Dear Stakeholders,
Recent global events, both related to the
pandemic and climate change, have exposed
chinks in our present development model
and brought to the fore an urgent need to
address the United Nations Sustainable
Development Goals. We believe that a
sustainable energy system is a sine qua non
of sustainable development and that India
has made significant progress in increasing
the share of renewable energy sources in
the country’s energy portfolio. India is also
aware that further increase in the share of
renewables in the electricity mix, requires
deep structural changes in regulation and
policy, in technology and finance, in skills and
in grid management and a general all-round
improvement in the entire related ecosystem.
Deep Decarbonization
to Net Zero
If global warming is to be limited to 1.5
degrees centigrade, by 2050, carbon
emissions have to come down drastically. To
achieve the objective of a sustainable future,
every organization must reach net zero, by
either curtailing their emissions or by actively
removing carbon from the atmosphere or
doing a combination of both. Greenko has
been a votary of sustainable development
and climate action. It has recently committed
to Climate Pledge and will be a ‘Net Zero’
company by 2040. Greenko also facilitates
a smoother and effective transition of other
businesses in India towards its ‘Race to Zero’.
Greenko’s business philosophy has been to
lead ‘Decarbonization, Digitalization, and
Decentralization’ of India’s Energy Sector.
Towards this end, Greenko has made a
strategic shift from being a mere renewable
energy producer to being able to address the
challenges of delivering reliable renewable
power, on demand, through a balanced
combination of Intelligent Energy Platforms
and Pumped Storage Systems (PSP). This
will result in deeper decarbonization, leading
to long- term energy security and economic
stability for all stakeholders. Greenko is
growing its portfolio of energy sources
through PSP systems and investing in zerocarbon
molecules, leading the momentum
towards decarbonization of ‘hard-to-abate’
industrial sectors. We believe that this
transition is a major route to build an Energy
Independent India by 2047.
Global annual investment in clean energy
infrastructure is expected to increase from
around 290 billion USD over the past five
years to about 880 billion USD in 2030. Annual
investment in low-carbon technologies in
end-use sectors rises from 530 billion USD in
recent years to 1.7 trillion USD in 2030. The
energy and industry transition to Net Zero
is very capital intensive and requires large
patient capital. For emerging and developing
economies to attract international finance
will require improvements in regulatory
and policy frameworks that facilitate the
international flow of long-term capital to
support the development of both new and
existing clean energy technologies.
Paris Climate Agreement and the Market
Mechanisms under Articles 6.2 and 4 may
support a carbon price that enables this
transition to begin and scale up. Countries
that speed up the processes to harness the
opportunity in Paris Climate Agreement and
channel the investments to right transition
projects may garner early capital and build
momentum
Greenko has articulated
its ESG framework and
augmented its ESG risk
management. Greenko
has internalized ESG and
‘Integrated Thinking’,
centered around multicapital
value-creation
model. Internally, progress
is measured through KPIs
depicting the achievement
of ESG objectives.
New Normal of
Stakeholder Trust
One constant at Greenko has been its
adherence to a code of conduct and
foundational values on which Greenko’s edifice
has been built. This unwavering commitment
to values in the evolution of Greenko’s
business activities and its business model has
been a source of continued stakeholder trust
in Greenko.
Last year, a Dutch court order required Royal
Dutch Shell to cut its emissions including
from its use of products by 45% by 2030 from
2019 levels and Chevron shareholders, with
the support of worlds’ largest investment
fund manager, approved a resolution requiring
the company to curb the emissions created
using the company’s products. It is now clear
that the judiciary, investors, and others are
demanding ‘extended producer responsibility’
beyond applicable regulations. Such instances
are not limited to climate change only and are
increasingly covering other ESG factors such
as Circular Economy, Diversity, Equity and
Inclusion, Agility and Innovation, Digital and
Cyber Security, etc, that have a linkage to the
company’s ability to sustainably create value.
Our main shareholders, GIC, ADIA and ORIX,
view Environmental, Social, and Governance
(ESG) factors, as central to their core tenetsand believe that companies with innovative,
creative mindset and good sustainability
practices are more likely to perform well
in the long term. Greenko has articulated
its ESG framework and augmented its ESG
risk management. Greenko has internalized
ESG and ‘Integrated Thinking’, centered
around multi-capital value-creation model.
Internally, progress is measured through
KPIs depicting the achievement of ESG
objectives. Going forward, Greenko will link
the ESG performance to the remuneration of
its leadership.
Good Governance
During 2020-21, the Board and its committees
have been active, despite the challenges
posed by the pandemic, in guiding the
management to face new challenges of
growth and transformation. Mutual respect,
trust, and candor have always been core
to the Board function. The Board has been
apprised of the SoPs that are being followed
in operations during the pandemic. The Board
continued its deliberations on the company’s
transformational strategy to harness the
opportunities arising out of ‘Energy Transition
in India’ and regularly reviewed strategy
and capex deployment. As the company is
treading into innovative technologies, novel
partnerships, and new markets, the risks are
diligently identified, mitigated and appropriate
provisions made for residual risk.
Greenko’s value creation story, delineated
in this report, is about opportunity for India
to harness new energy transition to Make
India ‘Energy-Independent’ by 2047 and
build ‘AatmaNirbhar Bharat’. The company is
excited about the congruence of opportunity
for India and itself and will be keen to listen
to stakeholders’ concerns and suggestions.
Om Prakash Bhatt
Chairman
