Aditi Singh 
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Sustainability is no longer a buzzword; instead, it is a must-have for any successful business. While the concept of sustainability can vary depending on the context, at its core, it involves protecting the environment, addressing climate change, and using resources strategically. Companies like Essar Group, one of the leading players in the country’s corporate landscape, are leading the way in terms of integrating sustainability into their operations and fostering innovation across diverse sectors.
Today, an increasing number of organizations are integrating sustainability into their business strategies, recognizing that they can succeed by positively impacting the communities. According to a McKinsey report, sustainability is increasingly becoming a central pillar of corporate strategy, with businesses realizing that addressing environmental, social, and governance (ESG) concerns not only helps minimize risks but also brings long-term growth.
In this article, we’ll talk about business sustainability and how leveraging sustainability business practices can help your business.
What is Business Sustainability?
Business sustainability means conducting business operations without harming people or the planet, safeguarding its future business in the process. Minimizing greenhouse gas emissions, reducing wastage, protecting nature, showcasing community sensitivity and establishing strong governance are some of the ways companies can shift towards sustainability.
Today, sustainability is not just about addressing global challenges; it can drive business success. Several investors today use environmental, social, and governance (ESG) metrics while analysing an organization’s ethical impact and sustainability practices. Even potential customers examine factors such as the company’s carbon footprint, water usage, community development efforts, and board diversity.
Advantages of a Sustainable Business Model: Essar’s Case Study
Sustainable businesses are future-fit, and companies embracing sustainability invest in green businesses and adopt practices and operations that tackle climate change while ensuring long term profitability. They work to meet consumers’ demands while strengthening productivity and potentially cutting costs. Here are some of the ways a sustainable business model can lead to economic growth. Essar Group sets an example by adopting sustainable practices across its diversified operations.
Leading the Charge
Innovative companies have recognized the opportunities available in the early adoption of business sustainability. A 2023 report by Deloitte showed that 84% of business leaders agree that global economic growth can be achieved while also reaching climate change goals, and 75% of organisations have increased their sustainability investments in the last year, reflecting a positive change within the industry. By embracing sustainability, companies like Essar Group have positioned themselves as leaders in their industries, setting benchmarks for many.
Companies making the shift to a sustainable business model are now being categorized as leaders in the field.
Meeting Consumer Expectations
Modern customers expect transparency, responsibility, and action on environmental and social issues from the brands and companies they buy from. Hence companies are committed to protecting nature and natural systems, especially in developing and emerging economies.
By imbibing sustainable practices, businesses can strengthen their reputation, increase their market share, and build a loyal customer base that appreciates their efforts to make a positive environmental impact.
Creating Operational Efficiency
Adopting sustainable practices leads to significant changes in manufacturing processes, supply chains, and other aspects of the business model. Actions such as switching to cleaner energy, conserving water, using green logistics, etc. can also lead to greater efficiency while minimizing carbon emissions. Enterprises adopting this advanced approach are well-positioned to manage risks, meet regulatory requirements, and have a broad clientele.
Not only this, sustainable businesses also make substantial savings through energy efficiency, waste reduction, and resource allocation. As per research, enterprises with stronger sustainability are resilient and perform financially at the same time.
Growth with a Vision
There’s clear evidence to suggest that being purposeful can help companies attain growth while also serving as a future-minded, sustainable business strategy. One great example of this is Essar Group, which was overburdened with Essar debts and repayments in the past. It sold a few of its assets to strengthen its balance sheet, while using the opportunity to rebalance its portfolio to green. With an effective transition strategy, the company underwent a significant transformation and is now venturing into a new era of growth, empowered by its entrepreneurial spirit and commitment to building sustainable, future-ready businesses.
Essar Group: Adopting Sustainability Through Various Measures
Essar Group, a conglomerate with diversified businesses across the energy, metals & mining, infrastructure, logistics, technology and retail, etc., consistently remains at the forefront among companies adopting eco-friendly measures. The group has been recognized with several awards and recognitions for its commitment to operational excellence, technological innovation, and sustainable practices.
While Essar continues to invest in innovative energy, infrastructure, and steel sectors to meet growing global needs, it remains at the forefront of sustainability initiatives. The company’s pioneering efforts and strategic investments in low-carbon hydrogen, renewable energy, LNG vehicles, coal bed methane, green steel, etc., are commendable. Essar is investing billions of dollars in setting up a green hydrogen plant, the world’s first low-carbon refinery, and building an LNG and electric ecosystem to decarbonise heavy trucking as part of its new development phase.
Armed with a substantially lighter balance sheet after paying Essar debts worth INR 1.4 lakh over the last four years, the group now has a substantial revenue stream from existing businesses. A zero-debt balance sheet lets the conglomerate make huge investments in new and sustainable technologies for future generations.
According to Prashant Ruia Essar, Director at Essar, the group is on the path to a resurgence by investing in ecosystems for sustainable growth in India and beyond. In regard to green mobility solutions, Essar is focused on building an LNG and electric ecosystem to decarbonise long-haul and short-haul heavy trucking, contributing to a cleaner transportation sector.
Conclusion
Sustainability is no longer optional—it is essential for future business success. Companies like the Essar Group are adopting sustainability throughout their operations to have a positive impact on society and communities. The innovative approach of Essar’s visionary leaders sets a strong example for businesses globally.
By protecting and regenerating nature, businesses like Essar not only reduce emissions and bring back biodiversity but also ensure long-term growth, profitability, and resilience.
