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With India dedicated to achieving its sustainability goals, the overall effort of multiple stakeholders is crucial in advancing and getting closer to the aim. At the same time, as climate change continues to have detrimental impact on the environment, the phenomenon demands urgent action on our part – as individuals, as nations, and as an ecosystem.
To be able to build a sustainable tomorrow, we need to work and progress in tandem with the economic as well as the sustainability goals. India is the fastest-growing startup ecosystem in the world – and adding 80 startups per day. This addition counts for a substantial share of employment, business, and growth in the country subsequently affecting the fate of how businesses operate. Several stakeholders have been aligning and realigning their business goals to create long-term value for the ecosystem. The women workforce, for instance, has been playing an imperative role in keeping sustainability as a focal point of their businesses and innovations. For today, let us dive deep into how they are facilitating a positive change in the field and making place for a more responsible economic growth.
The entrepreneurship landscape for women in the country is evolving rapidly. In 2017, 29.5% of all start-ups registered with DPIIT (Department for Promotion of Industry and Internal Trade), Ministry of Commerce and Industry, Govt. Of India had at least 1 woman director. As of 7th November 2022, the same percentage has exponentially increased to 47%. In addition to this, there is an increased representation of women entrepreneurs across sectors such as healthcare and lifestyle, food and beverages, IT Services, and education among others.
With a general shift towards environment-friendly practices, at the backdrop of COP 26 and COP27, a push from the Govt. towards sustainability and Corporate Social Responsibility (CSR) disclosures through the Securities and Exchange Board of India (SEBI) and the Company’s Act 2013, businesses and corporates are actively incorporating ESG into their Business Responsibility and Sustainability Reporting (BRSR)*. There has been a steady shift towards treating ESG as more than just an involuntary mandate. While investors are looking for meaningful enterprises to place their bet on, women entrepreneurs are also making effective changes in the right direction. It can be argued that a key focus area of women-led start-ups is sustainability and the trend is reflected in industries across dynamic products, services, and practices.
In the FMCG industry, for instance, women-founded unicorns such as NYKAA and Mama Earth are categorically manufacturing makeup products that are Cruelty-free/Chemical-free and vegan-friendly. Several startups, such as Zouk, exclusively manufacture products using vegan materials only, such as vegan leather. There has also been a rise in the demand for handmade products and accessories, (especially in the art, textile, and handicraft sectors) and these significantly reduce emissions arising across the supply chain. Many women-led startups, with their customer base predominantly in metropolitan cities in India and abroad, outsource their raw materials and production from rural and semi-rural areas, employing traditional artists and restoring many traditional crafts in the process. These social enterprises are aligning traditional products to meet modern demands while also maintaining the original essence of the art form – iMithila led by Ruchi Jha is one such startup registered with DPIIT engaged in promoting Mithila or Madhubani painting, one of the oldest art forms of the world.
With post-millennials coming in the picture, the shift to the rental and the thrift shop industry – a market segment that essentially involves rotating second-hand or pre-used garments – has been quite prominent with such stores fast gaining momentum, both online and offline. Such stores, mostly run by women, sell products that are unique, relatively cheap and reduce environmental burden significantly – giving an alternate route to fast fashion. Startups such as Relove are working towards promoting a more circular economy by providing a platform for the resale or rental of already used or preloved goods. Sustainable fashion and responsible clothing brands, such as Edamamma and Sui, have also been fast gaining demand and momentum in India.
Further, the waste management and packaging industries have also seen a phenomenal shift towards sustainability in the past few years. With the Government of India pushing towards phasing-out single-use plastic through the Plastic Waste Management Amendment Rules, 2021, and the draft regulations on the Extended Producer Responsibility (EPR) guidelines notified as of February 2022, many MNCs are switching towards more environmentally friendly alternatives. These sectors are particularly carpeted with innovations, from eatable utensils replacing plastic packaging to 100% biodegradable bottles giving competition to its plastic alternatives. Startups, such as Revy Environmental Solutions, with its core operations in green technology, are developing solutions to transform waste into reusable resources. The startup Happy Turtle works towards providing reusable alternatives to single-use plastic. Both are women-led and winners of the National Startup Awards (NSA) 2021.
With leading global economies heading towards an inclusive, ambitious, decisive, and action-oriented future under India's presidency, (as also highlighted in the recent 2022 G20 Summit at Bali), we must unite and come together to work with one of the most remarkable and valuable resources our nation has – our women workforce. As per a report by McKinsey, boosting women’s representation and participation in employment can alone potentially grow India’s GDP (Gross Domestic Product) by approximately USD 700 billion by 2025. Therefore, in our aspiration to build a sustainable economy, we need to promote the work of the women workforce and especially entrepreneurs that are working to build not just a bigger but also a better India 2.0.
Sources:
1.Startup India, DPIIT
2.Economic Survey of India, 2022
3.Security and Exchange Board of India (Link)
4.McKinsey report – The power of parity: Advancing women equality in India, 2018 (Link)
