India’s corporate sector lags behind in meeting Net Zero: Report.
A new report has brought to light that India is still moving slowly towards its climate goals, especially in the high-emission sectors like cement, power, and mining. According to a report by ICRA ESG Ratings, an Environmental, Social, and Governance (ESG) rating provider, only 7% of the companies in these high-emitting industries are committed to achieving net zero emissions. The above estimates against this, 127 firms which have set net-zero targets are from low-to-medium emission sectors like software, textiles, and pharmaceuticals.
The findings highlight the challenge India faces in reducing emissions across key sectors that account for a large portion of the country’s carbon footprint. While the world is crying out for more urgent climate action, high-emission industries in India have moved at a relatively slow pace, and many are left wondering whether the country will be able to meet its ambitious climate goals set under international agreements.
Slow Progress in High Emission Sectors The report reveals that emission-intensive sectors such as power generation, cement production, and mining in India cannot find adequate strategies to curb emissions. Some of the efforts are made to introduce renewable sources of energy and better practice, but the overall progress is modest.
In these sectors, only 25 companies have made net-zero commitments, while emissions from these sectors have declined by 11 percent over the past six years–a rate much slower than required to keep pace with the country’s climate goals.
Cement companies, for instance, are now exploring alternative fuels and carbon capture technologies to reduce emissions. However, the adoption of these advanced technologies has not been very widespread, and their implementation remains in its early stages for many firms in the sector. Similarly, while the uptake of renewable energy is on the increase, its pace remains insufficient for large-scale transformation in energy-intensive industries.
Commitment to the Science Based Targets initiative (SBTi)
A key element in the report is the role of the Science-Based Targets initiative, which works to help companies set appropriate and measurable climate targets corresponding to the goals of the Paris Agreement. India ranks number six in terms of its committed companies to SBTi, but there continues to be a significant gap where the commitments from companies in less emitting sectors are far behind relative to those from companies having a high-emitting type of industry.
The UK is at the top, followed by several European countries. China, which is one of the world’s largest carbon emitters, is still lagging behind when it comes to corporate climate action. A comparison between the commitments of companies in low and high-emission sectors shows that there is a need for more focused efforts and stronger commitments from the latter to meet global climate goals.
Obstacles to Transitioning Faster
The report shows that it is still too slow to meet the net-zero targets for India since there is a reduction in emissions by high-emitting sectors. According to the study, these are due to fewer available clean energy infrastructure accessibilities, technological difficulties in implementing new green practices, and financial issues in scaling up green technologies.
However, at the same time, India’s growth model of infrastructure, a major factor in the growth of the country, poses to be a significant challenge for integration with the international climate objectives. Countries like India have typically stood out because of the unique factors such as economic growth and generating employment that work in some cases against the radical emissions reduction goals. These considerations have to be addressed when setting climate policy and objectives, the report feels.
The need for more action
Much to be done is the real deal, and most of this has to come from the high-emitting sectors. The level of regulatory framework has to rise; the innovation level needs to rise; and transparency needs to rise on the climate strategies to get companies on board with the SBTi.
As India continues to grow and industrialize, the need for sustainable practices in high-emission sectors will only increase. The role of the corporate sector in this transition is critical, and more companies must take immediate action to reduce emissions and implement sustainable practices at scale.
Conclusion:India in Global Climate Actions International climate action finds the involvement of a critical role from India. The corporate sector there is going to have its do in meeting the targets the world has for climates. Infrastructural challenges associated with developing countries should form an important consideration while arriving at guidelines for climate actions, reports suggest. If it were to be so fine-tuned toward the needs of India-type countries, more companies would be interested in getting lined up with global climate goals. In conclusion, although India has experienced great success in corporate climate action in lower-emitting sectors, high-emitting industries require much more improvement. This is well testified by the slow progress observed in power, cement, and mining. Stronger commitment, greater innovation, and more regulatory support would need to be in place in order for India to ensure that it meets its own climate targets and makes the right contribution in the fight against climate change globally. Source: ICRA ESG Ratings report on corporate climate commitments and net-zero goals.
Source: ICRA ESG Ratings report on corporate climate commitments and net zero goals