Sustainability & ESG

Small changes can deliver outsized impact.

What distinguishes human beings from the rest of the species? Apart from the ability to make stories as beautifully explained by the leading Thinker Yuval Noah Harari, it is the desire for progress. Progress means making things better, step by step. Each improvement, no matter how small, contributes to higher productivity, reduced effort, and greater satisfaction - key drivers of sustainable business growth.

This is what the Industrial Revolution brought us: no more horse-drawn carriages with low speed and limited comfort, but cars that offered greater comfort, faster speeds, longer distances, meeting all the conditions of progress. The ongoing digital does the same but at a different level – no more snail mail, visiting banks or post offices, fewer errors, and much higher speeds. While revolutions are about mega changes over a short period of time, human beings have always been driven to make things better on a daily basis. These incremental changes are no less important than they lead to revolutions that transform human life.

For any change to work, it is vital that it offers a clear economic benefit, as the input should have a lower value than the output for it to be adopted and sustained. It needs to be embraced by the business world to either create better value for its customers, reduce effort/costs, improve speed and productivity, or all of the above.

When we talk about technology, we often refer to the digital space, e-solutions, CRM systems, and AI. What we often overlook are the basic tech changes that make our world better, as much or more – for example, shifting to LED lighting that saves 90% energy, BLDC fans vs conventional AC fans that save 65% energy, or a mundane cleaning process that needs less water by design.

I experienced both kinds of tech making huge changes up close and personal during my stint with Diversey, a company that uses technology to make hygiene and cleaning simpler, more productive, and sustainable, with greater dignity for the user.

Diversey is in the business of professional hygiene delivery (chemicals, dosing systems, machines, robots, training, certification – the entire gamut), prima facie a boring business. How do you find value in something as mundane as cleaning? How do you get the attention of the CEOs in your customer settings? By creating an impact that matters to him. Which process is used for cleaning a urinal has no interest for the CEO, but the environmental impact of water reduction and the help in achieving sustainable targets will.

Sustainability has been at the core and key driver for the business at Diversey. The idea has been to eliminate/reduce the need for water or energy at the source itself, rather than play with tools like water recharging to claim water neutrality, or shift to so-called green energy or electric cars, which just shift the footprint to another point.

I can share many examples of how technology came to the fore to improve things. The first one that comes to my mind is adaptation to waterless urinals. Although the concept is not new, what was new in this case was the ability to convert any men’s urinal into a waterless one. The problem with conventional waterless urinals has been the abuse of enzyme tablets, and to overcome this, we converted the tablets into a liquid spray that is applied periodically, along with non-pathogenic live bacteria that can grow in the drains to become self-sustaining. Nothing great, but the outcome was phenomenal. This is just 1% of the Indian urinals’ population, which saved 2 billion litres of water in a year. For a country with just 3% of freshwater and 15% of the population, this is a real impact. Many such examples exist, including converting a high-temperature laundry system to room temperature, converting wet lubrication systems in beverage bottling plants to dry lubrication, consolidating complex CIP systems into a single protocol, and reducing time, energy, water, and so on.

In the conventional digital technology space, Diversey deployed AI to track employee engagement in 2015, when AI was not yet a buzzword. It would track the employee onboarding and the employee's life at the company by chatting as a chatbot (which was so good it was almost like a real person) and using their responses to probe further until it reached the pain point. The pain point was then shared with HR and the CEO to have a suitable intervention. The process was kept confidential to avoid compromising the employee with his direct manager, which might otherwise happen. The impact was huge, with engagement scores consistently exceeding 80% and ranking among the highest in the cohort. Another example was using software to read email communications and convert them into sales orders rather than punching them in manually, lowering errors, improving productivity, and strengthening customer cell action. Progress in efficiency of >30% and reductions in outcome errors of >20% led to lower operating costs and happier customers.
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What we just discussed are different types of innovation - product/ process using technology from basic chemistry to application engineering and IT tools. The business's use of technology is critical to its vitality. Business performed in the top trajectory, creating value for the investor-parent, employees, and, most importantly, customers. Leaders should not judge the idea in itself, but rather its potential impact on the business and society. Small ideas cost less, are easier to implement, and thus pose even less risk. The best way to adopt innovation is to create a culture of ‘no judgment’ and encourage ‘out of the box’ thinking. Not all your team can be Elon Musk, but if encouraged, they can create a similar impact in their space.

