SBTi Commitments by Indian corporates
and their impact in achieving India’s net-
zero targets
ICRA ESG RESEARCH REPORT
NOVEMBER 2024
SUMMARY
This report demonstrates the performance of Indian corporates in taking up net-zero targets
and the Science Based Targets initiative (SBTi) commitments towards decarbonisation and
emission reduction. It evaluates the emission trends and net-zero commitments of Indian
companies among the highest emission producing sectors, viz., power, cement, metal and
mining, and their performance in emission reduction over the past six years.
The study reveals a notable shift towards renewable energy in the power sector, especially
among companies with a net-zero commitment, resulting in reduced emissions, though coal-
based power generation remains significant for most corporates within the sector. In the
cement sector, high emissions due to clinker production are being addressed through
alternative fuels like biomass, fly ash, slag, municipal solid waste and carbon capture
technologies; while the metal and mining sector has been showing varied emission levels, with
only some firms adopting sustainable practices. Adoption is higher among companies with net-
zero commitments. Increasingly, companies are setting net-zero targets, with many setting an
ambitious target of 2050, against the backdrop of India’s commitment to becoming net zero
by 2070.
This report also explores the global and regional trends in SBTi target setting among corporates
and how they align with the global emissions scenario. The report underscores the importance
of committing to net-zero targets and aligning with SBTi standards to enhance climate
strategies, promoting transparency and accountability, and highlighting the need for
continued innovation and regulatory support to achieve net-zero goals.
1
TABLE OF CONTENTS
SUMMARY 1
INTRODUCTION 3
I. NET-ZERO COMMITMENT – GLOBAL SCENARIO 6
II. NET-ZERO COMMITMENT – BRICS NATIONS 7
III. INDIAN ECONOMY-WIDE EMISSIONS 9
IV. NET-ZERO COMMITMENT BY INDIAN COMPANIES 12
A. POWER GENERATION SECTOR 12
B. CEMENT SECTOR 15
C. METALS & MINING (IRON, STEEL & ALUMINIUM) SECTOR 18
CONCLUSION 21
2
INTRODUCTION
In response to the growing effect of climate
change, businesses are increasingly
intensifying their efforts to improve their
ESG (Environment, Social & Governance)
impact. A crucial aspect of the same is
tracking and disclosing the impact and risk
of business’ operations. In addition,
declaring a target and committing towards
its achievements is key in the sustainability
journey. Declaring a net-zero commitment
is a pivotal action a business can take in this
regard. The Science Based Targets
initiative (SBTi) is a global framework that
provides a transparent and scientific
approach for setting and achieving
greenhouse gas (GHG) reduction goals.
This report examines the adoption of SBTi
targets of corporations globally, with a
focus on the BRICS 1 nations and, more
specifically, the Indian context. This study
delves into India’s overall emission scenario
and analyses how the top three sectors,
who contribute to the country's emissions, Source: SBTi (Sep 2024); ICRA ESG Research
have embraced SBTi targets.
Established in 2015, SBTi plays a critical role in helping companies set reduction targets for GHG
emissions that are aligned with the goals of the Paris Agreement. It is a collaboration between four
key organisations: CDP (formerly the Carbon Disclosure Project), the United Nations Global Compact
(UNGC), the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF). The
initiative is designed to encourage businesses to limit global warming to well belo w 2°C, with efforts
to stay within the 1.5°C threshold. SBTi offers a framework that ensures that corporate emission
reductions are based on scientific evidence, promoting strategies to prevent the worst impacts of
climate change. Currently, fossil fuel-based companies are outside the ambit of SBTi as the
methodology for the oil and gas sector is still under development.
1 The nations of Brazil, Russia, India, China and South Africa
3
Through SBTi, companies can commit to setting science-based targets and have their objectives
independently assessed and validated, ensuring consistency with the latest scientific findings and goals
of the Paris Agreement.
