6th International Conference on “Economic Growth and Sustainable Development: Emerging Trends

November 25-26, 2021, Mysuru, India

Green Business- A Smart Outlook

Shreya Dixit

Thanai Pouldas
Abstract

Sustainability has become an essential component for a business to survive. Businesses should work towards
a sustainable future by promoting Reduce, Reuse, recycle strategies and also by supporting organizations
working towards sustainability. Across all industries, around 60% executives think sustainable strategies are
necessary in this competitive world.
Sustainable Business can be understood as doing business which does not negatively impact the
environment, community and society, but it contributes to a better and sustainable future.
Sustainable Business is also a term used for a business which embraces sustainable operating procedures,
product materials, practices, etc. in other words a Green Business. Which is turning out to be a smart business
option for the present and future.
Sustainability plays an important part in the success of a business, as it not only helps to curb global
challenges but also helps in getting investments. Several Investors today use environmental, social, and
Governance (ESG) metrics to analyse the organizations ethical impact and sustainable practices. Research
shows that companies with high ESG ratings have lower cost of debt and equity, and that sustainability
initiatives can help improve financial performance while fostering public support

INTRODUCTION
The fourth industrial revolution needs to be a green revolution. Technological advancement and innovation
is promising to make our industries, lives and future more sustainable. In the current business world,
sustainability is one of the most important criteria. With climate change impacting our lives, sustainable
business practices have become imperative for business owners, administrators and leaders. One of the main
reasons for climate change is anthropological activities. As humans are dependent on natural resources, they
are continuously producing and consuming. By the end of the 20th century, the concept of “Green Business”
emerged, with the awareness of environmental issues such as deteriorating environmental quality,
accelerating depletion of natural resources, etc. The movement for sustainable development also known as
green movement can be traced back to the 1960's but it took almost two decades for businesses to adapt
the “greening” in their business and adopt them in their ideologies, practices etc. The concept of Green
Business still stands ambiguous as it is defined differently by various sources. Not all businesses are ready to
adapt to green business for various reasons such as extra cost, revenue loss and other reasons being related
to national, economic and political differences.
The purpose of present research is to identify green businesses and their ecopreneurs, discuss their initiative
in growing a sustainable business, and the challenges they are facing while they are contributing for a better
world. The paper also discusses the green initiatives taken up by big multinational companies and how they
are reducing their carbon footprint.

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 6th International Conference on “Economic Growth and Sustainable Development: Emerging Trends
November 25-26, 2021, Mysuru, India

The practice of operating business without impacting the environment negatively can be termed as
Sustainable business. A green business is one that functions in the best interests of the local and global
environment, supporting the community in building a sustainable planet. A green business does not just
concentrate on profits but also considers its impact on society and environment. Green Businesses or
Sustainable Businesses adheres to the concept of “triple bottom line”. Triple bottom line is a business
concept that proposes that businesses should commit to measuring their social and environmental impact
besides only focusing on financial performance. The triple bottom line can be broken down into three Ps”-
Profits, people and the planet. The importance of the triple bottom line can be seen in cases of many
businesses which have reaped financial benefits by committing to sustainable business practices. According
to sustainable business strategy, evidence has increasingly shown that firms with promising environmental,
social, and governance (ESG) metrics tend to produce superior financial returns. As a result, investors began
focusing on ESG metrics when making investments.
With climate emergency, social inequality increasing and mass extinction of wildlife, disruption of the entire
ecosystem, Businesses cannot continue as usual. To address the challenges of climate change and reach net-
zero Green House Gas emissions, businesses need to transform their practices. And for this to happen there
is a need for collaboration between business, investors and government. India is at the centre of this
transformation with home to approximately one-sixth of the world population. It is widely understood that
India will play a leading role in determining the relative success or failure of the Sustainable Development
Goals. India’s rapidly growing economy , with a huge domestic market and an important role in global supply
chains. India stands as the second largest producer of food by calorie content and is home to ten fastest
growing cities. India's energy demand could increase in coming years with increased ownership of domestic
as well as industrial appliances and their cooling needs. India is highly vulnerable to the effects of climate
change , where increasing average temperatures and changing rainfall patterns are already having a
significant impact on the economy. The UN Office for Disaster Risk Reduction estimates that India has
suffered USD $79.5 billion in economic losses since 2000 due to climate-change linked disasters. Related to
this, India still has significant issues regarding clean water, nutrient rich food, education and basic healthcare,
which are most urgent priorities for much of the population According to Joe Phelan, Director of WBCSD
India. Adopting Science based targets or Science Based Targeted initiatives is the new norm for sustainable
business and Indian companies are leading the movement along with France, Japan and the UK and the US
in corporate climate action.
In 2013, India became the first country to make CSR mandatory. Corporate social responsibility (CSR) is how
companies manage their business processes to produce an overall positive impact on society. It covers
sustainability, social impact and ethics, and if done correctly it should be about core business – how
companies make their money – not just add-on extras such as philanthropy. All companies with a net worth
of Rs 500 crore or more, a turnover of Rs 1,000 crore or more, or net profit of Rs 5 crore or more, are required
to spend 2 percent of their average profits of the previous three years on CSR activities every year.