The above shows the need for the business to constantly renew itself to stay relevant in this fast-changing world. As they say, innovation is the lifeblood of the business, and technology feeds innovation.

A practitioner’s view from four decades in beverage manufacturing on why sustainability is hardest and most necessary for SMEs.

In my 40+ years of career, I have worked in beverage companies for 30 years. And when you are in this field, you develop a strong admiration for your main, and largest by quantity, ingredient: water.

When I joined United Breweries in 2004 as the Plant Head for one of their recently acquired breweries near Delhi, we were struggling with high water consumption and, as a result, high wastewater discharge. The groundwater was depleting; whatever drops remained had excessive levels of dissolved minerals and were thus unsuitable for brewing beer. The situation was so grim that we risked abandoning the site and relocating to a new one if it wasn't rectified. And trust me establishing a new brewery is not easy! The capital expenditures are high, and there is a risk of losing out on an established market—an unthinkable consequence.

To reverse the imminent danger of a dry spell, we set up a focus group centered on reducing water wastage and replenishing groundwater. We adopted the best practices with the right people, processes, and equipment to back it up. It was a long journey, at least two or three years, but the positive results were far more important. It kick-started my love for developing sustainable operations.

The following year, I was promoted and given the additional charge of reducing water consumption across all 21 breweries in the country. Along the way, I started paying attention to energy and corporate social responsibility, too. In 2015, as I adopted the UN’s Sustainable Development Goals, my focus became more holistic to include ESG (Environment, Social, and Governance) — a learning which remained with me even as I changed various organizations. It is during these years that I learned of the difficulties encountered by start-ups and smaller organizations.

As of today, Micro, Small, and Medium Enterprises (MSMEs) represent over 90% of businesses, employing up to 70% of the workforce and driving around half of the world’s GDP. Even though accurate global figures vary, India alone sees MSMEs contributing approximately 30% to GDP and roughly 45% to exports, highlighting MSMEs’ key role in job creation, innovation, and sustainable development worldwide.

A 23 June 2025 World Economic Forum white paper, Sustainability Meets Growth: A Roadmap for SMEs and Mid-Sized Manufacturers, makes a useful point: small and mid-sized manufacturers can be powerful multipliers of climate action, particularly in decarbonizing value chains because they sit inside global supply networks. The report also indicates that fast-tracking sustainability transitions by SMEs can materially improve progress toward Paris Agreement goals while unlocking economic growth.

According to a 2015 estimate by the International Energy Agency (IEA), SMEs account for 13% of the world’s total carbon emissions. If one only looks at carbon emissions by the business sector, SMEs account for 60% (recently, a report by the World Economic Forum and the Organization for Economic Co-operation and Development (OECD), dated 23 June 2025, found this segment accounted for 40-60% of the total carbon emissions by businesses). In India, the overall greenhouse gas emissions by SMEs are around 110–150 million tonnes of CO₂, accounting for roughly 10–15% of the total emissions by the country’s industrial sector.

So Why The Hesitation?

Running an SME is rife with problems. Investments are largely operational forward, focused on infrastructure, selling, and marketing costs. Due to tight cash flows, one is often hesitant to invest in anything that takes one or two years for payback. It may take years for the financial benefits of sustainability investments (such as cost savings, strengthened brand reputation, and risk mitigation) to be realized. Add to this the lack of clarity regarding which technologies or processes will prove effective for sustainability, leading to uncertainty of stable government policies and incentives. With no historical data to prove effectiveness and difficulties measuring non financial benefits, such as risk mitigation and company image within existing financial modules, investors and business owners perceive investing in green technologies as risky.

