India is making significant strides in its pursuit of net zero targets, with the corporate sector playing a major role in driving decarbonisation. The rising demand for sustainable, reliable and cost-effective energy solutions has compelled businesses to embrace innovative strategies and technologies to reduce emissions and improve energy efficiency. At Renewable Watch’s recent conference on “Net Zero Strategies and Green Power Procurement for Corporates”, senior executives from leading organisations shared their perspectives on the strategies being employed to achieve their decarbonisation targets. They also talked about the challenges faced and policy suggestions for addressing them. Edited excerpts…
What are your climate targets? What are the key strategies for achieving net zero goals for corporates?
Deepan Prakash Devadoss
We have a global commitment as we are present in over 60 countries. We focus on sustainable sourcing, particularly for raw materials, which account for 70 per cent of our emissions. Our initiatives include making our supply chain partners transition to clean energy, adopting renewable energy for retail operations, and promoting circular economy practices like rental and buyback programmes. In India, our inter-retail operations, warehouses and offices have been powered by 100 per cent renewable energy since 2019. We currently operate 23 solar-enabled sites, comprising a mix of stores and warehouses. For six to seven of these locations, we source green power directly from discoms through green tariffs, while the remainder utilise energy attribute certificates to ensure renewable energy usage. In our supply chain, over 50 per cent of the energy consumed by our suppliers comes from renewable sources.
Rinika Grover
Our sustainability strategy is aligned with global initiatives such as the European Green Deal, especially in relation to the European Union Emissions Trading System. While we initially set intensity-based emissions targets, we have shifted to absolute emissions reduction goals, focusing on Scopes 1, 2 and 3. By 2025, we will be on track to meet targets that were originally set for 2026. Our efforts are now focused on our 2030 commitments. The tyre life cycle has five stages, with the highest emissions occurring in the use phase. We are actively working on reducing emissions during the manufacturing stage, but the real challenge lies in the emissions released during the use and end-of-life phases. We are focused on extended producer responsibility to address end-of-life tyre disposal, which is a significant challenge globally. Raw material sourcing and tyre production remain manageable, but the use and disposal phases require much more work to reduce environmental impact.
Alok A. Kumar
At Fortis Healthcare, energy per occupied bed decreased by 3.5 per cent last year. We aim to cut Scopes 1 and 2 emissions by 35 per cent by 2035. Our strategy includes systematic steps and a clear glide path for sustained decarbonisation.
Hitesh Lachhwani
As we handle warehousing and transportation, we recognise our impact on emissions. To address this, we have developed a comprehensive sustainability strategy. This decarbonisation plan includes specific targets, such as a 42 per cent reduction in emissions by 2030, with the goal of reaching net zero by 2050. Our approach to decarbonisation is structured around five key initiatives: transitioning to electric equipment, sourcing renewable energy, improving process efficiencies, using carbon-neutral or low-carbon fuels, and implementing carbon compensation for the emissions we cannot eliminate.
Dr Manish Monga
At Leela Palace, we have completed energy mapping and found that 40-50 per cent of our energy is used by heating, ventilation, and air conditioning systems. Despite the challenges of running luxury hotels, we have transitioned to 50 per cent renewable energy and plan to reach 60 per cent next year. We are also ready to invest in solar power installations and are in discussions to enable this transition.
Rachika A. Sahay
Corporates are increasingly becoming serious about decarbonisation. Renewable energy adoption has grown, and many companies are moving towards captive power projects or procuring from third parties. Sourcing renewable energy via exchanges and establishing captive projects allows businesses to significantly reduce carbon footprints and align with long-term sustainability goals.
What challenges do corporates face in achieving their sustainability goals and what are the solutions for those?
Deepan Prakash Devadoss
For Decathlon, sourcing renewables is difficult due to the location of our stores. The energy consumption at our stores, even when they are 1,000-2,000 square metres in size, is quite low. Sourcing such a small quantity of renewable energy across multiple locations and various premises throughout the country is a significant challenge. We are actively exploring solutions for this, while also awaiting validation from external bodies. Another key issue we face is ensuring the reliability of the renewable energy we source. Specifically, we are working on how to effectively bundle renewable energy certificates with our renewable energy purchases. These are some of the ongoing challenges we are addressing.
Rinika Grover
The key challenges include legislation compliance, especially regarding deforestation-free rubber sourcing. Sustainable practices in the tyre life cycle, particularly in the use and end-of-life phases, are difficult to manage.
Alok A. Kumar
The biggest hurdle is working with smaller vendors who lack sustainable procurement policies. Biomedical waste and water management in hospitals are also underrepresented in decarbonisation plans.
