India Needs Clear Roadmap With Milestones for Achieving Net Zero Target, Says Mahesh Ramanujam

The biggest challenge, as always, is awareness. Many people don’t fully understand what net zero means, and even those who do often have different interpretations. Establishing a consistent definition is crucial. Only then can we ask industries or sectors to contribute effectively.

The second challenge is quality. While we’re improving, especially when you compare the past two decades in areas like building design, construction and business practices, quality remains a work in progress. We still have a way to go.

The third issue is the lack of good case studies and success stories. We need more examples of replicable strategies—what I call "celebration"—to show others what’s possible. Sharing these successes can transform markets. Peer or competitive gamification helps a lot in driving this, but it requires transparency, data and storytelling—things you [the media] do very well.

So, the three main barriers are awareness, quality and showcasing success. Stronger policies are welcome. The government’s 2070 net zero target provides a clear direction. We might even align with the 2050 Paris Climate Action target, especially with the implicit 2047 Viksit Bharat [Developed India] goal. We can’t afford to delay—look at the heat in Delhi or the water scarcity in Chennai. We will achieve these targets, not because they’re aspirational, but because we must.

Right now, we have a broad policy aiming for net zero by 2070, but we need an incremental approach. Let me give you an example from New York. They introduced a law called Local Law 97, where they created a 30-year roadmap for buildings, setting specific targets to meet by certain years. If a building didn’t meet the targets, it faced penalties. At first, there was resistance, but after Covid-19, the real estate market shifted, and many saw the urgency to act. This is the type of policy we need—a clear roadmap with milestones and penalties to push progress. 

Now, in terms of policy specifics for India: 

• First, we need to clearly define what net zero means 

• Second, there should be clear minimum actions required for industries, possibly tied to environmental clearances 

• Third, we need to standardise the data collection process, so organisations are transparent about their progress. A lot of this is already happening, but we need more specificity.

• Lastly, we should set minimum thresholds rather than an all-or-nothing approach. These smaller steps will help industries make incremental progress.

First and foremost, economic prosperity cannot be compromised. Environmental sustainability should not come at the cost of economic growth. I’m not a fan of the “downsize or shrink” approach. I’ve heard people advocate for extreme minimalism—wearing two or three pieces of clothing, for example. Then in the same session, I see them changing their clothes three times. It’s absurd. We must acknowledge the economic prosperity of the past three decades, which has lifted millions out of poverty.

Instead of seeing environmental sustainability and economic growth as separate, we need to integrate them. Companies should adopt sustainable practices that improve revenue, reduce costs and increase profitability. Make sustainability a business case, and you’ll validate its importance. With today’s technology, policies, and motivation, we can do this. Net zero should be aligned with business strategies to maintain both economic and environmental stability.

There are many examples. Let’s start with ITC Hotels. In 2004, they introduced the concept of "Responsible Luxury", which incorporated sustainability into their business model. At the time, it was expensive, and they probably didn’t see an immediate return on investment, but over time, they created brand value. Today, they command a premium as a responsible company, which has helped shift public perception, especially given their background as a tobacco company.

Another example is Delhi Airport. Twenty-five years ago, it was sub-par, but now it meets global standards, with sustainability ingrained in its operations—cleanliness, waste management, greenery, biodiversity and more. They’ve replicated the best global practices, and this has raised the bar for airports across India. They even achieved the first net zero certification from their civil aviation group, tackling Scope 1 and 2 emissions, and are now working on Scope 3 emissions (e.g., cargo, aviation, consumer commutes). This is all integrated into their core business strategy, not just for bragging purposes but because it’s the right choice for the business.

Emerging technologies are crucial. Solar and wind energy are reliable, but we still haven’t mastered large-scale battery integration. EV charging stations need better battery solutions. In construction, we need green materials—like green steel and glass that can generate solar energy. This will help make solar installations easier, especially for vertical buildings.

Finally, hydrogen is an important potential energy source. In India, I see a future where renewable energy, coupled with advanced battery technology and hydrogen, will meet our energy needs—not just today, but for the long term. 

The vision is to get people started on sustainable practices. When I arrived in India in 2014, I was told there were only about 200 LEED [Leadership in Energy and Environmental Design] projects despite the fact that LEED had been in the country for nearly 10 years. I firmly believed it was unacceptable for India to develop infrastructure without striving for better standards. If lack of funds is an issue, I understand that, but not trying harder isn't acceptable. It became our responsibility to educate people about better possibilities. I started focusing on awareness, and now we have over 5,000 projects in the country. Today, LEED has become a recognised trend, with many significant projects bearing its stamp.  

• For GNFZ, my first goal is to ensure people develop the required understanding.

• The second goal is to implement more projects. Without projects, our ideas remain theoretical. My team has a goal of achieving at least 100,000 to 150,000 projects over the next five years. While it may seem ambitious, we have to strive for implementation.

Currently, we have five completed projects and 25 more in development. These projects vary greatly in size, from a small conference room to large campus developments. 

In terms of the sectors that we are focusing on, I see cities and communities as significant opportunities, especially within the MSME [micro-, small- and medium-enterprises] sector. The growth of India relies heavily on MSMEs, as they form the backbone of the economy. While large businesses like Reliance and Tata are important, it's the middle-class segment that drives India's growth. The MSME sector faces many challenges, particularly regarding costs and the need for simpler solutions. Many MSME owners prefer to make their own decisions without hiring external consultants, so it's crucial to educate them and their close networks.

And among this batch, it's essential for entrepreneurs to feel a sense of ownership over their ideas and innovations. If they do, they will be more motivated to transform their businesses. To achieve this, I focus on educating entrepreneurs and their confidants, making it about their innovations and successes. 

The vision is to focus on the MSME sector, give them a book rack solution that they can replicate within the system. It'll work across sectors. Textiles will be different. Manufacturing will be different. The traders will be different. The diamond sector will be different. So give them pockets of intervention using our methodology, but contextualise it for their industry and roll it out to the system.

Now, I cannot do it alone. I have to do it with FICCI [Federation of Indian Chambers of Commerce and Industry], I have to do it with ASSOCHAM [Associated Chambers of Commerce and Industry of India]. I have to do it with the CII. If I don't, I cannot. Because you know they will have the ability to drop this from the top. If they say this is the trend, that’ll happen. So I'm working on the clusters, the network effect. I had to create the network. And that's how we succeeded with the LEED.

Working with MSMEs can be chaotic and highly emotional. Many entrepreneurs work incredibly hard but struggle to break free from their current situations. I empathise with their challenges and emphasise the importance of trust and faith in their capabilities.

MSMEs significantly impact larger companies’ sustainability efforts, especially regarding Scope 3 emissions. If they do not adopt sustainable practices, they can adversely affect their partners' ESG [Environmental, Social and Governance] performance. Embracing sustainability is essential for their profitability and attractiveness in the market.