Financial impact of climate-related risks to Indian cos evaluated at Rs 3,285bn
By siliconindia | Friday, March 25, 2022
The financial impact of climate-related risks to Indian companies responding to global non-profit environmental disclosure system CDP was estimated at Rs 3,285 billion, with climate-related opportunities cited at Rs 3,000 billion.
CDP India launched its 2021 Annual Disclosure report on Thursday at a virtual event. The report, Disclosure Imperative for a Sustainable India, details the climate action disclosed by 88 Indian companies responding to CDP's climate, water and forests questionnaire in 2021.
CDP's new 2025 strategy, Accelerating the Rate of Change, recognises the urgent need for such climate commitments to be translated into swift, effective action, with increased accountability and transparent climate plans from companies, cities, states and regions alike.
It sets out how CDP will respond to the interlinked crises of catastrophic climate change and an irreversible loss of nature and habitats.
Indeed, this rate of change seems to be accelerating in the Indian market. In 2021, 85 Indian companies disclosed to CDP's Climate Change questionnaire in response to a request to do so from investors, representing a 27 per cent growth since 2020 when 67 companies responded.
It is evident that Indian companies are becoming increasingly climate conscious, with 64 Indian companies joining the Science-Based Targets initiative in 2021, making India the leader among emerging economies when it comes to committing to making science-based targets for the transition towards a low carbon economy.
The report also showed that 72 companies, representing 85 per cent of all Indian companies responding to CDP, engaged with suppliers at different levels across their value chain on climate related issues, an essential step in addressing Scope 3 emissions.
Tech giant Wipro has also become the first Indian company to join CDP's Supply Chain Program as of 2022, representing an exemplary step forward in corporate climate action within the market.
These many achievements by Indian companies responding to CDP in 2021 will be celebrated at the annual event, which will feature exclusive sessions engaging corporates on key areas of the transition to a sustainable India.
Prarthana Borah, Director, CDP India, at the report launch said, "This report captures a landmark year 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."
The companies demonstrated impressive climate action and environmental leadership across water security and forest protection, and included ACC, Infosys, Mahindra & Mahindra, Tech Mahindra, WIPRO in climate change; Mahindra & Mahindra, Tech Mahindra and Ambuja Cement in water.