New regulations like the EU's Carbon Border Adjustment Mechanism and India's Carbon Credit Trading Scheme are turning ESG reporting into a mandatory requirement. Companies now face significant compliance risks if they lack traceable carbon data systems. Experts note that while sustainability intent is growing, execution is lagging. Many Indian firms struggle with emissions tracking across their supply chains, making data credibility a primary competitive advantage for exporters.
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The shift from voluntary to mandatory is the only way this actually moves. Without a price on carbon or a strict reporting mandate like CBAM, most firms just treat ESG as a marketing exercise. The real test will be how India aligns CCTS with international standards to avoid double counting.
True, but the 72 percent figure for low carbon readiness is the real story here. Most companies have no clue how to track Scope 3 emissions. They can't comply with rules if they can't even measure their vendors.
All this reporting is fine, but it doesn't build the transmission lines needed for the actual decarbonization. I wonder if these compliance costs will eat into the capital meant for actual hardware upgrades or if it just creates a new industry for consultants.
Exactly. Reporting a high carbon footprint is one thing, but paying for a boiler replacement or industrial heat pump is where the money actually goes. Compliance often leads to paperwork before it leads to actual retrofits.
