India, one of the world's fastest-growing economies, faces a significant challenge in managing its carbon footprint. With a diverse industrial base, much like the global scenario, a substantial portion of CO2 emissions - as high as 80% - occurs within supply chains rather than core manufacturing processes. Indian corporations, particularly those with vast supplier networks, must focus on decarbonizing their entire value chain to make a meaningful impact on national and global emissions targets.

 

Current Scenario 

Supply Chain Emissions

• Industrial activities contribute about 35% of total CO2 emissions worldwide. In India, this sector is a major emitter due to the extensive manufacturing and agricultural activities.
• Agriculture Contributing around 17.5% to India's GDP, agriculture is a major source of greenhouse gas emissions.
• Textile Industry accounting for 2% of India's GDP and employing over 45 million people, the textile sector is a significant emitter. 

Scope 3 Emissions

• For many industries, up to 80% of their CO2 emissions are embedded in their supply chains. This includes emissions from base materials, agriculture, and freight transport.

Key Technology

Advanced Data Collection and Analysis

• Digital Tools and IoT: IoT devices and advanced digital tools for real-time monitoring and data collection enhances transparency and accuracy in carbon accounting. Companies like Tata Consultancy Services (TCS) are developing digital solutions for carbon tracking across supply chains.
• Blockchain Technology: Implementing blockchain for secure and transparent carbon accounting can ensure the integrity of data across the supply chain.

Collaborative Platforms

• Supplier Engagement Programs: Developing programs to engage suppliers in carbon reduction efforts fosters collaboration and innovation. For instance, Mahindra Group has initiated supplier engagement programs to improve sustainability practices.
• Industry Consortia: Forming industry consortia to share best practices, resources, and technologies accelerate decarbonization efforts. The Indian Green Building Council (IGBC) promotes such collaboration among construction companies.

Carbon Offsetting and Insetting

• Carbon Offsetting Projects: Investing in carbon offset projects such as reforestation and renewable energy help mitigate emissions that are difficult to eliminate. ITC Limited has invested in large-scale afforestation projects to offset its carbon footprint.
• Carbon Insetting: Implementing carbon insetting within supply chains, such as improving agricultural practices to sequester carbon, directly reduce emissions. Tata Steel has initiated projects to enhance carbon sequestration in its raw material supply chains.

Case Studies

• Tata Consultancy Services (TCS): TCS has developed digital solutions for real-time carbon tracking across supply chains, enhancing transparency and accuracy in carbon accounting. These solutions help clients identify emission hotspots and implement targeted reduction strategies.
• Infosys' Renewable Energy Commitment: Infosys has committed to sourcing 100% renewable energy for its operations and encourages its supply chain partners to adopt renewable energy. This initiative has significantly reduced the company's carbon footprint and promoted sustainability in its supply chain.
• ITC Limited's Afforestation Projects: ITC Limited has invested in large-scale afforestation projects to offset its carbon footprint. These projects not only sequester carbon but also promote biodiversity and sustainable livelihoods for local communities.