Aligning Priorities with Purpose

Impact Materiality and Capital Effects

• Rising GHG emissions aggravate climate change
• Reduced dependency on fossil fuels due to the cost-effectiveness of wind and solar plants

Financial Materiality and Capital Effects

Risk:

• Increase in operational costs and capex and reputational risks to ensure GHG compliance
• Damage to assets from extreme weather events

Opportunity:

• RE-focused regulations support new market entry and market share expansion
• Investment in R&D and Innovation enhances the cost-effectiveness, efficiency and reliability of RE technology

Business Strategy

• Advancing towards 65% EV adoption across the value chain by 2030, supporting manufacturing suppliers in setting net-zero targets and integrating an Internal Carbon Pricing (ICP) mechanism under the GHG Supply Chain Engagement Programme
• Using advanced bifacial modules/trackers technologies, digitalisation and ENOC to enhance efficiency
• Implementing climate scenario analysis and risk assessment recommendations

Impact Materiality and Capital Effects

• Circular economy reduces solar technology’s ecological footprint and improves resource efficiencies

Financial Materiality and Capital Effects

Risk:

• Inefficient waste management increases operating costs, reduces efficiency and enhances health, environmental, legal and reputational risks

Opportunity:

• Raw materials and cost optimisation from waste management and recycling, enhancing profitability

Business Strategy

• Strengthening waste governance and integrating circular economy principles
• Maintaining zero-waste-to-landfill and single-use plastic-free operations across all sites
• Action plan to reduce waste generation, supported by training employees in waste reduction and sustainable practices

Impact Materiality and Capital Effects

• Strain on the ecosystem and local communities from excess water usage
• Effective water conservation, recycling, and replenishment supported by robotic cleaning techniques can reduce freshwater withdrawal, ensure net water positive operations, and enhance reputation

Financial Materiality and Capital Effects

Risk:

• Net negative water usage can increase operational costs and reduce efficiency

Opportunity:

• Efficient water-management systems and robotic cleaning technology reduce water use, enhance conservation and recycling, and lower operational and litigation costs

Business Strategy

• Enhancing water management efficiency through assessment
• Deployed water-conservation technologies, rainwater harvesting and robotic cleaning techniques
• Achieve and sustain water positivity across all operations on portfolio basis

Impact Materiality and Capital Effects

• Large-intensive RE farms may cause habitat loss and natural ecosystem (flora and fauna) degradation

Financial Materiality and Capital Effects

Risk:

• Fines, litigation costs and reputation damage from non-compliance or natural habitat destructions

Opportunity:

• Implementation of biodiversity risk mitigation action enhances asset resilience, ensures uninterrupted operation and reduces remediation costs

Business Strategy

• Biodiversity Assessments as per the IFC PS and a structured LEAP methodology
• Installation of diverters, guards, insulation sleeves, cotton flags, and reflectors along the transmission lines to reduce electrocution risks among birds and bats
• Optimal reservoir placement and trap-and-haul programmes to prevent fish entrapment in the hydro PSP project turbines

Impact Materiality and Capital Effects

• Technological advancement can reduce environmental impact and create new jobs

Financial Materiality and Capital Effects

Opportunity:

• Advanced technologies boost efficiency and power supply, creating new business opportunities
• Innovations can reduce costs, enhance competitiveness, and drive long-term value creation

Business Strategy

• Deployed Centre of Excellence, automation projects, and advanced digital and analytics solutions to optimise O&M efficiency
• Established integrated RE platform with storage capabilities enabling reliable green power and C&I opportunities
• Unlock opportunities in hybrid power, two-way smart grids and backward integration

Impact Materiality and Capital Effects

• Workplace hazards can harm workers, contractors and communities, while also impacting employee morale and damaging reputation

Financial Materiality and Capital Effects

Risk:

• Fines, corrective action, settlement costs and productivity losses from safety incidents

Opportunity:

• Implementing automation and digital safety systems improves safety and operational performance

Business Strategy

• ISO 45001:2018 certified with rigorous health and safety standards, process and governance to ensure zero harm
• Ongoing safety performance assessments and audits for system improvement
• Digital tools, automation and video analytics for real-time safety monitoring and alerts

