At Adani Energy Solutions, environmental responsibility is integrated into our daily operations and guides how we plan, operate and grow. As we expand and diversify, we remain committed to reducing our carbon & water footprint, protecting natural ecosystems and using resources responsibly. We are adopting advanced technologies, improving grid efficiency and integrating renewables to support India’s rising energy needs, while caring for the environment for future generations.

Through investments in decarbonisation, circular economy practices, ecosystem conservation and strong governance mechanisms, we strengthen operational sustainability while supporting India’s energy transition and environmental security.

Material Topics

• M1 Biodiversity and Habitat Management
• M2 GHG Emissions and Climate Change
• M3 End Use Efficiency and Demand
• M4 Water and Effluent Management
• M9 Energy Access and Affordability
• M20 Waste Management

Strategic Priorities

• S2 ESG Integration
• S3 Efficient Capital Allocation and Execution Capabilities
• S6 Business Excellence

Capitals Impacted

Natural Capital Financial Capital Social & Relationship Capital Intellectual Capital Manufactured Capital Human Capital

Key Risks and Opportunities

• R1 Macroeconomic Risk
• R5 Climate Risk
• R7 Biodiversity Risk
• R8 Failure of Climate Change Adaptation

SDGs Aligned

Environment Focus Areas

Hazards

• Potential climate hazards that could impact the area or assets under consideration

Vulnerability

• Physical
• Socioeconomic
• Environmental
• Coping Capacity
• Adaptive Capacity

Exposure

• Workforce
• Business Segment
• Assets, sites, and operations

Scope

• Geographical area, Time period

The Indian Scenario

As India charts its trajectory to becoming a USD 30 trillion economy by 2050, it also faces the dual challenge of sustaining rapid economic growth while also addressing the risks posed by climate change. Rapid urbanisation, industrialisation, and expanding access to electricity are driving the energy demand northwards. In this context, India’s transition to a resilient and reliable energy system is critical to achieve long-term development and socio-economic objectives.

India’s Climate Change Ambitions

The country has set clear ambitions under the Nationally Determined Contribution (NDC) aligned with the Paris Agreement to significantly reduce emissions from its economy. This includes becoming net zero by 2070, achieving 500 GW of non-fossil energy capacity, and sourcing 50% of its energy requirements from renewable energy by 2030. India also aims to reduce the emission intensity of its economy by 45% and create an additional carbon sink of 2.5 - 3.0 billion tonnes of CO₂ equivalent through additional forest and tree cover. Complementing this, the National Green Hydrogen Mission seeks to position India as a global hub for green hydrogen production, targeting 5 million metric tonnes (MMT) of annual production by 2030. India is also making significant strides towards developing a domestic carbon market to encourage industries to adopt low-carbon technologies and trade carbon credits to reduce emissions across key sectors.

Adani Energy Solutions’ Net Zero 2050 Strategy: Aligned with Nation’s Sustainability Ambitions

At Adani Energy Solutions, our decarbonisation strategy closely aligns with these national priorities. As a leading enabler of India’s power infrastructure, we are strengthening Transmission and Distribution (T&D) networks by integrating renewable energy and deploying smart technologies to improve energy efficiency and reliability. Our strategic initiatives in smart metering, sustainable power procurement and innovative offerings such as Cooling as a Service, supports India’s clean energy transition and secure the energy needs of the growing economy. Our robust decarbonisation roadmap is in line with a 1.5°C pathway and aims at reducing our Scope 1, 2, and 3 emissions and achieving Net Zero by 2050.

Adani Energy Solutions integrates climate-related considerations into governance, risk management, and capital allocation. We actively engage with government bodies and investors to align on climate-related performance and priorities. Through resilient infrastructure, disciplined decarbonisation approach and transparent disclosures, we support India’s trajectory towards a secure, low carbon future.

Read further
Climate Change Policy

Scope 1 and Scope 2 GHG Reduction

Value Chain (Scope 3) GHG Reduction

Implications for Strategy and Business Model

The climate resilience assessment helped understand how different climate scenarios could shape our strategy and business model.

