In the emerging sustainability landscape in India, there is widespread consumer demand for sustainable products. Governments and regulatory bodies are implementing stricter regulations related to environmental protection, labour standards, and responsible sourcing. Investors expect companies to demonstrate sustainable practices, manage risks effectively, and create long-term value to protect their investments and align with their own sustainability objectives.
Further, the COVID-19 pandemic exposed vulnerabilities in global supply chains, emphasising the importance of building resilient and sustainable supply networks. As a result, organisations are looking to embed sustainability into their core strategy and business operations. Businesses are increasingly seeking suppliers that can manage environmental, social and governance risks effectively.
The SEBI mandated Business Responsibility and Sustainability Reporting (BRSR) for the top 1000 listed companies in India furthers the case for a resilient and ESG compliant supply chain for corporates. Micro, Small, and Medium Enterprises (MSMEs) form a large part of these value chains accounting for around 30% of India’s GDP and contributing approximately 48% to the country’s total exports (Source: Ministry of Micro, Small and Medium Enterprises).
Additionally, MSMEs are assessed on various ESG risks such as inadequate waste disposal practices, impact on production due to climate change, non-compliance with labour laws, lack of health and safety measures, human rights violations, irresponsible sourcing of raw materials and unethical practices.
To thrive in the evolving landscape, they must proactively manage these risks and capitalise on the growing demand for responsible and ethical business practices.
Read more about the ESG integrations among MSMEs in India, here:
Embracing ESG Integration: Sustainability for MSMEs in India
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Sattva has been working with various non-profits and social organisations as well as corporate clients to help them define their social impact goals. Our focus is to solve critical problems and find scalable solutions. We assist organisations in formulating their long-term social impact strategy by strategically aligning with business to provide meaningful solutions to social issues.
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