The Adani Group has been dealt a significant setback in their efforts to combat climate change, as three of their companies—Adani Green Energy, Adani Transmission, and Adani Ports & Special Economic Zone—have been removed from the United Nations-backed Science Based Targets Initiative’s list of “companies taking action”. This initiative assists companies in reducing emissions in accordance with the Paris Agreement’s target of limiting global warming.
According to a spokesperson for SBTi, the group conducted an assessment of publicly available and submitted information and concluded that the three Adani Group companies were not in conformity with its standards and policies. Although two other Adani companies—Ambuja Cements and ACC—have retained their place on the list, the exclusion of the three companies was requested by non-profit groups Eko and Market Forces. These groups cited the Adani Group’s “interconnected financial nature”, “flagrant disregard” for corporate governance, and fossil fuel expansion plans as reasons for exclusion.
The updated fossil fuel policy of the SBTi, which excludes companies involved in the extraction, mining, and/or production of fossil fuels, has resulted in the removal of at least 16 other firms from the list. The Adani Group, however, maintains that none of its companies are involved in such activities and has requested the SBTi to justify its decision. The group remains “optimistic” that the SBTi will reverse its decision.
This exclusion from the SBTi’s list is a significant blow to the Adani Group, which is attempting to raise $800 million for its new energy projects as part of its plan to become the world’s largest producer of renewable energy. The Adani Group’s efforts to combat climate change have been hindered by the removal of its companies from the SBTi’s list of “companies taking action”.