Sustainability takes a mainstream role in corporate India: Driving force of business success in the next decade—and beyond

Russell Reynolds Associates report identifies opportunities and challenges for embedding sustainability across business strategies

India, February 7, 2022 -- Russell Reynolds Associates (RRA), a global leadership advisory and executive search firm, released Divides and Dividends: Leadership Actions for a More Sustainable Future, which revealed what a cross-section of the Indian workforce thinks about business leaders’ efforts to advance the sustainability agenda.

Divides and Dividends was published following a major research study across 11 countries, covering more than 9,500 respondents from three distinct groups: C-Suite executives, next-generation leaders, and employees. The research was designed to understand the state of sustainability within organizations today, revealing whether these groups are united or divided in how they view the maturity of their organization’s sustainability strategy, and the progress company leaders are making against that roadmap.

Vijuraj Eranazhath, a consultant at Russell Reynolds Associates, said: “In many ways, India’s record on sustainability is a source of pride. Yet we know that the transition to sustainable business is far from over. Sustainability must become a fundamental strand of business strategy, not an add-on to business as usual.  

“Our research shows that while business leaders in India are firmly committed to sustainability action, many are running into myriad challenges on their sustainability journeys, from bureaucracy and a lack of organizational investment to short-term pressures from investors. It’s also comforting to note that next-gen leaders in India seem to be getting a lot more exposure to strategic sustainability initiatives vis-a-vis the global average – which sets up Indian businesses well for the future.”

Vinita Katara, a consultant at Russell Reynolds Associates, added: “It is heartening that more and more businesses are awakening to the potential of sustainability to radically change their company’s fortunes for the better. Realizing these opportunities will require bold leadership. Leaders will need the vision to strike a different path, the grit to overcome obstacles and the courage to stay the course in the face of setbacks. Those who do will unlock significant dividends—from faster top-line growth and more resilient supply chains to greater employee and customer loyalty.”

Key Indian Findings

• C-suite leaders in India most confident about sustainability progress
  Across the 11 markets surveyed, C-suite leaders in India were the most confident about their sustainability progress.
  • 57% say their organization has a sustainability strategy that has been acted upon and clearly communicated, versus 43% globally.
  • 61% believe their CEO is personally committed to sustainability and organizational progress has been made, versus 51% globally.

• Brand concerns set the sustainability agenda
  There is a significant opportunity for more leaders to recognize the potential of sustainability to unlock value for people, planet and profit.
  • 45% C-suite leaders in India are candid in saying their sustainability approach is mainly driven by brand management concerns—that is, they want to be seen as socially responsible and reputable or to use sustainability for competitive differentiation.
  • 29% of C-suite leaders in India say their sustainability efforts are motivated by value creation—that is, they want to have a positive impact by creating new sustainable products/services, or by creating opportunities and access for disadvantaged or underserved groups.
  • India was the third most likely of all markets studied to cite value creation as a primary driver of their company’s sustainability strategy, behind Brazil and Mexico.

• Business leaders face numerous obstacles to success 
  C-suite leaders must overcome many challenges on their sustainability journeys.
  • A lack of organizational investment is the top barrier to embedding sustainability across business strategy, cited by 51% of C-suite leaders in India.
  • Other challenges include short-term pressures from investors (47%) and organizational complexity (46%).

• Next-generation leaders primed to advance sustainability agenda 
  Next-generation leaders are powering sustainability activities in India.
  • 70% of next-generation leaders in India have taken on three or more job responsibilities in the past two years to improve environmental and social outcomes—well ahead of the global average (40%) and their APAC neighbors (49%).

Methodology

Russell Reynolds Associates fielded a survey in 11 growth and mature markets across three job levels. Responses were collected from 8,594 employees and next-generation leaders, and 907 C-Suite leaders.

The 9,501 business leaders surveyed were from medium to large size businesses and represent:  

• C-suite leaders including CEOs
• Next-generation leaders who report directly to the CEO or other c-suite executives.
• Employees at multiple levels that do not report to the c-suite.