Tata Power Company Limited · NSE:TATAPOWER
Tata Power — Morgan Stanley Virtual Asia ESG Seminar 2021
37 slides from Tata Power's conference presentation, Jan 19, 2021
Slide 1: Transforming Future for a Sustainable Tomorrow
Transforming Future for a Sustainable Tomorrow Morgan Stanley Virtual Asia ESG Seminar 19th January 2021
Slide 2: Table of contents
Table of contents 1. The Global ESG Context 2. Tata Power’s ESG Footprint 3. Redrawing our Strategy with Sustainability at the core 4. Our journey towards a Sustainable Tomorrow 5. TATA POWER 2.0 - Lead Utility Sector ESG practices
Slide 3: …Message Box ( Arial, Font size 18 Bold)
…Message Box ( Arial, Font size 18 Bold)
Slide 4: Global Movement to achieve Net Zero Emissions
Global Movement to achieve Net Zero Emissions Carbon neutrality targets now cover 60% of the world’s emissions ~BNEF report EU ministers to agree to make climate neutrality by 2050 binding 4
Slide 5: India leading the climate change agenda
India leading the climate change agenda Accounts for: • 17.7% of the world’s population INDIA • 7% of the world’s greenhouse gas emissions. Nationally Determined Contribution (NDCs) ▪ India, only country among G20 nations on track to achieve targets under the Paris Agreement - achieved through large
Slide 6: Globally power utilities are high on ESG risk exposure
Globally power utilities are high on ESG risk exposure The Power generation (coal based) ranks third highest on the ESG risk exposure. The chart shows sector's exposure to ESG risks on a scale of 1 -6. Score closer to 1 represents a relatively low exposure, while 6 indicates a high-risk exposure -ES
Slide 7: Investors now increasingly focused on ESG strategy of their investments
Investors now increasingly focused on ESG strategy of their investments Increased public scrutiny of environmentally damaging practices and products across sectors Banks and Investors are actively focusing on “Clean, Green” investments Out of USD 85 trillion of Asset Managed Funds, USD 35 trillion i
Slide 8: Tata Power’s ESG Footprint
Tata Power’s ESG Footprint
Slide 9: Tata Power’s improving ESG ratings
Tata Power’s improving ESG ratings CDP disclosure 2020 2019 ▪ Sustainability report for 2019 was not Climate Change C D issued and was rolled into an Integrated Water Security C F (non- disclosure) Report issued in late June 2020 covering Rating done on A to F basis with A being best and F being wor
Slide 10: Tata Power competitively placed in ESG Ratings
Tata Power competitively placed in ESG Ratings ESG Score-Reuters ESG Score-Bloomberg 70 60 57 62 52 55 60 56 54 47 47 51 50 44 45 44 51 48 49 43 48 50 44 40 42 40 35 40 32 31 30 30 25 30 21 21 20 20 10 10 0 0 Tata Power NTPC Powergrid Tata Power NTPC JSW Energy Ltd (JSW Adani Power Ltd. Power Grid C
Slide 11: Redrawing our Strategy with Sustainability at the core
Redrawing our Strategy with Sustainability at the core
Slide 12: Re-visited key material issues focusing on a Sustainable Future
Re-visited key material issues focusing on a “Sustainable Future” Material & Stakeholder Engagement Study for Tata Power - 2020 Increase in Resource Availability Waste Management Renewable portfolio (Coal & Water) Carbon emission Operational Sustainable management Efficiency Biodiversity investment
Slide 13: Benchmarking Climate Strategy with the leaders
And benchmarking Climate Strategy with the leaders 27 GW 50 GW 83 GW 104 GW 51 GW 23 GW 6% 5% 13% 7% 18% 2% 5% 13% generation 6% Present 35% 34% 14% 27% 48% 52% 42% 33% 43% 62% 73% 46% 16% +700 MW 15 coal & oil based -7 GW of thermal, Growth thru Innovation, new SBTi endorsed renewables Focus on ren
Slide 14: Aim for Sustainability leadership through UNSDGs
Aim for Sustainability leadership through UNSDGs SDG Prioritization & SDG Roadmap SDG Mapping Classification FY25 Business SDG CSR SDG Business-wise targets have been set for the prioritized SDGs to create a Roadmap for Strategy horizon 2025 14
Slide 15: To re-draw Tata Power’s Sustainability Aspirations
To re-draw Tata Power’s Sustainability Aspirations Vision- To empower a billion lives through sustainable, affordable and innovative energy solutions. Decarbonization Thought Leadership Circular Economy Move towards WATER To become Become a GLOBAL NEUTRALITY/POSITIVITY & ZERO CARBON NEUTRAL by 2050
Slide 16: Our journey towards a Sustainable Tomorrow
Our journey towards a Sustainable Tomorrow
Slide 17: Environment Pillar
ENVIRONMENT PILLAR
Slide 18: Mission FY25 - To be a Global leader on Sustainability practices in Utility sector
Mission FY25 - To be a Global leader on Sustainability practices in Utility sector Low Carbon Business Smaller Environmental Carbon Management Innovative solutions Portfolio footprint 40% Reduction of Specific 33% reduction in GHG 15 GW capacity addition Utility Scale Storage solutions emission inte
Slide 19: Tata Power’s Carbon Neutrality horizons
Tata Power’s Carbon Neutrality horizons Leader in achieving Carbon Neutrality Global Benchmark among Large Utility and pioneer in clean energy • Leader in Climate Strategy Leader in adopting implementation Climate Strategy • Global best-practice levels of • Emerging position in clean specific emissi
