EQT and Adani Enterprises: Some ESG questions

2 minute read

A portfolio company of private equity house EQT has entered into a joint venture (JV) with Adani Enterprises, one of the world's biggest coal players, to build power hungry data centres. Self-disclosure says, "mostly powered by renewables", and here we ask a few questions around that.

Data centres obviously have electricity/power as an important input into the business models. Adani Enterprises is proceeding with construction of the Carmichael coal mine in Australia, although it appears that the USD670mn State Bank of India loan to the company for that purpose has not yet been decided.

We question how EQT view getting closely involved with a parent company of the mining entities that gave Siemens such a headache last year. Even though the JV self-discloses that the data centres are to be largely powered by renewable energy, the CEO of Adani Power - which is 99.7% coal - is the central person in the press-shoot of the signing of the JV deal.

We suggest that it might have made more sense to have a person from Adani Green, the renewables arm of Adani Group, present instead given such a renewables commitment.

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