate sustainability narrative.

For organisations, aligning ESG strategies with business goals requires clear communication, data-driven decision-making, and transparent reporting. This is where sustainability reporting plays an essential role. Companies can build trust and foster long-term relationships by providing accurate, actionable information to stakeholders. Effective reporting helps businesses to build greater confidence in their stakeholders and market. In streamlining and setting up systems, the businesses understand the underlying risks they can manage efficiently.

As businesses increasingly adopt sustainability frameworks, understanding the broader landscape of ESG and CSR initiatives becomes crucial. To explore this transformation and the role of sustainability in business, CXO Techbot spoke with Shrutee Ganguly, Director at Turner & Townsend, a seasoned professional with over two decades of diverse experience in the corporate and impact sectors. Known for her strong focus on value enablement, Shrutee has consistently driven success through collective efforts, shared value objectives, and sustainable solutions. Her passion for creating sustained positive impact and fostering social equity reflects her commitment to bridging the gap between where we are and where we want to be as a generation. Her journey through diverse sectors and insights into the evolving role of sustainability in India offer valuable perspectives on integrating ESG into core business strategies, ensuring future-ready and socially responsible enterprises.

Good morning, Shrutee. Your career spans various roles in business transformation and sustainability. What inspired you to pursue a career in sustainability and ESG, and how has your journey evolved over the years?

Good morning. Thank you for having me. My journey began a little over two decades back in the field of business transformation. Initially, I worked on quality assurance, process excellence and business transformation. Over time, I worked in the space of social impact consulting, where I got to work with businesses to build their CSR and ESG strategies. This journey allowed me to understand the risks businesses face and their role in shaping a sustainable future for the planet. My experience in business transformation, particularly in understanding how business operations impact the environment and the social fabric of any society, led me to see sustainability as a strategic lever for business growth.

India was the first country to mandate CSR spending in 2014. How do you see this regulation influencing corporate sustainability initiatives today?

The CSR regulation in India has had a significant impact on the way businesses look at corporate responsibility. It has formally placed the responsibility on businesses to contribute to social and environmental issues, promoting a sense of accountability. Over time, CSR has evolved from a mere compliance activity to a strategic initiative. The regulation has encouraged organisations to think beyond their business goals and focus on societal needs. It has also created opportunities for businesses to engage with local communities, thereby enhancing their reputation and building stronger relationships with stakeholders. As CSR responsibilities are getting clearer, businesses are grappling to understand their role in integrating sustainability through business for their other stakeholders, outside communities and society. In the next few years, the business will perhaps see a complementing strategy on CSR and ESG that will manage risks and stakeholder expectations alike. 

The journey toward sustainability has been fragmented over the years. What changes do you see now in how sustainability is integrated into business strategies?

The shift towards integrating sustainability into business strategies has been slow but significant. Initially, businesses focused on compliance and environmental issues in isolation. Now, we are seeing a holistic approach where sustainability is embedded into the core of business strategies. There’s a stronger recognition that sustainability is not just an environmental concern but an integral part of long-term business success. This shift to double materiality—where businesses consider both their impact on the environment and the risks the environment poses to their operations—is a crucial development. Sustainability initiatives are being immersed into every function and, therefore, lying to the core priorities of the business. Because of the complexity of business functions, the implementation is not easy, but there are some positive strides in that direction. 

With businesses increasingly converging CSR and ESG themes, how can organisations create a strong impact narrative while ensuring compliance?

For businesses to create a strong ESG narrative, it’s important that they understand both their stakeholders’ expectations, the regulatory landscape and the global drift in this area; CSR falls under the broader ESG umbrella and must be aligned with the business's strategic goals. ESG and CSR should no longer be seen as separate functions but as part of the overall business strategy. For companies, ensuring that they have a clear vision, set priorities, and align initiatives with those priorities will help build a seamless narrative for all their stakeholders – communities and others. When businesses are transparent about their sustainability efforts and focus on long-term value creation, they can establish a compelling and compliant ESG narrative. They can use CSR funds to solve some of the fundamental social and environmental challenges that can indirectly impact their business or its operational environment. 

