Material TopicBusiness Ethics and Transparency
GRI Alignment
GRI 205: Anti-corruption
GRI 2: General Disclosures (3. Governance, 4. Strategy, policies and practices)
SDG Alignment
Financial Implication
Strategic Priorities
Rationale for Identifying the Risk/Opportunity
Adani Energy Solutions operates within a complex and highly regulated environment. Two critical areas that significantly impact the Company's success and sustainability are business ethics and transparency, and corporate governance. These are material issues for Adani Energy Solutions given their profound influence on the Company's operational integrity, stakeholder trust, regulatory compliance, and overall corporate reputation.
Potential Risks & Opportunities and their Impact on Capitals
Risks
| Topics | Capitals Impacted |
|---|---|
| Lack of transparency can lead to corrupt practices and legal implications |
|
| Ethical breaches can erode stakeholder trust and damage the Company’s reputation |
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| Non-compliance with ethical standards can result in regulatory fines and operational restrictions |
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| Unethical behaviours can lead to internal conflicts and a toxic work environment |
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| Poor ethics can negatively impact market perception and investor confidence |
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Opportunity
| Topics | Capitals Impacted |
|---|---|
| Effective governance mechanism leading to increased transparency and disclosures |
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| Enhances the Company’s reputation as a responsible corporate entity |
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| Strong governance improves investor confidence, ensuring regulatory compliance and long-term financial growth |
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| Attract sustainability-linked investments |
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Actions to Mitigate Risks/Capitalise on Opportunities
- Strong corporate governance led by the Board with policies, codes, and KPIs for ethics and compliance
- Integrated frameworks ensure transparency, compliance, and ethical business practices
- Employee training on ethics, whistleblower mechanism, and third-party compliance audits
- Regular disclosures and continuous improvement of governance and ethics programmes
- Policies for anti-corruption, diversity, safety, and community engagement
Stakeholders Impacted
KPI's Mapped
- Training of Directors, employees and senior management personnel on Code of Business Ethics & Conduct and Whistle Blower mechanism
- Incidents related to the breach of code including corruption and bribery
- Incidents related to human rights violation
- Audits and third-party assessments
- Number of incidents reported through whistleblower hotline or reporting system
Material TopicSupply Chain Management
GRI Alignment
GRI 308, GRI 414
SDG Alignment
Financial Implication
Strategic Priorities
Rationale for Identifying the Risk/Opportunity
The supply chain encompasses the procurement, transportation, and management of the essential materials and components required for power T&D infrastructure. This includes everything from transformers and cables to substations and circuit breakers. A robust supply chain ensures that these critical components are available when needed, preventing delays in project execution and maintaining the reliability of the power grid. By securing a steady flow of high-quality materials, Adani Energy Solutions can minimise disruptions and enhance the efficiency of power distribution, ultimately lowering costs and making energy more affordable for consumers. Adani Energy Solutions can enhance energy affordability, support India's energy transition, and contribute positively to the community.
Potential Risks & Opportunities and their Impact on Capitals
Risks
| Topics | Capitals Impacted |
|---|---|
| Human rights violations in operations and supply chain |
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| Environmental and social impact of unsustainable sourcing |
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Opportunities
| Topics | Capitals Impacted |
|---|---|
| Boosting the local economy |
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| Enhancing efficiency and cost reduction through AI and IoT adoption |
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| Strengthening supplier relationships via sustainable practices and transparency |
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Actions to Mitigate Risks/Capitalise on Opportunities
- Assess human rights violations in operations and value chain partners
- Screen suppliers to prevent potential or actual negative impacts
- Build supplier capacity and support collective sustainability goals
- Analyse supplier spending and tier-wise distribution
- Conduct third-party value chain assessments
- Assist suppliers in implementing corrective action plans
- Leverage AI and IoT for operational efficiency and real-time decision-making
- Promote sustainable practices and transparent communication to strengthen supplier trust
Stakeholders Impacted
KPI's Mapped
- Number of new suppliers onboarded
- Number of suppliers screened using environmental and social criteria
- Supplier capacity building programmes
- Significant suppliers
- Procurement spends on local suppliers
- Tier-wise suppliers
Material TopicEconomic Performance
GRI Alignment
GRI 3-3, GRI 201
SDG Alignment
Financial Implication
Strategic Priorities
Rationale for Identifying the Risk/Opportunity
Economic performance is a material issue for Adani Energy Solutions due to its significant influence on the Company's operations, investment capabilities, and stakeholder relationships. By maintaining strong economic performance, Adani Energy Solutions can ensure financial viability, attract investors, support technological advancements, meet regulatory compliance, and enhance stakeholder value. This focus on economic performance not only supports Adani Energy Solutions business objectives but also contributes to India's broader energy transition and climate action goals.
