Responsible competitiveness: Mantra for saving the environment

World Environment Day is celebrated on June 5 every year, reinforcing the urgency for planetary stewardship. The occasion rallies citizens, NGOs, corporations, governmental bodies, and other stakeholders in a chorus of action and awareness, highlighting the imperative to safeguard the planet’s delicate ecological balance. For businesses specifically, this day serves as a strong reminder of their pivotal role in nurturing our shared biosphere. As the climate crisis casts a lengthening shadow, with floods and soaring temperatures, corporate environmental responsibility has to come to the fore. It is time to embrace the concept of responsible competitiveness for businesses.

Responsible competitiveness means integrating social and environmental objectives into the core of business operations and practices. A business adopting a strategy of responsible competitiveness seeks to enhance productivity by moulding its strategies and operations to consider their social, economic and environmental ramifications. Companies adopting this approach need to recognise that corporate responsibility is not merely a moral obligation but a long-term strategic imperative that can significantly enhance competitiveness as well as make a substantial positive impact on the environment. The distinguishing factor lies in viewing corporate responsibility not as a side activity but as a central component of a company's strategic agenda, driving innovation, resilience and sustainable growth.

Indeed, it cannot be business as usual, corporates have to reshape and adapt to the principles of responsible competitiveness to mitigate the threat of the climate crisis, which not only threatens the planet's inhabitability but also the viability of businesses.

Responsibly competitive enterprises prioritise sustainable growth over short-term gains. They weigh the impact of their decisions on all stakeholders, including employees, customers, communities and the environment. Emphasising sustainable practices, they strive to minimise their carbon footprint and uphold social responsibility standards. Recognising the power of collaboration, responsible competitiveness entails active engagement with different stakeholders.

Responsible competitiveness must be ingrained in the DNA of businesses that want to drive meaningful and positive environmental changes. A prime illustration is the approach taken by the business conglomerate, ITC. The company has achieved some remarkable environmental feats and is the only company in the world to be carbon positive for 18 years, water positive for 21 years and solid waste recycling positivity for 16 years.

The answer lies in the focus on intertwining sustainability with its business journey. Over 25 years, the company has crafted innovative business models fostering economic, environmental and social capital. Through extensive programs, the environment is replenished, rural communities empowered and climate crisis challenges tackled. It pursues a low-carbon growth strategy via comprehensive decarbonisation initiatives throughout its value chain. These encompass afforestation, elevating renewable energy use, erecting green buildings, developing and promoting eco-friendly packaging and logistics and advocating regenerative agriculture practices in agricultural value chains.

Other companies from different industries such as Vedanta Sesa Goa and Hyundai Motor India Foundation (HMIF) have incorporated practices which have demonstrated significant positive impacts on the environment. Vedanta Sesa Goa, for instance, is deeply committed to environmental stewardship and sustainable development. Through initiatives like the Sanquelim Mine Reclamation programme, the company has restored and enhanced biodiversity in the region by selectively cutting mature acacia plants and planting native species from the Western Ghats. This commitment extends beyond restoration; the area has been transformed into a thriving ecotourism destination. Projects like the Butterfly Park, Aromatic Garden, Bamboo and Rattan Arboretum and the Bamboo Pavilion not only offer unique experiences but also serve as hubs for environmental and social initiatives.

HMIF's afforestation efforts involve local communities, such as the Irula Tribe in Tamil Nadu and the Chenchu Tribe in Andhra Pradesh, spanning 250 acres of land. This not only conserves the environment but also economically empowers these tribes. In its contribution to a circular economy, under its EcoGram initiative, a biogas plant and material recovery facility built by the company in Gurgaon mitigate 1.4 million kg of CO2 emissions annually. Since October 2022, it has recycled 404,000 kg of waste and generates 200 kilowatts of electricity daily, totalling 76 megawatts annually.

The philosophy of responsible competitiveness also means supporting communities in a sustainable manner and contributing to a nation's environmental goals. The road towards achieving true responsible competitiveness is not a solitary journey but requires collaboration with various stakeholders, from government entities to research associations.

This article is authored by Rajesh Mehta, public policy consultant, New Delhi.