Intellectual Capital

Message from COO

Greenko recognizes that the accumulated GHGs in the atmosphere and the additions till 2050 will effect changes in the climate.

Dear Stakeholders,

In recent years, we have been witnessing the risk of a changing climate more vividly displayed across the continents through an increase in heat stress, precipitation, and consequent flooding, more frequent and intense cyclones and hurricanes, and spreading forest fires. The scale, magnitude, and extent of damage of these events

are certainly galvanizing attention to the urgency for climate actions. The United Nations Intergovernmental Panel on Climate Change published two special reports in 2019, both of which warned about severe consequences of changing climate. Its intensity is anticipated to be much more in comparison to what is estimated in the 2015 Paris Agreement, particularly in the instance of 2 degrees temperature scenario.

At Greenko, from the inception, combating climate change is the salient purpose of our business. Our asset portfolio of renewables, during the reporting period, has avoided 8.2 Million tons of CO2 emissions. We understand the limitation of infirm renewables to displace nonrenewables that generate firm power and have some flexibility. To overcome this barrier, we are harnessing digitalization and deploying the Intelligent Energy platform and putting together multiple pumped storage projects located and designed strategically across the country to harness different value pools in the electricity system. This initiative aided by the evolution of a favourable policy ecosystem to deepen decarbonization and technological developments in renewable energy that brought in price parity of generated electricity will deliver clean electricity.

Our founders at the time of inception and thereon, always reminded us that the renewable electricity system can only be part of the solution. It can only reduce the emission by 55% by 2050, as eloquently argued by Alen Macarthur Foundation. The NET ZERO target is achievable only if non-electric uses are addressed and circular economic approaches are adopted. Many elements of Greenko 4.0, would address this challenge by working with industry and business to address their climate targets viz., Science-Based Targets, or RE 100. Further, Greenko is exploring the role it can play in renewable electrification of the transport sector. The decarbonization of the electric system and electrification in the manufacturing and transportation sector will still leave a gap to achieve NET ZERO by 2050.

It is for this reason, the leadership of Greenko included a circular economic strategic approach in our value creation model, beginning this reporting period. We have explored circular value pools across our business by deploying a life cycle approach to business. Circularity at Greenko is harnessed at three levels. The first is the deployment of Sharing Business Models. Our IRESP projects are major sharing platforms of storage and other electricity system services. We have been working and implementing the sharing generation asset model as also sharing of resources on the margins of the electricity grid. Our next circularity approach is Circular Choices. During the reporting period, we have exercised caution while designing and making equipment choices keeping in mind how and how long these assets will deliver value. This renewed focus on extending the asset life has now become a salient part of our asset management. Further, our teams are including circular approaches in SOPs of design, procurement, and asset management. To extend the life and enhance the performance of some of our wind assets, modernization and upgradation of 500 wind turbines is initiated during the reporting period. The third and final element of Circularity at Greenko is Managing the End of Life of asset and ‘everything else’. Managing ‘everything else’ at the end-of-life was practiced always by our waste management team. They are now charting out ‘second life’ for each of our assets and their parts at their end of life in the assigned role. They are also recording the final disposal of material post its ‘second life’.

Greenko is committed to making decarbonization- NET ZERO by 2050, a reality, and will continue to have this as a purpose of the business. Our Climate Vision 2050, include Only Renewable Assets, Decarbonise Electricity grid, Electrify Energy, and Circular Electric Systems

Further, Greenko recognizes that the accumulated GHGs in the atmosphere and the additions till 2050 will effect changes in the climate. Our assets and their generation could be impacted and it could have a financial implication. Also, the transmission infrastructure may be impacted due to extreme weather events that may disrupt infrastructure or significant short-term changes in electricity demand. We have mapped the physical climate changes that could occur across our sites and the impact on the business. We have also charted out the climate risk mitigation plan which includes engineering measures, changes in standard operating practices, and insurance. We would also make the climate risk a constituent of Enterprise Risk Management in the coming years. The assessment of climate risk to generation assets, T&D infrastructure, and electricity demand, would also inform our choices of locations in our growth.

