Experts position ESG as opportunity, flag execution gaps and call for standardised, scalable frameworks across sectors
Environmental, Social and Governance (ESG) frameworks are increasingly being shaped by execution rather than intent, as organisations move from commitment to implementation. While adoption has accelerated, gaps in capability, ownership and data integration are emerging as critical constraints, raising questions about how effectively sustainability goals are being translated into measurable outcomes across sectors.
At the same time, ESG is evolving from a compliance-driven requirement into a strategic business lever influencing investor confidence, operational efficiency and long-term value creation. Industry voices suggest that while awareness has improved significantly, the real challenge lies in embedding ESG into core organisational processes rather than treating it as a parallel reporting exercise.
ESG As Business Imperative, Not Optional
ESG is increasingly being positioned as central to business strategy, with organisations recognising its direct link to competitiveness and long-term growth. The focus has shifted from whether ESG should be adopted to how effectively it can be implemented across functions, ensuring that sustainability goals align with operational priorities and measurable business outcomes over time.
Aneesh Kadyan, Senior Executive Director, CBRE South Asia, said ESG has become a core requirement for businesses navigating uncertain global conditions. “It is something we have to address in a very focused manner as business leaders,” he said, emphasising that sustainability is no longer optional but integral to decision-making.
He added that while awareness is widespread, execution remains inconsistent, particularly in integrating ESG across departments. Weak frameworks, he noted, can impact investor confidence, tenant demand and talent attraction, making sustainability a key differentiator. He stressed that organisations must move beyond intent and build robust systems to implement ESG effectively.
ESG As A Lens To Measure And Address Risks
Experts argue that ESG does not create new risks but instead provides a structured framework to identify and address existing inefficiencies across sectors. Particularly in urban and residential ecosystems, sustainability challenges such as waste, governance and resource management require systematic measurement and intervention to drive meaningful and scalable improvements.
Shreya Mody, Co-founder, BlockPilot, said ESG helps quantify what is already going wrong and enables organisations to convert those challenges into opportunities. She highlighted issues such as large-scale waste generation and governance gaps in housing ecosystems, stressing the need to address sustainability at a broader, community-driven level.
She further noted that ESG adoption remains limited beyond large corporates, particularly among SMEs and housing societies. Mody emphasised the need for simpler, scalable frameworks and stronger ownership mechanisms to ensure wider participation, adding that without inclusive adoption, sustainability efforts will remain fragmented and fail to deliver system-wide impact.
Lack Of Standardisation And Ecosystem Alignment
Despite growing adoption, the absence of standardised ESG frameworks continues to create inconsistencies in reporting and evaluation. Multiple benchmarks and methodologies make it difficult for organisations to assess performance uniformly, limiting transparency and comparability while also slowing down the broader alignment required to scale sustainability efforts across industries and value chains.
Rajesh Sharma, Founder, Matrix Sustainability, described ESG as an opportunity to correct past inefficiencies and align industries with long-term sustainability goals such as net zero, zero waste and zero harm. He said ESG provides structured pathways for organisations to transition towards more responsible and efficient operating models.
However, he highlighted that the lack of uniform reporting standards creates confusion, with organisations often measuring performance differently. Sharma stressed that large companies must take greater responsibility in aligning their supply chains and ensuring credible, standardised ESG reporting to drive consistency and build trust across the broader ecosystem.
Cost Of Inaction Higher Than ESG Investment
While ESG is often viewed as a cost-heavy exercise, industry voices suggest that the real financial risk lies in not implementing it effectively. The debate is gradually shifting from upfront investment concerns to long-term efficiency, risk mitigation and value creation driven by well-designed sustainability strategies.
Kadyan said organisations must look beyond immediate costs and focus on long-term impact. He noted that the cost of non-compliance or poor ESG practices can be significantly higher, especially in terms of regulatory risks, business disruptions and reputational damage.
He added that when implemented correctly, ESG frameworks can improve operational efficiency and reduce costs over time, particularly through better resource management and integrated processes. Aligning sustainability with core operations, he said, enables organisations to unlock both financial and strategic value.
The discussion took place at the BW Facility Management Conference & Excellence Awards 2026 (3rd Edition).
By: Naushad
