Transforming Future for a Sustainable Tomorrow

Edelweiss ESG CXO e-Series 25th March 2021 1 The Global ESG Context CONTENTS 2 ’s ESG Footprint

11 3 Redrawing our Strategy with Sustainability at the core

4 Our journey towards a Sustainable Tomorrow

5 Annexure The Global ESG Context Global Race for Net Zero Emissions

Carbon neutrality targets now covers 60% US rejoins the Paris Agreement of the world’s emissions EU ministers to agree to make climate neutrality by 2050 binding South Korea beefs up Climate goal amid mounting global pressure Japan pledges net-zero emissions by 2050 without clear roadmap China vows Carbon Neutrality by 2060 in Source: BNEF major climate pledge

India- only country among the G20 nations which is on track to achieve targets under the Paris Agreement

4 India leading the climate change agenda

Accounts for: • 17.7% of the world’s population INDIA • 7% of the world’s greenhouse gas emissions.

Nationally Determined Contribution (NDCs)

▪ India, only country among G20 nations on track to achieve targets under the Paris Agreement ▪ India has 3 quantitative goals for 2030; ▪ Reducing emission intensity of GDP by 33-35%; ▪ Achieving 40% cumulative electric power installed capacity from non-fossil fuel-based resources;

▪ Creating carbon sink of 2.5 to 3 billion tonnes of CO2 equivalent through forest and tree cover. (Source: Nov 2020 Climate Transparency Report) India to continue push towards Renewable Power growth to meet the Paris Agreement targets 5

Tata Power competitively placed in ESG Ratings

ESG Score-Reuters ESG Score-Bloomberg 57 70 62 60 52 55 56 47 47 60 54 51 50 44 45 44 51 48 48 49 43 50 44 40 42 40 35 40 32 31 30 30 25 30 21 21 20 20 10 10 0 0 Tata Power NTPC Powergrid Tata Power NTPC JSW Energy Powergrid 2017 2018 2019 2020 2017 2018 2019 2020

FTSE Global Comparison ESG Rating 2020 2019 5.0 4.3 4.0 3.6 3.7 3.5 CDP - Climate Change C D 3.1 3.4 3.0 2.6 2.5 2.2 2.0 2.3 2.2 CDP - Water Security C F (non- disclosure) 2.0 1.0 MSCI Rating BB BB - FTSE Russell 3.6 3.5 ESG Rating Env Social Gov Tata Power Industry Avg: Utilities Sub Sector: Conventional Elec But re-visited key material issues focusing on a “Sustainable Future” Material & Stakeholder Engagement Study for Tata Power - 2020

Increase in Resource Availability Waste Management Renewable portfolio (Coal & Water)

Carbon emission Operational Sustainable management Biodiversity Efficiency investment

3600 review of business impact on stakeholders, bringing ESG to the core of business strategy in line with commitment to Carbon Neutrality 8 Redrawing our Strategy with Sustainability at the core Tata Power 2.0 – Empower a billion lives through sustainable, affordable & innovative energy solutions

• No new coal-based capacity; phase out of coal-based generation completely • Selective waste heat based thermal generation through Group companies to be pursued • Achieve Carbon Neutrality by 2050

• Clean & Green Capacity to grow to ~ 60% by FY 2025 and 80% by FY 2030 driven by Renewable Energy – Solar as well as Hybrid assets to be the focus growth area

• Benchmark in water management in Indian utility sector and move towards water positivity • Scale Participatory Ground Water Management Program to Increase recharge of ground water level and ensure water availability for communities • Aim to achieve Zero Waste to Landfill - Benchmark in Waste and fly ash utilization

• Impact 30 Million lives positively • 10000 Microgrids • Customer focused New & Service led business models, focused on EV charging, Solar Rooftops, Solar pumps, Microgrids & Home Automation

Enter Dow Jones Sustainability Index Emerging Market List by FY 2025 10 Aiming for Sustainability leadership through UNSDGs

SDG Prioritization & SDG Mapping SDG Roadmap Classification

Business SDG

CSR SDG

Business-wise targets have been set for the prioritized SDGs to create a Roadmap 11 Our journey towards a Sustainable Tomorrow ENVIRONMENT PILLAR To re-draw Tata Power’s Sustainability Aspirations