Target taking process
Exhibit 2: Steps involved in setting up a science-based target
Step1: Step 2: Step 5:
Commitment Development Step 3: Step 4: Disclosure
Submitting a Submission Communicate Reporting
letter to establish Working towards Presenting the Announcing the company-wise
the intent for an emission target to SBTi for SBTi-based target emissions and
setting up a reduction target, official and sharing it tracking the
science-based in line with SBTi’s confirmation with stakeholders progress on an
target criteria annual basis
Source: SBTi Website
When a company submits a target, the SBTi Target Validation Team evaluates it to ensure compliance
with SBTi’s criteria and alignment with climate science. If the target meets the necessary standards, it is
validated and displayed on the SBTi website as ‘Targets set’. Conversely, if the target does not meet the
criteria, the SBTi offers feedback to the company, encouraging a resubmission. Companies submitting
targets for the first time are advised to use the most recent year for which data is availabl e as the base
year. If a company possesses more detailed data from an earlier year, this can be utilised for validation
purposes, provided such data is also submitted for ambition assessment. Following the submission of a
commitment letter, organisations have 24 months to present their target. As part of the submission
process, companies must schedule a date for the commencement of their target review. From this
scheduled date, SBTi begins its validation process and communicates its decision within 30 business days
for near term targets, 60 business days for financial institutions, and 60 business days for net-zero targets.
SBTi establishes distinct reduction criteria for various emission scopes. Scope s 1 and 2 encompass
emissions directly managed by a company. Organisations are required to establish targets for Scopes 1
and 2 that lead to a significant decrease in absolute emissions. For Scope 2, which pertains to emissions
from electricity consumption, companies may set a target for sourcing a specific percentage of their
electricity from renewable energy. Scope 3 presents a more complex challenge.
Exhibit 3: Measures to reduce emissions in Scope 3 category
1. Absolute reductions 2. Intensity targets 3. Supplier engagement
•This involves decreasing total Scope •This approach focuses on reducing •This entails setting a target for the
3 emissions annually (aiming for a emissions per unit of business number of suppliers who establish
minimum reduction of 4.2% per activity, which can be quantified their own science-based targets.
year in line with a 1.5°C science- against specific metrics such as This aspect of the SBT framework
based target). products manufactured or total facilitates the implementation of
revenue. ambitious goals throughout the
supply chain.
Source: SBTi Website
4
These strategies can be combined, provided they collectively address two-thirds of Scope 3 emissions.
For instance, a company might implement absolute reductions for certain carbon-related activities,
such as business travel, while employing intensity or supplier-based targets for essential goods and
services.
Current SBTi coverage
As of September 2024, nearly 9,000 companies worldwide have committed to setting emission
reduction targets, with around 3,500 companies specifically targeting net -zero emissions. On an
absolute basis, Europe leads with the highest number of committed companies (2,998), followed by
Asia (1,846) and North America (698). In contrast, the number of companies committed to emission
reduction remains relatively low in Latin America (101) and Africa (34). This study aims to analyse
this global trend, with a specific focus on Indian companies adopting SBTi in achieving Indi a's climate
goals, particularly its net-zero commitment by 2070.
5
I. NET-ZERO COMMITMENT – GLOBAL SCENARIO
• Around 3,500 companies globally have exemplified their commitment to achieve net-zero status
with varying timelines and strategies by setting up a target via SBTi. India ranks sixth with 127
companies committing to net-zero targets.
• Notably, China, contributing ~27% towards global emissions, has a lower share of companies
(i.e., 7%; 233 companies out of ~3,300 companies) with a net-zero commitment than the US or
UK. USA, the second largest emitter of GHG emissions, has a 13% share with 425 companies
committed to the net-zero goals via SBTi. The UK, while contributing only about 1% to global
emissions, has the highest share of 21% companies (702) with net-zero commitments.
The following tree map illustrates companies with net-zero commitments in different countries,
predominantly led by the United Kingdom (702), followed by the United States (425), and China (233).
