The role of environmental sustainability in shaping the SDG

By Priya Chetty on January 29, 2025

Environmental sustainability plays a critical role in shaping the global sustainability agenda, particularly in the realization of the Sustainable Development Goals (SDG). Carbon emissions, wastewater disposal, energy usage, and waste management remain the top concerns, alongside issues such as labour exploitation, institutional transparency, accountability principles, and community welfare.

Although conceptualized in the 1980s, sustainability became a significant focus in 2015 with the United Nations’ institution of the seventeen Sustainable Development Goals (SDGs). It addresses three critical dimensions of sustainability:

  1. social,
  2. environmental, and
  3. organizational.

This study explores the role of environmental sustainability in shaping the SDGs, emphasizing its interconnections with social equity, economic development, and corporate governance.

SocialEnvironmentalOrganisational
SDG 1: No PovertySDG 6: Clean Water and SanitationSDG 8: Decent Work and Economic Growth
SDG 2: Zero HungerSDG 7: Affordable and Clean EnergySDG 9: Industry, Innovation, and Infrastructure
SDG 3: Good Health & Well BeingSDG 12: Responsible Consumption and ProductionSDG 17: Partnerships for the Goals
SDG 4: Quality EducationSDG 13: Climate Action 
SDG 5: Gender EqualitySDG 14: Life Below Water 
SDG 10: Reduced InequalitiesSDG 15: Life on Land 
SDG 11: Sustainable Cities and Communities  
SDG 16: Peace, Justice, and Strong Institutions  
Social, environmental, and organisational sustainable development goals

Social sustainability takes precedence, with environmental sustainability following closely. In contrast, the organizational dimension receives the least emphasis among the Sustainable Development Goals (SDG), likely due to the challenges associated with monitoring, enforcement, and measurement. Organizational sustainability is inherently subjective, as it is largely influenced by the moral values and ethical conduct of leaders (Zahari et al., 2024). Conversely, the progress of a country in achieving environmental and social goals can be more readily quantified. For instance, environmental performance can be assessed through metrics such as annual carbon dioxide emissions and hazardous waste generation, while social progress may be evaluated by examining indicators such as the proportion of the population living below the poverty line.

India’s automobile sector’s contribution to carbon emissions

The transport sector single-handedly contributes to 20% of global CO2 emissions (Ritchie and Roser, 2024). Of this, aviation accounts for about 12%, while the lion’s share- 46%- is claimed by road travel, majorly buses and passenger cars. The lowest contributors are rail transport and two-wheeler segments (European Parliament, 2019). In India, the auto sector is responsible for 14% of India’s Scope 1 emissions and 90% of total energy consumption (Kumar et al., 2022).

A sizeable chunk of India’s population depends on motorbikes and bicycles as a quick and cheap means of transportation. However, this is not good news for the environment as the two-wheeler segment emerged as the biggest energy consumer among all forms of passenger transport, including air (Kamboj et al., 2022). Policymakers and automakers have advocated for a switch to e-two-wheelers to reduce CO2 emissions, but research has shown inconclusive findings. According to (Weiss et al., 2015), electric bikes can only benefit the environment if natural gas or renewable energy is used as the source of electricity rather than coal, but in India, nearly 50% of the electricity needs are met by thermal power (NITI  Aayog, 2024), making electric vehicles’ role in environmental sustainability questionable.

In the short run, however, it is safe to assume that there will be no immediate relief from the electric vehicles segment as far as CO2 emissions are concerned. This is because of two main reasons- the public transition from combustion engine vehicles to electric vehicles is slow (The Economic Times, 2024), and research on electric vehicles’ ability to reduce emissions is disputed. The automobile sector, as a major contributor to carbon emissions, energy consumption, and resource utilization, has come under increasing scrutiny for its environmental impact. However, alongside environmental concerns, the sector also influences social and organizational sustainability, necessitating a holistic approach to sustainability assessment.

Environmental sustainability and its measuring tools

In the domain of sustainability, the environmental dimension has received significant attention. It emphasizes the responsible utilization of resources to meet present needs without compromising the quality of the environment for future generations (Patterson, 2024). Contemporary advocacy highlights the importance of utilizing renewable, recycled, and sustainably generated energy sources to mitigate harmful emissions into the atmosphere. This focus is critical given the increasing consumption of resources required to sustain human life.

