While some of these brand efforts may seem small, several companies are on a larger journey towards achieving environment, social, and governance (ESG) goals that are now a critical part of doing business.
Home-grown packaged consumer goods company Dabur India has been proactive in reducing carbon emissions and plastic waste in its system. The owner of brands such as Dabur Chyawanprash, Dabur Honey, Dabur Red Paste, and Réal juice, on Tuesday said the company was inducting a fleet of 100 Electric Vehicles (EVs) for last-mile product distribution with an eye on achieving carbon neutrality in its operations. The company’s executive director, operations, Sharukh A Khan said vehicular emissions are among the biggest contributors to pollution and EVs are the future. Though the EV space is still nascent in India, Dabur is an early adopter of green vehicles in its supply chain for last-mile distribution, he said.
Dabur’s move comes close on the heels of its earlier announcement on becoming ‘Plastic Waste Neutral’ packaged consumer goods company in the fiscal year 2021-22. Last month, Procter & Gamble, India, too, announced it was recycling 100% of post-consumer plastic packaging waste and will set up two more in-house solar plants at its manufacturing sites. The maker of brands such as Ariel, Head & Shoulders and Whisper, said P&G India purchases 100% renewable electricity for all its manufacturing sites and the fabric care brands—Ariel and Tide—have been phosphate-free since 2015, helping preserve the quality of water resources. The company also claims using recycled material in baby care and feminine care product packaging.
Interestingly, an April study by CareEdge Advisory & Research said that as the focus on ESG increases, India’s top companies are ramping up capabilities toward building a sustainable future. Of the top 300 listed companies in India, 78 with a market cap of ₹120 trillion have disclosed commitments to achieving net-zero status. The study analysed the sustainability disclosures of 300 companies across 11 key sectors over the last three fiscals. Sushmita Majumdar, co-chief executive officer, CareEdge Advisory & Research, said while for FY21 the firms making net-zero commitments may seem low at just about 26% of the top 300, this number has doubled over FY20 and is at four times the number for FY19. “This trend is heartening for India and gives a fillip to the country’s commitments to become carbon neutral and achieve net-zero emissions by 2070," she said in a statement.
In an interview to Mint in March, Puneet Chhatwal, chief executive and managing director of Indian Hotels Co. Ltd (IHCL), the owner of Taj group of hotels, said the pandemic has taught people that less is more. He has removed unnecessary sets of towels from the hotels as more washing is not environment friendly. The hospitality company announced a framework to drive its sustainability and social impact measures under Paathya that includes 100% elimination of single-use plastic across its hotels and re-using 100% of waste water.
Increasingly brands’ pro planet goals are being driven by consumers who are asking the right questions of them on their sourcing, packaging and supply chains. At the launch of Deloitte’s Global Powers of Retailing Report last month, Porus Doctor, Partner and Consumer Industry Leader, Deloitte India, said millennials and GenZ consumers have shown a willingness to pay a premium for sustainable products and the latest report indicates that 55% consumers purchased a sustainable product or service.
Dabur’s Khan believes a strong environment strategy not only enhances the brand reputation but will also play a key role in building consumer loyalty.
Shuchi Bansal isMint’s media, marketing and advertising editor. Ordinary Post will look at pre-ssing issues related to all three. Or just fun stuff.
