2024-25 Integrated Annual Report

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ESG Approach

Goal-driven Commitments and strong governance

By embedding ESG values into our core, we not only act responsibly but also create a lasting value for our business and society, steering sustainable development towards a better future.

Our ESG Ambitions

ESG is Our Way of doing Business:

We aspire to be among the top 10 percentile companies in the global benchmarking of the electric utility sector by FY 2029-30.

We are the 1st electric utility company from India to join IRENA’s Utilities for Net ZERO alliance with the aim of spearheading the development of grids that are ready for renewable energy.

Aligning with UNSDGs

Business, Climate and Environment

Contribution to UNSDGs

Decarbonisation of Operations
  • Net Zero 2050 pledge
  • 72.7% Scope 1+2 GHG Emissions by FY 2030-31
  • 70% Renewable energy adoption by FY 2029-30
Decarbonisation for Customers
  • Promoting clean energy solutions and enabling our customers to achieve their decarbonisation goals
  • In progress: HVDC Transmission link for uninterrupted renewable power supply to Mumbai with commitment of USD 1 billion
Relevant SDG Targets
  • SDG 7 – Target 7.a, 7.c, 7.1, 7.2
  • SDG 9 – Target 9.4
  • SDG 13 – Target 13.2 and 13.3
Circular Economy
  • 'Water Positive’ and ‘Single-use-Plastic-Free (SuPF)’ status retained by all our sites in FY 2024-25
  • 99.4% of total waste generated was diverted from landfill
Relevant SDG Targets
  • SDG 6 – Target 6.3, 6.4, 6.5, 6.6
  • SDG 11
  • SDG 12 – Target 12.2, 12.4
  • SDG 13 – Target 13.1
  • SDG 15 – Target 15.1
Biodiversity
  • Advancing towards No Net-Loss to Biodiversity and Net Positive Gain (NPG) per IBBI 2.0 principles
Relevant SDG Targets
  • SDG 6 – Target 6.6
  • SDG 13
  • SDG 14 – Target 14.1
  • SDG 15 – Target 15.1, 15.5. and 15.9
Policy Advocacy
  • Influencing regulatory landscape for energy transition and innovation through government and industry engagement
Relevant SDG Targets
  • SDG 6
  • SDG 16 – Target 16.6, 16.7
  • SDG 17
Robust Governance
  • Sound corporate and ESG governance embedding vision, mission, policies and strategies at all levels in the organisation
  • Strengthening our enterprise risk and opportunity management for sustained economic value creation
Relevant SDG Targets
  • SDG 3 – Target 3.9
  • SDG 5 – Target 5.1, 5.5
  • SDG 8 – Target 8.5, 8.8
  • SDG 10 – Target 10.2
  • SDG 16 – Target 16.5, 16.6, 16.7, 16.10
  • SDG 12 – Target 12.6

Social Interventions

Contribution to UNSDGs

Working with Our Suppliers
  • Engaging with our suppliers and building capacities on ESG parameters for a sustainable value chain
Relevant SDG Targets
  • SDG 6 – Target 6.3
  • SDG 8 – Target 8.4
  • SDG 12 – Target 12.2, 12.5
  • SDG 13 – Target 13.1
  • SDG 15 – Target 15.1
Caring for Our People
  • Prioritising Zero harm and safety culture for our workforce and contractors
  • Targeted approach towards increasing women participation in the workforce and management roles
  • Offering opportunities for learning and development
Relevant SDG Targets
  • SDG 3 – Target 3.8, 3.9
  • SDG 4 – Target 4.3, 4.4
  • SDG 5 – Target 5.5
  • SDG 8 – Target 8.2, 8.5, 8.8
  • SDG 9 – Target 9.4
  • SDG 10 – Target 10.2, 10.3
  • SDG 13 – Target 13.1, 13.2
  • SDG 17 – Target 17.9, 17.17
Empowering Customers
  • Offering uninterrupted and clean energy to decarbonise consumer households
  • Giving customer greater control over energy efficiency management
Relevant SDG Targets
  • SDG 9 – Target 9.c
  • SDG 12 – Target 12.8
Empowering Communities
  • Improving learning outcomes in the primary schools
  • Empowering women and promoting self-reliance through sustainable livelihood initiatives
  • Improving healthcare access in the grassroot communities
  • Enhancing community development through infrastructure strengthening and sustainable initiatives
Relevant SDG Targets
  • SDG 1 – Target 1.4
  • SDG 11 – Target 11.3
  • SDG 17 – Target 17.17

