Why in news?
Executives from the Science Based Targets initiative (SBTi) visited India ahead of the first Mumbai Climate Week to urge Indian companies to adopt science‑aligned emission‑reduction targets. They emphasised that as the world’s fastest‑growing major economy, India can significantly influence global efforts to manage climate risk.
Background
SBTi was launched in 2015 by the United Nations Global Compact, CDP (formerly Carbon Disclosure Project), the World Resources Institute and the World Wide Fund for Nature. It develops standards and tools that allow companies to set greenhouse gas emission reduction targets consistent with limiting global warming to 1.5 °C. The initiative validates corporate targets and recognises those in alignment with the Paris Agreement.
Key points
- Global reach: More than 10 000 companies worldwide work with SBTi, representing about 40 percent of global market capitalisation and roughly 30 percent of global emissions.
- India’s potential: Fewer than 500 Indian companies have registered with SBTi. Executives argue that, given India’s economic size and growth, at least 5 000 firms should commit to science‑based targets. For comparison, Japan, with a smaller population, has around 2 000 companies registered.
- Strategic priority: SBTi leaders David Kennedy and Arun Nanda met Indian corporate leaders and policymakers to stress that climate action must move from aspiration to conviction. They highlighted supply‑chain engagement as a powerful lever, noting that large manufacturers can activate thousands of suppliers by setting targets.
- Opportunities and challenges: Green growth aligns with investor expectations and export markets, particularly in Europe. Renewable energy investments often pay back quickly, and energy efficiency measures yield competitive advantages. SBTi plans to increase the number of Indian companies adopting science‑based targets over the next 18 months and to refine its frameworks to suit local conditions.
Why it matters
As climate regulations tighten worldwide, Indian businesses that adopt science‑based targets can gain a competitive edge, secure access to international markets and contribute to global emission reductions. The SBTi visit underscores the need for systemic transformation, where emission goals extend beyond corporate headquarters to suppliers and consumers.
Sources: The Hindu
