A JOURNEY OF GROWTH, INNOVATION & COLLECTIVE ACTION

WITH increased focus on climate action, diversity and inclusion and sustainable business practices, 2024 was a pivotal year for Environmental, Social, and Governance (ESG) developments globally. India's distinctive socio-economic profile and development agenda demand a tailored approach to ESG considerations. The country's rapid economic growth, rich cultural diversity, and pressing environmental issues have created unique ESG challenges and opportunities. This necessitates a nuanced understanding of India's specific ESG needs and how they differ from global norms. A focused examination of these differences is crucial for businesses, investors, and policymakers seeking to navigate India's ESG landscape effectively.

- By Amit Bhasin

India's Sustainability Inflection Point

As the country strives to lift millions of citizens out of poverty and achieve its ambitious development goals, the pressure on its natural resources intensifies. The resulting strain on the environment is taking a toll on the country's ecosystems, biodiversity, and natural resources, threatening the very foundations of its economic growth and human well-being. The next few years will be critical for India's sustainability journey. As the country continues to develop, increasing environmental demands will be driven by factors such as rapid urbanisation, growing energy needs, increasing water scarcity and rising waste management challenges.

India's urban population is projected to reach 590 million by 2030, putting pressure on cities' infrastructure, resources, and ecosystems. India's energy demand is expected to increase by 50 per cent by 2030, driven by economic growth, urbanisation, and rising incomes. Water resources are already under strain, and the situation is expected to worsen due to climate change, population growth, and urbanisation. The waste management infrastructure is inadequate, and the country is expected to generate over 150 million tonnes of municipal solid waste by 2030.

Economic expansion, driven by government initiatives such as Make in India and the National Infrastructure Pipeline, will also have a significant impact on the environment. As India's economy continues to grow, sustainability must be integrated into the country's development strategy to ensure that growth is equitable, inclusive, and environmentally conscious.

Key Drivers