Led by our sustained focus on reducing the ecological impact of our business for the realisation of our 2025 Carbon Neutrality goal, we have pillared our climate strategy around:
This strategy is aimed at enhancing our operational resilience towards the climate change impacts. It also seeks to develop robust frameworks to integrate climate change considerations.
Given the heavy reliance of our business infrastructure on the sea, we have conducted a Climate Vulnerability Risk Assessment study. The study has identified Mundra, Dhamra, Hazira, and Krishnapatnam ports as being vulnerable to climate change-related risks. It has shown that the rise in sea levels due to global warming poses a significant threat to our port facilities, resulting in higher indirect costs, increased turnaround times, and reduced operational efficiency. It is imperative for us to take proactive measures to manage these risks effectively.
Through low carbon pathway commitments, reduce emissions in operations and supply chain
Enhance physical and strategic resilience of both our operations and key stakeholders
Develop a robust system to track and ensure integration of climate change in relevant business activities
We have adopted a well-defined strategic roadmap to drive our efforts towards Net-Zero by 2040 – a key goal of our climate strategy. The roadmap is structured around five levers, each of which complements and reinforces the other.
To ensure the effective implementation of our strategic roadmap, we are continuously investing in strengthening these levers. Regular assessment of the progress is undertaken, and the relevant strategies are adapted as needed. Stakeholder collaboration is another important driver of our strategy.
Our climate governance framework is headed by the APSEZ Board. Supported by Corporate Responsibility Committee (CRC), Corporate Social Responsibility Committee (CSRC), Stakeholders’ Relationship Committee (SRC) and Risk Management Committee (RMC), the Board monitors performance, adherence to the standards, and risks faced within the organisation.
With climate-related risks becoming important to our risk management process, we have put in place a systematic risk management approach as part of our climate governance framework.
Amid the growing global climate change crisis, the need for urgent and exhaustive action has become accentuated. The Paris Agreement, aimed at limiting the temperature increase to 1.5 degrees Celsius, as well as the COP 29, which underlined the need for collective and strong action towards the Paris Agreement goal, are aligned to the world’s battle against climate change. There is, globally, a growing demand by stakeholders to accelerate the climate change action and promote concerted efforts by governments, business and individuals to drive a sustainable future.
At APSEZ, we have prioritised climate action as a vital element of our sustainability agenda. Cognisant of the impact of climate change not only to our business but also the communities and the environment in which we operate, we pursue a clear climate strategy ensuring operational sustainability. It covers:
We are in the process of setting the emissions reduction targets for submission to SBTi for validation. As a leader in climate policies, we are confident in our ability to achieve net zero emissions ahead of the target set under India's Nationally Determined Contributions (NDC).
We encourage active participation by our stakeholders, including our employees, in our climate strategy. We offer them various climate-related incentives (financial and non-financial) for promoting actions that contribute to mitigating climate change and promoting sustainable practices.
The incentives are aimed at rewarding and recognising individuals or entities that demonstrate exceptional efforts in reducing greenhouse gas emissions, adopting renewable energy sources, improving energy efficiency, and promoting climate resilience.
We are cognisant of the potential impacts of climate change, including rising sea levels, changing weather patterns, and extreme weather events, on our operations. We undertake climate risk assessment to:
Systematically identify, evaluate, and mitigate potential risks associated with climate change to ensure the resilience of our operations and infrastructure.
Identify material, physical and transition climate-related financial risks and potential business impacts.
Identify, assess and manage short-, medium- and long-term risks, including climate-related risks, on an ongoing basis.
We rely on the guidance of the Task Force on Climate-related Financial Disclosures (TCFD) to manage and report on climate-related risks. TCFD provides a framework for categorising and addressing such risks. Following the TCFD recommendations helps in better understanding and managing the potential financial impact of climate-related risks on our business, and in developing suitable strategies to address them.
In pursuance of our climate risk process, we have undertaken qualitative and quantitative climate change scenario analysis. The analysis seeks to explore climate vulnerabilities to enhance our resilience to climate-related risks. The approach helps in assessing and understanding the potential impacts of climate change on various systems, such as ecosystems, economies, and societies.
We consider different climate change scenarios to understand and identify a wide range of possibilities, covering different levels of risk, uncertainty and volatility. This, in turn, enables us to ensure that our assets and operations are equipped and capable of managing climate-related risks effectively, and are also empowered to seize any resultant opportunities.
We have conducted climate-related scenario analysis on two scenarios: 2°C or below 2°C, and Above 2°C.
Acute (extreme weather events)
Chronic (changing weather patterns and rising mean temperature and sea
level)
Policy and legal Technology Market Reputation
As part of our Carbon Neutrality Roadmap to achieve net zero carbon emissions by 2040, we have set forth an emission mitigation plan, aimed at:
The leadership team, Board and relevant committees at APSEZ provide oversight of the Group’s principal risks and uncertainties annually. Our internal controls include policies, processes, management systems, organisational structures and standards to manage the various business and associated risks. The Group’s operational risk committee provides oversight of operational risk management for the Group, including risks related to climate change and sustainability.
We deploy an internal carbon pricing (ICP) mechanism to help minimise our GHG emissions by navigating and mitigating the potential financial impacts of the existing and anticipated GHG regulations. This helps in driving low carbon investments and energy efficiency within the organisation.
Prior to project implementation, we conduct a thorough evaluation of greenhouse gas (GHG) projects from a financial perspective
In case of high projected GHG emissions, we prioritise the assessment of better technologies that can help reduce emissions.
This enables our projects to not only meet the financial objectives but also contribute to environmental sustainability by actively seeking and adopting cleaner and more efficient solutions.
ICP is also used as a strategic tool to align with stakeholder expectations and catalyse behavioural changes within their operations.
We have implemented an internal carbon pricing mechanism, applying a price of USD 20 per metric tonne of CO2 equivalent (tCO2e) on all Scope 1 and Scope 2 emissions from our operations. We set aside an equivalent cumulative amount for investment in renewable projects and energy efficiency measures. As a result, in FY 2024-25, APSEZ generated a fund of USD 9.5 million through this carbon pricing measure.
In line with our commitment to contributing actively towards a low-carbon society, we offer our customers a range of sustainable solutions to help them reduce their carbon footprint. We are focussed on providing integrated logistics solutions to our customers, with the objective of enhancing the sustainability of our services. We aim to offer more sustainable transportation options to them, going forward.
In FY 2024-25, we used internal accruals and debt to invest ₹1,664 crore in projects related to procurement of new cranes, electrification of equipment, rail infra, energy efficiency, emission reduction, environment protection, water management, waste treatment and adaptation to climate change.
Total expenditure on environmental initiatives of which ₹512 crore was spent on renewable generation plant
Spent on Breakwater construction
