Sustainability Reporting: Current Trend & Future Scope APSEZL Sustainability 1

State of Business Vanguard Departments Competitive Dominance Production, Finance, Business Development Competitive Equilibrium Marketing, Quality, Product Innovation Competitive Decline Sales, Finance, Quality Survival at Stake Finance, Sales, Legal 2 APSEZL Sustainability Four Phases in Corporate Life – Lead Functions Where is Environment and Society?

3 APSEZL Sustainability Economic Social Environment Governance 1)Theme of Sustainability Reemphasises Centrality of Corporate Governance. 2)Reckons with Environmental & Social Responsibility. 3)Sure to benefit Corporate Risk Reduction. Intended Thrust of Sustainability Reporting

APSEZL Sustainability 4 Sustainability Report – GRI Database

1. Beauty Contest Approach; Lots of nice words and tokenism 2. Less attention to fundamentals in working; few Sustainability Enhancing Projects & Processes 3. The Fundamentals 1) Energy & Emissions – Both attitude & Technology issue. Opportunity in Renewables. 2) Water – Difficulty in Resource augmentation. Conservation stumbles on Social Conviction & Other constraints. 3) CSR – Getting attention; major issue is in Community Mobilization; Bigger Challenge in making community act for Collective Good. 4) Forest & Biodiversity – Weak offsets; low investment may not yield result; communities generally cold on this. 5) Supply Chain – May be unorganized. Not easy to train a variable set of truckers on Road Safety/Personal Health or small time mining lease operators in safe operation or environment friendly closure of mines. 5 APSEZL Sustainability Current Reporting Practice (with salutes to exceptions)

Internal Benefits of Sustainability Reporting Avoiding being implicated in publicized environmental, social and governance failures. Increased understanding of risks and opportunities Emphasizing the link between financial and non-financial performance Influencing long term management strategy and policy, and business plans Streamlining process, reducing costs and improving efficiency Increased efficiency and waste reduction 6 APSEZL Sustainability

External Benefits of Sustainability Reporting Hypotheses: 1)Improving reputation and brand loyalty o Mitigating or reversing negative environmental, social and governance impacts o Enabling external stakeholders to understand the organization’s true value, and tangible and intangible assets 2)Improved access to capital 3)Improved access to and retention of talent Quantitative & Rigorous Studies Required 7 APSEZL Sustainability

Adani Group’s Endeavours Sustainability Reporting a Recent Introduction Adani Power has Reported in GRI – G4 in 2015 covering previous year. That is in public domain. Adani Ports & SEZ Ltd to Report in GRI-G4 this year covering Milestones in Sustainability Journey of APSEZ 1.A robust digital Grievance Management Mechanism – for all stakeholders 2.Complete Carbon footprint of ports within GRI-G4 boundary viz Mundra and Hazira 3.A robust internal framework for Stakeholder Engagement and in particular a specific one for Community Engagement. 4.Implementation of Zero Waste Policy in Mundra Port 5.Some small steps for Water Conservation & Technology adoption 6.Energy Conservation done ever the years by: Tug Boat speed management, Supply of shore power, Conversion of Gantry Cranes to electric energy source and others. 8 APSEZL Sustainability

Thank You APSEZL Sustainability 9