There is an urgent need to understand the need of industry action and its effectiveness towards building a pathway to achieve aspirations such as mapping out net zero future, become resilient, drive innovation, and create growth at the same time, build on interventions on important pillars like -low carbon economy, circularity, collaborations, and balanced ecosystems.
Moreover, working together to drive industry towards acknowledging the common but differentiated responsibilities, understanding the mutual complementarities, and identifying the levers of action in accelerating towards a sustainable and low carbon transition.
Becoming a signatory of CII CCAC is voluntary, and no cost is involved.
Four pillars of the charter include:
a) GHG Emission Reductions – Measure the present/baseline GHG emission and develop measurable short-term (5 years) and long-term targets for GHG emission reduction
b) Transition in value chain – Identify risks to which the value chain is exposed and support in climate transition.
c) Building Resilience- Work with the company’s leadership team to build resilience for future climate change impacts.
d) Mobilizing Green Finance- Help in framework development of green bonds usage and accelerate green finance for climate transition. To improve the identification and management of financial risks related to the climate and the environment.
The first requirement is to sign the CII Climate Action Charter and make public disclosures every year, followed by progress made by the company on specific points of the CCAC (if not all) and whether they want to be scaled and ranked accordingly. In subsequent disclosures the company is required to report on progress on most of the points along with newly added achievement. The reporting framework will help companies to prepare the disclosure developed by CCAC Advisory group.
Expectation from companies is w.r.t taking a pledge in reporting correct data to understand the present state of climate risk the company is facing across the value chain. The four principles will support businesses in addressing climate change risks in their operations.
Main aim of the CII-Climate Action Charter is to drive corporate climate action in India.
Climate change is the defining issue of present times and businesses are facing major challenges due to increase in extreme weather events fatal climate events causing damage on a large scale.
India's own Climate Change Assessment Report by the government showed that both the frequency and intensity of droughts had increased significantly between 1951 and 2016; and more areas have become susceptible to flooding. It warns that heat waves would intensify four-fold by the end of the century. The 4 principles will support businesses in addressing climate change risks in own business and across the value chain. The CII Climate Action Charter (CCAC) has been designed to facilitate businesses to lead their sectoral climate actions and showcase best practices for addressing climate risks.