This corporate action towards decarbonisation is a critical response to global climate goals set by
frameworks like the Paris Agreement ( 2UNFCCC, 2015), which aims to limit temperature rise to well
below 2°C above pre-industrial levels. However, a comparison with the emission contributions of these
countries reveals an interesting contrast between corporate commitments and national emissions .
China, for instance, is the world’s largest emitter, generating around 27% of global emissions 3 , yet it
has a relatively modest number of companies (233) with net-zero commitments.
Source: SBTi (Sep 2024); ICRA ESG Research
2 United Nations Framework Convention on Climate Change
3 Global Carbon Project, 2021
6
In contrast, the United States, the second-largest emitter at 11% of global emissions, shows a stronger
corporate response with 425 companies committed to achieving net zero4. The United Kingdom, while
generating only about 1% of global emissions, leads with 702 companies, reflecting the country's strong
policy frameworks such as the Climate Change Act of 2008 and initiatives like the Net Zero Strategy 5.
India, which contributes approximately 7% to global emissions, has 127 companies with net -zero
commitments, highlighting a growing awareness in emerging economies, driven by regulatory
frameworks like SEBI’s Business Responsibility and Sustainability Reporting (BRSR) mandate 6. Similarly,
Germany and Japan, contributing 2% and 3% to global emissions, have 203 and 99 companies ,
respectively, making net-zero pledges, underscoring the role of regulatory and market pressures in
driving corporate action.
II. NET-ZERO COMMITMENT – BRICS NATIONS
• Among BRICS nations, 416 companies have committed to the net-zero target, with 13% of the
companies from the textiles sector, followed by technology (9%) and electrical equipment (7%).
• Chinese companies in the technology, hardware and electrical equipment sectors and Indian
companies in textiles and software sectors illustrate higher net-zero commitment than other
sectors and geographies. Companies from other nations, viz., Brazil, South Africa and Russia, have
so far made smaller contributions towards the net-zero commitment.
BRICS nations are contributing majorly towards global
emissions as per the report by International Labor
Organization (ILO)7. As per the ILO report, BRICS countries
are responsible for emitting over 40% of the world’s GHG
emissions, with ~30% of the overall landmass in the world.
These nations emitted a total of 1.98 billion metric tonnes
of carbon di-oxide (CO 2) alone from the power and energy
sector in Q1 FY2024, when their emissions were 500
million tonnes higher than the overall emissions from the
rest of the world. China and India accounted for more than
90% of the BRICS emissions during Q1 FY2024, depicting
the concentration of emissions within the BRICS countries.
This is due to heavy usage of coal by these Asian nations.
Source: SBTi (Sep’2024); ICRA ESG Research
5 Climate Change Act of 2008, UK Government, 2021
6 Securities and Exchange Board of India
7 International Labor Organization’s report published in March 2022
7
As per the 2015 Paris Agreement and the 26th conference of parties (COP26) in 2021, the BRICS
nations expressed their commitment to reduce their emissions as they joined the race to achieve net-
zero by 2050. India ranks second in terms of the number of companies with net-zero commitments
among the BRICS nations.
Exhibit 6 highlights the sector-wise net-zero commitments across BRICS nations. The bar chart shows
individual contributions of each country in key sectors, while the line graph provides the sectoral mix
among the net-zero committed companies. China dominates in sectors such as technology, hardware
and equipment, and electrical equipment and machinery, showcasing significant commitments, with
these sectors making up a notable share of the overall net-zero goal set by corporates.
Source: SBTi (Sep 2024); ICRA ESG Research
India's strong presence is observed in the software and services sector, as well as in textiles, apparel,
footwear, and luxury goods sectors. Brazil, South Africa, and Russia make smaller contributions across
most sectors, except for Russia’s notable input in real estate, and automobiles and components. From
a broader perspective, the technology hardware sector's substantial contribution (approximately
13%) reflects global trends where electronics and technology companies are setting ambitious net -
zero targets, aligning with international efforts like the Paris Agreement. Further, considering India,
textiles (26 companies) and software services (18 companies) make up more than 50% of companies
committed to achieving net zero.
