By: Abhishek Varma, Prajwal Shenoy, Medha Singh 

Pioneering Sustainability: The Adani Group’s Leading Role in India’s Renewable Energy Revolution

The Adani Group, a conglomerate with diverse interests including energy, resources, logistics, agribusiness, real estate, financial services, and defense, has become a pivotal focus in India’s sustainability goals due to its significant investments in renewable energy. Spearheading the transition towards cleaner energy sources, the group has set ambitious targets to become the largest renewable energy player in India, aiming to achieve over 25 GW of renewable energy capacity by 2025. Their extensive foray into solar and wind energy underscores India’s commitment to reducing carbon emissions and achieving a sustainable energy mix. This focus not only aligns with global environmental objectives but also plays a crucial role in enhancing energy security, promoting green jobs, and fostering technological innovation in the country. The Adani Group’s strategic pivot towards sustainability initiatives exemplifies the broader efforts required from the private sector to support India’s green transition, making them a cornerstone in the nation’s journey towards environmental sustainability and economic resilience.

Effect of climate change on the company

The Adani Group is acutely attuned to the dualistic nature of climate change’s impact. Increased frequency of extreme weather events due to climate change poses multi-faceted risks to Adani’s extensive infrastructure, potentially causing damage, disruptions, and increased maintenance costs. Some business risks include – 

• Operational Risks: The increased frequency and intensity of extreme weather events can lead to infrastructural damage, operational disruptions, and heightened maintenance costs.
• Regulatory Risks: A global shift in policies toward carbon emission reductions presents risks of stricter environmental regulations, potentially affecting the group’s operations in fossil fuel-based energy production.  As global and national policies shift towards reducing carbon emissions, it will impact the group’s fossil fuel-based businesses with stricter environmental regulations and mandates for renewable energy.
• Market Risks: The transition to cleaner energy sources globally can reduce the demand for fossil fuels, impacting Adani’s traditional energy segments and potentially leading to stranded assets and investments.
• Supply Chain Risks: Climate change can cause disruptions in the supply chain, impacting the availability and price of raw materials, which may affect profitability and operational efficiency.

Opportunities from Climate Change for Adani Group: 

Climate change has propelled the Adani Group towards significant investments in renewable energy, recognizing the sector’s growth potential. Adani Green Energy Limited (AGEL) aims to become the world’s largest renewable energy player by 2030, highlighting the group’s strategic pivot to mitigate regulatory and market risks while capitalizing on new opportunities. This shift not only addresses the challenges posed by climate change but also positions Adani as a leader in the global energy transition, enhancing its brand value and stakeholder relations. 

• Growth in Renewables: Adani is making significant investments in renewable energy, including solar and wind, and is aiming to become a leading player in renewable energy by 2030. The development of green infrastructure, such as green power, transmission, and distribution, is not only aligned with sustainability goals but also with the growing demand for cleaner energy.

• Investment in Green Technologies: The group has made substantial investments in a green hydrogen ecosystem, reflecting its strategy to be at the forefront of new, sustainable technologies, with a clear focus on the decarbonization of its power sector. The Group’s ESG report outlines its approach to environmental protection, waste management, water conservation, and operational efficiency.

• Sustainable Infrastructure: By investing in sustainable energy, green hydrogen, and innovative technologies, Adani is diversifying its portfolio and aligning with a low-carbon future, demonstrating the group’s adaptability and commitment to sustainability amid the challenges and opportunities presented by climate change. 

Carbon Performance Measurement and Reporting

The Adani Group has made strides in addressing climate change by enhancing its Carbon Performance Measurement and Reporting (CPMR) processes, reflecting its commitment to sustainability and environmental stewardship. This initiative is part of the conglomerate’s broader strategy to transition towards more sustainable operations across its diverse portfolio, including energy, logistics, and agribusiness sectors. Adani’s CPMR framework involves the systematic tracking and disclosure of greenhouse gas (GHG) emissions from its operations, aiming to provide transparent and accountable reporting to stakeholders. The group leverages advanced technologies and methodologies to measure its carbon footprint accurately, identifying areas where emissions can be reduced, and efficiency can be improved. By adopting international standards and best practices for carbon reporting, such as the Global Reporting Initiative (GRI) and the Task Force on Climate-related Financial Disclosures (TCFD), Adani ensures that its reporting is both comprehensive and comparable with global peers. This enhanced focus on CPMR not only helps the group mitigate environmental risks and comply with evolving regulatory requirements but also positions it to capitalize on opportunities presented by the global shift towards a low-carbon economy. Through these efforts, Adani aims to demonstrate leadership in sustainable business practices and contribute to the global fight against climate change.

Decarbonization initiative

The Adani Portfolio businesses are actively investing in emission reduction interventions today, aiming for sustainable success in the future. With a multi-decade decarbonization strategy, the group is working towards moderating green hydrogen costs to approximately USD 1/kg, a level where it could become cost-competitive with utility-scale batteries and natural gas for peaking electricity generation. This capacity expansion is envisioned to bridge the gap left by thermal energy assets as they reach the end of their productive life by 2040, with green hydrogen potentially becoming competitive with natural gas and facilitating its blending. Despite the already low emission intensity of Adani’s cement business compared to sector averages, the utilization of captured CO2 for manufacturing long-lived building materials like PVC could effectively store CO2 and meet expanding demand. Moreover, combining captured carbon dioxide with green hydrogen to produce e-methanol may render PVC competitive over conventional methods. The Adani Portfolio also sees potential in utilizing green hydrogen for heavy-duty transportation and green ammonia for shipping. Leveraging its scale, the group aims to moderate green hydrogen costs by addressing the largest cost component of renewable energy and increasing the utilization factor of electrolysers. This strategy may lead to one of the lowest green hydrogen production costs globally, especially with the integration of the green hydrogen value chain with giga-scale manufacturing of solar panels, wind turbines, and electrolysers. The portfolio is conducting various pilots across industries, including fuel cell mining trucks and green ammonia co-firing, to achieve its ambitious eco-system approach to a cleaner world. With competitive green hydrogen platforms, low-cost renewable energy foundations, and pillars supporting green hydrogen-based decarbonization solutions, the Adani Portfolio is poised to play a significant role in shaping a more sustainable future for generations to come.

Future course of action 

The Adani Portfolio leads the shift to green hydrogen, driving the transition to clean energy. With a focus on hybrid projects, as global emphasis on sustainability grows, the conglomerate may also explore opportunities in green hydrogen, aiming to become a leader in this emerging sector. Strengthening its carbon performance measurement and reporting mechanisms will be crucial, ensuring transparency and accountability. By aligning its growth strategy with global climate goals, the Adani Group can mitigate risks associated with climate change, capitalize on new business opportunities in the green economy, and contribute significantly to the global transition towards a low-carbon future.