Potential Opportunities and their Impact on Capitals
Opportunities
| Topics | Capitals Impacted |
|---|---|
| Investing in smart grid technology |
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| Expanding renewable energy integration |
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| Enhancing operational efficiency |
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| Establishing strong relationships with financial institutions and exploring innovative financing options such as green bonds can also support long-term growth |
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| Streamline operations, reduce costs, and improve decision-making |
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Actions to Mitigate Risks/Capitalise on Opportunities
- Leveraging digital transformation for asset management, customer engagement, and data analytics, to streamline operations, reduce costs, and improve decision-making
- Establishing strong relationships with financial institutions and exploring innovative financing options such as green bonds can also support long-term growth
- Collaboration with stakeholders, including government agencies, regulatory bodies, technology providers, and consumers
- By investing in smart grid technology, expanding renewable energy integration, enhancing operational efficiency, strengthening financial management, leveraging digital transformation, and collaborating with stakeholders, to achieve sustainable economic success
Stakeholders Impacted
KPI's Mapped
- Direct economic value generated and distributed
- Investment in Smart Grid network
- % Grid reliability
- Transmission network added
- Transmission operational EBITDA
- Distribution operational EBITDA
- Consolidated operational EBITDA
- Total revenue generated
- PAT
- Payment to government
- Wages and benefits given
- Payment to providers of capitals
- Community investments
Material TopicPublic Policy Advocacy
GRI Alignment
GRI 415
SDG Alignment
Financial Implication
Strategic Priorities
Rationale for Identifying Opportunity
Public policy advocacy is a material issue for Adani Energy Solutions due to its significant impact on the Company's operations, regulatory compliance, and strategic growth. By engaging in public policy advocacy, Adani Energy Solutions can influence regulatory frameworks, drive sustainability initiatives, ensure fair market conditions, and enhance stakeholder engagement. This commitment to advocacy not only supports Adani Energy Solutions business objectives but also contributes to India's broader energy transition and climate action goals. Ultimately, public policy advocacy reinforces Adani Energy Solutions dedication to operating responsibly and sustainably, ensuring long-term success and positive contributions to society.
Potential Opportunities and their Impact on Capitals
Opportunities
| Topics | Capitals Impacted |
|---|---|
| Implementing efficient procedures through research and policy initiatives |
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| Strategic communication to influence policymakers on ESG issues |
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| Collaborating with stakeholders to drive regulatory and legislative improvements for sector sustainability |
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| Addressing regulatory challenges |
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| Advocating for policies supporting T&D modernisation, renewable integration, and smart grid adoption to enhance efficiency and reliability |
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Actions to Capitalise on Opportunities
- Collaborate with academic, government, and private sectors to address public policy challenges
- Develop targeted communication strategies to influence policymakers and public opinion
- Establish stakeholder partnerships to drive beneficial legislative and regulatory changes
- Advocate for clean energy and efficiency regulations through joint government proposals
- Engage in workshops and seminars to educate policymakers on industry trends and advancements
- Partner with cybersecurity experts to develop and promote robust grid protection standards
- Provide feedback on existing regulations and propose process improvements to reduce bureaucracy
Stakeholders Impacted
KPI's Mapped
- Contributions to political parties, trade associations, tax-exempt groups
- Number of successful policy engagements per year
- Percentage of advocacy campaigns that achieve their set goals such as public awareness, policy changes, or stakeholder support
- Public Policy Awareness Programmes
- Environmental and social impact of policy advocacy initiatives
Material TopicGrid Resiliency
GRI Alignment
GRI 201, GRI 203
GRI 302, GRI 305
GRI 413, GRI 416
SDG Alignment
Financial Implication
Strategic Priorities
Rationale for Identifying the Risk/Opportunity
Prioritising grid resiliency is crucial for Adani Energy Solutions as it enhances operational stability, attracts investors, and ensures customer satisfaction. By investing in smart grid technologies, AI, and distributed energy resources, Adani Energy Solutions can improve real-time monitoring, optimise grid performance, and increase grid flexibility. This proactive approach not only secures financial stability by minimising costly outages but also strengthens Adani Energy Solutions' reputation as a reliable and innovative utility provider, thereby giving the company a competitive edge and fostering long-term sustainability.
