Though at an infancy and at slow pace, significant momentum has been building up towards achieving ‘Net Zero’ targets globally. The recently concluded COP28 Summit proved to be the defining moment once again for the global community to collaborate on bold actions that can accelerate progress measured in months, not decades. Amid this heightened Sustainability Agenda, addressing the elephant in the room – the most neglected, the most complex to measure and yet the most crucial segment – Scope 3 emissions – holds the potential to radically transform business models and create real business value. While companies have been taking imperative steps in reducing Scope 1 & 2 emissions, reducing Scope 3 emissions requires organizations to tackle big challenges boldly, through the lens of value creation and with the involvement of the entire organization and every single stakeholder. Getting Scope 3 emissions reporting right can lead to transformative industry innovations and ensure great strides toward net-zero pathways, demonstrates this Cover Story.
This global climate target of 1.5°C is slipping out of reach. It now calls for a 7% annual emissions reduction, more than the climate reduction impact from Covid-19, and against the current trend of a 1.5% annual increase, as highlighted in the joint World Economic Forum and BCG white paper ‘The State of Climate Action’. Now, more than ever, it is time for corporates to step up near-term emission mitigation to tackle the climate action gap, as every fraction of a degree matters. Here are some insights from industry leaders and consultants to offer our readers a nuanced approach to reduce their Scope 3 emissions. Here’s a lowdown or a step-by-step approach to achieve the most crucial ‘Net Zero’ agenda…
Measuring scope 3 emissions is very difficult since most activities happen outside of an organization. What kind of ecosystem or infrastructure does an organization require to accurately manage / control scope 3 emissions?
Prabodha Acharya, Chief Sustainability Officer, JSW Group & Anuna Banerjee, Deputy Manager – Corporate Sustainability, JSW Group: Organizations aiming to accurately manage/control Scope 3 emissions need an integrated ecosystem that includes robust data-sharing platforms, supply chain transparency tools, and collaborative frameworks. Infrastructure should support real-time tracking of external activities, involve suppliers in emission reporting, and utilize technologies like IoT and blockchain for reliable data.
Sanjay Desai, VP / GM, ASIA, Supply Technologies, APAC: Very pertinent question. Please note that the purpose of measuring Scope 3 emissions is to trigger actions and resolutions – not create paperwork or lip service exercise. To get a better handle & control over scope 3 emissions, an organization can resort to execute these top measures. These 5 are NOT the only ones but these are accepted norms by most organizations:
Formalize baseline and targets for scope 3 elements: The first and foremost common practice in carbon accounting is to establish 1) Baseline score, 2) Set scientifically calculated targets (SBTs – or goals) to reduce emissions compared with the baseline data, i.e., let’s say our organization generated 1,000 tons of CO2e in 2023, and of those 50% are Scope 3 emissions. Let us also assume that our leadership has set a goal to reduce our carbon footprint by 50% by the year 2025 using 2023 as the baseline year. Since we know our carbon footprint and emissions in 2023, we now need to reduce our emissions and decarbonize to 500 tons of CO2e in our goal year. Once your organization has set its Scope 3 target, implement the project initiatives, start collecting proper data, review resource investments, and integrate all these into routine work processes for desired outcomes.
Prioritize material sources: Use materiality assessment analysis to identify your organization’s largest exposure for scope 3 categories (Products, Services and Vendors).
Engage your vendors and suppliers: For Scope 3 categories like purchased goods and services and capital goods, use your purchased data. Work directly with your vendors to collect data and integrate the data in your own Carbon accounting toolsets to analyze the exposure and resulting factors. Make use of available technology tools or automated applications to put this analysis together instead of resorting to manual calculations.
Set up scheduled surveys: There are many organizations who develop focused applications (Tech Tool sets). The applications help to conduct targeted surveys with your suppliers, network partners, employees, and agencies to collect pertinent exposures like (commuting habits, sustainable practices, resources consumptions, carbon accounting practices and integrate these data elements into your own analysis and measurements !!
