Date: 28th December 2022
H.E. António Guterres
Secretary-General
United Nations
New York, NY 10017 USA

Subject: Statement by CEO expressing continued support for the Global Compact and renewing company's ongoing commitment to the initiative and its principles
Dear Mr. Secretary-General,
I am pleased to confirm Azure Power Global Limited’s continued support for the Global Compact. The Ten Principles of the United Nations Global Compact on human rights, labour, environment, and anti-corruption has always been ingrained in our corporate culture and business strategy. We think that the objectives of sustainable development—economic growth and resource conservation—are mutually supportive. In view of the global risk landscape and escalating environmental risks in the world, we are committed to conducting our business responsibly.
Through our annual submission of this Communication on Progress (COP) and in line with our support to public accountability and transparency, we are demonstrating the progress we have made in implementing the ten principles of the Global Compact. We confirm that the principles of the United Nations Global Compact are reflected and incorporated in our company's practices, strategies, and operations.
As a signatory to the United Nations Global Compact, we have adopted, implemented, and upheld the principles related to human rights and labour rights by becoming a SA 8000 certified company this year. Being one of the largest Renewable Energy Generating company of India, we are consciously supporting the goal of affordable and clean energy. Furthermore, in line with ethical and transparent business practice, we stand against corruption and bribery. Through this COP, we reaffirm our commitment to diligently implement covenants as defined in the compact.

Rupesh Agarwal
Chief Executive Officer

Azure Power is committed to respecting the human rights of its workforce, communities, and those affected by operations wherever the company does business (including contractors and suppliers) in line with internationally recognized frameworks. In line with this commitment, Azure Power is a member of United Nations Global Compact the United Nations Guiding Principles on Business and Human rights (UNGPs) and has also adopted a dedicated Human Rights policy.

The details of the Human Rights Policy can be found here: http://investors.azurepower.com/~/media/Files/A/Azure-Power-IR/governance-documents/Policy%20for%20Human%20Rights.pdf

Azure Power has a dedicated Social Accountability Policy that aims to promote a positive culture with respect to human rights and focuses on continuous improvement of working conditions. It lays down the commitment to protect and promote human rights practices in its business operations as well as in its supply chain.

Social Accountability Policy: http://investors.azurepower.com/~/media/Files/A/Azure-Power-IR/governance-documents/social-accountability-policy.pdf

Azure Power has established an online grievance redressal mechanism to report and address human rights issues. The company encourages all its stakeholders i.e., the employees, communities, contractors, and suppliers to raise and report their concerns regarding any kind of human rights violation. Third party contractors and suppliers are also made regularly aware of the company's human rights compliances, and they are encouraged to strictly adhere to these compliances. These compliances are also used to screen suppliers on certain parameters, including human rights.

More details can be found at: http://investors.azurepower.com/~/media/Files/A/Azure-Power-IR/governance-documents/shes-criteria-for-new-vendor-registration.pdf

Azure Power is Social Accountability 8000 certified and conducts human rights due diligence of its business operations and supply chain in accordance with the national and international requirements. The latest due diligence was conducted in the month of November 2022 by external firm “DNV” and the Company was able to demonstrate continued compliance to the standard requirements. Azure Power ensures strict compliance and adherence to human rights laws during the process of engaging any vendor or suppliers.

As a company that upholds human rights, Azure Power does not have any ongoing or pending investigations, legal cases, rulings, fines, or other relevant events related to human rights. To assess and continuously monitor the adherence to human rights, we conduct quarterly internal as well as biannual external third-party audits. Furthermore, Supplier audits are also conducted to ensure that the suppliers follow human rights standards. None of the audits reveal any violation of Human Rights practices

Azure Power is committed to conducting its business in an ethical and transparent manner. It prohibits and rejects any form of slavery, forced labour, or child labour within the organization. The details are found in the Human Rights Policy.

Human Rights policy encapsulating labour rights aspects can be found here: http://investors.azurepower.com/~/media/Files/A/Azure-Power-IR/governance-documents/Policy%20for%20Human%20Rights.pdf

As part of its commitment, Azure Power complies with all workforce-related laws and regulations, along with the four fundamental principles and rights at work established by the Internal. Azure Power acknowledges and respects freedom of association and the right to collective bargaining as enshrined in its Social Accountability Policy.

