Despite the carbon credits euphoria, climate change remains a serious threat to businesses in India
For Indian corporations, carbon credits have been an unexpected silver lining around the cloud of greenhouse gases that has brought climate change to the forefront of the global consciousness. And while many have been quick to seize the opportunities presented by CERs, they must also face up to the new business risks and compliance requirements associated with operating in an environmentally aware market.
“As the global climate markets and regulatory regimes continue to develop, more and more companies are facing critical decisions and potential risks associated with their carbon footprints that are impacting investment opportunities, risk management, corporate disclosures, and even shareholder activism,” cautions David Hayes, the global chair of the environment, land and resources group at Latham & Watkins.
“Businesses are now realizing that the issues relating to environment cannot be treated as external factors,” adds Sunil Sinha, a senior economist at ratings company Crisil. “For the long-term sustainability and viability of a company, [environmental issues] are like any other business risk,” he adds.
