As ESG conversations in India move from intent to implementation, the focus is increasingly shifting towards how sustainability is embedded into core business strategy rather than positioned as a parallel or compliance-driven function. For FMCG companies operating in price-sensitive, infrastructure-constrained markets, the challenge lies in balancing ambition with practicality—delivering measurable environmental and social outcomes while safeguarding growth, efficiency and consumer trust.
In this interview, TheCSRUniverse speaks with Shilpashree Muniswamappa, Director – ESG & Communications at Colgate-Palmolive (India) Limited, to unpack how one of India’s leading FMCG players is navigating this complex terrain. From integrating sustainability into operational decision-making and supply chains to advancing circular packaging, renewable energy adoption and water stewardship, the conversation explores what it takes to move ESG from reporting to results. Shilpashree also reflects on the structural challenges facing the FMCG sector, ranging from fragmented waste infrastructure and Scope 3 emissions to MSME readiness, and outlines why collaboration, capability building and policy alignment will be critical to accelerating progress.
Read the full interview here:
Q. How has Colgate-Palmolive India integrated sustainability into its core business strategy beyond compliance and how do you ensure it remains a driver of growth rather than just a reporting metric?
A. At Colgate-Palmolive, sustainability is not treated as a parallel agenda, it is embedded into how we design products, operate factories, source materials, and engage with communities. Our ESG priorities are directly linked to business fundamentals such as operational resilience, risk mitigation, cost efficiency, and brand trust. Our SMILE-based strategy ties environmental goals, like recyclable packaging and water-positive sites, directly to how the business grows, creates efficiencies, manages risk and builds trust with consumers and partners.
Beyond compliance, we integrate sustainability into decision-making through clear performance metrics across manufacturing efficiency, water stewardship, renewable energy adoption, and responsible sourcing. For us most importantly, these goals are owned by business and operations teams, not just CSR or sustainability functions. This ensures sustainability remains a driver of long-term growth, innovation, and stakeholder value rather than a reporting exercise.
Q. Colgate-Palmolive has public goals like transitioning to 100% renewable electricity and achieving Net Zero Carbon by 2040. From your perspective, what are the biggest opportunities and challenges in achieving these long-term climate commitments in India?
A. India offers strong potential for renewable energy, especially with solar and wind becoming more affordable and accessible. At CP, our shift towards renewable electricity has helped reduce long-term energy risk and improve operational efficiency. At the same time, challenges remain, grid reliability, access to renewables across all locations, and decarbonising our supply chain, particularly Scope 3 emissions. While we have made progress, including moving 91% of our packaging to be reusable, recyclable or compostable, achieving long-term climate goals will need sustained investment, supplier engagement, and strong ecosystem partnerships.
Q. You've set ambitious targets around recyclable and circular packaging. In your view, how can Colgate influence the wider ecosystem- including suppliers, waste collectors and consumers- to drive material circularity in India’s waste value chain?
A. Circularity in India can only be achieved through collaboration across the value chain, not by individual companies working alone. At CP, we take an ecosystem-led approach. We work with packaging suppliers, waste management partners and local communities to improve packaging design, strengthen collection systems and support recycling. Through our rural waste management initiatives, dry waste is being collected and responsibly segregated in around 25 villages every year. Consumer awareness around segregation is equally important. By aligning multiple stakeholders around shared outcomes, we aim to move from isolated efforts to scalable, system-level impact across India’s waste value chain.
Q. Water sustainability is a clear priority for the company. What lessons have you learned from your Net Zero Water efforts that might be scalable across industry or other stakeholders?
A. One of the most important learnings from our Net Zero Water journey is that water stewardship cannot be addressed through operational efficiency alone. While reducing water use within our factories is essential, long-term resilience depends on understanding local water stress and working at the watershed level. In India, CP has replenished over 430 million litres of water through rainwater harvesting, groundwater recharge and community water systems implemented in partnership with local organisations. These location-specific, long-term interventions have helped improve water availability for communities while reducing operational risk. This approach, combining disciplined water management within operations with community-led solutions is relevant for any industry operating in water-stressed regions.
Q. In a fragmented FMCG supply chain, how does CP drive responsible sourcing while simultaneously enabling MSME and small suppliers to meet ESG expectations without compromising their commercial viability?
