NTPC

NTPC aims to reduce its scope 1 and 2 emissions by 17% by 2032 compared to 2012. However, this target could not be assessed for alignment with a 1.5°C pathway as it is unclear whether NTPC plans to use offsets, and if so, what percentage of the target will be achieved through these offsets. NTPC should set intermediate targets at gaps of no more than five years to incentivise near-term actions on its longer-term goal. It should also clearly report base year emissions and activity data, as well as any offsetting it intends to use, to allow for a complete analysis of its targets and progress against them.

NTPC’s emissions intensity trend remained relatively static between 2017 and 2022. To align with its 1.5°C in 2027, NTPC must reduce its emissions intensity by about 9% per year. NTPC is projected to significantly exceed its total 1.5°C carbon budget for the period 2022-2037 due to its continued high reliance on coal. Coal is projected to account for about 73% of NTPC’s energy generation in 2037. Although the proportion of the company’s coal-fired generation is projected to decrease between 2022 and 2027, this is insufficient to align with its 1.5°C pathway in 2027 and will in part be offset by growth in the proportion of gas-fired generation.

NTPC has implemented board-level oversight of climate change; however, there is no evidence that members of this board committee have any low-carbon expertise or transition experience. NTPC demonstrates elements of transition planning but does not have the intention to develop a separate transition plan. Despite reporting intentions to align with India’s net zero by 2070 objective, NTPC lacks a net-zero target. Further, the company’s aim to achieve 60 GW of renewable energy capacity by 2032 is not supported by financial commitments. NTPC should establish a time-bound action plan informed by scenario analysis to ensure its ambition is sufficient to align with a 1.5°C pathway.

NTPC aims to expand its renewable energy capacity from about 7 GW currently to 60 GW in 2032 and has a low-carbon business model which aims to develop hydrogen production capabilities from the electrolysis of seawater. It also aims to produce hydrogen from renewable sources, supply electric buses, plant 10 million trees to create an 884-acre Mega Eco Park at Badarpur in India, and use CCUS technology to produce methanol. NTPC needs to outline its pathway to achieve its wider low-carbon objectives, transparently report supporting financial information, and disclose how it will transition away from its current reliance on coal and fossil gas.

NTPC has set a target to reduce its scope 1 and 2 emissions intensity by 17% by 2032 compared to 2012. It has also set a target to lead the development of an 884-acre public park by planting 10 million trees by 2026 in Badarpur, in the state of Maharashtra in India.

NTPC reports elements of a transition plan, including discussing the aim of expanding its renewable energy capacity to 60 GW by 2032. The company states it aims to align with the Government of India’s objective to achieve net-zero emissions by 2070 and 50% cumulative electricity capacity from non-fossil sources by 2030, but it does not explicitly report these targets for the company itself.

NTPC has almost 7 GW of solar, wind and hydroelectricity generation capacity. However, fossil fuels account for about 96% of NTPC’s own energy generation. In the financial year 2022-23, less than 2% of NTPC’s revenue originates from low-carbon products and services. NTPC has business models associated with green hydrogen production, the development of seawater electrolysers for hydrogen production, and afforestation. NTPC reports spending only about 16% of its capital expenditure (CapEX) on low-carbon technologies in the financial year 2022-2023.

NTPC’s emissions intensity trend remained relatively static between 2017 and 2022. To align with its 1.5°C pathway in 2027, NTPC must reduce its emissions intensity by about 9% per year.

NTPC states that it aims to align with the Government of India’s objective to achieve net-zero emissions by 2070, but NTPC itself has not set any net-zero targets and only aims to reduce its scope 1 and 2 emissions by 17% by 2032 compared to 2012. This is inconsistent with the International Energy Agency’s (IEA) recommendation for electricity generation companies in developing economies to reach net zero by 2045. NTPC also lacks commitments to phase out the use of fossil fuels.

No evidence was found that the company commits to social dialogue or discloses 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 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. The company discloses the actions it takes to provide re- and up-skilling and training opportunities for workers and affected stakeholders. For instance, it has committed to a skill mission in India focused on providing youth with new skills, as well as employment development centres at various stations. Furthermore, the company discloses the measures it takes to embed equality of opportunity for women and vulnerable groups in these actions. It does this through various skill programmes focused on marginalised and vulnerable groups. However, no evidence was found of the company having a process for identifying skills gaps for workers and stakeholders affected by the low-carbon transition or a public commitment to help workers displaced by the transition to re- or up-skill.

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.

The company commits to respecting human rights and the ILO fundamental rights at work. However, it can strengthen its disclosure on its human rights due diligence process and engagement with affected stakeholders.

The company commits to worker health and safety of workers and expects the same commitment of its business relationships. The company does not disclose information on collective bargaining, but does disclose some information on workforce diversity fundamentals. However, the company can strengthen its disclosure on these subjects, as well as on its living wage and working hours practices, and gender equality.

No policies or commitments of the company related to key ethical business topics – personal data protection, tax, 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. The company does however, have a policy prohibiting bribery and corruption.