Home > Investor Briefing: Adani Ports to haul Carmichael coal, exposing investors to reputational & financial risks

Investor Briefing: Adani Ports to haul Carmichael coal, exposing investors to reputational & financial risks

22 October 2020

22 October 2020

Market Forces has compiled this briefing paper to inform existing and potential investors in Adani Ports and Special Economic Zone (Adani Ports) of the company’s establishment of Bowen Rail Company, which will transport coal for the controversial Carmichael thermal coal project in Australia. 

This move into coal haulage exposes investors to substantial financial and reputational risks. Adani Ports already exposes investors to the risks of Adani’s coal supply chain operations. Continuing to invest in Adani Ports now means investors are contributing funding to what is possibly the world’s most controversial and contested coal project. 

Institutional investors pursuing Paris alignment in their portfolio or avoiding new thermal coal projects are urged to rule out and/or reconsider any holdings in Adani Ports or provision of financial services to Adani Ports and communicate their concerns to the company, given the following risks:

  • Reputational risks
    • The Adani Carmichael coal project is arguably the most controversial coal mining project in the world. It has faced ten years of sustained local and global opposition due to its significant cultural, ecological and climate impacts, including:
    • Adani Ports’ “low risk” ESG rating is threatened by its expansion into coal haulage for Adani’s Carmichael mine due to both governance issues around risk disclosure and environmental issues associated with facilitating the opening up of a massive untapped thermal coal basin. 
    • Every company associated with the Carmichael coal project faces major community opposition, with over 80 international banks, insurers and contractors having publicly ruled out any support for the project. 
  • Transitional climate change risks
    • Adani Ports already operates the world’s largest coal import terminal. Its move into coal haulage services for the Carmichael coal project increases the company’s exposure to thermal coal at a time when institutions are reducing such exposure in line with the Paris climate goals.

Download the full investor briefing here

Take action: tell Adani Ports’ bankers that their commitment to not support the Carmichael coal mine means they must ditch Adani Ports.