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At COP26 in November 2021, Prime Minister Modi committed India to achieving net zero emissions by 2070 and significantly strengthened the country's 2030 climate targets. For Indian companies, this national commitment — combined with the BRSR framework, Reserve Bank of India green finance initiatives, and rising pressure from global supply chains and investors — means net zero is no longer a question of intention. It is a question of execution.
What Corporate Net Zero Targets Actually Mean
Net zero targets are often announced without clarity on what they actually commit a company to do. Three dimensions determine whether a target is substantive. First, boundaries — the range of emission sources covered by the target. Companies sometimes set targets covering only direct operational emissions, or only certain geographies or product lines, excluding the largest sources of impact. A credible net zero target addresses the full value chain. Second, mitigation strategy — the combination of measures used to achieve the commitment. Emissions abatement involves preventing greenhouse gas releases by reducing or eliminating emission sources across operations and the value chain. Neutralisation refers to the permanent removal and storage of atmospheric carbon, which can in theory offset residual emissions. Compensation mechanisms include direct investment in emissions reduction activities, purchasing carbon credits, and avoided emissions from sold products. Third, timeframe — the year by which a company commits to having achieved a net zero state. Long-term targets without near-term milestones carry limited credibility. The combination of these three dimensions determines whether a net zero target reflects genuine ambition or is largely performative.
India's Policy Context and the Role of BRSR
India's 2070 net zero commitment is backed by strengthened 2030 pledges — including a target to source 50% of energy from non-fossil fuel sources and reduce the emissions intensity of GDP by 45% relative to 2005 levels. For listed companies, the new Business Responsibility and Sustainability Reporting framework applies to the top 1,000 listed companies from the 2022-23 fiscal year, requiring structured disclosure on environmental, social, and governance performance including GHG emissions data. The Reserve Bank of India has also joined the Network for Greening the Financial System, a global coalition of central banks and regulators working to mobilise capital for green and low-carbon investments. Together, these developments create a policy and regulatory environment where climate performance is increasingly a factor in access to capital, supply chain participation, and regulatory compliance — not only a voluntary commitment.
What the 1.5°C Pathway Requires from Industry
Limiting warming to 1.5°C, with little or no overshoot, requires net CO2 emissions to reach zero by 2050 at the latest — accompanied by deep reductions in non-CO2 emissions across all sectors. For industry, this translates into several structural changes: complete or near-complete decarbonisation of energy supply and industrial processes; elimination of CO2 emissions associated with agriculture, forestry, and land use by 2030; rapid deployment of carbon dioxide removal to neutralise residual emissions that cannot be eliminated; and sustained investment in low-carbon technologies and infrastructure across the value chain. These are not aspirational endpoints — they are the conditions under which science indicates warming can be contained at this level. Indian companies operating in energy-intensive sectors, or with significant Scope 3 footprints through global supply chains, face some of the most material exposure to this transition.
The Business Case: Why Transition Risk Favours Action
Companies often assume that transitioning to net zero is incompatible with maintaining profitability. The evidence does not support this assumption. Organisations that integrate climate risk and opportunity into their business models — identifying transition risks early, repositioning for low-carbon demand, and improving energy and resource efficiency — consistently demonstrate that profitable net zero pathways exist. The risk profile is asymmetric. Companies that delay or ignore the transition are exposed to an accelerating set of pressures: customers demanding verified emissions data, investors pricing transition risk into valuations, and policymakers introducing carbon pricing and reporting obligations. Companies with significant emissions and no credible decarbonisation strategy face higher regulatory, financial, and reputational risk than those that have begun the transition — even if progress is incomplete. The question for Indian businesses is not whether to act, but how to develop and sequence a strategy that is both credible and commercially viable.