New Delhi: Rating agency ICRA’s ESG rating report revealed that Indian corporate entities had made a significant shift toward renewable energy in line with science-based target initiatives. Only 7 per cent of 127 companies operate in high-emission sectors such as construction materials and mining, according to ICRA.
The science-based target initiative is a voluntary regime to set targets for commitment to carbon emission cuts. ” ICRA’s sample set has demonstrated that only a handful of corporates managed to reduce their absolute emissions (around 11 per cent decline) in the last six years; however, they have managed to stabilise or decline the emission intensities to a certain extent,” according to the report.
What is SBTi?
SBTi allows firms to set individual targets and have these verified externally. India ranks 6th in the world with 127 companies committed to SBTi. The UK leads the world in SBTi net zero corporate commitments.
“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,” said Sheetal Sharad, chief rating officer at ICRA ESG Ratings. The power sector, despite the carbon intensive nature of coal burning, has shown a marked shift in favour of renewable energy.
Sustainable and alternative fuels are helping to mitigate emissions in the cement sector. Higher adoption of sustainable production practices is impacting metals and mining sector emissions. However, less than 10 per cent of companies from these sectors, which contribute to 55 per cent of India’s overall emissions have committed to SBTi net-zero targets.
The initiative is aimed at creating awareness around developing countries’ commitment to net-zero targets while appreciating their development needs. “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, ” said Sharad.
ICRA ESG ratings report ranked India 6th among countries across the globe whose companies are committed towards achieving net-zero carbon emission targets. India has 127 companies that have pledged to meet this goal. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