Strategic Resilience and Direction

The Company evaluated the probable effects of various climate scenarios, including policy transitions, evolving market preferences, and physical climate risks. Findings indicate that our core strategy remained resilient under most plausible climate scenarios. However, in more challenging pathways, such as rapid decarbonisation or severe climate events signal the need to accelerate the adoption of low-carbon technologies and diversify revenue streams.

Business Model Adaptation

The climate scenario analysis has also informed potential adjustments to the business model. We are exploring opportunities to expand services in energy efficiency, renewable generation and infrastructure supporting climate adaption. We are also developing new capabilities and partnerships to address emerging customer demands and regulatory requirements.

Operational Adjustments

The analysis identified operational vulnerabilities, including supply chain disruptions, infrastructure exposure to extreme weather and changes in resource availability. In response, we are evaluating measures including operational redundancies, portfolio diversification and enhanced risk management processes to improve resilience and continuity.

Embedding Climate into Decisions

Physical and transition risks, along with broader sustainability risks, are embedded in strategic planning, operational decisions, and investment evaluations. A rigorous sustainability lens is applied to evaluating potential impacts, compliance requirements, and resilience considerations in the execution of major transactions, such as acquisitions, infrastructure development, asset modernisation and geographic expansion. Diversified operations across 16 states, robust grid modernisation, proactive climate governance, resilient asset design, with physical risks addressed at the design and planning phase, further reinforce our ability to navigate climate-related risks while delivering sustainable, long-term value.

To create a resilient, future-ready business model, Adani Energy Solutions leverages the findings from its climate risk assessment in the following ways:

Read further
Climate Transition Plan Report

2. Internal Carbon Price (ICP)

Adani Energy Solutions has implemented an internal carbon pricing mechanism that incorporates GHG emissions costs into business decisions and capital allocation, with a benchmark of ₹ 800 per tCO₂e and a Shadow price of ₹ 12,488 per tCO₂e. These price reflects both the cost of abatement in the Company’s operational context and provides a forward-looking reference for evaluating future projects.

The ICP is:

• Implemented across all business units for consistent and comparable carbon-related financial evaluation
• Applied to all capital investments, particularly for emission-intensive projects, through stress testing and scenario analysis
• Used a separate shadow price to guide supply chain and procurement strategies towards low-carbon alternatives and supplier engagement
• Applied to assess operational efficiency and emission reduction initiatives to optimise impact and resource deployment

The ICP is governed by an internal committee with representatives from sustainability, finance, risk, and strategy that oversees the pricing methodology, periodic reviews, and implementation across the Company. The ICP is periodically recalibrated with feedback from the cross-functional teams, sustainability experts and external advisors and supported by independent third-party assurance. This approach maintains accountability, transparency and consistency with evolving regulatory expectations, carbon markets and leading sustainability frameworks.

3. Strengthening Transmission Infrastructure for Grid Stability

Resilient Tower Designs

Robust and cost-efficient tower infrastructure is the backbone of our expanding transmission footprint across India. We combine conventional engineering with innovative designs to enhance network reliability and resilience. Our tower structures are designed to withstand diverse environmental conditions, including wind and seismic activities, soil resistivity, water characteristics, hydrological studies, etc.

Modernisation to Reduce Energy Losses

We continue to upgrade our transmission and distribution network through improved design, advanced technologies and regular enhancements to limit energy losses, including the ones linked to rising temperatures and enhance network efficiency and long-term competitiveness.

Emergency Restoration System (ERS)

Our Emergency Restoration System supports swift recovery post disruptions, backed by continuous monitoring and a skilled workforce. The system allows rapid restoration and quick erection of lightweight structures within 3-15 days, with periodic mock drills conducted to gauge effectiveness.

Disaster Management Plan (DMP)

AEML’s robust Disaster Management Plan for its Transmission and Distribution network is guided by the Sendai Framework for Disaster Risk Reduction (Sendai, Japan, 2015), UN Sustainable Development Goals (2015) and Climate Change Agreement (COP21, 2015), and the Prime Minister’s Agenda for Disaster Risk Reduction. It addresses network vulnerabilities to natural and manmade disasters and outlines structured mitigation, response and processes, recovery plans, with clearly defined roles and responsibilities across the organisation.

