Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Sustainability
• Employee Engagement
• Corporate Governance

Environmental Achievements

• Reduced specific coal consumption to 0.59 KG/kWh
• Specific oil consumption reduced to 0.13 ml/kWh
• Wastewater recycled - 0.25 million KL
• 1,914.17 TCO2e emission saved because of solar generation
• Afforestation: ~431 hectares and more than 2 crore mangroves planted (till date)

Social Achievements

• CSR spend of ` 17.91 crore
• 12,000+ CSR beneficiaries
• No community grievances or infringement of indigenous community rights reported
• Over 16,000 man-hours of training on improving safety during the year
• Distribution loss reduced by 1.6 p.p. post acquisition

Governance Achievements

• Implemented a strict policy for related party transactions
• Implemented an Integrated Management System (IMS) across operations
• No reportable safety incidents during the year
• Investment grade international credit rating (BBB-/Baa3) and AA+ domestic rating

Climate Goals & Targets

Environmental Challenges

• Right of Way (ROW) issues
• Scarcity of skilled manpower
• Attrition
• Scarcity of skilled contractors
• Regulatory policy change by government
• Migration of customers
• Deferment in tower testing schedule
• Realignment of lines due to other lines in the parallel route being under construction
• Lack of timely identification and completion of acquisitions or non-efficient integration of the businesses
• New players entering the transmission space
• Shrinking pipeline for TBCB opportunities
• Political stability in international markets
• Inflation risk
• Repatriation risk
• Foreign exchange risk
• Availability of skilled resources in international markets
• Visa rules for expats

Mitigation Strategies

• Administration help/support, relation building with local authorities, settlement of issues during project phases
• Creating bench strength, multiskilling and multitasking, retaining staff, capability building – periodic trainings and development, retaining ERS and hotline trained staff, culture building, right people at right job, employee engagement, career management
• Developing in-house capabilities, vendor development
• Timely intervention during draft policy/regulations
• Overall cost optimisation, incentive scheme for LECs and employees, value-added services to customers
• Supplier to supply stubs and carry out foundation activity before tower testing
• Complete engineering in the shortest time possible
• Proactively approaching companies to gauge their keenness for selling off assets, independent view for valuation of M&A activities, factoring in integration costs
• Cost optimisation in Procurement, Project Execution, Finance and O&M functions, innovative financing options
• Forward integration of EPC contractors
• Policy advocacy with the centre, states and regulators, awarding future transmission projects on the TBCB model
• Assessing political stability before entering foreign markets, factoring in costs pertaining to such risks
• Managing escalation through pass-through component in the contract or back-to-back contracting, considering cost in model at the bidding stage
• Undertaking investment only if repatriation is allowed, addressing changes in rules/laws in the contract
• Devising a suitable hedging strategy, accounting for hedging cost upfront
• Assessing availability of skilled resources before entering foreign business, looking at visa rules and costs of deputation

Supply Chain Management

Responsible Procurement

• Competence development of supply chain partners
• Clarity in terms and conditions
• HSE meetings
• Work environment – Guidance and co-ordination
• Emergency response drills related to quality and HSE at site
• Anti-corruption and ethical behaviour

Climate-Related Risks & Opportunities

Physical Risks

• Failure of major equipment due to natural calamity

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: International Integrated Reporting Framework, GRI Standards, AA1000AS (2008)

Certifications: ISO 9001:2015, ISO 14001:2015, OHSAS 18001:2007 (upgrading to ISO 45001:2018)

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

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 3 (Good Health and Well-being)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 13 (Climate Action)

Adani Foundation initiatives align with these SDGs through education, healthcare, sustainable livelihoods, and community infrastructure development programs