8
These companies are taking action in line with India’s 2070 net-zero commitment, outlining a five-
pronged ‘Pancha Mitra’ climate action target at the COP26. It is also worth noticing that India's
textiles and apparel sectors have started investing heavily in sustainable practices with majority of
companies having net-zero targets to meet the European Union's (EU’s) ESG goals and European
Green Deal. This is against the backdrop of the EU being a key export market for these sectors.
However, it is worth noting that the overall emission contribution of these sectors is not significant
compared to India’s overall emissions.
This analysis also shows the priorities within BRICS nations for achieving net-zero emissions. Sectors
like mining and automobiles show relatively smaller commitments, underscoring the challenges these
industries face in decarbonising. Given the BRICS countries’ collective economic and environmental
footprint, their sector-specific commitments will be crucial for achieving global climate targets.
III. INDIAN ECONOMY-WIDE EMISSIONS
• In 2023, India's emissions reached 2.8 billion tonns of CO₂ equivalent, an 8% rise from 2019. As
per the Niti Aayog’s India Climate and Energy Dashboard database, the energy sector is the largest
contributor with 75.8% emissions, followed by the agriculture (13.4%), Industrial processes and
produce use (IPPU) (8.4%) and waste management (2.3%) sectors. Further, major energy sub-
sectors, such as the electricity generation segment generates ~40% of emissions, followed by
cement (6%), iron and steel (5%), refinery (3%), and aluminium (2%).
• Despite commitments to achieving net zero, substantial increases in emissions continue, driven by
growth in power generation and industrial activities.
• India aims to build 50% non-fossil power capacity by 2030. The detailed sectoral assessment shows
the roles of key companies in emissions, linking net-zero targets with sustainability goals.
As per the report submitted by India as a part of Third National Communication (TNC) and Initial
Adaptation Communication to the United Nation’s Framework Convention on Climate Change
(UNFCCC) in December 2023, despite having a net-zero commitment, India's national emissions
reached 2.8 billion tonnes of carbon dioxide equivalent (tCO 2e) in 2023, which increased by ~8% from
2.6 billion tCO 2e in 2019. This underlines the dichotomy of balancing growth and emissions for an
economy like India. A sector-wide break-up of the emissions reveal that most of this has been
contributed by the energy sector (75.8%), followed by the agriculture (13.4%), IPPU (8.4%) and finally
waste management (2.3%) sectors.8 The top five sub-sectors alone formed 55% of the overall GHG
emissions. Apart from the power and energy sector, other major contributors included cement (6%),
iron and steel (5%), refinery (3%) and aluminium production (2%).
8 Niti Aayog report 2019
9
This increase in emission is primarily attributed to heightened fossil fuel combustion, methane
emissions from livestock, and the growing production of aluminium and cement. 9 For over two
decades, the energy sector has been the largest generator of India's GHG emissions, accounting for
three-quarters of the total in 2019.
Most of these emissions stem from
fossil fuel combustion for power
generation, which saw a 10%
increase in 2019. According to the
Central Electricity Authority, the
total installed capacity of fossil
fuel-based power plants in India
was 237 gigawatts in 2023,
representing approximately 57% of
the country's total power capacity.
Also, of the total installed power
generation capacity, 56.8% is
derived from fossil-fuel based
sources and 41.4% from renewable
sources like hydro, wind and solar. 10
As part of India's updated climate
commitments, it aims for non-fossil
capacity to constitute at least 50%
of its total energy generation
capacity by 2030.
