The Importance of Sustainability in Business Transformation
Business transformation is not solely focused on
generating profit; it encompasses the triple bottom line of planet, people, and
profit. Sustainability is a key element in business transformation programs,
driving companies to prioritize the well-being of the environment, society, and
their financial success. In this new chapter of "Transformation
Realized," powered by Evi, inspiring stories of business transformation
that prioritize human technology and innovation are highlighted.
Hindustan Unilever's Sustainability Journey and Future Plans :
In the penultimate episode of this series, we explore the
sustainability journey and future plans of Hindustan Unilever Limited, one of
India's largest FMCG companies. Sustainable business transformation has become
a fundamental pillar of growth strategies today, with innovation and
technological advancements playing crucial roles in achieving long-term success
and scaling operations.
Key Building Blocks for Sustainable Business Transformation :
In this week's episode, we welcome Ritesh Tiwari, the
Executive Director of Finance and ID, and Chief Financial Officer of Hindustan
Unilever. Ritesh is an active member of various industry bodies, including the
Chairman of the CFO Council of Vicky, Senior Vice President of the Bombay
Chamber of Commerce and Industry, and an independent director on the board of
ORNDC. We are also joined by Nitesh Meherotra, a partner at EY's ESG Consult
Building Practice, who has partnered with Hindustan Unilever on their sustainability
journey.
Ritesh Tiwari: CFO's Perspective on Sustainability and Business Performance
Ritesh, as the CFO of Hindustan Unilever, has been
actively involved in their sustainability path since they publicly committed to
the Sustainable Living Plan in 2010. He shares that their main purpose as a
company is to make sustainable living commonplace, firmly believing that
business and ESG are interconnected. Over the past decade, they have focused on
various areas such as plastic neutrality, waste reduction, empowering women in
rural areas, and creating water potential. Their commitment to sustainability
is visible in the positive impact they have achieved.
Nitesh Meherotra: Partner at EY Discusses the Inflection Points in Sustainability
Nitesh sheds light on the increasing importance of
sustainability in today's business landscape. He highlights the synchronized
actions across stakeholders, including customers, investors, employees,
governments, and regulators. Customers are increasingly inclined to buy from
sustainable organizations, and investors demand consistent and comparable ESG
performance. Companies driven by purpose also attract and engage employees.
Governments are implementing policies to support sustainability initiatives,
creating new opportunities for businesses.
Early Successes and Learnings from Hindustan Unilever's Sustainability Initiatives
When asked about the triggers and inflection points that
have propelled companies to prioritize sustainability, Nitesh emphasizes that
climate change and social inequality are the two biggest challenges facing
humanity. Awareness and actions in these areas have grown, driven by various
stakeholders. Customers are willing to change their behavior to support the
environment and society. Investors seek companies with strong ESG performance.
Governments implement policies to promote sustainability.
The Role of Leadership and Finance in Driving Sustainable Change
Ritesh and Nitesh discuss the challenges and steps
involved in navigating the sustainability journey. They highlight the
importance of reframing strategies, accelerating transition, governing and
operating sustainably, and building trust through effective communication. Data
and digitization play vital roles in measuring, benchmarking, and monitoring
progress, as well as making informed decisions. Collaboration, change
management, and strong leadership are crucial in driving successful
sustainability initiatives.
The Power of Data and Digitization in Accelerating Sustainability :
The conversation concludes with Ritesh and Nitesh
emphasizing that sustainability is everyone's responsibility. They encourage
CFOs and organizations to create winning business cases for sustainability,
embed sustainability into their business models, and actively contribute to a
sustainable future. The role of finance teams in reporting non-financial
measures accurately and transparently is crucial, and digital capabilities and
data-driven insights are essential for sustainable progress.
Takeaways for India Inc: Navigating the ESG Journey Successfully
In summary, the article highlights the importance of
sustainability in business transformation and shares insights from Hindustan
Unilever's sustainability journey. It emphasizes the need for collaboration,
data-driven decision-making, strong leadership, and the integration of
sustainability into business models. The goal is to create a sustainable future
for all stakeholders by prioritizing the triple bottom line of planet, people,
and profit.