LITERATURE REVIEW
As highlighted by Kidd (1992), sustainability as a concept is not new, it has a long history, and it has been
evolving over time. Importantly, this evolution has been affected by different “intellectual and political
streams of thought that have
molded concepts of sustainability” (Kidd 1992, p. 3). One of the main discourses on sustainability other than
environmental and social is on business
As argued by Gray (2010, p. 57), “Capitalism and its destructive tendencies are manifest through its greatest
creation—the corporation”. Given the depletion of natural resources that is caused through their activities,

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 6th International Conference on “Economic Growth and Sustainable Development: Emerging Trends
November 25-26, 2021, Mysuru, India

corporations are required to move towards a state in which they “use only resources that are consumed at
a rate
below the natural reproduction, or at a rate below the development of substitutes They do not cause
emissions that accumulate in the environment at a rate beyond the capacity of the natural system to absorb
and assimilate these emissions. Finally they do not engage in activity that degrades ecosystem services”
(Dyllick and Hockerts 2002, p. 133).This situation encompasses not only eco-efficiency
(WBCSD 2000) but also eco-effectiveness (Braungart and McDonough 1998) and sufficiency (Schumacher
1973). In addition, from a business point of view, sustainability has been referred to as the
capability of a corporation to last in time, both in terms of profitability, productivity and financial
performance, as well as in terms of managing environmental and social assets that compose its capitals. In
one sentence, business sustainability is the business of staying in business (Doane and MacGillivray 2001).
Dyllick and Hockerts (2002) define business sustainability as “meeting the needs of a firm’s
direct and indirect stakeholders [...] without compromising its ability to meet the needs of future
stakeholders as well” (p. 131). In this respect, the business discourse on sustainability has also revealed an
inherent paradox between corporations and sustainability (Gray 2010). On the one hand, given the power
of corporations to exert control over society and to produce large scale innovations, they are increasingly
regarded by governments as an unavoidable means through which (social and
environmental) sustainability can be implemented (Hawken et al. 1999; Gray 2010). On the other hand,
they are placed at the heart of concerns about the deterioration of natural resources and the production
of social inequalities.

OBJECTIVES OF STUDY

The objectives of this study are

(i) Understanding different business models of Eco-minded Entrepreneurs or in simple terms Ecopreneurs,
who are running a successful green business.
(ii) How companies in India are embracing sustainability by turning eco-friendly, by modifying their existing
business model and implementing their green initiatives.

RESEARCH METHODOLOGY

The paper would have a combination of primary and secondary data. The primary data would be collected
through a semi- structured interview, where the interviewee would be the Ecopreneurs who would be asked
about their green business and their initiatives.
A semi structured interview can be defined as an interview which has more of open ended questions. The
purpose of using semi structured interview in this research is to gather information from key informants who
are the ecopreneurs, who have personal experiences , perceptions and beliefs in the topic of interest that is
Green Business.