ESG Framework

Guiding Principles and Disclosure Standards

Leadership Oversight

Policy Commitment

Read more on our website

Best-in-class Management Systems and Assurance

All the Operational Sites are Certified for

  • ISO 9001:2015 – Quality Management Systems (QMS)
  • ISO 14001:2015 – Environmental Management Systems(EMS)
  • ISO 45001:2018 – Occupational Health and Safety Management Systems (OHSMS)
  • ISO 50001:2018 – Energy Management Systems (EnMS)
  • ISO 55001:2014 – Asset Management Systems (AMS)
  • ISO 46001:2019 – Water Efficiency Management Systems
  • ISO 22301:2019 – Business Continuity Management Systems (BCMS)
  • ISO/IEC 27001:2022 – Information Security Management System (ISMS)

ISO 26000:2010 - Guidance on Social Responsibility

SA 8000 – Guidance on Social Responsibility and SA 8000 – Social Accountability @ ADTPS, WIP for Grid and Retail Electricity Division

Climate Change and ESG Governance

At Adani Energy Solutions, our climate change and ESG governance framework is headed by the Corporate Responsibility Committee (CRC) of the Board with 100% Independent Directors. CRC provides strategic guidance and oversight to the integration of sustainability commitments across the entire operations. This framework deploys sustainability processes, implements initiatives and monitors performance KPIs to ensure alignment with Adani Energy Solutions' climate change and ESG goals and targets. We adopt both top-down and bottom-up approaches to execute our ESG agenda at all levels.

Roles and Responsibilities at all Organisational Levels

Corporate Responsibility Committee and ESG Apex Committee of Board and KMP

  • Provide direction to climate change and ESG programme and oversee its implementation across all operations
  • Review and approve ESG-related public disclosures, including sustainability reporting

ESG Mentors (Senior Management)

  • Guide and provide insights to the ESG Core Working Group and ESG Champions
  • Hold quarterly reviews with ESG Champions to mentor ESG projects

Chief Sustainability officer and ESG Head (Senior Management)

  • Develop ESG disclosures and sustainability reporting
  • Facilitate ESG Project Champions for independent validation, audits and ESG assurances
  • Coordinate with the ESG Apex Committee annually or as needed

ESG Core Working Group (Functional Heads)

  • Identifies material issues and risk factors for ESG disclosures
  • Provides data, and inputs for ESG disclosure purposes
  • Engages with stakeholders including rating agencies
  • Develops short-term and long-term plans to achieve CRC’s and ESG Apex Committee’s vision

ESG Champions (Plant level SpoCs)

  • Lead ESG projects and hold monthly team meetings
  • Report the ESG project progress to the ESG Head periodically

ESG Goals, Targets and Performance Against Goals

ENVIRONMENTAL

Key Indicators Performance in FY 2024-25 Baseline Targets
Climate Change (Energy and Emissions)
Renewable Energy (RE) share in power procurement 35.2% 3% (FY 2018-19)
  • 60% by FY 2026-27
  • 70% by FY 2029-30
Auxiliary consumption through renewable sources 42.33% with in-house solar capacity + Green Tariffs 3% in FY 2019-20 with 1.7 MWp in-house solar capacity 100% by FY 2029-30
Reduction in GHG emissions (Scope 1 & 2) 45.1% w.r.t. FY 2019-20 0% in FY 2019-20 72.7% by FY 2030-31
Reduction in value chain emissions (Scope 3) 42% w.r.t. FY 2020-21 0% in FY 2020-21 27.5% by FY 2031-32
Reduction in GHG emission intensity (Scope 1+2, for AEML - Retail division of the Company) 69.7% w.r.t FY 2018-19(683 tCO₂e/EBITA) 2,254 tCO₂e/EBITA in FY 2018-19
  • 40% by FY 2024-25
  • 50% by FY 2026-27
  • 60% by FY 2028-29
Reduction in energy intensity 82.8% w.r.t FY 2019-20(82.87 GJ/million ₹ revenue) 481.63 GJ/million ₹ revenue in FY 2019-20
  • 50% by FY 2026-27
  • 90% by FY 2029-30
Water
Water positive sites (%) 100% for all operational sites Zero in FY 2019-20 100%
Waste
Zero Waste to Landfill (ZWL) Certified Sites 100% for all operational sites Zero in FY 2019-20 100%
Single Use Plastic (SuP) Free Sites 100% for all operational sites Zero in FY 2019-20 100%
Biodiversity
Area covered under compensatory afforestation Over 1,198 ha 289 ha in FY 2020-21
  • Achieve Zero Net-Loss to Biodiversity
  • Achieve Net Positive Gain (NPG) as per IBBI
Tree plantation 6,24,000 trees 20,448 trees in FY 2021-22
  • Plant 6.24 million trees by FY 2029-30