The hurdles start at the bottom. Often, SMEs don’t hire people who specialize in sustainability, which leads to a huge gap in knowledge and skill; reducing manpower and focusing on ‘core’ operations takes precedence. At the top rung, too, owners and leaders don’t commit to sustainability due to insufficient awareness and priority. It is owing to this lack of expertise in the domain that dedicated departments are considered responsible and capable of providing sustainability solutions. The rest of the organization remains in silos.

And that’s where the problem lies. Sustainability requires collaboration across the organization, as it requires looking at ESG holistically. Highly collaborative teams are key to ESG solutions.

What’s In It For (S)Me?

Regulatory compliance may not be the ideal motivation, but it is the most effective. For SMEs, these key compliance requirements include controlling emissions of water, gas, and solid waste. On the social front, this includes workers’ health and safety measures, a crèche for children, and more. The hazards and norms depend upon the severity of operations and the industry. These steps should not be taken retroactively, though. Authorities should monitor installations during the project stage rather than at completion. Often, entire costs have sunk towards the penultimate steps.

Before starting a Greenfield manufacturing project, one has to obtain a ‘Consent to Establish’ for emission control measures from the regulatory authorities. The next contact with authorities, then, is only at the time of completion, when a ‘Consent to Operate’ must be obtained. If the constructed parameters do not comply with the norms, modifications to the construction can be made and resubmitted to the authorities for approval. Sadly, these processes can be long and expensive. I feel authorities can lend a helping hand here by introducing stage-wise inspections.

Financial benefits are another motivator. By adopting best practices, one can notably reduce the cost of sustainability initiatives. Many large organizations have cells centered on developing training tools and process enhancements. These measures help reduce waste, thereby diminishing the need for capital investment.

Technology And Costs

The cost of green technology also continuously decreases with scale, thereby reducing payback periods. According to Wright’s Law, from 2009 to 2019, there has been a steep drop in green technology prices due to increased production scale and innovation. In 2024, it is cheaper to increase renewable power generation capacities by up to 90% than the cheapest available new fossil fuel-based alternatives.

Source: https://www.solarpowerportal.co.uk/solar-pv/solar-pv-costs-fall-82-over-the-last-decade-says-irena)

Sustainability is an increasingly powerful marketing tool. Today, consumers favor companies that show authentic ESG responsibilities. By attracting eco conscious consumers, companies can build strong brand loyalty, enhance their reputation, and promote innovation through aligning profit with purpose. It is important to move beyond green-washing to authentic action. A powerful mix combines regulatory compulsion softened by incentives, financial gains, and improved brand image.

The Next Step

The best, most effective, and quickest way to achieve sustainability targets with minimal capital investment is to reduce waste, ensure compliance with best practice work processes, and make smart investments in effective technologies. Start with what you can measure and control: specific water use (hl/hl), specific energy (kWh/hl), and unplanned downtime minutes. Add a few meters and controls, create a weekly dashboard, and let cross-departmental teams act on the data. Strong, progressive leadership, combined with clear direction, ethical practices, and a long-term focus, is also a must. It requires building an empowered workforce by continuously developing in-house talent, encouraging input across all levels, and seeding agents who train larger groups down the pyramid. These personnel can focus on lean processes, quality assurance, and cost-efficient logistics.

Sustainability isn’t only viable for smaller manufacturers; it can also be leveraged as a competitive advantage in today’s fast-evolving economic and regulatory setting. All one needs to do is take the first step.

Clean energy, EV, sustainability, leadership insights

India’s clean-energy shift is part of a larger global movement, driven by rapid advancements in electric vehicles (EVs), sustainable energy solutions, and government policy. As India aims to become a global leader in clean energy, its progress is influenced by international market growth, emerging technologies, and evolving policy trends. For those of us building inside this transformation, it is also a personal journey, shaped by lessons, missteps, and the constant pressure of scaling something new.

My own path into this industry was never planned. In fact, my career started by selling petrol and diesel for a living, and the energy transition in the early phases of my career looked more theatrical in the short term. I worked across roles that had nothing to do with EVs or power systems at the time. But each role taught me something essential: how to build teams, think long-term, and stay calm when things go wrong. These were the foundations I carried with me when I joined the clean energy sector in a leadership role. What I didn’t expect was how quickly the industry and my job would change around me.

