Summit

Net zero emissions: risks and benefits

The transition to the world of net zero is one of the greatest challenges facing humankind. It is a complete transformation of the way we produce, consume, and avoid. The energy sector now accounts for about three-quarters of greenhouse gas emissions and is the key to avoiding the worst effects of climate change. Reaching net-zero requires widespread adoption of lowemission or zero-emission clean energy technologies, such as renewable energies, which have lower power densities than traditional power plants that emit greenhouse gases. As more land is needed to provide equivalent power, power systems are shifting from large-scale centralized production to regional and interregional distributed generation to facilitate the transition to netzero energy.

By reducing the burning of fossil fuels, net zero is achieved, which can be expected to have direct and immediate human health benefits, especially by reducing air pollution in urban areas. In addition, the actions we take to achieve net zero may also contribute to human health.

SDGs are universal and can be applied to workplaces, markets, and communities. They are interrelated progress towards a goal can have a significant impact on progress towards other goals. SDGs offer excellent opportunity for business practices that incorporate adherence to and support for human rights and environmental conservation. Businesses can only prosper if people and the environment do as well. Prioritizing corporate giving, reducing pollution, and safety and health concerns were early movements that gave rise to ESG. The ESG lens is used to evaluate how an organization handles the possibilities and dangers brought on by shifting circumstances, such as changes in the environmental, economic, and social systems. ESGs are now evolving into a comprehensive framework that includes key elements of environmental and social impacts. Some of these conditions have been identified in earlier versions of sustainability-focused strategy and regulatory frameworks, including: EHS (Environmental, Health, and Safety), Corporate Sustainability, CSR (Corporate Social Responsibility). Climate change is the most important ESG issue considered by asset managers today.

India has put a lot of work into establishing strong plans and activities that are in line with the goal of achieving sustainable growth over the past year to stand out at the top in terms of its ESG commitment. The Indian Budget for 2022–2023 is anticipated to continue the work started last year by promoting digital economy, accelerating sustainable growth, and implementing energy transition and climate action. It targets microeconomic inclusive welfare improvement while pursuing macroeconomic growth.