GHG Emission Disclosure in India - It's Not Loud, But It's Serious.

ayshasathar101
Jul 15
4 min read

Updated: Jul 28

"From FY 2023 – 2024, the top 1000 listed entities (by market capitalisation) shall make disclosures as per the updated BRSR format, as part of their Annual Reports." - Securities and Exchange Board of India

What is the Mandatory Disclosure?

Under SEBI's (Securities and Exchange Board of India) BRSR (Business Responsibility and Sustainability Reporting) framework, India's top 1,000 listed companies are now mandated to report on Scope 1, Scope 2, and Scope 3 (includes upstream and downstream emissions) emissions and may be measured in accordance with the Greenhouse Gas Protocol, making India a part of the Global Standards.

The top 250 listed companies also have additional value chain (the activities involved in creating and delivering a product that increase its value) disclosures, including upstream and downstream partners by 2025-2026. Even though the direct obligation lies within the large entities, here the effect extends to their value chains.

Let's understand it's effect on the value chains with an Example. Okay? So,

In the booming markets of Mumbai, Mr. Rao ran a modest ceramic manufacturing unit and was the primary supplier for a Ceramic Tile Company across India(let's call it CTC).

His days were filled with managing coal-fired kilns, handling diesel generators, monitoring the use of raw materials, keeping track of stock levels and thus ensuring that his clay was just right for the big tile company he supplied.

But one day, Rao received an unexpected email.

The message asked him to provide detailed information about his fuel and electricity use, transportation distance for his materials, and even the packaging methods.

This was to help CTC report their Scope 3 emission as required by the new government rule, which extends to the value chain, which Mr Rao's unit is now a part of.

At first, Rao was overwhelmed. How was he supposed to gather such information? His business had never needed to think about carbon emissions before.

But the stance was clear. CTC explained that without this data, they would have to withdraw, putting their future contracts at risk.

Slowly, with help, Rao began tracking how much coal his kilns used, the electricity from the power grid, how far his clay travelled and his packaging procedures.

It was unfamiliar, but Rao realised this was no longer just a government regulation, it was the future of business.

He then submitted his emissions report through CTC's portal and soon became a part of their Green Vendor Program, offering to help him upgrade his kilns to cleaner technology.

Why did it Matter?

Because Transparency gives trust and Measurement paves way for efficiency. Therefore, suppliers like Rao, are being encouraged to provide data to verify transparency across the entire supply chain.

And with the right support and visibility from higher entities, even a supplier like him could reduce his emissions and fuel costs by using various technologies (Example: Zigzag Technologies).

This approach stresses the importance of every link in the chain, by highlighting that sustainability is a collective responsibility.

Thus, India is showing that climate action can begin with precision and purpose.

NOTE: India submits its 4th Biennial Update Report (BUR-4) to the United Nations Framework Convention on Climate Change (UNFCCC) on 30th December, 2024.

The BUR-4 updates the Third National Communication (TNC) and contains the National Greenhouse Gas (GHG) inventory for the year 2020.

According to the GHG Reports,

India’s GHG emissions decreased by 7.93 per cent in 2020 with respect to 2019.

India's Forest and Tree Cover, along with other land use, integrated for approximately 522 million tonnes of CO2, equivalent to reducing 22% of the country's total carbon dioxide emissions in 2020.

Between 2005 and 2020, India’s Emission Intensity of Gross Domestic Product (GDP) reduced by 36%.

As of October 2024, share of Non-fossil sources in the installed Electricity Generation capacity was 46.52%.

During 2005 to 2021, additional carbon sink of 2.29 billion tonnes of CO2 created through forest and tree cover.

The energy sector contributed the most to overall emissions (75.66 percent), followed by the agriculture (13.72 percent), Industrial Processes and Product Use (8.06 percent), and Waste (2.56 percent).

India’s achievements in respect of the NDC targets:

India has progressively continued decoupling economic growth from GHG emissions.

Between 2005 and 2020, India’s emission intensity of Gross Domestic Product (GDP) reduced by 36%.

By October 2024, the share of non-fossil sources in the installed electricity generation capacity was 46.52%.

Total installed capacity of renewable power, including large hydropower, is 203.22 GW and cumulative renewable power installed capacity (excluding large hydro projects) has increased 4.5 times from 35 GW in March 2014 to 156.25 GW.

India’s forest and tree cover has consistently increased and currently stands at 25.17% of the total geographical area of the country.

During 2005 to 2021, additional carbon sink (anything that absorbs more carbon from the atmosphere than it releases) of 2.29 billion tonnes of CO2 equivalent has been created.

In a post on social media, Union Minister for Environment, Forest and Climate Change, Shri Bhupender Yadav, stated that India is leading by example in sustainable growth. These numbers reflect Prime Minister Shri Narendra Modi’s commitment to aligning economic progress with meaningful climate action, he added.