Building a Sustainable Future: The Role of Green Jobs, ESG and Industry 4.0 in the Indian Green Economy

By Aayushi Jauhari, Lead, Indian ESG Network January 15, 2023

ESG and its importance

The Environment, Social, and Governance (ESG) Principles are a framework of principles used to assess a company's sustainability and social impact. ESG is becoming increasingly crucial for businesses as concerns about climate change and social responsibility emerge.

The significance of ESG resides in its potential to raise awareness of various climate challenges and push firms to adopt environmentally friendly practises and regulations. Employees and stockholders are treated equally in terms of the social component of ESG, and their health and safety are taken into account. Governance entails making company processes transparent and compatible with environmental and social ideals.

Incorporating ESG practises into a corporate strategy has various advantages. To begin with, ESG provides a competitive advantage by distinguishing the firm from its competitors and promoting it as a responsible and sustainable organisation. Second, it attracts investors and lenders who are searching for long-term investments. Third, it boosts financial performance by lowering expenses, eliminating regulatory and legal interventions, and optimising investment and capital expenditures. Fourth, it promotes the company's commitment to social and environmental responsibility, which increases customer loyalty. Finally, it ensures the sustainability of firm operations by lowering the organization's environmental imprint and fostering long-term growth.

ESG adds value to businesses in multiple ways, according to research and experience. For starters, it promotes top-line development by providing new business possibilities and raising customer demand for environmentally friendly products and services. Second, it saves money by increasing energy efficiency, minimising waste, and encouraging resource conservation. Third, it reduces regulatory and legal intrusions by ensuring compliance with environmental and social regulations. Finally, it maximises investment and capital expenditures by supporting ethical and sustainable behaviours.

To sum up, ESG is crucial for businesses because it raises awareness of many climate challenges and pushes firms to adopt practises and regulations that are better for the environment, society, and corporate governance.

ESG for Industry 4.0 -

Industry 4.0, often known as the "fourth industrial revolution," is defined by the incorporation of modern technology into manufacturing and other industries, such as artificial intelligence, the Internet of Things, and automation. The environment, social, and governance can be a primary emphasis for Industry 4.0.

ESG is a set of standards for assessing a company's sustainability and social impact.

Incorporating ESG into Industry 4.0 may assist businesses in not just meeting legal obligations and improving their reputations but also in identifying new business prospects and improving their bottom lines. Implementing sustainable manufacturing practises, for example, may help businesses decrease their environmental impact while also saving money on energy expenditures. Investing in employee health and safety can help minimise absenteeism and increase productivity. Additionally, maintaining ethical and transparent governance may help to build confidence among consumers, investors, and other stakeholders.

Environmentally, Industry 4.0 technology can help firms reduce their carbon footprint by enhancing energy efficiency and utilising renewable energy sources. Companies, for example, may monitor and optimise their energy consumption in real time using IoT-enabled smart sensors and advanced analytics, discover areas for improvement, and decrease waste. Furthermore, using modern automation technology can assist businesses in reducing their dependency on human labour and lowering their environmental impact.

In terms of societal effect, Industry 4.0 may assist businesses in improving employee well-being by introducing worker-centric technology. Companies, for example, may deliver real-time information and assistance to employees using wearable devices such as smart glasses and smart watches, minimising the risk of harm and increasing productivity. Furthermore, using virtual and augmented reality technology may assist businesses in providing immersive training experiences, improving skills, and preparing staff for future positions.

By applying advanced data analytics and automation technologies, Industry 4.0 may help firms increase transparency and accountability in terms of governance. Companies, for example, may utilise blockchain technology to establish tamper-resistant and transparent records of their activities, which can be used to improve supply chain visibility and traceability. Furthermore, firms may use machine learning algorithms to monitor and analyse their operations in real time, discover areas for development, and take remedial action.

Finally, adopting ESG concepts into Industry 4.0 may assist businesses in meeting regulatory obligations, improving their reputations, identifying new business prospects, and increasing their bottom lines. Furthermore, Industry 4.0 technology may assist businesses in reducing their environmental impact, improving employee well-being, and increasing transparency and responsibility.

The why behind launch of Indian ESG Network -

Conclaves and seminars on environment, social, and governance (ESG) are essential in India for several reasons:

1. Raising awareness: By conducting ESG conclaves and seminars, organisations and industry leaders may promote awareness within the larger business community about the need for sustainable and responsible business practices. This can aid in the promotion of a culture of sustainability and corporate social responsibility in Indian industry.


