LatestCompany Registration 13 November 2026
India's Scope 3 Rule Threatens 90 Million MSMEs
A new study warns that India's move to mandatory Scope 3 emissions reporting could sideline more than 90 million micro, small and medium enterprises, as the compliance burden falls heavily on firms lacking the resources to measure and disclose indirect carbon footprints. The findings highlight the risk of widespread exclusion from supply chains and financial incentives unless support mechanisms are introduced.
India is pushing a Scope 3 emissions reporting rule that requires companies to track indirect carbon footprints across their supply chains. The new mandate is set to impact over 90 million MSMEs, many of which lack the data systems and expertise needed for compliance.
- Compliance cost: Small firms face high financial and administrative burdens.
- Risk of exclusion: Without reporting, MSMEs may lose access to contracts and financing.
- Call for support: The study urges government and industry bodies to provide technical assistance and simplified reporting tools.
If unaddressed, the policy could widen the gap between large corporates and the vast informal sector that drives India’s economy.
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