Use weight as a measurement for waste emissions: Emissions from waste generated in operations (recycling, waste-to-energy processing, and anaerobic process) should be calculated using pounds, kilograms, of tons of weight, or a proxy assumption so that the results are in line with common accounting as well as standard global measurement criteria. This will help organizations to benchmark the data and compare on a larger scale.
Make use of technological platforms and smart data integration tools: Today technology and data analysis tools are available in the market at large and these are also becoming cheaper. Select the most relevant tool sets which can support the needs of your organization. Try and expand your scope of finding data sources that can be input into your carbon calculations on a regular basis by leveraging these tools.
Sandeep Chatterjee, Supply Chain and Sustainability Leader, IBM Consulting: Leading organizations are actively collaborating with their partners on ESG. Shared data governance and common definitions let these companies’ source ESG data more successfully from their partners. In addition, as many as 60% of leading organizations (According to IBM Research) have integrated their ESG efforts with their partner ecosystem. To follow in the footsteps of ESG leaders, organizations must stop solely extracting and channelling data for reporting purposes and start viewing ESG data as part of a platform-enabled loop. This circular approach provides the foundation for continued performance improvement and transformation. It makes ESG data and metrics part of the feedback loop that triggers adaptation and guides change. And it facilitates engagement with ecosystem partners on sustainability action.
How important is the role of emerging technologies in positioning organizations to achieve their sustainable goals in the next 2-3 years? Can you elaborate a couple of key technologies that would be facilitating the change?
Prabodha Acharya & Anuna Banerjee: Emerging technologies are pivotal for organizations’ sustainability goals. AI-driven analytics aids in smart decision-making, while IoT enhances supply chain visibility. Circular economy initiatives benefit from blockchain. Clean energy tech and carbon capture contribute to emission reduction. Integration of these technologies is essential for achieving sustainability goals. Technology companies are leveraging their innovation prowess to lead in sustainability. AI, IoT, and data analytics optimize resource use. Renewable energy adoption and circular economy models reduce waste. Smart supply chains, enabled by blockchain, enhance transparency.
Sanjay Desai: Technology has always been in the forefront of developing solutions which are well integrated. Such solutions enable data driven decision-making, by providing high visibility and allowing standard reporting. Similarly, there are technologies that industries can explore to measure, monitor, report, and control scope 3 emissions. The technology landscape is wide, and it is evolving rapidly. It can be overwhelming to many smaller companies who are seeking to choose an appropriate solution. It is imperative to follow a structured process of evaluation & roadmap before they commit to a solution. Let us have a look at few of them which are widely in use today.
Digital twins – It will develop digital representations of the real time supply chain operations, to create and analyze various “what if” scenarios for emission reductions mirroring the current situations. This will allow organizations to make data driven decisions to mitigate risks in their operations.
Blockchain – It will allow an organization to create transparent and traceable supply chain operations across multiple sites. Organizational leadership will be able to verify sustainability scenarios to ensure that the information provided by their network (customers, partners & suppliers) is close to accurate which can be acted upon in a positive manner.
Carbon accounting & Intelligence platforms – There are companies who offer an intelligent platform for Carbon accounting as well as evaluating Carbon projects development which contrite to the quality of carbon offsets. Such platforms enable Organization to monitor scope3 project to mitigate risks stemming from infrastructure, network, materials movement ensuring the committed quality of carbon offsets for organizations.
Automated Emission Tracking – A Dutch company (GIAI) uses AI to simplify and automate GHG emissions reduction for businesses. Their AI application helps to measure GHS emissions by analyzing the data from various input methods (automated or manual). The AI application dice and slide data to extrapolate measurements and approximate any missing data.
Electrification solutions – Leaf Energy, a US company, offers electrification solutions like electric vehicles (EVs) and charging stations. It provides high-speed charging through its proprietary terminal designs that are compatible with existing grid networks. Leaf Energy also provides a platform that enables real-time environmental tracking, which allows businesses to measure progress at every step of the energy transition.
