COURAGE TRUST SUSTAINABILITY REPORT 2014-15 COMMITMENT COURAGE. TRUST. COMMITMENT. ADANI POWER LIMITED SUSTAINABILITY REPORT 2014-15 1 ADANI POWER LIMITED SUSTAINABILITY REPORT 2014-15 CONTENTS OUR PRIDE About Adani Group 2 We began our journey in 2006. Since values, in turn, drive everything we do; We stand by our promises and adhere Vision, Values and Culture 9 then, we have made rapid strides in and are reflected in our actions day in to high ethical standards. This is About the Report 10 India’s power sector. We are conscious and day out. encapsulated by our motto: “Do what that energy remains a critical you say and say what you will do”. Courage requirement for the country’s economic We aim to be known for our scale of It helps us stay committed to our and infrastructure requirements. We, ambition, speed of execution and quality short-term and long-term objectives CEO’s Statement 14 therefore, take pride in our sustained of operation by taking on challenges and demonstrate high standards of CSO’s Statement 16 endeavours to contribute positively to and going the extra mile to find the professionalism. 18 Stakeholder Engagement & Materiality Assessment these sectors and to the nation as a right solutions. We take calculated Strategy for Sustainability 24 whole. We are focused on achieving risks in pursuing new and big business As we move closer to our ambitious sustainable growth and becoming a opportunities; and we own our decisions target of 20,000 MW by 2020, we are Trust globally-admired leader in integrated for outcomes with a long- term committed to ensuring minimal impact infrastructure businesses with a deep approach. on ecosystem and maximum social and Governance for Sustainability 38 commitment to nation building. economic benefits. We believe that 42 Ethics and Integrity We have deep faith in the capability of future generations have as much a right Compliance 44 As a fast-growing organisation, we have our employees and other stakeholders on the earth’s resources as we do. This Economic Performance 46 consistently re-calibrated our business and consistently empower them approach to sustainable development, Plant Efficiency 48 strategy in line with emerging realities. to deliver results that matter to our will guide us in the future. Fuel Security 52 We have faced several challenges in our business and to the nation. We interact Talent Attraction and Retention 54 journey, but those roadblocks have only with our stakeholders across multiple We are proud to showcase our first Occupational Health and Safety 60 served to enhance our resilience and touch points and integrate their insights Sustainability Report and invite your Supply Chain and Vendor Management 66 resourcefulness. into our blueprint for sustainable growth. inputs, as we aim to grow our business sustainably for today, tomorrow and We are passionate, result-oriented, beyond. Commitment integrated, dedicated and Environmental Performance 74 entrepreneurial. These characteristics – Water Availability 74 draw strength from our core values of – GHG Emissions 76 courage, trust and commitment. Our – Ash Management 78 – Managing Environmental Impact 80 Social Performance 82 – Community Engagement and Development 82 Security and Asset Protection 96 Conversion Factors 101 Independent Assurance Statement 102 GRI Content Index 105 NVG Mapping 111 Glossary 112 On the Cover At Adani Power, we recognise that our actions and operations have an impact beyond the obvious. The power we produce energises the nation and fuels development. We are a responsible member of our ecosystem and are cognizant of our duty towards all stakeholders and their aspirations. We conduct our business in a manner that creates a ripple effect of positive outcomes. 2 1 ADANI POWER LIMITED SUSTAINABILITY REPORT 2014-15 ABOUT ADANI GROUP Resources The Adani Group is one Largest private power producer The resources business deals with obtaining coal from mines and trading. In the of India’s leading business future it will also include oil and gas production. with installed houses with a revenue of over The Group is developing and operating mines in India, Indonesia and Australia. It is capacity of also importing and trading coal from many other countries. Currently, we are the US$10 billion. 