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- Tech-Driven ESG: GCCs leverage tech for advanced ESG integration, enhancing sustainability initiatives.
- Regulatory Alignment: Global ESG regulations demand robust compliance, transparency, and accountability.
- Investor Focus: Investors prioritize firms with strong sustainability strategies, influencing investment decisions.
Leveraging Technology in ESG
Global capability centres (GCCs) are driving ESG initiatives with over 1,600 centers in India, expected to reach 1,900 by 2025, hitting a market size of $60 billion. Using digital tech like AI, ML, IoT, and blockchain, GCCs create robust digital ecosystems for sustainability. Advanced ERP systems now integrate sustainability features, and cloud platforms facilitate ESG reporting and compliance.
Digital technology is core to a company’s ESG journey, anchoring the strategy and transformation from start to finish states a PwC report.
Navigating Regulatory Challenges
ESG regulations are intensifying globally. Regulatory bodies in the EU, UK, US, and India are pushing for greater ESG transparency to mitigate climate risks. Companies must stay updated on regulations and ensure accurate ESG performance disclosures.
Falling short of ESG benchmarks can lead to reputational damage and loss of investor trust warns PwC.
Investor Expectations and ESG
Investors are keen on sustainability, with 69% planning to increase investments in companies addressing sustainability challenges effectively, according to a PwC survey. They seek alignment of sustainability with business models for long-term value creation.
Investors are putting their money in companies committed to mastering sustainability notes PwC.
Consumer Demand for Sustainability
Post-pandemic, consumers are more focused on sustainability. PwC’s survey reveals that 76% of consumers would cut ties with companies neglecting ESG, while 83% believe companies should contribute to ESG best practices.
Consumers are more likely to support companies with a clear sense of purpose and a commitment to sustainability highlights PwC.
Strategic Role of GCCs in ESG
GCCs are pivotal in integrating ESG into business practices, using tech and innovation to align profitability with purpose. They enhance ESG reporting, risk assessment, supply chain sustainability, and decarbonization efforts.
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Key Considerations for GCCs
PwC’s approach to integrating ESG within GCCs involves seven steps, starting from examining the current ESG performance to implementing initiatives.
GCCs can aspire to be at the forefront of value creation by strategically integrating ESG factors says PwC.
By leveraging tech and aligning with regulatory and investor expectations, GCCs are essential in driving sustainability and building a resilient, responsible business landscape.
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