Slide 20: Tata Power’s Climate Commitment
Tata Power’s Climate Commitment Tata Power Lower Carbon footprint by 33% by 2025 Decarbonization Aspiration and move towards Carbon Neutrality by 2050
Slide 21: Involving stakeholders in the Carbon Mitigation journey
Involving stakeholders in the Carbon Mitigation journey SUPPLIERS BUSINESS EMPLOYEES CUSTOMERS COMMUNITY SCOPE 1 SCOPE 2 SCOPE 3 • Responsible • Business • Digital forums • Demand Side • Thought Supply Chain Portfolio shift to replace Management leadership management • Efficiency travel optimally •
Slide 22: Customer centric climate initiatives
Customer centric climate initiatives Demand Side Management (DSM) & Digitalization – Green Power solutions Energy efficiency programs Towards 100% paperless processes 70% customers use digital mode of payment Developing 225 MW hybrid renewables 16554 MWH saved through DSM in 3 years; ~25000 applianc
Slide 23: Focus on Low Carbon Business offerings for Consumers
Focus on Low Carbon Business offerings for Consumers Data as of 30th Sept 2020 EV Charging Rooftop Solar Microgrids Installed 203 EV charging Installed 421 MW of Rooftop capacity touching TP Renewable Microgrid Ltd. points in 23 cities 30,000+ customers across 100 cities launched on 4th Nov 19 Tata
Slide 24: Tata Power’s Circular Economy horizons FY20-FY50 (Water)
Tata Power’s Circular Economy horizons FY20-FY50 Enablers Leadership Oversight Standards & Technology Benchmarking Leader in achieving Water Positivity! Global Benchmark among Large Utility and pioneer in water management Benchmark Leader in water • With thermal phase out, management within Tata sig
Slide 25: Tata Power’s Circular Economy horizons FY20-FY50 (Waste)
Tata Power’s Circular Economy horizons FY20-FY50 Enablers Advocacy New Technology Benchmarking Indian Benchmark with Zero Waste company! market-linked waste Benchmark leader with revenue generating best gainful flyash business model • Zero flyash generation utilization practices within WASTE sector
Slide 26: Social Pillar
SOCIAL PILLAR
Slide 27: CSR thrust areas & alignment to UNSDGs
CSR thrust areas & alignment to UNSDGs Financial Inclusivity Livelihood & Skill Health & Sanitation Education Water Building • 312.85 Cr resources • 18000+ women • 100% Villages open • 100% Enrolment • 100% access to mobilized under SHG members defecation free with and Zero safe drinking covered und
Slide 28: CSR Flagship Initiatives empowering communities
CSR Flagship Initiatives empowering communities Community Welfare Enabling 3.15 lakh beneficiaries to Education | Health & Nutrition Financial Inclusivity access Govt. schemes Dhaaga micro enterprise for garmenting, Community Empowerment a supplier to national brands with 16 locations & 1170 members
Slide 29: Governance Pillar
GOVERNANCE PILLAR
Slide 30: Robust Governance Structure in place
Robust Governance Structure in place Shareholders Board of Directors Nomination and Stakeholders Risk Management Audit Committee Remuneration Relationship CSR Committee Committee Committee Committee GOVERNANCE POLICIES ❑ Tata Code of Conduct ❑ Risk Management Policy – ISO certified process ❑ Policy
Slide 31: Best in class Risk Management Process
Best in class Risk Management Process ISO 22301:2012 Tata Power has been awarded ISO 22301:2012 for Societal Security and Business Continuity Management System from 2015 till date from British Standards Institution (BSI). 31
Slide 32: Copyrights
Copyrights Tata Power has received copyright for it’s Risk Quantification Process as well as for the online Risk Management System. 32
Slide 33: Recognition - CNBC TV18 Award
Recognition - CNBC TV18 Award FY-18 FY-19 FY-20 • Best Risk Management • Best Risk Management • Best Risk Management Framework & Systems – Framework & Systems – Power Framework & Systems – Power Power • Risk Governance • Business Continuity 33
Slide 34: World’s Most Ethical Company Awards
World’s Most Ethical Company Awards Tata Power has been recognised amongst “World’s Most Ethical Companies” for three years in succession, 2014, 2015 & 2016 by the Ethisphere Institute, USA. 2015 2014 2016 After winning for 3 consecutive years we have taken a voluntary break from participating in th
Slide 35: TATA POWER 2.0 - Lead Utility Sector ESG practices
TATA POWER 2.0 - Lead Utility Sector ESG practices
Slide 36: ESG at core of Tata Power 2.0
ESG at core of Tata Power 2.0 • No new coal-based capacity to be developed by Tata Power; Resurgent not to participate in any further coal based stressed assets • Achieve Carbon Neutrality by 2050 with Phase out of coal-based generation completely, upon their end of life or expiry of existing PPAs.
Slide 37: Thank You!
Thank You! Website: www.tatapower.com Email Id: investorrelations@tatapower.com Contact: +91 (0) 22 6717 1305 VOTE FOR TATA POWER AT 2021 INSTITUTIONAL INVESTOR’S ASIA (EX-JAPAN) EXECUTIVE TEAM POLL: https://voting.institutionalinvestor.com/welcome Disclaimer: The contents of this presentation are p
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