Over Half of India’s Top Listed Companies Report Scope 3 Emissions: PwC Study

According to a recent PwC India report titled “Navigating India’s Transition to Sustainability Reporting,” over half (51%) of India’s top 100 listed companies have voluntarily disclosed their Scope 3 emissions data for the fiscal year 2023. This significant disclosure reflects a proactive approach in the Indian corporate sector towards environmental transparency and underscores their commitment to the global net zero journey.

Scope 3 emissions encompass indirect emissions that occur in a company’s value chain, including both upstream and downstream activities. This includes emissions from the production of purchased goods and services, business travel, employee commuting, waste disposal, use of sold products, and investments, among others. These emissions are the most challenging to measure and manage due to their extensive scope across multiple tiers of a company’s operations.

The PwC report highlights the growing maturity of ESG (Environmental, Social, and Governance) regulations in India, spurred by the introduction of the Business Responsibility and Sustainability Reporting (BRSR) by the Securities and Exchange Board of India (SEBI) in May 2021. The BRSR, which replaced the Business Responsibility Report (BRR), aligns with global reporting frameworks like the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), and the Task Force on Climate-Related Financial Disclosures (TCFD).

Key findings from the report include:

• 51 out of the top 100 listed companies disclosed Scope 3 emissions.
• 44% conducted life-cycle assessments of their products or services.
• 89% disclosed information on leadership indicators relevant to ESG.
• 34% reported reductions in Scope 1 emissions, and 29% in Scope 2 emissions.
• 49% increased their energy consumption from renewable sources.
• 31% have declared their net-zero targets.

Sambitosh Mohapatra, Partner & Leader, ESG at PwC India, commented, “With the BRSR becoming a mandatory report for businesses, ESG considerations have now become key strategic priorities in boardroom discussions, reflecting enhanced awareness of the importance of sustainability and responsible business practices.”

The active disclosure of Scope 3 emissions by Indian companies is not only a step towards greater environmental accountability but also plays a crucial role in attracting informed investment decisions. As companies continue to enhance their ESG reporting, the integration of transparent and consistent data becomes essential in tracking progress towards sustainability goals.

This commitment by Indian businesses is a part of a larger national agenda to achieve net-zero emissions by 2070, highlighting the crucial role of the private sector in meeting global and national climate objectives. The ongoing enhancement of regulations and the rapid development of ESG frameworks are positioning India as a leader in the global shift towards credible and transparent sustainability reporting.