The advent of the Internet of Things (IoT) and real-time IoT platforms has presented a transformative opportunity for enterprises in India to enhance their sustainability efforts, particularly in light of the Securities and Exchange Board of India’s (SEBI) Business Responsibility and Sustainability Report (BRSR) Core Framework.
Introduced in July 2023, this framework, mandates ESG (Environmental, Social, and Governance) disclosures for the top 150 listed entities, emphasizing the need for transparent and accountable business practices. The phased implementation of BRSR includes:
FY2023–2024: Top 150 listed entities
FY2024–2025: Top 250 listed entities
FY2025–2026: Top 500 listed entities
FY2026–2027: Top 1,000 listed entities
The BRSR Core mandates ESG disclosures for the top 150 listed entities in India starting from the financial year ending March 2024, expanding to the top 1,000 listed entities by FY2026-2027.
75% of Indian businesses are actively reporting on their sustainability and ESG performance, highlighting a significant commitment to transparency - Source
Key Challenges in Adhering to ESG Compliance in India
In India, the recent introduction of the BRSR Core by SEBI reflects a growing emphasis on transparent and responsible business practices. Companies are increasingly prioritizing their ESG responsibilities in response to regulatory requirements and stakeholder expectations.
However, challenges remain in terms of data collection capabilities, understanding complex regulations, and effectively integrating ESG into strategic planning.
As Indian firms strive to comply with these new standards, they must also navigate the intricacies of a diverse regulatory environment while ensuring that their sustainability efforts resonate with stakeholders. Let's dig deeper into the challenges,
Data Collection and Reporting: Organizations often struggle with gathering accurate and comprehensive data required for ESG reporting. This includes environmental metrics like carbon emissions, energy usage, and social factors such as employee welfare.
Regulatory Complexity: The evolving regulatory landscape, including frameworks like SEBI’s BRSR Core and international standards, creates confusion and requires companies to stay updated on compliance requirements.
Stakeholder Expectations: Balancing the diverse expectations of stakeholders— including investors, customers, and regulators— can be challenging, especially when these expectations evolve rapidly.
Integration into Business Strategy: Many companies face difficulties in integrating ESG considerations into their core business strategies rather than treating them as separate initiatives.
Understanding the BRSR Framework and role of IoT
The BRSR Core serves as a pivotal guideline for Indian companies to report on key sustainability metrics. It encompasses nine ESG attributes, including greenhouse gas emissions, water usage, energy consumption, and employee well-being.
Organizations that implement IoT solutions can see an increase in operational efficiency by as much as 20-30%, which directly impacts their ability to meet ESG goals - Source
As businesses strive to comply with these requirements, the integration of IoT technologies can facilitate more effective monitoring and reporting processes. below are the core areas where real time IoT platforms play a crucial role in ensuring sustainable operations and compliance adherence. Here's how IoT can help enterprise leaders to address ESG challenges
Automated Real Time Data Collection: IoT devices can streamline the collection of real-time data on environmental parameters, reducing manual errors and ensuring more accurate reporting.
Enhanced Monitoring Capabilities: Continuous monitoring of emissions, resource usage, and waste management through IoT sensors allows companies to respond quickly to deviations from sustainability goals.
Improved Compliance Tracking: IoT platforms can help organizations track compliance with various regulations by providing dashboards that aggregate relevant data and highlight areas needing attention.
Stakeholder Engagement: Real-time data sharing through IoT can enhance transparency with stakeholders, allowing companies to demonstrate their commitment to sustainability and respond to concerns promptly.
Integration with Business Operations: By embedding IoT solutions into operational processes, companies can ensure that sustainability practices are part of everyday decision-making rather than an afterthought.
Examples of how IoT solutions can significantly enhance sustainability efforts
1. Energy Consumption Monitoring
Smart Meters: These devices provide real-time data on energy usage, allowing companies to identify peak consumption times and implement energy-saving measures.
Building Management Systems (BMS): Integrating IoT sensors can optimize heating, ventilation, and air conditioning (HVAC) systems based on occupancy and weather conditions, reducing energy waste. Click to read more about how IoT can help you optimize energy consumption.
2. Water Usage Tracking
IoT Water Sensors: These sensors can monitor water flow and detect leaks in real-time, enabling companies to reduce water waste and manage consumption more effectively.
Automated Irrigation Systems: In agriculture, real-time soil moisture data can trigger irrigation systems only when necessary, conserving water resources.
3. Waste Management
Smart Waste Bins: Equipped with sensors, these bins can monitor fill levels and optimize collection routes, reducing fuel consumption and emissions associated with waste collection.
Recycling Tracking Systems: Real-time data on recycling rates can help organizations improve their waste management strategies and increase recycling efficiency.
4. Supply Chain Optimization
Real-Time Inventory Management: IoT devices can track inventory levels in real-time, reducing overproduction and minimizing waste.
Transportation Monitoring: GPS and telematics systems can provide real-time data on vehicle emissions and fuel consumption, enabling companies to optimize logistics for lower environmental impact.
5. Carbon Footprint Measurement
Emission Sensors: Real-time monitoring of greenhouse gas emissions from production processes allows companies to identify areas for improvement and track progress towards sustainability goals.
Lifecycle Assessment Tools: These tools can analyze the environmental impact of products throughout their lifecycle in real time, helping businesses make informed decisions about materials and processes.
6. Employee Engagement and Well-being
Workplace Environment Sensors: Monitoring worker vitals, air quality, temperature, noise levels etc. with IoT solution like connected worker in real time can help ensure a healthy work environment, aligning with social sustainability goals.
Feedback Systems: Real-time employee feedback mechanisms can help organizations address well-being issues promptly.
The way forward
The introduction of the BRSR Core has prompted Indian companies to take significant steps toward enhancing their sustainability practices. By investing in technology, improving reporting mechanisms, engaging stakeholders, and setting long-term goals, these organizations are positioning themselves not only for compliance but also for leadership in sustainable business practices. For further details on how specific companies are adapting to the BRSR Core requirements, you can refer to the full article here.
The introduction of the BRSR Core by SEBI mandates that top listed companies improve their ESG reporting, with many firms expected to invest in technologies like IoT to meet these requirements effectively - Source
As companies navigate this evolving landscape, adopting a real-time IoT platform can be a transformative step. Solutions like Syook can provide actionable insights through continuous monitoring of environmental metrics, streamline data collection, and enhance reporting accuracy. By leveraging such technologies, enterprises can not only meet compliance requirements more efficiently but also gain a competitive edge in sustainability.
Make a bold move towards integrating IoT into your enterprise ESG strategy. Respond proactively to regulatory demands and stakeholder expectations, fostering a culture of transparency and accountability. Connect with us to delve more into how Syook's IoT solution can help you achieve ESG goals.
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