Sustainability Report 2015-16
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SUSTAINABILITY REPORT 2015-16 1 The Quest For A Brighter Tomorrow Contents For over a decade, Adani Power Consequently, showcasing greater The Lighthouse has energised India and fuelled transparency, setting higher 2 (CEO Speaks) development across the nation. standards of accountability and About the Report As India’s largest private power developing newer ways to operate 6 producer, we are conscious of the responsibly, are integral to our (From the CSO’s Desk) impact we have on the country’s growth. At the heart of our goals is a progress and the day-to-day lives deep commitment to the happiness Our Story 9 of our fellow citizens. This not only of our employees and stakeholders. makes us proud but also helps shape We consistently strive to ensure a Mapping the Quest 13 a brighter tomorrow. healthy and sustainable collaboration that contributes to rapid and Organisational Scale 15 In a multi-faceted, challenging and responsible national development. increasingly interconnected world, it Significant Developments in 16 is imperative to balance the impact Considering this, we have developed FY 2015-16 of business activities. Flourishing our second Sustainability Report Stakeholder Engagement & in such a climate requires focus, around the idea of a bigger, better 23 dedication, tenacity and awareness. and brighter tomorrow. ‘QUEST’ Materiality Assessment Our understanding and respect for is a part of our journey towards 31 the environment we operate in, excellence. The term ‘QUEST’ stands Strategy for Sustainability pushes us towards a quest for the for ‘Quality, Environment Protection socio-economic well-being of the & Energy Conservation, Safety and Governance for Sustainability 35 habitat and communities we occupy. Security in Totality.’ Operations & Economics 45 Human Capital 57 Health & Safety 67 Energy and Environment 75 Community Engagement 89 Adani Group Appendices 99 The integrated value chain of Adani Group has three components: Conversion Factors 101 Resources, Logistics and Energy. Adani Power is part of the Energy vertical. About the Cover Independent Assurance Statement 102 At Adani Power, we have always endeavoured to build value in everything we do. Given that GRI Content Index 105 our operations impact social and natural capital, Resources Logistics Energy this has not always been easy. However, in Mapping with National Voluntary We are the largest coal Our Logistics business Presently, we are in the 110 importer in India. We also includes Ports, Logistics and businesses of Thermal our commitment to investors, employees and Guidelines (NVG) communities, we have channelled our innovative operate mines in India, Special Economic Zone (SEZ). Power Generation, Power Communication on Progress and Mapping Indonesia and Australia as We have a pan-India presence Transmission, Renewable strengths to approach power generation in a 111 with UN Global Compact Principles well as engage in coal trading in 10 strategic locations with Power Generation and holistic and responsible manner. across countries. We are also our Mundra Port as India’s Solar Photovoltaics Mapping with Sustainable 117 planning expansion into Oil largest commercial port. Manufacturing. We are one Our 2015-16 Sustainability Report, recognises other Development Goals (SDG) and Gas Exploration. of the largest in all our such pioneers, who explored new frontiers and Mapping with International Finance Energy businesses in India. 125 effectively introduced a new normal. Essentially, we Corporation (IFC) We are also in the business are celebrating the pioneers we wish to emulate. of city gas distribution of CNG and PNG. Glossary 126 Adani Power Limited Sustainability Report 2015-16 The Lighthouse “In the first step towards agreements, uninterrupted domestic coal Jharkhand, Chhattisgarh and Odisha to (CEO Speaks) our ultimate goal of nation supply, water availability, safety in operations connect untapped coal belts to evacuate a building through power and land acquisition for new projects. potential 300 million tonnes of coal per year. generation, we plan to These three railway projects are expected meet the energy needs Our power plant at Mundra has been to be completed by December 2017. CIL is of a growing economy by supplying power to the states of Gujarat expected to increase its production generating 20,000MW and Haryana, fulfilling its power purchase to 1 billion tonnes of coal by 2020. In by 2020. While we focus agreement commitments in the interest of FY 2015-16, CIL recorded its highest-ever on what is to be achieved, consumers, despite financial stress due to incremental increase in production and this through this report, we the change in policy in Indonesia, resulting trend is expected to continue. With this would like to establish a in an unprecedented increase in the price increase in production, our domestic coal strong connect with our of imported coal. Appellate Tribunal of supplies at Kawai and Tiroda are expected stakeholders.” Electricity (APTEL), in its order dated to benefit. 