Electric mobility and ESG: How India’s transition aligns with global sustainability goals

economictimes.indiatimes.com:

electric mobility is a pivotal change in the global effort to combat climate change, particularly given the automobile sector’s significant contribution to Greenhouse Gas (GHG) emissions. As urbanization and pollution escalate, particularly in countries like India, the need for a sustainable shift in the automobile industry is urgent.

Electric vehicles (EVs) are not just an environmental transition but are integral to India’s journey toward achieving global sustainability frameworks and Environmental, Social, and Governance (ESG) norms. By aligning e-mobility innovations with ESG metrics, India can take a leadership role in its sustainability journey and make substantial progress in EV adoption.

How Electric Mobility Lowers Scope 1 and Scope 2 Emissions
The ESG framework provides a holistic base for assessing and improving sustainability efforts.

Enterprises focus on two main areas: Scope 1 emissions, which are directly created by the business, and Scope 2 emissions from purchased energy. EVs represent a paradigm shift by reducing reliance on fossil fuels and directly-driven transport systems, thus lowering emissions.

However, the full impact of EVs must consider the fossil fuels used in their production and lifecycle. Government initiatives like the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme highlight the commitment to integrating ESG principles into the business model, positioning electric mobility as a critical component in enterprise logistics and mobility strategies.