Decarbonization Thought Leadership Circular Economy

Move towards WATER To become Become a GLOBAL NEUTRALITY/POSITIVITY & ZERO CARBON NEUTRAL by 2050 SUSTAINABILITY BENCHMARK WASTE TO LANDFILL

14 To be a Global leader on Utility Sustainability practices

2026 2030 2040 2050

Decarbonization • 12% reduction in Absolute • 20% reduction in Absolute • 35% reduction in CO2 emissions CO2 emissions Absolute CO2 emissions • 25% profits from low C • 50% profits from low • 75% profits from low Carbon Neutral business carbon business carbon business

Circular 100% Ground Water Economy Zero Liquid Discharge 100% Water Positive • 100% Water Neutral Recharge

100% Gainful • 100% Zero waste to Landfill- 100% Zero Waste to 100% Zero Waste to Landfill – utilization of waste/by- biodegradable waste Landfill non biodegradable/overall products

Thought • 50% score improvement - Leadership • EV100 Carbon Capture & ESG indices Utilization • RE100 • 50% Survival rate for Benchmark in Green Hydrogen Afforestation utility sector!

15 To Lead Utility transition to Clean Energy

2015 2021 2030 2040 - 2050

Clean Thermal Clean 16% 20% 31%

Thermal Thermal Clean 84% 69% 80% Clean 100% Evolving Generation Mix

• Largely Coal based capacity • Major capacity expansion • Phase-out of 930 MW of • Phase-out of all coal based expansion to meet growing of green field solar Trombay coal based generation energy demand in India capacity generation • Carbon Neutrality latest by • Inorganic growth thru • 2 GW p.a. renewable 2050 acquisition of Welspun growth plans plus M&As portfolio

16 SOCIAL PILLAR Social Impact envisaged

Impact 30 million lives

1. Access to Govt. Schemes - coverage of 60% HHs of addressable population in target regions Education & 2. Train 10,000 Trainers/Community Leaders to deliver blended Employability learning through Govt. schools/panchayats 3. Benefit 4 Lakh+ youth – directly & indirectly

Entrepreneurship 1. Build capacities of 25,000 SHGs & co-develop 10 unique & sustainable/ recycled products, services Empowerment 2. Facilitate scalability & regular business pipeline for SHGs

1. Tata Affirmative Action focus (SC, ST, differently abled, other

Outcomes over FY21 to 26 FY21 to over Outcomes disadvantaged groups – 30% within total outreach) Culture & Stakeholders 2. Gender diversity & Inclusion 3. 1 lakh+ volunteering hours p.a. across stakeholder groups 4. Safety as a core value GOVERNANCE PILLAR Robust Governance Structure in place

Shareholders

Board of Directors

Nomination and Stakeholders Risk Management Audit Committee Relationship CSR Committee Remuneration Committee Committee Committee GOVERNANCE POLICIES ❑ Tata Code of Conduct ❑ Risk Management Policy – ISO certified process ❑ Policy for determining Materiality for Disclosures ❑ Code of Conduct for Independent Directors ❑ CSR Policy ❑ Remuneration Policy for Directors, Key ❑ Code of Conduct for Non-Executive Directors ❑ Tata Code of Conduct for Insider Trading and Managerial Personnel and Other Employees Corporate Disclosure Policy ❑ Related Party Transactions Policy, Framework ❑ Charters of various Board appointed & Guidelines ❑ Dividend Policy Committees

❑ Whistle Blower Policy & Vigil Mechanism ❑ Policy for Determining Material Subsidiaries 20 Recognised for Best-in-class practices – CNBC TV18

FY-18 FY-19 FY-20

• Best Risk Management • Best Risk Management • Best Risk Management Framework & Systems – Framework & Systems – Power Framework & Systems – Power Power • Business Continuity • Risk Governance

21 Thank You! Website: www.tatapower.com Email Id: [email protected] Contact: +91 (0) 22 6717 1305

Disclaimer: The contents of this presentation are private & confidential. Please do not duplicate, circulate or distribute without prior permission. Annexures Climate Strategy benchmarked with global utilities

27 GW 55 GW 86 GW 104 GW 51 GW 23 GW

4% 2% 5% 13% 29% 7% 18% 65% 44% 34% 14% 49% 51% 47% 42% 43% 6% 33%

Present Present 73% generation 5% 16%

+700 MW All Coal and oil- -7 GW of thermal, Growth thru Innovation, new SBTi endorsed renewable till 2021 based plants have +14.6 GW Renewables, low technologies and a Carbon targets been closed. Renewable carbon energy; mix of clean (2015) for GHG

Focus on Focus Growth through Green Bonds sources of energy reduction renewables Renewables.

