Adani Energy Solutions Ltd · NSE:ADANIENSOL
Adani Energy Solutions — Adani Transmission — Barclays ESG EM Corporate Day December 2020
45 slides from Adani Energy Solutions's conference presentation, December 2020
Slide 1: Adani Transmission Limited ESG Presentation
Adani Transmission Limited ESG Presentation Barclays ESG EM Corporate Day December 2020
Slide 2: Contents
CONTENTS 04-07 Adani Group 04 09-12 ATL - Profile 09 14 Adani Group - ESG Strategy 14 ATL: ESG Framework and 16-27 Milestones 16 ATL – ESG Focus Areas and 29-30 29 Measures to achieve the Targets Annexure - Adani Group Portfolio 32-36 32 Targets and Climate Strategy Annexure - Adani Foundation 37-39
Slide 3: Adani Group
Transmission
Slide 4: Adani: A world class infrastructure & utility portfolio
Adani: A world class infrastructure & utility portfolio Transport & Logistics Portfolio Adani Energy & Utility Portfolio Adani 63.5% 100% 75% 75% Marked shift from B2B to B2C businesses – APSEZ SRCPL ATL AGEL Port & Logistics Rail T&D Renewables AGL – Gas distribution network to serve key 100% 75% 3
Slide 5: Adani: Decades long track record of industry best growth rates across sectors
Adani: Decades long track record of industry best growth rates across sectors Transmission Network (ckm) Port Cargo Throughput (MT) Renewable Capacity (GW) CGD8 (GAs9 covered) 45% 21% 161% 12% 1.5x 3x 30% 2.5x 6x 7% 5% 25% Industry ATL Industry APSEZ Industry Adani AGEL Industry AGL 2016 320,000 ckm
Slide 6: Adani: Repeatable, robust & proven transformative model of investment
Adani: Repeatable, robust & proven transformative model of investment Phase Development Operations Post Operations Origination Site Development Construction Operation Capital Mgmt Analysis & market Site acquisition Engineering & design Life cycle O&M Redesigning the capital Activity intelligence pla
Slide 7: ATL: A platform well-positioned to leverage growth opportunities in T&D business
ATL: A platform well-positioned to leverage growth opportunities in T&D business Execution Prowess Strategic Presence Healthy pool mix Transmission Network of Transmission - Present in 9 states Development with 21 transmission lines Transmission (FY20): 14,837 ckms1; 52% of EBITDA - Central pool Dis
Slide 8: ATL – Profile
ATL – Profile
Slide 9: ATL: Manifesting Adani's Infrastructure Excellence in T&D business
ATL: Manifesting Adani’s Infrastructure Excellence in T&D business Execution 3 million+ Strength and Pan Pan-India network & only private AEML - One of the best-run 93-year old integrated utility Retail Electricity Households India Presence sector co. to operate 500 KV HVDC in S-E Asia catering to g
Slide 10: ATL at a Glance
ATL at a Glance Contracted Assets ROA Assets 25.1% 100% 100% 74.9% 100%1 Transmission HVDC Consumer-facing Assets Transmission line Integrated Utility TBCB Assets 4 Operating HVDC Line in AEML catering to Transmission Assets Mumbai 3 mn+ Households Concession Life of Transmission 12 Operating 9 Unde
Slide 11: ATL: Contracted Assets at a Glance
ATL: Contracted Assets at a Glance Asset Details Key Characteristics TBCB Fixed 35 yrs + 30 yrs of (Section 63) Tariff Asset Life remaining life of asset Operating Asset Base Op. EBITDA Counterparty Network pool payment Assets (Rs. Bn) FY20 (Rs. Bn) Risk mechanism 12 57 8.0 No risk; revenue is a Thr
Slide 12: ATL: ROA assets at a Glance
ATL: ROA assets at a Glance 3 Consumer-facing Integrated Utility (AEML) 1 ROA Transmission Assets Key Characteristics Asset Details Consumer 3 million+ Counterparty Consumers base households Return on Assets Fixed Perpetual Type of Regulated Asset Life (ROA -Section 62) Return business Asset Asset (
Slide 13: Adani Group - ESG Strategy
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission 08
Slide 14: Adani Group: ESG Strategy – Key Focus Areas
Adani Group: ESG Strategy – Key Focus Areas • Extreme Weather • Biodiversity • Food Security Environmental • Local & Rural Livelihood • Water Security • Diversity & Inclusion • Local Community development • Local & Rural Vendor development • Occupational Health & Safety Social • Employee Development
Slide 15: ATL – ESG Framework and ESG Milestones
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission ATL – ESG Framework and Milestones ESG 08
Slide 16: ATL: ESG Framework and Milestones
ATL: ESG Framework and Milestones Vision To be a world class leader in businesses that enrich lives, create sustainable value and contribute to nation building ATL ESG Goal ESG is the way of doing our business, to be amongst Top-10 companies on global ESG benchmarking of electric utility sector by 2
Slide 17: ATL: ESG Framework and Milestones
