E-Paper
India’s corporate climate moment
This article is authored by Arun Nanda, trustee, Board of the Science Based Targets initiative (SBTi).
Corporate India is entering a period where environmental disruption is no longer a distant scenario but a factor shaping day-to-day business decisions. Across sectors and geographies, extreme weather and pollution are affecting how companies operate. Unusually high temperatures are reducing labour productivity and affecting public health systems. Sudden flooding and unpredictable rainfall are interrupting transport networks, damaging infrastructure and unsettling supply chains. Meanwhile, poor air quality continues to impose measurable costs on urban economies. In this environment, climate-related challenges have shifted from being abstract concerns to immediate commercial pressures. At the same time, they are opening up a strategic window for companies willing to adapt quickly.
Indian firms today are operating on a vast scale and are more deeply embedded in global markets than ever before. They are connected to international investors, export markets and cross-border supply chains, even as the domestic economy continues to expand at a rapid pace. This intersection of growth, scale and global exposure means that responding to climate pressures is no longer just about corporate responsibility. It is closely tied to competitiveness, efficiency and resilience in a fast-changing economic landscape.
Until recently, conversations about environmental responsibility in many boardrooms were framed largely in ethical terms. While that framing still matters, the context has changed. Business leaders are now being compelled to evaluate climate-related decisions through the lens of performance and advantage. The key question is no longer simply whether sustainability is desirable, but whether taking decisive action today can deliver tangible gains in the near term. Increasingly, the evidence suggests that it can.
Companies that move early to improve energy efficiency, shift towards cleaner energy sources or redesign processes to reduce emissions often find that these steps lower costs and enhance operational stability. They also strengthen relationships with investors and customers who are paying closer attention to environmental performance. As regulatory standards evolve and new technologies emerge, firms that have already begun adapting will be better positioned to respond. For exporters and companies integrated into international supply chains, environmental credentials are rapidly becoming a requirement for market access and financing.
By contrast, postponing change carries its own set of risks. Businesses that delay may encounter stricter trade conditions, rising compliance expenses and the possibility that existing assets lose value as standards tighten. They may also find it harder to secure global capital. On a broader level, if corporate adaptation across sectors remains slow, India’s appeal as a destination for sustainable investment could be affected, and opportunities for industrial modernisation might be missed. Several energy-intensive industries—such as steel, cement, power, chemicals, textiles and consumer goods—are already subject to domestic efficiency and emissions frameworks, including emerging carbon market mechanisms. These developments underline that performance improvements are not a distant requirement but an immediate one. The next few years, therefore, are likely to be decisive.
The country has set out long-term climate and development goals that outline a clear direction of travel. Achieving them will require coordination between public policy, finance, technological innovation and corporate execution. Governments can help accelerate progress by expanding renewable energy infrastructure, enabling access to green financing and providing supportive regulatory conditions. Companies, in turn, can translate ambition into measurable steps, share learning across industries and stimulate demand for low-carbon solutions.
When policy support and corporate action reinforce one another, the effects extend beyond emissions reduction. Investment flows can increase, innovation can accelerate and productivity can improve. Over time, this can help shape an economy that is both more resilient and more competitive. For many organisations, the primary obstacle is not a lack of awareness but the complexity of implementation. Different sectors face different constraints and opportunities: what is feasible for a digital services firm will differ from the pathways available to heavy industry or infrastructure developers. Approaches grounded in credible data and adaptable frameworks can help businesses act now while adjusting to sector-specific realities.
Such frameworks allow companies to convert broad commitments into measurable progress. They also help prioritise investments, guide decision-making and build trust with stakeholders across value chains. In an environment where expectations are shifting quickly, clarity and direction can themselves become strategic advantages. India has a chance to demonstrate that economic expansion and climate-conscious development can move forward together rather than in opposition. Businesses that recognise this alignment and act with urgency will play a role not only in shaping a more sustainable future but also in defining the country’s next phase of economic leadership.
Organisations working to advance science-aligned climate targets remain ready to support Indian companies in this transition. Tools, partnerships and pathways are increasingly available. The pressing question for corporate leaders is whether they will step forward now to shape the landscape—or find themselves adjusting later to changes driven by others.
This article is authored by Arun Nanda, trustee, Board of the Science Based Targets initiative (SBTi).
