By Apalka Bareja Aishwarya Rajput & Ritvik Kashyap
Introduction
In today’s business landscape, success is no longer measured only by profits and market share. Stakeholders ranging from investors to consumers are increasingly evaluating how responsibly companies operate, which is why the ESG (Environmental, Social, Governance) framework has become central to business strategy. Globally, more than 2,000 companies have set net-zero targets through the Science Based Targets initiative[1], while in India, leading firms such as Dabur, Infosys, and JSW Steel have announced ambitious goals and reported measurable progress in reducing emissions and conserving resources[2]. At the same time, consumer preferences are shifting surveys show that Indian buyers are increasingly choosing eco-friendly products and are even willing to pay a premium for them[3]. This growing alignment of investor expectations, regulatory pressure, and consumer demand underscores why environmental responsibility is no longer optional, but a defining factor in long-term competitiveness and resilience.
What Does the Environmental aspect of ESG cover?
The Environmental pillar (“E”) of ESG evaluates how businesses interact with the natural environment and the steps they take to minimize harm. It covers a wide range of issues, such as:
- Climate change and carbon footprint – reducing greenhouse gas emissions, transitioning to cleaner energy, and setting net-zero goals.
- Energy use and renewables – improving efficiency in energy consumption and adopting renewable energy solutions.
- Water management – conserving freshwater resources, recycling wastewater, and implementing water-positive initiatives.
- Pollution control – reducing harmful emissions into air, water, and soil, while ensuring safe disposal of hazardous substances.
- Waste reduction and circular economy – focusing on recycling, reuse, and moving towards closed-loop production systems.
- Biodiversity and ecosystems – protecting natural habitats, restoring degraded ecosystems, and sourcing materials responsibly.
- Sustainable sourcing and resource use – ensuring that supply chains rely on eco-friendly, ethical, and long-term resource management.
- Climate and environmental risks – preparing businesses to withstand disruptions from extreme weather, scarcity of resources, and other ecological risks.
Together, these areas provide a framework for measuring how businesses contribute to protecting the planet while maintaining sustainable growth.
Case Studies of Environmental ESG Compliance
Here are several Indian companies who are making strides in environmental sustainability—integrating it into their strategies with measurable results:
- Dabur – Swimming Ahead of the National Tide
Dabur has embedded sustainability deep into its business DNA. The company has set ambitious environmental goals, including achieving net-zero carbon emissions by 2045, a full 25 years ahead of India’s national 2070 target. It has already achieved a 19% reduction in Scope 1 emissions[4] and sources 61% of its total energy from renewables, surpassing its 2026 target early. Beyond climate commitments, Dabur also aims to become water positive[5] by 2030, reflecting its recognition of the water-intensive nature of nearly 20% of its operations.[6] Importantly, it has adopted a pragmatic approach by combining leadership-endorsed sustainability with digital tools and inclusive product strategies that make eco-friendly options accessible across price ranges.[7] - JSW Steel – Green Innovation in Carbon-Intensive Industry
JSW Steel is transforming its traditionally high-emission industry through innovative practices. The company has introduced electric arc furnaces, integrated energy recovery systems, and implemented water recycling initiatives to reduce its environmental footprint significantly. It also ensures transparency by engaging third-party verification of its sustainability disclosures, aligning its operations with global ESG standards.[8]
- Gujarat’s Corporate Surge in Environmental CSR
On a state-wide level, companies in Gujarat nearly doubled their environmental CSR spending in FY 2023–24. From ₹221 crore to ₹419.6 crore, these investments focused on environmental rehabilitation projects like Miyawaki afforestation, green belt development, and water reuse efforts across industrial zones like Sanand and Jamnagar. This surge underscores a broader shift toward strategic environmental investment, driven by investor scrutiny and climate urgency.[9] - Infosys – A Pioneer in Corporate Climate Action
Infosys stands as one of India’s earliest and most consistent leaders in climate action. The company became carbon neutral in 2020, three decades ahead of the Paris Agreement timeline. It has achieved nearly a 70% reduction in Scope 1 and Scope 2 emissions[10] compared to its 2008 baseline and sources over 55% of its electricity from renewables. Infosys has committed to maintaining carbon neutrality annually through 2029 and achieving climate positivity by 2030, with targets to reduce Scope 1 & 2 emissions by 90% and Scope 3 emissions[11] by 40% from a 2020 baseline.[12]
National Impact
A BCG–CO₂ AI survey[13] revealed that nearly 24% of Indian companies have already set emission-reduction targets well above the global average of 16% and 15% are actively reducing emissions, compared to just 11% globally. This shows that Indian companies are not only keeping pace with international peers but, in many cases, surpassing them.
Conclusion
The Environmental pillar of ESG is no longer a matter of choice but a necessity for businesses striving to remain relevant in today’s rapidly changing global economy. By addressing pressing issues such as climate change, resource efficiency, pollution control, and biodiversity conservation, companies not only comply with regulatory requirements but also build long-term resilience and stakeholder trust. The case studies of leading Indian companies like Infosys, Tata Group, and Mahindra Group clearly illustrate how integrating sustainability into core strategies enhances competitiveness, strengthens brand value, and contributes to inclusive growth. Going forward, organizations that embrace environmental responsibility as a core business practice will be better positioned to thrive in a marketplace that increasingly rewards sustainability and accountability.
[1] https://sciencebasedtargets.org/target-dashboard
[4] Direct emissions from a company’s owned or controlled sources (e.g., fuel combustion in factories, company vehicles)
[5] an entity actively contributes more to water sustainability than it consumes, by replenishing and restoring water resources beyond what it takes
[6] https://www.dabur.com/digital-annual-reports/integrated-reports/natural-capital.php
[8] https://www.jswsteel.in/sustainability-initiatives-how-jsw-steel-reducing-environmental-impact
[10] Indirect emissions from purchased energy (e.g., electricity, steam, heating, or cooling).
[11] All other indirect emissions across the value chain (e.g., suppliers, logistics, customer product use).
[12] https://www.infosys.com/sustainability/documents/infosys-esg-report-2024-25.pdf