India has solidified its position as a global leader in corporate climate action, ranking sixth worldwide, with 127 companies committing to net-zero targets under the Science-Based Targets initiative (SBTi), according to the latest report by ICRA ESG Ratings. Despite being responsible for approximately 7% of global emissions, Indian corporations are demonstrating increasing awareness and action toward sustainability. 

However, the report points out that high-emission sectors such as power, energy, and cement—contributing 55% of India’s overall greenhouse gas emissions—remain significantly behind in adopting net-zero strategies. Less than 10% of companies from these industries have committed to net-zero goals, highlighting the need for greater engagement in sectors critical to reducing the country’s carbon footprint. 

Coal-based power generation continues to dominate India’s energy mix, presenting a major challenge for achieving carbon neutrality. Yet, a promising shift is visible, with many net-zero-committed companies transitioning to renewable energy sources. This aligns with India’s broader commitment to integrating ESG principles into corporate operations and fostering a carbon-neutral strategy to meet global climate goals. 

The report underscores the need for government intervention to boost sustainability initiatives. Over 60% of sustainability-focused startups in India have called for increased funding support, reflecting the vital role government and policy play in fostering innovation and enabling a low-carbon economy. 

For India to accelerate its sustainability journey, expanding net-zero commitments across high-emission sectors and supporting startups driving climate innovation are key priorities. With increased momentum, India is well-positioned to strengthen its global leadership in ESG and sustainability. 

Sources:  

https://energy.economictimes.indiatimes.com/news/renewable/over-60-pc-sustainability-startups-call-for-increased-govt-support-to-boost-funding-in-segment-survey/115901646 

https://www.pv-magazine-india.com/2024/12/03/only-7-of-indian-companies-with-net-zero-targets-hail-from-high-emission-sectors-icra-esg-ratings/ 

https://www.constructionworld.in/policy-updates-and-economic-news/india-ranks-6th-globally-with-127-firms-committed-to-net-zero-targets/66048 

https://www.indiabusinesstrade.in/blogs/india-ranks-6th-globally-in-corporate-climate-action-report/