Algae-based Carbon Capture – ALGIECEL, a UK based organization provides modular photo-bioreactors that convert CO2 emissions into microalgae biomass and oxygen. They have a compact mobile microalgae photobioreactors device which fits into any standard shipping container. The device helps to enable the transformation of industrial CO2 emissions into biomass rich in food-grade omega-3, proteins, vitamins, and carotenoids. The carbon capture solution in this way allows industrial plants to reduce their carbon emissions and enable a new revenue stream.
Sandeep Chatterjee: Data is the lifeblood of ESG. It provides visibility into an organization’s operations, letting leaders see where the business is reaching the bar—and where performance has fallen behind. ESG goals for the future lose their significance if they aren’t tied to current performance data. And without the right information, it’s impossible for executives to assess the company’s impact, identify improvement opportunities, or showcase successes.
IBM Research has identified a cohort of organizations with higher maturity in four key areas that enable them to convert ESG to business value…
Data and ecosystems: The sourcing and management of relevant ESG data across the organization and the partner ecosystem
Digital tech: Enterprise architecture for ESG and the availability of ESG data in a clear dashboard
Process and business integration: Embedding ESG metrics across functions
Skills and decision-making: Adoption of new practices and availability of relevant ESG and sustainability skills
Leading organizations are far more likely than others to have made substantial progress in advancing their technology for ESG transparency. They’ve made more significant strides in furthering the overall enterprise architecture and integrating their ESG data into a dashboard—and they’re 54% more likely to have developed a digital strategy that enables their ESG efforts. (According to IBM Research)
Leaders have also embraced the opportunities for scaling, accelerating, and augmenting ESG with exponential digital technologies. For example, leaders are 58% more likely than laggards to have developed the hybrid cloud capabilities for ESG, 33% more likely to have made significant progress with AI for ESG, and more than twice as likely to have progressed significantly with the use of advanced analytics for ESG. They are also 79% more likely to have made progress in the use of automation for ESG. (According to IBM Research)
According to IBM Research, when asked which technologies are most important for ESG, executives highlight the role of advanced analytics in delivering ESG insights, and automation in boosting the efficiency, accuracy, and scaled impact of ESG efforts. For example, automating manual data processes can make it faster and cheaper for companies to achieve transparency. Applying advanced analytics can also pinpoint improvement opportunities and support modelling that informs more sustainable decisions.
These technologies don’t operate in isolation but complement each other in driving improved performance. If executives look through a particular technology lens, rather than focus on how they can create the greatest impact, immense potential is left on the table. Interactions among several technologies—and with other organizational capabilities— enable and drive the improvements needed for moving the needle on ESG and sustainability.
Chandranath Dey, Head – Operations, Business Development, L&I Consulting & PAGI, Logistics & Industrial, JLL, India: Ground break technology, like the use of pre-cast panels, Integrated Building Management system and IoT not only help in reducing cost and time of construction, but also ensure a clean, comfortable, and optimal working environmental with minimal wastage of resources.
The Chief Sustainability Officer (CSO) role is becoming increasingly crucial. To put ESG at the heart of value creation, how does a CSO and other C Suite leaders collaborate? Which are the top 2-3 elements that they must address?
Prabodha Acharya & Anuna Banerjee: CSOs and C-suite leaders collaborate by aligning ESG goals with business strategy. Regular communication, data-driven insights, and cross-functional teams foster integration. They address sustainability in product design, supply chain, and stakeholder engagement. Key elements include cross-departmental KPIs, continuous improvement frameworks, and fostering a sustainability culture.
Sanjay Desai: The role of The Chief Sustainability Officer (CSO) is indeed becoming not just crucial but under huge limelight now more than ever in last 5 years. In fact, many manufacturing businesses must balance their focus from traditional manufacturing mindset to sustainability and ESG mindset. And the CSO has a major role in this change management. Let us look at the key C level relationships that a CSO needs to collaborate with.
Collaborate with the CEO - Work with CEO to gain his/ her support to engrain sustainability goals with overall business strategy. And make sure that these goals are communicated down the line in the entire organization until the last level of the hierarchy.
