Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

Today, the business landscape is evolving rapidly across the globe! And integrating technology into Environmental, Social, and Governance (ESG) practices is not just a fad. It is a fundamental shift if the aim is to achieve net-zero goals. Regulatory push and the evolving global standards are also driving investments into tech-enabled ESG solutions. Growing demand for transparency and accountability from investors and customers has strengthened the adaptation. The ‘<a href="https://www.oracle.com/a/ocom/docs/applications/esg-study-no-planet-b-report.pdf">2022 ESG Global Study</a>’ by Oracle, which involved over 11,000 participants from 15 countries, shows that 89% of business leaders believe that companies using tech for sustainability are more likely to succeed. A whopping 93% of these leaders acknowledge technology's crucial role in enhancing corporate sustainability and 94% advocate the use of technology in ensuring data accuracy, automating data collection across sectors, planning and revising sustainability targets based on performance, and automating report generation. <cmsannotation type="cmsannotation" annotationid="From 'Why' to 'How': Technology's Impact on ESG Implementation" comment="subhead" text="From 'Why' to 'How': Technology's Impact on ESG Implementation">From 'Why' to 'How': Technology's Impact on ESG Implementation</cmsannotation> The journey of technology within ESG commenced with recognising its importance, the 'why'. As sustainability challenges grew, the focus shifted towards understanding the 'how.' Beyond just enhancing data accuracy and scalability, technology is now instrumental in refining business models and boosting long-term revenues, thereby improving the bottom line. As the ESG landscape evolves, challenges emerge, including diverse ESG Key Performance Indicators mandated by rating agencies and the lack of standardization across regulatory frameworks. Consequently, companies face difficulties in achieving transparency and standardisation in ESG data. Moreover, there's an urgent need for sustainable operational solutions, like robust emissions monitoring, insightful benchmarking, and effective performance management. To address these challenges, a range of technologies are emerging as the key enablers. Cutting-edge AI-driven tools accurately collect and analyze extensive data from a variety of sources, including financial reports, operational data, supply chain insights, and social media. This holistic approach empowers companies to present precise and comprehensive information on ESG parameters. Furthermore, Natural Language Processing (NLP) technology plays a crucial role wherein AI-powered NLP analyse text-based data extracted from corporate sustainability reports and stakeholder communications, identifying patterns, sentiments, and other vital information. This further ensures that sustainability disclosures are aligned with stakeholder interests. This shift is more than a functional enhancement; it represents a transformative movement where sustainability is seamlessly integrated into business operations, thus simplifying the complex ESG landscape. <cmsannotation type="cmsannotation" annotationid="Tech revolutionizing the three pillars of ESG" comment="subhead" text="Tech revolutionizing the three pillars of ESG">Tech revolutionizing the three pillars of ESG</cmsannotation> Technology plays a pivotal role across the ESG aspects of sustainability, evident through its application in various sectors. <h4>Leveraging technology for environmental stewardship</h4> AI technology revolutionizes environmental conservation by optimizing operations in solar and wind farms, boosting their efficiency and productivity. This involves using advanced algorithms to analyze and predict energy generation, enabling better resource management. AI-driven tools also monitor