Professor Vikram Gandhi, Senior Lecturer in the General Management Unit and Entrepreneurial Management Unit at Harvard Business School, during an interview at BT500 Wealth Creators Summit with Siddharth Zarabi, Managing Editor, Business Today TV, emphasised on his role in shaping minds at the prestigious B-school. The interview started with Siddharth Zarabi highlighting the significant contributions of people of Indian origin across the world, particularly in business and education.
Vikram Gandhi shed light on sustainable investing, dispelling the misconception that it involves sacrificing profits. He stressed that sustainability is about good business practices and increasing the size of one's economic "packet."
Vikram Gandhi provided a global context, mentioning that around 35-40% of investors globally, equivalent to $35-40 trillion, incorporate sustainable angles into their investments.
Vikram Gandhi highlighted the wealth creation opportunity in the energy transition, especially in climate-related investments. Investors are recognising the potential for significant returns in environmentally conscious initiatives. He discussed studies showing that companies with a sustainable approach, particularly in utilities transitioning from non-renewable to renewable sources, outperform in terms of stock prices.
Vikram Gandhi shared insights into COP28, emphasising the ongoing debate and the progress made regarding financing climate transition. The conversation shifted to the impact of climate change on India, especially in cities like Mumbai, facing the threat of submersion due to a combination of factors. He said that while larger companies in India understand the importance of ESG (Environmental, Social, and Governance) principles, smaller ones may be hesitant, citing other pressing issues.
Vikram Gandhi stressed that companies should view ESG initiatives not merely as altruistic efforts but as fundamental to good business, aligning them with the interests of investors, customers, employees, and the community.
Vikram Gandhi recommended a practical approach to ESG, focusing on a few critical factors relevant to each industry, as advocated by the Sustainable Accounting Standards Board (SASB).
Vikram Gandhi also addressed the challenges Indian companies face in balancing growth and sustainability, especially in industries like power generation, steel, and cement.
When comparing India to China in terms of sustainability, Vikram Gandhi highlighted China's achievements, particularly in renewable energy and electric vehicles, emphasising on the need for India to learn and adapt.
A discussion on stock performance revealed that companies concentrating on material ESG factors showed remarkable stock price performance, presenting ESG as a co-linear factor rather than a hindrance.
Produced by: Tarun Mishra Designed by: Manoj Kumar
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