Business nowadays is not just using raw material and producing goods for profit but rather what one gives to your environment and surrounding, prioritizing sustainable business models for long-term success. Sustainable practices while contributing to the efforts to save Planet Earth attract the customers who value positive contributions.
To highlight this evolution of business and emphasise that modern cost accounting goes beyond profit reporting, the Institute of Cost Accountants of India (ICMAI) organised the ‘Global Summit 2023’.
The aim of the Global Summit 2023 was to underscore the importance of incorporating Environmental, Social, and Corporate Governance (ESG) principles in corporate decision-making.
Held at Manekshaw Centre in New Delhi, the summit focused on leveraging data science, artificial intelligence (AI), and machine learning (ML) to drive ESG strategies.
During the event, the ICMAI highlighted the evolving role of cost accountants in providing crucial data and statistics to management for informed decision-making.
The two-day event, with the theme “Unlocking Sustainability: G20 Presidency Paves the Way for an ESG-driven New World Order”, explored India’s G20 presidency theme of “Vasudhaiva Kutumbakam” or “One Earth, One Family, One Future.” The focus was on implementing ESG strategies to achieve this vision.
In his presidential address, CMA Vijender Sharma, President of the ICMAI, underscored the significance of ESG practices for corporate governance. He stated, “The ultimate objective is different now as we are responsible for the environment, society, and governance. Participants from various sectors, including the public and private sectors, government, and regulatory bodies, are discussing and updating themselves on ESG trends and market developments.”
Speaking to The Statesman, Sharma shared his commitment to achieving sustainable and enduring profitability for long-term survival. He underlined that we have inherited resources from our ancestors, which we must repay as a debt to future generations, making us their custodians. Therefore, it is crucial to ensure the optimal utilization of these resources.
To promote sustainable agriculture, the ICMAI has introduced diplomas that teach farmers new farming techniques. Sharma acknowledged the resistance that traditional farmers may have towards changing their methods but stressed that adaptation is beneficial for their own well-being.
Additionally, it provides training to retired army officials who desire to work on their farmland. The organization aims to reduce rural-to-urban migration by offering employment opportunities within the village.
Dr. Subhas Sarkar, Union Minister of State for Education, addressed the summit virtually and stressed the importance of sustainability and ESG in achieving a sustainable future.
He noted that educational institutions also play a vital role in promoting ESG principles through environmental education, social responsibility, governance, and ethical standards.
Lieutenant General Samir Gupta, Director General, Financial Planning, Indian Army, stressed the significance of considering the environment and sustainability for financial growth. The ICMAI provides cost accounting training to the Indian Army, offering better employment opportunities to soldiers after retirement. The institute has also supported the Agniveer scheme and actively promotes sustainability initiatives.
Atul Sobti, Director General of Standing Conference of Public Enterprises (SCOPE), praised India’s Public Sector Undertakings (PSUs) for their sustainable practices and contribution to GDP growth. He highlighted that a significant majority of Indian PSUs, about 76 per cent, are profitable compared to the US, where over 50 per cent of PSUs operate at a loss. He stated that the summit’s primary vision is to create awareness and contribute to achieving one of the six G20 goals, namely Environmental, Social, and Corporate Governance (ESG). India, being the top performer among G20 countries in terms of Nationally Defined Contributions, is expected to successfully make the corporate world and MSMEs sustainable, aligning with long-term objectives.
CMA H Padmanabhan, Chairman of GS2023 and Former Vice-President of the ICMAI, among other distinguished guests were present on the occasion.
The ICMAI is a statutory professional body established under the Ministry of Corporate Affairs, Government of India, dedicated to regulating and developing the profession of Cost and Management Accountancy.