Several Indian corporate houses set to become carbon neutral by 2050

Companies including Mahindra & Mahindra, Aditya Birla Group, JSW Group, Adani Transmission, Vedanta, and Dalmia Cement have set decarbonisation goals to achieve carbon neutrality by 2050

India’s major corporate houses are working towards raising their sustainability quotient by taking up actions like investing in higher efficiency and responsible sourcing of materials and enhancing disclosures., reported The Economic Times. However, a lot more is yet to be done to meet the decarbonisation goals set by India. 

Various companies like Vedanta, Aditya Birla Group, JSW Group, Adani Transmission, Mahindra & Mahindra, and Dalmia Cement have set decarbonisation targets internally to become carbon neutral by 2050 or earlier. Reliance Industries, on the other hand, has targeted to become net-zero by 2035.

Additionally, companies have established internal carbon pricing, which is used as a reference for all business decisions. For instance, Mahindra & Mahindra has set the carbon price at $10 (Rs 824), while Vedanta has set it at Rs 1,125 per tonne of carbon dioxide emissions.

To reduce their carbon footprints, 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 capacity in India using less carbon-intensive electric arc furnaces.

The sustainability disclosures provided by leading organisations show that businesses have increased their scrutiny and support to 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 have voluntarily disclosed information for FY22. Beginning in FY23, BRSR will be required for the top 1,000 Indian firms.