The global net zero transition is transforming industrial strategy in India. Net zero is no longer a distant sustainability goal; it has become central to competitiveness, resilience and long-term growth. India’s pledge to achieve net zero greenhouse gas emissions by 2070, along with intermediate targets such as expanding renewable energy capacity, enhancing energy efficiency and promoting alternative fuels, creates both regulatory pressure and strategic opportunities for businesses. Companies are adopting comprehensive approaches that combine governance, technology adoption, operational change and innovation to reduce emissions across their entire value chain.
Embedding net zero
For effective decarbonisation, companies must integrate net zero objectives into corporate governance. Boards and senior management play a critical role in setting climate priorities, allocating resources and monitoring progress. Corporates in India are increasingly establishing dedicated sustainability committees and linking executive incentives to climate targets, ensuring accountability for emission reduction. Regulations such as the Business Responsibility and Sustainability Reporting mandate the disclosure of energy usage, greenhouse gas emissions and climate-related risks, pushing firms to institutionalise sustainability at the highest levels. Embedding climate objectives into strategic decision-making ensures that sustainability is not an isolated initiative but a driver of investment, operations and long-term planning.
A credible net zero journey requires clear, measurable and time-bound targets. Corporates are establishing multi-horizon goals, including short-term operational reductions, medium-term efficiency and technology deployment targets, and long-term net-zero commitments. Comprehensive accounting across Scope 1, Scope 2 and Scope 3 emissions helps companies identify high-impact interventions. For many Indian firms, Scope 3 emissions dominate, making supplier engagement, product design and customer behaviour essential. By aligning corporate targets with national priorities such as renewable energy expansion and energy efficiency mandates, companies ensure their strategies are consistent with India’s broader climate framework.
Electrification of operations and mobility
Electrification is emerging as a cornerstone of corporate decarbonisation. By replacing fossil-fuel-based processes with electric alternatives, companies can significantly reduce emissions’ intensity. Industrial heat, manufacturing processes, building systems and transport fleets are all being electrified where feasible. In India, government incentives under the Faster Adoption and Manufacturing of Hybrid & Electric Vehicles (FAME II) scheme are accelerating the deployment of electric vehicles (EVs), particularly in logistics and last-mile delivery. Corporates are integrating EVs into their fleets, installing charging infrastructure and planning for phased adoption of electric solutions across their operations.
Renewable energy integration and energy storage
Transitioning to renewable energy is a key strategy for reducing Scope 2 emissions. Companies are adopting a combination of on-site solar generation, long-term power purchase agreements (PPAs) and market-based instruments such as renewable energy certificates to secure low-carbon electricity. To address the intermittent nature of renewable sources, firms are investing in energy storage solutions, including lithium-ion batteries, hybrid storage systems and thermal storage. Energy storage enables corporates to optimise renewable energy consumption, reduce reliance on fossil-fuel-based grid power and manage peak demand. India’s ambitious renewable energy targets, including 500 GW of non-fossil fuel capacity by 2030, provide both policy support and a growing market for corporate renewables integration.
Green hydrogen for hard-to-abate sectors
For industries where direct electrification is challenging, green hydrogen offers a transformative pathway. Produced by using renewable electricity, green hydrogen can replace fossil fuels in high-temperature industrial processes and serve as a low-carbon feedstock in chemicals, steel and cement production. Indian corporates are piloting green hydrogen projects, entering long-term offtake agreements and collaborating with technology providers to integrate hydrogen into industrial operations. The government’s National Green Hydrogen Mission provides incentives for its production, storage and utilisation, encouraging corporates to invest early and shape emerging supply chains.
Energy efficiency across operations
Energy efficiency remains one of the most immediate and cost-effective tools for decarbonisation. Companies are optimising industrial processes, upgrading equipment and adopting advanced energy management systems to reduce energy consumption. Retrofitting manufacturing plants and installing installing variable speed drives, smart lighting and predictive maintenance systems help cut both emissions and operational costs. National schemes such as Perform, Achieve and Trade and the Energy Conservation Building Code provide regulatory support and incentives, encouraging firms to systematically integrate energy efficiency into operations, while achieving compliance.
