Adani row: Mahua Moitra takes a dig, highlights article from another ‘foreign conspirator’ on ESG red flags

All India Trinamool Congress MP Mahua Moitra took a dig at the Adani Group and said that another “foreign conspirator” has now published an article on the conglomerate accusing it of borrowing cheap funds under the guise of green renewables and diverting it to coal. 

Moitra was referring to an article by Bloomberg that said that financing arrangements across the group are exposing a web of red flags concerning the environmental, social and governance (ESG). Norway’s largest pension fund KLP sold its entire holding of shares in Adani Green amid concerns that it might have inadvertently helped finance some of the world’s most polluting activities. 

Sharing screenshots of the article, Moitra said, “Adani borrowing cheap funds under guise of “Green” renewables & diverting to coal. Article from another “foreign conspirator” – Bloomberg business”. 

A public filing earlier this month stated that Adani is using stock from its green companies as collateral in a credit facility that is helping finance the Carmichael coal mine in Australia via Adani Enterprises. 

Ulf Erlandsson, chief executive of Anthropocene Fixed Income Institute that has been tracking the group since mid-2020 said that investments in other parts of the Adani Group are leaking into the funding of Carmichael. “Investors who have restrictions on funding greenfield thermal coal mining should revisit potential exposures across the whole of Adani Group," Erlandsson told the news site.

According to Bloomberg data, more than 500 funds registered in the European Union as promoting ESG goals directly or indirectly hold Adani stocks. 

Also read: Hindenburg-hit Adani Group's credit facilities sending a chill across ESG markets: Report