How Indian Businesses Can Capitalise on Net Zero Carbon Emissions Target

India’s announcement of a net-zero target is a signal of climate action—a much-awaited move by many developed nations to justify their own commitments with a perceived level playing field. Apart from these, 64 Indian companies have pledged to reduce greenhouse gas emissions, according to the Science-Based Target Initiative—a global alliance that enables businesses to establish their own climate pledges. Net zero is a state in which the activities within the value chain of a company result in no net impact on the climate from GHG emissions. A credible net zero strategy entails removing emissions sources in the value chain at a rate and scale commensurate with reducing global warming to 1.5°C as much as possible, and then removing any remaining emissions that are difficult to eradicate through permanent carbon dioxide removals. Net-zero targets must be accompanied by detailed transition plans that include immediate, short-, and long-term milestones for deep emissions reductions, investments in innovation and new business models; upskilling and reskilling to enable an inclusive workforce transition; enhanced support for SME partners and suppliers, integration of social indicators into net zero reporting and disclosure; and inclusion in their approach.