Intro: Are you aware of the evolving CSR laws in India and how companies have embedded CSR within their frameworks? Have you considered the growing focus on ESG among corporates and its impact on sustainable investing and risk management? Are you familiar with India's progress in the sphere of ESG and the challenges and opportunities it faces? These and more questions were explored with Dr Lopamudra Priyadarshini, AVP, Hindalco Industry Limited in an exclusive interaction with senior journalist Mahima Sharma. The interview at Indiastat with this Head of Community Relations & Sustainability Odisha, Special Projects, and a Senior CSR professional, sheds light on the intricacies of ESG, development in India, job creation in the ESG sector, and the future of India's net-zero mission. Take a read at this week’s Socio-economic Voices exclusive that concludes with some very in-depth guidance for aspiring professionals in the field.

MS: ESG is a wider umbrella that embraces CSR, employees' well-being, and corporate governance. Do you agree with this statement and if so why? If not, why?

LP: As a Senior CSR professional, I partially agree with the statement that ESG is a wider umbrella that embraces CSR, employees' well-being, and corporate governance. While ESG does encompass certain aspects of CSR, it also includes additional dimensions that may not align perfectly with the mining industry in India's specific challenges and priorities.

Firstly, CSR has long been an integral part of the mining industry's approach to sustainable development in India. Mining companies understand the importance of engaging with local communities, promoting social welfare, and mitigating environmental impacts. CSR initiatives in the mining industry in India often focus on community development, education, healthcare, infrastructure, and environmental conservation. These efforts contribute to the well-being of communities affected by mining operations and demonstrate a commitment to responsible resource extraction.

However, the mining industry statistics in India showcase that it faces unique challenges that extend beyond the scope of traditional CSR frameworks. Extractive industries are subject to stringent regulations and environmental considerations due to the potential for land degradation, water pollution, and greenhouse gas emissions. Consequently, corporate governance and environmental stewardship play a crucial role in ensuring responsible mining practices. Compliance with legal requirements, rigorous environmental impact assessments, and effective rehabilitation and reclamation programs are essential components of good governance in the mining sector. Moreover, if we look at the mining industry statistics India, the well-being of employees in this sector goes beyond the social dimension of ESG. Mining operations often involve hazardous working conditions, requiring specific safety measures and health protocols. Protecting workers' safety and ensuring their well-being is of paramount importance.

While ESG statistics of India, showcase that it captures some of these dimensions, it is important to recognize that the mining industry operates within a complex regulatory and operational landscape. Compliance with environmental regulations, responsible resource management, and maintaining a social license to operate are critical considerations that go beyond the traditional boundaries of CSR. Therefore, while government ESG Statistics India provides a picture that the ESG is a broader framework that encompasses CSR, employees' well-being, and corporate governance, it is crucial to adapt and tailor its implementation to the specific challenges and context of the mining industry in India.

MS: Through your experience, please shed light on the evolution of CSR laws in India. How companies have embedded it in their framework

LP: Essentially, I have witnessed the evolution of CSR laws in the country and how companies have embedded them within their frameworks. The concept of CSR in India has undergone significant changes in recent years, primarily driven by legislative developments and growing societal expectations.

In 2013, India became one of the first countries to introduce a mandatory CSR law. The Companies Act, 2013 made it mandatory for companies meeting specific financial thresholds to allocate a certain percentage of their profits towards CSR activities. This legal requirement has played a crucial role in promoting CSR practices across various industries, including the mining sector. Since the introduction of the CSR law, companies in India have embedded CSR in their frameworks by establishing dedicated CSR departments or divisions responsible for implementing and overseeing CSR initiatives. These departments work closely with other functions such as sustainability, community relations, and environmental management to align CSR strategies with the company's core objectives. They have recognized the importance of addressing social and environmental challenges while creating long-term value for their stakeholders. One significant shift observed is the move from ad hoc philanthropy towards strategic and sustainable CSR practices. Companies now undertake comprehensive needs assessments and stakeholder consultations to identify priority areas and develop focused CSR programs that address the specific needs of communities and regions affected by their operations.

