Adani Power Earns CARE EDGE ESG 1+ Rating with 80 Score

Adani Power Limited announced on March 24, 2026, that it received an Environmental, Social, and Governance (ESG) score of 80 from CARE ESG Ratings Limited (CareEdge-ESG). This score has earned the company a 'Care EDGE – ESG 1+' rating, highlighting its strong management of environmental and governance aspects. The company made this disclosure as required by SEBI Listing Regulations, reflecting the growing importance of sustainability metrics for listed firms.

Importance of the ESG Rating

The rating reflects Adani Power's commitment to responsible operations in the challenging thermal power sector. A high ESG score can boost investor confidence, potentially attract sustainable finance, and improve the company's reputation. It signals that Adani Power is actively managing environmental concerns and strengthening its governance, vital for long-term value.

ESG Context and Past Performance

ESG factors are increasingly critical for global and Indian investors, driving demand for transparency and accountability. SEBI's Business Responsibility and Sustainability Reporting (BRSR) framework requires major listed companies to provide comprehensive ESG disclosures.

Adani Power operates in the thermal power sector, which faces inherent environmental challenges from emissions and resource use. Maintaining strong ESG performance in this sector is crucial.

Previously, in December 2025, Adani Power received an ESG score of 65 from NSE Sustainability Ratings & Analytics, placing it in the 'Aspiring' category. The new CareEdge-ESG score of 80 indicates an improvement or a different assessment perspective.

Impact on Investors and Capital Access

This strong ESG rating could positively influence investor perception, potentially making Adani Power more attractive to ESG-focused funds.

It may also improve access to capital through green financing or sustainability-linked loans, as investors increasingly seek companies with sound ESG practices.

Environmental and Group Scrutiny

Adani Power's thermal power plants have faced scrutiny over environmental compliance, including allegations of inadequate ash utilization and potential water body contamination from its Mundra plant.

The wider Adani Group has faced separate allegations of stock manipulation and fraud, along with accusations of shifting funds from renewable energy to coal operations, claims the group denies.

While this rating highlights positive ESG efforts, continued attention is needed on adherence to environmental regulations and corporate governance, especially given the thermal power sector's inherent challenges.

Competitive Landscape

JSW Energy Limited recently reported an S&P Global ESG Score of 82 and an 'A' rating from MSCI. Tata Power Company Limited received a score of 67/100 in S&P Global's CSA and an NSE ESG rating of 64. NTPC Limited has received ratings including a CDP Water Security rating of 'C' and an MSCI rating of 'B'. Adani Power's new CareEdge score of 80 positions it competitively, though ESG ratings vary significantly by agency and methodology.

Key Operational Metrics

• Adani Power's consolidated operational capacity was 18,150 MW as of July 2025.
• Adani Power received an ESG score of 65 from NSE Sustainability Ratings & Analytics in December 2025.

Investor Outlook

Investors will monitor Adani Power's ongoing ESG performance and its impact on the company's cost of capital and investor base.

Future disclosures and adherence to environmental standards, particularly concerning sustainability goals and past scrutiny, will be key watchpoints.

The company's progress in integrating sustainable practices and expanding its renewable energy capacity will also be closely observed.