India is committed to reducing its greenhouse gas emissions. Recognizing the harmful effects of such emissions on our planet, India alongside 195 governments signed the historic Paris Agreement in 2015. The agreement aims to limit global warming to below 2°C, with an aspirational goal of 1.5°C. To achieve this, it is essential to reach net zero emissions by 2050 at the latest.

In line with its global commitment, India has undertaken to reducing carbon emissions by 50% by 2030 and for the entire economy to be Net zero by 2070.

The corporate sector is seen as integral to help India achieve its decarbonisation targets, and some companies now voluntarily disclose their Net zero and/or Carbon Neutrality targets.

Based on disclosures upto 30 September 2024 for the NIFTY50 constituents, IiAS Sustain finds that 31 or 62% of the NIFTY50 companies either a have a Net zero or a Carbon Neutrality target. Further:

20 companies have a Net zero target. 11 companies have a Carbon Neutrality target. Further, four companies have disclosed both Net zero and intermediate Carbon Neutrality targets. Of the 19 companies that not have not committed to either a Net zero or a Carbon Neutrality target year, a few have nonetheless articulated a de-carbonization strategy. For companies that have made a commitment for both climate goals we have chosen the more stringent Net zero.

Climate Targets

• Infosys has been Carbon Neutral since 2020.
• Of the Carbon Neutrality target for the balance, the earliest target is for Cipla (2025) and the longest-dated target is for Maruti Suzuki (2070).
• For Net Zero, the earliest target is for Tata Consultancy Services (2030), while NTPC states it will achieve net zero by 2070.

Median Targets

For the 31 companies that have disclosed either target, the median year is 2040.

• Among these, 20 companies have set a net zero target with a median year of 2040.
• For 11 companies that have declared a Carbon Neutral target, the median year is 2032.

General Comments

• Three of the ten financial sector companies have disclosed a target year.
  • SBI is the first and expects to be Carbon Neutral by 2030.
• Two of the four PSUs in the NIFTY50 have disclosed net zero targets.
  • BPCL has a Net zero target by 2040.
  • NTPC has a Net zero target by 2070.
• All six IT services companies have disclosed a Net zero target; As mentioned above, Infosys has been Carbon Neutral since 2020.
• Most companies in the hard to abate sectors, which comprise a significant portion of GHG emissions, have disclosed climate targets with Coal India being the sole exception.

The pursuit of Net zero or Carbon Neutrality isn’t just ticking the box to meet your compliance needs. In today’s world, it is an economic, strategic, and competitive necessity for long-term growth and business resilience. IiAS will continue to monitor these disclosures.

Read the report here.