Collaboration and partnerships have also gained prominence in the implementation of CSR initiatives. Mining companies in India have actively engaged with local communities, NGOs, government agencies, and other stakeholders to jointly design and implement projects that deliver sustainable outcomes. These partnerships not only enhance the effectiveness and impact of CSR programs but also foster trust and mutual understanding. Furthermore, companies have integrated CSR into their reporting and disclosure mechanisms. Annual CSR reports have become a common practice, providing transparency and accountability to stakeholders. These reports highlight the company's CSR initiatives, progress, and outcomes, showcasing the commitment towards responsible and sustainable practices.

The evolution of CSR laws in India has propelled companies, including multinational mining firms, to embed CSR within their frameworks. They have embraced strategic and sustainable CSR practices, established dedicated departments, engaged in collaborations, and improved reporting mechanisms. This holistic approach demonstrates the commitment of companies towards responsible mining industry in India operations and the well-being of local communities and the environment.

MS: According to you, why in the recent past, there has been a focus on ESG amongst corporates? How is India doing in the sphere of ESG?

LP: Incorporating ESG into corporate strategies helps build trust, enhance reputation, and maintain a social license to operate. In the recent past, there has been a growing focus on ESG (Environmental, Social, and Governance) among corporates due to several factors that I would like to share with Indiastat…

Investor Demand: Investors are increasingly recognizing the importance of sustainable investing and are integrating ESG considerations into their investment decisions. They understand that companies with strong ESG performance are more likely to be resilient, attract capital, and generate long-term value.

Risk Management: ESG statistics of India show that factors related to it are closely linked to risk management. Companies that effectively manage environmental and social risks, such as climate change, resource scarcity, labor issues, and reputation risks, are better equipped to navigate potential disruptions and safeguard their business continuity.

Regulatory Landscape: Governments and regulatory bodies in various countries are implementing or considering regulations that require companies to disclose government as ell as private ESG Statistics India-related information.

Stakeholder Expectations: Customers, employees, communities, and other stakeholders are increasingly demanding transparency, ethical practices, and a positive social and environmental impact from companies.

Now, turning to India's performance in the sphere of ESG, the country has made notable progress, but there are both challenges and opportunities:

The Challenges:

Limited Awareness: Despite growing awareness, there is still a need for increased understanding and awareness of ESG among Indian corporates. Many companies are yet to fully grasp the potential benefits of integrating ESG into their business practices.

Data Availability and Quality: Availability and reliability of ESG statistics of India remain a challenge in India. Accurate and standardized ESG data (whether government ESG Statistics India or private or done by non-profit organisational surveys) is crucial for investors, analysts, and stakeholders to evaluate companies' performance and compare them across industries.

Implementation Gap: While there is recognition of ESG importance, implementation remains a challenge. Some companies struggle to effectively translate ESG commitments into tangible actions, which require a strategic approach and dedicated resources.

The Opportunities:

Regulatory Framework: India has introduced several initiatives to promote ESG practices. The Securities and Exchange Board of India (SEBI) has made it mandatory for the top 1,000 listed companies to disclose their annual Business Responsibility & Sustainability Reports (BRSR), which include ESG statistics of India and its information. Such regulations encourage companies to integrate ESG considerations into their decision-making.

Sustainability-driven Growth: India's commitment to sustainable development, reflected in initiatives such as the Sustainable Development Goals (SDGs), presents opportunities for businesses to align their strategies with national priorities. Companies that proactively embrace ESG practices can position themselves for sustainable growth and competitive advantage.

Investor Interest: Indian companies that demonstrate strong ESG performance have the potential to attract both domestic and international investors. As more investors incorporate ESG factors into their decision-making, companies with robust ESG practices can access capital on favourable terms and potentially achieve a valuation premium.

Innovation and Technology: ESG challenges present opportunities for innovation and technology adoption. Companies can explore and develop sustainable solutions that address environmental and social issues while also driving operational efficiency and cost savings.

While India has made progress in the sphere of ESG, there are challenges related to awareness, data availability, and implementation. However, the country also presents significant opportunities through regulatory frameworks, sustainability-driven growth, investor interest, and the potential for innovation and technology adoption.

MS: Merely 27% of Indian organisations feel adequately equipped to meet their ESG (Environmental, Sustainability, and Governance)) strategy and compliance requirements and only 15% believe their suppliers to be prepared to comply with the organisations’ ESG requirements, reveals Deloitte India’s ESG preparedness survey. What measures do you believe are necessary to enhance collaboration between the government, private sector, and civil society organizations to boost this shaky confidence and better adaptability?

