9 ways Tata Power’s integrated report redefines sustainability

• 47% of operational capacity from clean and green sources
• 37% reduction in Scope 1 emissions
• 12% reduction in total water consumption
• 100% fly ash utilization sustained
• 15 million Mahseer hatchlings distributed across India
• 52 lakh+ beneficiaries reached through social-impact programmes
• 22% gender diversity targeted by 2030

1. Clean energy is becoming a larger part of Tata Power’s portfolio

Renewable energy continues to move from being a growth segment to becoming the backbone of Tata Power's long-term business strategy. FY26 reflects steady progress in expanding clean generation while increasing the contribution of renewable sources across the company's overall energy portfolio.

Together, these indicators show how clean energy is moving closer to the centre of the portfolio - 

• 7,856 MW of operational clean and green capacity
• Clean and green sources accounting for approximately 47% of the company’s total operational capacity
• 16,716 MW of total operational and managed capacity
• 968 MW of renewable capacity commissioned during the year
• Target to increase clean and green capacity to 70% by 2030
• Ambition to achieve net zero emissions before 2045
• Renewable energy consumption increased from 336,802 GJ in FY 2024–25 to 683,014 GJ in FY 2025–26
• Energy intensity based on physical output improved from 0.0076196 GJ per kWh to 0.0071565 GJ per kWh

2. Emissions management is supporting a lower-carbon pathway

Reducing greenhouse gas emissions remains central to Tata Power's climate strategy. The FY26 report highlights notable improvements in operational emissions while reinforcing the company's commitment to science-based climate targets and long-term decarbonization.

The direction of the lower-carbon pathway becomes clearer across the following emissions measures -

• Scope 1 emissions declined from approximately 41.35 million tonnes of CO₂ equivalent to 26.07 million tonnes, representing a reduction of nearly 37%
• Scope 2 emissions decreased from approximately 3.20 million tonnes to 2.59 million tonnes, representing a reduction of around 19%
• Combined Scope 1 and Scope 2 emissions intensity based on physical output improved by approximately 6%
• Scope 3 emissions stood at approximately 26.57 million tonnes, compared with 26.68 million tonnes in the previous year
• Tata Power has received validation for its near-term emission-reduction targets from the Science Based Targets initiative

While part of the decline reflects the temporary shutdown of the Mundra thermal power plant, the broader direction remains encouraging. Sustaining these gains through renewable expansion, cleaner technologies and operational efficiencies will be key to translating short-term improvements into long-term climate performance.

3. Water stewardship is strengthening operational resilience

For an integrated power company, responsible water management is closely linked with operational continuity and environmental resilience. The water disclosures within the Tata Power sustainability report show how the company continued strengthening conservation, reuse and replenishment initiatives across its operations during FY26.

Water resilience is reflected not only in reduced consumption, but also in how efficiently resources are managed across operations -

• Total water consumption declined from approximately 301.4 million kilolitres to 266.3 million kilolitres, representing a reduction of nearly 12%
• Water intensity per rupee of turnover improved from 0.0004673 to 0.0004181 kilolitres
• Tata Power aims to become water neutral by 2030
• Water conservation, wastewater reuse, rainwater harvesting and catchment-level replenishment initiatives continued across operations
• Water consumption intensity based on physical output stood at 0.0052750 kilolitres per kWh, compared with 0.0044832 kilolitres per kWh in the previous year

Although lower plant operations contributed to the reduction in overall water use, improving efficiency at the unit level remains an important opportunity. Advancing water-neutral practices can strengthen business resilience while helping safeguard water resources in regions facing increasing climate and resource pressures.

4. Circularity is helping reduce waste sent for disposal

Circular economy principles are becoming increasingly relevant as energy companies diversify into renewable technologies and manufacturing. In line with Tata Power’s sustainability goals, the FY26 disclosures demonstrate continued efforts to recover value from waste through recycling, reuse, and material recovery, rather than relying on conventional disposal methods.

The move towards circularity is visible in how materials are recovered, reused and kept away from disposal -

• Total waste generated declined from approximately 6.23 million tonnes to 5.59 million tonnes
• Approximately 3.77 million tonnes of waste was recycled, and 1.70 million tonnes was reused, together accounting for approximately 5.48 million tonnes of recovered waste
• Waste disposed through landfilling and incineration declined from 99 tonnes to 32 tonnes
• The company sustained 100% fly ash utilization, supporting greater resource recovery and responsible waste management.
• Tata Power aims to achieve Zero Waste to Landfill by 2030
• Waste management plans cover ash, biodegradable waste, plastic, e-waste, batteries and other hazardous and non-hazardous materials

The results indicate that resource recovery is becoming an integral part of operational planning rather than a standalone environmental initiative. As Tata Power expands its clean energy businesses, embedding circular practices across manufacturing, operations and supply chains can further strengthen resource efficiency and reduce environmental impact.

5. Biodiversity is becoming part of business decision-making

Nature-related risks are gaining greater attention across the global energy sector, and Tata Power is broadening its biodiversity strategy accordingly. The nature-related disclosures in Tata Power’s sustainability integrated report 2026 combine long-running conservation programmes with the integration of biodiversity considerations into enterprise-level planning and risk management.

