Updated on: June 17, 2025
Sustainability vs. Business Growth: Is it really a trade-off ?
The old playbook says you have to choose, grow your business or be sustainable. But in 2025, that mindset is not just outdated, it’s risky. From fast-growing mid-markets to listed giants, companies are discovering that sustainability isn’t a drag on performance, it’s a driver. In a recent Morgan Stanley report, globally 88% of companies view sustainability as a potential driver of long-term value, and more than 80% say they can measure returns on investment for sustainability-related projects.
Forward-looking businesses are decoupling growth from emissions, creating value for shareholders, customers, and communities alike. 91% of Indian CXOs surveyed by Deloitte reported increasing sustainability investments over the past year, signaling that climate action is central to strategy, not sidelined as CSR
From Infosys reducing per capita electricity consumption and saving millions in operational costs, to Mahindra & Mahindra’s work with internal carbon pricing that drives both emissions reductions and profitability, real-world examples are steadily disproving the trade-off myth.
Sustainability as long term business lever
Treating sustainability as a cost center leads to missed opportunities. The truth is, sustainability creates strategic and financial value. It helps mitigate risks, strengthens brand equity, drives product innovation, and builds investor confidence.
Procurement trends are shifting too. Buyers are 2.3x more likely to engage with socially responsible suppliers, and capital markets are now favouring firms with credible transition plans.
In India, sustainability-linked loans, performance-based green incentives, and ESG-index funds are beginning to shape the financial future. Companies that build transparency and data integrity into their sustainability journeys are already ahead.
Understanding Sustainability Fatigue and How to Respond Smartly
Across India and globally, businesses are starting to feel the weight of multiple sustainability mandates, from India’s BRSR requirements to global frameworks like GRI and emerging disclosures required by clients.
The pressure to disclose is real, but so is the fatigue. Teams are often working with scattered spreadsheets, unclear emissions boundaries, and inconsistent data formats, while still being expected to meet assurance-grade standards. The risk of greenwashing accusations is also high. As scrutiny grows, any inconsistency whether due to data gaps, poor assumptions, or unclear boundaries can backfire. Teams that were once praised for voluntary disclosures now hesitate, leading to greenhushing.
The real challenge isn’t the ambition of these frameworks, it’s that most internal systems were never designed for this kind of work. As a result, what should be strategic becomes firefighting. But the solution isn’t to push back on regulation, it’s to equip teams with better systems. Systems that reduce manual back-and-forth, bring built-in audit trails, and make it easier to align multiple functions behind clear, transparent reporting.
Sustainability fatigue isn’t just a symptom of overwork, it’s a signal that companies urgently need smarter tools to turn compliance into capability.
The Role of Policy and Market Incentives
Policy and market incentives play a big role in helping businesses take climate action with confidence. When governments set clear, consistent rules—like India’s PAT scheme that rewards energy-efficient companies, it gives businesses a reason to invest in sustainability without second-guessing.
Global examples like the US Inflation Reduction Act show how tax breaks and subsidies can unlock massive green investments. The message is clear: when policies support the transition, sustainability becomes a smart business move, not just a compliance task. It reduces risk, attracts capital, and rewards early action, turning regulation into a growth opportunity rather than a roadblock.
Aligning Sustainability with Strategy: The Clear Business Case
When sustainability is treated as a compliance exercise, it feels like a cost. But when it is embedded into business strategy, as a lens for managing risk, unlocking efficiency, and shaping future markets, it becomes a source of competitive advantage.
Take resource allocation. Companies with a strategic view of their emissions and climate risks are better positioned to prioritise investments, whether it's transitioning to renewable energy, localising supply chains, or innovating lower-impact products. These are not just environmental actions; they reduce cost volatility, improve resilience, and create long-term value.
In capital markets, the shift is already underway. Investors are pricing in climate exposure. Disclosure mandates like SEBI’s BRSR and global frameworks like ISSB or CSRD are not ends in themselves, they are tools to help businesses tell a credible story to capital providers. A company that aligns sustainability with its business model builds trust. Trust attracts capital. And capital fuels growth.
Even operationally, sustainability brings clarity. Understanding where emissions sit across the value chain often reveals inefficiencies, be it energy-hungry processes, over-reliance on high-risk vendors, or unsustainable logistics. Fixing these isn’t just good for emissions, it’s good for margins.
Ultimately, the companies that will thrive are those that treat sustainability not as a side project, but as strategic infrastructure. The strongest growth stories ahead will be those where climate alignment and commercial success move in lockstep. Not because it's idealistic, but because it's increasingly inevitable.
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