solar panels and wind turbines, ensuring they operate optimally and enhancing their longevity. Additionally, leading companies across industries are driving environmental conservation through energy-efficient designs and sustainable supply chain management. AI integration in building management systems enhances energy efficiency, fostering healthier, sustainable living spaces. In the banking and finance industry, AI-based software integrates geospatial data into financial theories for site evaluations and climate risk analysis. Employing machine learning it evaluates the potential effects of funded projects on ESG factors, ensuring conscious decision-making. <h4>Empowering communities through technology</h4> Technology acts as a bridge, fostering inclusivity within society. AI-driven healthcare platforms extend medical services to remote areas, addressing social inequalities. In the agriculture sector, Web3 companies are using blockchain technology to connect farmers and corporations, facilitating sustainable agriculture and carbon offsetting. These initiatives enable the generation and sale of verifiable carbon credits, encouraging farmers to adopt sustainable farming practices supported by corporate funding. This collaboration helps meet the ESG targets of the corporations while fostering sustainable agriculture, benefiting both the environment and society. <h4>Technology enhancing industry integrity and ethical governance</h4> Blockchain technology offers a powerful solution for traceability in various industries, particularly in sectors where authenticity, transparency, and ethical practices hold significant value. One prime example is the diamond industry, where the application of blockchain ensures a robust system for tracing the origins of diamonds, safeguarding against the trade of conflict diamonds. This not only aligns with the core principles of ESG but also promotes transparency and supports global efforts in ethical trading. Such technological advancements reinforce social responsibility and ethical governance within industries, illustrating the integral role of technology in enhancing governance standards. Blockchain brings a new level of integrity to corporate reporting, making it easier to track and verify compliance with sustainability standards. <cmsannotation type="cmsannotation" annotationid="Unfolding technology’s role as ESG continues to evolve" comment="subhead" text="Unfolding technology’s role as ESG continues to evolve">Unfolding technology’s role as ESG continues to evolve</cmsannotation> The integration of technology in ESG practices is currently in a nascent stage, with its full potential yet to be tapped. Technologies such as AI, blockchain and IoT will continue to refine ESG management significantly. AI will provide more accurate and unbiased analyses, while blockchain will enhance transparency and immutability in supply chains. IoT will be pivotal in enabling real-time environmental monitoring, empowering businesses to act swiftly on sustainability metrics. Numerous small-scale companies and startups are pioneering tech-enabled ESG solutions. These initial efforts are key in setting the stage for broader and more impactful applications in future. Companies that adopt and innovate with these emerging technologies will stay ahead of the growth curve, reaping the benefits of enhanced ESG strategies and contributing to a sustainable future. By embracing and advancing these technological solutions, companies can shape a more sustainable, equitable world, ensuring they remain at the forefront of the evolving business landscape. Shailesh Tyagi is Partner, Sustainability and Climate Leader, at Consulting Deloitte South Asia! Disclaimer: The opinions expressed are of the author/interviewee and do not necessarily reflect the views of Business Insider India. The article has been partly edited for length and clarity.