LP: To boost confidence and adaptability in meeting ESG requirements, it's important to enhance collaboration between the government, private sector, and civil society organizations. I would like to share some measures in detail that can be considered….

First, the government can strengthen policy frameworks by providing clarity on ESG requirements, reporting standards, and compliance measures. It's crucial to involve industry stakeholders and civil society organizations in the policy formulation process to ensure diverse perspectives are considered.

Promoting public-private partnerships is another effective step. By collaborating through these partnerships, the government and the private sector can jointly implement ESG initiatives, which benefits both parties. This approach allows them to leverage their expertise and resources to address sustainability challenges and enhance ESG preparedness.

Raising awareness and education on ESG practices is vital. The government, private sector, and civil society organizations can work together to develop training programs, workshops, and knowledge-sharing platforms. These initiatives help disseminate information about ESG statistics of India - its concepts, implementation strategies, and best practices.

Encouraging industry coalitions and alliances can foster collective action and knowledge exchange. By facilitating the formation of industry-specific groups, companies can learn from each other, share experiences, and collaborate on ESG initiatives. This accelerates the adoption of sustainable practices.

Improving data availability and standardization is a crucial aspect. The government can collaborate with industry associations and regulators to establish standardized reporting frameworks, promote data transparency, and ensure reliable ESG data is available. This enables better assessment of ESG performance and informed decision-making.

To incentivize ESG practices, governments can provide benefits such as tax incentives or grants to companies that demonstrate strong ESG performance. Such measures encourage private sector organizations to invest in sustainable practices and promote responsible business conduct.

Creating platforms for multi-stakeholder dialogues involving the government, private sector, and civil society organizations is essential. These dialogues foster collaboration, knowledge sharing, and problem-solving. They focus on addressing challenges, identifying common goals, and developing collaborative strategies to enhance ESG preparedness.

Encouraging supplier engagement is also crucial. Companies should actively collaborate with their suppliers to improve ESG compliance throughout the supply chain. The government can incentivize such engagements by promoting supplier sustainability programs and incorporating ESG requirements into procurement policies.

By implementing these measures, collaboration among the government, private sector, and civil society organizations can be enhanced. Together, diverse stakeholders can drive sustainable development in India and effectively address environmental and social challenges.

MS: India has put a lot of work into establishing robust plans and activities that are in line to accomplish sustainable growth over the past year to stand out at the top in terms of its ESG commitment. But what stringent steps and policies would it actually take to walk the talk in a better and sustained manner towards it NET ZERO MISSION?

LP: To effectively walk the talk and progress towards its net-zero mission, India would need to implement stringent steps and policies across various sectors. There are some key measures that can be considered…

Transitioning to renewable energy sources in India is crucial to achieve net-zero emissions. We need to invest in solar and wind power infrastructure and set ambitious targets for renewable energy capacity. It's also important to incentivize and promote the adoption of renewable energy in sectors like transportation and industry.

We can make a big impact by implementing energy efficiency measures across different sectors. Strengthening energy efficiency standards, promoting energy-efficient technologies and practices, and encouraging energy conservation initiatives will help reduce greenhouse gas emissions.

Developing low-carbon transport systems should be a priority. This means investing in electric vehicle infrastructure, offering incentives and subsidies to promote electric vehicle adoption, and improving public transportation. We should also encourage non-motorized modes of transport like cycling and walking.

Addressing emissions from urban areas is critical. We should focus on sustainable urban planning, promote green building standards, and invest in efficient public transportation and renewable energy systems.

Industries need to adopt cleaner technologies and practices. Policies promoting energy-efficient manufacturing, incentivizing low-carbon technologies, and supporting clean industrial processes are necessary to reduce emissions from the industrial sector.

Protecting and restoring forests is important for sequestering carbon dioxide. We should strengthen forest conservation efforts, promote sustainable forestry practices, and undertake large-scale reforestation programs.

Promoting a circular economy approach can help reduce waste generation and emissions. Encouraging waste reduction, recycling, and waste-to-energy projects will minimize emissions from waste management and contribute to a more sustainable economy.

