Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Sustainability
• Environmental Sustainability
• Social Sustainability
• Governance
• Safety

Environmental Achievements

• Increased ash utilization to 72.7% from 63.7% in the previous year.
• Maintained GHG emission intensity at 0.87 tCO2/MWh despite adding two sub-critical units.
• Implemented High Concentration Slurry Disposal (HCSD) system for ash handling to reduce water consumption.

Social Achievements

• Implemented various community development initiatives spending ₹37.7 million through Adani Foundation.
• Reached 50,000 youth with career guidance.
• Initiated programs for communities around Udupi plant.

Governance Achievements

• Complied with applicable requirements of Corporate Governance under Clause 49 of the Listing Agreement.
• Established a vigil mechanism for Directors and employees to report concerns about unethical behavior.
• Implemented an IT-enabled platform to capture sustainability performance.

Climate Goals & Targets

Environmental Challenges

• Financial stress due to non-resolution of compensatory tariff matter with power discoms.
• Increased price of imported coal due to policy changes in Indonesia.
• Shortage in domestic coal supply.
• Infrastructure bottlenecks in coal evacuation.
• Water availability during lean season at Tiroda plant.

Mitigation Strategies

• Engaging in forex hedging and executing forward contracts to combat price volatility for imported coal.
• Importing coal and filing petitions before regulatory commissions.
• Addressing rail connectivity and logistics issues with Coal India Limited (CIL).
• Creating an additional water reservoir at Tiroda plant.
• Recharging water resources by de-silting and cleaning community water ponds.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Pre-qualification of vendors
• Adherence to health, safety, and environmental norms
• Compliance with statutory requirements
• Vendor Relationship Management (VRM) system

Climate-Related Risks & Opportunities

Physical Risks

• Drought conditions
• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G4 Guidelines ‘In Accordance’ Comprehensive option

Certifications: ISO 14001 (all operating locations), OHSAS / IS 18001:2007 (all locations)

Third-party Assurance: DNV GL Business Assurance India Private Limited

UN Sustainable Development Goals

• Goal 1 (No Poverty)
• Goal 2 (Zero Hunger)
• Goal 3 (Good Health and Well-being)
• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 10 (Reduced Inequalities)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)
• Goal 17 (Partnerships for the Goals)

The report maps its initiatives to the relevant SDGs.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Kawai Power Plant won Safest Plant of the Year for the second consecutive year.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Fly ash utilisation of 93.2%, up from 87.9% the previous year
• Direct GHG emissions of 0.85 tCO2e/MWh
• Rainwater harvesting of 2.23 MCM

Social Achievements

• CSR expenditure of ₹20.70 million
• Employee attrition rate down to 6.45% from 8.38% the previous year
• 6.74 person-days of training per employee

Governance Achievements

• Established high standards of corporate governance in line with SEBI and the Companies Act, 2013
• Implemented an IT-enabled platform for mapping and regularly monitoring legal compliance
• No reported cases of corruption

Climate Goals & Targets

Environmental Challenges

• Shortage in domestic coal supply, partly due to delays in signing Fuel Supply Agreements (FSAs)
• Capacity utilisation at Tiroda and Kawai plants suffered due to coal shortage
• Land acquisition challenges for Jitpur coal block

Mitigation Strategies

• Coal supply under SHAKTI FSAs improved substantially in FY 2018-19
• Successfully tied up more than 95% of capacity in long-term PPAs
• Working with stakeholders to resolve land acquisition issues at Jitpur

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Pre-qualification of vendors
• Monitoring of vendor adherence to health, safety, and environmental norms
• Compliance with statutory requirements, including human rights

Climate-Related Risks & Opportunities

Physical Risks

• Reduced water availability due to change in precipitation rates
• Extreme weather conditions affecting fuel supply and grid infrastructure

Transition Risks

• Growing international commitments to contain global warming resulting in policy shift towards renewable sources

Opportunities

• Utilisation of ultra-supercritical units for upcoming TPPs to reduce GHG emissions

Reporting Standards

Frameworks Used: GRI Standards, Integrated Reporting (IR) framework, UN Global Compact, IFC Performance Standards

Certifications: ISO 9001, ISO 14001, OHSAS 18001, ISO 50001

Third-party Assurance: KPMG (in India)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through sustainable practices, community development, and emissions reduction

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Joint recognition from JUSE and QCFI

Environmental Metrics

ESG Focus Areas

• Climate change
• Energy transition
• Green hydrogen
• Renewable energy
• Water stewardship
• Biodiversity
• Waste management
• Employee well-being
• Workforce diversity
• Community engagement
• Corporate governance
• Supply chain sustainability
• Human rights

