Leading Climate and Environmental Stewardship

ATGL views climate change as a material factor significantly impacting long-term resilience, competitiveness, and value creation potential. However, we also recognise it as an opportunity to lead the transition towards a low carbon economy. Climate considerations are embedded into our overall business strategies, investment decisions and risk management processes to navigate emerging climate challenges effectively. Our climate adaptation and mitigation plan is informed by the physical and transition risks and is monitored through measurable science-based climate goals and targets.

In alignment with IFRS S2/TCFD framework, we conducted a comprehensive climate risk assessment in FY 2024-25. The assessment helped us identify, assess and manage climate-related risks and opportunities across our upstream, downstream and own operations. The approach is guided by four core pillars: Governance, Strategy, Risk Management and Metrics & Targets. The assessment evaluated both physical and transition risks across short, medium and long-term time horizons, using globally recognised climate scenarios and pathways. These scenarios are crucial to assess the vulnerability of our assets and operations under climate stress and comprehend potential long-term financial implications. The findings directly shape our business strategy and adaptation & mitigation plans, including capital deployment and resource prioritisation for long-term operational resilience.

The financial implications of risks and opportunities are integrated into ATGL’s strategic planning, driving its transition to a low-carbon economy and supporting its operational Net Zero emissions target by 2045.

ATGL’s climate risk-aligned roadmap is designed to accelerate progress towards a low-carbon and climate-resilient future.

Our E-Mobility and Compressed Biogas (CBG) businesses are offering sustainable mobility and low-carbon energy solutions to the broader communities.

02 CBG plants with a combined capacity of 13 tonnes have been commissioned, while 1,765 electric vehicle charging stations are now operational. These ventures broaden access to low-carbon energy while supporting wider adoption of alternative fuels.

We have been progressively installing captive solar plants to integrate renewable energy into our operational framework and reduce dependency on conventional power sources, lowering overall GHG emissions.

To reduce GHG footprint of our logistics mobility, we have transitioned all owned and contracted vehicles from HSD to CNG, cutting down on GHG emissions significantly.

We are accelerating cleaner fuel alternatives by blending hydrogen into the natural gas supply to reduce emissions. We are also evaluating alternatives such as carbon offsets, and technologies that offer permanent carbon neutral/ offset solutions, based on their effectiveness and alignment with nation’s readiness.

In Ahmedabad, a pilot introduced a 2% hydrogen mix into the PNG distribution system, targeting up to 8% blend. The pilot is expected to reduce emissions by ~4% in the test geography and will guide future scale-up.

Our Leak Detection and Repair (LDAR) enables early detection and control of any methane leakages which are accounted under our Scope 1 emissions.

As part of Adani Group’s pledge to grow and conserve 100 million trees by 2030, we conduct mass plantation which also act as natural carbon sinks.

We are exploring offset opportunities through credible and high-quality carbon credits from the Varanasi Smart City Bio-Conversion project (registered under Verra’s Verified Carbon Standard) and the ATBL Bio-CNG projects (registered under the Gold Standard for the Global Goals).

ATGL has implemented an Internal Carbon Pricing (ICP) mechanism to capture the financial implications of emissions in business decisions. The framework enables us to factor in carbon costs while evaluating projects, investments, operational choices, and overall decision-making, strengthening our preparedness for evolving climate regulations.

At ATGL, we are reducing our energy footprint through high-efficiency technology with data-driven optimisation across our City Gas Distribution (CGD) framework.

Grid Electricity and fuel used in compressors at gas dispensing facilities are the primary drivers of energy consumption. We are minimising it by integrative smart solutions across our CGD operations, including:

Rigorous energy audits across our sites, quantified energy targets and employee training institutionalise ‘Efficiency-First’ culture:

Note:

88.26% of our value chain emissions are from categories ‘Use of sold products’ category which was 98.40% in FY 2024-25. We currently report our value chain emissions across the following Scope 3 categories:

Note: The other Scope 3 categories are not applicable for ATGL business and hence are not reported in the table above.

Fuel combustion in compressors at gas dispensing facilities, vehicular exhausts and dust emissions in certain activities are the major sources of non-GHG emissions. We have already replaced high Ozone-Depleting Potential (ODP) and high Global Warming Potential (GWP) refrigerants in our HVAC systems with sustainable alternatives. We are mapping and quantifying these emissions to ensure accurate reporting and drive continuous improvement in environmental performance.

Note: Air emissions data covers point source stack emissions from the Company’s relevant operating locations, including Ahmedabad, Vadodara & Faridabad.

To promote sustainable greening, we planted a total of 856 saplings of water-containing trees using Rakshak Self-Watering Tree Guards. This innovative system ensures:

We implement waste management framework rooted in 5R philosophy to minimise environmental footprint, strengthen compliance and improve resource efficiency. This approach is guided by robust policies, well-defined procedures and efficient monitoring systems. We have set quantified waste reduction targets to prioritise waste avoidance, material recovery and circularity across operations. Circular economy principles are also embedded into daily operations and supply-chain practices, ensuring consistent implementation across the organisation’s footprint.

Our commitment to circular resource management is backed by rigorous monitoring and quantified targets:

Our waste streams are managed through structured processes in compliance with applicable waste management rules.

Our biodiversity blueprint is aimed at not just protecting nature but giving back more than we take by 2030.

Our Board-approved Biodiversity Policy reframes our relationship with the nature. We do not view ecosystems merely as resources, but as partners in progress. This policy establishes a rigorous framework for assessing, managing, and mitigating potential risks across our operations. Our structured hierarchy of mitigation involves preventing ecological impacts as the first line of defence. Where impacts cannot be fully avoided, we try to reduce them and undertake restorative measures, including habitat restoration and large-scale plantation drives. We have also introduced a biodiversity integration framework, covering ten key areas ranging from incorporating biodiversity into Environmental Management Systems to engaging stakeholders in conservation programmes.

Biodiversity risks are integrated into our Enterprise Risk Management (ERM) framework for continuous oversight and systematic management.

ATGL undertakes extensive tree plantation activities to create natural carbon sinks, reduce GHG concentrations and enhance climate resilience. We plant trees as part of our Greenmosphere and Revival of Roots projects, consulting and engaging with the local authorities and communities throughout the execution and maintenance phase.