Majority of the top 100 companies that are open about CO2 emissions: PwC India

Carbon market

Carbon market

Complementing the Indian government’s efforts to achieve a net-zero emissions target by 2070, as many as 51 percent of the top 100 companies have started voluntarily disclosing their carbon emissions, a study shows from PwC India.

The research also shows that around 31 percent of companies surveyed have announced their net zero targets.

The government and regulators have introduced new regulations in the field of ESG (environmental, social and governance) for companies. India’s transition to BRSR Core positions the country as a leader in the global transition to a more credible and transparent sustainability reporting landscape.

“51 percent of India’s top 100 listed companies by market capitalization disclosed their Scope 3 data for FY23, despite this being a voluntary disclosure in Business Responsibility and Sustainability Reporting (BRSR),” said the report ‘Navigating India’s Transition to Sustainability’.

This, it added, “sheds light on how Indian companies are going a step further in ESG reporting as Scope 3 emissions are crucial to understanding an entity’s net-zero journey.”

“As the BRSR has become a mandatory report for companies, ESG considerations have become key strategic priorities in boardroom discussions. This is testament to the increased awareness of the importance of sustainability and corporate responsibility,” said Sambitosh Mohapatra, Partner & Leader, ESG, PwC India.

ESG reporting through the BRSR has led to greater transparency and a holistic view of a company’s environmental and social impact, allowing investors and other stakeholders to make key decisions through an ESG lens, making comparisons across companies and sectors, and be able to track progress over time, according to PwC India.

The research also shows that 44 percent of the 100 largest listed companies have conducted life cycle assessments of their products or services, 89 percent of companies have made public their information on leadership indicators and 49 percent have increased their energy consumption from renewable sources.

According to the report, the main initiatives that have led to a reduction in emissions include transitioning to energy-efficient technologies such as LEDs, adopting efficient air conditioning, ventilation and heating systems, switching to renewable sources to secure energy needs, purchasing carbon offsets. and entering into off-site power purchase agreements.

“As India commits to achieving its net-zero vision by 2070, the business community is seen as a crucial factor in advancing this ambition,” the report said.

India’s transition to BRSR Core positions the country as a frontrunner in the global transition towards a more credible and transparent sustainability reporting landscape, it added.

The report analyzes the publicly available BRSR reports of the top 100 companies (Nifty 50 companies and NEXT 50 listed companies) and their response to the regulatory requirement of mandatory reporting under the BRSR for the financial year ending March 31, 2023.