We need a strong policy and regulatory framework to enforce emissions reductions and promote sustainable practices. This includes setting ambitious emission reduction targets, implementing carbon pricing mechanisms, providing financial incentives for sustainable projects, and improving monitoring and reporting.

International collaboration is key. By working with international partners, sharing best practices, and accessing climate finance, we can support India's net-zero mission. Active participation in global initiatives and climate negotiations aligns our efforts with global sustainability goals.

Implementing these steps and policies will make significant progress towards India's net-zero mission. However, it's important to remember that achieving net-zero emissions requires a coordinated effort involving the government, private sector, civil society, and citizens. We must continuously monitor progress, reassess policies, and remain committed to sustainability for long-term success.

MS: Jobs related to the environmental, social, and governance (ESG) sector have grown by over 223% in India between April 2019 to April 2023. How can India better leverage this opportunity to give a sustained boost to job creation in this sector?

LP: To tap into the increasing opportunities in the ESG sector and boost job creation in India, we can employ several strategies:

First, we should focus on skill development and training. By implementing targeted programs, we can equip the workforce with the knowledge and expertise needed in ESG-related areas like renewable energy sources in India, sustainable agriculture, green finance, and environmental management. Collaborating with educational institutions and industry stakeholders will help us align these programs with the needs of the industry.

Next, let's promote entrepreneurship and innovation in the ESG sector. By offering support and incentives to aspiring entrepreneurs and startups in the green and social impact space, we can encourage innovation, create new business opportunities, and generate employment. Incubation programs, funding schemes, and mentorship support can play a crucial role in this.

We should also foster public-private partnerships. By collaborating with the government, the private sector can be encouraged to invest in the ESG sector. The government can provide incentives, subsidies, and tax breaks to companies operating in this space. Such partnerships can help develop and implement large-scale ESG projects that require both government support and private sector expertise.

Investing in sustainable infrastructure projects is another key strategy. Developing renewable energy installations, eco-friendly transportation systems, waste management facilities, and sustainable urban infrastructure will create a demand for skilled workers and professionals in the ESG sector. Government policies and incentives can encourage private sector participation in these projects.

Encouraging companies across sectors to integrate ESG considerations into their operations is important as well. The government can incentivize and recognize companies that adopt sustainable practices and create ESG-focused roles within their organizations. This can include hiring sustainability managers or establishing ESG teams.

We should also focus on strengthening ESG reporting and disclosure requirements. By mandating companies to report on their ESG performance and providing guidelines on reporting standards, the demand for professionals in areas such as sustainability reporting, data analysis, and ESG statistics of India-related consultancy will increase, leading to more job opportunities.

Raising awareness about the potential career opportunities in the ESG sector and creating supportive networks is crucial. Engaging with educational institutions, organizing workshops, and establishing industry associations or networks can foster knowledge-sharing, mentorship, and job placement assistance in the sector.

By implementing these strategies, India can seize the growing opportunities in the ESG sector and create a sustainable and inclusive job market. A proactive approach that involves government support, private sector engagement, and skilled workforce development is essential to unlock the full potential of ESG-related job creation in the country.

MS: From your experience, what are the major hurdles in implementing sustainable development projects in India? How can these challenges be overcome to achieve long-term socio-economic benefits?

LP: In my experience, there are a few major hurdles when it comes to implementing sustainable development projects in India. Let's break them down…

First, there's a lack of awareness and education among the general population. Not everyone understands what sustainable development is all about, which can make it difficult to get projects off the ground. We need to invest in awareness campaigns and educational programs to build a culture of sustainability and make sure people have the knowledge they need.

Then there's the issue of financing and funding. Sustainable development in India requires a lot of money upfront and has a long payback period. This can make them less attractive to investors. To tackle this challenge, we need to come up with innovative financing models like impact investing, green bonds, and public-private partnerships. These can help mobilize the necessary resources for sustainable projects.

Another hurdle is the policy and regulatory framework. Sometimes the rules and regulations surrounding sustainable development in India are inconsistent or inadequate. This can create barriers to implementation. To overcome this, we need to streamline regulations, provide clear guidelines, and offer financial incentives. This will encourage the adoption of sustainable practices and make it easier to get projects off the ground.

