Sustainability Performance and Value Creation Report 2018-19 INDEX
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Power RIGHT FUTURE Adani Power Limited Sustainability Performance and Value Creation Report 2018-19 INDEX RIGHT FUTURE FY 2018-19 Highlights 2 India’s energy industry is undergoing a transition, driven by Company Overview 4 the government’s initiatives to boost the power sector and CEO’s Statement 6 reduce the nation’s dependence on fossil fuels. In this evolving CSO’s Statement 8 operating landscape, Adani Power Limited (APL) has not only stayed resilient but has also grown stronger, which testifies to Governance 10 its business model’s ability to create sustainable value. Risk and Opportunities 14 At APL, sustainability is the utmost priority. We diligently Stakeholder Engagement 16 follow responsible Environmental, Social and Governance Materiality Assessment 18 (ESG) principles and have implemented effective corporate Operating Context 21 governance, robust risk management and stringent safety measures across our operations. We are confident that our Business Model 22 conscientious efforts today will pave the way for a Financial Capital 24 B‘RIGHT’ FUTURE. Manufactured Capital 28 Social & Relationship Capital 32 A future where our environmental footprint is minimal. Human Capital 36 A future where we exceed customer expectations, everyday. A future where we empower communities in India. Intellectual Capital 42 Natural Capital 46 Our Sustainability Performance and Value Creation Report Conversion Factors 52 2018-19 outlines our constantly evolving business approach to Assurance Statement 53 continued progress towards a B‘RIGHT FUTURE’. Mapping with GRI Standards and 57 Other Frameworks About Adani Group Approach to Reporting Group Overview through its CSR programme, based on the Businesses About the Sustainability For comparative analysis of the and can impact our value drivers, such The Adani Group is an integrated business principles of sustainability, diversity and Agri Logistics Performance and Value Creation sustainability performance, we have as operational efficiency, human capital conglomerate in India which consists of six shared values. Bunkering Report showcased performance for a period of and brand. These topics direct our publicly traded companies with combined This Report presents the sustainability minimum three years. strategic planning and management Group Vision Coal & Mining revenues of $13 billion. performance and value creation story priorities towards achieving the end To be a world-class leader in businesses Scope and Boundary Defence & Aerospace of APL on material topics spanning goal of long-term sustainable value for Founded in 1988, Adani Group has that enrich lives and contribute to The scope of the Report includes – under Edible Oils & Food six capitals — Financial, Manufactured, our stakeholders. The Report lists the grown to become a global integrated nations in building infrastructure through construction, planned and operational Financial Services Natural, Human, Intellectual, and Social identified material issues and covers infrastructure player with businesses in key sustainable value creation. power plants of APL. Our internal aspect & Relationship — with the objective of information on them. industry verticals - Resources (coal mining Gas Distribution boundary includes thermal power plants Growth with Goodness disclosing the ESG performance of the and trading), Logistics (ports, logistics, Housing Finance and the solar plant at Bitta, Gujarat. It Board Responsibility Scale denotes growth. To us, scale is not Company in line with the Integrated shipping and rail), Energy (renewable and Industrial Land also includes its subsidiaries, Adani Power Through resolution of the Board of just about the businesses we are in. It is Reporting <IR> framework. Global thermal power generation, transmission Mundra Ltd.’s plant at Mundra (Gujarat), Directors, the responsibility for extra- also about the influence and the change Logistics Reporting Initiative (GRI) Standards have and distribution), Agro (commodities, edible Adani Power Maharashtra Ltd.’s plant financial disclosures has been delegated we can spur, our lives we can touch, the Ports & Terminals been referenced to adopt measurable oil, food products, cold storage and grain at Tiroda (Maharashtra), Adani Power to the CEO. All strategic and operational communities we can enrich, the businesses Power Distribution performance indicators and indexing of silos), Real Estate, Consumer Finance and Rajasthan Ltd.’s plant at Kawai (Rajasthan) responsibilities, including sustainability we can propel, and the future we can contents for disclosures across six capitals. Defence. The integrated model is well Power Transmission and Udupi Power Corporation Ltd.’s performance and value