Read further
Retail Electricity’s Disaster Management Plan

4. Climate Policy Advocacy

Adani Energy Solutions became the 1^st Indian Electric Utility to commit to Utilities for Net Zero Alliance, uniting global utilities and power companies to develop renewable energy grids, promote clean energy solutions and advance electrification. This collaboration enables Adani Energy Solutions to leverage experience of its global peers, while sharing insights on building high-capacity renewable energy evacuation networks.

5. Increasing the Share of Renewable Energy in the Power Mix

*Target - 30%

^This includes 3,224.23 MUs procured (equivalent to 28.38%) for past period RPO compliance as per MERC.

Year-on-Year Scope 3-Category Emissions Avoided

*Considering 2025: India’s GHG emissions per capita = 2.2 MtCO₂e

We prioritise the integration of solar, wind and other sustainable sources into the grid to reduce fossil fuel dependence and support a diversified power mix for India. Simultaneously, we are investing in storage solutions, such as batteries and pumped hydro storage, to manage intermittency and ensure grid stability and reliability. The Company made a revenue of ₹ 5,256.01 crore in FY 2025-26 from its renewable energy distribution.

Progress Made till FY 2025-26

• 3.3 MW in-house solar PV projects capacity achieved, up from 1.7 MW in FY 2019-20, within the operational boundaries
• 700 MW long-term wind-solar hybrid PPA secured for 25 years to provide clean energy
• Planned expansion of renewable energy capacity with an additional 1,500 MW RE PPA and short-term RE PPA’s underway
• 1,500 MW additional RE PPA planned, with short-term RE PPAs under execution
• Solar power and RE-Green tariff deployed to offset auxiliary consumption
• 75 MWh Battery Energy Storage Systems [BESS] planned to support RE integration

Adani Energy Solutions remain firmly committed to sustainable power procurement and advancing the clean energy transition, with no plans to add new thermal power capacity in future.

KPIs for SLB

KPI	Target	Performance in FY 2025-26
Increase in Renewable Power Mix	60% by FY 2026-27	37.53% (without REC’s) achieved 65.92% (with REC’s) achieved
Reduction in GHG Emission Intensity per EBITDA (Scope 1 & 2, AEML Retail division)	40% by FY 2024-25 50% by FY 2026-27 60% by FY 2028-29 (Baseline: FY 2018-19)	91.26% (without REC’s) achieved

Commitment Towards Global Climate Action

AEML – RE% in Procurement Mix

^This includes 3,224.23 MUs procured (equivalent to 28.38%) for past period RPO compliance as per MERC

Target Achieved (without REC’s):

125%

of FY 2022-23 target

63%

of FY 2026-27 target

54%

of FY 2029-30 target

AEML - GHG Emission Intensity / EBITDA (Scope 1 + 2) [tCO₂e / ₹ crore]

Target Achieved:

228%

of FY 2024-25 target

183%

of FY 2026-27 target

152%

of FY 2028-29 target

Green Loans

Adani Energy Solutions raised a USD 700 million revolving loan facility, which was designated as a ‘Green Loan’ by Sustainalytics. The funds will be deployed towards eligible green projects to support clean energy integration and grid resilience for strengthening India’s energy landscape.

An independent Second Party Opinion (SPO) from Sustainalytics assured the loan’s adherence to the green loan framework, which validates the Company’s alignment with sustainability principles, risk management practices, and responsible allocation of funds.

This revolving loan facility supports priority projects in Gujarat and Maharashtra, including:

• Government of India’s Green Energy Corridor (GEC) projects in Gujarat, facilitating the evacuation and transmission of renewable energy
• Transmission System projects in Mumbai, enhancing grid stability and reliability

7. Reducing Greenhouse Gas Emissions

We have established science-based long-term and interim targets to reduce our GHG footprint, in line with global climate goals, with a heightened focus on value chain emissions. We engage suppliers through a structured due diligence framework and capacity building programmes, encouraging practical, scalable solutions to shared sustainability challenges.

