Archive · 4 Sep 2025
India's Sustainability Reporting Faces Challenges Amid Trade Uncertainties
Indian businesses are struggling to accurately report their carbon footprint due to changing trade rules.
Tariffs on goods increase costs, which inflates emissions estimates, making it look like companies pollute more than they do.
This can lead to misleading goals and unnecessary expenses.
Instead, businesses could use a method that focuses on their actual activities, providing clearer and more reliable data.
This would help them make better decisions and attract investors interested in green initiatives.
Global trade uncertainty impacts economies, including India's GDP.
Tariffs on goods raise input costs, impacting ESG reporting.
Spend-based carbon estimates are inaccurate due to tariff fluctuations.
Activity-based emissions reporting offers a more accurate alternative.
Using operational data can cut ESG costs and attract green capital.
- Who
- Indian businesses, exporters, and supply chain players
- What
- Are facing challenges in sustainability reporting due to trade uncertainties and tariff impacts.
- When
- Currently
- Where
- India
- Why
- To align with global sustainability frameworks and improve ESG disclosures.
- Affected Sectors
- Manufacturing, automotive, pharmaceuticals, and electronics
- Issue
- Tariff-driven input costs complicating ESG reporting
- Current Reporting Method
- Spend-based emissions reporting
- Alternative Reporting Method
- Activity-based emissions reporting
- Benefits of Activity-Based Reporting
- Greater accuracy and reduced costs