India has been found to be one of the top three countries in reporting, target-setting and reduction of carbon emissions, a global survey by Boston Consulting Group (BCG) and CO2 AI, a sustainability management platform, has found. The country lags behind only China and Brazil. Globally, however, progress is slow.
The report, “Boosting Your Bottom Line Through Decarbonization”, which was released on Tuesday, revealed that 12 per cent of Indian companies were reporting emissions, against the global average of 9 per cent. The report also found that while 16 per cent companies globally had set targets for controlling emissions, the figures for India were 24 per cent. Moreover, in line with the Paris Agreement—which seeks to limit global average temperature rise to 1.5°C above pre-industrial levels—15 per cent of Indian companies were reducing their carbon emissions, higher than 11 per cent globally.
India’s economic and environmental balance
Prime Minister Narendra Modi announced during COP 26 in 2021 that India would achieve net zero by 2070. “India is emerging as a global leader in decarbonization, demonstrating a strong commitment to tackling climate change. With comprehensive emission reduction targets across all emission scopes, Indian companies are not only reducing their carbon footprint but also realizing significant financial benefits. By aligning their efforts with the 1.5°C Paris Agreement pathway, and leveraging advanced technologies like AI, Indian businesses are turning sustainability into a strategic advantage. This progress showcases India’s ability to drive both economic growth and environmental responsibility, setting an example for nations worldwide,” said Anirban Mukherjee, Managing Director Lead, Climate & Sustainability, BCG India, in a statement.
This year’s BCG-CO2 AI survey involved 1,864 executives responsible for supervising their company’s emissions measurement, reporting and reduction initiatives. The companies belonged to 16 major industries, had annual revenues ranging from $100 million to more than $20 billion, and accounted for approximately 45 per cent of global greenhouse gas emissions. The survey was spread over 26 countries.
Rewards of decarbonisation
This is the fourth such annual survey and reveals that the global figures for reporting, target setting and reduction of carbon emissions were lower than 2023’s findings. The survey comes at a time when 2024 has officially become the hottest year since record keeping began, with this summer beating last summer’s measurements.
Companies are also financially benefiting from decarbonisation, according to the findings. At least 25 per cent of the businesses “reported annual decarbonisation benefits equal to more than 7 per cent of their revenues for an average net benefit of $200 million a year”. This was due to lower operating costs, often resulting from initiatives focused on efficiency, waste reduction, the rationalization of materials or footprints, or the use of renewable energy.
Hubertus Meinecke, BCG’s global leader of climate and sustainability and a co-author of the study, said that they found that some companies were reaping “substantial rewards” from decarbonisation, including significant financial gains, enhanced reputations, and operational efficiencies.
“Too few companies are seizing the financial gains offered from decarbonisation. By mastering essential foundational actions like measurement, reporting, target-setting, and taking advanced steps toward sustainability, these companies can become more efficient, more profitable, and demonstrate a stronger commitment to a greener future,” said Diana Dimitrova, a BCG managing partner, director, and co-author of the study.
Powering change through technology
The study found that companies deploying AI for emission reduction were 4.5 times more likely to succeed. AI has been found to increase sustainability efforts by automating tasks, freeing teams to focus on strategic goals like cutting emissions and capturing value, according to the survey.
“The window for companies to increase ambition and take decisive action to limit global warming to 1.5°C is rapidly narrowing, but AI has the potential to be a game changer, empowering businesses to reduce emissions and make meaningful strides toward mitigating climate change,” said Charlotte Degot, CEO and founder of CO2 AI and a co-author of the report, in a statement.
“Our research shows the need for companies to double down on using AI responsibly to make sure they can deliver their climate goals and bottom-line business targets,” he added. (Indian Express)
