‘Emission cuts alone won't work': Industry leaders call for clarity, circularity in decarbonising value chains
New Delhi: Industry leaders from sectors including FMCG, steel, pharmaceuticals, fashion and energy have flagged major hurdles in India's push towards
net zero emissions
by 2070, citing the complexity of
Scope 3 emissions
, high cost of
carbon capture technologies
and regulatory constraints across hard-to-abate sectors.
'Scope 3 emissions are substantial due to large-scale agri-commodity sourcing,' said Vishwa Bandhu Bhattacharya, Director Sustainability, Tata Consumer Products, speaking at a panel on 'Decarbonising Value Chains' at the ET India Net Zero Forum 2025. 'The real challenge is identifying what's truly relevant across its 15 complex categories. To address this, we've adopted a materiality-based, third-party verified approach that brings focus and accuracy to our reporting.'
In the agriculture-linked FMCG sector, PepsiCo is driving regenerative initiatives. 'We work with 27,000 farmers to promote regenerative practices like soil testing and efficient irrigation,' said Yashika Singh, Head – Corporate Affairs, Communication & Sustainability, PepsiCo India. 'While industry is driving this through Scope 3 goals, greater policy support is needed to scale impact and unlock real benefits for farmers.'
In pharma, regulatory constraints continue to slow down decarbonisation efforts. 'In a highly regulated industry, any material in contact with medicine needs multiple approvals—so process changes are slow,' said Rajesh Vasudevan, Vice President – EHS & ESG, Cipla. 'We've focused on what we can control, like recycling 50% of our water and becoming 1.75 times water positive in India. All 37 of our units are now zero waste to landfill. But challenges remain—like managing expired medicines, which must be incinerated to prevent misuse, and addressing antimicrobial resistance in third-party manufacturing.'
Steel manufacturer Jindal Steel and Power Ltd (JSPL) is working on emission intensity reduction while keeping additional costs in check. 'In hard-to-abate sectors like steel, we're focused first on what's within our control,' said Naveen Ahlawat, Head – Power to X, Green Hydrogen, Green Steel, CCSU, JSPL. 'Through operational excellence and energy efficiency, we're targeting a 13–15% reduction in carbon intensity with just 1–2% additional capex.'
'To go further, we're looking at larger levers like renewables, nuclear energy, and carbon capture. Carbon capture still costs around $120 per tonne, but we're already capturing 3,000 tonnes a day—scaling it sustainably is now the challenge,' Ahlawat said.
Fashion sector leaders also raised concerns over the sector's environmental footprint. 'One T-shirt takes about 3,000 litres of water, and one pair of jeans uses nearly 8,000 litres. Most of this water is non-recyclable,' said Naresh Tyagi, Chief Sustainability Officer, Aditya Birla Fashion and Retail. 'Around 80% of garments end up in landfills globally, driven by fast fashion. India's tradition has always been about reuse and recycling—saris passed through generations are a perfect example. Bringing circularity into fashion is not just necessary, it's rooted in our culture.'
Industry executives said decarbonisation needs to go beyond internal efficiencies and must integrate stronger regulatory and financial support systems to enable cross-sector collaboration in value chain emissions reduction.
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