Majority of top Indian firms step up, voluntarily disclose carbon emissions: PwC survey

In support of the Indian government's pursuit of a net-zero emission target by 2070, a PwC India survey reveals that 51 per cent of the top 100 companies have initiated voluntary disclosures regarding their carbon emissions. Additionally, the survey highlights that approximately 31 per cent of these companies have outlined their net-zero targets.

Government and regulatory bodies have implemented new regulations regarding ESG (environmental, social, and governance). India's adoption of BRSR Core standards positions it as a leading player in the global shift toward a more credible and transparent landscape for sustainability reporting.

The BRSR Core framework is enforced by the Securities and Exchange Board of India (SEBI) to encourage listed entities to disclose their environmental, social, and governance (ESG) practices and impacts along their value chain.

Navigating India's Transition to Sustainability, the report revealed, "51 per cent of India's top 100 listed companies by market capitalisation disclosed their Scope 3 data for FY23 despite it being a voluntary disclosure in Business Responsibility and Sustainability Reporting (BRSR)."

"It sheds light on how Indian businesses are taking a step further in ESG reporting, as Scope 3 emissions are crucial to understanding an entity's net zero journey."

Sambitosh Mohapatra, Partner & Leader, ESG, PwC India, said, "With the BRSR becoming a mandatory report for businesses, ESG considerations have become key strategic priorities in boardroom discussions. This is a testimony of the enhanced awareness of the importance of sustainability and responsible business practices."

The adoption of ESG reporting via the BRSR has brought about heightened transparency and a comprehensive understanding of a company's environmental and societal footprint. This has empowered investors and stakeholders to evaluate businesses through an ESG lens, facilitating comparisons across sectors and tracking progress over time, as noted by PwC India.

AL Circle's latest industry-focused report, "Global Aluminium Industry Outlook 2024," revealed that India, accounting for 6 per cent of global aluminium production, produced 4.1 million tonnes of primary aluminium in 2023. The output in 2023 grew by 2.5 per cent from 4 million tonnes in 2022, following a slight increase of 0.75 per cent y-o-y from 3.97 million tonnes. India is the world's second-largest aluminium-producing country and the third-largest consumer.

India: Primary aluminium production 2021-2023 (000 tonnes)

According to the IEA (International Energy Agency), aluminium is an essential input to several technologies critical to the energy transition and a significant source of CO₂, emitting nearly 270 Mt of direct CO₂ emissions in 2022 (about 3 per cent of the world's direct industrial CO₂ emissions).

Global warming is a growing concern as the world rapidly reduces emissions to save the environment from further degradation. On this path to a sustainable future, one metal has proven itself to be more environmentally friendly than the rest.

Aluminium is one of the most sustainable materials on the planet and is also highly recyclable—recycling aluminium benefits present and future generations by conserving energy and other natural resources. During the recycling process, aluminium loses none of its intrinsic properties. It consumes up to 95 per cent less energy than primary metal, avoiding corresponding emissions, including greenhouse gases. Read the free AL Circle report, "Sustainability in the Global Aluminium Industry". 

The survey also highlighted significant actions taken by companies: 44 per cent of the top 100 listed companies undertook life-cycle assessments of their products or services. In comparison, 89 per cent disclosed information on leadership indicators. Furthermore, 49 per cent of these companies increased their energy consumption from renewable sources.

The report emphasized key initiatives that contributed to emission reduction. These initiatives included adopting energy-efficient technologies like LEDs, implementing efficient air-conditioning, ventilation, and heating systems, transitioning to renewable energy sources, the utilization of carbon offsets, and engaging in off-site power purchase agreements.

The report added, "As India commits to achieve its net zero vision by 2070, the business sector is being viewed as a critical enabler in furthering this ambition."

The report emphasised that India's adoption of BRSR Core positions it at the forefront of the global shift towards a more credible and transparent sustainability reporting framework.

The analysis focused on the publicly available BRSR reports of the top 100 companies (comprising the Nifty 50 companies and the NEXT 50 listed companies) and their compliance with the BRSR's mandatory reporting regulations for the financial year ending March 31, 2023.