Further to reinforcing natural capital through climate stewardship and circularity, we have made significant strides in intellectual capital through innovation hub interventions and IR conclave. At IR conclaves, last year, the IR champions shared success stories as to how the teams are contributing to the strategic goals of the company and all the six capitals. In this reporting period, six innovation hub sessions were conducted and 150 participants, in 24 groups generated 240 ideas in different functional areas such as engineering and design, business deployment, asset management, procurements, quality, etc. Our digitalization teams are involved in deploying sharing platforms (IEP). They are also extending the deployment of systems to improve asset management by predictive maintenance, remote monitoring and intervention, commercial activity through scheduling and forecasting, and decision making by making real-time information being available at decision points. We believe that organization development through Business Excellence, Digitalization, Innovation, and Systems Assurance is critical for the transformational journey of Greenko.

Our performance and progress on intellectual and natural capital are critical to the generation and distribution of value amongst stakeholders. We are sanguine to engage with you to understand your concerns and expectations with regard to our business and sector.

Mr. Nagendra Dandamudi

Chief Operating Officer - Organisation Development

Strategic Approach

Digitalization and innovation are at the heart of Greenko’s transformation towards decarbonization and decentralization. The greatest transformational potential for digitalization is its ability to break down boundaries between energy sectors, increasing flexibility and enabling integration across entire systems. The result of which is already witnessed globally through improvement in productivity, delivery of firm renewable power, smart demand response, and accessibility.

To harness this potential, Greenko continues to scale up on its innovation and digitization efforts, working towards transforming renewables to reliable, schedulable, and flexible energy through building an Intelligent Energy Platform and Pumped Storage projects for the firm and RTC energy generation, investment in advanced analytics, Internet of Things (IoT) and deployment of systems to improve asset management by predictive maintenance, real-time remote monitoring, and intervention.

To preserve and enhance value creation of its Intellectual capital, Greenko adopted the following effective strategic approaches viz., Integrated Management Systems and Continual Improvement, Innovation for differentiation, Technology Adoption, Business Process Standardisation. A review of performance on various indicators of intellectual capital demonstrates Greenko’s readiness for effectively establishing an Intelligent Energy Platform which will significantly contribute to the circularity of the economy.

Strategic Direction: Preserve and Enhance Innovation and Systems

Integrated Value Creation in Intellectual Capital

Journey so Far

The myriad of challenges associated with decentralization of the energy system, in the form of power quality, flexibility, reliability, improving asset level visibility as well as issues related to cyber security, implementing and integrating variable energy resources, and many more, can be effectively addressed and harnessed through rapid deployment of digitalization and innovative technological advances. In this context, in the current reporting period, Greenko continued to invest in capabilities and expertise that drive the development of technology-enabled and innovative solutions in order to meet the needs of an evolving energy market.

For this purpose, Greenko developed and established in this reporting period a comprehensive Organisation Development process, which encompasses the four key elements that govern its intellectual capital, to build capability and achieve excellence by developing, improving, and reinforcing strategies, structures, and processes. Greenko believes that organization development through Business Excellence, Digitalization, Innovation, and Systems Assurance is critical for its transformational journey. Therefore, the performance of the intellectual capital against these four key elements is monitored and enhanced continuously.

Greenko’s Organisation Development Model

GIMS Focused areas

The scope of Greenko Integrated Management System includes certification, auditing, training, implementation and reporting of Integrated Management System (IMS), Environment and Social Management System (ESMS), Green Company Rating System, Integrated Reporting as well as awards and recognition.

The group has deployed diverse systems and associated processes across its operations for project management, asset management, information management and sharing, forecasting and scheduling energy generation, real-time monitoring and control of asset performance, surveillance, etc. All these systems and processes are integrated and managed under GIMS.

In order to achieve robust performance management and continuous improvement, the deployed management systems and processes are periodically and consistently audited to ensure adherence and effective outcome. The IMS audits are conducted by both internal cross-functional parties and externally. The audit findings are promptly corrected through measures of continuous improvement, upgradation, and advanced technology adoptions.

In the current reporting period, EHS, GIMS, PPS (People, Process, System), OHS, GAM (Greenko Asset Management), and ESMS (Environmental and Social Management system) audits were conducted across portfolios. Contributing to the continual improvement, corrective actions were taken for the audit observations.

GIMS Audit Results across BUs

Certification of sites and functions against GIMS

Value Creation Story