The climate crisis has reached the doorstep of India’s factories. For businesses and entrepreneurs, this is no longer a distant environmental threat, but a modern economic reality. Extreme weather events – such as floods disrupting supply chains and heat waves reducing worker productivity – are already causing trillions of dollars in damage to the global economy. Yet, this crisis also brings a business opportunity for our generation. According to a new survey, 82 percent of companies are already reaping economic benefits from decarbonization. Moving towards a climate-resilient, low-carbon economy is a new engine for competitiveness, job creation and growth. The question now is not whether to act, but how to lead. Evidence shows that Indian companies have already installed over 45,000 MW of renewable energy capacity, leading to significant reduction in energy costs. With approximately 70 percent of exports tied to net-zero markets, decarbonization is a new value point for entry into global trade. Globally, more than half of the world’s GDP is at risk of loss from ecosystem degradation. Building buffers to mitigate these climate shocks is cost-effective compared to the potential losses. This reality requires three shifts in mindset for visionary executives: consider flexibility as your balance sheet’s best friend, view supply chains as networks of shared dependencies rather than controls, and view waste as a strategic resource. Three practical steps can be taken in this direction:
First, redesign operations and supply chains to withstand the shocks of the climate crisis. For decades, the Asia-Pacific region has borne half of the economic losses from global disasters. With ‘protection gaps’ in insurance, global losses from natural disasters reached US$20 billion last year. Three out of four districts in India are hotspots for extreme weather events like floods, drought or heat waves. You just need to ensure that your entire value chain can withstand any climate shock. This is the best way to reduce operational risk. Second, make climate action not just your policy, but a core part of your product. This decade will witness the triumph of companies that create and provide the solutions India needs. According to research by the Council on Energy, Environment and Water (CEEW), the number of Indians working in clean energy sectors has increased by 47 percent in 2021-22 and is continuously increasing. The market for rooftop renewable energy, electric vehicles and green hydrogen is set to reach half a trillion dollars this decade. Third, invest in a cheaper and cleaner future. Clean energy is emerging as the most cost-effective source of new power generation, so going green is now the most cost-effective option. India has reduced solar energy tariffs by 90 percent in 15 years. Today, electricity generated from new solar power plants with battery storage is cheaper than electricity generated from new coal plants. The upcoming UN climate conference, the Conference of the Parties (COP30), will focus on mobilizing trillions of dollars in climate finance. With our energy demand expected to exceed that of the EU by 2030, the options for Indian businesses are clear. The future will be built not by the biggest, but by the most flexible and visionary.