Material efficiency and circular economy
Material efficiency and circularity are becoming integral to corporate sustainability strategies. Companies are redesigning products to use fewer raw materials, increase recyclability and substitute low-carbon inputs. Circular economy practices such as remanufacturing, reuse and industrial symbiosis reduce emissions embedded in production and supply chains. Indian corporates are adopting take-back programmes and waste-to-resource initiatives, aligning with national objectives for sustainable manufacturing. By enhancing material efficiency, firms not only reduce emissions but also build resilience against resource price volatility and supply chain disruptions.
Carbon pricing and market mechanisms
Integrating carbon costs into decision-making through internal carbon pricing helps companies prioritise low-carbon investments. Shadow pricing of carbon enables evaluation of alternative technologies, fuels and operational changes based on their climate impact. In India, the Energy Conservation Amendment Act provides a framework for developing a domestic carbon market, enabling the trade of carbon credits and incentivising emissions reductions. Corporates are actively participating in voluntary carbon markets and preparing for compliance-based mechanisms, allowing them to offset residual emissions, while fostering accountability and transparency.
Carbon capture and removal technologies
For emissions that cannot be eliminated through electrification, energy efficiency, or fuel switching, carbon capture and storage provide a complementary solution. Industrial sectors such as cement, steel and chemicals are piloting carbon capture technologies to reduce point-source emissions. In parallel, corporates are exploring nature-based removals such as afforestation, soil carbon sequestration and blue carbon projects to neutralise unavoidable emissions. Strategic deployment of these technologies, coupled with robust measurement and verification protocols, strengthens the credibility of net zero pathways.
Decarbonising supply chains
Supply chains account for a substantial portion of corporate emissions, particularly in India. Companies are engaging suppliers through climate commitments, technical support and collaborative initiatives, aimed at lowering emissions. Low-carbon procurement policies, shared renewable energy projects and capacity-building programmes help align suppliers’ operations with corporate sustainability objectives. Digital tools are increasingly used to monitor emissions, track progress and ensure transparency across complex value chains. Collaborating with suppliers and industry coalitions allows companies to achieve meaningful Scope 3 reductions, while strengthening resilience and efficiency.
Digitalisation and climate analytics
Digital technologies are critical enablers for net zero strategies. Real-time emissions monitoring, energy analytics and AI-based decision-making tools allow corporates to identify inefficiencies, optimise resource use and track progress to reach targets. Scenario modelling and climate risk analytics help organisations assess regulatory, market and physical climate risks, supporting informed investment and operational decisions. Digitally enabled reporting enhances transparency for regulators, investors and other stakeholders, reinforcing trust and accountability.
Initiatives adopted by utilities
Across sectors, Indian corporates are actively operationalising net zero strategies. Many manufacturing and IT companies have signed long-term renewable PPAs or installed solar and wind projects to meet renewable energy obligations. Logistics and delivery firms are electrifying their fleets, deploying charging infrastructure and exploring alternative fuels. Industrial firms such as steel, cement and chemicals are piloting green hydrogen for process heat and fuel switching.
Energy-intensive industries are investing in process optimisation, smart meters and predictive maintenance to enhance energy efficiency. Consumer goods and electronics companies are redesigning products to improve recyclability and implementing circular economy practices. Corporates are also exploring carbon capture pilots, participating in voluntary carbon markets and integrating internal carbon pricing into investment decisions. Collectively, these initiatives demonstrate a proactive, multilever approach to achieving net zero emissions in the Indian context.
Conclusion
Achieving net zero in India requires an integrated approach, which combines electrification, renewable energy, green hydrogen, energy storage, energy and material efficiency, carbon pricing, carbon capture and supply chain decarbonisation. Indian corporates that embed these strategies into governance, investment planning and operational execution are better positioned to reduce emissions, enhance competitiveness and build long-term resilience. Regulatory frameworks such as renewable energy targets, energy efficiency schemes, carbon markets and sustainability reporting requirements provide both guidance and incentive for corporates to operationalise their net zero ambitions. By acting decisively today, Indian businesses can shape a sustainable, low-carbon economy, while maintaining a strategic advantage in a rapidly evolving global marketplace.
