The CII-ITC Centre of Excellence for Sustainable Development has joined hands with The International Integrated Reporting Council (IIRC) to promote integrated reporting framework for corporates in India.
The initiative is expected to pave the way for Indian corporates to move towards integrated thinking and explain how they are creating value.
Speaking on the occasion, Paul Druckman, CEO, IIRC said, “There is an urgent need for finding convergent solutions to achieving sustainability as corporate reporting can change business behaviour.”
In the current scenario, which calls for increased transparency and where companies are growing on a large scale, there is a need to build capital markets where investors understand the full picture and focus not just on company’s quarterly performance, he added.
ITC chairman Y.C Deveshwar, who is also the chairman of the CII-ITC centre’s advisory council, pointed out that the purpose of business should be redefined to include a combination of social, economic and environmental issues.
“Currently only consumer satisfaction and shareholder value govern business behaviour. Instead, what we need is to create business models that create synergies between social, economic and environmental incentives.” he said.
The recognition system should be modified to reward performance on the triple bottom line, he added. The centre launched Sustainable Plus, the world’s first corporate sustainability label, that helps consumers recognise and reward companies that have successfully incorporated sustainable practices in their core business.
“In the next five years, there will be a surge in measurement and valuation tools and the time is not far when Net Present Value becomes Net Positive Value,” said Seema Arora, executive director of the CII-ITC centre. She shared three solutions – value innovation, valuation and value proposition that would help businesses to leapfrog and continue to flourish.
She also added that this is the time for transformative solutions and differential thinking. “India is capable of being the next ‘Google’ of sustainable and inclusive innovations. But there is a lot of capacity to be built before arriving there. And to that end, CII and the centre will continue to bring the latest in sustainability to make business in India truly competitive and future-ready,” she said.