Social Accountability Policy: http://investors.azurepower.com/~/media/Files/A/Azure-Power-IR/governance-documents/social-accountability-policy.pdf

At all its operational and under-construction sites, Azure Power strictly complies with all applicable labour regulations and encourages fair treatment, non-discrimination, and equal opportunity for all employees, whether they are employed directly or indirectly through contractors. Azure's basic engagement terms and conditions with vendors and suppliers include provisions for compliance, such as the prohibition of child labor, forced labor, and labour laws. We also incorporate ILO principles as the guiding framework for managing ESG performance.
More details can be found at: https://www.azurepower.com/sites/default/files/inline-files/ESG%20Policy.pdf

As a SA8000-certified company, Azure Power is dedicated to creating, maintaining, and implementing socially acceptable workplace policies, including those in the supply chain. When hiring any supplier or vendor, Azure Power strictly complies with labour regulations on all its sites. As a company that upholds labour rights, we do not have any ongoing or pending investigations, legal cases, rulings, or fines. Azure Power has an internal labour compliance department that continuously monitors adherence to labour rights. Compliance to the labour policies is checked continuously by the Projects team and if any violation is identified it is rectified immediately and financial penalty imposed.

Azure Power’s ESG Policy depicts the aim to improve ESG performance. Azure Power commits to compliance with all ESG regulations. In line with the environmental commitments, all its projects are governed by International Finance Corporation (IFC) performance principle. Azure Power aims to achieve the following goals:
a) Maintain carbon neutral status
b) Attain water neutral status by 2023
c) Enhance natural capital at all its sites by planting 50 trees / MW of installed capacity
d) Reduce scope 1 emission by implementing measures like – Replacement of fossil-based vehicle with EVs and DG set with renewable power

For further details refer to ESG Policy: https://www.azurepower.com/sites/default/files/inline-files/ESG%20Policy.pdf

As a commitment towards environment sustainability, An Environment Impact Assessment is conducted before project implementation of projects and specialized studies are conducted at sites, such as Ecological Management Plan and Biodiversity Assessment to mitigate the impact on biodiversity. Azure Power conserves water through robotic plant cleaning technology. Ground water recharge structures are installed that recharge 50% of the water used. All the Suppliers and Employees are required to adhere to ESG policy. The management is committed to provide training and resources to accomplish the ESG goal of the company. Total 25 no. of trainings were conducted for environmental awareness during FY 2021-22. The Sustainability and CSR Committee is responsible for environmental protection.

Read more: http://investors.azurepower.com/~/media/Files/A/Azure-Power-IR/governance-documents/sustainability-and-csr-committee-charter-09june2022.pdf

Azure Power ensures timely evaluation of its sustainability progress. In order to ensure this, a compliance portal which is maintained by an external agency is in place. Additionally, two external audits were also conducted in the year by ISO 14001 and an environment and social due diligence was carried out for SECI 3. As per ISO 14001, management review is carried out annually. As a commitment to become water neutral by 2023, Azure Power has reduced its water consumption from 122 L/ MWh in 17 -18 to 35 L / MWH in 2021-22.

Azure Power is committed to conducting its business ethically and in compliance with applicable domestic and foreign anti-bribery and anti-corruption laws and regulations. We are in compliance with the United States of America’s Foreign Corrupt Practices Act (FCPA) particularly. The Compliance Officer initiates an FCPA risk assessment annually. Detailed policies for high-risk areas of corruption. All third parties are required to apply the same standards of business conduct as Azure Power does itself. We have a detailed due diligence process for third party intermediaries.

Read more: http://investors.azurepower.com~/media/Files/A/Azure-Power-IR/governance-documents/ABC%20Policy%20updated%2010%20June%202021.pdf

Azure Power has a Whistleblower Platform, which allows reporting of the anti-corrupt practices anonymously. Azure Power has a comprehensive Anti-Bribery & Corruption Policy with a systematic approach for reporting of violations. The policy also requires all employees to undergo anti-bribery and corruption training courses from time to time. The Compliance Officer monitors the policy and implementation and periodically review the programme’s suitability, adequacy and effectiveness and implements improvements as appropriate. Azure Power provides Anti-bribery and corruption mandatory training for all employees.

Read more:
Anti-Bribery & Corruption Policy- http://investors.azurepower.com/~/media/Files/A/Azure-Power-IR/governance-documents/ABC%20Policy%20updated%2010%20June%202021.pdf

Whistle Blower Policy- http://investors.azurepower.com/~/media/Files/A/Azure-Power-IR/governance-documents/whistle-blower-policy-2022.pdf

At Azure Power there is a proper Standard Operating Procedure (SoP) and reporting mechanism in place. A well-defined process to handle cases of corruption is laid down in the Whistle Blower Policy. http://investors.azurepower.com/~/media/Files/A/Azure-Power-IR/governance-documents/whistle-blower-policy-2022.pdf

To identify, monitor and evaluate Anti-corruption performance, Azure Power conducts internal as well as external audits. Quarterly audits are conducted based on Foreign Corrupt Practices Act (FCPA) guidelines. Based on the audit, quarterly reports are then submitted to the Audit Committee, which is a board subcommittee overseeing and ensuring the consistency of the anti-corruption commitment. For external investigators, third parties are also on board for investigation in the alleged cases