IEEFA Report Flags Gaps in India’s Corporate Climate Transition Planning Ahead of Net-Zero 2070

With India requiring cumulative investments of USD 10 trillion (INR 883 lakh crore) to achieve net-zero emissions by 2070, credible corporate climate transition planning is emerging as a critical factor for mobilizing capital. However, a new report by the Institute for Energy Economics and Financial Analysis (IEEFA) finds that transition planning across India’s corporate sector remains fragmented and largely compliance-driven.

The report highlights that the absence of dedicated transition plan disclosures within the Business Responsibility and Sustainability Reporting (BRSR) framework, coupled with limited guidance on financial materiality and forward-looking metrics, has resulted in disclosures that are difficult to compare, verify, or use effectively for investment and lending decisions.

IEEFA conducted a detailed assessment of 33 companies across six high-emitting sectors — power, steel, cement, chemicals, commodities, and oil & gas — to examine current transition planning practices. The analysis identified three key weaknesses:

1. Limited integration of ambition into actionable plans: Transition targets are rarely quantified, time-bound, or linked to capital expenditure, revenue assumptions, and risk management.
2. Weak governance structures: While governance mechanisms exist on paper, accountability, operational embedding, and incentive alignment remain limited.
3. Fragmented and backward-looking disclosures: Most companies provide high-level ambition statements but lack detailed, forward-looking metrics useful for capital providers.

“Only a limited number of companies link their goals to capital expenditure, revenue assumptions, or business strategy, making it difficult for investors and lenders to assess the feasibility of transition pathways,” said Shantanu Srivastava, Research Lead, Sustainable Finance and Climate Risk, South Asia.

Financial disclosures were also found lacking. Companies rarely quantify the financial impact of climate-related risks and opportunities. Scenario analyses, where provided, are mostly qualitative and opaque regarding assumptions, time horizons, and financial implications.

Governance disclosures further weaken transition planning effectiveness. Tanya Rana, Energy Analyst at IEEFA and report co-author, said, “While most companies report board- or management-level oversight, few provide evidence of clear accountability, decision-making authority, or incentives linked to transition outcomes.”

The report shows wide variation across sectors, with globally exposed or large listed companies demonstrating relatively advanced practices, while the majority remain in early stages of planning. Overall, disclosures are strongest on ambition statements but weakest on lever-level quantification, financial integration, and Scope 3 emissions coverage. Workforce and community transition considerations are often framed as Corporate Social Responsibility rather than Just Transition.

To address these gaps, IEEFA recommends that companies develop transition plans linking emission targets to capital expenditure, operational changes, financing needs, and risk management processes. Companies should also strengthen scenario analysis, internal data systems, and embed transition planning within core business strategies.

For regulators, the report advises that SEBI integrate transition planning expectations within the BRSR framework, including guidance on forward-looking metrics, financial materiality, and alignment between climate targets and business strategy. Coordinated action between regulators and corporates, alignment with the RBI’s proposed climate risk disclosure framework, sectoral decarbonization roadmaps, and the Bureau of Energy Efficiency’s Carbon Credit Trading Scheme will be essential to create a unified ecosystem for India’s low-carbon transition.