Partner with the CFO - Develop business case for scope 3 emissions reduction, emphasizing long-term financial benefits. And integrate sustainability metrics (KPI) into financial reporting.
Coordinate with COO - Validate & leverage supply chain / operational processes to achieve Scope 3 goals. Work via COO to inculcate sustainable and ethical sourcing practices across organization. And implement energy-efficient warehousing & logistical operations across organization.
Collaborate with Chief Risk officer - Identify risks associated with scope 3 emissions and build a risk avoidance plan. And build a strawman to Integrate sustainability into risk management.
Engage with Legal and compliance officer - Ensure compliance with relevant environmental & legal requirements. Assess legal risks and financial liabilities associated with scope 3 emissions and build an avoidance plan. And develop and review contracts with suppliers, incorporating sustainability clauses.
Sandeep Chatterjee: To drive real improvement, ESG data and metrics should be embedded into core operations, processes, functions, and workflows. Such integration is key to weaving sustainability into day-to-day tasks and activities. The role of the CSO becomes paramount here in driving this integration. ESG leaders are far more likely to have ESG metrics incorporated into their innovation and digital transformation efforts and integrated into finance functions. The latter echoes recent IBM research highlighting the important role of finance in supporting an organization’s sustainability efforts.
Across all organizations, the integration of ESG metrics into core functions is limited, mostly focused on risk management (44%), brand strategy (40%), and customer service/engagement (39%). Only 20% are integrating ESG metrics into supply chain operations; 26% into procurement and sourcing; and just 11% into real estate and facilities management. This offers a window into huge, missed opportunities. Companies pursuing value-driven sustainability must look for change opportunities that will create a ripple effect. Their view should cut across traditional functional silos and processes—unlocking opportunities for rapid improvement at scale.
How can companies monitor and control that their suppliers deliver on what they sign for?
Prabodha Acharya & Anuna Banerjee: Supplier performance is monitored through audits and key performance indicators (KPIs). Contracts include adherence to our Supplier Code of Conduct, and partnerships emphasize shared values. Collaborative technologies facilitate data exchange, ensuring suppliers adhere to agreed-upon standards and contribute to the overall sustainability goals.
Sandeep Chatterjee: When it comes to data, it is all about trust. A good way is to have a platform-based approach where all data can be monitored on a regular basis. This is where the eco-system view holds paramount. The suppliers should also see some benefit in doing this and hence a risk premium or co-creation of platform are good ways to handle this situation.
Supply chains have a greater role to play in ensuring sustainability in your industry vertical. How are you addressing the same? How do you think the industry players are dealing with it?
Prabodha Acharya & Anuna Banerjee: In our industry, sustainability is addressed by integrating eco-friendly practices, promoting circular economy principles, and collaborating with suppliers committed to reducing environmental impact. Industry players focus on sustainable sourcing, ethical labor practices, and circular supply chain models to align with evolving global sustainability standards.
Sandeep Chatterjee: It is very important to identify the hot spots in supply chain and hence take measures around them. The typical transportation sector is responsible for 14.5% of GHGs and measures like cross-docking, full truckload on all legs, load consolidation, multi-modal mixes are useful ways. EVs are not the answer as there are long-term implications around charging stations and lithium-ion batteries. Initiatives like Green Cement, Green Steel, Circularity in Product Design, Increasing the life span of a product, Reusable packaging are some of the measures which are in vogue.
Chandranath Dey: Supply chain sustainability affects a company’s environmental, social, and governance (ESG) efforts on a fundamental level. The supply chain touches nearly every aspect of ESG: environmental sustainability, which includes recycling, lowering the consumption of fossil fuels, and reducing waste; social progress, which includes closing the gender wage gap, using equitable hiring, which includes complying with regulations covering all these practices.
Procuring raw materials from multiple sources is a strategically wise decision. It is beneficial to source raw materials from locations that are closer to manufacturing locations, to beat rising freight costs and overcome the shortcomings of transportation delays. The activity of maintaining focus on enhancing the efficiency of shipping systems should be of prime importance. Maximizing container usage and tracking shipment will help overcome some typical transportation-related challenges in addition to reducing costs.