A. In a fragmented FMCG supply chain, responsibility and inclusion must go hand in hand. CP supports its supplier partners through trainings, capability-building workshops, and knowledge sharing rather than imposing immediate compliance thresholds. This approach strengthens the entire supply chain, making sustainability practical and commercially viable for MSMEs as well.
Q. Sustainability often involves navigating trade-offs between cost, speed, and environmental outcomes. How does CP approach these decisions while maintaining product quality and consumer trust?
A. Trade-offs are a reality in any sustainability journey, but at CP we approach these decisions through a long-term value lens. We assess initiatives based on lifecycle impact, risk reduction and their ability to strengthen consumer trust, not just upfront cost or speed. Product quality and safety are non-negotiable. In many cases, more sustainable choices have also delivered efficiencies through reduced waste and better resource use. Where transitions take time, we focus on steady, science-led progress and transparent communication, which helps maintain trust as we evolve our processes and materials.
Q. In a price-sensitive market like India, how do you see the role of consumers evolving in supporting sustainable products and responsible business practices?
A. In India’s price-sensitive market, affordability continues to be paramount, but consumer expectations are evolving. Indian consumers remain value-driven, but value today includes clarity on environmental and social impact. Trust, transparency, and responsible practices now influence purchase decisions, even for daily essentials. All of Colgate's toothpaste tubes portfolio is now recyclable, demonstrating that sustainability can be delivered without compromising quality or burdening the consumer. Our role is to make responsible choices inherent in products not add complexity or cost, so consumers naturally feel confident supporting responsible brands.
Q. Could you tell us how CP’s ESG initiatives contributed to business resilience, brand value, or operational efficiencies? It would be great if you could share examples of where sustainability led to measurable business outcomes.
A. Our ESG initiatives have contributed directly to business resilience by reducing exposure to resource, climate and operational risks. For instance, our water stewardship efforts have helped several manufacturing sites become water-positive, lowering dependence on stressed local sources and reducing the risk of disruption. Similarly, increased use of renewable electricity has improved long-term energy cost predictability.
Beyond operations, programs like Colgate Bright Smiles, Bright FuturesⓇ have reached over 195 million children in India, strengthening community trust and reinforcing our brand’s long-term relevance. These outcomes show that sustainability, when embedded into core operations, delivers measurable business value alongside social impact.
Q. What are the most persistent challenges holding back stronger ESG performance in the FMCG sector- be it infrastructure gaps, cost pressures, consumer behavior, or regulatory complexity?
A. ESG progress in the FMCG sector is largely constrained by structural challenges. Recycling and collection infrastructure remains uneven across India, EPR implementation is still evolving, and the cost and availability of sustainable materials continue to be limiting factors. Fragmented supply chains, further slow progress on responsible sourcing and Scope 3 emissions. For CP, while we have made strong progress on recyclable packaging, advancing further will require system-level solutions—stronger infrastructure, consistent EPR enforcement, and deeper collaboration across the value chain.
Q. What kinds of industry collaboration or policy support could meaningfully accelerate ESG progress, particularly in areas like packaging waste management and responsible sourcing?
A. Meaningful acceleration in areas like packaging, waste management and responsible sourcing requires collaboration and supportive policy frameworks. Clear and consistently enforced EPR regulations, combined with pooled industry investments in collection and recycling infrastructure, can help build scale and reduce costs. At CP, we are already working with partners across multiple states to support the collection and responsible management of plastic waste, including multi-layer plastics. On sourcing, structured supplier engagement and capability-building programs help MSMEs meet ESG expectations without compromising viability. Going forward, public–private partnerships, shared recycling platforms and supplier support mechanisms will be critical to driving sustained, sector-wide progress.
Q. Looking ahead, what do you believe will distinguish ESG leaders in the FMCG sector over the next decade? Are there any new initiatives or partnerships that Colgate-Palmolive is looking forward to in the ESG space?
A. ESG leaders will be those who treat sustainability as operational practice - measurable, integrated and collaborative. That means embedding circular design, scaling renewables and water stewardship across operations, and building supplier capability rather than issuing one-time mandates. CP is already translating targets into projects, and going forward, the fastest progress will come from coalition-based models: shared recycling hubs, supplier capacity programs and stronger public-private EPR platforms.
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