Source: India Climate & Energy Dashboard – Niti Aayog ; ICRA ESG Research
The absolute emissions from the agricultural sector experienced a 3.2 % rise, totaling 420.9 million
tCO 2e. The primary agricultural activities causing GHG emissions include animal husbandry and crop
production. Significant sources of GHG emissions in the sector consist of methane generated from
enteric fermentation in livestock and rice cultivation, as well as nitrous oxide released from manure
management and agricultural soils. Enteric fermentation is a biological process that produces
methane as a by-product. This methane is subsequently released into the atmosphere through
eructation or exhalation by livestock animals. Among livestock, ruminant species such as cattle,
buffalo, sheep, and goats are the main generators of these emissions.
9 As per the India’s TNC and Initial Adaptation Communication submitted to the United Nations Framework Convention on Climate Change
10 Data from Power Ministry, GOI
10
The IPPU sector emerged as the third largest contributor to GHG emissions. This category
encompasses emissions generated from various industrial activities that alter raw materials through
chemical or physical processes. Notable industries in this segment include mineral industries (such
as glass and quick lime production), chemical industries involved in ammonia and methanol
production, and metal industries, among others. In 2019, emissions from the IPPU sector reached
263.5 million tCO 2e, primarily driven by heightened production of cement, aluminium, and lime.
The subsequent sections of this report narrate the sectoral assessment of the leading companies
accountable for more than 55% of India’s total emissions, by delving deeper into the
interconnectedness of adopting a net zero commitment and establishing SBTi targets in fulfilling
sustainability goals.
11
IV. NET-ZERO COMMITMENT BY INDIAN COMPANIES
A. POWER GENERATION SECTOR
• Of the six companies from the power sector with SBTi targets, three are conventional electricity
producing entities and the other three are from the renewable energy sector.
• Notably, none of the top three contributors of emissions in the power sector have committed to
SBTi targets, and of the six companies under SBTi, only Adani Energy Solutions has managed to
reduce absolute emissions by ~11% in the last six years by transitioning towards renewable
energy and adopting energy efficiency measures.
• Emission intensities have receded for all corporates considered for this analysis; however, the
absolute emission level is still on the rise for many of these companies.
As of March 2023, India's power sector contributed approximately 2-3% to the nation’s overall GDP
(Ministry of Power, Government of India). Despite enjoying per capita energy consumption of less
than half the global average, India ranks as the third-largest emitter of greenhouse gases. The energy
sector alone is responsible for around 75% of the country’s total emissions, underscoring its dual role
in supporting economic growth and driving environmental challenges. Given the sector’s substantial
impact on emissions, its transformation is crucial for meeting India’s climate goals and reducing the
nation's carbon footprint.
Companies with SBTi Targets
Source: SBTi (Sep 2024); ICRA ESG Research; Company filings (NSE, BSE)
12
Within this sector, only six Indian companies have adopted SBTi, with three of them from the renewable
energy space. Notably, none of the top three contributors to the power sector’s emissions have
committed to SBTi targets, though one has set an internal emission reduction goal. Among the
companies with SBTi targets, Adani Energy Solutions Ltd., having a transmission network of 19,800 km
and a 53,000-megavolt amperes (MVA) transformation capacity, achieved an 11% reduction in absolute
emissions; while JSW Energy, with a capacity of 6,677 megawatt (MW) witnessed no change in absolute
emissions due to its efforts towards renewable energy expansion, carbon capture initiatives,
implementation of waste heat recovery systems, etc.
With a capacity of 14,707 MW, Tata Power Ltd., which has a self-declared net-zero target, witnessed a
15% increase from FY2019 to FY2024. This was aligned with the industry trend, resulting from
increasing production capacities and demand for electricity and power across the nation. The company
that reported an emission reduction implemented strategies such as rooftop solar installations and
sourcing of renewable energy from the grid to enhance its sustainable energy portfolio. These
company-level efforts and challenges align with India’s broader climate commitments made at COP26.