In the United Nations’ Brundtland Commission held in 1987, environmental sustainability took precedence over the other two dimensions of sustainability as the issue of climate change took centre stage (United Nations, 2024). The report stated that critical global environmental problems were primarily the result of the enormous poverty of the South and the non-sustainable patterns of consumption and production in the North. It also called for a unified approach to equitable development and environmental protection, coining it “sustainable development”. Therefore, the governments of 140 countries around the world have pledged to address climate change with institutional laws which address environmental issues such as deforestation, emissions, water consumption, land use, and energy use.

However, there is no set framework for the interpretation and implementation of sustainability (Silva et al., 2024).  Some frameworks such as the Global Reporting Initiative (GRI, 2015) and OECD Manufacturing Toolkit provide detailed guidance for sustainability reporting but their implementation varies due to complex organizational structures and lack of a universal regulatory framework. Moreover, there is no universally accepted tool to measure it. This makes it difficult to decide on a benchmark for achieving environmental sustainability. However, several studies have proposed certain ‘indicators’ of sustainability. Sustainability indicators are “quantitative and/or qualitative measures that aim to interrelate and assess different areas of social, environmental, economic, institutional, and territorial development” (Moreno-Pires, 2014). In other words, they are measurements or metrics used to assess how well an organisation, community, or country is doing in terms of sustainability.

  • Environmental indicators: Track things like air and water quality, energy use, and waste reduction.
  • Social indicators: Measure factors such as education levels, health outcomes, and equality.
  • Economic indicators: Focus on job creation, income levels, and financial stability.

Environmental sustainability indicators in discourse

Previous research has suggested several approaches to advance sustainable development, including the implementation of environmental management systems (Melnyk et al., 2003), the mandatory adoption of Environmental, Social, and Governance (ESG) reporting (Lokuwaduge and Heenetigala, 2017), and increased investments in the research and development of sustainable technologies (Dagiliūtė and Liobikienė, 2015; Khan et al., 2022). In the context of ESG reporting, numerous scholars have proposed environmental sustainability indicators designed to evaluate environmental health and the efficacy of organizational practices aimed at fostering sustainability. Common indicators include air quality, water quality, soil quality, and energy usage.

The following table provides a comprehensive evaluation of critical studies conducted on environmental sustainability indicators at the institutional level. This analysis draws inspiration from the work of Okay et al. (2024), who developed a matrix to illustrate the indicators addressed by various researchers. Similarly, a matrix is employed to present the findings on environmental sustainability indicators; however, additional indicators have been identified and incorporated, while certain others have been excluded from Okay et al.’s (2024) original matrix due to collinearity concerns. For instance, ‘environmental policies’ are represented by ‘environmental management systems’ within the matrix, as the latter cannot exist without the former (Fet and Michelsen, 2023; ISO, 2024). Furthermore, the current table distinguishes itself from Okay et al.’s (2024) study by integrating a broader range of recent studies into the assessment matrix.

Studies identifying relevant environmental indicators
Studies identifying relevant environmental indicators

The below table is an extension of Okay et al.’s (2024) matrix of environmental indicators. It takes into consideration only those studies which were based in India.

Studies identifying relevant environmental indicators in India

Social sustainability in organisations and the tools used to assess it

Social responsibility is a lesser-talked-about dimension within the broader framework of sustainability. It covers the aspects related to the welfare of the society such as equitable growth, gender equality, poverty eradication, and education. According to (Boyer et al., 2016) its relative lack of popularity in discourse is due to the high level of complexity involved in accommodating the competing interests of different stakeholders and deciding the metrics for measuring some of the outcomes. Some examples of these conflicts are:

  • Villagers of a certain region in India may value access to clean water and sanitation as environmental issues but the sustainability agenda may prioritise industrial growth and job creation.  
  • Government programs aim to empower women through education and entrepreneurship. However local customs may resist these changes; rural India may view them as disruptive to established family and social structures.
  • Efforts to modernise farming are intensifying. Modern farming techniques (such as high-yield seeds, pesticides, and mechanisation) are encouraged to increase productivity and support food security. However, traditional farmers often view these practices as unsustainable, causing soil degradation, reducing biodiversity, and harming local ecology. Many prefer organic and traditional methods that preserve soil health, creating a conflict with the agricultural sustainability agendas driven by productivity metrics.