Awards & Recognition

• 13th State Level Energy Conservation Award – ‘Certificate of Merit’ in Transmission & Distribution Sector
• 7th FICCI Quality Systems Excellence Awards for Industry - AEML - Transmission conferred with the Platinum Prize (1st Prize) in Medium category in the Power Sector
• Times Ascent Human Capital Awards – Won awards in ‘HR Professional of the Year’ and ‘Young HR Achiever’ categories
• Compliance 10/10 Awards – Won award in Excellent Performers 2018 category
• Industry Excellence Award - Award conferred to ‘Dr. K. Rajamani - Chief Consultant, AEML’ in NPSC 2018
• Central Board of Irrigation and Power (CBIP) has recognised AEML as ‘Best Performing Utility having integrated operation in Generation, Transmission and Distribution’
• PublicAffairsAsia (PAA) Gold Standard Award for Corporate Citizenship (Community Relations)
• Banas Ratna Award
• Silver Award at the 53rd SKOCH State of Governance Summit 2018
• Indywood CSR Award
• Platinum Award to Senior Citizen’s Health Card Scheme of Adani Foundation at Mundra
• Kayakalp Award by the Health and Family Welfare Department, Government of Gujarat
• TMA -Terumo Penpol CSR Award 2018
• BSNL Dainik Jagran CSR Awards in the Health category
• Special Jury Recognition Award at the Indian Chamber of Commerce Social Impact Awards in Kolkata
• Commemoration certificate and certificate of merit for Best Vocational Training Provider (VTP) -Training by ASSOCHAM

Environmental Metrics

ESG Focus Areas

• Climate Change mitigation and adaptation
• Responsible business practices
• Human capital development and Human Rights
• Business Ethics and Values
• Safety and well-being
• Customer Orientation and Value creation for Stakeholders
• Inclusive Growth including communities
• Enterprise Risk Management
• Innovation and Technology
• Responsible business partnerships
• Water stewardship
• Zero waste to landfills
• Biodiversity conservation and natural resources optimisation

Environmental Achievements

• Received Single-use Plastic-Free certificate from CII for 3 substations (Mundra HVDC, Mahendragarh HVDC and Koradi SS) and Adani Dahanu Thermal Power Station of AEML.
• Adani Dahanu Thermal Power Station achieved certification for Zero Waste to Landfill (ZWL)
• Reduced GHG emissions intensity (on per ₹ revenue generation) by achieving 2.56 tCO2 /Lakh revenue in the last financial year.

Social Achievements

• CSR expenditure of ₹25.26 Crore in FY 2020-21, covering quality education, sustainable livelihoods development, health interventions and rural infrastructure.
• Implemented four special projects (Saksham, Swachhagraha, SuPoshan and Udaan).
• Appointment of women meter readers.
• Launched Women Skill Development Institute.

Governance Achievements

• Formalised an ATL-ESG Strategy and Steering Framework with the goal ‘To be in the top companies of the world in ESG benchmarking of electric utilities by FY 2022-23’.
• Implemented a Claw Back Policy.
• Made additional public disclosures in line with the expectations of prominent ESG evaluation agencies.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic affected capacity to commission projects on schedule and engage in on-site maintenance.
• Right of Way challenges during the construction of the 400 kV Badla-Fatehgarh line.
• Local terrain challenges during the implementation of the 765 kV Gathampur-Hapur line.
• Challenges when constructing the 765 kV transmission line connecting Noida with Agra.
• Soil challenges when implementing a transmission line from Roza to Badaun.
• Challenging hilly forest terrain in Jharkhand when implementing a transmission line from Karanpura to Chandwa.

Mitigation Strategies

• Ensuring employee safety through safety measures, social distancing and technology-driven remote engagement.
• Dialogue with farmers and invoking legal provision to resolve Right of Way issues.
• Responsible dialogues with stakeholders to address bottlenecks.
• Close collaboration with stakeholders to complete projects on schedule.
• Designing a raft foundation around a well point dewatering technology.
• Designing a line route map that minimised environmental and farm impact.

Supply Chain Management

Supplier Audits: 619/year

Responsible Procurement

• Supplier Code of Conduct
• Vendor agreements incorporating Anti-Corruption and Anti-Bribery Policy.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Cyclones
• Earthquakes
• Increased temperatures impacting transmission and distribution efficiency.

Transition Risks

• Pricing of GHG emissions
• Reducing GHG emission intensity
• Enhancing GHG emissions limiting and reporting obligations
• Shift to low carbon technologies
• Market disruptions affecting transition ability.

Opportunities

• Maximising renewable energy integration
• Implementing energy-efficiency initiatives
• Access to emerging markets through renewable energy mix
• Supporting customers by facilitating rooftop solar installations
• Commissioning EV charging stations.