What role does sustainability reporting play in enhancing stakeholder confidence and building a competitive advantage for businesses?

Sustainability reporting is crucial because it provides transparency and accountability. Stakeholders—investors, customers, or employees—want to understand how a business is performing financially and in terms of its environmental and social impact. They are keen to know what challenges can disrupt business and how they are being handled.  Well-done reporting can help businesses build trust with stakeholders and differentiate themselves from competitors. A business must report with integrity, sharing both successes and challenges while being transparent about its progress toward its sustainability goals. However, it's essential that in the process of communicating truthfully, one must avoid greenwashing.

Given the rising importance of ESG metrics, what challenges do organisations face in aligning their strategies with investor and regulator expectations?

One of the biggest challenges businesses face in aligning ESG strategies with investor and regulatory expectations is the variation in priorities across different industries and regions. There is no one-size-fits-all approach to sustainability, and each business must address its specific risks and opportunities. Furthermore, the regulatory landscape is continuously evolving, making it difficult for companies to stay ahead. Companies need to be agile and proactive in addressing these changes while ensuring that they meet the expectations of their investors and regulators. ESG integration needs investment to assess and evaluate solutions and support innovation. The impact of these changes takes time; therefore, the business needs to have an appetite for risk and patience to see results. 

How do you see India’s Business Responsibility and Sustainability Report (BRSR) framework shaping corporate transparency and accountability?

The introduction of the BRSR framework in India is a significant step toward standardising sustainability reporting. It provides clear guidelines for companies to follow and ensures that they disclose relevant ESG data in a consistent and transparent manner. By making these disclosures publicly available, businesses are being held accountable for their actions. Over time, this will create a culture of transparency and trust in the market, allowing fairer benchmarking across organisations. The BRSR framework also helps to align Indian companies with global reporting standards, which is essential as the world moves toward a more sustainable and responsible future.

You’ve worked across diverse domains like healthcare, education, and gender equity. How has this multifaceted experience contributed to your understanding of sustainability?

Working across various domains has given me a holistic understanding of sustainability. It’s not just about the environment but also about people and business. The way health of our people and the skill of the staff can decide the future course of business growth similarly, the basic necessity of clean air and water will decide the stability of the people working in the organisation. One has to look at sustainability as a comprehensive framework where all the stakeholders and their needs are taken care of without letting go of business goals. My diverse experience has helped me see the interconnectedness of various factors and how addressing these collectively can lead to lasting change.

What innovative solutions or strategies have you implemented to help organisations transition towards a sustainable and green economy?

Innovation in sustainability doesn’t always mean developing entirely new solutions; it’s often about optimising existing processes, identifying sources of hi-carbon materials and building efficiency to achieve long-term results. My work with businesses has focused on using technology to enable better decision-making, optimising supply chains, and reducing emissions. For example, we’ve implemented systems to track carbon footprints, helping companies identify areas for improvement and make data-driven decisions for their built environment. We’ve also worked with businesses to redesign their operations using low-carbon solutions, thereby reducing their environmental impact and making them more resilient to climate risks.

With CFOs increasingly critical in ESG integration, what synergies do you see between financial management and sustainability practices?

The role of CFOs in integrating ESG is crucial. Financial management and sustainability must be aligned for long-term business success. CFOs play an essential role in allocating resources and ensuring that investments in sustainability are effectively utilised. They are also responsible for reporting on the financial implications of sustainability initiatives, such as the return on investment in green technologies. By working closely with other departments, CFOs can ensure that sustainability is not seen as a separate function but as an integral part of the business strategy.

Finally, what advice would you give to professionals and organisations aiming to integrate sustainability into their core operations and drive meaningful change?

I recommend approaching sustainability with a long-term perspective. It’s not just about short-term gains but about creating lasting value for the business, the community, and the environment. Every decision, whether it’s about product development, people, or processes, must be evaluated through a sustainability lens. It’s important to prioritise and focus on the most critical areas for improvement and then integrate sustainability into the core functions of the business. By doing so, businesses can reduce their environmental impact, improve their bottom line, and create a competitive advantage for the future.