Impact

Risk: Adverse impact on ecosystem, air quality, agriculture, and human and animal health.

Mitigating Actions

• We continually adopt innovative technologies to optimally utilise coal and minimise air emissions
• We have also installed Flue Gas Desulphurisation (FGD) units across all operational plant sites

Possible Impact on Value (Capitals)

Expansion of thermal power and mining activities contributes to air pollution and can cause respiratory and cardiovascular diseases, leading to increased morbidity and mortality rates for people living in the communities and surrounding vicinity of the power plants.

Impact

Risk: Conversion of assets into stranded assets

Mitigating Actions

• We constantly integrate technology-based inventions and adopt relevant innovative energy solutions to ensure business continuity
• Our efforts are focussed on the preservation of our assets while improving operational efficiencies

Possible Impact on Value (Capitals)

Stranded assets in thermal power plants are those assets that are unable to earn their original economic return as a result of changes associated with the energy transition.

Impact

Risk: Pollution due to waste disposal. Moreover, accumulation of heavy metals/metalloids in the vicinity of the power plant, and changes in the characteristics of the soil.

Opportunity: Reducing the need for virgin materials through re-use

Mitigating Actions

• We recognise the importance of waste segregation from the initial stages, and our control measures ensure that relevant information is tracked until the final disposal stage
• We strictly abide by the prevailing regulations and policies which prevent pollution and encourage better waste management. Further, we constantly engage in research that promotes sustainable practices and remediate or manage soil contamination

Possible Impact on Value (Capitals)

Waste generated if not disposed of correctly may result in pollution of land, water, and air. It may also pose regulatory and reputational risks in the long term.

The reuse of waste as byproducts helps in effective waste management and reduces the effective need for virgin materials.

Impact

Risk: Change in land use patterns. Loss of habitat and degradation of the natural ecosystem.

Mitigating Actions

• Our policy ensures that we are committed to the ‘No Net Loss’ goal
• We have a formal biodiversity management system in place to ensure the conservation of biodiversity across all our operations and projects

Possible Impact on Value (Capitals)

The construction of thermal power plants and excessive infrastructure can alter local landscapes, affect communities, and impact biodiversity and natural landscape

Regulatory restrictions on land use impede expansion

Proactive restoration efforts mitigate losses

Impact

Risk: Increase in greenhouse gas emissions leading to climate change

Opportunity: Reduction of carbon emissions through shadow pricing

Mitigating Actions

We have a four-pronged strategy in place to mitigate the negative impacts of our operations on the environment and combat climate change: strict compliance to standards and regulations; continually measuring our footprint to establish realistic targets; integrating emission reduction technologies across our operations, and monitoring and reporting our performance and commitments.

Possible Impact on Value (Capitals)

GHG emissions from the operations can attract scrutiny from regulatory bodies, NGOs, and activists for contributing to global warming. This can negatively affect the Company's bottom line.

Shadow pricing enhances strategic planning and drives low-carbon investment, energy efficiency solutions, and innovative technologies, thereby changing internal behaviour and seizing low-carbon opportunities.

Impact

Risk: Violation of human rights principles impacting stakeholders and brand reputation

Opportunity: Reduced risks of human rights violations through policies

Mitigating Actions

Alignment with the human rights principles safeguards the employees and value chain partners, as well as protects the Company from any non-compliance concerning International and National Human Rights Standards.

Possible Impact on Value (Capitals)

Allowing child labour and forced labour or any other human rights-related aspects within the workforce may lead to statutory violations. Furthermore, any incidents of child labour or forced labour, human trafficking or other such incidents occurring across the value chain may lead to the deprivation of basic human rights.

Impact

Risk: Increase in hazards and accidents at the workplace workplace

Mitigating Actions

We have adopted and implemented the Adani Group’s Safety Management System to prevent work-related injuries and illnesses, minimise risks and uphold our commitment to a ‘Zero harm to life’ philosophy.

Possible Impact on Value (Capitals)

Increased investments in OHS measures

Higher safety standards improve operational stability and productivity

Impact

Opportunities: Reduced unplanned outages and downtime. Digitalisation helps reduce the frequency of unplanned outages through better monitoring and predictive maintenance, as well as limit the duration of downtime by rapidly identifying the point of failure. It can further help achieve greater efficiencies through improved planning, increased energy efficiency in power plants, and reduced loss rates in networks, as well as better project design throughout the overall power system.

Mitigating Actions

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Possible Impact on Value (Capitals)

Increased investments in cost and environment-efficient technologies

Plant modernisation and R&D improves efficiency, mining and supply chain operations, resulting in cost savings and sustainability

Impact

Opportunity: Long-term value creation through effective risk and crisis management practices. Risk management is the systematic process of identifying, assessing, and mitigating threats or uncertainties that affect an organisation. It involves analysing risks’ likelihood and impact, developing strategies to minimise harm, and monitoring measures’ effectiveness. When an organisation develops a risk management plan, it identifies risks across all attributes to devise a strategy to manage and mitigate them. This helps in increased preparedness and awareness about possible risks in the future while creating long-term value for the stakeholders.

Mitigating Actions

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Possible Impact on Value (Capitals)

Investments in enhancing business resilience and upgrading redundant systems

Improvement in risk mitigation capabilities and operational resilience

Impact

Risk: Threat to data safety due to potential lapse in IT systems

Opportunity: Earn the trust of employees and customers through enhanced IT security systems

Mitigating Actions

We have implemented SOPs and policies for conducting periodic internal and external (third-party) audits and tests to monitor the resilience of the IT infrastructure from hackers, cyber-attacks, malware, etc

Possible Impact on Value (Capitals)

Instances of information security breaches leads to the loss of sensitive data of customers including personal information.

Enhanced IT security and defence measures help Adani Power earn the trust of employees and customers, differentiate itself from competitors, and create a resilient foundation for long-term value creation

Negative publicity and increased media scrutiny results in a loss of stakeholder trust, reputation, and regulatory fines or penalties.