Climate change continues to pose a significant risk to society, our planet, and the future. The focus so far has rightfully been on renewables and efficiency improvements to address climate change and the reduction of emissions. Yet, renewable energy can only reduce 55% of global GHG emissions and leaves a 45% gap to reach global climate ambition. As we have been witnessing, the in-firm renewables can only marginally affect the shift away from carbon-intensive energy. We, at Greenko, envision the use of firm and flexible renewable power to achieve deep decarbonization and reduce GHG emissions by 55 %. Bridging the 45% gap requires a disruptive transformation. We need to reimagine the ways we generate and deliver goods and services. The circular economy that closes the productionconsumption cycle has the potential to bridge the gap of the remaining 45 % of GHG emission reductions to reach the net-zero GHG emissions by 2050. And we at Greenko, as you have seen through the report, have made significant advances in circular business models, extending the life and managing the end-of-life of our assets. Some steps, at the design, planning, and procurement stages of new assets are being pursued in the right earnest. Our new initiative of modernizing 500 wind turbines is an important circular initiative of reengineering to extend life. More importantly, our new projects in pumped storage and intelligent energy platform are ‘sharing models of circular economy’ delivering firm and flexible electricity and ‘electricity plus’ services to various stakeholders of the electrical system.
This transformation of renewables to firm power at utility-scale will become the mainstay in powering India to sustainable development. Renewable power displacing oil and gas - in industry, power, and transportand coal-in industry and power- would contribute to the energy security and economic stability of India. Greenko, from its inception, has been contributing to sustainable development and its scale and extent have changed as it progressed. Presently, its scale and size; expertise and access; make it possible to address the challenge of powering India’s growth with clean, reliable, and affordable electricity and also to achieve energy security and financial stability. Our business directly contributes to UNSDG 13- Climate Action and UNSDG 7- Affordable and Clean Energy and UNSDG 12-Responsible Consumption and Production goals. We recognize that the planet is at the brink, as argued in the recent ‘Living Planet Report 2020’, and we have to re-envision our relationship with nature. We will contribute to the conservation and restoration of nature at our sites and across the interconnected planet.
Investors across the globe are excited about the multitude of benefits that firm and flexible RE presents. This is evidenced by the infusion of USD 824 million equity into our company and the successful issuance of green bonds of USD 1,035 million. The former one had “Honourable Mention” by Asian-mean Counsel 2019. A recent report Making Green Bonds Work: by Oxfam mentions that Greenko has been very effective and diligent in delivering environmental and social benefits. As always, Greenko will address investor expectations to the letter and spirit. The resurgent investor and stakeholder alignment could enable India to provide clean, reliable, and affordable electricity to power growth, ensure energy security, affect economic stability, and drive deeper decarbonization. The policymakers and regulators have recognized the opportunity and are architecting a new energy policy ecosystem to incentivize #AtmanirbharEnergyForIndia.
While contributing to deep decarbonization, we also realize there will be physical climatic changes that would occur and are occurring, and it would impact our business as it is dependent on the climate. This year we have begun addressing transition and physical risks of climate change to our business. We would supplement these efforts in the coming years to improve our climate risk disclosures.
Through the report, you may have already noticed the convergence of multiple initiatives towards organizational development, which is critical for successful Greenko 3.0 &4.0. The empowerment model and People- Process-System are now supplemented and reinforced by the spread of a) Integrated Thinking which aligns each employee to the organizational goals; b) Innovation Hub architecting pathways for doing things in different ways; c) Digitalization helping the seamless flow of information and analytics and finally d) Assurance of systems and processes to ensure that the organization adheres to standards and quality.
Greenko will continue to curate its business efforts to contribute towards sustainable development and delivering value to all stakeholders. In this endeavour, stakeholder/s continued engagement is extremely valuable. My colleagues and I will be eager to listen to your concerns and suggestions.
President & Joint Managing Director