India outpaces the global average in setting, reducing carbon emission targets

A global survey conducted by the Boston Consulting Group (BCG) and sustainability management platform CO2 AI has ranked India among the top 3 countries for reporting, setting targets, and reducing carbon emissions, trailing only China and Brazil. Despite this achievement, global progress remains slow. The report, titled Boosting Your Bottom Line Through Decarbonisation, revealed that 12% of Indian companies are reporting their emissions, compared to the global average of 9%. Moreover, 24% of Indian companies have set emission reduction targets, surpassing the global average of 16%. In line with the Paris Agreement’s goal of limiting global temperature increases to 1.5°C above pre-industrial levels, 15% of Indian companies are actively reducing emissions, compared to 11% globally. The survey, which included responses from 1,864 executives across 16 major industries and 26 countries, covered companies with annual revenues ranging from US$ 100 million to over US$ 20 billion, representing approximately 45% of global greenhouse gas emissions.

The survey, now in its fourth year, also highlights the financial benefits of decarbonization efforts. At least 25% of companies reported gaining annual decarbonization benefits exceeding 7% of their revenues, translating to an average net benefit of US$ 200 million annually. These gains are primarily driven by lower operating costs, improved efficiency, reduced waste, streamlined materials and processes, and the adoption of renewable energy. The study emphasized the transformative potential of AI, with companies using AI for emission reduction being 4.5 times more likely to succeed. BCG's global leader in climate and sustainability, Mr. Hubertus Meinecke, noted that many companies see “significant rewards” from decarbonization, including financial growth and enhanced reputations. CEO of CO2 AI, Ms. Charlotte Degot, highlighted AI’s potential to help companies meet their climate goals, stressing that decisive action is critical as the window to limit global warming to 1.5°C is rapidly closing.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.