India firms vow CO2 plans, but investment limited

New Delhi: India's top companies are slowly committing to improving their carbon footprint but are yet to provide for green technology in their investment decisions, a leading survey showed on Thursday.

A study by a non-profit group that monitors greenhouse-gas emissions showed that 68 per cent of 200 of India's top companies said they were measuring their carbon emissions and have pledged to make global warming a part of their business strategy.

This was a rise from 61 per cent in a 2008 survey, although then companies did not give a specific timeline and targets.

This year, companies have announced policy changes to reduce carbon emissions through fuel innovations, investment in energy efficient technologies and more focus on research and development.

Indian state explorer Oil and Natural Gas Corp for instance said it wanted to become carbon neutral.

"Leading companies have woken up and realised that they need to show leadership when it comes to climate change and realised that it is good for their brands," Carbon Disclosure Project Chief Operating Officer Paul Simpson told Reuters.

But the survey also showed that none of the respondents had factored in the cost of future emissions into their capital expenditure or investment decisions.

Another problem is that most of emissions in India are not produced by the top 200 companies but by small to medium size companies.

The global response from companies to the same study rose this year to 82 per cent compared with 77 per cent last year.

India, the world's fourth biggest emitter, is a key country in global negotiations for a pact to fight climate change.

But India is in a difficult position as curbing its growing emissions will slow down economic growth needed to pull hundreds of millions out of poverty.

India is calling for financial help from the developed countries to adapt to cleaner, but more expensive technologies.

Larsen and Toubro, India's top engineering conglomerate, said it would reduce by 10 per cent its total energy consumed, while Oil and Natural Gas Corp told the survey it would cut emissions by 15 per cent by 2014.

India's emissions are largely accounted for by power, steel, cement and chemicals sectors.