2. Sharing best practises: Conclaves and seminars may provide businesses and professionals with a chance to exchange best practises and case studies on how to apply ESG principles in a commercial environment. This can assist other businesses in learning from others' experiences and identifying methods to enhance their own ESG performance.


3. Networking: Attendees at conclaves and seminars may have the opportunity to network with other industry leaders and professionals, fostering collaboration and collaboration on sustainability efforts.


4. Driving change: ESG Conclaves and seminars may stimulate good change in firms and the industry as a whole by engaging stakeholders such as enterprises, investors, NGOs, and policymakers. It may aid in the development of norms, rules, and objectives to guarantee that Indian businesses operate in a sustainable and socially responsible manner.


5. Policy and Advocacy: These events also allow regulators and policymakers to interact with industry leaders and experts, which may help shape the creation of legislation and policies to encourage sustainable and responsible business practises in India.


6. International comparison: Conclaves and seminars can give firms a chance to learn from global best practises and international ESG standards, bringing Indian firms up to speed.

Finally, hosting ESG conclaves and seminars in India is crucial because it raises awareness, shares best practices, builds networks, drives change, informs policy, and promotes worldwide comparison. Sustainability and ethical business practises are becoming increasingly crucial, not just for reputation and branding but also for long-term commercial success. ESG conclaves and seminars can help India build a culture of sustainability, eventually contributing to the country's long-term economic and social well-being.

Desired Outcome: Our objective through these conclaves is to initiate discussions on redefining the skilling needs of the country and to increase awareness about promoting skills development for green jobs and the green economy.

Establishing that skilling needs awareness and information about the green economy are crucial, as well as how they can be applied to fulfil India's existing green job requirements, may be done in a variety of ways through an ESG conclave:

The conclave can incorporate case studies and presentations from firms and organisations that have effectively established skilling programmes for green jobs by demonstrating successful instances. This can illustrate the value and success of such programmes while also inspiring other organisations to adopt similar efforts.

The conclave can have speakers and specialists who can give information on the existing and expected need for green employment in India, as well as the specific skills and expertise required for these occupations, by emphasising the rising demand for green jobs.

This can help participants understand the importance of having the skills and information required to flourish in the green economy.

The conclave can contain workshops, panel discussions, and other activities that focus primarily on skill training for green careers by concentrating on skill building. These workshops may include information about training programmes, certifications, and resources that are available to assist individuals and organisations in developing the skills required for green careers.

By emphasising the importance of government and industry collaboration, the conclave can include panel discussions and speakers who can emphasise the necessity of government and industry partnership in establishing skilling initiatives. This can help promote the concept that skilling and job creation in the green economy are shared responsibilities and can motivate government and business leaders to participate.

The conference can feature vocational training colleges that can present information on their programmes and how they can be customised to meet the unique skilling demands of the green economy. This can help participants become more aware of the many training programmes that are offered and how they might benefit from them.

In conclusion, an ESG conclave can help to raise awareness and understanding about the green economy and the specific skilling needs required to fulfil the current green job requirements in India by showcasing successful examples, highlighting the demand for green jobs, focusing on skill building, emphasising the importance of government and industry collaboration, and featuring vocational training institutes. It may also demonstrate how partnerships between the government, industry, and vocational training colleges are required for India to establish a sustainable and green economy.

Upskilling for Green Economy -

As the globe moves toward a green economy, the demand for green skill development and upskilling is becoming increasingly crucial. Governments and companies throughout the world are attempting to reach their Net Zero targets and smooth the transition to a more sustainable future, and promoting green skills and generating green employment will be essential components in accomplishing this aim.

To achieve this, a tight collaboration between the public and private sectors is required in the areas of skill development and capacity building. This collaboration must be supported by forward-thinking policies and long-term goals that assure the development of the essential skills and competencies to fulfil the needs of the green economy. One country that understands the enormous opportunity afforded by the green economy is India.

India, for example, recognises the tremendous opportunity afforded by the green economy and is taking measures to capitalise on it. However, India is not acting alone in this endeavour. Many other nations are also taking initiatives to boost green skill development and employment creation.

Meeting the demands of the green economy will necessitate upskilling and the development of green competencies. This includes providing people with the training and information they need to flourish in green occupations such as renewable energy installation, energy efficiency, and environmental management.

Not only that, but it also implies having the necessary knowledge and capacities to create and produce sustainable goods, apply sustainable business practises, and comprehend the green economy's rules and policies.

