Indian companies are way ahead in the region in disclosing their carbon emissions and setting performance targets for mitigation of greenhouse gases (GHG) emissions, according to a latest survey of the Confederation on Indian Industry (CII).
The total GHG emissions reported by the respondents of carbon disclosure project (CDP) 2009 stands at 68.9 million metric tones (MT), which is almost double the GHG emissions reported in the last two years.
As many as 68 per cent of the respondents to CDP 2009 have reduction plans in place for slashing either their energy or GHG emissions as compared to 61 per cent last year while 84 per cent of the companies do not consider existing regulatory mechanisms as a risk but see it as an opportunity for triggering long term investment in energy efficient technologies. However, these companies do acknowledge that in future, the regulations may affect their businesses.
The report says 82 per cent of the companies acknowledge physical risks such as damage, disruption and displacement due to climate change as some of the major challenges that could result in financial losses.
This year a larger number of companies have not only started disclosing information on their GHG emissions, but they are also adopting more accurate methodologies for doing so and are providing categorical break-downs of their GHG emissions.
Close to 63 per cent of the companies disclosed their GHG emissions in CDP 2009, which is almost double as compared to only 33 per cent in CDP 2008.
This 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.
In the latest survey 44 Indian companies have responded to the CDP this year. In the disclosure, companies reported 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.
The most significant change from last year is that the responses have been improving both in terms of content and comprehensiveness.
