Harsh Mariwala, Chairman of Marico, and Kaya, says that sustainability is increasingly seen as a core value in business, not just a passing trend. He highlights that sustainability is a way of life that connects all stakeholders—beyond shareholders—to the business. Society, in particular, plays a crucial role as a stakeholder. There is a close connection between society and sustainability, he notes, emphasising that businesses are accountable not just to investors, but to the communities they operate in. Moreover, sustainability has become a global issue, with rising pressures on organisations to meet higher environmental and social standards.
Sustainability and Costs
There is a common belief that sustainability initiatives are expensive and may not deliver immediate financial returns. However, Mariwala offers a different perspective. While the financial paybacks may sometimes be modest, he stresses that the broader impact is significant. The improvements in brand equity, the ability to attract new shareholders, and the positive image with customers and stakeholders can be far more valuable, he says. These intangible benefits, although harder to measure, contribute to long-term business growth and reputation.
Sustainability Trends
Looking toward the future, Mariwala anticipates several key sustainability trends. First, he expects tighter regulations around transparency, particularly in environmental, social, and governance (ESG) disclosures. Stakeholders will demand more clarity, and regulatory bodies will likely introduce more comprehensive and verifiable ESG reporting, he explains. This will help businesses ensure accountability and build trust. Additionally, as climate impacts intensify, both the public and private sectors are expected to ramp up investment in adaptive measures such as climate-resilient infrastructure and advanced water management. Finally, he foresees a rise in ESG-focused investments, driven by both government incentives and growing investor interest in sustainability.
Union Budget 2025?
Mariwala believes that the 2025 Union Budget could play a key role in accelerating sustainability adoption across industries. He suggests that the government introduce tax benefits to support green manufacturing, making it easier for companies to invest in environmentally friendly production methods. He also advocates for incentives to promote the circular economy, particularly by encouraging recycling and waste management initiatives. Accelerated depreciation benefits for investments in renewable energy—like solar and wind—could be a strong incentive for businesses to reduce their carbon footprint, he adds. Additionally, Mariwala calls for a robust carbon trading mechanism to reward companies actively working to decrease emissions.
Lastly, he stresses the need for policies that specifically support small and medium-sized enterprises (SMEs). These companies are struggling to implement sustainability initiatives, he explains, suggesting that a targeted scheme could help them adopt eco-friendly practices, levelling the playing field between large corporations and smaller businesses.
