In an interview with ET Digital, Holkar says while government policies can show the way forward, corporations and individuals should think of and implement scalable actions at their level to create a more sustainable future. Edited excerpts:
Economic Times (ET): How do you see the rising importance of sustainability taking shape in India?
Nyrika Holkar (NH): All of us — individuals, corporations or policymakers — have little option but to embrace sustainability in everything we do. Given the galloping climate change that we are witnessing and the fact that climate experts predict that the planet’s temperatures will increase by over 1.5 degrees Celsius, building a sustainable business is no longer a matter of choice but a necessity in order to stem the tide of climate degradation urgently.
Over the last decade, India has stepped up to play a leading role in tackling climate change and I’m confident that with the same focus, determination and collective action, we will be able to exceed our 2030 targets. And as one of the fastest growing economies, with rapid industrialisation and urbanisation, it’s essential for India Inc to take measurable targets to align itself to the global SDG agenda.
At Godrej & Boyce, sustainability has always been at the core of our planning and operations for generations. In the last decade, this thinking has been formalised into a corporate policy that encourages our business units to introduce products which drive sustainable consumer behaviour and promote circularity. Sustainability is not only good for the planet, it is good for business as well.ET: How has Godrej & Boyce aligned its corporate strategy with sustainability?
NH: Two of the founding principles of our company have been our passion for building an economically self-reliant India and our commitment to create a positive impact on our planet. We continue to drive this commitment across the organisation and it can be seen in the innovative products and solutions we offer to customers. The company’s primary mission towards sustainable economic growth is to address the climate crisis with ‘green’ products that offer customers a route for meaningful action.Godrej & Boyce has been emphasising its commitment to help shape responsible choices for all Indians as part of its transformative sustainability goals. We have set very ambitious targets for the next decade. Our sustainability targets are aggressive — including earning 50% of revenues through our Good & Green product portfolio, achieving a 60% increase in energy productivity, a 60% reduction in carbon intensity, a 40% share of renewable energy, 100% net-zero buildings, and 80% domestic buying from green suppliers. We think that these are the need of the hour.
Nyrika Holkar, Executive Director, Godrej & Boyce
Our decade-long journey, we have facilitated the building of over 600 green buildings, doubled energy productivity, provided vocational skills training to over 180,000 youth and currently generate close to 40% of our revenues from such products. Most of our factories have achieved CII-GreenCo certification, with seven securing the prestigious Platinum status, embodying the organisation’s sustainability-first mindset in design processes and operational practices.
ET: How are you transitioning towards a fully green supply chain? What role does AI play in this transition?
NH: Sustainability finds lasting relevance in manufacturing and other operations only when green principles are firmly embedded in the organisational framework. With this in place, we have been working – across business units – to develop sustainable and well-integrated supply chains that are largely localised (about 80%) in terms of sourcing inputs, material circularity assessments and drive accountability on aspects like emission controls.
AI is playing a crucial role in this transition as we find new applications for greening our business processes to make them more efficient. With each manufacturing facility built over the last five-to-seven years, we have increased the ‘smart’ quotient.
From using digital twins to build scalable industrial products in smart factories to AI-driven customer journeys, we are keen to leverage new digital technologies across businesses. As a part of this strategy, we have set up greenfield manufacturing plants with smart manufacturing systems and processes. Across our businesses, we deploy robots to perform repetitive activities, in high precision settings, like precision welding. We have also developed our own automated guided vehicle technology that uses IoT for material movement between machines. Our firm belief is that smarter products and solutions can transform customer experience.
ET: Godrej & Boyce recently launched a Conscious Collective platform? What is it? How does it align with Godrej & Boyce sustainability goals?
NH: Conscious Collective is an initiative to bring sustainable design and the exploration of materials that promote circularity out of the boardroom and into the community. It was designed not only to expose urban planners, architects, interior designers to innovations and new developments, but also to drive awareness among consumers about their choices. It is a new platform that aspires to herald a new era of design-led innovation with a strong focus on sustainability and circularity that help consumers make conscious choices.
With the climate crisis upon us, we need to act as a collective force. While government policies can show the way forward, it is for all of us as corporations and individuals to think of scalable actions that can create a more sustainable future. The Conscious Collective is a step in that direction.
Over the last year, we forged relationships with creative minds from the design fraternity to reimagine solutions or exploratory designs that redefine a more sustainable future. This year, we focused on three pillars: (a) sustainable materials, (b) built spaces and (c) the environment. The platform will continue to drive the narrative of conscious living through various activations throughout the year.
The Conscious Collective and our Good & Green philosophy are committed to a common vision of shaping conscious living. While our Good & Green practices shape our business prerogative of taking ownership of building a greener and healthier future through our business practices; the innovations, conversations and experiences at Conscious Collective takes this sustainability discussion into homes and communities in an accessible way.
ET: How was the year gone by for Godrej & Boyce and what is your outlook for 2024?
NH: The past few years have seen good growth across businesses, with an average growth of 15% Y-o-Y. This has been bolstered by our B2C and industrial products businesses along with strengthening our exports. I believe India will continue to remain a bright spot in 2024, with its growing market, young workforce and steadfast policies that remain committed to manufacturing and infrastructural development. This poses a huge opportunity for us. At Godrej & Boyce, we are very confident of the future. We aspire to double our revenues in 5 years.