Reporting Standards

Frameworks Used: IIRC, GRI Standards, TCFD recommendations, UNGC principles

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001, ISO 55001, ISO 27001, ISO 22301, ISO 27031, ISO 26000, SA 8000

Third-party Assurance: Deloitte Haskins & Sells LLP

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Initiatives contribute to these goals through renewable energy integration, waste reduction, and GHG emission reduction.

Awards & Recognition

• Single-use Plastic-Free certificate from CII
• Zero Waste to Landfill (ZWL) certification
• Best Asian Customers Engagement Award (YES program)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Community Development
• Safety

Environmental Achievements

• Reduced GHG emission intensity
• Increased renewable energy procurement to 8.6% in FY21-22 (targeting 30% by FY22-23 and 70% by FY29-30)
• Achieved Zero Waste to Landfill certification for 100% of O&M activities
• Rainwater harvesting of 9.7 ML
• Planted 2,48,71,217 trees

Social Achievements

• Launched Women Skill Development Institute
• Appointment of women meter readers
• CSR expenditure of ₹23.14 Crore (consolidated)
• Zero community grievances or infringement of indigenous community rights reported

Governance Achievements

• Established Sustainability and CSR Committee
• Implemented Clawback Policy
• Increased Board independence to 57%
• 29% of Board comprised women
• Adopted additional policies as per ESG norms

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on project timelines and supply chains
• Commodity price fluctuations
• Right of way issues
• Coal shortage leading to increased power purchase costs
• Partial grid disturbance in Mumbai

Mitigation Strategies

• Bridge finance for project delays
• Mix of fixed and floating price contracts
• Dedicated team for forest/wildlife clearances
• Cost control measures and optimized power purchase cost
• Power banking transactions
• Advanced technology and innovation for grid reliability

Supply Chain Management

Supplier Audits: 3,581 suppliers screened on ESG parameters; 3,581 audited

Responsible Procurement

• Supplier Code of Conduct
• Supplier Risk Assessment Scorecard
• ESG criteria incorporated into vendor selection

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Cyclones
• Earthquakes
• High temperatures impacting grid efficiency

Transition Risks

• Carbon pricing
• Increased renewable energy mandates
• Shift to low-carbon technologies
• Market disruptions

Opportunities

• Increased renewable energy integration
• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards, TCFD, UNGC, IIRC Integrated Reporting Framework

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001, ISO 55001, ISO 27001, ISO 22301, SA8000 (ADTPS and ATL)

Third-party Assurance: Deloitte Haskins & Sells LLP

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 13 (Climate Action)
• SDG 12 (Responsible Consumption and Production)

Initiatives aligned with renewable energy targets, GHG emission reduction, and waste management

Awards & Recognition

• Greentech Energy Conservation Award 2021
• National CSR awards 2021
• CII operation sustainability 2021
• International Achievers Conference 2021
• The Asset Triple A Sustainable Infrastructure Awards 2022
• Greentech Corporate Governance Award 2021
• Project Finance International’s Asia Pacific Indian Deal of The Year Award
• Greentech Transformative Human Resource Award 2021
• Green Tech Safety Award 2021

Environmental Metrics

ESG Focus Areas

• Climate Change
• Waste Management
• Biodiversity Conservation
• Occupational Health and Safety
• Sustainable Supply Chain
• Customer Centricity

Environmental Achievements

• Achieved 30.04% renewables in power mix
• Achieved Zero Waste to Landfill for all O&M sites
• Achieved SUP free status for the entire business
• 36% Reduction in total hazardous waste generation.