75% reduction by 50% reduction by 100% de- 100% low carbon Net Zero Carbon 90% reduction in 2030 and Carbon 2030 and Carbon carbonization of gas by 2050 by 2050 GHG, Net Zero

Carbon neutral by 2050 Neutral by 2050 energy mix by Emissions Targets on Targets 2050 24 Environmental Focus Areas Involving stakeholders in the Carbon Mitigation journey

Carbon Mitigation Framework to include the CO2 savings across stakeholder groups

SUPPLIERS BUSINESS EMPLOYEES CUSTOMERS COMMUNITY

• Encourage ESG • Stringent targets • Zero emissions • Quantification of • Scaling up Club disclosure for Tier-I for Carbon campus - EV for in- Carbon Savings Enerji as a Brand suppliers Intensity reduction campus (DSM, ESCO, New property (5-7%) Businesses) • Responsible Supply • Mobile app to • Quantification of Chain management • Focus on viable reduce travel • Green Power volunteering impact – ethics, technologies emissions Supply for environment, human ✓ Storage customers • E-Platform to rights, safety technology • Paperless office increase (hydrogen) • Digitalize customer afforestation ✓ Carbon processes (paperless numbers manifold capture/mitigation billing, Chatbot) Driving Customer centric climate initiatives

Demand Side Management (DSM) & Digitalization – Green Power solutions Energy efficiency programs Towards 100% paperless processes

70% customers use digital mode of payment Developing 225 MW hybrid renewables

16554 MWH saved through DSM in 3 years; ~25000 appliances exchanged

45000+ NACH consumers making e-payment Solar Powered call centre at Powai!

Energy efficiency programs for industries, commercial complexes and large societies World’s largest solar powered cricket stadium 50 tonnes of CO2 avoided per annum at Brabourne Stadium, Investing in Businesses of Future

EV Charging Rooftop Solar Utility Scale Storage Installed ~400 EV charging points Installed 464+ MW of Rooftop capacity touching South Asia’s Largest Grid-Scale Energy Storage in 65 cities 30,000+ customers across 100 cities System in India with Mitsubishi & AES

Tata Power Solar being ranked # 1 Solar Roof India’s first 10MW Grid-scale energy storage Presence in cities like Mumbai, Delhi, Pune, player for last six years by Bridge to India Kolkata, Hyderabad, Bengaluru, Chennai, paved way for ancillary market services, power Ahmedabad and Lucknow. Recorded highest ever order input of Rs quality management, effective renewable 860 Crores+ (~239MWp) in FY20 integration& peakload grid management 1 lakh Rs 5000 Cr revenue from Piloting Smart Grid Solutions EV charging stations by FY25 Rooftop Solar by FY25 Ecosystem Conservation efforts

TREE MITRA: Western Ghats Biodiversity Hotspot Grassland Ecosystem Conservation Large scale afforestation drive Conservation

• Impact of grassland on physical Over 3.5 Million trees planted till date • 50 years of Mahseer Conservation parameters affecting solar generation mitigating ~70k tCO2e/annum. efforts • Assessment of seasonal biodiversity Indigenous species selected with MoEFCC • 300 Fishery Scientists Trained (Flora & Fauna) to preserve ecosystems & improve survival • 5 Endemic and endangered species of • Replicability across growing solar rate. e-Platform under development to Orchids selected for multiplication footprint enable pledging for tree plantation during • 5 National Workshops held for • Identification of IUCN critically COVID19 Knowledge Exchange endangered and endangered species and conservation efforts SOCIAL THRUST AREAS Empowering consumers through Low Carbon Business offerings Microgrids Solar Pumps Clean Energy Incubation Centre TP Renewable Microgrid Ltd. launched Transition from diesel to solar powered Joint initiative of Tata Power, Tata Trusts on 4th Nov 19 agricultural supply & GoI

