Apple, Microsoft, Amazon, Google, Infosys, Wipro—global and Indian firms are heading closer to achieving net-zero emissions, a mandate to combat climate change. Here is what you need to know to start your journey…
While it is important to be conscientious year-round, the end of every year has a way of awakening the do-gooder in every CXO who has been busy chasing corporate goals. Many of you are probably charting your social and environmental responsibilities for the coming year, and if you are, make sure to include well-defined efforts towards achieving net-zero emissions, because it is no longer a choice!
The Paris Agreement, a legally binding international treaty adopted in 2015, aims to limit global warming to below 1.5°C. To achieve this, emissions need to be reduced by 45% by 2030 and reach net-zero by 2050. While many tech majors, including Apple, Google, Microsoft, and Indian players like Infosys, have taken up the challenge full-on and hope to go net-zero within the next decade, many companies are still lax in their efforts, and some have hardly given it a thought. Here are some details that will set you thinking and help you plan your course of action.
Carbon footprints in the sands of time
Carbon footprint is the total amount of greenhouse gases (GHG) emitted by an entity (a product or an organisation), including both direct and indirect emissions. From a company’s perspective, these emissions are broadly classified as scope 1, 2, and 3. Scope 1 refers to emissions from sources owned or controlled by the company. This includes emissions from their products, vehicles, or furnaces, as well as from their manufacturing facilities. Scope 2 refers to indirect emissions from purchased energy, that is, fuel burnt somewhere to supply the energy they use from the grid. Scope 3 refers to indirect emissions that happen across the company’s value chain, both upstream and downstream, such as emissions during the extraction or production of materials bought by the company, energy used by resellers in their showrooms, emissions due to the use of the company’s products by end-users, emissions during their end-of-life disposal, and so on.
Scopes 1 and 2 are under the highest scrutiny. In some countries, companies are required to report their scope 1 and 2 emissions and may also have to pay a carbon tax. Scope 3 is more complex because it involves many entities not under your direct control, making it difficult to implement changes there. In many countries, addressing scope 3 emissions is not mandatory, but many Fortune 500 companies have voluntarily committed to tackling them.
The first step towards an organisation’s net-zero journey is, therefore, understanding and quantifying its carbon footprint. Once that is done, they need to decide which approach they will take to make this net-zero.
Net-zero vs carbon neutrality
The two are different. Carbon neutrality involves balancing or offsetting a company’s emissions with corrective measures after the damage is done. Without breaking their heads over improving their processes and products, companies can simply neutralise the effects of their emissions by funding projects such as mangrove afforestation, and soil sequestration, which reverse the effects of GHG emissions. Invest in enough projects to totally neutralise the ill effects of your emissions, and you become carbon neutral.
But net-zero is a more intense commitment that involves decarbonisation (revamping your products and processes to prevent as much emission as possible), compensating for whatever damage has been done, and voluntarily improving the ecosystem. While a company may start with carbon neutrality goals, net-zero must be the ultimate target. The net-zero approach involves reducing a company’s emissions in every possible way using renewable energy, recycled materials, optimising fleets, encouraging employees to go green, and so on.
| India’s Carbon Credit Trading System |
| • India’s Carbon Credit Trading Scheme (CCTS), which lays the foundation for the Indian Carbon Market (ICM), was introduced under the Energy Conservation (Amendment) Act, 2022, and is expected to start compliance trading from mid-2026. • The unit of trade in the ICM is a Carbon Credit Certificate (CCC), which is equal to one metric tonne of carbon dioxide. • India has opted for a baseline-and-credit approach to carbon credit trading. • The CCTS is managed by the Bureau of Energy Efficiency (BEE), which sets the baselines, verifies credits, and issues CCCs. • The BEE assigns emission reduction targets to obligated entities (in energy-intensive industries), under the guidance of a national steering committee. Entities that outperform the targets earn carbon credits, which they can sell to those that fall short of the requirements to comply. • CCCs will be traded on national power exchanges. The Central Electricity Regulatory Commission will regulate trading activities within the ICM, while the Grid Controller of India will act as the registry operator, maintaining records of obligated entities and trading transactions. • India’s carbon trading scheme involves both a compliance market for certain industries and a voluntary offset market for other entities. Voluntary projects like afforestation, renewable energy, and clean cooking generate CCCs. These non-obligated entities can then sell the credits, creating a secondary market. • The CCTS initially covers nine energy-intensive industrial sectors such as aluminium, cement, fertilisers, iron and steel, petroleum refineries, pulp and paper, and textiles, which account for 16% of India’s total emissions. The power sector (which accounts for 40% of India’s GHG emissions) is a glaring omission and may be included later. • Although IT and electronics are not part of the initial list, this is an opportunity for tech companies and private investors to invest in carbon offsets in the voluntary market. |
How to go net-zero
Although each company would have to develop a personalised net-zero roadmap, here are some pointers based on what companies across the globe have been doing towards that goal.