In recent joint research by JLL and IndoSpace, with contribution from International Finance Corporation (IFC), we analysed the concept of sustainable warehousing in the Indian context. It explores the economic, environmental, and social benefits of developing and maintaining sustainable warehouses compared to traditional warehouses without sustainable measures. This report aims to highlight how incorporating green measures across the life cycle of the project i.e. in the design, construction, and operations of a warehouse has tangible benefits across the asset’s lifecycle, such as:
40% savings in total energy consumption
30% savings in water consumption
35% reduction in total embodied energy
Three years average payback period for return on investment.
What are the sustainable Supply Chain Initiative taken by your company?
Prabodha Acharya & Anuna Banerjee: We recognise that the success of our business relies on the integral role played by our suppliers and business partners, and firmly believe in establishing mutually beneficial relationships by selecting partners who align with our values, business ethics, and commitment to sustainable practices. Our robust SCoC serves as a guiding framework for our suppliers, ensuring their adherence to our standards at all times. By prioritising compliance management, environmental protection, human rights, labour rights, and business ethics, we strive to create a harmonious and beneficial collaboration.
We have taken proactive steps towards ensuring a sustainable and responsible supply chain through the initiation of a supply chain assessment programme for critical suppliers. Implemented in phases, this program aims to thoroughly evaluate and enhance the sustainability practices of our suppliers and business partners. By conducting systematic assessments, we can identify areas of improvement, promote transparency, and drive positive change within our supply chain. Through this ongoing programme, we are committed to fostering a resilient and socially conscious supply chain that aligns with our values and contributes to a more sustainable future.
In your opinion, is it practical to achieve the importance of ‘Net Zero’ pledge and how critical it will be for the organizations to manage their Scope 3 emissions?
Prabodha Acharya & Anuna Banerjee: Achieving the ‘Net Zero’ pledge is practical and critical for organizations. By managing Scope 3 emissions, investing in renewable energy, and adopting circular practices, companies can align with global climate goals. Collaboration with stakeholders, transparent reporting, and continuous improvement are essential for realizing and sustaining net-zero commitments.
Sanjay Desai: The term “net zero” means, temperature at which global warming will reduce / stabilize. The word ‘net’ is critical because we all know it is not possible to reduce all emissions to zero in our everyday life. Hence all of us need to reduce carbon emission and energy consumption as much as possible in our own way. It is indeed extremely critical not just for organizations but the entire mankind to achieve ‘net zero’ pledge so we can achieve the global average temperature of 1.5 degree Celsius. It is exceedingly difficult so all of us have a role to play to make it possible!!
Also, for net zero to be effective, we need to find consistency in a way that the GHG emissions, do not return into the atmosphere over time via practices like burning of agricultural land or deforestation. We need to replace these practices or stop them completely, else our goal in the year 2050 will be a moving post. The industrial sector has a huge role to play in achieving net zero goal by controlling their Scope 3 emissions. It is high time that these industrial sectors adopt better practices of GHG reduction like, replace fossil-burning power with renewable energy or reducing consumption of emissions-intensive products or inputs, avoiding damage to agricultural land or ecological balance.
Organizations need to monitor their shipments and vehicles in real-time by adopting mobile sensors and tracking devices. Such techniques will allow them to optimize their routes and make better decisions like consolidating their shipments and frequencies. This, in turn, will help reduce the amount of GHG emissions produced by their supply chains. To move towards net-zero energy goals, the 3PL service providers must incorporate low carbon technologies to mitigate and/or remove GHG emissions in their transportation network.
Sandeep Chatterjee: First of all, it varies from industry to industry. Mining, Oil and Gas Sector, Real Estate and Financial Sectors have a significant contribution from Scope 3 emissions. Many companies have declared their targets without doing a proper calculation. And in order to win this, it is a collective effort of everyone in the supply chain. No company or industry alone can do it.
What are the challenges companies are facing towards decarbonization?
