Sustainable Business Practices that are in Place to Support Sustainable Development Goals

Mukul Agrawal, President - Manufacturing, DFPCL in an interaction with Industry Outlook magazine shared his views on how industry leaders are adapting their business models to effectively integrate the Sustainable Development Goals (SDGs) into their core operations, how organizations within the industry are effectively engaging stakeholders to drive initiatives that support the Sustainable Development Goals and more.

Mukul Agrawal is a seasoned leader in the chemical and fertilizer industry, with over two decades of experience. He has held pivotal roles at Birla Cellulose, Indo Bharat Rayon, and Johnson Matthey. Mukul is recognized as a board member of the Sustainable Apparel Coalition and a member of FICCI’s National Water Mission.

With sustainability becoming a strategic priority across sectors, how are industry leaders adapting their business models to effectively integrate the Sustainable Development Goals (SDGs) into their core operations?

We are adopting a different approach by beginning with a sustainable business model instead of retrofitting sustainability into an existing one. The focus is to create inherently sustainable products which surpass traditional alternatives in the market and this helps in ensuring that the business model itself will drive sustainability.

For instance let us look at the fertilizer sector. Fertilizers such as MAP, NPK, DAP and urea that are used in India commonly have a nutrient use efficiency of forty per cent only. This denotes that for every kilogram applied only four hundred grams are absorbed by the soil, and 60 percent of it goes waste. This inefficiency results in 2 major issues such as overuse of fertilizers that wastes energy as well as resources coupled with the release of unused nutrients into the atmosphere, resulting in environmental harm.

Our aim is to increase the nutrient efficiency to 60 per cent. We can help farmers decrease their costs and create a more sustainable farming community by developing fertilizers which decrease usage while maintaining productivity.   And this approach helps in decreasing the environmental impact, optimizing resource efficiency & it aligns with broader sustainability goals.

Instead of merely focusing on what incremental improvements we can have in production energy consumption reduction, we are rethinking the product itself. Our aim to bring about more significant efficiencies and sustainability benefits of up to 30-50% which means that these solutions are more transformative and meet both economic and environmental needs at a scale.

Given the increasing scrutiny on corporate sustainability, how are organizations within your industry effectively engaging stakeholders to drive initiatives that support the Sustainable Development Goals?

We have embraced sustainability proactively that aligns with global best practices as well as going beyond regulatory needs. We began publishing our sustainability reports, goals even before the SEBI rules were applied to us, while SEBI initially mandated sustainability reporting for the largest organizations as well as aims to extend it to the NSE or BSE 500. Even today, although we are not part of the mandated group, we still continue to drive sustainability initiatives with a long-term vision.

Our five year plan comprises the stringent targets across crucial areas such as decreasing GHG emissions, reducing water consumption, decreasing waste as well as increasing resource recycling and reuse. These targets are pursued actively and integrated into our operations. Furthermore, the Business Responsibility and Sustainability Reporting (BRSR) guidelines of SEBI are aligned which helps in ensuring that all KPIs are available through our website & annual reports, publically.

A few years ago our top management initiated a focused discussion on sustainability, establishing it as one of the core functions as well as strategic priority and this commitment extends even beyond compliance, as we actively benchmark against global leaders in sustainability. We adopt and adapt proven strategies for enhancing our efforts by studying their practices.

Our sustainability report displays these learnings as well as showcases our dedication to integrating the best practices into our journey and this forward-looking approach helps in ensuring that we stay at the forefront of sustainability which would help in contributing meaningfully to environmental and social goals while strengthening the business reliance.

In light of the collective action trend, how is your industry fostering collaborations with other sectors to enhance sustainability efforts and advance the SDGs?

We are actively collaborating with NGOs with an objective of educating farmers to make more effective use of fertilizers and this initiative does enhance crop yields but decreases the usage of fertilizer along with the chemical input. The fertilizers are designed to achieve better results using lesser usage, which also is in line with the concept of sustainable agriculture.

We also work with industry bodies, government agencies, as well as local organizations toward the creation of a more meaningful positive impact. For instance, we undertake major initiatives in the villages and these involve delivering medical services as well as creating awareness about sustainability. Our focus areas include reduction of greenhouse gas emissions, de-polluting water sources and promoting education and overall societal development.

 A key feature of our mission is to take people to the bottom pyramid. Projects we implement that bring them change in their lives include working together with government agencies, the local village council & panchayats. These collective efforts show our commitment to sustainability and just as a business goal but also as a social responsibility. Our goal is to make a lasting impact on communities as well as the environment through education, collaboration as well as targeted initiatives, fostering growth as well as resilience at all levels.