Measure your baseline
Start by measuring current emission levels to understand where you stand.
Adopt a scientific and data-driven plan
Develop your own net-zero roadmap that is data-driven and verifiable. Initiatives such as the Science-Based Targets initiative (SBTi) provide tools to chart a scientific and achievable path to reduce your emissions. Their approach advocates 50% reductions in emissions by 2030 and more than 90% by 2050, including plans to nullify the effects of past emissions.
Go for renewable energy sources
Transitioning to renewable energy sources is very important. You can build on-campus renewable energy sources like solar or wind, purchase from nearby facilities, or pay a renewable energy farm elsewhere to feed into the grid as many units as you take away from it.
Make your infrastructure energy-efficient
Look for even the tiniest opportunity to improve energy efficiency across your infrastructure. Plug thermal leaks, and go for smart lighting and HVAC solutions.
Reduce resource usage at every level
Optimise your company’s resource usage carefully. It is not just energy or emissions, but every single resource, right from raw materials and packaging to floor space and furnishing, because each resource counts.
Look into logistics
Transition to electric or hybrid fleets, and optimise routes to avoid any unnecessary emissions. If you provide a daily commute for your employees, make sure those routes and schedules are optimised as well.
Innovate for lasting impact
This is perhaps the toughest of them all, but the real game-changer. Go for new low-carbon technologies. Leverage the power of AI and automation to minimise emissions across operations. Invest in R&D to reduce the carbon footprint of your products and/or processes.
Encourage employees
Incentivise power savings across your organisation. Quantify the carbon impact of each cost centre and levy a mock tax to help employees understand how much energy they are using. Reward savings. Motivate employees to use less power at an individual level too, by taking the stairs, using public transport, pooling rides, and so on.
Work with your supply chain
Collaborate with vendors and other stakeholders across your value chain to further reduce emissions at multiple levels. Use environment friendly raw materials and prioritise suppliers with strong environmental commitments. Try to use recycled and recyclable materials wherever possible. Encourage downstream players in the supply chain to adopt eco-friendly packaging, make their stores energy-efficient, and provide means for sustainable end-of-life product disposal.
Invest in carbon credits and offsets
Purchase carbon credits and invest in engineering-based and nature-based carbon removal technologies to offset your emissions.
Understanding carbon credits and offsets
Carbon credits are created or generated by projects that reduce or remove greenhouse gases from the environment. There are engineering-based projects such as direct air capture, methane capture, and renewable energy generation, as well as nature-based projects such as reforestation and soil sequestration. One carbon credit is generated when one metric tonne of GHGs is removed or reduced from the environment. These projects and their results are verified and quantified (into carbon credits) by government-accredited agencies. And so, one carbon credit eventually becomes a tradeable permit to emit one metric tonne of carbon dioxide or other emissions. When a company uses a carbon credit to offset its emissions, the credit is said to be retired and cannot be traded in the market again.
There are two ways in which the carbon market may be regulated: the cap-and-trade method or the baseline-and-credit approach.
