The number of Indian companies setting climate commitments is rising but their progress is uneven and often lacking in depth. A report by IiAS Sustainability Solutions Ltd (IiAS Sustain), a subsidiary of proxy advisory firm Institutional Investor Advisory Services India, highlights that while target-setting is increasing, many companies fall short on execution, timelines and credibility. Mint explains why India Inc. lags in achieving meaningful green goals.
How many companies have set climate targets?
Of the top 500 listed companies in FY25, only 213 – about 43% – have disclosed net zero emission or carbon neutrality targets, according to IiAS Sustain's review. The majority still lacks formal climate goals.
Among Nifty 50 companies, 70% now have climate targets, up from 62% a year earlier. This reflects both companies added to the index and some existing ones strengthening or updating their commitments. One example is State Bank of India, which shifted from a carbon neutrality goal to a full net zero target.
However, the broader market lags significantly, indicating that sustainability commitments are concentrated among larger companies. Whether these numbers will improve in FY26 will be known when companies disclose their annual reports starting June.
Are companies setting ambitious targets or just ticking boxes?
The presence of a climate target no longer guarantees meaningful action. IiAS Sustain says many companies lack credible pathways to achieve their long-term goals.
“Setting and disclosing climate targets is no longer enough; the focus is shifting toward execution. Investors are demanding specific roadmaps – from switching to renewables and upgrading emission technology to measuring supplier emissions. These plans must align with capital spending and be transparently detailed in annual reports,” said Amit Tandon, founder and managing director of IiAS Sustain.
For credibility, companies must move beyond ambitious promises and provide clear, practical evidence of how they will deliver on their goals, Tandon said.
Why have some companies set 2030 as a realistic target?
Many companies have anchored their commitments to 2030, making it an emerging focal point for corporate climate timelines. They include ABB India, Dr. Reddy’s Laboratories, Glenmark Pharmaceuticals, GMR Airports Infrastructure, Voltamp Transformers, Happiest Minds Technologies, IRCTC, IRFC, KPIT Technologies, L&T Technology Services, and Mankind Pharma, as per the IiAS Sustain report.
The clustering around 2030 sits within realistic business planning – close enough to require actionable strategies, yet distant enough to accommodate transition constraints. In this sense, 2030 marks a boundary between commitments that require near-term execution and those that risk being deferred, IiAS Sustain said.
Why are most climate targets pushed far into the future?
Indian companies tend to set distant timelines for their climate commitments. As per IiAS Sustain, the median net zero target year is 2050. While this reflects long-term ambition, it also reduces urgency for immediate action.
At the other end, several companies, especially in capital-intensive sectors where cutting emissions is harder, have set their targets in line with India’s net zero goal of 2070. These include Adani Enterprises, NTPC, Kotak Mahindra Bank, Shriram Finance, Steel Authority of India, and Power Finance Corporation. While this shows intent, IiAS Sustain says it raises questions about the credibility of these targets.
Many companies have not explained how they plan to get there, with little detail on interim steps or investments needed. Their long-term goals offer limited clarity on what action will be taken now, making them appear more like distant ambitions than concrete plans.
Do all sectors perform equally on climate goals?
Climate performance varies widely across sectors, driven by differences in emission intensity and transition feasibility. Information technology and FMCG companies lead in adoption due to lower direct emissions and easier access to renewable energy solutions.
In contrast, the metals, mining and cement sectors rely heavily on fossil fuels and require emerging technologies such as green hydrogen or carbon capture to significantly cut emissions. Their timelines tend to be longer, even when they adopt more ambitious net zero goals.
Financial services and consumer durables show mixed progress. In financial services, HDFC Bank and Bajaj Finserv have set near-term carbon neutrality targets, while State Bank of India has moved to a broader net zero goal. However, it is difficult to measure emissions linked to loans and investments. In consumer durables, companies are improving operations but not supply chains entirely.