India has pledged to achieve 500
GW of non-fossil energy capacity
by 2030, source 50% of its energy
from renewables, cut projected
carbon emissions by one billion
tonnes, reduce the carbon intensity
of its economy by 45% from 2005
levels, and achieve net-zero
emissions by 2070. To meet these
ambitious targets, it is essential to
assess the performance of power
sector companies, particularly high
emitters, and encourage the
adoption of more robust emission
reduction targets like SBTi. A clear,
dedicated pathway is needed to
guide the sector’s transition,
balancing India’s developmental
needs with its climate objectives
Source: ICRA ESG Research; Company Filings (NSE, BSE)
while minimising the costs of
transitioning to a low-carbon economy. Tracking the progress of these companies in reducing emissions
and scaling up sustainable energy practices will be critical in this journey. The following exhibit depict
the variation in absolute emissions and emission intensity for the top five power sector companies with
the highest emissions in the last six years.
13
Source: ICRA ESG Research; Company Filings (NSE, BSE)
The graphical representations in Exhibits 8, 8a, and 8b depict a comparison of the top five entities with
highest emissions as of March 2024, reflecting the variations in GHG emissions as well as the emission
intensity during the last six years. While most of the companies considered for the analysis reduced
their emission intensity, the absolute emission is still on the rise for many of them.
Source: ICRA ESG Research
14
B. CEMENT SECTOR
• In this sector , of the 11 companies with SBTi commitments, ACC Ltd. has been successful in
reducing its emission intensity by ~11% over 2019–2024, resulting from a decline in absolute
emissions during the same period. The decline in emission is primarily driven by adoption of
renewable energy, utilisation of green energy techniques, producing low-carbon cement, and
implementing carbon capture technologies, among others.
• Absolute emissions have increased substantially for the cement companies considered for this
analysis, while their emission intensity has remained range-bound/ declined, reflecting the impact
of increasing production activity of the cement industry in India.
As of March 2024, India ranked as the second-largest cement producer globally. 11 The nation’s
ongoing focus on infrastructure development is only expected to increase this demand for cement in
the coming years. The Indian cement sector has positioned itself as an initiator in promoting
efficiency initiatives and establishing ambitious net-zero objectives. The effective execution of the
Perform, Achieve and Trade (PAT) scheme has been instrumental in the adoption of energy-efficient
technologies. Cement manufacturers have recently shifted their attention towards transforming their
coal-based captive power plants into renewable energy facilities. As a result, initiatives aimed at
enhancing energy efficiency in coal power plants have not been prioritised. However, it is essential
for companies to actively pursue efficiency improvements, such as reducing the heat rate of these
power plants, until fossil fuel-based captive power plants are entirely phased out and supplanted by
renewable energy sources. Additionally, the implementation of advanced technologies, including
enhanced kilns and preheaters, has displayed significant potential in lowering emissions in the
cement industry.
Source: ICRA ESG Research; Company Filings (NSE, BSE)
11 [Link]
15
Source: ICRA ESG Research; Company Filings (NSE, BSE)
Within the cement sector, 11 companies have applied to SBTi stating their commitment to reduce
their emission level, with nine companies having public disclosures , as depicted in Exhibit 9. Of these
companies, only one entity has been successful in reducing the absolute emissions by ~11% from 2019
to 2024. Also, the top four companies by emissions have taken up SBTi targets as per the latest SBTi
database.
Exhibit 9b: Initiatives undertaken for decline in emissions
Utilisation of green
Advancement in Enhanced energy Adoption of renewable
energy, such as Waste
technology efficiency energy sources
Heat Recovery Systems
Minimisation of clinker
Employment of Incorporation of
factor and an increased
alternative fuels alternative raw materials
share of green products
Source: ICRA ESG Research; Company Filings (NSE, BSE)
It is noteworthy that four companies have committed targets and six have set targets as per the SBTi
database. For majority of the companies the emissions have increased significantly, as shown in
Exhibit 9. By adopting alternative fuels, integrating energy-efficient technologies, employing low-
carbon cement, fostering circular economy principles, and utilising carbon capture, utilisation, and
storage (CCUS) technologies, cement producers have been making notable progress in lessening their
ecological footprint. Furthermore, cement industry players have been giving higher importance to a
sustainable future by emphasising the need for eco-friendly vendors, thereby fostering a more
sustainable supply chain. Going forward, regular monitoring and implementation of the aforesaid
initiatives will determine the outcome of the efforts put in by these major players.
