Stories
Sustainability: Symbol or Strategy? The Peril of Performance Over Practice
M
Moneycontrol•21-09-2026, 10:04
Sustainability: Symbol or Strategy? The Peril of Performance Over Practice
- •Sustainability, once a practical business discipline, risks becoming a mere symbol of corporate virtue, similar to the Birkin bag's evolution from utility to status symbol.
- •The institutionalization of sustainability has led to a proliferation of frameworks, consultants, and disclosure requirements, with reports often prioritizing narrative over tangible change.
- •Many companies are excelling at reporting sustainability but failing to integrate it into core economic decisions, leading to an "uncomfortable gap" between disclosure and actual business transformation.
- •True sustainability must move beyond reporting and enter core economics, influencing capital allocation, operational efficiency, supply chain management, and risk assessment.
- •India's BRSR experience shows rising emissions despite increased reporting, highlighting the need for sustainability information to drive investment and strategic decisions, not just disclosures.
Key Questions Answered
An IIM Bangalore analysis of filings from 982 of the top 1,000 listed companies for FY2024-25 showed that absolute Scope 1 and Scope 2 emissions rose 4.29% year on year, with 53.1% of companies reporting an increase in their operational emissions footprint.
The European Union's Carbon Border Adjustment Mechanism entered its definitive regime on 1 January 2026, covering imports such as iron and steel, aluminium, cement, fertilisers, electricity and hydrogen.
The CBAM certificate price for the second quarter of 2026 was €75.28 per tonne of CO₂, making the measurement and substantiation of embedded emissions increasingly critical for Indian exporters.
