Adani Green Energy ranks in global top 10 for ESG performance in renewable energy sector
Adani Green Energy Limited (AGEL), led by Gautam Adani, has topped the list of Asian companies in the renewable energy sector and is among the top 10 RE companies globally for ESG performance, according to Institutional Shareholder Services ESG on 15, JUNE 2023.
Adani Green Energy has been assigned a ‘Prime’ (B+) rating, recognizing its strong ESG disclosure practices and high level of transparency. Sustainalytics previously ranked Adani Green Energy as one of the world’s top ten companies in the Renewable Energy sector in FY23.
With this achievement, Adani Green Energy is one step closer to meeting its goal of becoming one of the top ten ESG companies in the world in the electric utility sector by FY25, according to a company statement.
With 8,216 MW, the Adani Group company has the largest operating renewable portfolio in India. Its operations provide clear environmental benefits by aiding in the fight against climate change and facilitating the transition to a more sustainable energy system. Dedicated management systems address relevant social and environmental risks.
“At AGEL, there are four pillars to the ESG framework – guiding principles, policies, commitment, and assurance – helping the company align with UN Global Compact, UN Sustainable Goals, India Business and Biodiversity Initiatives, Green Bond Principles, and IFC’s E&S Performance,” said Vneet S Jaain, MD, Adani Green Energy.
“Our policies are aligned with these guidelines and ESG targets have been set keeping these policies in mind. Our aim is to be among the top 10 companies of the world in the ESG benchmarking of the electric utility sector by FY25,” Jaain added.
Adani Group reported a fourfold increase in profit for the March quarter in May. The Gautam Adani-led company reported a 319 percent increase in consolidated profit to Rs 507 crore for the quarter, owing to a surge in revenues. In the same quarter, it reported a consolidated net profit of Rs 121 crore.
Total income increased 88% to Rs 2,988 crore from Rs 1,587 crore in the same quarter last year, according to the Adani group firm. The robust growth in revenues, EBITDA, and cash profit was primarily driven by the addition of 2,676 MW of capacity, according to Adani Green Energy’s quarterly and annual results.
“Our business model has demonstrated remarkable resilience as evidenced by our strong financial performance,” said Gautam Adani, Chairman, of Adani Group, after the Q4 results. “We are leaders in the green energy space and have consistently set new industry standards in efficiency, performance, and capacity development. We are expediting the transition to sustainable energy and playing a pivotal role in fulfilling India’s obligations to a greener future.”
In the same month, Adani Green Energy reported a 6% increase in solar energy sales in the March quarter, owing to 212 MW commissioned in Rajasthan during FY23 and a 40 basis point improvement in capacity utilization factor (CUF).
Improved CUF performance was accompanied by a 10-bps increase in plant availability, a 40-bps increase in grid availability, and increased solar irradiation, according to the report.
The sale of wind energy in its wind portfolio increased by 69% as capacity increased from 497 MW to 971 MW. CUF decreased as a result of lower wind speed. Plant availability was reduced primarily due to proactive shutdown as part of preventive maintenance to ensure uninterrupted operation during the high wind season.
Meanwhile, a 700 MW solar-wind hybrid project operationalized in Q4 FY23 taking the total Hybrid Capacity to 2,140 MW, Adani Green said.
Content Credit: BUSINESS TODAY