SOCIAL

Key Indicators Performance in FY 2024-25 Baseline Targets
Health and Safety
Fatality rate due to work-related injury (employees and contract workers) per million hours worked 1 (Contract worker) Zero in FY 2020-21 Zero
Rate of recordable work-related injuries (employees and contract workers) per million hours worked 0.01 0.33 in FY 2020-21 Zero
Average number of hours of health & safety training per person 13.75 15.6 in FY 2020-21 Improve from the baseline
Human Rights
Business and value chain partners covered through due diligence (%) 100% New suppliers onboarded - 100%
Employees trained 60% - 100%
Training and Development
Expenditure on skill training and development ₹4.99 crore ₹3.81 crore in FY 2020-21 ₹4.69 crore
Diversity & Inclusion
Women in workforce 5% 5% in FY 2020-21 6% by FY 2024-25
Women in new hires 7% 5% in FY 2020-21 30% by FY 2024-25
Mapping & disclosure of regional & ethnic diversity of employees 100% mapped No mapping done 100% mapping to be done
Responsible Sourcing
Proportion of spending on local suppliers (%) 98% 99.4% in FY 2020-21 Maintain baseline performance
Suppliers screened on ESG criteria (%)
  • 100% all new suppliers screened
  • 100% all critical suppliers assessed
 100% for critical new suppliers in FY 2020-21 100% for all critical suppliers
Supplier due diligence (%) ESG due diligence initiated for all suppliers Done only for limited suppliers until FY 2024-25 100% by 2030

GOVERNANCE

Key Indicators Performance in FY 2024-25 Baseline Targets
Board Diversity and Independence
Women Directors on the Board (%) 33.3% 16.6% in FY 2020-21 At least 1 woman director on the Board
Independent Directors on the Board 50% 50% in FY 2020-21 Maintain a minimum one-third of the total number of directors
Business Ethics and Integrity
Number of cases related to breach of Code of Conduct, including corruption & bribery and anti-competitive practices Zero Zero Zero
Governance Body members and employees trained on anti-corruption 100% 100% 100%

ESG Ratings

Indices 2021 2022 2023 2024
CDP Climate Change
CDP		 D D B B
CDP Water Security
CDP		 Did not participate Did not participate B
(1st year)		 -A
(2nd year)
CDP Supplier Engagement Rating
CDP		 -C B B Results awaited
S&P Global CSA
with MSA
S&P		 63 59 62 73
S&P Global CSA
without MSA
CDP 		63 63 68.5 80.8
FTSE Russell
S&P		 3.1 3.3 4.0 4.4
CSR HUB
CDP		 80 83 86 88
MSCI
S&P		 BBB BBB BBB BB
SUSTAINALYTICS
CDP		 26.8 35.3 32.8 27.9

We are advancing our commitment to delivering sustainable and reliable power solutions by integrating smart metering technologies with our traditional T&D operations. The innovations in smart metering solutions are vital in reducing the carbon footprint and enhancing energy efficiency across millions of consumer households through eco-conscious energy management. We invest in continuous learning, development and skill upgradation of our employees to ensure they excel the complexities of our industry. We actively build synergistic collaborations with government bodies, industry partners, and local communities to amplify our impact. Employee safety and well-being is one our key priorities towards sustainable operations. We are committed to spearheading our operations with integrity, innovate with purpose, and build a sustainable future for all.

R. N. Shukla Head - Environment & Forest

Awards and Recognitions

  • CII's Climate Action Program (CAP 2.0°) award 2024 under Resilient (highest) category
  • Ranked 23rd (up from 45th in 2023) in Business World - India's Most sustainable companies 2024 (AESL)
  • Ranked 2nd (up from 3rd in 2023) in Energy & Mining sector of Business World - India's Most sustainable companies 2024 (AESL)
  • Ranked 1st for the third consecutive year and recognised as India's top power utility by the Ministry of Power (MoP) - 13th Integrated Rating and Ranking of Power Distribution Utilities (AEML)
  • OHS Indian 2024 Award for “Excellence in Occupational Health and Safety Management System - Technology and Services” category - 10th Edition of OSH India Awards (AEML)
  • Silver Certificate by Arogya World in the “Healthy Workplace” category for prioritising employee health and well-being, in line with the WHO standards (AEML)
Business segment review
Environmental