This page is updated regularly with the latest news about why Adani’s biggest investors must cut all ties with Adani.
The Carmichael Coal Mine and Rail Project, and the related North Queensland Export Terminal (formerly the Adani Abbot Point Terminal), is one of the biggest greenfield coal expansions in the world. Adani Ports, Adani Enterprises, and Atulya Resources all have different ownership stakes in the Carmichael Coal Mine and Rail Project, and the related North Queensland Export Terminal.
Any company that invests in Adani Ports, Adani Enterprises, Atulya Resources, or directly invests in the Carmichael Coal Mine and Rail Project, or the related North Queensland Export Terminal, is supporting this huge greenfield coal expansion. BlackRock, MUFG, State Bank of India, JP Morgan Chase, and HSBC are some of Adani's biggest investors.
The #StopAdani movement's demands of Adani's biggest investors are that they:
- Use their influence as Adani's biggest investors to demand that Adani abandon the Carmichael Coal Mine and Rail Project,
- If Adani refuses to abandon the project, then commit publicly to cease and withdraw investments from Adani Ports, Adani Enterprises, Atulya Resources, the Carmichael Coal Mine and Rail Project, and the North Queensland Export Terminal.
Already seven major investors have pulled their money out of Adani because of coal and climate concerns. These include:
- Carnegie, June 2020, “An example of a company that has been avoided for environmental reasons is Adani Ports”. Source
- Danske Bank, September 2020, Restrictions prohibiting investment in Adani Ports and Adani’s North Queensland Export Terminal due to the company’s “climate change contribution and harmful environmental practices”. Source
- SPP, January 2021, “The following companies are excluded from all SPP Fonder’s funds in agreement with SPP’s sustainability criteria – Serious environmental and climate damage”. List includes Adani Ports. Source
- PIMCO, March 2021, PIMCO banned future investment in Adani Ports bonds and clarified that it did not participate in the January 2021 bond issue, due to links to the Carmichael coal project. Source
- SwedBank, April 2021, Excluded Adani Ports due to its connection to fossil fuels. Source
- Samsung Asset Management, June 2021 "the fund no longer owns Adani Ports shares and has no plan to repurchase the shares. Overall, Samsung Asset Management clearly has no intention to support Adani’s coal project” Source
- Storebrand, June 2021, stated it had dumped its Adani Ports shares due to “our sustainability criteria related to coal" Source
Violating Human Rights:
Adani bulldozed and blew up a highly significant sacred site containing thousands of Wangan and Jagalingou artefacts, despite strong objections from Wangan and Jagalingou Traditional Owners. Wangan and Jagalingou Traditional Owner Lyndell Turbane said, "It's bad enough that we've been removed from our land, now they're continuing to destroy our cultural history."
Wangan and Jagalingou Cultural Custodians, who have never consented to Adani’s mine on their ancestral lands, have held an ongoing cultural ceremony at Adani’s mine site for over 100 days and have said they will not leave until Adani leaves.
Coal and Climate Change:
Research from Market Forces, based on data compiled from Adani’s own corporate records, shows Adani’s investors are enabling a catastrophic fossil fuel expansion by supporting Adani. It comes as Adani is ramping up greenwashing efforts, even launching a website called iCan which asks children to submit ideas to 'take individual responsibility' to solve the climate crisis. Several publications including Bloomberg noted that the data undermines Adani's hollow claims about being a company in transition. Adani's plans include:
- Doubling its coal power generation, from 12 to 24 gigawatts (GW) through 6 new coal power stations and expansions, giving it more coal power capacity than all of Australia,
- Adding and enabling an extra 132 million tonnes per annum of new thermal coal mining capacity, including the 60 million tonnes per annum (mtpa) Carmichael project,
- New coal and LNG terminals at Adani ports,
- A highly polluting coal-to-plastics plant that would use 3.1mtpa of imported coal, including 1mtpa of thermal coal.
- Adani Ports’ efforts to greenwash its image faced another setback when it was removed from the Business Ambition for 1.5C campaign run by the Science Based Targets Initiative (SBTi). A spokesperson for CDP, one of the partners that runs the SBTi said, “Adani Ports was removed from the campaign in Oct 2021 following a review of companies with close links to fossil fuel interests in Business Ambition for 1.5C and Race to Zero”.
Adani Ports was removed from four MSCI climate indexes after its links to the Carmichael coal project escalated its controversy score to “severe”. This is not the first time Adani Ports has been removed from an ESG index, with S&P removing it from the Dow Jones Sustainability Index in April 2021, due to its business links with the Myanmar Military and State Street excluding it and Adani Enterprises from some MSCI produced ESG indices it uses.
US bank BNY Mellon pulled out of providing finance to Adani’s Carmichael Coal Project and ruled out any further business with Adani in Australia, becoming the 104th major business to say No to Adani’s coal mine. BNY Mellon said Adani’s business “is not aligned with our ESG [environmental, social and governance] principles.”
The Institute for Energy Economics and Financial Analysis (IEEFA) criticised BlackRock’s $1.2 billion investment in the Adani Group as a glaring inconsistency in its commitment to climate action and called for BlackRock to completely divest from all Adani Group companies. IEEFA said, “This conglomerate is possibly the largest single private developer of new coal globally… BlackRock argues that investing in one subsidiary is not the same as investing in another subsidiary. This is fallacious thinking when it comes to a family controlled conglomerate that has intercompany transfers as standard operating procedure. BlackRock must call out and divest global laggards at the group level, for both debt and equity exposures, not just at a subsidiary level. Hiding behind the passive excuse is greenwash, and action on changing indexes is overdue.”
