Topics Covered: Conservation and pollution related issues.
Carbon Disclosure Project
What to study?
For Prelims: Key findings and overview.
For Mains: Significance, performance improvements and challenges ahead.
Context: The CDP India annual report has been released by CDP (Carbon Disclosure Project) India.
The report examines carbon reduction activities of companies.
Top 4: United States of America secured the top spot followed by Japan, United Kindom and France.
- The boards of 98% of the firms directly monitor climate change risks with top management integrating these concerns in performance evaluation.
- 2/3rd of the 59 firms that were surveyed use climate analysis tools to formulate their business strategies.
- Improvement in disclosure rate has primarily been driven by investors who are actively pushing companies to reveal climate risks and take steps to reduce their carbon footprint.
- Among the key focus areas of Indian firms is renewable energy. According to the report, 23 companies reported renewable energy targets in 2019, a 44% rise over 2018. Of these, Infosys, Dalmia Cement and Tata Motors have reported 100% RE consumption.
Overall performance of India:
- India is now among the top five countries globally when it comes to adopting science-based target initiatives (SBT) with as many as 38 Indian companies in 2019 committing to going beyond policy requirements to plan urgent climate action, a significant rise from 25 firms in 2018.
- In 2019, up to 57 of the 59 responding companies stated that they have a process for risks assessment; 51 declared that their process of identifying, assessing and managing climate related risks is integrated into the multi-disciplinary, company-wide risk identification, assessment, and management process which is considered a best practice.
- The CDP is a global disclosure system that enables companies, cities, states and regions to measure and manage their environmental impacts.
- It collects and collates self-reported environmental data in the world.
- It is aimed at measuring the carbon reduction activities undertaken by different companies and firms operating in various countries across the globe.
Sources: the Hindu.