New Delhi: Indian companies are increasingly committing to net-zero and emissions reduction targets, but most disclosures do not explain how those ambitions will be delivered, according to a new report by the Institute for Energy Economics and Financial Analysis (IEEFA). The report notes that while climate targets are being disclosed, “many companies simply state their net-zero target and do not disclose targets related to transition levers,” leaving the depth of disclosure “largely at the discretion of the entity.”
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IEEFA’s analysis finds that India’s Business Responsibility and Sustainability Reporting (BRSR) framework does not require companies to clearly link greenhouse gas targets with concrete transition actions, investments or timelines.
“BRSR omits several key elements of credible transition planning,” the report says, including “clear linkages between greenhouse gas targets and transition levers, mandatory scenario analysis, granular governance disclosures … and a funding strategy for transition plans.”
As a result, disclosures often signal intent without enabling investors or regulators to judge whether transition plans are realistic or achievable.
The report highlights that BRSR does not require companies to conduct or disclose climate-related scenario analysis, a key tool for assessing resilience to transition and physical climate risks. While the International Sustainability Standards Board’s climate standard requires disclosures on assumptions, time horizons and resilience, the report cautions that “neither framework alone gives investors a complete picture of corporate climate transition readiness.”
IEEFA also flags the absence of forward-looking financial disclosures under BRSR, including transition-related capital expenditure, funding sources and the use of internal carbon pricing.
Another major gap identified is the lack of disclosure on accountability and incentives. The report notes that BRSR does not mandate disclosures on climate-linked executive remuneration or detailed board-level oversight.
According to IEEFA, “linking rewards to climate performance” is critical to ensuring that transition plans move beyond statements to action.
IEEFA warns that weak, high-level disclosures could have financial consequences. “With global sustainable finance markets increasingly demanding credible transition plans and forward-looking metrics, Indian corporates risk losing access to capital if disclosures remain high-level and unstandardised,” the report says.
The report concludes that while BRSR offers broader ESG coverage and stronger social indicators, it lacks the climate-specific rigour needed to assess transition readiness. At the same time, global standards provide climate depth but fall short on social and stakeholder dimensions.
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Overall, IEEFA says India’s corporate disclosure regime needs clearer requirements on transition levers, governance accountability, scenario analysis and financing if net-zero targets are to be backed by credible delivery strategies.
