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Business
Study: Over 9 crore Indian MSMEs risk exclusion as Scope‑3 reporting expands
✍️ The Hawk
🗓 12 Nov 2026, 09:02 PM
👁 11
A recent study by The Hawk indicates that more than 9 crore micro, small and medium enterprises could be excluded as India tightens Scope‑3 emissions reporting requirements.
The Hawk has released a study warning that over 9 crore micro, small and medium enterprises (MSMEs) in India may face exclusion under the country’s expanding Scope‑3 emissions reporting framework. The analysis highlights that the sheer scale of the informal and semi‑formal business sector could leave a large share of enterprises without a clear pathway to comply with the new disclosure norms.
Scope‑3 emissions cover indirect greenhouse‑gas releases across a company’s value chain, including raw‑material sourcing, logistics and product use. As India moves to align its climate reporting with international standards, regulators are urging businesses to account for these indirect emissions. While large corporations have the resources to adopt sophisticated measurement tools, many MSMEs lack the technical capacity and financial bandwidth to gather the required data.
The study cautions that without targeted assistance, the reporting mandate could marginalise a substantial portion of the MSME ecosystem, potentially limiting their access to green financing and supply‑chain opportunities. Industry observers suggest that policy makers should consider phased implementation, capacity‑building programmes and simplified reporting templates to ensure that small enterprises are not inadvertently sidelined.
The Hawk’s findings come as the government prepares to roll out detailed guidelines for Scope‑3 reporting later this year, signalling a shift toward more comprehensive climate accountability across all sectors of the economy.
Scope‑3 emissions cover indirect greenhouse‑gas releases across a company’s value chain, including raw‑material sourcing, logistics and product use. As India moves to align its climate reporting with international standards, regulators are urging businesses to account for these indirect emissions. While large corporations have the resources to adopt sophisticated measurement tools, many MSMEs lack the technical capacity and financial bandwidth to gather the required data.
The study cautions that without targeted assistance, the reporting mandate could marginalise a substantial portion of the MSME ecosystem, potentially limiting their access to green financing and supply‑chain opportunities. Industry observers suggest that policy makers should consider phased implementation, capacity‑building programmes and simplified reporting templates to ensure that small enterprises are not inadvertently sidelined.
The Hawk’s findings come as the government prepares to roll out detailed guidelines for Scope‑3 reporting later this year, signalling a shift toward more comprehensive climate accountability across all sectors of the economy.