Ahmadabad: We are disappointed by MSCI’s decision to drop Adani Ports and Special Economic Zone (APSEZ) from some of its Climate Change indices.
APSEZ has been far ahead of its industry in stating publicly, more than 15 months back, its absolute commitment to achieving carbon neutrality by 2025. In addition, we are also committed to the SBTi (Science Based Targets Initiative).
In response to an ESG Controversy Report from MSCI in Q3, APSEZ had clarified to MSCI that it never had any shareholding in the Carmichael mine and that it had already divested its stakes in both Bowen Rail and NQXT (North Queensland Export Terminal). We had also sent a reminder to MSCI on the matter. However, MSCI has not bothered to either incorporate the facts or provide an appropriate response to APSEZ.
MSCI’s decision appears to be playing right into the hands of forces that want to subvert the green initiatives to which the Adani Group has made massive public commitments and tarnish the reputation of one of the leading green port operators of the world. Email communication of 9 September accessed from the website of Market Forces Australia, which has been stridently campaigning against Adani businesses, reflects that MSCI has already informed them as to how APSEZ’s exclusion from the indices is being structured. This is an attempt to undermine APSEZ’s legitimate business interests.
We are taken aback by the untransparent methodology MSCI has adopted, given that APSEZ was included in MSCI’s indices when it was holding these stakes and was removed from the indices after these stakes were divested. While we are disappointed with such an opaque process, we stay completely open to engaging with our investors and with MSCI to ensure complete alignment on the sustainability agenda.
APSEZ’s management has constantly engaged with various stakeholders, particularly sustainability-focused investors and ESG rating agencies, and has been acting on the inputs received from them. We are confident that our standing is strong with investors, given our ability to consistently create value for our shareholders and all other stakeholders.