India's ESG rise gains ground as Godrej Consumer tops global ranking

Newspoint
India’s place in the global sustainability conversation is evolving. Once viewed primarily as a fast-growing market navigating environmental and social challenges at scale, the country is increasingly being recognised for creating practical, cost-effective solutions in areas such as efficient manufacturing, resource management, inclusive supply chains and low-waste innovation.
Hero Image

That shift is becoming more visible in international benchmarks. Among the most closely watched is the Dow Jones Best-in-Class Indices , based on the S&P Global Corporate Sustainability Assessment (CSA), which evaluates companies across emissions management, labour practices, packaging, water stewardship, sourcing standards and governance. In the latest assessment, more than 9,200 companies were reviewed globally*, offering a snapshot of how businesses are performing against increasingly rigorous sustainability standards.

It is within this evolving global landscape that Godrej Consumer Products has been ranked No.1 globally in the personal products sector on the Dow Jones Best-in-Class Indices 2025. The company received a score of 89 out of 100 in the CSA 1, highlighting the growing competitiveness of Indian companies on global sustainability measures.

Newspoint
From compliance to competitive advantage
Pakzan Dastoor, Head – Sustainability and CSR, Godrej Industries Group, said the company’s sustainability journey has evolved steadily over the past decade.

“Over more than a decade, GCPL’s sustainability journey has evolved from compliance to competitive advantage,” Dastoor said, adding that efforts initially began through smaller factory pilots before being integrated across research and development, manufacturing, supply chain and finance functions.

This evolution reflects a growing trend among large firms towards more sustainable practices throughout their operations. Sustainability is now being integrated with FPA (Financial Performance Analysis)/KPI (Key Performance Indicator) measurement systems as opposed to having its components treated independently of one another.

Some companies are implementing these changes into their operating decisions by using environmentally sound manufacturing processes, minimising energy consumption in production, redesigning packaging materials, lowering the amount of raw materials used, and increasing the quality and standards of sources for their products.

Newspoint
Where product innovation meets sustainability
Research and development is becoming a key driver of that transition. Venkateswara Rao Yadlapalli, Global R&D Head at Godrej Consumer Products, said the company’s product development efforts are centred around two broad principles: materiality and circularity.

More specific interventions include: limiting the use of environmentally hazardous chemicals in formulation or manufacturing products; improving efficiency so as to decrease the amount of greenhouse gases emitted when products are manufactured; redesigning packaging materials and methods.

According to the company, it has exceeded its previous goal of decreasing its use of plastics by 20% (actually achieving approximately a 28% reduction compared to its baseline) and has introduced several brands (e.g., GoodKnight and Ezee) that utilise bottles produced with 50% recycled plastics 1. Another area of focus for the company is developing concentrated product formats, which allow for less packaging, and consequently fewer transportation emissions (because they enable smaller, lighter shipments).

These types of interventions are becoming increasingly important throughout the FMCG sector, where substantial quantities of packaging waste and emissions from logistics continue to pose a challenge.

Why India’s role is gaining attention
The recognition also reflects a wider shift in how Indian companies are being viewed in global sustainability conversations.

Dastoor said, “India is no longer just an emerging market in sustainability conversations; it is becoming a solutions hub.”

One reason for the difference is scale. Indian firms have to consider many different consumers in their business operations, have many suppliers that operate in many different ways, and are very cost sensitive, all of which force the innovation prong towards practical solutions that can be found in other places that have similar situations.

In many cases, Indian companies are coming up with a solution under the constraints that present themselves to companies in other emerging markets, where water use efficiency, low-cost and biodegradable packaging, and inclusive sourcing models are just a few examples.

In addition, the degree of competition in that sector makes it absolutely critical to offer a product that has equal levels of both affordability and sustainability if you want to establish a competitive advantage.

What comes next
Even so, many of the next-generation sustainability challenges remain complex. Plastic circularity, advanced recycling systems, alternative materials and responsible sourcing ecosystems often require collaboration beyond any single company.

Godrej says it is working on such areas through initiatives including a Plastic Innovation Accelerator developed with partners such as IIT Madras, aimed at supporting scalable alternatives, recycling technologies and circular material ecosystems.

That collaborative model may become increasingly important as companies move from incremental improvements to system-wide change.

For the broader industry, global rankings may matter less as trophies and more as signals of operational readiness. As supply chains tighten and expectations rise, the companies best positioned for the future could be those treating sustainability not as a reporting exercise, but as a core business discipline.

References:
  • https://www.godrejcp.com/good-and-green
  • Note*: The information has been taken from the official press release issued by Godrej Industries.

    Disclaimer: This article has been produced on behalf of Godrej Industries by Times Internet’s Spotlight team.