7th April 2016 held that these issues constitute Force Majeure events under the In FY 2016-17, Tiroda plant suffered a Power Purchase Agreements (PPAs) and we generation loss for over a month due to are optimistic for an early resolution of this drought conditions sweeping Maharashtra matter. for the second consecutive year. We have started the creation of an additional water Under the Indo-Bangla Friendship Treaty reservoir within the Tiroda plant to mitigate of 2010, we are developing a 1,600MW such risks. For the community, we have also power plant in state of Jharkhand to supply commenced recharging of water resources power to Bangladesh. We have obtained by de-silting and cleaning of community the Terms of Reference for environment water ponds. clearances from Ministry of Environment, Forest and Climate Change (MoEFCC) and As these projects are still in progress, the Government of India and signed an we plan to quantify water credits as in-principle Memorandum of Understanding a percentage of total surface water (MoU) with Government of Jharkhand. withdrawals in the next reporting year. After successful acquisition of our Udupi In line with the target for surface water Power Plant, we are also expanding in Udupi consumption of 2.5 m3/MWh for hinterland by 1,600MW, for which an MoU has been power plants, we are on course to achieve signed with the Government of Karnataka, the same at Tiroda and Kawai and we look with land acquisition and environmental forward to improve our performance on this clearances underway. front. Additionally, this year onwards, we target to cap sea water drawl at Vneet S. Jaain Issues of rail connectivity and logistics 9.5 m3/MWh at Mundra which uses sea for domestic coal are being addressed by water based FGD and at 6 m3/MWh at Udupi Coal India Limited (CIL) in states such as which uses lime based FGD. Dear Stakeholders, growth opportunities in the power sector. Further, the Government has continuously It is my pleasure to present the second emphasised ensuring electricity availability Sustainability Report of Adani Power for all. Keeping this guidance in mind, we Critical aspects continue to be Limited. The report discloses our hope to build on our existing asset base sustainability performance on triple bottom of 10,480MW and reach 20,000MW of better returns to shareholders, line for FY 2015-16. As India’s largest installed capacity by year 2020. private power producer, we acknowledge fulfilling our obligations our responsibility in achieving sustainable During the reporting year, we generated growth. This report is a testimony of our 69.39 billion units of power, an increase of under power sale agreements, efforts in doing so during the reporting year, 27% over the previous year. We are pleased 27% and also presents a way forward. to report a consolidated net profit of `4.88 billion for the financial year. We During the reporting uninterrupted domestic coal With the Indian Government driving focus contribute nearly 15% of India’s total year, we generated on domestic manufacturing through its coal-based power generation capacity in 69.39 billion units of supply, water availability, safety ‘Make in India’ initiative, we are sure that the the private sector. Critical aspects continue power, an increase demand for power will be led by industrial to be better returns to shareholders, of 27% over the in operations and land acquisition consumers and this will set the tone for fulfilling our obligations under power sale previous year. for new projects. 2 3 Adani Power Limited Sustainability Report 2015-16 We contribute nearly 15% of India’s total coal-based power generation capacity in the private sector. Safety remains a major concern and a gives us a competitive advantage to National Action Plan on Climate Change. guidelines and our own treatment of ash material aspect for us. We are saddened to cultivate leaderships within the organisation Accordingly, we are exploring efficient as a useful resource, we have installed report 1 fatality at Udupi Plant during the to meet our growth plans. 800MW ultra-supercritical technology state-of-the-art ash disposal and bagging reporting year and a mishap units to fulfil our expansion goals. Our technologies. Our efforts have led to on 20th April 2016, which resulted in a We continue to partner with Adani direct GHG emissions sustained at 0.87 increased ash utilisation of 72.7% in the loss of 8 lives at the Mundra plant. Such Foundation to implement Corporate tCO2/MWh despite adding two sub-critical reporting year compared with 63.7% during incidents are reminders that our business Social Responsibility initiatives under units of 600MW. We are also comforted the previous year. Further actions to improve involves safety risks which need strong the core areas of education, sustainable that dedicated efforts are underway within our ash utilisation are detailed in this report. mechanisms for ensuring safer working livelihood, community healthcare and rural our Group to incorporate renewables as a conditions.