Corporates are increasing focus on setting emission reduction and renewable energy targets besides putting up an internal price on carbon as part of risk mitigation, says a report.

According to CDP's latest climate change report, as many as 47 firms on the BSE 200 index have disclosed information related to climate change as against 34 companies in 2010.

The report assumes significance following India, the world's third largest emitter of greenhouse gases, ratifying the landmark Paris climate deal earlier this month, giving a significant push for the agreement to come into force.

CDP, through a study of these 47 companies, has found that there is an increasing focus on setting emission reduction and renewable energy targets with 38 companies reporting current targets for cut in emission.

About 15 of the 38 companies have short term emission target (till year 2020).

"Our analysis indicates that there is clear evidence of increasing focus on voluntary emission reduction targets and growing interest for renewable energy sourcing demonstrating long term vision amongst companies," CDP said.

The report noted adding that two companies, Infosys and Tata Motors, have committed to a 100 per cent renewable energy consumptions target by 2018 and 2030 respectively.

Besides, it was found that companies are setting an internal price on carbon.

"In India, 15 per cent of the responding companies currently put a price on their carbon emissions and 43 per cent are planning to set a price on carbon within next two years," the report said.

Further, CDP said majority of the companies have at least one emission reduction initiative at implementation stage with highest number of such steps from energy, materials and information technology sector.

Interestingly, companies saw a 57 per cent jump in estimated monetary savings year-on-year from emission reduction initiatives.

The Paris agreement was signed in New York in April by 175 countries at the largest, single-day signing ceremony in history.

US, China, European Union, Brazil are the other biggest carbon emitters in the world.

The CDP (formerly known as Carbon Disclosure Project) is an organisation which works with shareholders and corporations to disclose the greenhouse gas emissions of major corporations.

Source: October 26, 2016, The Times of India