"The market has shifted faster than anyone predicted"

India’s EV sector was still young in 2019-20 when I joined. Many customers questioned the viability of EV charging infrastructure and the future of clean mobility in India: Every deployment seemed like a test case. Every charger installed was monitored like a newborn.

Today, OEMs are launching advanced platforms and investors are backing long term plays in sustainable energy. Consumers expect fast, reliable EV charging infrastructure with zero excuses. Safety, cyber standards, and uptime are under the spotlight in a way we never imagined years ago. This shift pushed companies in the sector into a new phase: from pilot deployments to large-scale national infrastructure. From basic chargers to high-power, software-led platforms. From an India-focused team to a global engineering and manufacturing organization, partnering with global partners and sharing best practices.

For me as a leader, the question changed from “How do we prove this works?” to “How do we make it work every day at scale?”. That mindset change has defined the last few years.

Technology helps, but it doesn’t solve everything
Technology sits at the center of our industry’s progress. Smart diagnostics, advanced electronics, remote monitoring, and AI-led predictive tools have changed the way we operate. These systems enable operators to detect problems early, optimize performance, and better support customers.

But technology also forces you to face the reality: reliability is not created by algorithms alone. It comes from disciplined engineering, a culture that values quality, and teams that understand the stakes on the ground. Connectors don’t always match perfectly. Field conditions stress hardware in ways engineers never predict. This is where my earlier career lessons became valuable. You cannot outsource judgment. You cannot automate ownership. You cannot scale without systems. We learned this as we shifted from reactive maintenance to data-led field operations. The technology enabled it, but the real change came from people and teams who adopted new processes and raised the bar on reliability.

The road ahead will demand depth, not just speed
Looking at the next five years, India’s energy and mobility ecosystem - including electric vehicles, renewable energy, and advanced battery technologies - is entering a decisive phase. What we build now will define the market for a decade, and help shape India’s leadership in the global clean energy transition. The choices made here will set examples for other emerging markets worldwide.

High-power charging will move from a niche to the norm. Software will become the brain of every hardware product. Safety and cybersecurity will become non negotiable. Customers will measure value not just by innovation, but also by reliability and service. Global standards will shape how Indian companies design, manufacture, and operate, ensuring India’s solutions stay competitive and applicable worldwide.

Use technology to amplify discipline, not replace it
The turning point in my own journey was recognizing that leadership isn't just about solving the biggest problem of the day. It is about designing organizations that solve problems better than any one person can. This is the mindset India’s energy transition now requires from all of us. We are still in the early chapters of a massive transformation.

My belief is simple: the clean energy industry, in India and globally, rewards those who build for the long game by committing to sustainability, innovation, and leadership. If we stay committed to quality, invest in people, and continue to see substantial results, we won’t just observe the future of energy; we will help shape it.

Why does sustainability become real only when it shows up in everyday decisions

After a taxi ride in Japan, I observed something unexpected on my digital receipt. Alongside the fare was an estimate of the trip’s carbon emissions, as well as a comparison number, subtly indicating that, depending on my choices, my impact could be higher or lower.

It was a simple design choice, but it carries a bigger message. That sustainability is no longer something you read in just annual reports. It has started to show up in routine customer exchanges, and companies can no longer treat it as a side program.

With this change, decarbonization is moving from ambition to execution. When it becomes visible, measurable, and comparable, it turns into a capability. Like safety. Like quality. Like cost.

The Quiet Pattern Behind Big Shifts

Big ideas rarely become “normal” overnight. They start as a specialist language, move into leadership narratives, then show up in budgets, standards, and systems. Only after that do they become visible in everyday decisions. We saw this with the internet and mobile phones. Adoption didn’t take off because the idea was exciting; it took off when pricing, infrastructure, and standards aligned. Once that happened, usage became the default.

