Scope 3 Emissions Accounting In India

Scope 3 emissions account for 60 per cent of an average entity’s footprint – a reality that has triggered their inclusion in the BRSR Core reporting framework. As regulations pivot toward mandatory Scope 3 disclosures, assessing the readiness of industry – particularly MSMEs – to weather this shift is critical.

The credibility of NetZero commitments gets affected as without Scope 3 accounting. It results in reducing trade competitiveness with the Indian exporters now facing the EU's Carbon Border Adjustment Mechanism (CBAM), requiring partial value chain disclosure. There is also a policy-practice disconnect with regulatory delays suggesting misalignment between policy ambition and industry capacity. Most importantly, value chain accounting affects the MSME ecosystem as large companies' Scope 3 reporting depends on data from thousands of small suppliers who lack reporting capacity.

The roundtable will convene stakeholders from industry, academia, and think tanks to identify necessary policy interventions needed to bridge existing gaps while remaining anchored to India’s net-zero commitments.