KPIL targets carbon neutrality by 2040 after emissions estimates

Kalpataru Projects International Limited has set carbon neutrality by 2040 after completing estimates of Scope 1, 2 and 3 emissions, with renewable energy accounting for 25% of electricity in FY26. KPIL also reports that its international transmission and distribution business achieved Scope 1 and 2 carbon neutrality for the third consecutive year.

What is KPIL’s carbon-neutrality target?

KPIL’s stated group-level carbon-neutrality target is 2040. The company places this target in a sustainability mission to pursue carbon and water neutrality while achieving zero waste across operations. Its other dated environmental goals are water neutrality by 2032 and circularity in construction and demolition waste by 2035.

KPIL’s 2040 target sits within its “Creating Positive Impact” sustainability pillar, which covers carbon emissions, water stewardship and waste management. The company’s other pillars are “Engaging with Stakeholders,” covering health and safety, human-capital management and local-community engagement, and “Performing Responsibly,” covering business practice, portfolio and sourcing.

KPIL says its reporting and disclosures align with Integrated Reporting, Global Reporting Initiative standards, Sustainable Development Goals, ISO 14001:2015 and ISO 37001:2016. These frameworks accompany the company’s three environmental deadlines of 2032, 2035 and 2040, rather than replacing the operational measures disclosed for electricity, solar installations and biomass plants.

How far has KPIL progressed in measuring emissions?

KPIL says it has completed estimation of Scope 1, 2 and 3 emissions. The completed estimation is listed as an environmental outcome alongside climate-risk assessment, decarbonisation plans and Scope 3 emission estimation, giving KPIL a disclosed emissions boundary that includes all three reported scopes.

The presentation does not disclose an absolute emissions total, a base year, a scope-by-scope emissions split or an emissions-intensity measure. It also does not provide an annual reduction target, an interim carbon milestone before 2040 or details of any mechanism to meet the 2040 target beyond the initiatives and outcomes shown.

The disclosed measurement boundary is broader than the reported carbon-neutrality outcome for the international transmission and distribution, or T&D, business. KPIL has estimated Scope 1, 2 and 3 emissions, while its three-consecutive-year neutrality statement applies specifically to Scope 1 and 2 in international T&D.

That difference means the presentation distinguishes between group-wide emissions estimation and a business-specific carbon-neutrality result. KPIL does not state that all operations or its Scope 3 value chain are currently carbon neutral, despite the completed estimation across three scopes.

What renewable-energy actions has KPIL disclosed?

KPIL reports a 25% share of renewable energy in electricity in FY26. The company lists solar installation at all sites and plants among its environmental initiatives, while its reported outcomes specifically identify solar installations at manufacturing plants in Gandhinagar and Raipur.

KPIL also reports two renewable-energy-based power plants using biomass. The presentation lists those two plants alongside the Gandhinagar and Raipur solar installations, but does not disclose their capacity, electricity generation, utilisation, ownership structure or contribution to the 25% FY26 renewable-electricity share.

The solar and biomass measures are part of KPIL’s energy-management work, which also includes climate-risk assessment and decarbonisation plans. The presentation provides no comparable renewable-electricity share for an earlier period, so the change leading to the FY26 25% share cannot be calculated from the disclosed information.

KPIL’s environmental initiatives also include water-risk assessment, rainwater harvesting at plants and in communities, and a waste audit and management plan. However, the company does not disclose a water-neutrality baseline for its 2032 target or a construction-and-demolition-waste circularity rate for its 2035 target.

Which KPIL business has achieved carbon neutrality?

KPIL says its international T&D business achieved Scope 1 and 2 carbon neutrality for the third consecutive year. This reported outcome is narrower than the company’s 2040 carbon-neutrality goal because the stated business boundary is international T&D and the stated emissions boundary covers Scope 1 and 2.

The international T&D outcome appears in the environmental section beside the FY26 25% renewable-electricity share, solar installations in Gandhinagar and Raipur, and two biomass power plants. The presentation does not disclose a corresponding Scope 3 carbon-neutrality outcome for international T&D or a carbon-neutrality result for other KPIL businesses.

The comparison between the three-scope estimate and the two-scope T&D outcome is material to interpreting the disclosures. KPIL reports a completed Scope 3 estimate at the company level, but only identifies a three-year neutrality record for Scope 1 and 2 in the international T&D segment.

How do supply-chain and governance measures support KPIL’s ESG plan?

KPIL reports 17,345 mandays of training in FY 2025-26 and launched the KalpaSetu project for sustainable supply-chain assessment and capacity building of its suppliers and micro, small and medium enterprises vendors. KalpaSetu links to the company’s stated focus on responsible sourcing and its completed Scope 3 emissions estimation.

The presentation does not quantify the number of suppliers or vendors covered by KalpaSetu, procurement spend assessed, or any resulting reduction in Scope 3 emissions. The disclosed social outcome therefore measures training activity and a supplier-assessment initiative rather than an emissions reduction.

On governance, KPIL reports ISO 37001:2016 certification, regular training and awareness on ABAC and ESG, and more than 15 cybersecurity training sessions conducted through virtual and physical classrooms. Its governance initiatives also include materiality assessment, digitalisation and data collection, and policy-gap assessment and enhancement.

KPIL identifies ESG rating improvement involving DJSI, CDP and EcoVadis as another governance initiative. The company’s disclosed governance mechanisms support data collection and policy processes, but the presentation does not link the more than 15 cybersecurity sessions or ISO 37001:2016 certification to a quantified carbon outcome.

What ESG scores and rankings does KPIL report?

KPIL reports a score of 64 in the S&P Global Corporate Sustainability Assessment, a CDP rating of B and an EcoVadis score of 61. It also reports a CRISIL Core ESG rating of 61 for 2026 and an NSE Sustainability Rating 2026 score of 63 in the Industrials-Civil Construction sector.

KPIL says it was included in the Time x Statista Sustainability Ranking 2026 top 500 globally, as one of 19 Indian companies cited in that ranking. The presentation also says KPIL received the Mahatma Award for Sustainability from a pool of more than 2,100 applications and was second runner-up in the Sustainability Leadership Excellence Award at the Indian Chamber of Commerce’s 2026 event.

The ratings and recognitions sit alongside KPIL’s operational disclosures, including the 25% FY26 renewable-electricity share and the third consecutive year of Scope 1 and 2 neutrality for international T&D. The presentation does not provide prior-year scores for the S&P Global, EcoVadis, CRISIL or NSE measures, so period-on-period score changes are not disclosed.

Conclusion

KPIL has established a 2040 carbon-neutrality target and reports that it has completed Scope 1, 2 and 3 emissions estimation. Its disclosed operational measures include a 25% renewable-electricity share in FY26, solar installations at manufacturing plants in Gandhinagar and Raipur, two biomass-based renewable power plants, and a third consecutive year of Scope 1 and 2 carbon neutrality in international T&D.

The next measures to watch are KPIL’s progress toward its 2032 water-neutrality target, its 2035 construction-and-demolition-waste circularity target and its 2040 carbon-neutrality target. The presentation identifies decarbonisation plans, climate-risk assessment and KalpaSetu supplier work, but does not disclose interim emissions milestones, absolute emissions volumes or annual progress measures for those targets.