Prabodha Acharya & Anuna Banerjee: Decarbonization serves up challenges such as technological limitations, high transition costs, and resistance to change. Balancing environmental impact with operational efficiency is complex. Collaboration with industry partners, technological innovation, and regulatory support are essential for overcoming these challenges.
Sandeep Chatterjee: It is a profitability vs sustainability battle. Historically, sustainable products are expensive and while consumers may say they will buy these products but there is a mismatch between what they say and do. Finally, it comes to economies. Unless the metric of a CEO changes from profitability only to a balance between profitability and sustainability, this is not going to happen.
Chandranath Dey: The challenges of decarbonization for manufacturers are technical, economic, financial, and social. The strategy that results from this must go hand in hand with the company’s development, in addition to its digital transition, and be part of the decarbonized trajectory of its territory. In industry, decarbonation is a necessity for all companies to improve their competitiveness and meet environmental challenges. To meet the targets set, the industry sector must generate 20% energy efficiency gains between 2010 and 2030, per ton produced. Three main levers must be activated simultaneously or progressively to decarbonize the activity:
Energy efficiency: Optimizing energy sources
The energy mix: Integrating renewable and recovered energies
Production efficiency and recycling: Using less materials or more recycled ones.
Seema Mohanty, Global Supplier Manager (Associate General Manager) for Fungicides, Bayer India: Let us keep aside the cost aspect and look at the other potential challenges. Scope 1 and Scope 2 emissions pertain to one’s own operations, so they are comparatively easier to collect data and monitor improvements. However, unless one is following Science-Based emissions and reduction targets, there is no uniform way of measuring and reporting Scope 1 and Scope 2 emissions as well. Real challenge comes when we speak about Scope 3 emissions. This is because there are several tiers of suppliers, perhaps in different countries, and with their respective maturity levels in their own sustainability journey.
Oftentimes it is important to work together with some of the key Scope 3 suppliers to bring them up to speed in their target setting and in taking actions. Collaboration, knowledge sharing and learning from one another is the key. Another important challenge is about Intellectual Property (IP) protection. It is important to find out ways to ensure IP protection, while we, at the same time, encourage suppliers to be transparent and share data.
We must remember that Environmental, Social and Governance (ESG) reporting is a pretty new phenomenon and is still evolving. So, there is no one way of reporting and consolidation of data yet. This is a challenge especially when one works across data of several suppliers. It is a journey we all are taking. There is no playbook to guide us yet. But we will all learn along the way!
How do you foresee the scope & expanse of ethical sourcing growing from here, with companies waking up to the cause and taking pertinent measures?
Prabodha Acharya & Anuna Banerjee: Ethical sourcing is poised to expand as companies prioritize social and environmental responsibility. Increased awareness and consumer demand drive companies to adopt transparent supply chains. Measures include supplier codes of conduct, third-party audits, and collaboration with NGOs. Ethical sourcing is becoming a cornerstone of corporate social responsibility.
Sanjay Desai: Let us first understand what is “ethical sourcing”? Ethical sourcing means, when an organization purchases products from suppliers, they consider the impacts those products have on the people and communities who build or create these products. These suppliers do not resort to any non-ethical practices i.e., Child labour, unhygienic infrastructure, or any inhuman practices.
An essential element to note is, the deeper you go down into the verticals of your supply chains, the less visibility you have over ethical risks. Hence, it is extremely important to have complete visibility and responsibility for each phase of your supply chains. Easy to say but exceedingly difficult to achieve and sustain over wider geographical scope. Ethical sourcing is a particularly valuable tool to ensure that your organization only works with suppliers who do not indulge in any unethical practices. This also helps to evaluate your suppliers based on social and environmental factors as well and not just on financial or relationship factors.
In the last 5 to 6 years or so, there has been a huge mind set change related to sustainability standards and ethical sourcing strategies. There is a clear sign that top class organizations are moving the needle in the right direction insisting on sustainable and ethical sourcing practices with their major vendors and their tier-I and tier-II suppliers as well. The younger cohort (Gen X and Gen Y) make decisions that support environmental and sustainable enterprise in a serious manner.
