Frameworks like the EU’s carbon tax and the proposed Carbon Credit Trading Scheme by India are rapidly transforming environmental, social and governance (ESG) practices from a voluntary disclosure exercise into a key business and compliance priority for industries, say experts.
Without credible carbon data systems and traceable reporting mechanisms, companies could face increasing compliance risks and competitive disadvantages in global markets, they said.
“The next phase of ESG will be driven by implementation readiness and data credibility,” World of Circular Economy (WOCE) Founder and Director Anup Garg said.
He said frameworks like the European Union's Carbon Border Adjustment Mechanism (CBAM), India's Business Responsibility and Sustainability Reporting (BRSR) norms and the evolving Carbon Credit Trading Scheme (CCTS) are rapidly shifting ESG from a voluntary disclosure exercise to a business and compliance priority.
While sustainability intent is clearly rising, execution remains uneven, many organisations continue to struggle with structured emissions tracking, especially across supply chains and vendor ecosystems, he added.
Citing an anlysis, he said 72 per cent of Indian companies remain at an early stage of carbon readiness despite increasing climate regulations and ESG compliance requirements. WOCE is a Delhi-based sustainability and climate solutions platform, operating globally, offering services across ESG advisory, carbon accounting, emissions management and circular economy strategies.
Nidhi Mehra, Co-Founder, MyPlan8, said that for the next two-three years, carbon measurement, multi-framework reporting and supply chain transparency need to be prioritised by organisations, integrated into the core of the business and along the value chain. “The early movers in sustainability will benefit from greater access to green finance and a sustainable competitive advantage in exporting,” she said.
Also read: 208 industries brought under carbon emission targets
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