Tata Power has already installed 128 Micro- Solar power pumps supports field India’s first-of-its kind Clean Energy lab for grid sites in UP & Bihar irrigation and supplying potable water start-ups, entrepreneurs and innovators for communities, while drawing water offering complete “lab to market” Another 62 sites for microgrid are from underground multiple water incubation support to clean energy in pipeline. sources enterprises 10,000 Targeted installation of ~2.5 lakh Net-Zero Framework Assessment by Microgrids by FY27 pumps in FY26 RISE for avoiding emissions by 2030 CSR Flagship Initiatives - Empowering Communities

Community Welfare Existing Beneficiaries ( Coverage in Lakhs) Education | Health & Nutrition Financial Inclusivity 25.71

Community Empowerment Skills | Livelihoods | Income Generation 10.35 Water Security 7.15 Water Conservation and 3.53 1.62 Accessibility 0.16 0.43 0.67

Beneficiaries Males : 10+ lakhs Beneficiaries Females : 13+ lakhs Additionally impacting15.14 Lakhs people from defined CSR clusters COVID-19 INTERVENTIONS Focus on Women – 57% (9.48 L) & beyond regular CSR target clusters (5.66 L) Skilling Industry: Tata Power Skill Development Institute

TPSDI Beneficiaries International Award • Won Brandon Hall HCM Award – “Gold” under Best Advance in Tata Power Corporates & Unemployed Competencies and Skill Development Employees & CWF Utilities Youth category

Youth Trainings International Order • Trained 2706 Engineering students • Managed to achieve 69% of placements • Delivering International Assignment • Won the biggest Training Order – BIT-Sindri funded by MCC, Govt of USA for • Conducted highest number of Abha batches Liberia Electricity Corp. (LEC) worth Order value ~7 Crores INR

Launched Virtual Platform

Social Marketing • Launched Virtual Training Platform – TVAS (TPSDI Virtual Academy of Skills) • Conducted 5 Webinars that garnered • Launched TPSDI Mobile-App 12000+ registrations Promoting Gender Diversity at Tata Power

Gender Diversity YoY Women Officers as % of New Officers Enabling Framework Joined 12% 23% • Policies 10% 19% • Special sabbatical, Extended maternity leave, 8% 28% Adoption, Surrogacy leave 13% Gender Diversity • Flexible timings post maternity in Campus Recruitment • Performance rating protection during maternity • Childcare facilities: Creche & Nanny • Spouse & Ward Recruitment Policy FY19 FY20 FY21 FY 18 FY 19 FY20 • Development Programs Tata Power FY25 outlook: Improve overall gender diversity ratio to 18% • Women’s Mentoring Program • Returning Mother’s Coaching Program Engagement Score of Women Officers Women in • Tata group programs for women in middle and Senior 2% senior management Management 77% • 26% Tata SCIP (Second Career Innings Program) Middle 26% • Safety & Care 72% 72% Management • Special travel provisions for women employees

Junior 73% • Self-defence programs FY16 FY18 FY20 Management • Sensitization sessions on POSH • Gift hampers to celebrate motherhood Tata Power’s focus on Safety

Safety Aspiration: To be a leader in Safe Work Practices in Global Power and Energy Business

GLOBAL LEADER Improving Lost Time Injury Frequency Rate (LTIFR) 01 ✓Aspiration to be world class ✓Digitalization and New technology intervention

40

0.46 20% YoY reduction in LTIFR,

reduction in repeat 0.43

incidents and elimination of 0.36

SAFE WORK PRACTICES 29 high severity observations 30

0.30 0.27

✓Feel safe to work 0.26

02 ✓Taking safety to all stakeholders 20 0.21 Safety 16

✓Bring safety in the DNA of the organisation 0.17

Aspirations 0.12

10

8 8 0.13 9 2 2 SAFETY PERFORMANCE 1 0 1 0 03 ✓No harm / No injuries FY17 FY18 FY19 FY20 FY21 YTD ✓Benchmarked approaches LTIFR Target LTIFR Actual LTI Fatality

“Safety is a core value over which no business objective can have higher priority” GOVERNANCE PILLAR Best in class Risk Management Process

ISO 22301 :2012 Tata Power has been awarded ISO 22301:2012 for Societal Security and Business Continuity Management System from 2015 till date from British Standards Institution (BSI). 37 Best in class Risk Management

Tata Power has received copyright for it’s Risk Quantification Process as well as for the online Risk Management System.

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