Our Approach to Water Stewardship

We are committed to responsible water stewardship across all operating sites, focussed on minimising freshwater dependency, maximising reuse and recycling, and safeguarding shared water resources. Our approach combines establishing Zero Liquid Discharge (ZLD) systems, treatment of wastewater using ETPs/STPs, rainwater harvesting, and conducting periodic third-party assessments to identify opportunities for continuous improvement in water use efficiency. Regular R&D and innovation inform technology choices that advance our water stewardship goals. Aligned with our Water Management strategy, defined interventions are embedded within the ESG roadmap and systematically incorporated into budgeted projects of the respective businesses under AEL.

Water Risk Management

Water continues to shape AEL's long-term resilience, influencing operational continuity, regulatory preparedness, and stakeholder trust. As our businesses operate across diverse geographies, including water stressed areas, we recognise the significance of physical, regulatory and reputational water-related risks to our value-creation model. Insights from our enterprise-wide Water Risk Assessment reaffirm that these risks are not only environmental in nature but deeply linked to social expectations and future regulatory trajectories.

1) Governance and Accountability

Governance of water risk management, aligned with the broader ESG governance framework, is reinforced through robust Board and executive level oversight. This ensures that water risk considerations are fully embedded in AEL's strategic, operational, and investment decision-making, enabling proactive responses to evolving climate, regulatory, and community risks.

2) Identification and Assessment of Risks

We conduct enterprise-wide water risk assessments that blend globally recognised geospatial tools (e.g., WRI Aqueduct, WWF Water Risk Filter) with in-depth regulatory, economic, social, and infrastructure analysis at each operating location. This approach maps physical risks (water stress, seasonal and inter annual variability, depletion, supply-demand gaps) and transition risks (policy evolution, compliance expectations, infrastructure adequacy, community dynamics), highlighting current and future hotspots and vulnerabilities.

3) Risk Mitigation and Operational Controls

We prioritise measures tailored to local risk profiles especially in high water stress or vulnerable basins to reduce freshwater withdrawal, enhance circularity, and build long-term resilience:

• Zero Liquid Discharge (ZLD): Most operational sites are ZLD, evidencing process optimisation and closed loop water management.

ZLD implemented at 83% of sites

• Wastewater Treatment & Recycling: We manage effluents via on-site ETPs/STPs, recycling water for non-potable use to reduce freshwater withdrawal. Discharges are monitored continuously. Our management systems ensure that in the event of any incident, appropriate corrective actions are undertaken to ensure prompt containment and compliance.

12,37,951 kilolitres

of water recycled/reused in the reporting year

• Water efficiency and loss control: Water efficiency measures such as leak detection and repair programmes, and process optimisation drive responsible resource conservation and cost efficiency.
• Audits & Assurance: Internal and external experts conduct periodic water audits. A structured framework is implemented to identify, monitor, and prevent any breaches in wastewater treatment processes, including detailed assessments of wastewater treatment infrastructure, supported by regular maintenance and targeted employee training.
• Alternative and non-competing sources: To reduce dependence on freshwater and mitigate sourcing risks, we increasingly obtain water from non-competing sources (e.g., desalinated water, treated wastewater).

46%

of total water sourced from non-competing sources in the reporting year

• Rainwater harvesting and recharge: We prioritise rainwater harvesting to replenish groundwater and reduce reliance on conventional supplies, wherever feasible.
• Community and watershed stewardship: Recognising water as a shared resource, we integrate risk management and shared value creation to reinforce operational resilience, cost prudence, and our social licence to operate.

We work with local governments, NGOs, community groups, and employees on inclusive conservation and recharge projects, while using local/social media for awareness, thereby strengthening community water security and climate resilience.

4) Performance Monitoring and Reporting

We have established quantitative, risk-based targets to reduce freshwater dependence, increase circularity through reuse and recycling, and improve resilience in water-stressed regions. Insights from risk assessments inform capex decisions, technology adoption, and engagement with communities and regulators. We emphasise transparent disclosure and continuous improvement in how we assess, manage, and communicate water related risks.