Therefore, what counts as social sustainability depends on perspectives, norms, standards, and scale. Academic research on social sustainability has been diverse, ranging from the exploration of an integrated view of environmental, social, and organisational sustainability as opposed to standalone pillars (Boyer et al., 2016), social sustainability practices within organisations and its impact on global warming (Rank et al., 2022), and identifying measurable indicators for social sustainability (Baffoe and Mutisya, 2015; Okay et al., 2024; Pilane et al., 2024). It is an evolving domain of knowledge as our understanding of social phenomena undergoes continuous metamorphism.

Indicators of social sustainability in institutions

Although various definitions of social sustainability exist, the definition proposed by Koning (2001) is considered comprehensive. It defines social sustainability as the pursuit of a society that is ‘socially just, equal, without social exclusion, and with a decent quality of life or livelihood for all.’ The concept of quality of life encompasses the mental, physical, emotional, and financial well-being of individuals within a community. This includes not only the general population of a locality but also the employees and management within organizations, along with their work environment.

While a critical aspect of social sustainability, employee well-being has historically been the least prioritized dimension by businesses (Sadick and Kamardeen, 2020). However, many institutions now recognise the significance of fostering a positive and thriving work environment as part of their broader sustainability goals. Given its inherently subjective nature, the measurement and reporting of social sustainability within institutions are often approached in varied ways, reflecting the complexity and context-specific nature of this dimension.

Existing literature offers a range of insights on the subject, spanning theoretical frameworks such as the Global Reporting Initiative (GRI, 2015) and the institutional sustainability framework proposed by Labuschagne et al. (2005), as well as empirical studies (Husgafvel et al., 2015; Ibáñez-Forés et al., 2023; Mura et al., 2024). The table below provides a comprehensive list of social sustainability indicators at the institutional level, adopted by Okay et al. (2024).

Studies identifying relevant social sustainability indicators

The below table is an extension of Okay et al.’s (2024) study on social sustainability indicators. It takes into consideration only those studies which were based in India. Based on the observations from the 11 studies, it can be assessed that some of the most widely accepted social sustainability indicators in India are occupational health and safety, workforce and gender diversity, community development, education, training and development, human rights coverage, child and forced labour, Indigenous rights, fair wages, and compliance and ethics.

Studies identifying relevant social sustainability indicators (India)

Sustainable development goals addressed by environmental and social sustainability indicators of organisations

It is evident from our assessment of environmental and social indicators of sustainability that there are many. Newer metrics will appear in the future as sustainability becomes more complex. (Hák et al., 2016) argue that there are many problems with this explosion: (a) that we need better, not more, indicators (b) there is no regulation or coordination among global nations on the fittest indicators and (c) there are too many sustainability frameworks to select relevant indicators. Therefore, there is a need to structure the indicators as per the 17 SDGs to “emphasise the linkages among the indicators thereby avoiding arbitrariness in the selection process”. The indicators assessed in this study are thus classified as per their linkages with the SDGs. We followed Hák et al.’s (2016) assumptions in the classification process which state that:

  • SDGs and their targets are to be assessed using indicators
  • The indicators should be relevant, i.e. closely linked to indicated facts.
  • The indicators should also comprise other qualities (sound methodology, legitimacy, etc.).
  • The indicator set should be of a “manageable size”.

We therefore excluded indicators which are not sufficiently explored in the domain of sustainable development, i.e. indicators covered by less than 20% of the studies considered in the above matrices. Accordingly, the linkages between the chosen indicators and the SDGs are represented below. SDG 17 (Partnerships for the Goals) is excluded from this list as the information is missing in the company reports.

