India's Steel Sector Revolutionized! Landmark ESG Report & GHG Framework Launched to Unlock Trillions in Climate Finance!

Author

Satyam Jha | Whalesbook News Team

Detailed Coverage:

iFOREST has unveiled a groundbreaking ESG performance report and a unified Greenhouse Gas (GHG) Accounting and Measurement, Reporting & Verification (MRV) framework tailored for India's critical steel industry. This pioneering effort is designed to elevate the standard of Environmental, Social, and Governance (ESG) reporting, providing investors with more reliable and comparable data. A primary objective is to facilitate the inflow of climate finance essential for the sector's transition towards ambitious Net Zero emission targets.

The Indian iron and steel industry is a significant contributor to carbon emissions, accounting for approximately 12% of the nation's total CO₂ output. With projections indicating a near doubling of steel production from 140 million tonnes in 2023 to 255 million tonnes by 2030, and further expansion to 500 million tonnes by 2050, the sector's decarbonization is pivotal for achieving India's climate commitments and sustained economic development.

Chandra Bhushan, CEO of iFOREST, highlighted the indispensable role of transparent ESG reporting in attracting the trillions of dollars in climate finance India requires. He stressed the necessity of a clear taxonomy, a defined policy roadmap for decarbonization, and credible, verifiable information to guide investment decisions. Ajay Tyagi, former Chairman of the Securities and Exchange Board of India (SEBI), underscored the importance of sector-specific BRSR reporting guidelines and robust MRV systems to build investor confidence. Alok Sahay, Secretary General of the Indian Steel Association, pointed out that the industry needs an estimated Rs 9 lakh crore for green initiatives, and iFOREST's new framework will be instrumental in ensuring the disclosure of verifiable data.

Impact: This initiative is poised to significantly boost investor confidence in the Indian steel sector by introducing standardized, transparent, and verifiable ESG and GHG data. It is expected to steer capital towards sustainable steel production, potentially driving investment in green technologies and practices. Companies demonstrating strong ESG performance could gain a competitive edge. Rating: 8/10.

Difficult Terms: * ESG: Environmental, Social, and Governance. Standards investors use to evaluate a company's sustainability and ethical impact. * GHG: Greenhouse Gas. Gases that trap heat in Earth's atmosphere, contributing to climate change (e.g., CO₂, methane). * MRV: Measurement, Reporting, and Verification. A system to quantify, report, and confirm emissions data for accountability and compliance. * BRSR: Business Responsibility and Sustainability Reporting. India's mandated framework for companies to report on their ESG performance. * Climate Finance: Funds directed towards supporting climate change mitigation and adaptation efforts. * Net Zero: Achieving a balance between the greenhouse gas emissions produced and removed from the atmosphere, effectively halting the rise in global temperatures. * Taxonomy: A classification system that defines which economic activities are considered environmentally sustainable.