Infrastructure and technology also play a role. Sometimes there's a lack of adequate infrastructure and technological capabilities, which can hinder project implementation. We can overcome this challenge by upgrading infrastructure, investing in research and development, and promoting technology transfer. These steps will create enabling environment datasets of India for consistent sustainable projects.

Stakeholder engagement and participation are crucial too. It's important to involve local communities, stakeholders, and affected populations in the decision-making process. If they feel left out or their concerns need to be taken into account, there can be resistance and delays. To address this, we need transparent and inclusive decision-making processes, where local knowledge and perspectives are incorporated, and community engagement is fostered.

Lastly, building institutional capacity is vital for effective project implementation. Government agencies, NGOs, and local authorities all need to have the necessary skills and knowledge. We can strengthen institutions through training, knowledge sharing, and capacity-building programs. This will enhance their ability to plan, implement, and monitor sustainable development in India.

To overcome these challenges and achieve long-term socio-economic benefits, we can consider the following strategies:

First, foster collaboration and partnerships among government entities, private sector organizations, civil society, and communities. By working together and leveraging collective expertise, resources, and networks, sustainable development projects can benefit from shared knowledge, increased efficiency, and greater impact.

Second, integrate sustainable development goals into national and regional development plans. It's important to align policies across sectors to create synergies and avoid conflicts. By mainstreaming sustainability considerations into decision-making processes, we can ensure long-term socio-economic benefits.

Third, invest in capacity development programs to enhance the skills and knowledge of individuals and institutions involved in sustainable development projects. This includes training on sustainable practices, project management, monitoring and evaluation, and stakeholder engagement.

Fourth, establish platforms for knowledge sharing, learning, and best practice exchange. This can involve creating networks, organizing conferences, and facilitating peer-to-peer learning opportunities. By sharing success stories and lessons learned, we can inform future project implementation.

Lastly, implement robust monitoring and evaluation frameworks to track the progress and impact of sustainable development projects. This allows for adaptive management, identifies areas of improvement, and ensures accountability and transparency.

Ultimately, developing a long-term vision and commitment to sustainable development is crucial. This includes setting ambitious targets, creating policy continuity, and fostering a culture that values sustainability. Political will and commitment are essential for driving change and achieving long-term socio-economic benefits.

By addressing these challenges and implementing these strategies, India can overcome hurdles in sustainable development project implementation and pave the way for a more sustainable and inclusive future.

MS: How do you read into the recent visit of the Prime Minister to the US in June 2023? What boost can the India-US ties bring in for India's Net Zero Targets Mission? What's your analysis and future vision of the same?

LP: Historically, India-US ties have played a significant role in shaping various aspects of bilateral cooperation, including climate change and sustainability. Cooperation between India and the US in the realm of sustainable development, clean energy, and climate change has the potential to contribute to India's Net Zero Targets Mission in several ways that I am sharing now…

Technology and Innovation Exchange: When India and the US collaborate, it creates an opportunity to share technology, best practices, and innovative solutions. The way recently happened when PM Modi visited the United States in May 2023. So if India and the US collaborate in this sector as well, then this can be particularly useful in areas like renewable energy sources in India, energy efficiency, and sustainable infrastructure. By learning from each other, we can make great strides in tackling climate change.

Financial and Technical Support: Strengthening ties between India and the US can bring more financial and technical support to sustainable development in India. The US can provide resources and expertise to help India implement clean energy initiatives, sustainable urban development, and other projects aligned with its Net Zero Targets Mission.

Policy Alignment and Partnership: By working together, India and the US can align their policies and launch joint initiatives to address climate change. This means setting common goals, sharing experiences, and coordinating efforts. It's all about pooling our strengths to achieve our shared objectives, including India's net-zero aspirations.

Research and Development Collaboration: Collaboration in research and development between Indian and US institutions is crucial. By joining forces, we can drive innovation and find solutions for sustainable development challenges. Areas like renewable energy, climate modeling, sustainable agriculture, and climate resilience are ripe for collaboration.

International Influence and Cooperation: When India and the US strengthen their ties, it boosts India's influence in global climate change negotiations and international forums. Together, we can advocate for ambitious climate action, rally support from other countries, and create global momentum toward achieving net-zero emissions.

In short, India can make great progress in achieving its ambitious net-zero goals. This not only benefits India but also contributes to global efforts to combat climate change and build a sustainable future.

