Adani Energy Solutions Limited (AESL) achieves impressive ESG performance ratings and reaffirms its commitment to environmental stewardship and social responsibility as it aims to achieve UN Energy Compact goals
Adani Energy Solutions Limited (AESL) is a part of the globally diversified Adani portfolio and the largest private transmission and distribution company in India. The company aims to become one of the top-rated companies in the industry and has been expanding its energy solutions portfolio.
Recently, it disclosed its ESG (Environmental, Social, and Governance) performance ratings for July–September 2023 (Q2 FY24) from various third-party firms. AESL has made significant improvements in its performance across multiple parameters.
Adani Transmission Limited rebranded itself to AESL on July 27, 2023, as part of its strategic move and unwavering commitment to ESG principles. AESL has received an impressive score of 86 percent from CSRHUB, a leading global ESG performance rating agency, surpassing the Electric & Gas Utilities industry average among 911 global companies.
In addition, Sustainalytics, a global leader in ESG research and data, has awarded AESL an ESG risk rating of 31.5, better than the global average of 32.1 for the Electric Utility Industry. This achievement ranks AESL among the top 40 global electric utility companies, highlighting its commitment to environmental stewardship and social responsibility.
MSCI, a leading global provider of stock market indices and portfolio analytics tools, has assigned AESL a stable ESG rating of 'BBB'. This rating highlights AESL's commitment to strong ESG performance. Additionally, AESL has been reaffirmed as a constituent of the FTSE4Good index series by FTSE (Financial Times Stock Exchange), a renowned global index provider. AESL's ESG score has improved from 3.3 to 4, placing it well above the global electric utilities sector average of 2.7.
Moreover, AESL boasts an outstanding governance score of 5 out of 5, a social score of 4 out of 5, and an environmental score of 3.3 out of 5, further highlighting its commitment to ethical business practises. AESL is taking proactive steps to comply with SEBI's latest Business Responsibility and Sustainability Reporting (BRSR) guidelines.
The company aims to achieve UN Energy Compact goals, including a 60 percent renewable energy (RE) share target in bulk energy procurement by FY27. The current RE share of AESL has already reached 38 percent. The company is also making significant strides in reducing GHG (greenhouse gas) emission intensity, aiming to achieve a 40 percent reduction from the FY19 baseline by FY25.
AESL has been instrumental in constructing transmission corridors that connect renewable energy generation to the national grid via dedicated green corridors. The company has a range of operational transmission projects in its portfolio, with several others in various stages of construction across the country, all aimed at facilitating the evacuation of renewable power.
In accordance with its 1t.org pledge, AESL has successfully planted 24.3 million mangroves and 3.28 million trees, showcasing its unwavering commitment to reforestation and environmental preservation. To achieve its goal of planting 100 million trees by 2023, the Adani Group has already planted approximately 30 million of them.