- 88+ Indian companies responded to CDP's disclosure system and have joined CDP’s 2022 campaign calling on to disclose environmental data.
- 64 Indian companies have joined the Science-Based Targets initiative in 2021.
- The number of companies asked to disclose to the CDP questionnaires rose by 27% compared to 2020.
- The 2021 campaign demonstrated that companies are more than twice as likely to disclose their environmental impact when directly engaged.
India; June 23, 2022: The latest edition of CDP's annual India disclosure report 2021, reveals some positive and not-so-positive developments in the Indian corporate sector with regards to carbon emissions. Climate change’s financial impacts may limit India’s ambitious growth plans & achieve net-zero target by 2070. The financial impact of climate-related risks to Indian companies responding to the global non-profit environmental disclosure system CDP was estimated at Rs 3,285 billion, with climate-related opportunities cited at Rs 3,000 billion.
Of the 37 Indian companies that have been approached for their environmental data, only 9 have as yet submitted their climate change status report. The companies that have been approached as part of these campaigns range across sectors—23% of the companies are from the services sector, manufacturing accounted for 16%, materials for 14%, infrastructure for 10% and fossil fuels for 9% respectively. Companies that were asked to disclose data on water security and deforestation were from the heavy industry segment.
Sharing her insights, Mrs. Prarthana Borah, Director India, CDP said, "Disclosure is the first step to environmental action. Also, the year 2022 is a landmark for India's climate ambition trajectory, as the regulatory board SEBI introduced mandatory sustainability reporting for the top 1,000 listed companies by market capitalization and Prime Minister Narendra Modi announced at COP26 the country's commitment to reach net-zero by 2070."
In order to meet these commitments, investors and financial institutions require environmental disclosure from the companies in their portfolios so that they can understand and manage their financed environmental impact.
Way Forward: Due to the rise in pollution through carbon emissions, disclosure of climate change risk by the companies shall play a vital role in the corporate sector’s contribution towards a better world. The practice of voluntary disclosure by the companies followed in India has failed to keep up with the global pace. With more countries turning towards mandatory climate disclosures, India needs to step up and take it as a duty towards the environment and sustainable development at large. Also, at this juncture, we cannot take a backseat regarding environmental protection and achieving sustainable goals. Many Indian companies are already taking climate risk disclosure seriously, and this is the right time to mandate the same for all and ensure that the country vow to achieve the net-zero target by 2070.
ENDS
For more information or exclusive interviews, please contact:
- Kavita Tiwari, CDP, tel. +91 9717705816 | Email : [email protected]
About CDP
CDP is a not-for-profit charity that runs the global disclosure system or investors, companies, cities, states and regions to manage their environmental impacts by running a global environmental disclosure system. Each year CDP supports thousands of companies, cities, states and regions to measure and manage their risks and opportunities on climate change, water security and deforestation. We do so at the request of their investors, purchasers and city stakeholders. Over the last two decades we have created a system that has resulted in unparalleled engagement on environmental issues worldwide. In 2020, Over 9,600 companies reported through CDP on climate change, water security and forests, and, over 800 cities and more than 120 states and regions disclosed their environmental impacts through CDP.
CDP India
CDP began working in India in 2008 and was formally registered in 2012, working on disclosure and driving climate action. It serves as a source of knowledge for hundreds of Indian corporations, from those that are just beginning on the road to corporate environmental disclosure, through to those looking to improve sustainability and make commitments to reduce environmental impact.
It is the only NGO to be named in India’s INDC submission to the UNFCCC owing to its corporate environmental data repository and tracking of emissions and mitigation data from the Indian Industry. CDP India also actively participated in the Government of India’s Ministry of Environment, Forests & Climate Change (MoEFCC) work on future carbon market mechanisms. In addition to our work on disclosure, CDP India is actively engaged in other initiatives including Internal Carbon Pricing (ICP), Science-based targets (SBT), and RE100.