Institutions and Businesses

Businesses are crucial stakeholders in the fight against climate change. Over a quarter of India’s emissions are directly caused by the business operations of the commercial and industrial sectors. As per India’s Second Biennial Update Report, Energy and Industrial Processes and Product Use (IPPU) sectors in India accounted for 8% of GHG emissions while 18.4% of the emissions from the energy sector can be attributed to manufacturing industries and the construction sector. Commercial & Industrial customers also consume more than 50% of electricity in India. India’s national emissions can fall by as much as 1.5% merely through the voluntary emission mitigation measures taken by 50 Indian businesses.

Businesses are also extremely vulnerable to the impact of climate related disasters, from the physical risks posed by extreme weather and shifting climate patterns to the transition risks resulting from public support for the transition to a low carbon economy. Thus, it is critical for businesses to adopt practices that are geared towards the mitigation of climate change impacts. Lowering the carbon footprint of the value chain and improving industrial processes towards more sustainable models can help the country meet its climate targets and help businesses become more climate resilient. Demonstrating awareness of this impending risk, Indian corporates are increasingly aligning themselves with internationally recognised reporting and disclosure frameworks such as the Global Reporting Initiative (GRI), Science Based Targets Initiative (SBTi), and recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

Innovative new financial institutions and business models can encourage both demand generation and supply versatility of clean energy finance. In addition, facilities which endorse the viability of early stage businesses and business models can catalyze increased finance for the clean energy landscape. Shakti Sustainable Energy Foundation seeks to facilitate the development of business models and avenues that can drive the clean energy sector as well accelerate the transition to a low-carbon economy.