According to a report by CDP, top Indian companies believe that the industry is going to bear an economic impact to the tune of Rs 7.14 lakh crore over the next five years due to the risks posed by the climate crisis. Carbon Disclosure Project is an organization that works on a global disclosure system for investors, companies, cities, states and regions.
The report, titled “Building Back Greener”, said the numbers were based on responses by 42 of 220 Indian companies that responded to investor requests and disclosed climate data.
Of the 220 companies that were covered by CDP, 60 are among BSE’s top 200. The report also highlighted that growing disclosure requirements were prompting more Indian businesses to wake up to the threat of the climate crisis, and commit to reducing their carbon footprints.
Around 88% of 67 large companies covered by CDP reported incentivizing top management for climate-related actions; 99% of the responding sample have board-level oversight of climate-related issues, the report said. Out of the 220 companies covered by CDP’s disclosure project 67 are large businesses and the rest are micro, small and medium enterprises, according to a report by Hindustan Times.
The number of companies that identified the financial or strategic impact of climate-related risks rose from 88% in 2019 to 94% this year, as compared to the previous report released last year. Among the principal areas of concern were direct operations (the most severely affected and the exposed most to physical risks), followed by emerging regulations, and market risks.
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