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 6th International Conference on “Economic Growth and Sustainable Development: Emerging Trends
November 25-26, 2021, Mysuru, India

DISCUSSION

As mentioned in research methodology, this paper in its primary research discusses green businesses
operated by the ecopreneurs, and how they are contributing to our environment.
The first green business is Spick & Span by Auto SCP solutions.
Spick and Span is a biodegradable, eco friendly and green product to the automobile industry, and one of
the first companies to go commercially into the market under three verticals- Distribution channels,
showroom concepts and podium services. Spick & Span is a waterless car wash liquid made of polymers and
fibres. This product was launched in the year 2020 in the market. This product was launched looking at the
environmental damage being done by washing the cars, approximately for one car 100-300 liters of water is
utilised for washing each car at once in automobile service stations. While these cars are being washed with
so much water, the washed water which contains various harmful chemicals go into the ground damaging
the ground water table which in turn damages our ecology. Though the service stations are asked to install
an ETP (Effluent Treatment Plant) , the cost involved in installing one ETP is huge. So not all companies are
taking up the initiative of installing an ETP. The product characteristics are so well built, while using the
product there is minimal use of water, approximately only about 5-10 liters of water. There are only three
steps while washing the car, while in traditional use, there are around seven steps. Spick & Span solution
when used, the car dirt is removed, sanitised and also a shine is left on the car. Spick & Span says,
conventional method a chemical Tenopol used while washing the car, damages the car surface, but Spick &
Span solution does not have that hard chemical instead when the product is used, the life of car surface
increases for two plus years additional to its normal life. Spick & Span when used, there is no spillage
therefore there is no chemical or solution going in to soil. Spick & Span is proud to say that customers have
happily accepted the product as even there are aware of the water crisis around us. An example for
companies supporting waterless car wash is shared by Spick & Span is of the Harsha Toyata Showroom,
where in, the company in all its showrooms as clearly put display of “do not ask for water wash” to its
customers.
The next ecopreneur this paper discusses is Mr.Shamsundar Subbarao, Head NIE-CREST.
Mr.Sham is working passionately as consultant for projects in the field of sustainable development- Green
technologies, Renewable energy, sustainable building materials, micro grids etc. With more than 15 years of
experience in the Green Business- Green technology, he has seen success, and also along with it faced many
challenges, be it acceptance by people for shifting towards green technology, eco-friendly living etc.
Mr.Sham says, initially when he started, he started with a concern for the harm done to the environment.
Concern for depletion water tables led to the idea of Rain Water Harvesting pits. The concern for waste
disposal in a right way led to converting the wet waste into biogas and manure. Mr.Sham says, while finding
solutions to the concerns, he understood that there is a huge scope for business opportunities in Green
Business and also it is the need of the hour, for a sustainable world to be built. The Government has also
taken initiative in promoting green technology and green businesses, boosting the confidence of
ecopreneurs in setting up green businesses.
With so many years of experience the challenges he faced, he shares that back when he started, there was
not much awareness on the need of sustainable living and eco-friendly products. But now with Government
initiatives, rules and regulations, people have started adopting green technologies.For example, until few
years back, people of Mysore city in India, were not ready to have rain water harvesting pit and Solar water
heater in their homes, the garbage was dumped on the end of street in every street. The scenario is
completely different today. Majority of the households in Mysore have Rain water harvesting pits and solar
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 6th International Conference on “Economic Growth and Sustainable Development: Emerging Trends
November 25-26, 2021, Mysuru, India

water heaters, the garbage is segregated into dry and wet, and wet waste is being used for making biogas
and manure. With this example he says that, initially people were reluctant on collecting rain water and
storing it, but after a lot of advocacy and making people aware of the need to adopt green technology they
have shown interest and are adopting it. People accepting green technologies is also because of the
Government interventions in providing subsidies for solar water heater installation and penalties being
collected on unsegregated waste disposal or wrong disposal of waste. Rain water harvesting is also being
promoted by the government by specifying few rules on dimensions of the pit and the process to be followed.