Our Collaborative Approach for Value Chain Decarbonisation Includes:

GHG Emissions Profile in FY 2025-26 (in MtCO₂e)

*Decrease in GHG emissions at Adani Energy Solutions can be primarily attributed to the divestment of the Adani Dahanu Thermal Power Station (ADTPS), effective from September 26, 2024.

**The primary cause of decrease of emissions can be attributed to the improved procurement practices and reduced transmission and distribution losses.

GHG Emissions Intensity (Scope 1 & 2)

GHG Emissions Intensity

(MtCO₂e/ revenue in million ₹)

GHG Emissions Intensity

(MtCO₂e/ GWh Electricity sold)

Category-Wise Scope 3 Emissions [MtCO₂e]

8. Managing Air Emissions

We conduct online monitoring of emission levels of SO₂, NOx, and TPM in Flue gas. We use IPCC as the source of emissions factors and calculate air emissions using the GHG protocol. ODS Management: Strict protocols for safe handling and disposal of ozone-depleting substances to minimise environmental harm.

*ODS emissions include R22, R410A and SF6 and are not considered in the data above as their ODP is zero, although they are emitted.

NOx, SOx, SF6 Emissions (MtCO₂e) are included in our overall Scope 1 emissions.

#The decrease in air emissions at Adani Energy Solutions can be primarily attributed to the divestment of the Adani Dahanu Thermal Power Station (ADTPS), effective from September 26, 2024.

+ Read more in BRSR-principle 6 on Pg. 470

9. Efficiency in Energy Management

10. Smart Grid Technology and Demand Side Management

Energy Affordability Aligned with ESG Objectives

End use efficiency and demand side management are critical to building a low carbon, resource-efficient power system to lower overall demand, improve grid performance and reduce environmental impact, while creating long-term value for customers and communities. With 100% smart grid integration across its electric load, the Company enables seamless operations and improved end use efficiency.

We have integrated demand side management strategy across operations and stakeholder management. We ensure compliance with energy efficiency standards, and conduct various demand side management programmes in partnership with regulators, suppliers and customers. Our efforts in demand side management are embedded across internal operations through product innovation, compliance management and supplier audits, engagement with policymakers and transparent regulatory dialogues. Various demand side initiatives have delivered estimated customer electricity savings of 1.4 MU’s across markets. The Company tracks key indicators such as renewable energy share, green tariff uptake and participation in efficiency programmes, enabling continuous improvement.

Key Initiatives to Support Customers in Adopting Sustainable Technologies

• Promotion of energy-efficient appliances, including 5-star rated products
• Deployment of smart grids and smart meters for real-time monitoring and informed consumption
• Implementation of resource efficiency measures, such as zero liquid discharge systems and water reuse systems
• Expansion of transmission infrastructure to integrate renewable energy and enable access to low carbon power

+ Read more on Customer Relationship Management on Pg. 268

Circular Approach

At Adani Energy Solutions, we adopt a lifecycle-based approach to waste management that integrates circular economy principles across design, procurement, operations and end use. We prioritise waste prevention, recovery and responsible disposal to minimise environmental risks and landfill dependency. We apply the 5R Framework (Refuse – Reduce – Reuse – Recycle / Repurpose – Recover) across the lifecycle covering upstream, operations and downstream. Circularity considerations are embedded at the planning and design stage of the projects. Material optimisation, modular construction practices and responsible sourcing frameworks reduce generation at source and enhance waste efficiency.

Recycling programmes are integrated into operations and targeted training programmes are delivered to employees to promote responsible waste management practices.

