Recently, a report was released by Climate Risk Horizons titled “Slow to Switch” about India’s top 33 leading companies. According to the report, only 5 % of their electricity is sourced from renewable energy. All the industries including heavy energy consumers such as steel, aluminium, cement, textiles, fertilizer, and even information technology are estimated in the report.
Analysis enclosed a significant imbalance between the company’s renewable energy commitments and their implementation in all industries. Data of steel companies which includes JSW, Jindal, Tata steel, and ArcelorMittal/Nippon Steel has generated less than 0.05% of the energy from renewable sources. Textile companies like Trident, Welspun, Arvind, and Shahi have achieved less than 3% of energy consumption from renewables.
In cement industries, companies like Ultratech, ACC, and Ambuja had committed to reduce carbon emissions yet used only 2.5% of renewable energy. Further, FMCG sectors had a minimal consumption of renewable sources similarly the fertilizers industry lagged in this area. Whereas, information technology has scored maximum in utilizing renewable sources.
Lead author of the report, Vishnu Teja said “Shifting to renewable energy is essential for energy security at the company level and for the Indian economy as a whole. While a few large companies have started to take steps in this direction, a lot more needs to be done, and a lot quicker, if India is to meet its decarbonization targets,”.
The report highlights the potential of India’s industrial sector to develop the decarbonization target of the country. Companies utilize more than 169 billion units of electricity annually, which is almost more than the total consumption of electricity by states like Andhra Pradesh and West Bengal. Therefore, these companies use very little renewable energy.
Ashish Fernandes, CEO of Climate Risk Horizons and co-author of the report said, “India Inc. needs to step up and start investing for an energy-secure future. The country’s renewable energy and decarbonization targets will not be met without active support from large corporate players. With green energy open access regulations now in place, companies should sign Power Purchase Agreements to ensure that 100% of their electricity comes from renewable energy by 2030,”.
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