Biodiversity is being brought into the business agenda through long-term commitments, conservation efforts and risk-based action -

• More than 55 years of Mahseer conservation have seen 15 million hatchlings distributed across India, alongside continued efforts to protect the Deccan and Golden Mahseer. The long-term programme also contributed to the Blue-finned Mahseer moving from Endangered to Least Concern on the IUCN Red List.
• Under the Gaja sanrakshana project in Odisha, 15 early warning systems and 75 proximity sensors were deployed to mitigate human-elephant conflict, alongside training for more than 7,000 stakeholders.
• Commitment to achieve no net loss of biodiversity by 2030
• Tata Power became the first company in India’s Electric Utilities and Power Generators sector to publish a TNFD-aligned disclosure

By combining conservation initiatives with globally recognized nature-related reporting frameworks, Tata Power is expanding the role biodiversity plays in business decision-making. This integrated approach can help balance infrastructure growth with ecosystem protection as renewable energy development continues to accelerate.

6. Social initiatives are creating impact at scale

The transition to a cleaner energy future also depends on creating meaningful social value for the communities that support business operations. Tata Power continued to expand its CSR programmes across education, livelihoods, entrepreneurship and essential community services during FY26.

The scale of social impact comes through in the reach, investment and focus of community programmes -

• More than 52 lakh beneficiaries reached
• Programmes implemented across 21 states
• Coverage extending to 23 aspirational districts
• ₹100.54 crore utilized for CSR initiatives across Tata Power Group companies

Social initiatives organized around four focus areas-

• Education, including digital and financial literacy
• Employability and employment
• Entrepreneurship
• Essential enablers such as health, hygiene, water, sanitation and sports

The breadth of these programmes reflects an approach that extends beyond philanthropy towards long-term community development. As impact measurement continues to evolve, demonstrating measurable improvements in livelihoods, education and well-being can further strengthen the value created through these initiatives.

7. Workplace inclusion is building a more diverse workforce

Building an inclusive workplace has become an important component of sustainable business performance. Tata Power continued investing in programmes designed to improve diversity, employee development, accessibility and career progression across its workforce.

A more inclusive workplace is being shaped through progress across representation, retention, development and accessibility -

• Total employee base of 23,345
• 2,493 women employees
• Women representing approximately 11% of the workforce
• Target to improve gender diversity to 22% by 2030
• 52 employees with disabilities, based on voluntary disclosures
• Female return-to-work rate after parental leave of 92%
• Female retention rate following parental leave of 88%
• 86% of women employees received skill-upgradation training
• 100% of employees received performance and career-development reviews

The company has also introduced second-career opportunities, mentoring, flexible working arrangements, parenting support, accessibility audits, and assistive infrastructure for employees with disabilities.

Looking ahead, sustained progress will depend on translating these initiatives into stronger representation across technical, operational, and leadership positions. Continued investment in inclusive hiring, retention and career development can help Tata Power build a workforce that better reflects its long-term growth ambitions.

8. Safety systems are strengthening protection across operations

Operating large-scale energy infrastructure requires a safety culture that evolves alongside business expansion. During FY26, Tata Power continued strengthening its health and safety systems through technology, training, governance and proactive risk management.

The strength of a safety culture is best understood through both the improvements made and the risks that continue to demand attention -

• Worker lost-time injury frequency rate improved from 0.16 to 0.10
• Recordable work-related injuries among workers declined from 87 to 59
• 100% of plants and offices were assessed for health and safety practices and working conditions
• Safety systems were aligned with Tata Group standards and ISO 45001:2018
• Technology-led measures included AI and machine learning tools, drones, smart fire-detection systems and digital hazard-reporting platforms
• Structured incident investigations and organization-wide safety bulletins were used to share learnings and preventive actions

The report also records one employee fatality and five worker fatalities during the year. Employee LTIFR increased from 0.02 to 0.05, while recordable employee injuries increased from four to six.

The mixed safety outcomes underline that continuous improvement remains essential despite advances in systems and technology. Strengthening contractor management, preventive controls and safety culture across every level of operations will remain critical as Tata Power continues to expand its business footprint.

9. Governance and assurance are improving ESG accountability

Strong sustainability performance depends on equally strong governance. Tata Power continues to reinforce its ESG framework through board oversight, structured risk management and independent assurance of key sustainability disclosures.

Key governance indicators include:

• The board of Tata Power is the highest authority overseeing the implementation of its Business Responsibility policies
• The Board-level Corporate Social Responsibility and Sustainability Committee reviews the company’s sustainability activities
• The risk management committee oversees ESG, climate, operational, regulatory and business-continuity risks
• Tata Power’s BRSR Core disclosures received reasonable assurance
• Other BRSR and selected GRI disclosures received limited assurance
• Independent assurance covered the nine attributes specified under the BRSR Core framework
• Reporting is aligned with frameworks including BRSR, GRI Standards and the Greenhouse Gas Protocol

Clearly communicating both assured information and reporting limitations enhances transparency for investors and other stakeholders. As ESG expectations continue to evolve, robust governance and credible disclosures will remain essential for building trust and demonstrating accountability.