16
Source: ICRA ESG Research; Company Filings (NSE, BSE)
Source: ICRA ESG Research
17
C. METALS & MINING (IRON, STEEL & ALUMINIUM) SECTOR
• In the metals and mining sector, eight Indian companies engaged in the business of mining iron,
aluminium and other metals, are committed to SBTi.
• The absolute emissions increased substantially for the iron and steel sector and increased
marginally for the aluminium sector, except for Jindal Steel and Hindalco, who witnessed a
decline over the last six years. In contrast, the emission intensities for iron, steel and aluminium
sectors remained stable, except for Hindalco who witnessed a steep decline in emission
intensity during the period under study.
• Despite the progress, the sector still faces significant GHG emission challenges. Key players like
Hindalco and Jindal Steel have notably reduced emissions by adopting renewable energy and
integrating green hydrogen within their operations.
In the metals and mining sector, eight companies from India, engaged in the business of mining iron,
aluminium and other metals, are committed to SBTi. Of these eight companies, five have set targets,
two have committed targets, and one was removed from the target list as per SBTi’s March 2024
database. The analysis depicted in Exhibit 10 reflects variations in emission levels of four of these
eight entities with publicly available disclosures, as per the SBTi database.
Source: ICRA ESG Research; Company Filings (NSE, BSE)
The iron and steel industry plays a pivotal role in India's economy, contributing around 2% of the
country’s GDP. It is essential for infrastructure development and economic growth, but also poses
serious environmental challenges as a major source of GHG emissions. India is the second-largest
steel producer globally, generating 7% of the world’s total crude steel production. 12 India's steel
industry is second only to China, and contributes substantially to national emissions, with an emission
intensity of 2.55 tonnes of CO 2 per tonne of crude steel (tCO 2/tcs).
12 [Link]
18
Source: ICRA ESG Research; Company Filings (NSE, BSE)
The aluminium sector witnessed a rise in emission levels driven by expansion in production levels;
however, the entities have been taking steps towards improving energy efficiency and optimised
processes. While there are encouraging signs of progress, particularly in the reduction of Scope 2
emissions, the sector continues to face challenges in managing its overall GHG emissions.
Moving forward, a stronger emphasis on energy management, coupled with the adoption of more
advanced sustainable technologies, will be essential for the sector to achieve further reduction in
emissions and align with global carbon reduction goals. This report shows that all major contributors
considered for the study have taken up a net-zero target in this sector. Their contribution to overall
emissions from the sector was ~8% as of March 2024. Among the major emission contributing
companies in this sector, Hindalco witnessed a significant decline and Vedanta managed to keep its
emission intensity range-bound, as a result of lower emissions recorded in FY2024 over FY2019.
The mining (iron, aluminium and other metals) sector has observed an upward trend in GHG
emissions for most companies in India. Sustainable mining practices in the country are becoming
increasingly essential, influenced by environmental, social, and economic factors. The sector has
been prioritising the reduction of GHG emissions, by incorporating renewable energy sources in their
mining operations as well as by applying circular economy principles. Organisations are channeling
investments into green energy initiatives and enhanced waste management strategies to comply with
international standards, thereby securing the industry's long-term sustainability and its social license
to operate. The detailed analysis in this section represents the variation in absolute emission levels
and change in emission intensities of entities with highest emissions from the iron, steel and
aluminium industries. Two entities, viz., Hindalco and Jindal Steel, have been able to reduce their
emissions by ~3% and ~40%, respectively, by increasing their renewable energy capacity, and
integrating green energy and green hydrogen into their production processes.
