Air pollution exposure and ESG risk
Authored by Suddhwasattwa Mukherjee, Partner, Sustainability and Climate Action and Nikita Malik, Senior Consultant, Sustainability and Climate Action
Air pollution is one of the most significant environmental threats India faces today, affecting people’s health, and the country’s economic future. As per a study conducted by The World Health Organisation (WHO), 99% of people worldwide live in places with air pollution levels higher than safe limits, and India is especially hard hit.
The most harmful and prominent pollutant in India is fine particulate matter, known as PM2.5. Inhaling this tiny dust can cause serious breathing and heart problems. The exposure to PM2.5 by pregnant women or young children can cause birth defects, learning difficulties, and developmental delays that directly impacts the country’s future workforce and productivity.
Air quality in India has long been discussed through the lens of public health and environmental advocacy. Additionally, in the ESG landscape, deteriorating ambient air quality is increasingly relevant as a material ESG risk with direct implications on productivity, operational continuity and long-term value creation. Persistently high concentrations of particulate matter (PM2.5 and PM10) across major urban and industrial regions indicate that air pollution is not a periodic disruption, but a standard operating condition for many companies.
From an ESG standpoint, air quality cuts across both the Environmental and Social pillars. Environmentally, it reflects on how effectively organisations manage emissions across operations, logistics and energy use. Socially, it effects workforce wellbeing, attendance and performance, particularly for firms with large on-site or outdoor workforces. Together, these impacts influence business resilience and cost structures.
