Assessing Transition Risks & Opportunities associated with Corporates in India

As India moves toward a low-carbon economy, banks and financial institutions are increasingly expected to understand how prepared their borrowers are for evolving policy, technology, and market conditions. This shift is reinforced by India’s advancing climate policies, including strengthened Business Responsibility and Sustainability Reporting disclosures, new guidance for social and sustainability-linked bonds, and work underway to create a climate finance taxonomy spanning key sectors such as power, mobility, steel, cement, buildings, and agriculture. In parallel, the Voluntary Carbon Market and Carbon Credit Trading Scheme have been operationalized, supported by emissions targets for hard-to-abate sectors.

Our ongoing work provides:

• A structured, step-by-step approach to conduct corporate transition assessments
• An illustrative assessment of an Indian steel company, demonstrating how a bank may approach such an evaluation
• Sector insights into the steel industry’s transition pathways and challenges in India
• Detailed analysis of technology, market, and policy dependencies associated with key decarbonization levers

This closed-door roundtable is designed to:

• Provide an introduction to corporate transition assessments (CTAs)
• Share early insights from applying the methodology in the Indian context
• Discuss how such assessments can inform credit decisions, risk frameworks, and client engagement
• Gather feedback from banks and FIs to refine and strengthen this work

Expected outcomes

• Familiarity with a practical approach to assessing a corporate’s transition readiness
  • Better understanding of how transition assessments can support strategic decision-making
  • Key insights into transition pathways in the Indian steel sector
  • Opportunities to shape tools that will support India’s broader transition finance agenda