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Adani Ports Leads Global Recognition in Climate Action and Environmental Performance

11th February, 2024| By Business Desk
Adani Port Container | Credit: Creative Commons - Medium
  • Adani Ports and Special Economic Zone Ltd (APSEZ), India’s largest port operator, achieved top rankings in climate action and environmental performance assessments by four global rating agencies.
  • The company received accolades for its exemplary efforts in emission reduction initiatives, climate governance, and risk management processes, earning the highest ratings from organizations like CDP and S&P Global.
  • APSEZ’s consistent improvement in environmental performance, reflected in its top position in the S&P Global Corporate Sustainability Assessment, underscores its commitment to sustainable practices.
  • Notably, APSEZ’s alignment with global net zero targets and its pledge to achieve net zero emissions by 2040 demonstrate proactive measures to address climate change.
  • Moody’s recognition of APSEZ’s advanced rating in energy transition and its top rank in the Transport and Logistics sector affirm the company’s leading position in environmental, social, and governance (ESG) performance, both globally and within India.

Adani Ports and Special Economic Zone Ltd (APSEZ), India’s largest port operator, announced its prominent position in climate action and environmental performance as assessed by four global rating agencies, according to a statement released on Sunday.

CDP, a renowned environmental organization, accorded APSEZ the leadership band “A-” for its exemplary implementation of current best practices aimed at addressing climate change risks and opportunities. Notably, over 23,000 companies, representing more than half of the global listed market cap, participated in CDP’s assessment, reflecting its extensive scope and significance to investors managing assets worth over $136 trillion.

APSEZ, a subsidiary of the Adani Group specializing in port operation and logistics, attained an “A” rating, the highest possible, for its commendable efforts in emission reduction initiatives, climate governance, and risk management processes.

Furthermore, APSEZ claimed the top position in the environmental dimension of the S&P Global Corporate Sustainability Assessment (CSA) 2023 among 324 leading players in the Global Transportation and Transportation Infrastructure sector. This sector encompasses various modes of transportation such as marine ports, shipping, air, road and rail transport, logistics, mass transit systems, and other transportation businesses. The environmental dimension, constituting 56% weightage for climate indicators and strategy, witnessed APSEZ improving its score consecutively for the third year, thus securing the apex position.

In the overall Environmental, Social, and Governance (ESG) assessment, APSEZ garnered a 96 percentile score, situating itself among the top 15 leading companies globally in the sector. Remarkably, it emerged as the sole port operator featured on this prestigious list.

Moreover, Sustainalytics, a renowned provider of ESG research and ratings, bestowed the highest rank upon APSEZ in the ports sector during its January 2024 update. The assessment primarily evaluates the alignment of a company’s projected emissions with the global net zero target. Although APSEZ’s current projected emissions align with a 1.7°C rise in global temperature, the company has pledged to achieve net zero by 2040, a decade ahead of the global target to limit global greenhouse gas emissions and maintain a 1.5°C increase in temperature.

Sustainalytics also assigned a low to negligible risk rating to Adani Ports on the overall environmental dimension, encompassing biodiversity & land use, emission and pollution control, and waste management. This rating reflects the robust risk management framework implemented by the company.

Additionally, Moody’s, a prominent credit rating agency, awarded APSEZ an ‘advanced’ rating in its recent Energy Transition Rating. In a comprehensive evaluation conducted in 2022 on environmental, social, and governance parameters, APSEZ secured the first rank in the Transport and Logistics sector and ninth position across all sectors/industries in the Global Emerging Markets.

Notably, in India, APSEZ claimed the top rank on ESG performance across all sectors, outperforming 4,885 companies evaluated globally by the rating agencies on various ESG indicators, policies, processes, and systems. Moody’s is anticipated to conduct its next assessment this year, further underscoring APSEZ’s commitment to environmental sustainability and corporate responsibility.