TypeIndicatorsSDG
EnvironmentalRenewable energy used7
EnvironmentalNon-renewable energy used7
Environmentaltotal energy used7
EnvironmentalTotal fuel consumed7
EnvironmentalEnergy efficiency7
EnvironmentalWater consumed6
EnvironmentalWater recycled/reused6
EnvironmentalWater Intensity6
EnvironmentalWater waste6
EnvironmentalSolid waste produced12
EnvironmentalHazardous waste produced12
EnvironmentalNon-hazardous waste12
EnvironmentalRecycled/reused waste12
EnvironmentalDisposed waste12
EnvironmentalGHG (Scope – 1,2&3) emissions13
EnvironmentalAir pollution13
EnvironmentalCarbon footprint13
EnvironmentalToxic releases in air and water13
EnvironmentalNoise pollution13
EnvironmentalLight pollution13
EnvironmentalLand use15
EnvironmentalDeforestation15
EnvironmentalEnvironmental law violations13
EnvironmentalEnvironmental management systems13
EnvironmentalEnvironmental reporting13
EnvironmentalEnvironmental risk assessment13
EnvironmentalEnvironmental education & training13
EnvironmentalR&D investment13
EnvironmentalEnvironmental expenditure12
EnvironmentalGreen design & packaging12
EnvironmentalProduct recyclability12
EnvironmentalReused/Recycled packaging12
EnvironmentalMaterials used12
EnvironmentalRenewable materials12
EnvironmentalNonrenewable materials12
EnvironmentalLifecycle assessment12
EnvironmentalSupplier assessment12
EnvironmentalEnvironmental accidents15
EnvironmentalBiodiversity15
SocialEmployee T&D4
SocialPhilanthropy10
SocialEmployee turnover10
SocialEmployee contract10
SocialGender diversity5
SocialSocial benefits1
SocialFair wages1
SocialOvertime hours3
SocialWorking hours3
SocialFlexible working arrangements5
SocialEmployee satisfaction3
SocialWorkforce diversity5
SocialOccupational health and safety3
SocialAccidents3
SocialFreedom of association16
SocialCollective bargaining agreements16
SocialDiscrimination5
SocialDisciplinary and security practices16
SocialFull time and part-time employees5
SocialChild and forced labour5
SocialLocalisation10
SocialCommunity development11
SocialStakeholder engagement11
SocialStakeholder empowerment11
SocialPromoting social responsibility11
SocialCorruption16
SocialAnti-competitive behavior16
SocialSocial standards10
SocialSupplier assessment10
SocialCustomer health & safety3
SocialRespect for privacy16
SocialCustomer satisfaction10
SocialWorkplace culture3
SocialEmployment stability1
SocialResearch and development4
SocialEducation4
SocialSocial cohesion4
SocialLabor management relations10
SocialHuman rights coverage3
SocialPhilanthrophy2
SocialCompliance16
SocialEthics16
Classification of sustainability indicators into different sustainable development goals (SDGs)

This information is also represented visually in the below matrix. As can be seen here, social indicators outdo environmental indicators in number.

Heat map showing concentration of indicators into ‘environmental’ and ‘social’ categories

Sustainability indicators for the Indian automobile industry

Since most of the studies reviewed in the above table included empirical examinations of manufacturing firms, one can generalize the findings for the automobile industry. A separate empirical review of Indian automobile firms’ environmental and social sustainability reporting practices was conducted for this study and yielded scant results. According to (Mishra et al., 2024), automobile companies’ adopted environmental sustainability approaches include the use of recyclable materials in the production process, reduction in energy utilization, reduction in water consumption, reduction in the disposal and recycling costs of hazardous wastes, and reduction in electricity usage, which lead to improvement in environment management systems, pollution control and biodiversity by around 70–80 per cent (Tillu et al., 2024) find that the environmental factors relevant to the sustainability cause in case of automobile industry include increased renewable energy and resources application (REA) via shift to renewable sources, switch to produce biofuels from agriculture/food waste, waste management practices, adoption of lifecycle assessment, tracking carbon emissions, and reducing risks caused by hazardous waste. Substantial empirical evidence on the selection of appropriate sustainability indicators for the automobile industry is therefore lacking, warranting further research.

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I am a management graduate with specialisation in Marketing and Finance. I have over 12 years' experience in research and analysis. This includes fundamental and applied research in the domains of management and social sciences. I am well versed with academic research principles. Over the years i have developed a mastery in different types of data analysis on different applications like SPSS, Amos, and NVIVO. My expertise lies in inferring the findings and creating actionable strategies based on them. 

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