19
Source: ICRA ESG Research; Company Filings (NSE, BSE)
Source: ICRA ESG Research
20
CONCLUSION
• Globally, around 3,500 companies have exhibited their commitment towards achieving net-
zero status. Currently, the United Kingdom is at the top of the table with the highest count of
companies committed to a net-zero target (702 companies); however, it contributes merely
1% towards global emission levels. China, on the other hand, has a substantially lower share
of companies (233) with a net-zero commitment, while contributing ~27% towards global
emissions.
• Currently, India ranks sixth with 127 companies committing to net-zero targets as per the SBTi
database (as of September 2024). Most of these companies (~95%) with SBTi net-zero
commitments are from non-hard to abate sectors, including textiles, software and
pharmaceuticals. Among BRICS nations, 416 companies have committed to the net-zero
target, led by China and followed by India and Brazil.
• On analysing major contributors of emissions from the top emission producing sectors of
India, it was observed that only a handful of corporates managed to reduce their absolute
emissions in the last six years. The Indian corporates considered for this study have been
implementing innovative strategies by transitioning to renewable energy and implementing
energy efficiency measures, which have led to a stability/decline in their emission intensities
to a certain extent. However, they still require concrete action plans to reduce absolute
emissions for a longer period, going forward.
• Only 7% of companies who have taken up net-zero targets through SBTi are from the sectors
that contribute ~55% to India's overall emissions (power, cement, metal and mining).
Based on this analysis, it can be concluded that a few Indian companies with set SBTi targets have
made efforts towards reducing GHG emissions, which have resulted in a marked reduction in the last
six years. Among the top emitters, those that have committed to SBTi-aligned emission reduction
goals have demonstrated measurable progress, particularly over the period 2019 –2024. This
indicates an increasing awareness of environmental responsibilities and a growing commitment to
sustainability within the corporate sector. However, despite this progress, the overall adoption of
SBTi targets remains relatively low in key industries that generate most of India’s GHG emissions.
While some companies in sectors like power, iron, steel, aluminium and cement have set ambitious
targets and reduced emissions to varying degrees, most players in these high-emission sectors are
still in the process of refining or setting their targets. This lag in widespread adoption of science -
based targets limits the overall impact of corporate efforts in reducing India’s emissions , in line with
its net-zero commitment by 2070. Furthermore, the variability in emission reductions across
sectors—driven by challenges such as rising production and energy consumption —highlights the
need for more comprehensive strategies, including energy efficiency improvements, clean
technology adoption, and better emissions management practices.
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To accelerate progress, it is imperative that a larger number of Indian corporates from these critical
sectors align their emission reduction strategies with the Paris Agreement's 1.5°C goal. This will
require circumventing not only internal operational changes but also stronger regulatory frameworks,
stakeholder engagement, and access to tools like the SBTi that ensure emission reduction efforts are
rooted in scientific evidence. Ultimately, while some Indian companies are o n the right path, a more
widespread commitment is necessary for the nation to effectively contribute to global climate goals
and meet its long-term net-zero aspirations.
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Analytical Contact Details
Name Designation Email Contact Number
Sheetal Sharad Chief Ratings Officer [Link]-esg@[Link] 0124-4545815
Sunil KS Head, ESG Analytical [Link]-esg@[Link]
Himanshu Nihalani Senior Analyst [Link]-esg@[Link] 0124-4545821
Anshita Khandelwal Analyst [Link]-esg@[Link] 0124-4545822
Harshit Pandey Associate Analyst [Link]-esg@[Link] 0124-4545816
Business Development/ Media Contact Details
Name Designation Email Contact Number
L. Shivakumar Chief Executive Officer [Link]-esg@[Link] 022-61693304
Head – Group Corporate Communications & Media
Naznin Prodhani communications@[Link] 0124-4545860
Relations
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