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Carbon Disclosure Project Report for India
The CDP India Report highlights actions of top Indian companies in reducing emissions as well as adapting to the direct impacts of climate change.
It also identifies the preparedness of the Indian industry in converting the challenges faced by the climate change into opportunities.
The Carbon Disclosure Project (CDP) Report 2009 is the third edition of the CDP India report since it was first published in 2007 and is based on the top 200 companies in India based on market capitalisation.
CDP has the support of 475 leading global institutional investors representing over $ 57 trillion of funds under management. The carbon disclosure project collects information from more than 3,700 of the world’s largest corporations on their greenhouse gas emissions, the potential risks and opportunities climate change presents, and strategies for managing those risks and opportunities. The carbon disclosure project (CDP) Report 2009 – India 200 is a part of the series.
The disclosure process was carried out by the CII-ITC Centre of Excellence for Sustainable Development and WWF-India in partnership with the CDP. In the disclosure, companies report on their carbon emissions data, reduction targets, associated risks and opportunities and increasingly board level managerial resources are spearheading the execution of climate change strategies within their organisations.
Key findings of the report are:
- The Indian companies like their MNC counterparts acknowledge climate change and GHG emissions as a major challenge.
- The companies do acknowledge that the climate change is likely to impact their business and financial performance, market and customers in the future.
- The companies, however, don’t consider existing regulatory mechanisms as a risk. However, these companies do acknowledge that in future, the regulations may affect their businesses.
- The companies also agree that GHG emissions presents business opportunities such as for those for clean energy, energy efficient products, and emission trading; and companies have made investments or are planning investments to tap this potential.
- Indian companies are seeing the benefits of measuring and managing their carbon emissions.
- Although majority of the companies have emission reduction plans and targets in place, in most cases, the targets are subjective instead of being quantitative and without a timeline.
- Some proactive companies have already started incorporating policy and decisions which will lower their carbon emissions.
- Some are putting plans in place towards this end. But there are also some which have not done much to counter it though they recognize its importance.
- However, when it comes to actually accounting their GHG emissions, only few are doing it, and this remains a cause of concern.
- Companies are not yet prepared for predicting their future emissions and they also do not incorporate the costs of future emissions into capital investment decisions.
This report has some limitations. It is based on response received against a questionnaire sent to 200 large companies. Only 44 Indian companies responded to the Carbon Disclosure Project (CDP) this year. However the most significant change from last years’ is that the responses have improved both in terms of content and comprehensiveness. Indian companies are way ahead in the Asia Pacific region in disclosing their carbon emissions and setting performance targets for mitigation of GHG emissions.
The carbon disclosure project (CDP) is an effective means to encourage companies to voluntarily disclose their GHG emissions and also to highlight the various risks and opportunities posed by climate change. The Report 2009 gives clear signs that the Indian Industry in India has adopted an approach that can help India leapfrog to a low carbon economy. As the world moves further to address climate change, the leading Indian companies are gearing up to grab opportunities to provide the world with low carbon products and services.