Top Indian companies target net-zero carbon emissions by 2050

17 Oct 2022 , 08:04 AM

Top Indian corporations are increasing their sustainability quotient through investments in bettering operational sustainability through increased efficiency and responsible procurement of materials to upgrading disclosures, but much more work is required to fulfil the net-zero targets set for the country.

Many Indian corporate houses have internalized decarbonization goals to achieve carbon neutrality by 2050 or earlier.

These companies include, among others, Mahindra & Mahindra, Aditya Birla Group, JSW Group, Adani Transmission, Vedanta, and Dalmia Cement. The most valuable corporation in India by market capitalization, Reliance Industries, has set a goal of being net zero by 2035.

Additionally, businesses have established internal carbon pricing, which is used as a reference for all business decisions. For instance, Mahindra & Mahindra set the carbon price at $10, while Vedanta put it at $1,125 per tonne of CO2 emissions (Rs824).

To lessen their carbon footprint, Indian businesses have boosted their investments in renewable energy, waste heat recovery systems, more efficient equipment, and renewable fuels. For instance, this year JSW Steel will install a 175-megawatt waste heat recovery boiler.

In the meantime, Ultratech Cement increased its solar capacity by 121 megawatts and its waste heat recovery system capacity by 42 megawatts in FY22. By 2025, Tata Steel hopes to develop a million tonnes of annual steel recycling capability in India using less carbon-intensive electric arc furnaces.

According to sustainability disclosures provided by leading organizations, businesses have increased their oversight and support of their suppliers to ensure sustainable practices throughout their value chains.

According to the Business Responsibility and Sustainability Reporting (BRSR) criteria advised by Indian markets regulator Sebi, as many as 100 firms voluntarily disclosed information for FY22. Beginning in FY23, BRSR will be required for the top 1,000 Indian firms.

More than 30 Indian businesses have also pledged to SBTi that they will achieve net-zero emissions by 2050 or earlier.

SBTi is a joint initiative of the CDP, the UN Global Compact, the World Resources Institute, and the Worldwide Fund for Nature that gives businesses environmental sustainability target-setting techniques and advice.

Companies are also eager to take advantage of the somewhat lower interest rates that sustainability-linked loans (SLL) come with in order to fund their expansion plans. Some of the businesses that have recently raised SLLs in India are JSW Cement, Birla Carbon, and Glenmark Pharmaceuticals.

Given the enormous amount of capital needed to reach net-zero ambitions, the pace of fund raising in this sector must, however, quicken. According to a CEEW report, India would require a total investment of $10.1 trillion (more than Rs830 lakh crore) by 2070 to achieve net zero emissions. This corresponds to an investment for India of more than $200 billion every year.

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