Majority of top-100 firms making disclosures about carbon emissions: PwC

Supplementing the efforts of the Indian government to achieve a net-zero emission target by 2070, as many as 51 per cent of the top-100 companies have started making disclosures on a voluntary basis about carbon emissions, says a PwC India survey.

The survey further said that about 31 per cent of the respondent companies have disclosed their net-zero targets.

The government and the regulators have introduced new regulations pertaining to ESG (environmental, social and governance) for businesses. India's transition to BRSR Core positions the nation as a frontrunner in the global transition towards a more credible and transparent sustainability reporting landscape.

"51 per cent of India's top 100 listed companies by market capitalisation disclosed their Scope 3 data for FY23 despite it being a voluntary disclosure in Business Responsibility and Sustainability Reporting (BRSR)," said the report, 'Navigating India's Transition to Sustainability'.

This, it added, "sheds light on how Indian businesses are taking a step further in ESG reporting as Scope 3 emissions are crucial to understand an entity's net zero journey."

"With the BRSR becoming a mandatory report for businesses, ESG considerations have become key strategic priorities in boardroom discussions. This is a testimony of the enhanced awareness of the importance of sustainability and responsible business practices," said Sambitosh Mohapatra, Partner & Leader, ESG, PwC India.

ESG reporting through the BRSR has ushered in greater transparency and a holistic view of a business's environmental and societal impact, thus, enabling investors and other stakeholders to form key decisions through an ESG lens, make comparisons across companies and sectors, and track progress over time, PwC India said.

The survey further said 44 per cent of the top 100 listed companies conducted the life-cycle assessment of their products or services, 89 per cent of the companies disclosed their information on leadership indicators, 49 per cent have increased their energy consumption from renewable sources.

According to the report, the key initiatives which led to a reduction in emissions included transitioning to energy-efficient technologies such as LEDs, adopting efficient air-conditioning, ventilation, and heating systems, shifting to renewable sources for securing energy needs, purchasing carbon offsets, and entering into off-site power purchase agreements.

"As India commits to achieve its net zero vision by 2070, the business sector is being viewed as a critical enabler in furthering this ambition," it said.

India's transition to BRSR Core positions the nation as a frontrunner in the global transition towards a more credible and transparent sustainability reporting landscape, it added.

The report has analysed the publicly accessible BRSR reports of top 100 companies (Nifty 50 companies and NEXT 50 listed companies) and their response to the regulatory requirement of mandatory reporting under the BRSR for the financial year ended 31 March 2023.