Impact Materiality and Capital Effects

• Excessive workloads and burnout can increase mental health challenges

Financial Materiality and Capital Effects

Risk:

• Mental health issues may lead to absenteeism, lower engagement and focus, reduced productivity and higher attrition

Opportunity:

• Support for mental wellness and stress management ensures a productive and loyal workforce

Business Strategy

• Wellness and care embedded into employee practices
• Adani Care programme offering confidential counselling and other emotional well-being support
• Dedicated policies for leave/parental leaves, flexible working hours
• Conducting sports, off-sites and recreational activities and sessions on mindfulness, yoga and stress management

Impact Materiality and Capital Effects

• Risks of child/forced labour, poor working conditions, discrimination and harassment can violate human rights

Financial Materiality and Capital Effects

Risk:

• Penalties, legal action, reputational risk, and reduced employee morale and productivity from human rights violations

Opportunity:

• Responsible workplace and human rights practices support social protection, enable personal development and provide physical and psychosocial protection; these enhance productivity and organisational resilience

Business Strategy

• Mature human rights practices supported by due diligence through the head office and sample site visits
• Conducting ESG valuation/screening of suppliers
• All sites assessed for child/forced labour, sexual harassment, discrimination, and wages
• Efforts to strengthen transparency, due diligence and grievance mechanisms for timely identification and resolutions of concerns

Impact Materiality and Capital Effects

• Effective talent management enhances productivity and performance, boosts employee morale and contributes to higher retention

Financial Materiality and Capital Effects

Risk:

• Inadequate training and poor workforce planning may constrain their skill development and create talent gaps, impacting organisational performance

Opportunity:

• Targeted training improves productivity and cost efficiency
• Filling workforce capability gaps through scenario analysis and need forecasting strengthens organisational resilience and future-readiness

Business Strategy

• Structured capability assessment and development planning to build a future-ready workforce
• Ongoing workforce needs assessment and organisational structure gap identification
• Aligning talent acquisition, development and retention with long-term business strategy

Impact Materiality and Capital Effects

• Transparency and ethical conduct strengthen stakeholder trust and brand reputation

• Unethical practices (corruption and bribery) erode goodwill, while anti-competitive practices threaten small producers

Financial Materiality and Capital Effects

Risk:

• Unethical practices may result in regulatory penalties, reputational damage, loss of business opportunities and elevated compliance costs

Opportunity:

• Robust regulatory standards, framework and processes and periodic audits strengthen risk management, safeguard operations and improve financial resilience

Business Strategy

• Adherence to Adani Code of Conduct (CoC) with zero tolerance for practices like bribery, corruption, illegal payments, etc.
• Regular stakeholder engagement for updates on performance and other material communication
• Policies to guide all business actions and whistleblower mechanisms to prevent unethical practices
• MySOPs application for managing and accessing process documents

Impact Materiality and Capital Effects

• Ineffective supply chain practices increase environmental and human rights risks and may impact communities and stakeholder trust

Financial Materiality and Capital Effects

Risk:

• Environmentally or socially irresponsible raw material sourcing can trigger community opposition, regulatory action, penalties and financial losses
• An inefficient supply chain may disrupt operations and increase costs

Business Strategy

• ESG evaluation of 100% critical/important manufacturing suppliers
• Integrating country, commodity, and sectoral risks in supply chain decisions

Impact Materiality and Capital Effects

• Robust governance practices and organisational culture strengthen trust among employees, customers and other stakeholders
• Independent and well-structured Board oversight safeguards stakeholder interests and improves the quality of decisions

Financial Materiality and Capital Effects

Risk:

• Ineffective governance framework may lead to corrupt practices, lower employee morale and financial penalties

Opportunity:

• Corporate governance ensures ethical and resilient value creation
• Oversight from independent directors supports objective decision-making and identification of long-term opportunities in the interest of all stakeholders
• A collaborative and transparent culture promotes knowledge-sharing and loyalty

Business Strategy

• Governance practices aligned with global frameworks, with ongoing improvements
• 50% independent directors on the Board and leaders with 30 years average experience
• “Your Voice Matters” employee feedback survey to reinforce culture, leadership effectiveness and strategic alignment