Cap-and-trade
In the cap-and-trade approach, the government sets an overall cap, or upper limit, on permitted emissions for each regulated sector/industry. This is divided into smaller allowances or credits and distributed to the different entities in that sector, either through direct allocation or an auction. If a company emits less than its allowance, it can sell the surplus credits to others who have overshot their limits. The cap must be lowered periodically to ensure that companies work towards reducing their emissions. The cap-and-trade system incentivises emissions reductions, as companies can sell the saved carbon credits for profit. Tesla, for example, generated a $2.76 billion revenue in 2024 from the sale of carbon credits—a 54% year-on-year increase from 2023. The cap-and-trade approach has been adopted by many countries, including China, New Zealand, parts of the United States, the United Kingdom, and the European Union.
Baseline-and-credit
The other approach, baseline-and-credit, sets a predefined baseline for each regulated activity or industry, based on a study of average emissions using standard technology or practices. Entities that emit less than the baseline earn carbon credits, which they can sell to those that overshoot the baseline. Unlike the cap-and-trade system, there is no cap on total emissions for the industry or sector here. Some experts feel this may be ineffective in achieving the overall net-zero goals of a nation, because the overall emissions by the sector is unpredictable and often uncontrolled. The baseline-and-credit approach is adopted by some countries, like India. Some, like Australia, follow a hybrid approach, a baseline-and-credit system with an overarching cap on the total emissions.
The ugly side of carbon credits
It has been noted that companies that really need to make substantial changes to their products and operations use carbon credits as an escape route. This is known as greenwashing and undermines the credibility of the entire carbon market. Say, a company uses large amounts of fossil fuels. The damage they do to the environment is very high and long-lasting, but they get off easily if they have the money to spare. Including penalties and fines, the purchase of carb on credits often proves cheaper for them than revamping their processes to use sustainable energy sources. Hence, the trading of carbon credits needs to be very carefully planned and monitored by governments to make sure it does not delay their journey to net-zero.
Voluntary carbon offsets
At this juncture, it is also important to talk about carbon offsets, a term used frequently alongside carbon credits. Carbon offsets are bought and sold in a voluntary market, where the players have no legal obligation to do so. It is like a voluntary investment to offset a company’s carbon emissions, over and above what is mandated, or in countries where there is no legal framework in place yet. Companies like Microsoft, Google, Apple, and Amazon voluntarily invest in several such carbon offsetting projects, to accelerate their journey to net-zero or carbon negative status.
There are several global agencies that liaison between the projects/entities that generate carbon credits and offsets, and those willing to buy them. Apart from the government agencies for compliance trading, there are third party platforms where you can buy offsets, such as the United Nations Carbon Offset Program, Regreener, South Pole, Rabo Carbon Bank, ClimatePartner, Cloverly, Carbonplace, Amazon Sustainability Exchange, and Carbon Registry – India among others. Although voluntary offset trading is quite low now, compared to regulatory carbon trading, it is expected to go up in the future as governments tighten their regulations. It is interesting to see private investors buying carbon offsets, akin to investing in stocks and other trade instruments! They are also putting a lot of money into carbon dioxide removal technologies.
