Most Indian companies fall short on credible net-zero transition planning

A review of 33 heavy emitters revealed targets lacked funding plans.

Most Indian companies do not have clear plans to manage the shift to a low-carbon economy, despite growing pressure from investors and regulators, according to a new report by the Institute for Energy Economics and Financial Analysis (IEEFA).

IEEFA reviewed climate transition disclosures from 33 companies across six high-emitting sectors: power, cement, oil and gas, steel, commodities, and chemicals.

The report found that most companies set emissions targets but failed to link them to capital spending, business strategy, or financial performance.

Only seven companies clearly connected their targets to quantified transition plans and financial planning.

Just 11 carried out climate scenario analysis, and only three tied executive pay to climate goals.

Disclosure quality differed widely by sector and ownership.

Large private companies generally provided stronger disclosures than public enterprises, creating a two-track transition where investor-focused firms move faster than the rest of the market.

IEEFA warned that weak disclosures could limit access to capital as India seeks more than $10t in investment to meet its decarbonisation targets.

Many transition plans appear only in sustainability or CSR reports, reducing their value for investors and lenders.

The report urged companies to embed transition planning into financial disclosures and called on regulators to set clearer rules to improve consistency and accountability.