Climate change is altering our planet in unimaginable ways. As dire as the situation is, every minute contribution to reducing our carbon footprint can help mitigate the speed and effect of this phenomenon. After all, climate change has and will continue to give rise to problems, such as:
- Worsening work conditions for certain sectors
- Restricted availability of resources and talent
- Increasing prices
- Unreliable demand
- Increasing mental health concerns
- Supply chain instability
Given this scenario, top business leaders in India and overseas need to be at the forefront of navigating these challenges in a continually changing workspace. As of 2023, India has significantly controlled climate change with policy regulation. A few initiatives implemented by the government include the International Solar Alliance, Swachh Bharat Mission, and COP26 Glasgow Summit.
Business entrepreneurs have also increasingly realised that the cost of inaction is more than the price they will have to pay for positive action. Bill Gates, for instance, has rightly pointed out that businesses need to collectively take aggressive action to achieve net zero carbon emissions by 2050. This becomes actionable only when organisations begin investing heavily in climate-friendly innovations across the globe.
Sanjiv Bajaj, Chairman and Managing Director, Bajaj Finserv Ltd., has also outlined the private sector’s role in building a more sustainable and cohesive world. “We need to balance growth with sustainability to suppress climate change. Climate change is going to have a major impact on many businesses, and it may sunset some of the industries. The Indian industry needs to adapt to ESG Compliance, and there is more work needed to be done in terms of standards of ethics, standards of governance, etc. The world is looking at India’s leadership in this area. ESG is not just the right thing to do; it is what will shape a better tomorrow for all,” he remarks as one of the top business leaders in India.
Sanjiv Bajaj has been actively involved in mitigating the climate change effects and decarbonising the operations of Bajaj Finserv Ltd. But how is he employing these green and sustainable initiatives, and how can empowering future leaders follow suit? Read on to find out.
Attaining Sustainability through ESG Initiatives
Working with twin principles of responsiveness and responsibility, Bajaj Finserv Ltd. has taken various initiatives towards Environment, Social, and Governance (ESG). Mr. Bajaj has highlighted the company’s efforts to build a greener and more sustainable India in the Business Responsibility and Sustainability Report (BRSR) for FY23.
“In line with this ideology, we have adopted a practical approach to implementing our ESG goals and mapped our business responsibility strategy towards the realisation of the nation’s sustainable development and its people’s inclusive growth,” he has outlined.
The company has adopted these principles to the core of its long-term growth strategy, reflected in its initiatives undertaken in the previous financial years.
The company is generating twice the electricity through renewable energy sources that it consumes. Moreover, in consonance with its responsible investment principles, the company has also invested in 138 windmills in Maharashtra. This wind farm contributes to renewable energy generation at an aggregate installed capacity of 65.2 MW.
Environmental Policy to Achieve Greener Operations
The ESG Committee of the company has also approved an Environment Policy that presents its commitment to reducing any negative impact its operations are causing on the environment. To achieve this goal, the company is abiding by all the country’s environment- and conservation-related regulations.
Bajaj Finserv Ltd. is also focused on empowering leadership in the company to introduce new initiatives to reduce the company’s carbon footprint. Committing itself to making certain positive interventions is one way to contribute towards ensuring a clean and greener environment.
For instance, the company has actively embraced practices to:
- Reduce the waste of natural resources
- Avoid wastage by adopting recycling measures
- Bring down greenhouse gas (GHG) emission levels
Under this policy, the company continuously promotes its employees and stakeholders to adopt a more sustainable lifestyle. Moreover, the company has pledged not to indulge itself or invest in ventures dealing with banned wildlife products.
It also does not associate with such entities that cause pollution unless they possess a pollution clearance certificate issued by competent authorities.
Green Initiatives Taken in Collaboration with Corporate Affairs Ministry
The Ministry of Corporate Affairs took a “Green Initiative in Corporate Governance” by allowing the service of notices/documents by a company to its stakeholders in electronic form.
Bajaj Finserv Ltd. was one of the first companies to welcome and embrace this step. The company sends such documents, like a Notice of the Annual General Meeting and Annual Reports to the emails provided by the stakeholders.
Over the past few decades, the progress achieved by human civilisation is more remarkable than the entire history of existence. Climate change and associated threats, however, can dampen the progress achieved. These green initiatives must be taken seriously to limit the harmful effects of climate change by the end of this century.
By building sustainable operating and corporate models, businesses can be more intentional and impactful about their contribution while enjoying a competitive advantage. For that, corporate governance needs to evolve and nurture, empowering future leaders to do the same. Sanjiv Bajaj is doing his part, which is effective because he leads by example.