Fewer Indian Firms Commit to Net Zero Goals, Says Report
Companies in the cement sector are adopting advanced technologies, such as alternative fuels and carbon capture, to reduce emissions.
The country's net zero commitments are progressing slowly, and current actions are insufficient to meet its goals.
A new report published by ICRA ESG Ratings, an ESG rating provider in India, says that only 7% of Indian companies in high-emission sectors, such as power, cement, and mining, are committed to net zero goals.
Most of the 127 companies that commit to net zero goals are in low-to-medium emission sectors, like software, textiles, and pharmaceuticals.
The Science-Based Targets initiative (SBTi) helps companies set measurable and realistic climate goals in line with the Paris Agreement. India ranks sixth globally for the number of companies committed to SBTi.
UK companies lead in such commitments and are frontrunners in climate action, while China, despite being one of the largest carbon emitters, has fewer companies taking similar actions.
When it comes to shifting to renewable energy and sustainable practices, high-emission sectors (power, cement, mining) are moving at a snail's pace, with only 25 companies committing to net zero goals and reducing emissions. Though emissions have decreased (11%) over six years, the progress is slow.
The report notes that more companies, particularly those from high-emission sectors, need to do more to meet climate goals.
Sheetal Sharad, Chief Ratings Officer, ICRA ESG Ratings, said: “Our findings emphasize the importance of committing to net-zero targets and how aligning with SBTi is a good way to enhance climate strategies, promote transparency and accountability, and highlight the need for continued innovation and regulatory support.
"Such initiatives and standards should acknowledge the role of India as a key actor in climate change action and therefore should consider the infrastructure-led growth in developing nations like India while evolving guidelines towards target setting. This will encourage more entities towards alignment.”
To learn more about the study, click here.
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Source: ICRA ESG Ratings