ATL: ESG Framework and Milestones ESG Pillars >> Focus Areas >> KPIs Commitment towards Global Climate Action Corporate Citizenship and Enabling Social Transformation Responsible Business Practices • Climate change mitigation and • Human Capital Development and Human Rights • Business Ethics and Val
Slide 18: ATL: ESG Framework and Milestones
ATL: ESG Framework and Milestones ESG Pillars >> KPIs >> Targets Commitment towards Global Climate Action Corporate Citizenship and Enabling Social Transformation Responsible Business Practices • GHG Intensity per unit of revenue • Training hours per person year • Evaluation of governance at ATL • F
Slide 19: ATL: Climate Strategy
ATL: Climate Strategy Environment Related Factors Optimizing Carbon Intensity Resource and Bio-diversity Waste Management • Carbon foot-printing and disclosure • Energy Management • Waste Reduction (5R* ) Climate • Improving Carbon Efficiency • Optimizing Input Consumption • Circular Economy Awarene
Slide 20: ESG: Environment awareness and Initiatives
ESG: Environment awareness and Initiatives ATL recognizes that below environment related factors matter to our business model Climate Awareness Carbon Emissions Resource Management Waste Management Reduction in Carbon Footprint Resource Management Waste Management Technology Driven : Water – Rainwat
Slide 21: AEML to be COP 21 compliant DISCOM by 2022
AEML to be COP 21 compliant DISCOM by 2022 AEML to procure 30% of power from renewable power sources, change implemented within a year of acquisition 12x growth Current in renewable • Presently, renewable energy sources contribute ~280 MUs of power procurement power mix of AEML (~ 3% of total energy
Slide 22: AEML: Dahanu Plant Case Study - Climate management system
AEML: Dahanu Plant Case Study - Climate management system Dahanu TPP is amongst the most environmentally friendly plants in India Particulate Matter (mg / Nm3) SOx Emissions (mg / Nm3) 100 2000 >100% fly ash utilization 44 50 22.5 50 30 600 105 160 100 200 Amongst the tallest chimneys in India USEPA
Slide 23: ESG: ATL CSR Strategy – Community and Environment focused approach
ESG: ATL CSR Strategy – Community and Environment focused approach ATL has a strong focus on community outreach through its CSR programme based on the principles of sustainability, diversity and shared values Focus Areas Implementation • ATL has established a framework for identification of the comm
Slide 24: ESG: Governance – Journey so far and future glide path
ESG: Governance – Journey so far and future glide path We have charted a glide path to internalise global best practices of governance by September 2021 Journey so Far Target by SEP 2021 Structure for 8 SPVs including AEML, with no cross securities nor cross guarantees All transactions between ATL a
Slide 25: ESG: ATL's Sustainability Reporting and Governance as per Global Standards
ESG: ATL’s Sustainability Reporting and Governance as per Global Standards ATL has a sub-committee (Sustainability and CSR committees of Board of directors) overseeing implementation of the Sustainability and CSR Policy including the reporting of ESG performance, assurance of data and management sys
Slide 26: ESG: Materiality Assessment for Prioritizing Issues that Impacts Value Creation
ESG: Materiality Assessment for Prioritizing Issues that Impacts Value Creation ATL as a part of robust business and reporting framework performs materiality assessment to identify key levers of value creation which can have reasonable financial impact Factors Affecting Materiality Key Material Topi
Slide 27: ESG: Social Initiatives through Adani Foundation
ESG: Social Initiatives through Adani Foundation Adani Foundation: Core Areas of Service Eight Pillars of Adani Foundation Foundation’s efforts completely aligned Alignment with UNDP Sustainable with UNDP Sustainable Development Development Goals Goals Education Bottoms-up approach Touchpoints at 20
Slide 28: ATL – ESG Focus Areas and Measures to achieve the Targets
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission ATL – ESG Focus Areas and Measures to achieve the Targets 14
Slide 29: ATL: Key ESG Focus Areas and Measures
ATL: Key ESG Focus Areas and Measures Focus Area ESG Initiatives Current Status • Policy formulated and signed • Bio-diversity mapping and assessment for no-net loss • IBBI signatory signed Biodiversity on bio-diversity certified company • Biodiversity mapping initiatives in consultation with CII •
Slide 30: ATL: Key ESG Focus Areas and Measures
