A new report has revealed that only 5 per cent of the annual electricity consumption of top 33 Indian companies is sourced from renewable energy.
The report by think tank Climate Risk Horizons (CRH) titled “Slow to Switch,” assessed companies across seven industries, including heavy energy consumers such as cement, steel, aluminium, textiles, and fertilisers, as well as information technology and fast-moving consumer goods. The analysis has indicated a significant gap between the renewable energy commitments made companies vs their actual progress.
Low Renewable Energy Consumption by Companies
Notably, steel companies including JSW, Jindal, Tata Steel, and ArcelorMittal/Nippon Steel fulfil less than 0.05 per cent of their energy requirements from renewable sources. Similarly, textile firms such as Trident, Welspun, Arvind, and Shahi report less than 3 per cent of their energy consumption from renewables despite setting targets aligned with the Paris Agreement.
In the cement sector, companies including Ultratech, ACC, and Ambuja have committed to emission reductions, yet their renewable energy constitutes only 2.5% of their total energy usage.
In the FMCG sector, companies like Godrej, ITC, and Britannia have lower renewable energy utilisation, with Nestle and Hindustan Unilever being notable exceptions.
The information technology sector leads in renewable energy adoption, while the fertiliser industry records the lowest scores.
Urgency Required in Energy Transition
“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.
The report has emphasised the significant potential of the industrial sector to advance India’s decarbonisation goals, highlighting that the companies analysed consume over 169 billion units of electricity annually. This figure surpasses the total electricity consumption of states like Andhra Pradesh or West Bengal. However, the contribution of renewable sources remains minimal.
“India Inc needs to step up and start investing for an energy-secure future. The country’s renewable energy 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,” said Ashish Fernandes, CEO of Climate Risk Horizons and co-author of the report.
