 "Carbon emission, pollution, climate change")
A global survey by the Boston Consulting Group (BCG) and sustainability management platform CO2 AI has identified India as one of the top three countries in reporting, setting targets, and reducing carbon emissions, ranking behind only China and Brazil. Despite this achievement, overall global progress remains slow.
The report, titled ‘Boosting Your Bottom Line Through Decarbonisation’, highlights that 12 per cent of Indian companies are reporting their emissions, compared to a global average of 9 per cent. Furthermore, while 16 per cent of companies worldwide have set emission reduction targets, India surpasses this with 24 per cent. In line with the Paris Agreement’s goal of limiting global temperature increases to 1.5 degrees Celsius above pre-industrial levels, 15 per cent of Indian companies are actively reducing emissions, exceeding the global average of 11 per cent.
The BCG-CO2 AI survey for this year gathered insights from 1,864 executives overseeing their companies’ efforts in measuring, reporting, and reducing emissions. The participating companies spanned 16 major industries, with annual revenues ranging from $100 million to over $20 billion, collectively responsible for around 45 per cent of global greenhouse gas emissions. The survey covered 26 countries.
Benefits of decarbonisation
Now in its fourth year, the annual survey reveals that global figures for carbon emissions reporting, target-setting, and reduction have fallen compared to 2023. This comes against the backdrop of 2024 being officially recorded as the hottest year in history, with this summer surpassing last year’s heat levels.
The findings also show that companies are financially benefiting from decarbonization efforts. At least 25 per cent of businesses reported gaining annual decarbonization benefits exceeding 7 per cent of their revenues, translating to an average net benefit of $200 million per year. These gains were driven by lower operating costs due to efficiency improvements, waste reduction, streamlined materials or processes, and the adoption of renewable energy.
Hubertus Meinecke, BCG’s global leader in climate and sustainability and a co-author of the study, noted that many companies are seeing “significant rewards” from decarbonisation, including financial growth, enhanced reputations, and greater operational efficiency.
Driving change with technology
The study found that companies leveraging AI for emission reduction are 4.5 times more likely to succeed. The survey indicated that AI enhances sustainability efforts by automating routine tasks, enabling teams to concentrate on strategic initiatives like reducing emissions and creating value.
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An Indian Express report quoted Charlotte Degot, chief executive of CO2 AI and co-author of the report, as saying that the window for companies to increase ambition and take decisive action to limit global warming to 1.5 degree Celsius is rapidly closing. However, artificial intelligence (AI) holds the potential to be a game changer, enabling businesses to reduce emissions and make meaningful progress in addressing climate change, he said.
The research highlights the importance of companies leveraging AI responsibly to ensure they meet both their climate goals and business objectives.
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