India has secured the sixth position globally in corporate climate action, with 127 companies committing to net-zero targets under the Science-Based Targets initiative (SBTi), according to the latest report from ICRA ESG Ratings. Although India contributes approximately 7 per cent of global emissions, its corporate commitments reflect a growing awareness of climate concerns. However, high-emission sectors such as power, energy, and cement are lagging behind in adopting these goals.

The report reveals that fewer than 10 per cent of firms in these high-emission sectors, which contribute to 55 per cent of India’s overall greenhouse gas emissions, have adopted net-zero targets. It also highlights that coal-based power generation remains dominant in the country’s energy mix, although a shift toward renewable energy is evident among companies with net-zero commitments.

In the renewable energy sector, the report notes that six Indian power companies have adopted SBTi targets, with three of them primarily focused on renewable energy. Adani Energy Solutions achieved an 11 per cent reduction in absolute emissions by employing strategies like renewable energy sourcing and carbon capture initiatives. JSW Energy, despite expanding its renewable energy operations, kept emissions stable by implementing sustainability measures such as waste heat recovery systems. On the other hand, Tata Power experienced a 15 per cent increase in emissions between FY2019 and FY2024, due to rising electricity demand and expanded production capacities.

The cement sector, a major emitter due to clinker production, is addressing emissions by adopting alternative fuels like biomass and integrating carbon capture technologies. In the metals and mining sectors, companies with net-zero commitments have shown higher adoption of sustainable practices, although progress remains inconsistent.

Despite these efforts, coal continues to play a significant role in India’s energy demand, highlighting the challenges in transitioning to a fully sustainable energy mix.