MS: The last question is for our University Level student readers: What kind of skills and courses are needed for youngsters to look forward to a flourishing career in ESG-related CSR? And what additional soft skills and AI skills would they need in the future to stay ahead in the race?

LP: If you're aiming for a successful career in ESG-related CSR, there are a few things you should focus on. It's all about finding the right balance between technical skills, domain knowledge, and soft skills, and keeping up with emerging trends, including circular economy concepts. Let me break it down for you:

First, make sure you have a solid grasp of environmental and social sustainability principles. That means understanding the climate change dataset India, biodiversity conservation, social impact assessment, and sustainable development goals (SDGs). Take courses in environmental science, sustainable development, social sciences, and sustainability management to build a strong foundation.

Next, get familiar with CSR frameworks, reporting standards, and ESG metrics. Knowing about CSR strategies, ESG reporting (like BRSR), and sustainability reporting frameworks (such as GRI and SASB) will be invaluable.

You'll also need skills in impact assessment and evaluation. Courses on methodologies for assessing impacts, stakeholder engagement, and social return on investment (SROI) analysis will help you become an expert in evaluating the social and environmental effects of business activities.

Understanding sustainable finance and investing is essential too. Look for courses on sustainable finance, impact investing, and green investment analysis to learn how financing sustainable projects works and the financial side of ESG (for government ESG Statistics India, and more).

Being able to analyze and report data is crucial. Develop your data analysis skills, including both quantitative and qualitative analysis. Proficiency in tools like Microsoft Excel, data visualization software, and statistical analysis software will give you an edge.

Don't forget about stakeholder engagement and communication. Effective communication and building relationships with diverse stakeholders are vital in the ESG field. Take courses that focus on communication, negotiation, and teamwork to develop these skills.

It's also important to have knowledge of ethical leadership principles and corporate governance practices. Look for courses on business ethics, responsible leadership, and corporate governance to establish a strong foundation for ESG-related roles.

On top of these technical skills, there are certain soft skills and AI skills that can contribute to your success in ESG-related CSR. Soft skills like critical thinking, problem-solving, adaptability, collaboration, communication, leadership, and project management are highly valued.

In the era of AI, it's also beneficial to be familiar with AI technologies and their potential applications in sustainability and ESG. Understand AI ethics, responsible AI practices, and data privacy. Being able to leverage AI tools and platforms for data analysis, predictive modeling, and automation can give you an extra advantage.

Remember, the ESG field is ever-evolving, so continuous learning and staying updated on emerging trends, policies, and industry practices is crucial. Engage in networking events, internships, and industry-specific certifications to gain valuable exposure and enhance your career prospects in this field.

About Dr. Lopamudra Priyadarshini

Dr. Lopamudra Priyadarshini is a highly accomplished professional with 28+ years of experience in Corporate Sustainability, ESG, and CSR. She possesses a deep understanding of CSR laws in India and has expertise in government affairs, policy formulation, project management, risk management, corporate leadership, and communications. With a strong focus on ESG strategy, she develops comprehensive approaches that align with Environmental, Social, and Governance Principles. Dr. Lopamudra is committed to achieving net-zero goals and implementing sustainable practices. Her work encompasses driving compliance with CSR Regulations, Spearheading ESG Initiatives, and fostering a conducive environment for businesses to thrive while contributing positively to society.

About the Interviewer

Mahima Sharma is a Senior Journalist based in Delhi NCR. She has been in the field of TV, Print & Online Journalism since 2005 and previously an additional three years in the allied media. In her span of work she has been associated with CNN-News18, ANI - Asian News International (A collaboration with Reuters), Voice of India, Hindustan Times and various other top media brands of their times. In recent times, she has diversified her work as a Digital Media Marketing Consultant & Content Strategist as well. Since March 2022, she is also an Entrepreneurship Education Mentor at Women Will - An Entrepreneurship Program by Google in Collaboration with SHEROES. Mahima can be reached at media@indiastat.com

Disclaimer : The opinions expressed within this interview are the personal opinions of the interviewed protagonist. The facts & statistics, the work profile details of the protagonist and the opinions appearing in the answers do not reflect the views of Indiastat or the Journalist. Indiastat or the Journalist do not hold any responsibility or liability for the same.