Sustainability is now crossing that line. For years, decarbonization lived in reports, pledges, and long-range targets. Today, it is increasingly becoming a requirement: what buyers ask for, what regulators audit, what financiers scrutinize, and what supply chains must prove. Evolution is about more than awareness; it’s about collective responsibility.

Sustainability Is Hitting An Alignment Moment

A decade ago, the Paris Agreement and the Sustainable Development Goals created shared direction. Since then, governments and corporations have translated that direction into roadmaps. More importantly, they are turning it into expectations through regulation, procurement requirements, disclosures, and customer pressure. That is why sustainability feels different now. It is moving from slide decks to operating decisions.

Across industries, the signals are getting clearer. Customers are asking for product-level carbon information. Regulators are tightening compliance expectations. Investors want more than intent statements. Supply chains are being pushed to prove, not just promise. If the last decade was focused on commitment, the next one will be about execution and proof.

A View From The Lubricants Industry

I have spent close to two decades in the lubricants industry, and I am seeing this shift firsthand. One of the biggest changes is how environmental effects are being measured. Life Cycle Assessment, the idea of evaluating impact across a product’s full life cycle, is becoming a more common language across stakeholders. At the same time, Product Carbon Footprint discussions are moving from “nice to have” to “required for doing business,” driven by customers who want credible, comparable numbers.

This is a major operational change. Measuring emissions throughout the life cycle is not a marketing exercise. It forces hard questions: What boundaries are we using? What data is primary versus estimated? What happens when a supplier cannot provide traceable information? How do we maintain consistency from one reporting period to the next?

Once those questions are on the table, the next step is action. Companies are working the levers they can control. Energy efficiency improvements, increased use of renewable power, re-refined base oils from used lubricants, bio-based feedstocks where performance requirements allow, and packaging redesign using recycled plastics are becoming more visible strategies.

What is interesting is how quickly these efforts stop being framed as “green initiatives” and become business fundamentals: cost stability, supply assurance, export readiness, consumer faith, and audit risk.

Regulation is also accelerating the change, particularly where responsibility goes beyond the factory gate. In India, extended producer responsibility policies around used oil and plastic waste are pushing the ecosystem toward circularity and traceability. When responsibility becomes extended, you cannot manage it with periodic emails and spreadsheets. You need systems, controls, and evidence trails.

At the same time, carbon capture, utilization, and storage is gaining momentum in India through collaborations across government bodies, research institutions, and engineering talent. Not all of this will scale quickly, but the wider direction is unmistakable: the decarbonization toolbox is expanding, and expectations will rise with it.

Technology And Its Impact

Technology will have a major impact on sustainability, yet it is not a magic layer you can add on top of weak data. Where it helps most is in visibility and coordination. Sensors and connected systems can improve measurement at source. Digital workflows can improve supplier participation and data capture. Analytics and AI can recognize outliers, spot gaps, and improve consistency. Scenario tools can help teams model trade-offs before making capital decisions.

But the hardest problems are not purely technical. The toughest part is alignment across standards, regions, and industries. You can capture data, but if different stakeholders define boundaries differently, your numbers become arguments rather than insights. Interoperability is another challenge. Data sits in dozens of systems across suppliers, customers, auditors, and regulators. Stitching it into a reliable picture is difficult, and it is where many sustainability programs slow down.

Then there is the trust layer. Sustainability reporting is easy to display and hard to defend. Many dashboards look impressive until someone asks, “Show me the source, the method, and the controls.” This is why I think the next decade will not be defined via flashy sustainability software. It will be defined by whether companies build an operating model for measurement, reporting, and verification that is as disciplined as finance.

The Decade Ahead

As sustainability becomes visible in customer experiences, embedded in procurement decisions, and enforced through audit expectations, it moves from “initiative” to “requirement.” And when that happens, the winners are rarely the loudest. They are the most disciplined. They measure consistently, improve transparently, and build systems that survive close inspection.

That taxi receipt in Japan was a small moment for me, but it captured the future on one screen. When carbon becomes a number customers can see, and auditors can verify, the conversation changes. The question is simple: In your business, what is the first sustainability metric your customers will refuse to buy without?