Topline
Three of Adani Group’s publicly traded companies have been removed from an influential list of companies committed to acting against climate change, marking the latest blow against the crisis-ridden Indian conglomerate, which has repeatedly touted its green credentials in recent years.
Adani Corporate House in Ahmedabad, India.
Key Facts
Adani Green Energy, Adani Transmission and Adani Ports & Special Economic Zone no longer appear on the United Nations-backed Science Based Targets initiative’s (SBTi) list of “companies taking action” against climate change.
According to Bloomberg, the three Adani Group companies were removed from the list last month after SBTi concluded that they were “not in conformity” with the group’s targets.
To appear on SBTi’s list, companies have to conform to the group’s “science-based targets”—based on the goals set by the Paris Agreement—for cutting back greenhouse gas emissions.
Removal from the SBTi’s list is likely to make the three listed firms less attractive to ESG investors, worsening the situation for the conglomerate that has spent most of the year battling fraud allegations from activist investor Hindenburg.
Adani has reached out to SBTi and expects its removal to be reviewed and reversed, the company told Bloomberg.
Key Background
The Adani Group has been embroiled in controversy since January after short-seller Hindenburg Research published a report accusing the conglomerate of engaging in “brazen stock manipulation and [an] accounting fraud scheme over the course of decades.” The company has vehemently denied Hindenburg’s allegations and has even tried to label them as an attack on India by a foreign institution. Despite this, all of the group’s listed firms have seen a steep drop in their share price since the start of this year. The fallout of the Hindenburg report has impacted ESG investments in the conglomerate, with S&P Global placing the ESG evaluation of Adani Transmission “under review” earlier this year and JPMorgan’s investment arm completely wiping Adani from its ESG portfolios. This is a major blow to a company that has repeatedly touted its green initiatives and is seen as a key figure in the Indian government’s plans to embrace renewable power.
Forbes Valuation
The net worth of Gautam Adani, the group’s founder and chairman, stands at $48.3 billion, according to our estimates—making him the 24th richest person in the world. Just before Hindenburg’s allegations became public, Adani was Asia’s richest and the world’s third richest person, with a fortune of $126.4 billion.
Further Reading
Three Adani Firms Lose Endorsement of UN-Backed Climate Group (Bloomberg)
Source: https://www.forbes.com/sites/siladityaray/2023/05/09/adani-firms-dropped-from-un-backed-list-of-green-firms-in-latest-blow/