Adani Ports Achieves Top Climate Leadership Recognition
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Recognition by CDP for Climate Change Performance
Adani Ports and Special Economic Zone Ltd. (APSEZ) has been honored by the Carbon Disclosure Project (CDP) for its exceptional efforts in addressing climate change. APSEZ received accolades for its climate change performance and for engaging effectively with its supply chain on environmental matters. This recognition was awarded during the ‘Climate Action in India: Role of Businesses & Supply Chain’ ceremony, co-hosted by the Federation of Indian Chambers of Commerce & Industry (FICCI) in New Delhi.
High Ratings from CDP
CDP, an organization that helps companies and cities disclose their environmental impact, assigned APSEZ a leadership band rating of “A-” for both climate change and supplier engagement. This prestigious rating places APSEZ among the few companies globally that achieve high marks in both categories annually. APSEZ earned the highest possible rating of “A” for its initiatives aimed at reducing emissions, climate governance, engaging suppliers, managing scope 3 emissions, and implementing robust risk management processes.
Sustainalytics’ Improves ESG Score
In addition to CDP’s recognition, APSEZ’s environmental, social, and governance (ESG) performance saw an upgrade in the latest assessment by Sustainalytics. The company received an impressive ESG score of 11.3 in May 2024, bringing it very close to being classified as a company with negligible ESG risks (the score band for this category is 0-10). This score places APSEZ in the 95th percentile out of 16,215 companies rated by Sustainalytics globally, indicating its superior performance in managing ESG issues.
Top Performer in Low Carbon Transition
APSEZ has maintained its status as the leading company in the low-carbon transition within the port sector, showcasing substantial progress over the past few years. This achievement is a testament to APSEZ’s continuous efforts to enhance its sustainability practices and reduce its carbon footprint.
CEO’s Commitment to Sustainability
Ashwini Gupta, the Chief Executive Officer of APSEZ, expressed his pride in the company’s accomplishments. “At APSEZ, we are committed to sustainability and reducing carbon emissions. We are pleased with the continuous improvement in our ESG performance and the climate leadership position assigned by multiple ESG rating agencies. We are now focusing on achieving our net-zero commitment by 2040 through the deployment of renewable energy and greening our transportation.”
Global Recognition by S&P Global CSA
APSEZ’s efforts have also been recognized on a global scale. In the S&P Global Corporate Sustainability Assessment (CSA) 2023, APSEZ ranks in the 96th percentile, placing it among the top 15 companies worldwide. Remarkably, APSEZ is the only port operator among the 334 players in the Global Transportation Infrastructure sector to be included in this prestigious list. The company scored highest in the environmental dimension of the assessment, which heavily weighs climate indicators and strategy.
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Advanced Rating from Moody’s
Adding to its accolades, APSEZ received an ‘Advanced’ rating in the most recent Energy Transition Rating from Moody’s. This rating highlights APSEZ’s leadership in transitioning to more sustainable energy practices. In 2022, Moody’s also evaluated APSEZ’s ESG performance, ranking it first in the Transport & Logistics sector and ninth across all sectors in the Global Emerging Markets. Within India, APSEZ was ranked first for its ESG performance across all sectors.
Commitment to Sustainable Development
Renewable Energy Initiatives
APSEZ has been actively working towards increasing its renewable energy capacity. The company is investing in various renewable energy projects to power its operations sustainably. This initiative is part of APSEZ’s broader strategy to achieve its net-zero carbon emission goal by 2040. The deployment of renewable energy is expected to significantly reduce the company’s carbon footprint and enhance its overall sustainability.
Greening the Transportation Sector
Another critical aspect of APSEZ’s sustainability efforts is its focus on greening the transportation sector. The company is implementing various measures to reduce the environmental impact of its transportation operations. These measures include adopting more fuel-efficient vehicles, optimizing logistics to reduce emissions, and exploring alternative fuels and technologies.
Robust Risk Management Processes
APSEZ’s high rating in climate governance and risk management processes reflects its proactive approach to identifying and mitigating climate-related risks. The company has developed comprehensive risk management frameworks to ensure that potential environmental impacts are effectively managed. This approach not only helps in minimizing risks but also enhances the company’s resilience against climate change.
Engaging the Supply Chain
Supplier Engagement Programs
APSEZ has established robust supplier engagement programs to promote sustainability across its supply chain. These programs aim to ensure that suppliers adhere to high environmental standards and actively participate in reducing emissions. By fostering collaboration and encouraging best practices among its suppliers, APSEZ can extend its sustainability impact beyond its immediate operations.
Scope 3 Emissions Management
Managing scope 3 emissions, which are indirect emissions from the entire value chain, is a challenging but essential aspect of APSEZ’s sustainability strategy. The company has implemented various measures to track and reduce these emissions, including engaging with suppliers to enhance their sustainability practices and encouraging the adoption of greener technologies and processes.
Achievements in Environmental Performance
Emission Reduction Initiatives
APSEZ has undertaken several initiatives to reduce its greenhouse gas emissions. These initiatives include adopting energy-efficient technologies, optimizing operational processes, and investing in renewable energy sources. As a result of these efforts, APSEZ has significantly reduced its carbon emissions, contributing to the global fight against climate change.
Climate Governance
Strong climate governance is at the core of APSEZ’s sustainability strategy. The company has established dedicated teams and committees to oversee its climate-related initiatives and ensure that they align with global best practices. This governance structure enables APSEZ to effectively implement and monitor its sustainability efforts, driving continuous improvement.
Future Outlook
Net-Zero Commitment by 2040
Looking ahead, APSEZ is steadfast in its commitment to achieving net-zero carbon emissions by 2040. This ambitious goal will be pursued through a combination of renewable energy investments, energy efficiency measures, and innovative solutions in transportation and logistics. APSEZ’s net-zero strategy is a crucial component of its long-term sustainability vision.
Improvement in ESG Performance
APSEZ remains focused on continuously improving its ESG performance. The company will continue to enhance its sustainability practices, engage with stakeholders, and adopt new technologies to achieve its environmental and social goals. By doing so, APSEZ aims to maintain its leadership position in the transportation infrastructure sector and set new benchmarks for sustainability.
APSEZ’s recognition by CDP and Sustainalytics and its high rankings in various global assessments underscores the company’s strong commitment to sustainability. Through its comprehensive approach to climate governance, emission reduction, and supply chain engagement, APSEZ is making significant strides in addressing climate change and promoting sustainable development. As the company continues to advance its ESG initiatives, it sets a positive example for other businesses in the transportation infrastructure sector and beyond.
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