New Delhi [India], April 4 : In India around 52% of the Global Capability Centres are proactively embracing the Environment Social Governance agenda (ESG), with nearly 70% of these centres actively pursuing tech collaborations to implement ESG initiatives.
The data revealed by Ernst & Young (EY), India's inaugural 'ESG GCC Report 2024' highlights the role of Global Capability Centres (GCCs) in India in advancing the Environment, Social, and Governance (ESG) agenda for global entities.
The report, which gathered insights from over 45 GCCs, shows the trends shaping the integration of ESG capabilities within these centres. It underscores the establishment of dedicated teams within GCCs to collaborate with global organizations on ESG initiatives by having a strong focus on enabling processes, data, and technology. Around 67% of GCCs are currently in the process of formulating internal sustainability strategies aimed at enhancing their ESG performance.
"As we stand at the cusp of a new era defined by sustainability, we are witnessing GCCs take yet another step up the value chain. With a robust commitment to ESG priorities, GCCs have the potential to drive transformative change and establish sustainable practices," says Arindam Sen, Partner and GCC Sector Leader, EY India.
Despite the promising progress, the report also identifies critical challenges such as ambiguity in ownership, lack of global stakeholder buy-in, scarcity of in-house skill sets, and inadequate know-how. Overcoming these challenges will be pivotal for Global Capability Centres to successfully materialize environmental, Social and Governance initiatives and navigate the evolving landscape of sustainability.
"Given that GCCs already serve as anchors for global organizational processes, they are strategically positioned to identify the scope of ESG reporting, pinpoint process and control gaps, and formulate remediation strategies," says Aman Dutta, Partner, GCC Consulting, EY India.
The survey was conducted between December 2023 and January 2024 and it marks the first-ever comprehensive assessment of how Global Capability Centres are anchoring Environment Social and Governance capabilities in India.
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