In an exclusive interview with Cargo Insights, Smitha Shetty, Regional Director of APAC at Achilles Information, shares her valuable perspectives on the evolving regulatory landscape in India, the future of BRSR Core, and its pivotal role in India’s sustainability journey and value chain management. The interview also delves into broader ESG trends, including the increasing demand for transparency, the benefits of ESG reporting, and the strategic importance of sustainable supplier relationships. Emerging trends suggest deeper integration of BRSR with value chain management and the utilization of sustainability reporting platforms to streamline compliance and mitigate ESG risks.
What are the broad principles of BRSR core and its impact on the Value Chain? Explain its relevance to Indian business?
The Business Responsibility and Sustainability Report (BRSR) Core is an excellent initiative that aligns with India’s focus on promoting responsible business practices and sustainable development. What sets this framework apart is its emphasis on metrics unique to the Indian market that aim to drive improvement in areas like job creation in rural areas, increased transparency in business practices, and better wages for women. One of the most significant benefits of the BRSR Core is its focus on the value chain. It requires large companies to work collaboratively with their upstream and downstream partners to achieve and improve sustainability throughout their operations. However, implementing the BRSR Core requires overcoming the challenge of effectively managing large-scale data collection and collaboration across the value chain. But, once successfully implemented, it can promote transparency, improve ESG compliance, and positively impact Indian businesses.
As ESG (Environmental, Social, and Governance) reporting gains prominence, how does India Inc approach the integration of ESG factors into its reporting framework?
Indian businesses face a multi-pronged push for ESG integration. Domestic regulation like BRSR Core and growing investor/consumer demand for sustainable practices drive change. For Indian businesses operating on the world stage and importing into markets like Europe, USA and Canada and Australia, business success is increasingly dependent on the ability to demonstrate compliance with their regulatory frameworks such as the EU’s CSRD and CSDDD and North American Force Labour legislation. Companies are shifting from basic compliance to a strategic approach, incorporating ESG metrics and linking executive incentives to performance. Additionally, ESG assurance schemes aligned with global standards are gaining traction. This trend highlights the increasing importance of transparency and accountability across the supply chain. Partnering with the right solution provider is crucial to navigate this evolving landscape in India and globally. Our solutions, built on over 30 years of experience, can help companies develop robust frameworks, gather data, and streamline ESG reporting across operations, including supplier engagement. Achilles, a proven leader in supply chain transparency, carbon reduction and management, empowers businesses to achieve their ambitious sustainability goals and confidently demonstrate compliance.
What benefits does transparent and comprehensive ESG reporting offer to stakeholders, and the broader supply chain community?
Transparent and comprehensive ESG reporting benefits all stakeholders involved in a business ecosystem. By adopting sustainable practices, companies can foster long-term sustainability while attracting responsible capital. Additionally, highlighting ESG risks and opportunities through transparent reporting empowers stakeholders to make informed decisions and identify areas for improvement. This leads to a more resilient and sustainable business ecosystem. Furthermore, companies can collaborate with suppliers to address sustainability challenges throughout their value chain, contributing to long-term growth for both the company and the broader supply chain. Overall, ESG integration drives change towards a strategic approach to sustainability, improving transparency and accountability across the supply chain community.
Can you provide examples of how sustainable supplier relationships contribute to mitigating risks and optimizing performance within the value chain?
Consider sustainable supplier relationships as a forward-thinking risk management strategy. When companies join hands on issues such as ethical sourcing and safe labor practices, they can tackle social risks that could lead to supply chain disruptions. Such collaborations promote resilience and enhance performance. At Achilles, we believe in fostering a network approach that creates a collaborative ecosystem between big players and smaller businesses and startups. These established schemes harness the power of industry collaboration to share the cost and responsibility for health, safety, and larger ESG-related risks and support higher standards of safety and sustainability. Our successful track record speaks volumes. We have helped companies achieve significant cost savings, reduced procurement cycles by up to 30 days, and witnessed a 47% improvement in sustainability scores. These results highlight the effectiveness and potential of sustainable supplier management.
What are your thoughts on future trends or developments regarding the integration of BRSR Core principles into value chain management?
Looking ahead, I see BRSR Core principles becoming even more integrated with value chain management. Companies will need to extend sustainability practices beyond their own operations to contractors and sub-contractors. Due to the scale and complexity of global supply chains, sustainability reporting platforms will be integral to effective risk management and mitigation. These platforms will enable efficient data collection, analysis, and risk mitigation across the supply chain including ESG and also going further to help businesses to address other inherent operational risks and meet their anti-fragility goals. Achilles is at the forefront of this evolution with our BRSR Core module on The MyAchilles platform. This module simplifies BRSR Core compliance for Indian businesses. It captures detailed supply chain data on carbon emissions, social policies, health & safety, and cybersecurity – all categories mandated by SEBI. Achilles validates this data using multiple sources to generate a comprehensive risk report. Our BRSR Core solution is designed to be cost-effective, faster, and less burdensome, ensuring Indian businesses can comply and demonstrate their commitment to sustainability effectively.
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