Corporates and big business houses of today are undergoing a complete transition towards aligning
their company strategies with ESG (Environmental, Social and Governance) principles. What was once seen as just a concept has now become a mainstream corporate priority, with ESG goals reshaping industries, influencing the consumer as well as the investor behaviour, and redefining the growth and success of the concerned organization. Therefore companies across the globe should focus on sustainability, particularly the manufacturing companies should go for sustainable or responsible manufacturing, creating the least environmental damage and minimizing plastic waste.

The rise of ESG is not just a mere trend, but an entire process that has come into existence in the recent past as a response to the pressing social and environmental challenges, such as climate change, social inequalities in the society, and the need for corporate transparency. Hence, as the world struggles with environmental degradation and social unrest, companies like WAE have realized the fact that the long-term value and demand of their products and services cannot be built in isolation from their broader societal and environmental responsibilities. Hence, this Water Expert, offering the most hygienic and sustainable drinking water solutions and products through its wide range of drinking water machines, water purifiers, ROs, etc., has totally embraced sustainability by ensuring that all its products are environment-friendly with the least carbon and water footprint.

 Why should there be Awareness Campaigns & Growth of ESG in the Corporate World?

The inclusion of ESG policies and programmes into the corporate strategies of organizations, today, has developed only in the recent past. For instance, according to a 2020 survey by Morgan Stanley, around 85% of individual investors were interested in sustainable investing, and ESG-focused investments has reached to about $35 trillion, globally. However, this development goes beyond the preferences of environmentally and socially-conscious business houses or corporates. The increasing number of rules and regulations, shareholder demands and market risks, together, have culminated in pushing companies, especially the big industries in the private sector to recognize the significance of aligning their businesses with ESG frameworks. Thus, large-scale as well as the small-scale industries should aim for managing the Earth’s rich natural resources, such as the potable water resources like rivers, lakes, ponds, etc as wisely as possible.

 Why does it matter to implement ESG in Businesses beyond Profit Margins?

At the heart of ESG lies the belief that corporates or businesses, worldwide, have a crucial role to play in addressing societal challenges. Unlike traditional models that prioritize financial returns above all, ESG frameworks encourage companies to take a more holistic and value-added approach. So, let’s take a deeper look at the three main components of ESG:

• Environmental: The “E” in ESG stands for the “Environmental aspect” which calls for businesses to mitigate their negative environmental impact, i.e., adopting sustainable practices, by reducing the carbon emissions or carbon footprint, managing waste, or using the natural resources efficiently like applying digitalised or smart water resource management techniques, etc. Corporates and small organizations, as well, should be held responsible for their environmental footprint. Additionally, the frequent climatic changes have also accelerated this trend, with “net-zero” pledges becoming the norm for industries, big or small, across the globe.

• Social: The “S” focuses on an organization’s impact on the society, including issues related to human rights, labour practices, community health and engagement, employment opportunities, etc. For example, using and encouraging the use of sustainable products like reusable glass water bottles, instead of the harmful use of disposable plastic bottles, cans, jars, etc. This will not only reduce the huge amount of plastic litter polluting our land and water bodies, but will also ensure a better and healthier environment for the future, along with a heathier and disease-free society, as pollutants especially plastic waste and microplastics are dangerous for all living creatures, on land as well as the seas and oceans!

• Governance: The “G” in ESG stands for “good governance” which ensures that companies should be managed transparently and logically, in a way that benefits all its stakeholders. This includes clear policies or rules regarding salaries, bonuses, anti-corruption measures, board diversity, and shareholder rights. It also includes workers' safety and health measures, women’s safety (implementing POSH), etc.

 What are some of the Major Challenges faced by Businesses in implementing the ESG Principles?

Despite its growing popularity within corporates and business houses, ESG is not without its own challenges. There’s a lack of standardized way of reporting or frameworks which makes it difficult to assess and compare the companies' ESG performances. Critics argue that companies can engage in providing misleading claims about their sustainability practices to attract customers and clients, both, without actually implementing those measures that can reduce waste on land as well as water bodies, or device proper water and waste retrofit solutions to ensure the water security of a country!

 What is the Future of ESG and What More Needs to Be Done?

The rising influence of ESG goals is indeed significant in today’s world, particularly in the manufacturing sector, where we have to be more responsible in using sustainable or evironment-friendly techniques and products to save the overall environment as well as mankind. This fundamental shift in the corporate trends and policies will not only help them to produce eco-friendly products, but also ensure companies going for complete sustainable solutions for a cleaner, greener and healthier planet.