creation, are inspire. We have been able to disseminate The content of the Report has been guided adapted to the infrastructural challenges Real Estate plant at Udupi (Karnataka). Corporate executed by the CEO of APL. For integrity this goodness by leveraging the size of by the reporting principles for <IR>. This of the emerging economies. Renewable Power Generation office at Ahmedabad (Gujarat) and under and development of the contents of our operations in multiple nation-critical is also our communication on progress construction Thermal Power Plant (TPP) the report, the Sustainability Reporting With expanding global footprints across sectors. We have consciously extended our Solar Manufacturing in implementing the principles of the of Adani Power Jarkhand Limited at Team at all operating locations and at Australia, Bangladesh, China, Dubai, scale to help India meet its infrastructure Thermal Power Generation United Nations Global Compact (UNGC), Godda (Jarkhand). The external aspect the corporate office, guided by the Chief Indonesia, Myanmar, Singapore and the development requirements and ensure International Finance Corporation (IFC) boundary includes external impact areas Sustainability Officer (CSO), has been United States the Group’s vision. improved quality of life. Performance Standards and Sustainable and stakeholders in our value chain, responsible. The report has been reviewed Development Goals (SDGs). Adani Group owes its success and Our values, ‘Courage, Trust and including upstream and downstream by the Apex Sustainability Committee, leadership position to its core philosophy Commitment’, enable us to give back Reporting Period value chain partners, business partners, which is a group of functional heads of ‘Nation Building’ and ‘Growth with to the society by creating sustainable We publish the Report on an annual vendors, government agencies and local and station heads chaired by the CEO. Goodness’. The Group is committed to business value. basis. It covers information for the period communities at these locations. Key indicators of value creation and protecting the environment and improving from 1st April, 2018 to 31st March, 2019. sustainability performance are monitored Materiality the life and livelihood of communities and reviewed by the CEO and the results Material topics are those that are of high are deliberated at the Board of Directors concern to the business and stakeholders (the Board) level on a quarterly basis. 2 1 Sustainability Performance and Value Creation Report 2018-19 FY 2018-19 Financial Capital Manufactured Capital Social & Relationship Capital Human Capital Intellectual Capital Natural Capital E2,63,616 MN 10,480 MW E124.80 MN 2,186 AGILE and DISHA 0.57 tonne/MWh (As on 31st March, 2019) Revenue CSR expenditure* Company employees Business process transformation Specific coal consumption Power generation capacity initiatives E74,310 MN 58.47 billion units E20.70 MN 6,364 E-logbook 0.85 tCO2e/MWh EBITDA Power generation CSR expenditure Contract workforce at operating power plants Specific GHG emissions directly by Adani Power Specific water E1,85,905 MN 55.33 billion units >6.50 lakh 39,328 ISO 9001, ISO 14001, consumption (m3/MWh) Market capitalisation Power sales CSR beneficiaries Employee Safety training man-hours OHSAS 18001 and ISO 50001 9.57 Lost day rate, excluding Certification Adani Power Mundra Limited – E77,123 MN 95.80% 1,378 fatalities (per million man-hours) Seawater Equity Operational availability On-boarded vendors 0.00 2.29 Upcoming projects Adani Power Maharashtra Limited – Company employees Freshwater 2X800 MW Godda Thermal Power Project (TPP) (under construction) 2X800 MW Expansion of Udupi Power * Includes expenditure through 2.99 2.54 Corporation Limited (under planning) Adani Foundation Contract workforce Adani Power Rajasthan Limited – Freshwater and Harvested Rainwater 5.51 Udupi Power Corporation Limited – Seawater and Rainwater 2 3 Sustainability Performance and Value Creation Report 2018-19 Company Overview The Right Portfolio Our Operating and Upcoming Plants As on 31st October, 2019, we had seven power projects with an installed capacity of 12,450 MW across Gujarat, Maharashtra, Adani Power Limited (APL), headquartered at Ahmedabad, Gujarat is the largest private sector power producer in India. Rajasthan, Karnataka and Chhattisgarh. Additionally, we have Beginning its journey in 2006 with a 330 MW unit in Mundra, APL has an installed thermal power generation capacity several planned projects across Jharkhand, Madhya Pradesh, of 12,450 MW as on 31 October, 2019 with plants in Gujarat, Maharashtra, Karnataka, Rajasthan and Chhattisgarh. The Gujarat, Rajasthan and Karnataka, comprising 7,000+ MW of Company also operates a 40 MWp solar power plant in Bitta, Gujarat. Kawai (Rajasthan) power generation capacity.