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This World Environment Day, the global conversation is focused on climate action. The message from the United Nations is clear: the question is no longer whether climate change is happening, but how quickly we respond to it. The challenge before businesses is equally clear. Climate action can no longer be treated as a sustainability initiative sitting on the sidelines of business strategy. It is increasingly becoming a competitiveness, resilience and growth imperative.
For India, the stakes are particularly high. NITI Aayog estimates that achieving India’s Net Zero 2070 ambition could require investments of approximately US$22.7 trillion while simultaneously supporting the vision of a Viksit Bharat by 2047. This transition will not be driven by governments alone. It will require businesses to rethink long-standing assumptions and avoid some common but costly mistakes.
Here are seven corporate NO-NOs that India Inc can no longer afford.
1. NO to Treating Sustainability as a Reporting Function
Over the past decade, sustainability reporting has become mainstream across global businesses. In India too, frameworks such as Business Responsibility and Sustainability Reporting (BRSR) have brought ESG disclosures into the mainstream. Yet climate risks continue to intensify, resource pressures continue to grow and supply chains remain vulnerable to disruption. The lesson is clear- reporting sustainability and practicing sustainability are not the same thing.
The organizations leading the transition today are embedding sustainability into procurement, product design, operations, capital allocation and risk management. They are treating climate and resource risks the same way they treat financial or operational risks.
For India Inc, sustainability can no longer remain an annual reporting exercise or a CSR-led initiative. If sustainability discussions happen only during report preparation, they are happening too late.
The real question is not whether your company publishes an ESG report. It is whether sustainability influences the decisions that shape your balance sheet.
2. NO to Setting Net Zero Targets Without a Transition Roadmap
The world does not need more net-zero announcements. It needs more net-zero execution.
A growing concern globally is the gap between long-term climate promises and short-term action. Thousands of companies have adopted science-based targets, yet experts increasingly stress that credibility depends on near-term milestones, transparent transition plans and measurable progress rather than distant ambitions alone.
Global best practice is shifting towards detailed transition planning. For instance, Siemens has validated near-term and long-term science-based targets covering Scope 1, 2 and 3 emissions, with defined pathways to 2030 and 2050 rather than relying solely on a distant net-zero pledge. Closer home, Wipro’s net-zero commitment is backed by measurable interim goals, including significant emissions reductions by 2030 and a transition towards renewable electricity. Such examples demonstrate that credible climate commitments are built on milestones, accountability and measurable progress, not just long-term ambitions.
For India Inc, the lesson is critical. A company announcing Net Zero 2070 without clear targets for 2027, 2030 or 2035 is effectively asking stakeholders to trust a promise without seeing the roadmap.
Climate leadership will increasingly be judged not by the destination announced, but by the milestones achieved along the journey.
3. NO to Ignoring Scope 3 Emissions
For many sectors, the majority of emissions occur outside a company’s direct operations.
Whether it is raw material sourcing, logistics, supplier operations or product use, Scope 3 emissions often represent the largest share of a company’s carbon footprint. Yet they remain among the least addressed aspects of corporate climate strategies.
Consider a manufacturing company that invests heavily in energy efficiency within its factories while overlooking emissions across its supply chain. The climate impact remains only partially addressed.
The future of corporate decarbonization will depend not just on cleaner facilities, but on cleaner value chains.
4. NO to Focusing Only on Carbon While Ignoring Resource Efficiency
Climate action is often discussed exclusively through the lens of emissions. However, resource efficiency and circularity are equally important.
NITI Aayog’s transition pathways highlight the importance of efficiency, circular economy principles and responsible consumption patterns in achieving India’s long-term climate goals.
The cheapest ton of carbon is often the one that never gets emitted in the first place. Reducing waste, improving material productivity, designing for reuse and extending product life cycles frequently deliver both environmental and business benefits.
Climate action is not only about energy transition. It is also about resource transformation.
5. NO to Overlooking Climate Risks to Business Continuity
Climate change is no longer a future risk. It is a present-day business risk.
India’s recent experiences with heatwaves, erratic rainfall patterns, urban flooding and water stress have demonstrated how climate impacts can directly affect productivity, infrastructure and supply chains.
Heatwaves, floods, droughts, water stress and extreme weather events are increasingly affecting operations, infrastructure, supply chains and workforce productivity. Across sectors, businesses are beginning to recognize that climate resilience deserves the same attention as financial resilience.
For a manufacturing facility, water scarcity can disrupt production. For an agricultural supply chain, changing weather patterns can affect yields and procurement costs. For urban businesses, extreme heat can impact employee health and productivity.
Climate resilience is no longer an environmental issue alone; it is a business continuity issue.
6. NO to Leaving Employees Out of Climate Action
One of the most overlooked dimensions of corporate sustainability is employee engagement.
The organizations making the greatest progress are creating cultures where climate action becomes everyone’s responsibility. Employees are contributing ideas for energy efficiency, waste reduction, resource conservation and sustainable operations.
Beyond operational gains, such initiatives strengthen employee engagement, attract purpose-driven talent and create internal momentum for change. As younger generations increasingly seek purpose-driven workplaces, climate action is becoming an important factor in talent attraction and retention.
Climate action becomes far more powerful when it moves beyond sustainability teams and becomes part of organizational culture.
7. NO to Waiting for Regulation Before Taking Action
The companies that lead sustainability transitions rarely do so because regulations force them to act. They act because they recognize future risks and opportunities before others do.
Whether it is carbon management, climate resilience, circular economy adoption or sustainable supply chains, organizations that move early often gain competitive advantages, attract investment and strengthen stakeholder trust.
Waiting for regulation may ensure compliance. Acting early helps create leadership.
The road to Viksit Bharat 2047 will not be built on sustainability commitments alone. It will be built on measurable action, difficult choices and the willingness to challenge business-as-usual.
This World Environment Day, as the world calls for accelerated climate action, the most important question for India Inc may not be what more we need to start doing- it may well be what we need to stop doing if we are serious about building a resilient, competitive and sustainable future.
Disclaimer: The opinions and views expressed in this article/column are those of the author(s) and do not necessarily reflect the views or positions of South Asian Herald.
