By Rohit Bhagawat
NEW DELHI (India CSR): Business responsibility has moved from the margins to the mainstream. Earlier approaches that relied on episodic philanthropy or standalone community initiatives are no longer sufficient. Climate change, inequality and rising expectations around transparency and governance now play a direct role in how companies are evaluated by investors, customers and employees. Each stakeholder is keen to assess how each lever sustains long-term growth.
The pressure is showing up everywhere. Environmental disruption can interrupt operations, while social inequities can weaken workforce participation and consumer trust. Nearly 90% of global investors nowfactor ESG considerations into decision making, while three out of four consumers say they’ll walk away from companies perceived to cause harm to people or the planet.
Why ESG feels different
CSR initiatives often operate on limited timelines, delivering localized impact without influencing core business decisions. ESG, by contrast, is embedded into how organizations plan, operate and measure performance. It guides decision-making in procurement and hiring, sets measurable goalsand puts sustainability metrics on par with profit lines.
This transition is being driven by more than values alone. Tighter regulation, greater market scrutiny and the interconnected nature of modern business mean that inaction carries material risk. The financial returns are striking as well: companies at the front of the ESG curve have achieved an average annual return of 12.9%, proving that sustainability can be a competitive advantage rather than a cost center.
India has moved quickly in this new reality, aligning its ESG agenda closely with national development priorities such as emissions reduction, workforce inclusion and improved access to healthcare and education. Against this backdrop, the country has acted swiftly quickly to shift ESG from obligation to opportunity. With disclosure now mandatory for the largest listed companies, ESG is increasingly embedded into corporate strategy, serving both as a mechanism to manage systemic risk and a lever for long-term value creation. For organizations, this is not about signalling intent or meeting minimum requirements; it is about building resilient structures that can absorb economic volatility, respond to environmental pressures and sustain trust over time.
Impact that runs in two directions
ESG delivers results inside the business and well beyond its doors. Internally, it shapes culture and workforce engagement. Employees increasingly seek alignment between personal values and organizational purpose and ESG commitments influence attraction, retention and leadership development. Exposure to ESG-led initiatives also build capabilities such as systems thinking, cross-functional collaboration and decision-making under uncertainty.
Externally, ESG strengthens long-term community relationships. A solar installation might power homes today, but its real imprint is the jobs and industries it supports for decades. Rural training programs give people skills that can turn into supplier contracts or entirely new businesses, creating local economies that sustain themselves.
Supply chains are also seeing increased ESG accountability. In leading companies, the proportion applying clear, productspecific sustainability standards to their suppliers have climbed from 28% in 2023 to 42% today. That change pushes accountability far beyond the company itself, influencing every stage from sourcing raw materials to putting the finished product in customers’ hands.
At ZS, this approach is reflected through ZS Cares. By applying experience in data, healthcare and analytics to social challenges, ZS tackles problems like poor access to medical care and gaps in education. Aligning community programs with core capabilities helps ensure outcomes are both scalable and sustainable.
Closing the capability gap and looking ahead
ESG is entering its next phase. The central question for organizations is no longer whether initiatives exist, but whether outcomes can be demonstrated and sustained. This demands credible data, open reporting and governance structures that support accountability.
India is well positioned in this environment,supported by expanding renewable energy infrastructure, a highly adaptable workforce and strong integration into global supply networks. As sustainability standards tighten globally, organizations that embed ESG early will be better placed to compete in markets where ESG credentials increasingly influence partnership and procurement decisions.
Where CSR built goodwill, ESG now shapes organizational identity. Reputations will be defined by verified contributions to climate resilience, social equity and responsible governance. CSR is not disappearing; it is being absorbed into broader ESG strategies that link community impact with enterprise performance. Organizations that make this shift will not only manage risk more effectively but also position themselves to lead in a rapidly changing business landscape.
About the Author
Rohit Bhagawat, Global ESG Committee member and office managing principal, ZS
(India CSR)