Critical guiding principles of ethical sourcing include: Enforce a zero-tolerance policy for child or forced labour; promote transparent and fair financial / payment system., ensure safe and fair working conditions for all workers.; and comply with employee protection laws and regulations that promote ethical labour.
Sandeep Chatterjee: While this definitely enhances the brand image of the company, there are cost implications which does not give a company any incentive to do this. Unless there are regulatory measures and other tangible benefits, it looks good on paper only.
Saurabh Palsania, Joint President – Strategic Sourcing, Shree Cement: There is a big shift now, which can be foreseen from traditional sourcing to ethical sourcing. This is possible because of the high availability of services providers and requirement of exchange of information to all stakeholders. Frequent requirement of audit trails of transaction, consistent uncertainty in the market also influenced by geopolitical matter, high competition within and across sector, continuous requirement of innovation for cost control, all the above is pushing for quick shift to ethical sourcing.
Nikhil Puri, Vice President – Sourcing & Planning, Yokohama Off-Highway Tires: Scope is immense of ethical sourcing. The important thing is to create awareness. Also there are no clear guidelines that are there on this topic. Every company proclaims and aspires to be an ethical company. Industries should come together and formulate the guidelines around this topic. It is not that companies do not want to do it. It is just that the rules of ethical sourcing are not defined properly. I foresee, that with so much globalization, companies will make it an important priority that is being discussed openly and widely so that it can be implemented.
How is India gearing up to play a leading role in empowering sustainable supply chains?
Prabodha Acharya & Anuna Banerjee: India is playing a leading role in empowering sustainable supply chains through policy support, technological adoption, and industry collaboration. Emphasis on renewable energy, circular economy practices, and ethical sourcing align with global sustainability goals. Investments in sustainable infrastructure and cross-sector partnerships contribute to India’s pivotal role.
Sandeep Chatterjee: India has been slow in adapting this. Currently, top 1,000 listed companies in India are required to furnish a Business Responsibility Report (BRSR) to the stock exchanges as a part of their annual reports. While some of the MNCs have adopted it and the recent tax on all imports into Europe is having implications on small and medium enterprises which do not have the financial muscle to invest in these practices. But as regulations come in, this is going to be an opportunity as historically India has been the pioneers of frugal innovation or ‘Jugaad’.
Chandranath Dey: Over the last decade, the world’s perception of India and its capabilities has shifted. For the rest of the world, our nation is becoming an example of a thriving economy. On a world scale, India is regarded as an important factor in the global supply chain, portraying itself as an attractive destination for global corporations. The entire world is waiting for India’s steadfast and consistent efforts to convert the nation into a worldwide leader through its many initiatives.
Because of its quick turnaround time, India became the favoured business location during and after the Covid-19 pandemic. By creating a parallel environment for industrial success and becoming a member of global supply chains, India may benefit from a better legal structure for SEZs (Special Economic Zones) featuring duty-free imports. Expressway access to the National Highway network, harbours, and airlines will boost the SEZs’ desirability as an investment location. India may present itself as an appealing investment location for investors worldwide, thanks to its strong macroeconomic fundamentals, positive demographic dividend, improved Ease of Doing Business (EoDB), and access to resources for expanding manufacturing facilities.
How do you foresee the landscape of Scope 3 emissions reporting as we progress?
Prabodha Acharya & Anuna Banerjee: As we progress, the landscape of Scope 3 emissions reporting is evolving towards standardization, increased transparency, and technology-driven solutions. Integrated platforms, global frameworks, and collaboration among stakeholders will shape the reporting landscape. Continuous improvement in data accuracy and real-time tracking will enhance the reliability of Scope 3 emissions reporting.
Sandeep Chatterjee: Unless all the stakeholders come together and have an incentive to do so, it is likely to be an uncertain situation. Because at the end of day, it is all about the trust factor. If industry sees a value in this platform based eco system approach, this will automatically follow.