Tata Power

Tata Power’s scope 3 emissions targets could not be assessed in the benchmark due to a lack of disclosure by the company on its purchased power, even though purchased power likely makes up a significant proportion of the company’s total electricity sales. In order to improve its transition planning, Tata Power should disclose quantitative information on its total purchased power for resale and its generation sources.

In the last three years, Tata Power has invested USD 4.8 million in research and development (R&D) expenditure. However, no specific breakdown of its R&D expenditure could be found. Therefore, this figure is likely to include both its fossil-based and low-carbon activities. Despite providing examples of low-carbon pilot projects and initiatives, such as the development of low-cost smart meters, Tata Power does not provide any R&D data to support its suggested investments in developing these initiatives.

Tata Power has a transition plan that lays out its ambition to increase the share of green electricity in its portfolio to 70% by 2030 and its intention to phase out coal power before 2045, following the completion of its contractual obligations. Tata Power’s transition plan also outlines its aim to reach net zero by 2045. Tata Power’s transition plan has limited evidence of financial planning and does not use carbon pricing. To improve its transition planning, the company should quantify how its business is expected to change as it transitions, including changes to costs and profit and loss, and provide evidence of financial commitments geared at progressing the company’s transition to net-zero emissions by 2045.

Tata Power aims to reduce its scope 1 and 2 emissions by 62% during 2022-2037. The company also has a net-zero target for its scope 1, 2, and 3 emissions for 2045. These targets are under validation with SBTi. For its own generated power, Tata Power’s net-zero target is sufficiently ambitious to align with its 1.5°C pathway. However, as the company does not provide data for its purchased power this net-zero target could not be assessed for its scope 3 emissions. Tata Power has a coal phase-out date of 2045. However, the company does not disclose details of how it intends to achieve this target. Tata Power is aiming to reach a total renewable energy capacity of 15 gigawatts (GW) by 2025 and is aiming for 70% renewables capacity by 2030 and 100% by 2045.

Tata Power is engaged in electric vehicle (EV) charging and has installed over 3,700 public charging points. It is aiming to install over 25,000 EV charging points across India by 2028. The company is also involved in providing client digitalisation and monitoring services, including smart grids, smart meters and internet of things (IoT) for intelligent networks across operations. Further, it has installed 196 microgrids which support 20,000 customers through its subsidiary TP Renewable Microgrid (TPRMG), which is the leading solar microgrid company in India.

In the last three years, Tata Power has only invested USD 4.8 million in R&D. However, no specific breakdown of its R&D expenditure could be found. The company suggests it is investing in energy efficiency for its solar power assets and in grid improvements to increase flexibility and efficiency. Between 2017 and 2022, Tata Power’s emissions intensity has increased. To align with its 1.5°C pathway in 2027, the company must reduce its emissions intensity by 8% per year. Between 2017 and 2022, Tata Power’s solar electricity generation increased by 75%.

Despite reporting strong qualitative evidence of its projects for non-mature low-carbon technologies, Tata Power provides little to no details on its CapEx, R&D, or financial planning to corroborate this. In 2022, Tata Power attributed 44% of its total CapEx to low-carbon activities, which is a reduction from its 63% low-carbon CapEx in 2021. Tata Power’s reporting related to its purchased power, which makes up around 29% of its sold electricity, is poor. The company needs to improve its reporting by disclosing further information on the sources of its purchased power as well as its financial commitments towards the low-carbon transition.

No evidence was found of the company’s commitment to social dialogue or of 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 just transition planning to mitigate the social impacts of the low-carbon 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 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 actions 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 commits to reskill and upskill workers and stakeholders affected by the low-carbon transition and discloses the actions it takes in this regard. For instance, the company adopted a Business Personabased Cadre Recruitment strategy. This involves assessing candidates’ skills and qualifications that creates pathways for development in the organisation, particularly in its solar power operations. Furthermore, through its programme Anokha Dhaaga, the company takes measures to provide upskilling opportunities to semi-skilled and unskilled women, farmers’ groups and marginalised groups, as well as trainings for women in technical and non-technical capabilities. However, no relevant disclosure was found of the company having a process for identifying skills gaps for workers and affected stakeholders in the context of the low-carbon transition.

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 respecting the health and safety of its workers and expects the same commitment of its business relationships. However, no evidence was found of the company having a time-bound target for paying all workers a living wage. The company does not disclose the proportion of its direct workforce covered by collective bargaining agreements, and no relevant disclosure was found of the company’s required working hours. The company discloses some indicators of workforce diversity, including age and gender. However, no relevant disclosure was found of additional indicators of workforce diversity.

The company has a commitment to ensuring personal data protection, and it has policies regarding bribery and corruption, responsible tax practices and responsible lobbying and political engagement. However, the company can strengthen its disclosure on these subjects.