ATL: Key ESG Focus Areas and Measures Focus Area ESG Initiatives Current Status • 2 acres multi-crop plantation planned at 6 Climate Change • Greening of Sub-Stations sub-stations and GHG • Participate in Carbon Disclosure Project Emission • ATL submitted questionnaire for Carbon Disclosure Project
Slide 31: Annexure: Group Portfolio Targets, Climate Strategy, CSR Initiatives
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission A) Annexure: 1. Group Portfolio Targets 2. Group Climate Strategy 3. Group CSR Initiatives 22
Slide 32: Adani Group: Portfolio Targets
Adani Group : Portfolio Targets Target by FY 21 Target by FY 25 Natural Resource Energy Intensity Reduction Accelerating Energy Intensity Conservation Reduction Water Neutrality Roadmap Alliance for Water Stewardship Water Intensity Reduction Further Water Intensity Reduction RE Share introduced Imp
Slide 33: Adani Group: Portfolio Targets
Adani Group : Portfolio Targets Target by FY 21 Target by FY 25 Safety Mandatory Induction Training for BSC 5 Star Audit and Certification everyone entering Work area Employee Turnover < 6% Employee Turnover < 5% Employee Development and Employee Satisfaction Score - 4.2/5 Employee Satisfaction Scor
Slide 34: Adani Group: Portfolio Targets
Adani Group : Portfolio Targets Recent Policy Initiatives FY21 Targets Policy on “Related Party Transaction for Acquiring and Sale of Assets”. Policy Capital Allocation policy for all new Audit Committee and Nomination & Remuneration Committee consisting projects of only independent directors. Divid
Slide 35: Adani Group: Climate Strategy
Adani Group: Climate Strategy Environment related factors matters to our business model Climate Awareness Offsetting Carbon Emission Conservation of Resources Waste Management • Increase Renewable Energy share • Reduce freshwater withdrawal • Material Recovery Facility • Promote low carbon technolog
Slide 36: Adani Energy Portfolio: COP21 compliant by 2024
Adani Energy Portfolio: COP21 compliant by 2024 Climate Awareness and Climate Readiness Climate Alignment 2015 2020 2025E 1% 17% Renewable Thermal Fuel Mix based on Installed Power 63% 37% Production Capacity 83% 99% Green EBITDA as % of Total Utility EBITDA 77% Green Investment of incremental capex
Slide 37: ESG: Adani Foundation – Growing Footprint
ESG: Adani Foundation – Growing Footprint Increasing Reach of Adani Foundation Presence across 18 States, 2.3k villages 45 40 States Households (in '000) 40 2315 35 Locations Villages 30 25 1470 20 22 15 18 728 10 12 500 5 0 FY17 FY20 FY17 FY20 Beneficiaries FY17 FY20 Beneficiaries by thematic area
Slide 38: Adani Foundation: Activity-based Community Engagement & Participation
Adani Foundation: Activity-based Community Engagement & Participation Anthropometric Measurements Focused Group Discussions Family Counselling's Referral to CMTC/NRC Sneh-Shivir for SAM children Community Mass Events 38
Slide 39: Adani Foundation: Celebration of Special Days
Adani Foundation: Celebration of Special Days World Menstrual Hygiene day Poshan Maah Global Handwashing Day New born care week World Breastfeeding week World Toilet Day 39
Slide 40: Annexure: ATL ESG Performance
Adani Transmission Limited Debt Presentation | February 2 0 2 0 Transmission B) Annexure: ATL ESG Performance 22
Slide 41: ATL: ESG Performance – FY20
ATL: ESG Performance – FY20 8 % ↓* 7.5 % ↓* 7.45 % * 1.835 MW Auxiliary Power Scope 1 Emission Solar Power Generation Solar Panel Consumption 3187008 TCo2e 2.73 MUs 346.53MUs 6.23 % ↓* 31.62 % ↓* 1.23 Million 195.4 Ha - Afforestation Trees planted Cumulative Mangrove Fresh Water Withdrawal Hazardous
Slide 42: ATL: Key ESG Metrics and Initiatives – FY20
ATL: Key ESG Metrics and Initiatives – FY20 CO2 emissions Water Waste Land use (AEML - Dahanu) Environment Scope 1 (TCO2e): Fresh Water (KL): 18,16,997 ~40 KL Waste generated of used ~148 hectares of green belt 31,87,008 oil Water recycled (KL): 2,04,494 Planted 2 Cr mangroves Scope 2 (TCO2e): 24,50
Slide 43: ATL: Inculcating Safety Culture
ATL: Inculcating Safety Culture Safety Initiatives during the year Safety Performance in Q2FY21 Safety Parameters Q2 FY21 Q2 FY20 • 53,475 man-hours of safety training and awareness Reportable Incident 02 00 • Virtual cross safety audit is completed across O&M sites • Conducted first-aid awareness a
Slide 44: Legal Disclaimer
Legal Disclaimer The information contained in this presentation is provided by Adani Transmission Limited (together with its subsidiaries, the “Company” or “ATL”) to you solely for your reference and for information purposes only. This presentation is highly confidential and is being given solely fo
Slide 45: Thank You
adani Transmission adani Transmission Thank You -¢
Adani Transmission — Barclays ESG EM Corporate Day December 2020 on 6ix