Adani Energy Solutions earns outstanding ESG ratings for sustainable practices

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Adani Energy Solutions Ltd (AESL) today revealed its July-September 2023 (Q2FY24) ESG performance ratings by various third-party firms, where the company improved its performance over multiple parameters.

AESL, which had rebranded itself from Adani Transmission Ltd w.e.f. July 27, 2023, in line with its strategic move to broader and benign energy solutions, has received an impressive score of 86% from CSRHUB, a leading global ESG performance rating agency. AESL’s score surpasses the electric and gas utilities industry’s average done amongst 911 global companies.

In addition, Sustainalytics has awarded AESL an ESG Risk Rating of 31.5, outperforming the global electric utility industry average of 32.1 (a lower score indicates a better risk profile). “This achievement places AESL in the esteemed Global Top 40 of the Electric Utility Industry, a testament to AESL’s commitment to environmental stewardship and social responsibility,” stated AESL.

Morgan Stanley Capital International (MSCI) has assigned AESL a stable ESG rating of ‘BBB.’ MSCI is a global provider of stock market indices and portfolio analytics tools used by investors to track and assess the performance of financial markets and investment portfolios.

Financial Times Stock Exchange (FTSE) has reaffirmed AESL’s status as a constituent of the FTSE4Good index series, accompanied by a notable improvement in ESG score from 3.3 to 4. This places AESL well above the global electric utilities sector average of 2.7. Additionally, AESL’s governance score stands at an impeccable 5/5, with a social score of 4/5 and an environment score of 3.3/5, further highlighting its commitment to ethical business practices.

AESL is well on track to achieve UN Energy Compact goals, including a target of 60% renewable energy (RE) share in bulk energy procurement by FY27, with the current RE share already reaching at 38%. Furthermore, AESL is making significant strides in reducing GHG (greenhouse gas) emission intensity, aiming to achieve a 40% reduction from the FY19 baseline by FY25.

AESL, part of the Adani portfolio, is a multidimensional organization with presence in various facets of the energy domain, namely power transmission, distribution, smart metering, and cooling solutions. It is the country’s largest private transmission company, with a presence across 16 states of India and a cumulative transmission network of 19,800 ckm and 53,000 MVA transformation capacity. In its distribution business, AESL serves more than 12 million consumers in metropolitan Mumbai and the industrial hub of Mundra SEZ.

AESL has been a significant contributor to building transmission corridors connecting RE generation to the national grid through such dedicated green corridors. It has a portfolio of operational transmission projects and several others in various stages of construction in other parts of the country for the evacuation of renewable power.

 

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