10,480 MW as on largest coal importers in India. Our extractive capacity has increased threefold to 5 MMT in 2015 and we aim to extract 200 MMT per annum by 2020, making Adani March 31, 2015. one of the largest mining groups in the world. Founded in 1988, the Group has grown to become a global integrated infrastructure Largest coal player with businesses in key importer in India Logistics with 33%+ industry verticals – resources, The logistics business comprises of a large network of Ports, Special Economic market share*. Zones (SEZ) and multi-modal logistics – railways and ships. logistics and energy. The The Group owns and operates seven ports and terminals: India – Mundra Port, Dahej integrated model is well- Port, Kandla Terminal and Hazira Port in Gujarat, Dhamra Port in Odisha, Murmugaon Terminal in Goa and Vizag Terminal in Andhra Pradesh. Mundra Port, which is the adapted to the infrastructure Largest port largest port in India, benefits from deep draft, state-of-the-art infrastructure and SEZ status. It crossed the 144 MMT mark of cargo handling in FY 2014-15. The Group is challenges of emerging operator in India. also developing a terminal at Ennore in Tamil Nadu. economies. The Group has also made significant strides in the Energy agri-infrastructure business by The energy business involves power generation, transmission and gas distribution. setting up grain storage silos Adani is the largest private thermal power producer in India with an installed capacity of 10,480 MW including a 40 MW solar plant at Bitta, Gujarat. Four of our and cold storage facilities. We power projects are spread across Gujarat, Maharashtra, Karnataka and Rajasthan. are a market leader in edible We also provide a range of reliable and environment-friendly energy solutions in the oil business through our form of CNG and PNG. Fortune brand. * Including coal trading business 2 3 ADANI POWER LIMITED SUSTAINABILITY REPORT 2014-15 At Adani, we are constantly working towards nurturing development and growth of communities that host us. We recognise the importance of creating holistic growth for the society. Through the Adani Foundation, we ensure that development and progress is sustainable and inclusive; not just for the people living in these areas, but for the environment on the whole. We believe in delivering benefits that transcend our immediate stakeholders. From trading To infrastructure To integration Phase 1 Phase 2 Phase 3 We started in 1988 as a commodity trading Our second phase focused upon creating large We have connected the dots from firm. The Company quickly grew and diversified infrastructure assets. Phase 1 and Phase 2 to prepare the into the import and export of multi-basket Group for the next phase of growth. commodities. We established a portfolio of ports, power plants, mines, ships and railway lines inside and outside We are now embarking on the third In the 1990s, we developed our own port in India. At the same time, we earned a reputation and most exciting phase of the Mundra, India to provide a base for our trading for scale, efficiency and quality. Group’s development: an integrated operations. infrastructure business involving 2011 2012 resources, logistics and energy. Commissions With 4,620 MW the world’s capacity APL Mundra largest coal becomes the largest 2014 2015 terminal in thermal power plant Becomes the largest Becomes the Mundra with at a single location private thermal largest private 1988 2000 2011 60 MMT in India. power generator thermal power Starts as a commodity Forms Adani Dahej Port handling with 9,280 MW generator with trading firm Wilmar, a (currently 20 2013 2002 capacity 10,480 MW Resources means obtaining coal joint venture Mundra becomes the largest MMT) becomes Power generation capacity in edible oil private port in India with 4 MMT operational touches 7,300 MW from mines and trading; in future refining of handling capacity it will also include oil and gas production. 1998 2006 2009 Becomes the 11 Million MT of coal Largest coal importer top net foreign importer in IndIa in IndIa exchange earner for India 2013 Mundra Port 2014 2011 Wins container terminal becomes No.1 port Commissions India’s 2013 at Ennore Port in India Logistics denotes a large network largest solar power Commences of ports, Special Economic Zones plant with capacity domestic coal Acquires Dhamra Port of 40 MW mining (SEZ) and multi-modal logistics – railways and ships. Continues to be the largest thermal coal Importer In India 2011 1995 1999 2008 2010 Buys Abbot Point Port in Australia with 50 MMT of Expands Coal trading Buys Bunyu Mine in Achieves 2.2 MMTPA handling capacity into port commences Indonesia with edible oil refining Energy involves power generation & business; starts 180 MMT of coal capacity in India construction in reserves transmission and gas distribution. Mundra 4 5 ADANI POWER LIMITED SUSTAINABILITY REPORT 2014-15 1 Adani Power Limited Aim to develop 20,000 MW by 2020 Looking at the criticality of meeting the to be registered as a ‘Clean Development procedures, motivated team and a desire power requirement and its crucial role Mechanism (CDM) Project’ with the for trendsetting. Adani Power Locations in ensuring the energy security of India United Nations Framework Convention The Mundra power plant is the largest in 2006, Adani Group decided to extend on Climate Change (UNFCCC). It is our single location coal-based thermal its footprint into the power business. endeavour to empower lives with power power plant in India and one of the top Adani Power was listed through an that is accessible for socio-economic five in the world.