Three Adani Group Firms Removed From UN-Backed Climate Group

Three Adani group companies, including Adani Green Energy Ltd, have lost their endorsement from the world's leading arbiter of corporate green goals, a blow to the industrial conglomerate's attempt to reposition itself as a leader of India's energy transition, according to a Bloomberg report.

Adani Green, Adani Transmission Ltd and Adani Ports & Special Economic Zone Ltd were removed in late April from the list of "companies taking action" published by the Science Based Targets initiative, stated the Bloomberg report.

These Adani group companies have been ousted from the United Nations-backed Science Based Targets Initiative's (SBTi) list of "companies taking action" against climate change. The UN-backed group helps companies in establishing concrete plans to reduce emissions in keeping with the Paris Agreement's target to curb global warming.

An SBTi spokesperson was quoted as saying by Bloomberg: "The SBTi carried out an internal assessment based on publicly available and submitted information and concluded that the involved companies are not in conformity" with its standards and policy requirements. Two other Adani companies-Ambuja Cements and ACC, however, have retained their place on the list.

Sustainability-minded investors commonly look for SBTi's stamp of approval, and stocks bearing the Adani name appeared in more than 500 ESG funds in early February. That same month, a filing revealed the Adani group was using stock from Green companies as collateral to help finance its controversial Carmichael coal mine, added the Bloomberg report.