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Sustainability: How India's Global Capability Centres (GCCs) are Leading the Way
Team Finance Saathi
05/Apr/2024
Key Points:
- GCCs Embrace Sustainability: Over half of India's Global Capability Centres (GCCs) are actively adopting Environmental, Social, and Governance (ESG) policies, signaling a shift towards sustainability.
- Tech Collaboration for ESG: The majority of GCCs are seeking technology collaborations to implement ESG norms, which involves significant changes to IT infrastructure and reporting procedures.
- Strategic Hubs for Change: GCCs serve as vital hubs for global organizational processes, playing a pivotal role in identifying ESG reporting scopes and enhancing performance across various functions.
In a world increasingly concerned about environmental, social, and governance (ESG) factors, India's Global Capability Centres (GCCs) are stepping up to the plate. Recent findings from a survey conducted by EY India reveal a promising trend: 52% of these centers have proactively adopted ESG policies, demonstrating a commitment to integrating sustainability into their operational processes. With over 45 GCCs included in the study, this statistic underscores a significant movement towards sustainable practices within India's corporate landscape.
Embracing Sustainability: The shift towards sustainability is not just a passing trend; it's a strategic imperative for GCCs. These centers are not only focusing on incorporating ESG principles into their operations but are also actively seeking technology collaborations to make it happen. Approximately 70% of GCCs are engaging in partnerships to implement ESG norms, recognizing that this entails substantial changes to their IT infrastructure, data integration methods, and reporting procedures. This proactive approach highlights the seriousness with which GCCs are addressing environmental and social concerns.
Strategic Hubs for Change: Mr. Aman Dutta, Partner (GCC Consulting) at EY India, sheds light on the pivotal role GCCs play as strategic hubs for global organizational processes. Beyond simply adopting ESG policies, these centers are taking a proactive approach to drive change. Dedicated teams within GCCs are collaborating with global organizations on ESG initiatives, focusing on process enablement, data management, and technology support. By identifying ESG reporting scopes, addressing process gaps, and devising remediation strategies, GCCs are at the forefront of driving sustainability efforts within their organizations.
Developing Internal Strategies: Moreover, the survey reveals that 67% of GCCs are developing internal sustainability strategies to enhance ESG performance across various functions. This internal focus underscores GCCs' commitment to embedding sustainability into their organizational DNA. From sustainability reporting to project management and technical support, GCCs are actively involved in driving positive change within their organizations and beyond.
Impact on Real Estate Sector: The influence of GCCs extends beyond their immediate operations. A separate report by CBRE highlights the growing impact of GCCs on the Indian real estate sector. With projections indicating a 20% increase in the number of GCCs by 2025, it's clear that these centers are not only driving sustainability initiatives but also shaping the broader business landscape. As GCCs continue to expand, their influence on real estate trends and developments is expected to grow, further solidifying their position as key players in India's corporate ecosystem.
Conclusion: India's Global Capability Centres are not just hubs for business operations; they are also emerging as leaders in sustainability. With a proactive approach towards adopting ESG policies, seeking technology collaborations, and developing internal strategies, GCCs are driving positive change within their organizations and beyond. As their influence continues to grow, GCCs are set to play a crucial role in shaping India's corporate landscape and driving sustainable development in the years to come.
Also read : India's $24 Billion Manufacturing Boost: A Game Changer in Global Markets
In a monumental stride towards bolstering its manufacturing prowess, India has unveiled a groundbreaking Production-Linked Incentive (PLI) scheme, injecting over $1.02 billion to turbocharge local production across a spectrum of industries. This move, which complements the staggering $13 billion in private investments, marks a pivotal moment in Prime Minister Narendra Modi's ambitious vision to catapult India onto the global manufacturing stage.
Also read : India's Agni-Prime Missile Aces Test: A Leap Forward in National Defense
India's prowess in defense technology took a monumental leap forward on April 3, 2024, with the flawless execution of the Agni-Prime ballistic missile test. Jointly undertaken by the Strategic Forces Command (SFC) and the Defence Research and Development Organisation (DRDO), this milestone achievement heralds a new era in the nation's defense capabilities. Nestled off the coast of Odisha, the serene Dr. APJ Abdul Kalam Island witnessed a momentous event as the Agni-Prime soared into the sky, fulfilling all objectives and confirming its steadfast reliability.
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