Hitesh Lachhwani
We manage everything from port and terminal operations to multimodal logistics, including running private freight trains, contract logistics and business parks. A significant part of this involves reducing energy consumption, especially for equipment such as diesel-powered cranes and material-handling machinery. We are electrifying these assets, including forklifts and reach stackers. However, electrifying large equipment like cranes and forklifts remains technologically challenging. Moreover, policies and infrastructure for renewable adoption are inconsistent across states. As trade enablers, we also aim to shift the industry’s mindset towards decarbonising supply chains. By offering multimodal transportation solutions – such as combining rail and coastal shipping with limited road transport – we have helped clients reduce their carbon emissions by over 50 per cent.
Dr Manish Monga
The lack of clear policies and incentives, especially for renewable installations, is a challenge. It is difficult to balance luxury guest experiences with energy efficiency.
Rachika A. Sahay
One of the significant challenges businesses face is navigating the complexity of regulatory frameworks. Many central regulations are not fully adopted by states, causing delays and challenges for consumers, generators and transmission companies when setting up and operating projects. A key issue lies in transmission infrastructure, which is primarily under state control. To enable seamless power supply across states, it is critical to augment the national grid and establish robust green energy corridors. Each state has different rules for energy sourcing, and businesses often struggle with the cost of complying with varying standards. Additionally, many companies are still learning how to integrate renewable energy into their operations in a way that is both efficient and cost-effective.
How is your organisation engaging with suppliers and vendors for sustainability?
Deepan Prakash Devadoss
We prioritise educating suppliers, particularly those responsible for 90 per cent of emissions, about renewable sourcing and best practices. This includes workshops on biodiversity impact and avoiding double counting of renewable energy credits. For smaller suppliers, we provide consulting services to support their sustainability transitions.
Rinika Grover
Apollo Tyres conducts workshops for marginal farmers to promote sustainable rubber production. Over 80 per cent of our suppliers have signed sustainability policies, and we monitor their compliance through third-party platforms.
Alok A. Kumar
Sensitising smaller vendors through awareness sessions is a key focus. Encouraging vendors to adopt sustainable practices is challenging but essential for our Scope 3 emissions goals.
Hitesh Lachhwani
We provide a carbon emissions calculator for clients to choose low-carbon transport options. Educating industry stakeholders on multimodal solutions helps decarbonise supply chains.
Dr Manish Monga
We are working closely with partners like EY and KPMG to align with Scopes 1, 2 and 3 goals. Collaboration is essential for reducing carbon footprints across our operations.
Rachika A. Sahay
A key focus for companies is to ensure their suppliers understand their role in achieving sustainability goals. Thus, many organisations are now integrating sustainability criteria into their supplier selection process. They are also offering support to suppliers to ensure they transition to greener practices, such as renewable energy sourcing and carbon reduction initiatives.
If you had to identify a key policy recommendation to support the initiatives and goals your organisation aims to implement, what would it be?
Deepan Prakash Devadoss
Uniform open access regulations across states would simplify renewable energy sourcing. National-level traceability for renewable energy, similar to European models, would also help organisations avoid discrepancies and promote accountability.
Rinika Grover
Clear, consistent policies and a national grid enabling seamless renewable power sharing are critical. Globally, only 63 out of 1,500 climate policies reviewed are effective and this needs to change.
Alok A. Kumar
Going forward, policies need to address Scope 3 emissions comprehensively. Standardised metrics for emissions calculation would also improve clarity and consistency.
Hitesh Lachhwani
Concepts like virtual power purchase agreements remain challenging for many to fully grasp or implement effectively. Despite these hurdles, efforts are under way by stakeholders – from regulatory bodies to advocacy groups – to address the enormous task of shaping and managing the energy transition. The problem is vast, and while progress is being made, the journey remains fraught with uncertainty. So, improved transmission infrastructure and consistent renewable policies across states are essential. A national approach to energy regulations would help industries adopt renewables more easily.
Dr Manish Monga
A single-window clearance for renewable installations and clear national regulations for power usage would significantly simplify our efforts.
Rachika A. Sahay
While the intentions behind policies and regulatory interventions are commendable, aiming to drive decarbonisation and support stakeholders, the overlap between central and state jurisdictions often creates confusion. Streamlined policies that are consistent across states would significantly benefit organisations trying to transition to renewable energy. A national-level framework for renewable energy certification and traceability would make it easier for companies to ensure their power sources are truly sustainable. Additionally, incentives for companies investing in clean energy solutions would spur more rapid adoption.
