India’s leading 33 companies source only about five percent of their total annual electricity consumption from renewables (solar and wind), according to an analysis by the think tank Climate Risk Horizons.
Climate Risk Horizons (CRH), in its report, scrutinised 33 companies across seven industries, five of which are large energy consumers (Cement, Steel, Aluminium, Textiles, and Fertilisers), the other two being Information Technology and Fast-Moving Consumer Goods.
The CRH report, titled Slow to Switch, said that the top companies of India are dragging their feet when it comes to meeting the country’s ambitious renewable energy and decarbonisation goals.
The report claimed that all but one of the companies analysed (ArcelorMittal/Nippon Steel) have reported their energy consumption from various sources. “Almost none are actually on track to achieve their goals,” the repot claimed.
“For example: – Steel companies such as JSW, Jindal, Tata Steel and ArcelorMittal/Nippon Steel are currently meeting a tiny fraction (less than 0.05% on average) of their energy from renewable sources. – Textile companies such as Trident, Welspun, Arvind and Shahi have set targets in line with the Paris Agreement, but, on average, less than 3% of their energy consumption comes from renewable electricity. – Cement companies including majors such as Ultratech, ACC and Ambuja have all set targets to reduce emissions in line with the Paris Agreement, yet the share of renewable energy in their overall energy consumption was only 2.5%,” the report added.
In the FMCG sector, Godrej, ITC and Britannia stand out for their low RE utilisation, in contrast to Nestle and Hindustan Unilever, which fare the best in terms of translating renewable energy commitments into actions. While the information technology industry emerges as the overall top performer, the fertiliser industry lags behind with the poorest score.
“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 decarbonisation targets,” said Vishnu Teja, lead author of the report.
Commenting on the report, 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 RE and decarbonisation targets will not be met without active support from large corporate players. With green energy open access regulations now in place, companies should be signing Power Purchase Agreements to ensure that 100% of their electricity comes from renewable energy by 2030.”
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