Who Owns Adani Ports and Special Economic Zone?

APSEZ has pursued external ESG validation since 2021. In the S&P Global Corporate Sustainability Assessment 2023, APSEZ ranked first in the environmental dimension among 324 companies in the Global Transportation and Transportation Infrastructure sector. CDP assigned a leadership band rating of A- to APSEZ in its 2023 climate disclosure assessment. Sustainalytics assigned APSEZ a low to negligible risk rating for environmental dimensions including biodiversity, land use, and waste management as of 2024.

The company has committed to net-zero greenhouse gas emissions by 2040, a decade ahead of the Paris Agreement's implicit 2050 target. Current verified initiatives include shore power connections at Mundra reducing vessel-idling emissions, 230 megawatts of solar capacity installed across port facilities as of 2024, and a fleet electrification program for cargo-handling equipment. APSEZ reported that rail modal share for cargo movement increased from 35% to 45% between 2020 and 2024, reducing truck-based transportation emissions.

On community engagement, APSEZ runs programs in the Mundra and Kutch districts including technical and vocational training for local residents, support for 29 government schools, and healthcare infrastructure in villages adjacent to port facilities.

One area of ongoing scrutiny is the Mundra port's history of coastal ecosystem impact. Environmental groups, including the Bombay Natural History Society, documented mangrove degradation and altered creek hydrology linked to Mundra's expansion in the 2000s. APSEZ has subsequently funded mangrove restoration projects in Gujarat, though independent verification of net ecological outcomes remains limited as of 2025.

APSEZ has received third-party recognition for ESG performance:

• S&P Global CSA 2023: First rank in the environmental dimension among 324 global transportation companies.
• CDP Climate A- Rating (2023): Leadership band for climate change disclosure, placing APSEZ among the top performers in its sector worldwide.
• Sustainalytics ESG Risk Rating (2024): Rated low to negligible risk across environmental dimensions; ranked first among Indian ports companies.
• Moody's Energy Transition Assessment: Rated "advanced" for progress in decarbonization, renewable energy adoption, and carbon reduction strategy among ports companies.
• India's Best Managed Port (Mundra): Recognized by the Indian Chamber of Commerce on multiple occasions for operational efficiency and infrastructure standards.

Hindenburg Research Report (January 2023): U.S. short-seller Hindenburg Research published a report accusing Adani Group broadly of accounting fraud, stock manipulation, and improper use of offshore shell entities. APSEZ shares fell approximately 23% in the weeks following publication. The report did not allege specific misconduct by APSEZ's operational management, but scrutinized related-party transactions between APSEZ and other Adani Group entities and raised questions about the independence of APSEZ's board. Adani Group contested all allegations. India's Securities and Exchange Board (SEBI) concluded its investigation in August 2024 without finding violations substantial enough for prosecution; however, the Supreme Court of India noted in a January 2024 order that SEBI's investigation needed completion, and questions about the process itself were raised publicly.

Bribery Allegations (November 2024): The U.S. Department of Justice and Securities and Exchange Commission indicted Gautam Adani and several APSEZ executives in November 2024, alleging a scheme to bribe Indian state electricity officials to secure solar energy supply agreements. The indictment was specific to Adani Green Energy's solar projects and did not name APSEZ's port operations directly. However, APSEZ's share price declined approximately 15% on the announcement. Adani Group denied all allegations. As of May 2025, the case remained in the pre-trial stage in U.S. federal courts.

Mundra Environmental Damage (2010-present): The Environmental Impact Assessment Authority of Gujarat and the National Green Tribunal have received complaints about coastal ecosystem degradation at Mundra since the early 2010s. A 2013 report commissioned by the Ministry of Environment found that Mundra port development contributed to changes in creek hydrology affecting local fishing communities. APSEZ contested the findings, and the matter was referred for remediation planning. As of 2024, mangrove restoration work is ongoing but the Net Present Value of ecological loss to fishing communities has not been independently quantified.

Land Acquisition Disputes: APSEZ has faced disputes with fishing communities and farmers in Mundra and Dhamra over compensation for land acquired for port expansion. Several cases reached the National Green Tribunal and state High Courts. Most have been settled through negotiated compensation, though community advocacy groups continue to raise access-to-livelihood concerns in Kutch district.