The Hindu Business Line : Gaps in India Inc preparedness on climate change: KPMG

Mumbai, July 26 A KPMG report, looking to assess India Inc’s preparedness on climate change, says only 21 per cent of businesses measured their carbon dioxide emissions.

KPMG is the global network of professional services firms of KPMG International. KPMG member-firms provide audit, tax and advisory services.

Over 70 business leaders at the CEO level were interviewed for this study. The survey found glaring gaps between good intentions and appropriate actions relating to environment.

The report said that while 83 per cent of the respondents claimed to have a fair understanding of climate change issues, only under half said they had a clear strategy in place to tackle them.

Under pressure

Mr Arvind Mahajan, National Industry Director (Energy, Infrastructure and Government) of KPMG said, “Developing countries like India and China are under increasing international pressure to undertake measures to limit their aggregate emission levels. While the government on its part has recently announced the National Action Plan on Climate Change, the onus is now on private businesses to do their bit.”

Good intentions with regard to environment awareness are not enough, what is needed is a structured and measurable plan. The first step to the process is measuring the current carbon footprint. Second, companies should seek to benefit from opportunities brought by climate change. For instance, the global market for low carbon energy efficient technologies is estimated at $3 trillion by 2050, the study said.

Most companies in the developed world have measured and announced their baseline carbon footprint, and also their reduction targets over five to 10-year periods. The case with Indian businesses is rather dismal. Only 41 per cent of respondents indicated having at least some quantified goals for carbon reduction to be achieved by 2010, while 38 per cent have no goals whatsoever.

Tools used

The report also brings to light the lack of appreciation of the tools and capabilities required to contain climate change. The most widespread measure that businesses engage in, or plan to engage in, to tackle climate change is the use of energy-efficient appliances (94 per cent), followed by educating and training employees on environment-friendly practices (77 per cent).

A lot fewer businesses are engaged in other primary drivers of emission reductions.

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Gaps in India Inc preparedness on climate change: KPMG

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