Energy and Utilities
The crucial contribution of business process outsourcing to environmental responsibility
Once a niche strategy of contracting out non-core business functions, Business Process Outsourcing (BPO) has evolved into a staple for many businesses. As a result, this $350.2 billion mammoth industry has the potential to drive change across industries. In today’s increasingly environmentally conscious world, this means the BPO industry is uniquely placed to drive sustainability in business, helping businesses adopt green practices.
BPO industry driving sustainability in business
Business houses have been focusing on designing their operations to meet current needs without jeopardising the future. However, what started as a strategy to gain a competitive edge has evolved into a critical element of a successful business. With increasing expectations of sustainability in business operations like manufacturing and logistics among others, navigating the ESG (environmental, social, and governance) standards has become challenging.
This is where the BPO industry comes into the picture, helping push sustainability. The BPO industry has contributed significantly to social sustainability, offering employment opportunities to individuals from developing nations and paving the way for infrastructure development and a higher standard of living. Many BPO organisations have also turned to green BPM and greener technologies and practices, investing in the fight against climate change and helping their clients minimise the environmental impact of their operations.
The BPO industry is paving the path for environmentally responsible, ethical, and conscious organisations. Some common environmentally sustainable BPO initiatives helping businesses are:
Embracing energy- and water-efficiency
Energy and water consumption are among the highest sources of environmental impact in many industries. Embracing energy-efficient practices and optimising water consumption in day-to-day operations is a great way to lower utility bills, carbon footprints, and natural resource consumption.
Investing in renewable energy and green technologies
In addition to embracing energy-efficient practices, investing in renewable energy (like solar or wind) and green technology is also a great way to promote sustainability in business. This involves prioritising environmentally responsible options when it comes to infrastructure development and appliance selection.
Promoting an eco-friendly work environment
No matter which sustainable business practices you implement, they cannot succeed without employee engagement and an eco-friendly work environment. Promoting “green awareness” among employees, encouraging them to be conscious of and minimise the environmental impact of their actions, and facilitating hybrid or remote work are some steps you can take to build an eco-friendly workplace.
Moreover, business process outsourcing in the energy and utilities industry can help streamline day-to-day operations by leveraging next-gen technologies to sustainable energy management solutions that can empower a greener and more sustainable future.
Complying with environmental and sustainability regulations
Many general and industry-specific regional and international regulations guide business sustainability standards. Understanding and complying with them is the foundation of achieving sustainability, which the BPO industry can simplify.
Benefits of embracing sustainable business practices
In a sustainability-focused world, both internal and external stakeholders expect businesses to have a sustainability strategy in place. Businesses that fail to account for the environmental and social impact of their operations cannot survive the scrutiny of customers, ESG investors, and other stakeholders.
On the other hand, embracing sustainable business practices can offer you many benefits, including
- Better reputation as an environmentally responsible business
- Optimised operational costs and long-term savings
- Improved customer relationships
- Access to valuable sustainability resources
Navigating the pitfalls
Despite the need and benefits of committing to sustainable growth, implementing it in practice is complex. When trying to appear sustainable to stakeholders and ESG investors, you can easily miss the forest for the trees.
Some of the key pitfalls you need to be mindful of and avoid include:
- Jumping on the green movement “bandwagon” without understanding its nuances and the impact it may have on your business
- Failing to balance the sustainability and cost-cutting goals which result in resource mismanagement
The common theme in these pitfalls is trying to work around an issue without understanding or addressing the root cause. Only when you work on understanding the underlying cause can you understand the impact of even the smallest actions can have on overall sustainability goals.
How can Infosys BPM help promote sustainability in business?
The BPO industry has been a driving force championing sustainable business practices and ESG principles across industries. Business process outsourcing in the energy and utilities industry has paved the way to sustainable energy management solutions, fostering innovation for enhanced efficiency. With its transformative and value-driven BPM services, Infosys BPM is fostering innovation and driving sustainability in energy and utilities businesses.
