A NATIONAL CAPITAL REGION-based chemical maker with under ₹100 crore in annual turnover approached Sculpt Partners, a sustainability-centric advisory firm, seeking environmental, social, and governance (ESG) assessment. The trigger was a demand from its customer, a large domestic manufacturer supplying rubber to global tyre players like Yokohama and Michelin, which sought to know its decarbonisation road map.
There is no regulation mandating the chemical company-classified in the micro, small, and medium enterprises (MSME) category-to have such a road map in place. The need in this case arose because it is a value chain partner of a multinational company that is required to report the carbon impact of such partners.
This is not an isolated case. Indian MSMEs, primarily in the export business, are being pushed to provide ESG reports from foreign customers as part of the bidding process.
The carbon footprint of MSMEswhich contribute more than 30% to India's GDP and are responsible for nearly 45% of exports-is sizeable at 3-4% of the country's total carbon emissions, according to a report by the NITI Aayog.
"My clients in IT and data analytics are being asked for ESG metrics for bids called by multinationals. The trend I can see is a push-driven one, or if there is a progressive promoter who wants to push for ESG. Growth and overseas diversification are becoming bigger triggers for MSMEs to comply with ESG metrics," Kumar Subramanian, Founding Partner and Managing Director of Sculpt Partners, tells BT.
In this scenario, it is becoming inevitable for value chain partners of listed and export-oriented entities to make the transition. MSMEs in the automotive, leather, and textiles sectors have started generating emission data, sourcing solar energy for operations, measures for water and energy efficiency, and waste management.
Esta historia es de la edición July 21, 2024 de Business Today India.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición July 21, 2024 de Business Today India.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
"Moving to cloud helped us grow❞
What was the problem you were grappling with?
She's Got Time
MORE WOMEN ARE BECOMING WATCH CONNOISSEURS, SEEKING OUT BOTH JEWELLED AND TECHNICAL WATCHES FOR THEIR STYLE AND CRAFTSMANSHIP
RISING STAR
PARUL GULATI IS a name that's been steadily gaining prominence in the Indian entertainment industry after she appeared on season 2 of Shark Tank in 2023. She has become a multifaceted personality who effortlessly transitions between acting and entrepreneurship.
Building on a Legacy
WHEN ZAHABIYA KHORAKIWALA stepped into her role as Managing Director of Wockhardt Hospitals over a decade ago, she confronted formidable challenges that have since turned into achievements.
LEADER IN INNOVATION
AS FEDEX'S PRESIDENT (Middle East, Indian subcontinent and Africa), Kami Viswanathan has a lot on her plate.
WAITING IN THE WINGS
Here are those who missed out as they have not yet completed a year in office; they'll be strong contenders in 2025
A DECENT PROPOSAL
IN TODAY'S WORLD OF TRYING TO CREATE AN EQUITABLE SPACE, BOTH MEN AND WOMEN CONTRIBUTE TO THEIR HOUSEHOLDS. WOMEN ARE ENCOURAGED TO HAVE THEIR OWN SAVINGS POOL AND INVESTMENT ROUTINE. GIVEN THIS, HOW SHOULD FUTURE BRIDES APPROACH FINANCIAL PLANNING?
Women and the STEM Bias
EMPOWERING WOMEN IN STEM WILL NOT ONLY BENEFIT INDIVIDUALS, BUT ALSO STRENGTHEN THE ENTIRE INDUSTRY, DRIVING INNOVATION AND PROGRESS.
ROCKET WOMEN
WOMEN IN INDIA ARE NOT ONLY VENTURING INTO SPACE BUT ARE ALSO STARTING TO SPEARHEAD THE COUNTRY'S EFFORTS IN THE GLOBAL SPACE RACE.
ONE STEP FORWARD
THE NUMBER OF WOMEN INDEPENDENT DIRECTORS IS GROWING STEADILY, BUT IT'S A LONG WAY FROM GENDER PARITY. MUCH MORE NEEDS TO BE DONE TO BREAK THE GLASS CEILING IN BOARDROOMS.
