Corporate environmental, social and governance (ESG) goals need a more holistic approach to ensure that companies not only reduce their carbon footprint but also increase their social stewardship and good governance.
It would be fair to say that most companies are preoccupied with just the ‘E’ in ESG because their scores on environmental issues is the leading criteria for most investors.
It is not difficult to see why.
The ‘E’ is more easily quantifiable – carbon emissions can be calculated in tonnes; goals to limit global warming can be set to “well below 2 degrees Celsius”.
In contrast, societal impact is harder to measure and justify.
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Even for companies that are nimbler in taking action to improve equality, diversity and inclusiveness, it can be challenging to quantify for investors exactly how this social impact contributes to corporate profits.
Companies can no longer afford to ignore the ‘S’ and ‘G’ in ESG, because the voices of consumers and employees calling for companies to align with these values are getting louder.
In fact, corporate crises can – and already have – arise from failures of ‘S’.
Companies and investors alike recognise the imperative to build business sustainability for the long run, and more are turning to steward leadership to guide their ESG agenda.
As the
Stewardship Asia Centre (SAC) in Singapore defines it, stewardship is “creating value by integrating the needs of stakeholders, society, future generations and the environment.”
Community first
The tradition of steward leadership permeates companies across the Tata Group.
For over 150 years, the Group has been guided by founder Jamshedji Tata’s foundational belief that the purpose of a business is to support the community in which it operates.
At
, we follow the Group’s philosophy that “what we earn must be given back”.
We believe in using technology to build sustainable businesses that are rooted in the community and care for the environment.
Our offices across the world have won multiple awards for sustainability.
Earlier this year, TCS achieved net carbon neutrality across its 12 markets in Asia Pacific, including Singapore, Malaysia, China and Australia, ahead of its target of 2025.
Most recently, TCS achieved a 55.4% reduction in core emissions between 2015 and 2020 to be named in the inaugural
Asia Pacific Climate Leaders list by the Financial Times that recognized the top 200 companies to achieve the greatest reduction in their Scope 1 and 2 greenhouse gas emissions intensity during the five-year period.
TCS’ stewardship journey towards sustainability is characterized by an ecosystem approach, careful planning with specific goals and a defined timeline.
It is aligned with the purpose of the Group to adopt a holistic approach to sustainability in four areas – acceleration towards net zero, influencing and enabling future generations, partnering with customers for more sustainable outcomes, empowering employees to lead the change
We adopt specific goals and the right tools to achieve this stewardship purpose.
For instance, we plan to “skill for the future” through initiatives such as imparting digital capabilities to at least five million youth by 2025.
TCS invests in many employee measures to improve their health, encourage volunteerism, monitor their personal carbon footprint, while keeping them engaged in ESG activities and motivating them to become change agents.
The importance of steward leadership in promoting green growth, social justice and strong governance is only expected to grow.
The sustainability journey will not be a smooth or rapid one.
Governments and companies that adopt realistic ESG goals and operate with integrity and transparency can be well-assured that they are on the right path to a more impactful future.
(The author is president, (TCS) Asia Pacific)
