A new report highlights how climate-related risks, rising energy demand and economic pressures are increasingly shaping India’s energy transition and business landscape.
Uniqus Consultech has released its Sustainability and Climate Pulse Report which shows how problem of climate change faced by India is gradually turning into an economy and transition issue.
India saw record-high electricity demand at 256 GW, which occurred on 25 April 2026, alongside rising consumption by 8.9% year over year. This trend has been triggered by the increased frequency of heat waves in the nation. Additionally, there has been an increase in generation capacity by almost 65 GW within FY 2025-26.
According to the report, efficient grid management, along with effective dispatch planning, has been useful for dealing with the growing electricity demand. The report further explains that there is an increasing dependency on renewables and solar electricity which contributes over one-fifth of total power production during peak consumption times.
At the same time, the government’s ₹37,500 crore coal gasification project seeks to achieve self-sufficiency and promote indigenous industry. The Indian stance appears to be one that emphasises expanding their renewable energy sources while addressing their energy security needs.
Anu Chaudhary, Partner and Global Head, Sustainability & Climate Consulting (SCC), Uniqus, said, ” India’s climate challenge is increasingly becoming a macroeconomic and transition challenge. The convergence of record heat events, the potential impact of El Niño, and geopolitical uncertainty is creating interconnected pressures across energy systems, food supply, and inflation. At the same time, India is actively navigating this complexity through a pragmatic approach, scaling renewable energy while continuing to rely on conventional capacity to ensure reliability and energy security. The focus is now shifting from climate as a long-term goal to climate as an immediate business and economic risk.”
The report states that India’s pathway to its low-carbon future represents a pragmatic approach. There has been an increase in solar generation which accounts for over 20% of the electricity generated during peak periods. However, most of the electricity generated still comes from thermal plants.
Moreover, it points out that fuel and industrial imports amount to around ₹2.77 lakh crore, underlining the necessity of enhancing domestic manufacturing capacity. As per the report, climate transition in India has become dependent on economic resilience, industrial considerations, and reliable energy supply apart from emission reductions.
It also notes that the widening scope of ESG requirements under India’s BRSR Core structure, which is now expanding ESG reporting obligations to include supply chain operations as well. Companies will likely find it difficult to gather and attribute ESG data when working with suppliers that may have different degrees of capacity for reporting ESG data.
However, in addition, the report highlights that climate risks are increasingly being felt not just environmentally but as more far-reaching economic risks. The report notes that warming, El Niño risks, and uncertainty about geopolitics may have an impact on agriculture, water resources, energy demand, energy costs, and inflation. These events suggest that climate risk is now becoming a business consideration for firms.
Source: Responsible us, indiacsr, PSU connect
