Adani vs MSCI: Why the billionaire group stock is no longer 'climate friendly'

Gautam Adani who is betting big on going green is facing a setback as the MSCI Climate Change Index has decided to drop Adani Ports from its four climate indices.

MSCI spokesperson Lara Hudson confirmed to Fortune India that Adani Ports would be removed from the MSCI ACWI IMI Climate Change Indexes.

“In September 2021, MSCI revised the ESG Controversy Assessment for Adani Ports and, as a result, the company does not meet the eligibility criteria for the index. Adani Ports will be removed from these indexes effective December 1, 2021,” Hudson said.

The MSCI said that the Carmichael coal project was added as a 'controversy 'after the setting up of Bowen Rail Company (BRC) and as Adani Ports is associated with the project, the action was taken as their criteria mandates excluding companies with "severe" or "very severe" controversy scores. Environmental groups claim that the Carmichael mine will produce 200 million tonnes of carbon dioxide in 60 years.

Adani group that has set sights on achieving carbon neutrality by 2025 said it was disappointed with the move and said it had clarified to MSCI the listed share Adani Port never had any shareholding in the Carmichael mine, and that it had already divested its stakes in both Bowen Rail and NQXT (North Queensland Export Terminal)," the company said in a media release.

The statement raised concerns back to the MSCI who they claim has not bothered to either incorporate the facts or provide an appropriate response to the group.

Adding to the disappointment according to Adani's release is the shock about the untransparent methodology MSCI has adopted.