The paper discussed Ecopreneurs who are taking the initiative of promoting green products which are
environmentally friendly and doing their part in making the world a better place to live in. Now the discussion
would be about the big companies which are incorporating sustainable business practices in their
businesses.
1. P&G introduced Fairy Ocean Plastic bottles, which are made of 10 per cent ocean plastic and 90
percent post-consumer recycled plastic. The 100 percent recyclable bottles were launched to show what can
be done to prevent plastic waste from reaching the ocean
2. UltraTech has been ranked among the top 10 companies, internationally, on Dow Jones
Sustainability Indices (DJSI) in the 'Construction Material' Industry sector. Since cement is a carbon-intensive
industry, UltraTech has integrated low carbon strategy into its business roadmap to address SDG 13 (climate
change goal) based on COP21 of the United Nations Framework Convention on Climate Change. Initiatives
like cooler upgradation, calciner modification, voltage variable frequency drive installation ..
3. PI Industries has made efforts to communicate the latest scientific advancements in the field of
agriculture across its manufacturing locations. It helped change rice cultivation practice to direct seeding of
rice (DSR) technique across 675,000 hectares of land, thus conserving 355 billion gallons of water and saving
25-30 per cent costs related to irrigation and energy
4. Launched by Asian Paints, Project NEW (N- natural resource conservation, E- energy and emission
reduction, W- waste reduction) focuses on eco-friendly manufacturing facilities and activities, with the
objective of minimising the impact of operations and nurturing biodiversity.
5. Mahindra Group - Mahindra Electric Mobility is the pioneer of electric vehicle technology in the
country . It has been a key player in transforming mobility through their manufacturing of electric vehicles
(EVs) and aligning with India’s vision of large-scale adoption of EVs in the commercial and personal segment
by 2030.
6. Reliance Industries recently launched a project to tackle plastic waste in India by supplying waste
plastic for road construction. They have started their own and outsourced garbage collection and segregation
to aid this process with the brand ReROute.

CONCLUSION

Initiative by the Government of India, such as, Green Skill development programme, under, the Ministry of
Environment,Forest and Climate Change, focuses on “Green Skills” which refers to those that contribute to
preserve and restore the environment and create a sustainable future. The programme focuses on
developing skills among the youth in the environment and forest sector. Another initiative by the Ministry of

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 6th International Conference on “Economic Growth and Sustainable Development: Emerging Trends
November 25-26, 2021, Mysuru, India

Petroleum and Natural Gas is ‘SATAT’ scheme on Compressed BioGas (CBG) encourages entrepreneurs to set
up CBG plants, produce & supply CBG to Oil Marketing Companies (OMCs) for sale as automotive & industrial
fuels. These kinds of initiatives by the Government would encourage the Ecopreneurs, who have vision and
passion to set up a Green Business.
As mentioned about Triple Bottom Line in the introduction, the ecopreneurs we discussed are also working
in lines of Profit, People and Planet. Spick & Span solution, a waterless car wash liquid which has all three P’s
addressed, there is profit for both the sellers and users, with its efficient usage. People are at advantage as
the cost of water and time is reduced with the use of this product. The biodegradable car wash liquid made
of polymers and fibres is helping us not to pollute the soil which in turn is saving the ground water tables.
The other ecopreneur, Mr.Shamsundar Subbarao, Head NIE-CREST, is working towards the Green technology
and creating awareness among people and also advocating the need for shifting to sustainable living. One of
the initiatives taken up by NIE-CREST is implementing the microgrids. Microgrids provide a framework for
integrating large/small amounts of distributed sources into the powergrid, Microgrids open the door to
significant system efficiency improvements by integrating with system energy needs. According to them
Microgrid with renewable energy integration can be a sustainable energy technology for Indian Villages and
towns.
As the paper discussed the green initiatives of some multinational companies, which are helping India reduce
its carbon footprint and reach the Sustainable Development Goals, along with it more ecopreneurs should
tap on the Green Business Opportunities to create a smart world for present and future.

SCOPE OF FURTHER STUDY

This research paper is limited to only two ecopreneurs, and the contribution by big companies is discussed
in brief. So the scope from this research paper is identifying more ecopreneurs who are running a Green
Business and discussing their initiatives and challenges faced by them. Case studies can also be prepared in
further research articles based on Sustainable Businesses running with the help of Government initiatives
like sustainable finance schemes.

REFERENCES

Kidd CV (1992) The evolution of sustainability. J Agr Environ Ethic 5(1):1–26

Gray R (2010) Is accounting for sustainability actually accounting for sustainability... and how
would we know? An exploration of narratives of organisations and the planet. Account Org Soc
35(1):47–62
Dyllick T, Hockerts K (2002) Beyond the case for corporate sustainability. Bus Strat Environ
11:130–141
Doane D, MacGillivray A (2001) Economic Sustainability-the business of staying in business,
New Economics Foundation, London
https://online.hbs.edu/blog/post/what-is-the-triple-bottom-line

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