Upskilling can also help bridge the skills gap and alleviate the unemployment problem. The green economy will generate new job opportunities in a variety of industries, including renewable energy, the circular economy, eco-tourism, sustainable agriculture, and many more. It is critical to have a workforce with the necessary skills to capitalise on these new possibilities and contribute to the expansion of the green economy.

Finally, establishing green competencies and upskilling are critical to addressing the demands of the green economy. The public and private sectors must work together to develop long-term policies and goals to encourage the development of necessary skills and capacities. India, like many other countries, sees the green economy as an opportunity and is taking measures to capitalise on it by boosting green skill development and creating green jobs. We can lay the foundation for a sustainable and green future if we have the proper skills and talents.

Need for modifying NSQF -

(To be adapted for the skills framework in meeting ESG compliance requirements.)

The National Skill Qualification Framework (NSQF) is a system in India that recognises and promotes skills and qualifications. However, as the world transitions to a green economy and businesses focus on meeting environmental, social, and governance (ESG) compliance standards, NSQFs may need to be modified to reflect the skills and knowledge required for the green economy.

The incorporation of generic skills such as problem-solving, critical thinking, and communication, which are required for achieving ESG compliance standards, is a primary focus area for revising NSQFs in the context of the green economy. These abilities enable individuals to study, evaluate, and make decisions on complicated environmental and social responsibility issues, as well as successfully communicate these outcomes to stakeholders.

Furthermore, technical skills specific to the green economy must be included in the NSQFs, such as understanding renewable energy, energy efficiency, the circular economy, sustainable agriculture, green building, electric vehicles, smart grid management, environmental management, sustainable transportation, green supply chain management, and sustainable product development.

To adapt NSQFs to the green economy, it would be important to collaborate with industrial, academic, and research organisations, as well as other stakeholders, to determine the unique skills and knowledge required for ESG compliance. This approach would entail assessing the present NSQFs and identifying which skills and certifications should be added or adjusted to align with the skills and knowledge necessary for the green economy.

Incorporating these generic and technical skills and knowledge into the NSQFs will aid in ensuring that the Indian workforce has the skills and certifications required to flourish in the green economy.

Finally, as the world moves toward a green economy and businesses focus on satisfying environmental, social, and governance (ESG) compliance standards, NSQFs must be updated to reflect the skills and knowledge required for the green economy. The modification process comprises the incorporation of generic skills such as problem-solving, critical thinking, and communication, as well as technical skills relevant to the green economy. This modification will assist in guaranteeing that the Indian workforce has the essential skills and qualifications to compete in the green economy, as well as align the skills required for the nation's existing and future occupations.

Is the existence of the Green Jobs Skill Council significant to ESG?

The value of green job skill councils cannot be understated, especially as organisations strive to satisfy Environmental, Social, and Governance (ESG) compliance standards. A skill council is a group of specialists and industry leaders who collaborate to create and promote industry-specific skills and credentials. They are in charge of defining the skills and knowledge necessary for certain sectors, as well as establishing training and education programmes to assist individuals in acquiring such talents.

The green economy, which includes businesses such as renewable energy, energy efficiency, circular economy, sustainable agriculture, green building, electric cars, and smart grid management, is a fast-increasing industry that need a competent workforce.

Green work skill councils may assist identify the precise skills and knowledge needed for the green economy and establish training and education programmes to help individuals obtain such abilities.

A skill council for green occupations, for example, might collaborate with industry experts to create training programmes that educate people how to instal and maintain solar panels or wind turbines, or how to design and execute sustainable transportation systems. Green job skill councils may help to guarantee that the workforce has the essential skills and knowledge to flourish in green employment by offering this training and education.

Furthermore, via skill councils, the development and promotion of industry-specific skills and certificates may have a beneficial influence on ESG compliance.

Companies may better accomplish their environmental and social responsibility goals by ensuring that their personnel have the necessary skills and expertise. This improves their reputation, increases brand loyalty, and attracts investors.

Finally, green job skill councils are critical for creating and marketing the skills and information required for the green economy. These councils can help identify the specific skills needed for the green economy and establish training and education programmes to help individuals obtain those talents. Furthermore, the development of industry-specific skills and credentials through skill councils may have a beneficial influence on ESG compliance by ensuring that the workforce has the necessary skills and knowledge. This not only assists businesses in accomplishing their objectives, but it also improves their reputation, increases brand loyalty, and attracts investors.