Environmental Achievements

• Reduced absolute GHG emissions by 12% compared to the previous year
• Reduced absolute water consumption by 12% compared to the previous year
• 6313 HA of mangrove afforestation and conservation
• 2685 HA of terrestrial plantations
• 97% recyclable material used in AWL's FMCG business
• 8443 MT of plastic waste collected under extended producer responsibility (EPR) by AWL
• 6 ports certified as zero waste to landfill
• 9 out of 23 AWL plants are ZLD
• 9 ports are SUP-free
• 7 operating locations of APL are SUP-free
• 100% of AGEL's operational plants are SUP-free
• MIAL (Mumbai airport) is SUP-free

Social Achievements

• 3.7 million beneficiaries in 2,409 villages across 16 States through Adani Foundation initiatives
• 80% satisfied customers at ATGL
• 92% satisfied customers at Adani airports
• Various initiatives for employee well-being, including emotional wellness programs and grievance redressal mechanisms
• Focus on workforce diversity and inclusion
• Implemented supplier engagement initiatives (Suraksha Samvad and Sampark) to promote safety and sustainability
• Fortune SuPoshan initiative addressing malnutrition and anemia in 1,065 villages, 129 slums, and impacting 1,08,132 children, 85,734 adolescent girls, and 2,22,675 women

Governance Achievements

• Established Corporate Responsibility Committees (CRCs) with 100% independent directors to oversee ESG performance
• Implemented robust risk management framework aligned with TCFD
• Zero non-compliance cases reported against corruption, bribery, and anti-competitive behavior
• Implemented a confidential whistle-blower mechanism

Climate Goals & Targets

Environmental Challenges

• Climate change impacts (extreme weather events)
• Water scarcity
• Greenhouse gas emissions from operations and supply chain
• Waste management
• Maintaining high safety standards across operations
• Ensuring responsible supply chain practices
• Meeting stakeholder expectations on ESG performance

Mitigation Strategies

• Investing USD 70 billion in green transition by 2030
• Implementing energy efficiency projects and transitioning to renewable energy sources
• Developing and implementing water conservation and reuse strategies
• Implementing zero waste to landfill and single-use plastic-free initiatives
• Establishing robust occupational health and safety management systems
• Developing and implementing a Supplier Code of Conduct
• Engaging with stakeholders through various channels to understand their expectations and address their concerns
• Implementing a robust governance framework aligned with best practices

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Sustainability requirements in procurement agreements
• Use of ARIBA portal for supply chain management
• Capacity building programs for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Storm surges
• Cyclones

Transition Risks

• Regulatory changes
• Market shifts
• Changes in energy prices

Opportunities

• Development of renewable energy projects
• Green hydrogen production
• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: BRSR (Business Responsibility and Sustainability Report), UN SDGs (United Nations Sustainable Development Goals), GRI (Global Reporting Initiative), CDP (Carbon Disclosure Project), UNGC (UN Global Compact), TCFD (Task Force on Climate-related Financial Disclosures)

Certifications: ISO 14001, ISO 45001, Airport Carbon Accreditation (ACA)

Third-party Assurance: Independent assurance on ESG-related disclosures by each business unit

UN Sustainable Development Goals

• Goal 1 (No Poverty)
• Goal 2 (Zero Hunger)
• Goal 3 (Good Health and Well-being)
• Goal 4 (Quality Education)
• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)
• Goal 17 (Partnerships for the Goals)

Adani Foundation's initiatives are aligned with various SDGs.

Sustainable Products & Innovation

• Green hydrogen
• Solar cells and modules
• Wind turbines
• Energy-efficient data centers

Awards & Recognition

• Numerous awards and recognitions received by various Adani companies are listed in the report.

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Climate Change
• Energy and Resource Management
• Emission Management
• Materials
• Water
• Waste
• Biodiversity
• Occupational Health & Safety
• Community Development
• Supply Chain Management
• Corporate Governance
• Responsible Business Conduct
• Economic Performance
• Human Rights
• Stakeholder Engagement

Environmental Achievements

• Successfully optimised and reduced auxiliary power consumption across various operational sites.
• 100% fly ash utilisation
• Received 2,10,839 energy saving certificates
• Reduced specific GHG emissions to 0.85 tCO2e/MWh for the past three financial years.
• Reduced NOx and SOx emissions by 4% and 6% respectively.
• 88% of power-generating units received certification for being single-use plastic-free.

Social Achievements

• Allocated ₹16.7 crores for CSR activities, benefiting local communities across three aspirational districts.
• Improved employee engagement scores through various initiatives.
• Zero cases of fatalities reported.
• Training coverage of 84%
• Spent over INR 90 Mn on sourcing raw materials from local vendors.
• Implemented several leadership training programs.

