India can influence how global business responds to climate risk: SBTi

India as the world’s fastest-growing major economy, expanding at 6-7% annually, has the scale and momentum to influence how global business responds to climate risk, top executives of the Science Based Targets initiative (SBTI), the global body that validates corporate emission reduction targets and which is referenced by investors and multinational buyers, said.

They said India now is just not another market, but a strategic priority to meet net zero goals.

Arun Nanda

Ahead of the Global South’s first Mumbai Climate Week, SBTi CEO David Kennedy and Trustee on the Board of SBTi and former President of Mahindra group, Arun Nanda are meeting leaders across major conglomerates, policymakers and influencers to spread across their message that climate action in India must move from aspiration to conviction and from isolated commitments to systemic transformation.

“We claim we are the fourth-largest economy,” said Arun Nanda, Trustee of SBTi in an interview. “But we also have a responsibility. We inherited nature not for ourselves, but as custodians for future generations. A custodian has two duties: can I protect what I received, and can I improve it?,” he said.

Mr. Nanda pointed out that India’s growth story must be aligned with environmental stewardship; not as charity, but as strategic conviction. “This cannot become CSR in the traditional sense. It must be conviction. Leaders must act because it is right and because it strengthens their businesses in the long term,” he emphasised.

SBTi, established in 2015 by the United Nations, CDP, the World Resources Institute, WWF and We Mean Business, provides globally recognised standards that help companies set and validate science-aligned emissions reduction targets.

Globally, more than 10,000 companies now work with SBTi, representing nearly 40 percent of global market capitalisation and about 30 percent of global greenhouse gas emissions.

India, however, has fewer than 500 registered companies, far below its potential.

“Japan, with a smaller population, has around 2,000 companies registered,” Mr Nanda pointed out. “India should not be at 500. Realistically, it should be at 5,000,” he stated.

David Kennedy, CEO at SBTi in the joint interview said, “India is a huge economy and will significantly influence how the world manages climate risk. Growth is essential for India, but it must be green growth. “One that aligns with government policy, with investor expectations and increasingly with export markets, especially in Europe.”

He added that forward-thinking corporates face both risks and opportunities. “Companies that transform over the next five to fifteen years will be more competitive. Those that do not may struggle to keep up,” he said.

According to the climate leaders trade and supply chains are central to this transformation. “For large manufacturers like Tata Motors or Mahindra & Mahindra, 70 percent or more of product value comes from suppliers.

That makes supply chain engagement a powerful lever,” they said.

“Large corporates are multipliers. When they set science-based targets, they activate thousands of suppliers. That is how ambition becomes systemic impact,” Mr Kennedy said.

Echoing the same perspective Mr Nanda said, “If you are the largest tractor manufacturer in the world, your responsibility extends beyond your factory gate. It goes to your suppliers, your farmers, and your entire ecosystem.”

Capital, Mr. Kennedy noted, is not the primary constraint. “India has vibrant capital markets. Renewable energy attracts strong investment. Energy efficiency often pays back within three years. This is not just a cost, it is an opportunity.”

Beyond setting targets, SBTi is increasingly focused on implementation, helping companies translate commitments into measurable emissions reductions.

Mr. Kennedy said his goal over the next 18 months would be to significantly increase the number of Indian companies setting science-based targets and ensure they are actually reducing emissions.

He also emphasised the need to adapt frameworks to local realities. “We want to understand the Indian context deeply, where our frameworks work well and where they may need refinement. Partnership is key,” he said adding “The broader geopolitical backdrop adds urgency.”

With shifting global political positions on climate and slowing growth in parts of Europe, India’s trajectory matters even more, they said.

“There is a global race toward low-carbon competitiveness. China is ahead in many areas. India has tremendous potential. The question is how quickly it can convert that potential into leadership,” Mr Kennedy emphasized.

“This is not about ticking boxes. It is about building resilience, protecting future generations and strengthening India’s position in global trade. Compliance will soon be a business necessity,” Mr Nanda said.

“But beyond compliance, there is an opportunity, to innovate, to compete and to lead,” he added.

If India chooses that path, SBTi believes it will not only secure its own green growth but help shape the global transition itself.

Published – February 11, 2026 08:43 pm IST