Mahagenco

Mahagenco does not have a decarbonisation target that could be assessed. The company plans to reduce emissions by about 27% by 2030 compared to 2005; however, it does not clarify the scope of emissions covered by this target. The company has committed to net-zero emissions by 2050, but this ambition is not backed by a detailed transition plan. The company should set intermediate targets no more than five years apart to incentivise near-term action on its long-term goals. It should also clearly report its base year emissions and any offsets it intends to use to allow for a complete analysis of its targets and progress against them.

The company’s emissions intensity trend decreased between 2017 and 2020 but started increasing again between 2020 and 2022. Based on forward-looking projections of its assets, the company’s emissions are expected to stay at approximately the same level by 2027. Although the company has set targets to increase its renewable energy capacity, coal will continue to make up the majority of its energy source. The company must accelerate its investment in a low-carbon transition to achieve significant emissions reductions and align with its 1.5°C pathway by 2027.

Mahagenco does not mention climate change in its annual report. It also lacks a transition plan and does not indicate any intention to publish one. Despite having net-zero ambitions, no evidence was found of the company having any management leadership or concrete plans to deliver this objective. To avoid deviating further from its 1.5°C pathway, Mahagenco should acknowledge climate change, implement oversight of climate change issues, and introduce a transition plan that includes verifiable and quantifiable key performance indicators and financial commitments towards decarbonisation.

Mahagenco has set a target to reduce emissions by 26% below 2005 levels by 2030; however, it does not clarify the emission scopes covered by this target. The company has also set a net zero by 2050 target but does not provide further details on this.

The company does not provide any details on a low-carbon transition plan, except for reporting some priority areas, which include clean hydrogen, ultra low-cost solar power and energy storage.

Mahagenco commissioned 232 megawatts (MW) of energy from solar projects and plans to get 1,400 MW per year from solar power by 2025, which will make up more than 10% of the company’s current installed capacity. Currently, solar power accounts for 1% of company’s total capacity. However, Mahagenco also has three new thermal projects under planning.

The company’s emissions intensity decreased between 2017 and 2020 but has started increasing again. Based on forward-looking projections of its assets, the company is not projected to reduce its emissions intensity by 2027. However, the company must reduce its emission intensity by approximately 35% to align with its 1.5°C pathway in 2027. The company does not report its capital expenditure (CapEx), including investments in low-carbon technologies.

Although taking some steps towards decarbonisation, like increasing its solar power capacity, the company remains highly reliant on coal, plans to extend coal facilities and does not propose a low-carbon transition plan. Its overall lack of action calls into question the credibility of the company’s ambition to become net zero by 2050.

No evidence was found showing the company’s commitment to social dialogue or disclose the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks. No public commitment by the company was found stating its intention to re-skill and up-skill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company re-skills and up-skills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

No policies or commitments from the company related to respect for human rights were found in the public domain. This includes the necessary policies and systems by which the company can ensure respect for basic human rights in its operations and supply chain.

The company commits to respecting the health and safety of its workers. However, no other evidence of the company’s policies or commitments related to key decent work issues were found in the public domain. These issues include the provision of secure, safe and healthy workplaces, where workers are fairly renumerated and have a meaningful say in decision-making.

No policies or commitments of the company related to key ethical business topics, personal data protection, tax, bribery and corruption, and lobbying and political engagement were found in the public domain. This includes ensuring ethical business conduct throughout its operations and in its relationships with business partners.