| Tech-based and Nature-based Carbon Offset Methods |
| There are engineering-based and nature-based approaches to reduce and remove GHGs from the environment. Entities involved in such activities often sell carbon credits in the voluntary market, which many tech companies purchase to accelerate their net-zero targets. Engineering-based (technological) methods • Direct air capture. Machines filter CO2 from the air and store it underground for permanent removal, or for use in other products • Bioenergy with carbon capture and storage. This is a unique CO2 removal technology that also provides energy, or vice versa. Plants absorb carbon dioxide from the atmosphere during photosynthesis. The biomass from the plants is burned to produce energy. But the CO2 resulting from the combustion is captured in a concentrated form before it gets to the atmosphere, and stored underground or utilised. The net result is negative emissions • Enhanced rock weathering. Crushed silicate rocks like basalt are spread over large areas of land to chemically trap CO2 as stable minerals • Carbon capture, utilisation, and storage. Captures CO2 at emission sources for storage or conversion into products • Ocean-based capture. Removes CO2 from seawater, thereby increasing the ocean’s ability to absorb CO2 from the atmosphere • Renewable energy projects. Wind, solar, and geothermal replace fossil fuels and prevent or reduce CO2 emissions • Energy efficiency. Upgrading industrial and domestic systems to reduce emissions • Storing and reusing CO2. Conversion of captured CO2 into usable products also generates carbon credits Nature-based methods • Afforestation/reforestation. Planting/restoring forests, especially mangroves, helps absorb atmospheric CO2 • Biochar. Organic waste is converted into stable carbon (charcoal), which is locked into soil • Soil sequestration. Improved land use and farming (cover crops, no-till) boost organic carbon in soil • Blue carbon initiatives. Restoring/protecting mangroves, seagrass, and coastal wetlands enable rapid, durable carbon storage • Peatland restoration. Re-wetting peatlands prevents oxidation and large CO2 emissions. • Avoiding deforestation. Protecting forests from being cleared prevents GHG emissions. Reducing Emissions from Deforestation and Forest Degradation (REDD+) is a framework under the United Nations Framework Convention on Climate Change to incentivise developing countries to protect forests and mitigate climate change • Improved forest management. Better management of existing forests also increases carbon stocks and enhances ecosystem services • Rice methane reduction. Changing rice farming practices reduce methane emissions • Developing micro forests. Using the Japanese Miyawaki method to create and maintain dense forests in small spaces, even in urban areas, helps capture carbon dioxide and improve air quality |
Ideas from the trendsetters
Even though information technology and telecommunications do not currently feature among the top GHG emitting industries, tech majors across the globe and in India have taken the net-zero challenge quite seriously. And it is a great thing, because with the rise of AI, and deepening concerns about the power consumed by data centres and the amount of water required to keep the GPUs cool, it is good to proactively manage their carbon footprint right from now. Here’s a quick preview…
Apple
Apple has an ambitious target of becoming carbon neutral across its supply chain by 2030. It has reportedly surpassed a 60% reduction in GHG emissions compared to 2015 levels, and has made significant strides in the use of renewable energy, waste management, and water conservation across its supply chain. The company and its suppliers aim to remove 9.6 million metric tons of carbon from the atmosphere annually through carbon removal projects by 2030.
The company is increasingly using recycled and renewable materials in its products. As of early 2025, Apple is 99% closer to its goal of using 100% recycled rare earth elements in all magnets and 100% recycled cobalt in all Apple-designed batteries. It is also implementing strategies to reduce product emissions, such as designing Mac minis with recycled content and renewable electricity, and shipping them via low-carbon methods like ocean freight. The company is also tackling the problem of potent fluorinated gases used in semiconductor and display manufacturing, with a commitment from suppliers to reduce these emissions by at least 90%.
Apple also continues to be committed to its Restore Fund, in association with Conservation International and Goldman Sachs, which encourages members to profitably invest in natural carbon reduction and removal technologies such as forest restoration and mangrove conservation.
Microsoft
It is perhaps the only tech company that features in the league of top carbon credit buyers otherwise dominated by the energy sector. That is because the company not only aims to become carbon negative by 2030, it also hopes to compensate for all its emissions since inception by 2050! To achieve carbon negativity, the company is drastically reducing its emissions, procuring vast amounts of carbon-free renewable energy, electrifying its fleet, and investing in carbon dioxide removal technologies and nature-based solutions through its Climate Innovation Fund.
Microsoft uses mechanisms like internal carbon tax to weave the net-zero culture into every cost-centre. To offset unavoidable emissions, the company opts for verified, high-quality removal mechanisms with a long-term impact rather than just compliance offsets. Despite all this, the road to 2030 seems to be a tough one for Microsoft, as rapid AI and data centre expansions have driven total emissions up compared to a 2020 baseline. This is a common challenge that most of the big tech firms, including Google and Meta, are facing now.
