Topline
Three of Adani Groupâs 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.
Key Facts
Adani Green Energy, Adani Transmission and Adani Ports & Special Economic Zone no longer appear on the United Nations-backed Science Based Targets initiativeâs (SBTi) list of âcompanies taking actionâ against climate change.
According to Bloomberg, the three Adani Group companies were removed from the list last month after SBTi concluded that they were ânot in conformityâ with the groupâs targets.
To appear on SBTiâs list, companies have to conform to the groupâs âscience-based targetsââbased on the goals set by the Paris Agreementâfor cutting back greenhouse gas emissions.
Removal from the SBTiâs 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 âbrazen stock manipulation and [an] accounting fraud scheme over the course of decades.â The company has vehemently denied Hindenburgâs allegations and has even tried to label them as an attack on India by a foreign institution. Despite this, all of the groupâs 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 âunder reviewâ earlier this year and JPMorganâs 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 governmentâs plans to embrace renewable power.
Forbes Valuation
The net worth of Gautam Adani, the groupâs founder and chairman, stands at $48.3 billion, according to our estimatesâmaking him the 24th richest person in the world. Just before Hindenburgâs allegations became public, Adani was Asiaâs richest and the worldâs third richest person, with a fortune of $126.4 billion.
Further Reading
Three Adani Firms Lose Endorsement of UN-Backed Climate Group (Bloomberg)