India has committed to a historic climate pivot—net-zero emissions by 2070, a transformation that will reshape factories, fuel choices and financing decisions for decades. The price tag is staggering: nearly $10 trillion (₹883 lakh crore) in investments.
Yet, as global capital hunts for credible green pathways, a new study suggests that much of corporate India is still unprepared to absorb the money needed to decarbonise.
An assessment of 33 major companies across six high-emitting sectors—power, steel, cement, oil and gas, chemicals and commodities— finds that while net-zero announcements have multiplied, robust transition plans remain the exception, not the norm.
The report by the Institute for Energy Economics and Financial Analysis (IEEFA) shows that only seven companies clearly mapped their climate targets to time-bound transition strategies, and just 11 firms conducted any form of climate scenario analysis, a key tool investors use to evaluate long-term risks and returns.
Ambition vs Bankability
“With India needing around $10 trillion to reach net zero, transition planning is the bridge between ambition and bankability—and that bridge is still weak,” said Shantanu Srivastava, research lead for sustainable finance and climate risk at IEEFA South Asia.
A critical gap highlighted is the disconnect between climate commitments and capital allocation. Less than one-third of the companies analysed linked emissions targets to capex plans, financing strategies or balance-sheet implications, limiting their ability to attract low-cost green capital.
The governance picture is equally uneven. While many firms cite board-level ESG oversight, only 10 companies had dedicated senior sustainability leadership, and a mere nine tied executive pay to climate or ESG performance.
“Without accountability and incentives, transition plans risk remaining PowerPoint promises,” said Tanya Rana, energy analyst at IEEFA.
The report also flags a growing public-private divide. Large, globally exposed private firms showed relatively stronger disclosures, while public sector enterprises and domestically focused companies lagged, reflecting weaker regulatory push and capacity constraints.
Scope 3 emissions—often the largest source of carbon output—remain a blind spot. Fewer than half the companies disclosed Scope 3 emissions, and even fewer laid out credible pathways to reduce them, particularly in oil and gas, steel and cement, sectors central to India’s growth story.
Beyond emissions, the social side of the transition remains thinly addressed. Issues such as workforce reskilling, regional job impacts and community transition risks were largely treated as peripheral CSR concerns rather than embedded in core business strategy.
Strengthening Regulatory Frameworks
IEEFA argues that India does not need new rules but stronger enforcement and sharper design of existing ones. Enhancing the Business Responsibility and Sustainability Reporting (BRSR) framework with mandatory transition planning elements could unlock capital flows at scale.
Aligning corporate disclosures with the Reserve Bank of India’s climate risk guidelines, sectoral decarbonisation roadmaps and India’s upcoming carbon credit trading scheme would further boost investor confidence, the report said.
“India has the ambition, the market size and the investor interest,” Srivastava said. “What’s missing is a credible, finance-linked corporate transition narrative.”
As India positions itself as a global climate and growth leader, the message from investors is increasingly clear: net-zero promises must now come with balance-sheet proof.