Amazon
One of Amazon’s most significant contributions to the global net-zero campaign is The Climate Pledge that it co-founded in 2019. Through this, it has mobilised more than 500 companies to join its journey to reach net-zero emissions by 2040. Amazon’s net-zero strategy involves heavy investment in carbon-free energy, including nuclear and solar, matching 100% of its electricity consumption with renewable sources, and electrifying its delivery fleet with over 100,000 electric vans and e-bikes. It also works with suppliers to reduce scope 3 emissions. To address emissions that cannot be eliminated, Amazon invests in high-integrity carbon credits and nature-based solutions like forest conservation through initiatives such as the LEAF Coalition. The company also has its own carbon credits marketplace, called the Amazon Sustainability Exchange, and supports the development of sustainability technologies through the Climate Pledge Fund.
Google aims to achieve net-zero emissions across all their operations and value chain by 2030. Despite a 27% year-on-year increase in electricity consumption by their data centres due to the AI boom, in 2024 they managed to reduce data centre energy emissions by 12% compared to 2023. They are one of the largest corporate purchasers of clean energy, and have matched 100% of their global electricity use with renewable energy purchases since 2017. Like other majors, they are also committed to water consumption and waste management, advocating a circular economy. Like Apple, they have also been busy innovating on the product front, building consumer devices with recycled materials, eliminating plastic in their packaging, and making it easy for customers to repair, reuse, and recycle their devices. The products they launched and manufactured in 2024 had at least 20% recycled content, including magnets and aluminium enclosures.
One of Google’s most interesting investments in nature-based carbon removal is with Brazilian startup Mombak, which reforests degraded pasturelands in the Amazon using more than 80 native and biodiverse tree species, including a few endangered ones. To scientifically quantify the increase in biodiversity, Google and Mombak use Google DeepMind’s Perch AI model to analyse sound recordings of birds and insects from the restored areas. Google has also invested in an Indian company called Varaha, which converts agricultural waste into biochar, a charcoal-like substance that sequesters carbon and improves soil health.
Other major tech companies like Meta, Tesla, Intel, Lenovo, and Salesforce are also following similar approaches to achieve their ambitious net-zero emission targets.
Indian tech majors
- Infosys became carbon neutral in 2020 using a combination of renewable energy and large-scale carbon offset projects, and is committed to achieving net-zero emissions by 2040. It is a signatory to The Climate Pledge, and has set itself science-based emission reduction targets validated by the SBTi.
- HCL, another signatory to The Climate Pledge, is aiming for net-zero carbon emissions by 2040.
- Wipro too targets net-zero by 2040, with an interim 2030 target for 59% reduction in scope 1 and 2 emissions from a 2017 baseline, and a 55% reduction in scope 3 emissions from a 2020 baseline.
- Tech Mahindra is hoping to achieve net-zero across the value chain by 2035, with interim targets validated by the SBTi.
- Zoho is working towards net-zero by 2050, using their own Internet of Things (IoT) technology and other homegrown solutions along the way.
- Tata Consultancy Services (TCS) has set itself a deadline of 2030, while the Tata Group as a whole aims to make its emissions net-zero by 2045.
- LTI Mindtree, a subsidiary of Larsen & Toubro, is shooting for net-zero by 2040, with interim goals like shifting to 85% renewable energy by 2030 and achieving water positivity by 2030.
- Cognizant is committed to achieving net-zero emissions globally by 2040. Key intermediate targets include a 50% reduction in gross emissions by 2030. By 2026, they hope to supply 100% of their energy needs from renewable sources.
- Bharat Electronics Limited (BEL) is hoping to achieve net-zero scope 1 and 2 emissions by 2030. They were recently awarded the CareEdge-ESG 1 rating with a score of 73.8, for their commitment to sustainable practices.
As global regulations tighten, companies must move beyond carbon neutrality to embrace comprehensive net-zero strategies. The journey requires more than just purchasing carbon credits. It demands fundamental changes in operations, supply chains, and corporate culture. Leading tech companies are showing the way with ambitious targets, innovative solutions, and substantial investments in both technological and nature-based carbon removal. Taking cues from the paths they have charted, build your own roadmap to net-zero emission, because it is no longer a choice but an imperative business transformation. Start now, do it right, and make net-zero your legacy.
Janani G. Vikram is a freelance writer based in Chennai, who loves to write on emerging
