India's Vision for Sustainable Growth

Addressing the 19th Sustainability Summit organized by CESD (Centre of Excellence for Sustainable Development) and CII, Sanjiv Puri, Chairman & Managing Director of ITC Limited highlighted the need for India to step up its climate change adaptation measures, the country’s leadership in climate change initiatives and the role of business in sustainability through innovation, collaboration, and competitiveness. Following are the insights.  

India has come up with a unique concept to encourage sustainable living which was launched by the Prime Minister at COP26. It was later taken to the global level when the United Nations Environment Assembly endorsed an Indian resolution on sustainable lifestyles. The idea behind this endeavor, Viksit Bharat, is a combination of environmental responsibility and the country’s development goals and the objective of reaching net zero.  

The spirit of Sabka Saath, Sabka Vikas, and Sabka Vishwas is the essence of the approach that needs to be taken while navigating the country through a myriad of development processes and policies. This approach is in line with India’s policy of sustainable development where the country aims at achieving its developmental objectives without compromising the environment.

Escalating Climate Challenges and Impacts on India

Climate change has continued to manifest itself in society with every year that passes by. In 2023, the global average temperature exceeded the 1.5-degree Celsius above pre-industrial levels for the ninth year in a row. July of 2023 was the warmest July in the 175 years of records as NOAA has reported. The effects of these higher temperatures are becoming more apparent with weather conditions such as heat waves and other natural calamities becoming more frequent and intense.

India faced severe weather conditions for 318 days in the past year and this shows how the agricultural value chains in the country are exposed to climate change. Research shows that climate change could reduce crop yields by as much as 9 percent and this is a clear indication that we are in for hard times. Also, the temperatures may cause India to cross the human survivability index by the end of this decade, with more than 75 percent of the workforce at risk of heat stress. The other major problem is water shortage where two-thirds of districts in India are experiencing water shortage. Recent water scarcity experienced in the country is an indication of what is in store in the future.

Global Commitments and India's Unique Position

Unfortunately, despite many countries and enterprises having declared their commitment to achieving net-zero emissions, the progress toward the objectives of the Paris Agreement is slow. The COP28 Global Stock take Report reveals that most countries are lagging in the achievement of these goals. In fact, India is the only country among the G20 countries that is on track to meet its climate goals. While India’s per capita emissions are still lower than the world average, it has understood that it is high time for intensification of efforts in combating climate change.

As far as decarbonization, energy transition, and circular economy practices are concerned, India has made some efforts but it needs to speed up its process. It is anticipated that such goals will demand a substantial amount of capital and the estimates suggest that India will need USD 12 trillion by 2050. This funding will have to be sourced from both domestic and international sources from the public, private, and multilateral institutions. The investment in the private sector will therefore depend on the development of cost-effective technologies that will be profitable, and streamlining the system. On this front, the government has started the process and has encouraged the creation of technologies such as green hydrogen and carbon capture to address hard-to-abate sectors.

Urgent Need for Adaptation Strategies

Although the fight to lower global temperatures must be stepped up, it is obvious that the process of lowering the temperatures will not be a day’s job. Meanwhile, the world will keep on warming and the extreme weather events will become more frequent and severe. This makes adaptation strategies crucial in reducing the effects of climate change on society. Mitigation of physical risks, formulating and implementing science-based adaptation measures, and applying evidence-based policies are some of the steps that can be taken toward this end.

The Indian government has gone even further by preparing for it, through the formulation of the National Action Plan on Climate Change (NAPCC) and the creation of the National Adaptation Fund for Climate Change (NAFCC). These are the initiatives that are meant to lay down and put in place adaptation at various levels. Public-private partnership is therefore an important aspect of this process as many players including governments, corporations, and communities have to find solutions.

Data-Driven Risk Assessments and AI-Based Tools

Risk assessment is one of the most important skills that can be mentioned as the key components of adaptation. To achieve this, it is necessary to have the historical information and the AI tools that will be able to predict future risks. The public utilities that collect data and give the population access to AI technologies can assist in understanding and preventing the consequences of climate change. The most common reason for risk assessment is to be able to come up with risk management strategies that will help in decision-making.

The last determinant that affects the decision-making process is the economic factor, which is influential especially in cases that involve corporates. Hence, the economic costs of inaction have to be put into figures. According to the findings, adaptation costs can be offset by four dollars of savings for each dollar spent. It is therefore important to come up with tools to evaluate the economic costs of climate risks with the aim of encouraging investments in measures to counter climate change.

Role of Corporates and Triple Bottom Line

Corporations have a responsibility to mitigate climate change and its effects and to do so effectively. In light of this, businesses are expected to nourish the resources to maintain them for the benefit of society. Through the integration of environmental and social factors into strategic management, firms can generate value for shareholders and environmental and social assets.

The idea of the ‘Triple Bottom Line’ is the notion of achieving economic, social, and environmental benefits at the same time. For instance, ITC has been using this approach for almost three decades. The company has been carbon-positive, water-positive, and solid waste recycling-positive for almost two decades. By having LEED-certified net zero-carbon hotels, ITC has ensured that its hotels too are eco-friendly.    

Collaboration and Knowledge Sharing

The process of sustainable development and climate change adaptation entails cooperation and exchange of information between different fields. With the help of collaboration, governments, businesses, and communities can implement solutions to the problems resulting from climate change. It is important to share the best practices and experiences to enhance the progress and to strengthen the resilience in anticipation of the future.