India ranks sixth globally in corporate climate action, with 127 companies committed to science-based target initiative or SBTi net-zero targets, and these companies are primarily from non-hard-to-abate sectors like textiles, software, and pharmaceuticals, stated a report by ICRA ESG Ratings. Out of these 127 companies with net-zero commitment from India, around 7 per cent belong to high emissions sectors like construction materials and mining and the rest hail from sectors like textiles, software and services, typically considered to be having low to medium level of carbon footprint. The report revealed a significant shift towards renewable energy in the power sector, particularly among companies with net-zero commitments, resulting in reduced emissions.
SBTi is a voluntary target-setting initiative whereby companies can commit to setting science-based targets and have their objectives independently assessed and validated. Commitments and target taking are done through stated sector wise guidelines by SBTi.
Also ReadWill Swiggy deliver? Food aggregator to report first quarterly results post listing tomorrow
While India ranks sixth, the United Kingdom leads globally with the highest number of companies committed to SBTi net-zero targets. In contrast, China, despite being the largest emitter, has a lower share of companies with such commitments.
Also Read L&T’s Energy CarbonLite Solutions vertical bags LNTP for thermal power plants in Madhya Pradesh, Bihar Banks’ non-interest income gets a boost from listing gains Aim is to be the most affordable forex player in India: Revolut India MDB reforms, bridging digital gap among top G20 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.”
Considering approximately 25 companies from the power, cement, and mining sectors, the report observed that while coal-based generation remains prevalent, there is a marked shift towards renewable energy adoption in the power sector.
In the cement sector,
» Read More