Social Achievements

• 206,332 hours of learning and development
• 9.5% Women in workforce
• 4.09 out of 5 Employee engagement score
• 7.3 Million lives touched
• Zero Cases of discrimination reported
• 87 New Suppliers Onboarded through ESG Screening
• Zero Cases of corruption and bribery reported

Governance Achievements

• Zero Instances of Data Breach
• Zero Breach of Code of Conduct

Climate Goals & Targets

Environmental Challenges

• Short-selling incident impacting reputation and FPO withdrawal
• Right of Way clearance challenges for transmission business
• Increase in data breaches and cybersecurity threats
• Climate change disruptions impacting transmission infrastructure and access to markets
• Policy and legal risks related to GHG emissions and renewable energy mandates
• Market disruption affecting transition to lower carbon economy
• Advent of new technologies requiring adaptation

Mitigation Strategies

• Comprehensive rebuttal and engagement with stakeholders
• Policy advocacy for pre-defined transmission corridors and land pipeline creation
• VAPT testing, IT training, cybersecurity policy implementation, BCP and DMP
• Investment in climate-resilient grids, Business Continuity Plan, third-party assessments
• Monitoring regulatory landscape, policy advocacy, GHG emission intensity reduction, renewable energy integration, energy efficiency initiatives
• Accessing emerging markets through renewable energy mix, rooftop solar installations, EV charging stations
• Implementation of new technologies across business functions

Supply Chain Management

Supplier Audits: 87 new suppliers onboarded through ESG screening in FY 2022-23; 100% of new suppliers screened using environmental and social criteria.

Responsible Procurement

• Supplier Code of Conduct
• ESG checklist for new suppliers
• Regular vendor performance evaluations and audits
• Support for suppliers in corrective action plan implementation

Climate-Related Risks & Opportunities

Physical Risks

• Flooding, cyclones, earthquakes

Transition Risks

• GHG emission pricing, increased reporting obligations, renewable energy mandates, market disruption, technological advancements

Opportunities

• Access to new markets with increased renewable energy mix, green tariffs, policy support for energy efficiency

Reporting Standards

Frameworks Used: GRI Standards 2021, UNGC Principles, UN SDGs, TCFD, IFC Performance Standards, WEF ESG metrics, SASB, CDP, DJSI

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001, ISO 55001, Zero Waste to Landfill, Single-use Plastic Free Company

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

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 11 (Sustainable Cities and Communities)
• SDG 13 (Climate Action)

Initiatives such as renewable energy procurement, waste management, biodiversity conservation, and community development contribute to these goals.

Awards & Recognition

• Global Sustainability Leadership Award
• Platinum award for Restoration Management
• Great Place to Work Certified
• CII Platinum Innovation Award
• Outstanding Achievements Award for Business Excellence
• Product Innovation Award
• Quality Improvement in Processes Award
• People First HR Excellence Awards
• Platinum award for Quality Management
• Emerging Company of the Year Award
• Greentech Intl. EHS Awards 2023

Environmental Metrics

ESG Focus Areas

• Climate Change
• Community Development
• Safety
• Renewable Energy
• Waste Management
• Water Management

Environmental Achievements

• 34.35% share of renewable power procurement
• Zero waste to landfill across all sites
• 23.87% reduction in GHG emission intensity
• 78% year-on-year reduction in hazardous waste generation
• 241.6 Ha of forest area avoided with route diversion & optimisation
• Compensatory afforestation over 753 hectare
• Water positive

Social Achievements

• 37,914 people helped with education, health and well-being, skill development and community infrastructure development
• 100% of consumer complaints resolved
• 101.01% collection efficiency
• AEML ranked #1 utility in performance ranking of power distribution companies for FY 2022-23
• AEML received the CII 2023 DX Award in the Best Practices category
• Zero workplace fatalities
• 16.25 crore spent on employee well-being initiatives
• 8% female representation in workforce
• 3,00,855 hours of learning and development

Governance Achievements

• Issued India's first energy bond with legal sustainability goals
• ESG score from Sustainalytics improves to 25.3 (as on February 2024 - Medium Risk) from 32.8 (as on April 2023 - High Risk)

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: 97.10% suppliers screened

Responsible Procurement

• 99.81% raw material procured from local vendors

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Single-Use-Plastic Free

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Golden Peacock Award in Environment Management (GPEMA)
• AEML ranked #1 utility in performance ranking of power distribution companies for FY 2022-23
• AEML, was rated ‘A’ in National Consumer Service Ratings by the Ministry of Power
• AEML received the CII 2023 DX Award
• Platinum Award for Occupational Health and Safety at the 8th Apex India Occupational Health and Safety Award 2023
• AEML was awarded “Excellence in Road Safety” and “Excellence in Innovation in Safety Technology” at the OSH India Awards