The Sustainability Imperative
Sustainability is no longer a passing trend; it is an integral part of modern business practices. The key driver behind this shift is the growing interconnectivity among all stakeholders in a business—employees, customers, investors, and society. Harsh Mariwala explains that sustainability is not only about meeting shareholder expectations but also about considering the broader societal impact. We must recognise our role in driving the sustainability agenda proactively, he states. Increasingly, businesses face pressure to adopt sustainable practices, driven by various stakeholders, especially younger employees who prioritize working for organisations aligned with sustainability.
Sustainability and Youth
Sustainability has taken on a new significance for younger generations. In fact, it’s now one of the first questions asked during campus interviews. The youngsters will be impacted much more, Mariwala points out, highlighting how the younger workforce is demanding that their future employers adopt sustainable practices. This growing concern has also resonated at the board level. Mariwala observes that there is pressure from board members because sustainability is gaining traction. This shift is not only about employees but also about foreign institutional investors and consumers, all of whom are increasingly focused on Environmental, Social, and Governance (ESG) standards. Businesses now find themselves under pressure to meet these evolving expectations, especially as consumer demands align with sustainable operations.
Marico Matters
For Marico, sustainability has been a core principle for years. Mariwala shares that the company has long understood that business success isn’t just about profits—it’s about balancing the needs of all stakeholders. We strongly believe that we are there for all the stakeholders, he says. Marico’s approach to sustainability was ahead of its time, as they had already implemented several initiatives long before it became mainstream. A key to successful sustainability efforts, according to Mariwala, is alignment across the organisation: It is important that there is a high degree of alignment amongst all employees, including the board. Marico has assigned passionate, dedicated teams to handle sustainability, ensuring that accountability is clear at all levels.
Tangible Goals
Sustainability should not be a vague commitment; it needs clear, measurable goals. Marico’s strategy involves setting tangible targets that span both yearly and multi-year timelines. Regular tracking and assessment of these goals, especially in quarterly board meetings, ensure that sustainability remains a priority across the organisation. Mariwala believes in setting precise objectives for sustainability and ensuring consistent progress. These goals should be regularly reviewed, he advises, underscoring the importance of continuous effort and adjustment.
Sustainability Costs
A common misconception about sustainability is that it’s an expensive undertaking with no immediate financial return. Some sustainability initiatives do indeed require upfront investments with low short-term paybacks. However, as Mariwala notes, the broader impact of sustainability efforts is often overlooked. The impact on improving the organisation’s equity among all stakeholders, its image on campuses, attracting board members, capital markets, and customers are often not measured by most organisations, he explains. These intangible benefits are just as critical, even though they might not immediately convert into financial returns.
Long-Term Benefits
Sustainability’s long-term benefits far outweigh its initial costs. Mariwala emphasises that if top management, especially company promoters, are firmly committed to sustainability, the financial concerns often resolve themselves. The first hurdle of no financial payback will get addressed,” he assures. Beyond financial returns, sustainable practices enhance a company’s reputation, helping build stronger brand equity, attract top talent, and foster deeper customer engagement. However, many businesses fail to see these invisible advantages. According to Mariwala, sustainability creates value in ways that are not always immediately visible but are crucial for long-term success.
Key Trends in 2025
Several key trends in sustainability are unfolding that will shape the future of business. A major trend is the tightening of disclosure norms. Regulatory bodies are expected to require businesses to offer comprehensive, verifiable ESG disclosures. This move will ensure greater transparency and accountability, enabling businesses to build trust with their stakeholders. Mariwala also foresees significant investments in adaptive measures due to the intensifying effects of climate change. Companies will need to invest in climate-resilient infrastructure, advanced water management systems, and biodiversity protection. Additionally, there will be a surge in ESG-focused investments, both from the private and public sectors.
Marico Innovation Foundation
Through the Marico Innovation Foundation (MIF), the company is making substantial strides in sustainability. One of the foundation’s key initiatives focuses on tackling plastic waste. Marico has partnered with the Institute of Science and Praxis Consulting to explore innovative ways to reduce, reuse, and replace plastics. They have commissioned a study that has led to the support of innovators working on plastic recycling and reduction in India, Harsh says. One of the exciting developments involves a high-speed recycling machine in Hyderabad, capable of processing six tons of plastic per hour. The machines are AI-enabled, identifying different brands based on colour, and if successful, this project could have a substantial financial and environmental impact.
The scope of MIF’s sustainability initiatives extends beyond plastic recycling. They also collaborate with organisations focused on improving air and water quality, reducing agricultural waste, and increasing agricultural yields.
Personal Passion
Mariwala’s commitment to sustainability goes beyond business. His passion stems from his broader philosophy of “active giving”, where he actively participates in philanthropic causes rather than simply writing cheques. He is involved in both Marico’s CSR initiatives and his personal philanthropic efforts, supporting causes like mental health and entrepreneurship. Despite stepping down from his full-time operational role at Marico, Mariwala continues to invest his time in causes close to his heart.
Mariwala urges the next generation to take sustainability seriously, given the long-term environmental challenges the world faces. The next generation is far more alive to this challenge and will act more aggressively than we have,” he asserts. As the environmental crisis deepens, it’s clear that the younger generation will play a crucial role in shaping a sustainable future.
Union Budget 2025
Mariwala also calls on the Indian government to play an active role in supporting sustainability through fiscal policies. Tax incentives for green manufacturing, write-offs for energy-efficient technologies, and capital funds for recycling projects are some of the key measures that could encourage sustainable practices. The government should support small and medium-sized enterprises (SMEs) to implement sustainability measures, he advises. By aligning fiscal policies with sustainability goals, the government can help create a more sustainable future for all.
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