Governance Achievements

• Established robust governance frameworks and internal controls.
• Established a dedicated Corporate Responsibility Committee to address ESG issues.
• 50% of Board members are Independent and Non-Executive Directors.
• CEO compensation linked to both financial and non-financial KPIs, including operational considerations.
• Implemented a Clawback policy.

Climate Goals & Targets

Environmental Challenges

• Lower Plant Load Factor (PLF) achieved in FY 2022-23 (47.9%) compared to the previous year (51.5%).
• Short selling incident impacting reputation and FPO.
• Climate change risks (transitional and physical).
• Cybersecurity and data privacy risks.
• Fluctuations in raw material prices.
• High employee turnover rate (7.01% for permanent employees and 8.54% for permanent workers).

Mitigation Strategies

• Robust enterprise risk management (ERM) system in place.
• Comprehensive rebuttal issued to address short selling allegations.
• Implementation of risk management systems customized as per specific plant locations.
• Development of alternative sourcing strategies.
• Investment in technologies and process improvements to reduce resource consumption and enhance machine safety.
• Various employee engagement strategies to improve retention.

Supply Chain Management

Supplier Audits: 75 suppliers assessed; 100% of significant suppliers assessed.

Responsible Procurement

• Supplier Code of Conduct; ESG criteria incorporated in vendor onboarding process; sustainable sourcing practices; capacity-building programs for value chain partners.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events; rising sea levels; cyclonic surges; sustained temperature rises; change in weather patterns.

Transition Risks

• Emerging regulations; shift towards renewable energy sources; EU’s Cross Border Adjustment Mechanism.

Opportunities

• Development of energy-efficient products; ammonia co-firing; green hydrogen use.

Reporting Standards

Frameworks Used: GRI 2021 Standards, UNGC, UN SDGs, TCFD, IFC Performance Standards, SASB Standards, WEF ESG Core Metrics, CDP

Certifications: ISO 14001, ISO 45001, CII Single Use Plastic-free (SuPF)

Third-party Assurance: DNV Business Assurance India Private Limited

UN Sustainable Development Goals

• SDG 1, 2, 3, 4, 5, 6, 7, 8, 12, 13, 15, 16

Various initiatives aligned with these SDGs.

Sustainable Products & Innovation

• Ammonia co-firing; exploration of green hydrogen use.

Awards & Recognition

• B score from CDP for climate change and water security commitments; 3.5/5.0 in FTSE ESG rating; 59/100 in S&P Global CSA; 87% in CSR Hub ESG rating; Five Star Safety Certificate from British Safety Council; Shreshtha Suraksha Puraskar from National Safety Council; International SUDOMO Quality Leadership Award.

Environmental Metrics

ESG Focus Areas

• Occupational health and safety
• Biodiversity
• Regulatory Compliance
• Anti-Bribery & Anti-Corruption
• Human Rights
• Water Management
• Waste Management
• Energy and Emissions Management
• Modernization, Innovation and Resource Optimization
• Community Development
• Climate Change Adaption and Mitigation
• Economic Performance
• Plant Efficiency
• Business Continuity

Environmental Achievements

• 9 out of 10 power-generating units received single-use plastic-free certification from CII
• High Concentration Slurry Disposal (HCSD) system implemented at Tiroda plant for fly ash disposal
• Increased fly ash utilization and supply
• Installation of modified Haman blades in Kawai Cooling tower
• Variable frequency drives (VFD) at Raipur
• Installation of LED Lights at Mahan TPP

Social Achievements

• Various training programs for employees and workers on sustainability, inclusivity, mental health, and ethics
• Emotional wellness program launched as part of Adani Care
• CSR initiatives positively impacted 2,333,855 people
• 100% return-to-work rate and retention rate for employees on parental leave

Governance Achievements

• Corporate Responsibility Committee established, comprising solely of Independent Directors

Climate Goals & Targets

Environmental Challenges

• Extreme weather conditions
• Cybersecurity threats
• Growth of variable renewables and distributed energy resources

Mitigation Strategies

• Resource allocation
• Strengthening internal capacities
• Exploring new avenues
• Focus on people and the planet
• Investment in technology focused on improving environmental footprint

Supply Chain Management

Supplier Audits: 100% of critical suppliers assessed on predefined ESG parameters

Responsible Procurement

• Supplier Code of Conduct
• ESG aspects incorporated in supplier assessment scorecard
• Supplier screening and risk assessment program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: BRSR Core, BRSR reporting guidelines, Greenhouse Gas Protocol

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO 50001:2018, ISO 55001:2014, ISO 46001-2019, ISO 27031:2011, ISO 27001:2019, ISO 22301:2019, SA 8000

Third-party Assurance: DNV Business Assurance India Pvt Ltd

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Performance Excellence Awards from RBNQ BE Assessments