OPINION: Surge of tech-enabled solutions in ESG — unlocking the why, where, and what's next

Today, India’s dedicated “Green Finance” sector is still at a nascent stage. An ongoing study by the Climate Policy Initiative (CPI) finds that India could only mobilise around $18 billion in climate investments in 2018 compared to the annual requirement of $160 billion. Therefore, India needs to mobilise at least nine times its current rate to achieve Net Zero by 2070. The silver lining is that India is undergoing a paradigm shift where Green finance is a critical enabler in achieving the country’s ambitious decarbonisation goals. Green finance, while still nascent in India, has the potential to become a major driver of India's Mission 2070. Adding to this strive, the government must develop a comprehensive legislative and regulatory framework, as well as substantial financial backing from domestic and foreign sources. <h3 style="line-height:1.295;text-align: justify;margin-top:2pt;margin-bottom:0pt;"><cmsannotation type="cmsannotation" annotationid="Green bonds to pursue sustainable financing" comment="subhead" text="Green bonds to pursue sustainable financing">Green bonds to pursue sustainable financing</cmsannotation></h3> The CEEW-CEF estimated India will need to invest $10.103 trillion by 2070 to be carbon-neutral. About $8.412 trillion will be required to transition India's coal-reliant power sector towards renewable energy sources. Another $1.494 trillion will be needed to develop carbon capture and storage and green hydrogen technology. The raised ambitions and new goals for tackling climate change could all be in vain if we fail to provide adequate climate finance support at the right time. India will also need to invest heavily in climate-responsible investments in R&amp;D and develop indigenous futuristic technology so that it can align itself to Atma-Nirbhar Bharat and break away from the ‘technological transfer’ paradigm from developed countries, which may also take time and may involve aspects of geopolitics. Overall, India must recognise that it needs a long-term ‘climate investment framework’ that combines different sources of finance in order to fulfil all its ambitions on time. To materialise green bonds is one of the prime ways to achieve this. Fortunately, the growth of the issuance of green bonds has also increased in India. As per EY’s analysis, the growth in the Green Bond market showed a sudden boom from the middle of the financial year 2021. Several clients have started with their green issuance process in India. Several International clients are also invested in Green Bonds issued by India. Green bonds issued by emerging markets such as India appeal to foreign investors due to relatively attractive valuation and decent economic growth prospects. <h3 style="line-height:1.295;text-align: justify;margin-top:2pt;margin-bottom:0pt;"><cmsannotation type="cmsannotation" annotationid="Can Green Economy address the challenges of the 21st century?" comment="subhead" text="Can Green Economy address the challenges of the 21st century?">Can Green Economy address the challenges of the 21st century?</cmsannotation></h3>The concept of the green economy has gained momentum in recent times. To a large extent, this is because it actually tries to act as a response to several crises mankind is facing, including climate change and food and economic crises. It offers an alternative paradigm that promises growth while protecting the earth’s ecosystems and, in turn, contributing to poverty alleviation. In this sense, the transition to a green economy will entail moving away from the system that allowed, and at times generated, these crises to a system that proactively addresses and prevents them. Therefore, a green economy can be the only way forward from this decade onwards. <cmsannotation type="cmsannotation" annotationid="What’s the way forward?" comment="subhead" text="What’s the way forward?">What’s the way forward?</cmsannotation> India’s issuance of green bonds remained significantly low till 2020 since the inception of the first green bonds by Yes Bank in 2015. India saw a boost in Green Bond in 2021. As per information from U.K.-based green bond tracking agency Climate Bonds Initiative, India issued $6.11 billion in green bonds during the first 11 months of 2021. In this financial year, India is planning to issue at least Rs 24,000 crore ($3.3 billion) in sovereign green bonds as the country marks a shift towards a low-carbon economy. Therefore, Green finance options are quickly becoming the preferred investment mechanism for the private and governmental sectors to fund projects that benefit the environment, such as sustainable energy, low-carbon transportation, and energy-efficient buildings. For foreign investors, markets such as India appeal due to their relatively attractive valuation and decent economic growth prospects. More issuers from India could infiltrate the offshore market where there is a deeper and wider pool of climate-conscious investors. This model will only be fruitful when there is a level of assurance. Consulting firms like EY India have started to conduct such bond assurances in India using their extensive global experience. Investors, regulators and, more broadly, society, increasingly demand greater transparency around the impact created by the organisations through green financing to assess their true long-term value. Many banks like Bank of USA and Commonwealth Bank of Australia are disclosing their green financing portfolio. In India, Axis Bank published a Green Bond impact report till 2021. The future appears green for India, and hopefully, we all can collectively finance this journey towards a better tomorrow. Shailesh Tyagi is a Partner, Climate Change and Sustainability Services, at EY India. Disclaimer: The opinions expressed are of the author/interviewee and do not necessarily reflect the views of Business Insider India. The article has been partly edited for length and clarity. This column is part of June 2022’s month-long awareness campaign on the theme “Only One Earth: Sustaining People, Planet and Prosperity” by <a href="https://www.businessinsider.in/sustainability">Business Insider India’s Sustainability Insider</a>.

OPINION: India will likely witness a boom in the green economy and green finance! Are we prepared?

Shailesh Tyagi

Latest Stories from Shailesh Tyagi

OPINION: Surge of tech-enabled solutions in ESG — unlocking the why, where, and what's next

Shailesh Tyagi

OPINION: India will likely witness a boom in the green economy and green finance! Are we prepared?

Shailesh Tyagi

Popular Keywords

Buying Guides