Potential Opportunities and their Impact on Capitals
Risks
| Risks | Topics | Capitals Impacted |
|---|---|---|
| Operational Disruptions | Unanticipated disruptions can lead to service interruptions, affecting customer satisfaction and compliance with regulatory requirements. |
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| Technological Failures | Dependence on smart grid technologies and AI can be risky if these systems fail or are compromised, potentially leading to data breaches and operational inefficiencies. |
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| Financial Strain | High investments in grid resiliency may strain financial resources if not managed properly, affecting the company's overall financial stability. |
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| Regulatory Non-compliance | Failure to meet regulatory standards for grid resiliency could result in penalties and loss of operating licenses. |
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| Reputation Damage | Inability to ensure a resilient grid may damage Adani Energy Solutions' reputation, reducing customer trust and investor confidence. |
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| Competitive Disadvantage | Lagging in grid resiliency advancements could put Adani Energy Solutions at a competitive disadvantage, impacting market share and growth opportunities. |
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Opportunities
| Opportunity | Description | Capitals Impacted |
|---|---|---|
| Data Analytics | Monitor grid performance, predict failures, optimise maintenance |
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| Integrating RE Sources | Integrate wind, solar, hydroelectric power into the grid |
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| Smart Grid Technologies | Smart meters, sensors, automated control systems |
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| Microgrids | Develop microgrids, promote distributed energy resources |
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| Energy Storage | Invest in batteries, pumped hydro storage |
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| Cybersecurity | Implement measures to protect grid infrastructure from cyber-attacks |
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| Policy Advocacy | Advocate for policies and regulations promoting grid resiliency |
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| Community Engagement | Initiate programmes to involve local communities in grid resiliency |
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Actions to Mitigate Risks/Capitalise on Opportunities
| Risk | Description |
|---|---|
| Invest in Grid Resiliency | Implement advanced technologies and infrastructure to enhance grid resilience. Regularly update and maintain current systems to prevent outages and ensure continuous service. |
| Enhance Customer Communication | Develop transparent communication strategies to keep customers informed about reliability improvements. Foster strong relationships with stakeholders through open dialogue and regular updates |
| Strengthen Workforce Training | Provide continuous training programmes to enhance the skills of the workforce, focussing on new technologies and best practices. Encourage innovation and problem-solving within the team to address potential grid issues proactively |
| Leverage Technological Advancements | Invest in cutting-edge technologies to stay ahead of competitors in grid resiliency. Explore partnerships with tech firms to implement innovative solutions rapidly |
| Expand Market Presence | Use the strengthened grid resiliency as a selling point to attract new customers and markets. Highlight the reliability and efficiency of the grid in marketing campaigns to enhance brand image |
| Optimise Resource Utilisation | Maximise the use of financial, manufactured, and intellectual capital to support growth initiatives. Identify and leverage underutilised assets to improve overall operational efficiency. |
Stakeholders Impacted
KPI's Mapped
- Grid Reliability Index
- SAIDI : System Average Interruption Duration Index
- SAIFI : System Average Interruption Frequency Index
- CAIDI : Customer Average Interruption Duration Index
- Renewable Energy Penetration
- Infrastructure Investment in Grid Modernisation
- Recovery Time Post-Disruption
- Renewable Integration Capacity
- Cybersecurity Preparedness
