According to the Emissions Gap Report, the current pledges under the Paris Agreement put the world on track for a 2.5-2.9°C temperature rise above pre-industrial levels. The message is clear - we will live in a hotter world with an increasing frequency of extreme weather events. Undoubtedly, climate action must be accorded topmost priority with impactful solutions for decarbonization and adaptation. Existing solutions for decarbonization need to be scaled up, and newer economically viable and practical pathways are required to tackle hard-to-abate sectors as well as carbon capture, utilization and storage. However, given the escalating threats with the 1.5°C threshold being breached from time to time, it will be imperative to bring adaptation to the center stage of climate action. This will require enhanced efforts in areas like water security, biodiversity, climate-smart agriculture among others. Further, the transition to Net Zero will need to leverage emerging technologies, particularly digital and AI, to shape a more resilient world. It will also be imperative to keep in mind the varied needs of different stakeholders to enable a just systems transition.

Such challenges also call for colossal efforts from all stakeholders -including nations, corporates and citizens. It is evident that in such a context, progress cannot be made unless the strategies of growth and competitiveness are redefined to serve the larger purpose of making the world a better and greener place.

It will be crucial to mobilize substantive public, private and multilateral climate finance given the enormity of the challenges facing economies across the world. To unlock the potential of private capital, it will be important to catalyze accessible technologies, and green financing together with market incentives and penalties besides eliminating frictions in the system.

It is indeed encouraging that India has taken the lead in launching several initiatives to build a climate-resilient future. The Government has set an ambitious goal of net zero emissions by 2070. Notable examples of India’s endeavors include the push towards green hydrogen energy, the International Solar Alliance and the Green Credit Initiative under Mission LiFE.

Corporates have both an economic and a social purpose. Hence, the path to future progress necessitates business strategies that not only enhance competitiveness but also address the underlying fault lines of social inequity and climate risks. In my experience, it is abundantly clear that what is good for the planet and society is also intrinsically good for business. It is indeed heartening to note that across sectors, Indian enterprises have made significant efforts to promote clean and efficient energy, water and waste management, create green supply chains and promote a circular economy. We would need many more of such initiatives, especially ones that encompass the medium, small, and micro-enterprises to create meaningful impact.

It is in this context that the CII-ITC Centre of Excellence’s role assumes great importance in driving sustainable and inclusive development pathways. For more than 18 years, the Centre has been at the forefront of sustainable value creation through drivers of growth, inclusion, and conservation of nature. These are realized through key interventions based on four pillars - Low Carbon Economy, Circularity, Balanced Ecosystems and ESG.

Through multistakeholder platforms such as Cleaner Air-Better Life; India Plastics Pact (IPP); India Business & Biodiversity Initiative and the Climate Action Charter, the Centre encourages stakeholders to become climate-conscious; track their environmental footprint; improve operational sustainability and unlock value from climate resilient strategies. Innovative initiatives such as the CII-ITC Sustainability Awards; ESG Intelligence & Analytics Services; Eco Edge Certification and Climate Action Programme 2.0° enable businesses to create a roadmap for sustainable development; identify actionable solutions and build resilience.

I am happy to share that there are 400+ signatories to the CII Climate Action Charter, 100+ signatories to India CEO Forum for Clean Air; 53 signatories have committed to the targets of IPP; and while 63 signatories to the India Business and Biodiversity Initiative mainstream biodiversity in their decision-making.

More than 400 MSMEs have been engaged through cluster-level programs in ESG, Climate Change and Air Shed Management. Nearly 140 sites under 18 organizations were certified with Single-use Plastic Free Certification. The Centre has also launched the SaaS-based ESG diagnostics tool, ESG Intelligence & Analytics. It has initiated work in new clusters of Uttarakhand, Madhya Pradesh, and Tamil Nadu, while handholding has been undertaken for MSMEs for clean production across intervened industry clusters - Siltara (Chhattisgarh), Jigani (Karnataka) and Byrnihat (Meghalaya). A unique public-private partnership approach was initiated in the Pune and Pimpri Chinchwad urban areas to facilitate cities and businesses to come together to pilot & scale clean air solutions.

The year also witnessed significant work being undertaken by the Centre towards the Policy Paper under the B20 India Action Council on ESG, where more than 182 members shared their suggestions as well as the Policy Paper under the B20 India Task Force on Energy, Climate Change and Resource Efficiency for which more than 160 members shared their suggestions. The Centre was also part of SEBI’s Industry Association Working Group on BRSR Core-SOP. It collaborated with the COP28 UAE Presidency on engaging the corporate sector through the Industrial Transitions Accelerator (ITA) initiative, wherein 25 prominent Indian enterprises committed to join the ITA. As the front-ranking institution promoting sustainable development, the CII ITC Centre drives inclusive and climate-friendly transformation among stakeholders through research, data-driven digital tools, frameworks, collaborative initiatives, and capacity development, as encapsulated in this Annual Report. It will continue its expansive work in bringing local and global macro challenges to the center stage; building policy consensus on critical issues; strengthening stakeholders’ awareness and representation on policy & regulatory reforms and enabling meaningful actions that positively impact environment, nature, and communities. I hope you will find the fifth edition of our Annual Report useful and informative.