- London’s Science Museum faced a severe backlash over its sponsorship deal with Adani, leading to protests and several high profile resignations. Indigenous leaders from Australia, India and Indonesia accused the Museum of legitimising Adani’s “destructive coal expansion activities”. Over 40 senior scientists and academics signed an open letter vowing not to work with the museum while it accepted money from fossil fuel giants, saying, “We are in a climate crisis and should not be doing anything to legitimise those companies that are still driving up emissions by exploring for and extracting new sources of fossil fuels when the science is clear that we need to be leaving them in the ground.”
Adani's most recent annual reports confirmed Adani is propping up its Australian coal operations with massive inter-company loans. The two main Adani Australian subsidiaries responsible for the Carmichael Mine and Rail Projects borrowed over AU$4 billion from other Adani Group companies in the last year. As detailed in the excerpts below, AU$1.31 billion of the loans were interest bearing and denominated in US dollars and Euros - suggesting this money has come from loans from external lenders that Adani has subsequently directed into the Carmichael Coal Project. Anyone investing in any Adani company is at risk of funding Adani’s Carmichael Coal Mine and Rail Project.
Adani purchased another 3 coal mining blocks and another coal-fired power station in India, adding to its already massive coal expansion plans. Adani has been the most aggressive bidder in Prime Minister Narendra Modi’s auction of new coal blocks - undermining Adani’s nonsensical claims about being a company in transition.
Ratings agency Moody’s downgraded the outlook of Adani’s North Queensland Export Terminal (formerly Abbot Point) to negative due to environmental, social and governance (ESG) factors. Moody’s said the change to the outlook was particularly due to the “rising refinancing risk” associated with the coal terminal’s US$500 million bond which matures in December 2022. “Refinance risk is being heightened by reduced appetite from creditors for coal investments due to ESG considerations,” it stated.
- Journalists revealed that some of Adani's biggest shareholders are, in fact, four obscure and opaque funds in Mauritius - a notorious tax haven - each with a sordid history of investing in firms that have defaulted, or been probed for serious financial crimes. Share prices of Adani Group companies plummeted after media reported that the accounts of three of these offshore investors had been frozen. Opposition parties have called for a government probe into the offshore funds to find out if they are being used as a shell for Adani’s own money.
Queensland Police have made a "public statement of regret" to Wangan and Jagalingou cultural leader Adrian Burragubba after Mr Burragubba made a complaint to the Queensland Human Rights Commission about being removed from his traditional lands by police at Adani's request. The police statement acknowledged Mr Burragubba represents the Wangan and Jagalingou “aggrieved by Adani’s occupation of the land” and that the incident "was traumatic for Mr Burragubba and his extended family, and caused embarrassment, hurt and humiliation."
This incident comes after Adani attempted to bury an RMIT study that found the company had violated international human rights law in its interactions with the Wangan and Jagalingou - who have never give their free, prior, and informed consent to Adani's mine. The study recommended that mine construction be suspended until the Wangan and Jagalingou give their consent. The United Nations Committee on the Elimination of Racial Discrimination has also requested Adani’s mine be suspended because of its potential violation of Indigenous rights.
A massive drop in aquifers near Adani’s mine has raised concerns that Adani’s water take may have already locked in irreversible damage to the Doongmabulla Springs - the most sacred cultural site of the Wangan and Jagalingou. Cultural leader Adrian Burragubba said “It will be a catastrophe every bit as destructive to our culture, and as hurtful to our people, as the blasting of the caves at the Juukan Gorge”. Wangan and Jagalingou are demanding an immediate stop to Adani’s mine and are considering legal action to stop Adani and protect the springs.
A new report from the Institute of Energy Economics and Financial Analysis (IEEFA) has found that new coal-fired power stations in India carry a massive risk of becoming stranded assets, due in part to the plummeting cost of renewables making coal projects increasingly unviable. This is a major risk for Adani’s investors as Adani is planning to significantly increase its fleet of coal-fired power stations in India. Adani has 6 new coal stations and expansions planned or under construction that will effectively double its current coal power capacity, and even purchased another 1,200MW coal station in June this year. Adani’s investors could see their money pumped into risky stranded assets if they continue to support Adani.
- Financial advisory firm Glass Lewis has warned shareholders that Adani has a “severe” risk of material financial impacts driven by ESG factors, and raised concerns about Adani pursuing the “globally unpopular Carmichael Mine”.
Adani Ports was removed from the Dow Jones Sustainability Index over its business ties to the Myanmar military. In March a report by the Australian Centre for International Justice (ACIJ) and Justice For Myanmar (JFM) exposed Adani Ports’ deepening ties with the Myanmar military, despite the escalating human rights crisis in Myanmar after the military led a violent coup on 1 February toppling the democratically elected civilian government. Adani Ports has partnered with the Myanmar military-owned company Myanmar Economic Corporation (MEC) to build a port in Yangon, and paid the MEC tens of millions of dollars. Adani Ports ‘categorically denied’ engaging with Myanmar military leadership before photo and video evidence emerged of Adani Ports’ CEO Karan Adani meeting with sanctioned senior military general Min Aung Hlaing, an accused war criminal, and exchanging gifts.
The UN Independent Fact-Finding Mission Report in 2019 warned investments in companies who partner with the Myanmar Economic Corporation can help finance the Myanmar military. Adani Ports investors and bond arrangers must immediately divest from Adani Ports or risk being complicit in grave human rights abuses.