Controls and Compliance

We rigorously follow the regulations issued by the Ministry of Environment, Forest and Climate Change (MoEF&CC) and the Central Pollution Control Board (CPCB), such as the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016. Our compliance mechanism include:

• Responsible waste disposal through certified offsite facilities in adherence to waste management regulations
• Periodic waste audits to track compliance, identify improvements and inform site-level action plans
• Defined targets for waste reduction and performance benchmarking across units
• Dedicated compliance function that monitors regulatory landscape and ensures adherence with evolving standards

Operational Waste

Downstream Waste: Generated from the use of our Products and Services

Waste Diverted from Disposal (in MT)

Waste Directed to Disposal (in MT)

Note: ‘Onsite’ means within the physical boundary or where Adani Energy Solutions has administrative control, and ‘Offsite’ means outside the physical boundary or administrative control of Adani Energy Solutions

Water is fundamental to both communities and business continuity. We manage our water footprint across all operational locations with careful monitoring of water withdrawal, consumption and discharge, particularly in the water-stressed regions. Water-Related considerations are a part of our operational planning, risk management and sustainability strategy to ensure its availability today as well as in future.

Identifying Water-Related Risks and Impacts

We proactively identify and manage Water-Related risks across all operational sites through continuous monitoring, regulatory vigilance and periodic assessments using global best practices, tools and climate science.

Climate Scenarios Considered:

• Business as usual: SSP 3 RCP 7.0
• Optimistic scenario: SSP 1 RCP 2.6
• Pessimistic: SSP 5 RCP 8.5

Key Highlights from our UpStream Value chain

Goal Setting and Public Policy Alignment

Our science-based water efficiency targets align with public policies and are informed through collaborative, multi-stakeholder engagement process. The targets are shaped by predictive modelling of climate data and consider the local water stress conditions to ensure operational efficiency for responsible usage. We actively collaborate with regulators and follow national and regional water conservation guidelines. Our water performance is assured by independent third-party to and is publicly disclosed to maintain credibility and transparency.

Water Security: Maintained ‘A-’ Leadership band

Recognising strong water stewardship, risk management and transparency in reporting

Change in Storage Capacity (used particularly for fire safety)

Building Long-Term Water Resilience

We use the insights from WRI Aqueduct 4.0 to strengthen our water storage and resilience measures, particularly in water-stressed areas. This ensures business continuity during periods of drought and water scarcity. We maintain Zero Discharge across all sites which covers both freshwater (freshwater ≤1,000 mg/L Total Dissolved Solids) and water discharge by other sources (>1,000 mg/L Total Dissolved Solids). Efficiency practices such as water reuse and zero discharge help us balance long-term operational resilience with ecological sustainability.

Water Performance in FY 2025-26

Water Consumption and Discharge

Fresh Water Efficiency

(kL/revenue in Mn ₹)

+ Read more in BRSR-Principle 6 on Pg. 470

Our Biodiversity Lens

At Adani Energy Solutions, we view biodiversity as vital to long-term business sustainability and societal wellbeing. Our biodiversity measures embed nature positive thinking across infrastructure development, guided by a biodiversity policy aligned with the India Business & Biodiversity Initiative (IBBI 2.0). Biodiversity considerations are a part of our strategic planning, business decisions, project design and operational decision-making. We apply a mitigation hierarchy centred around avoidance, minimisation, restoration and offsetting informs our transmission route planning, site selection and land use decisions. Wherever feasible, we avoid biodiversity sensitive areas and align our practices with globally recognised biodiversity frameworks.

We have set aspirational targets for biodiversity enhancement and habitat restoration, and are on track to achieve them in alignment with IBBI Principles 2.0

From No Net Loss to Net Positive Outcomes

We are committed to achieving No Net Loss (NNL) of biodiversity and progressing towards Net Positive Gain (NPG). We deliver this commitment through native species restoration, green corridor development and habitat enhancement in collaboration with conservation experts, local communities and relevant institutions. Continuous monitoring, adaptive management and employee training ensure ecological integrity, course correction, and minimise ecosystem disturbance.

Managing Ecosystem-Related Risks and Dependencies

We adopt a structured approach to identify, assess and manage nature-related risks and dependencies across our value chain. Biodiversity risks are systematically integrated within our enterprise risk management processes and embedded in strategic and operational decisions.

The biodiversity assessments cover:

Biodiversity Risk and Impact Review

Our operational activities did not cause any significant negative impact on the species listed under the IUCN Red List or the national conservation lists at our operating locations. Nevertheless, certain near threatened, threatened and Schedule 1 species have been recorded in and around our sites. These include: