ReNew Reports Significant Reduction in Scope 1 & 2 Emissions
Indian renewable energy company cuts Scope 1 and 2 emissions by over a quarter
ReNew Energy Global has reported a 25.6% reduction in Scope 1 and 2 emissions against its 2021-22 baseline, beating its own target of 23.5% for the 2025-26 financial year. The company also generated 24.7 billion units of clean electricity during the period. For the sixth year running, ReNew has maintained carbon neutrality across its direct and energy-related operations.
The figures appear in the company's latest annual integrated report. ReNew measured the emissions drop against an SBTi-aligned baseline from financial year 2021-22. According to the company, the 25.6% reduction puts it ahead of its decarbonisation pathway. Meanwhile, the clean power generated was equivalent to supplying around 21.2 million households and avoiding approximately 20.8 million tonnes of CO₂ equivalent emissions each year.
These results build on earlier progress. In the 2024-25 financial year, ReNew reported an 18.2% reduction in Scope 1 and 2 emissions from the same baseline. The company also maintained carbon neutrality for the fifth consecutive year. The year before that, it reported roughly a 10% reduction alongside its fourth consecutive year of carbon-neutral status.
ReNew positions the latest figures within the context of significant operational expansion. During 2025-26, the company commissioned about 2.4 GW of renewable capacity, bringing its total operating capacity to approximately 12.6 GW. This growth helps explain the substantial increase in clean electricity generation and the emissions avoided, both of which ReNew describes as central to its net-zero strategy.
Six consecutive years of carbon neutrality verified through offsetting
The company emphasises that it has now achieved carbon-neutral status for six straight years across Scope 1 and 2 operations. Previous sustainability disclosures show that ReNew has used carbon credits to offset operational emissions in earlier periods. Independent verification has been part of this process in past years.
Carbon neutrality means balancing the emissions a company produces with an equivalent amount of carbon removal or offsetting. For energy companies, this typically involves purchasing verified carbon credits that fund emissions reduction or sequestration projects elsewhere. The approach allows businesses to claim net-zero emissions even while continuing to generate some direct emissions from operations.
ReNew's repeated carbon-neutral certification suggests a consistent approach to managing residual emissions. However, the real emissions reduction of 25.6% indicates that the company is also cutting absolute emissions rather than relying solely on offsets. This combination of actual reductions and offsetting is increasingly common among large energy companies working toward long-term decarbonisation targets.
Renewable capacity expansion drives clean power output and emissions avoidance
The 2.4 GW of new renewable capacity added in 2025-26 represents a significant scaling of ReNew's portfolio. Consequently, the company's total operating capacity reached about 12.6 GW by the end of the financial year. This expansion underpins both the higher clean electricity generation and the larger volume of emissions avoided.
ReNew describes itself as one of India's largest clean energy platforms. The company's portfolio consists primarily of wind and solar projects. As these projects come online, they displace electricity that would otherwise have been generated by fossil fuel plants. This displacement creates the avoided emissions that ReNew reports.
The 20.8 million tonnes of CO₂ equivalent avoided annually is calculated by comparing the emissions from ReNew's clean electricity with the emissions that would have resulted from generating the same amount of power using India's average grid mix. India's electricity grid still relies heavily on coal, so each unit of renewable electricity has a substantial emissions-saving impact. For context, the 24.7 billion units of clean electricity is roughly equivalent to the annual consumption of 21.2 million Indian households.
This scaling matters for India's overall decarbonisation efforts. The country has set ambitious renewable energy targets as part of its climate commitments. Large private-sector players like ReNew are critical to achieving those targets. The company's ability to commission new capacity at this pace suggests that it is well positioned to continue expanding its contribution to India's clean energy transition.
ReNew's emissions performance compared to previous financial years
Looking at the trajectory over recent years provides useful context. In 2023-24, ReNew reported a roughly 10% reduction in Scope 1 and 2 emissions from the 2021-22 baseline. The following year, 2024-25, saw an 18.2% reduction from the same baseline. Now, in 2025-26, the company has achieved a 25.6% reduction.
This progression shows accelerating emissions reductions year on year. The pattern suggests that ReNew's emissions intensity is falling as its renewable portfolio grows. Because renewable energy assets generate minimal direct emissions once operational, adding more capacity naturally drives down the company's overall emissions per unit of electricity produced.
The 2025-26 result also exceeded ReNew's own target of 23.5% for the year. Beating internal targets by this margin indicates that the company's decarbonisation efforts are ahead of schedule. This performance strengthens its position against science-based targets and long-term net-zero commitments.
For UK businesses tracking international sustainability benchmarks, ReNew's results illustrate how renewable energy companies can achieve substantial emissions reductions while growing their operations. The company's approach combines absolute capacity expansion with emissions-intensity improvements, creating a model that other energy firms in emerging markets may seek to replicate.
What ReNew's progress means for ESG reporting and investor confidence
ReNew's sustainability performance carries weight in ESG reporting and investor relations. The company's repeated carbon-neutral certifications and improving emissions figures provide tangible evidence of environmental progress. For investors focused on climate risk and transition opportunities, these metrics matter.
The 25.6% emissions reduction aligns with science-based target methodologies. These methodologies require companies to set emissions reduction goals consistent with limiting global warming to 1.5°C above pre-industrial levels. ReNew's SBTi-aligned baseline and its performance against that baseline suggest credible climate action.
Moreover, the company's clean electricity generation and avoided emissions figures help quantify its positive environmental impact. Investors increasingly want to understand not just how companies are reducing their own footprint, but also how their products or services contribute to wider decarbonisation. ReNew's avoided emissions of 20.8 million tonnes annually provide a clear answer to that question.
The combination of growing capacity, falling emissions intensity, and maintained carbon neutrality creates a compelling ESG narrative. This narrative supports ReNew's positioning as a significant player in India's renewable energy sector. It also differentiates the company in a crowded market where sustainability credentials are becoming a competitive factor.
For UK SMEs involved in international supply chains or considering investments in renewable energy projects, ReNew's approach offers a case study in scaling clean energy while managing emissions. The company's transparency in reporting both absolute emissions reductions and offsetting practices reflects the kind of disclosure that stakeholders now expect.
Key details from ReNew's FY 2025-26 sustainability performance
- ReNew Energy Global reduced Scope 1 and 2 emissions by 25.6% from its FY 2021-22 baseline, exceeding its target of 23.5% for FY 2025-26.
- The company generated 24.7 billion units of clean electricity during the financial year, equivalent to powering approximately 21.2 million households.
- ReNew avoided about 20.8 million tonnes of CO₂ equivalent emissions annually through its clean power generation.
- The company commissioned roughly 2.4 GW of new renewable capacity in FY 2025-26, bringing total operating capacity to about 12.6 GW.
- ReNew has maintained carbon-neutral status for Scope 1 and 2 operations for six consecutive years, verified independently and supported by carbon credits.
- Previous financial years showed emissions reductions of 18.2% in FY 2024-25 and around 10% in FY 2023-24, indicating accelerating progress.
How UK businesses can apply lessons from large-scale renewable energy reporting
ReNew's sustainability reporting offers practical insights for UK businesses, particularly those working toward net-zero targets or participating in tenders that require carbon disclosure. The company's approach demonstrates how to structure emissions reporting against a credible baseline and how to communicate both reductions and offsetting clearly.
First, ReNew uses an SBTi-aligned baseline from a specific financial year. This approach creates a fixed reference point that allows consistent measurement over time. UK businesses setting their own carbon reduction targets should consider adopting a similar methodology. A clear baseline makes it easier to track progress, report to stakeholders, and demonstrate compliance with requirements such as PPN 06/21 for public sector suppliers.
Second, the company reports both absolute emissions reductions and avoided emissions separately. This distinction is important. Absolute reductions show how a business is cutting its own carbon footprint. Avoided emissions show the wider environmental benefit of a company's activities. For example, a UK manufacturer switching to renewable electricity reduces its Scope 2 emissions directly. If that manufacturer also produces energy-efficient equipment, the emissions avoided by customers using that equipment would be a separate, additional benefit.
Third, ReNew's use of carbon credits to maintain neutrality while reducing absolute emissions reflects a pragmatic approach. Carbon offsetting is controversial in some quarters, but when combined with genuine emissions reductions, it can be part of a credible net-zero strategy. UK businesses should ensure that any offsets they purchase are verified, additional, and permanent. Transparency about offsetting practices is increasingly expected by investors, customers, and regulators.
Finally, ReNew's year-on-year improvement in emissions intensity shows how operational changes and investment in clean technology can accelerate decarbonisation. UK SMEs may not be adding gigawatts of renewable capacity, but the principle holds. Incremental improvements, such as upgrading equipment, switching energy suppliers, or improving energy efficiency, can compound over time to deliver significant emissions reductions.
For businesses involved in supply chains with sustainability requirements, understanding how large energy companies report their environmental performance is valuable. Many UK manufacturers and service providers supply companies that track Scope 3 emissions. Being able to provide clear, credible emissions data helps suppliers meet customer expectations and secure contracts.
Where to find further guidance on emissions reporting and net-zero strategies
The Science Based Targets initiative provides detailed guidance on setting emissions reduction targets aligned with climate science. UK businesses can access resources and methodologies through the SBTi website, which includes sector-specific approaches and criteria for validation.
For UK-specific carbon reporting requirements, the government's guidance on greenhouse gas reporting for businesses outlines the standards and methodologies required for compliance. This includes information on Scope 1, 2, and 3 emissions and how to calculate them.
Businesses supplying the public sector should review Procurement Policy Note 06/21, which sets out carbon reduction plan requirements for suppliers bidding on central government contracts above £5 million per year. Understanding these requirements is essential for maintaining eligibility.
Support with carbon reporting, net-zero planning, and sustainability compliance is available through our net-zero program, which helps UK SMEs develop credible carbon reduction strategies and meet supply chain sustainability requirements. Additionally, our compliance services provide practical assistance with ESG reporting and regulatory obligations.