Three Adani group companies, including Adani Green Energy Ltd, have lost recognition to the world’s leading arbitrator of corporate green goals in a blow to the industrial group’s efforts to reposition itself as a leader in India’s energy transition.

Adani Green, Adani Transmission Ltd and Adani Ports & Special Economic Zone Ltd were removed from the “companies taking action” list published by the Science Based Targets initiative in late April. The UN-backed organisation helps companies develop concrete plans to reduce emissions in line with the Paris Agreement’s goal of limiting global warming.

Sustainability-minded investors often look for SBTi’s stamp of approval, and in early February, shares bearing the Adani name appeared in more than 500 ESG funds. That same month, a document revealed that Adani was using shares in its green company as collateral to help finance its controversial Carmichael coal mine.

Losing SBTi’s validation is another setback, with regulators saying ESG investors may have inadvertently put money into fossil fuels through their Adani Green investments. Earlier this year, the group lost billions in market value after a short seller accused the company of fraud based on a series of shell companies and related-party transactions.

Adani Group said it had asked SBTi to justify the exclusion and was “optimistic” that SBTi would “review and reverse its decision”.

“None of these companies are involved in the exploration, extraction, mining and/or production of oil, gas, coal or other fossil fuels,” a spokesman for the group said. All three are “publicly listed independent companies” and have been “committed to preparing their low-carbon transition plans” after committing to join SBTi.

The group is trying to raise about $800 million for new green energy projects, part of billionaire Gautam Adani’s push to transform his conglomerate into the world’s largest renewable energy producer and green data storage leader.

Adani Green Energy reported a surge in fourth-quarter profit last week, a sign the group is recovering from the damage caused by short-seller attacks.

According to SBTi’s website, SBTi has removed at least 16 other companies from its list after updating the group’s fossil fuel policy, which excludes any “directly involved in the exploration, extraction, mining and/or production of oil, natural gas.” companies”, coal or other fossil fuels. Adani Group companies Ambuja Cements Ltd and ACC Ltd have been validated by SBTi for near-term targets and retain their places on the list.

On March 21, the non-profit organization Ekō and Market Forces formally asked SBTi to review the five Adani group companies on its list. The letter referred to the “interconnected financial nature of the group” as a “blatant disregard” for corporate governance and its plans for fossil fuel expansion.

Market Forces acting executive director Will van de Pol welcomed the SBTi’s move, adding that it was “critical” that such moves were not used for greenwashing. “None of the Adani Group companies can be considered in line with the Paris Agreement while scaling up the fossil fuel industry,” he said.