19 March 2021
S&P Global has responded to a case put forward by 37 organisations by agreeing to undertake a review into the inclusion of Adani Ports and Special Economic Zone in the Dow Jones Sustainability Index (DJSI).
After receiving the case on Wednesday 17 March (see coverage), S&P responded to Market Forces on 18 March with the following:
“We have escalated this to the relevant Media and Stakeholder Analysis Analyst.”
According to the DJSI methodology, companies may be deleted from the index between annual reviews if through the media and stakeholder analysis (MSA) the index committee decides the company is no longer behaving consistently with corporate governance standards.
A staff member of S&P’s Switzerland office told Market Forces that the process would take at least two weeks.
Pablo Brait, campaigner at Market Forces said: “S&P’s immediate response is what we would hope and expect considering the concerning evidence we presented. It is inconceivable that a company working on a massive thermal coal mining expansion and with business links to the Myanmar military could be considered sustainable. We call on S&P to be transparent about its review process and to allow impacted communities and other stakeholders to respond to any claims made by Adani.”
“While we’re glad that there is an opportunity for Adani Ports to be held accountable for its actions, the best outcome would of course be that Adani Group ceases its destructive and unsustainable activities. As long as the Adani Group continues to pursue the Carmichael coal mine and the Yangon Port development it should not be granted any sustainability accolades.” Mr Brait concluded.