Biodiversity Management

Biodiversity management and conservation initiatives.

GAIL recognizes biodiversity conservation as a critical component of sustainable development and is committed to protecting and enhancing natural ecosystems around its operations. The Company follows the mitigation hierarchy of Avoid, Minimize, Restore, and Offset while planning and executing projects.

To safeguard ecologically sensitive areas, GAIL avoids establishing project facilities within 10 km of protected habitats, national parks, wildlife sanctuaries, wetlands, and other environmentally significant locations. All new projects undergo Environmental Impact Assessments and are supported by comprehensive Environmental Management Plans that prioritize conservation and greenbelt development.

Afforestation and greenbelt development remain key focus areas of GAIL's biodiversity strategy. The Company has undertaken cumulative plantation of approximately 10 lakh trees, including approximately 4 lakh trees during the last three years. Across major installations, extensive greenbelt areas support native flora and fauna while improving local ecological resilience.

The Company is committed to conserving natural resources and protecting ecosystems by adhering to stringent environmental regulations and best practices.

• Mitigation Hierarchy: We follow the principles of avoid, minimize, restore, and offset to reduce ecological impact.
• Protected Areas Compliance: GAIL avoids operations near IUCN I-IV protected areas, World Heritage sites, National parks, Wildlife sanctuaries, Biosphere reserves, Wetlands, Biodiversity hotspots, Forests, and shoreline management zones.
• Environmental Impact Assessment (EIA): Comprehensive EIAs are conducted before initiating any project or construction activity to assess and mitigate potential environmental impacts.
• Greenbelt Development: GAIL’s Environment Management Plan (EMP) ensures the preservation and expansion of green spaces at all operational sites.
• Biodiversity Surveys: Regular ecological assessments and surveys are carried out to sustain biodiversity and minimize disruption to natural habitats.
• Protected Habitat Buffer Zone: We maintain a 10 km buffer from protected habitats and limit pipeline usage in green cover areas to less than one-third of the Right of Use (RoU) designated for forested zones.
• Compensatory Afforestation: GAIL actively contributes to the Compensatory Afforestation Fund Management and Planning Authority (CAMPA) to offset the ecological footprint of pipeline projects traversing forest areas.

Biodiversity Initiatives at Operational Sites

• At Chhainsa, the recorded flora comprises 53 tree species, 16 shrub species, 25 herb species, and 7 grass species, indicating healthy vegetation diversity.
• Continuous expansion of green cover across operational locations through native species plantation and habitat enhancement initiatives.
• Under the Government of India's 'Ek Ped Maa Ke Naam 2.0' initiative, GAIL strengthened its commitment by planting approximately 75,000 trees near Vijaipur (Guna) and approximately 48,000 additional trees across various operational sites.
• Nasirabad achieved a plant survival rate of over 85% through regular maintenance, monitoring, and replacement of plantations where required.

Through these efforts, GAIL contributes towards SDG 14 (Life Below Water) and SDG 15 (Life on Land), reinforcing its commitment to preserving biodiversity and ecosystem services.

Energy Management

At GAIL, energy efficiency and conservation are fundamental pillars of our commitment to sustainability. As India's leading Natural Gas company, we actively implement initiatives to optimize energy consumption, reduce emissions, and integrate renewable energy sources into our operations. We emphasize robust energy management which is crucial to reducing greenhouse gas emissions, mitigating climate change, optimizing energy costs, and enhancing operational efficiency. Our approach involves implementing energy-efficient practices and adopting advanced technologies in line with recommendations of Original Equipment Manufacturer (OEM). All major GAIL installations are ISO 50001 certified and strictly adhere to its Energy Management System framework.

Energy Saving Initiatives

GAIL continuously implements energy conservation measures across its operations through process optimization, deployment of energy-efficient equipment, digital monitoring systems, and adoption of innovative technologies. During FY 2025-26, the Company undertook several initiatives aimed at reducing energy consumption, improving operational efficiency, and minimizing greenhouse gas emissions.

Key initiatives included replacement of conventional lighting with energy-efficient LED fixtures, installation of high-efficiency motors, deployment of Variable Frequency Drives (VFDs) in Cooling Towers and Compressor systems, optimization of fuel gas utilization, enhancement of heat recovery systems, and reduction of flaring through recovery and reuse of process gases. These measures resulted in significant energy savings, operational cost reductions, and lower carbon emissions across GAIL's installations.

GAIL also achieved notable improvements in Specific Energy Consumption (SEC) at its major facilities through process optimization, efficient machine operation, and enhanced operational controls. In addition, innovative projects such as natural gas recovery from compressor systems, boil-off gas utilization, dual-fuel engine operation, and advanced energy management solutions contributed to resource conservation and improved operational efficiency. Through these initiatives, GAIL continues to strengthen its energy management practices while supporting its climate goals and commitment to sustainable operations.

Renewable Energy Integration

GAIL is accelerating its energy transition through strategic investments in renewable energy, clean technologies, and low-carbon solutions. The Company has expanded its renewable energy portfolio to 154 MW, comprising 118 MW of wind power and 36 MW of solar power, supporting both captive consumption and grid integration.

The Company continues to expand renewable energy deployment through rooftop, ground-mounted, and floating solar projects across its installations. Looking ahead, GAIL has set an ambitious target of achieving 3600 MW of renewable energy capacity by 2035 and is actively developing large-scale wind and solar projects to support India's clean energy transition and its own Net Zero aspirations.

Key Highlights FY 2025-26

Presently, the following RE Projects are under execution:

• 17.5 MW Floating Solar Plant at Pata, Uttar Pradesh
• 12.5 MW Rooftop Solar across various installations
• 178.2 MW Wind Power Project in Maharashtra

In addition, the following Projects have been approved, and work shall be commencing shortly:

• 600 MW Solar Power Project along with a 550-MWh Battery Energy Storage System (BESS) in Uttar Pradesh
• 100 MW Solar Power Project with a 22 MWh BESS in Maharashtra

Emission Management

At GAIL, we are committed to reducing greenhouse gas (GHG) emissions and contributing to India's Net Zero goals. Our emission management strategy focuses on decarbonization, energy efficiency, methane reduction, and clean energy adoption.

GAIL’s Emission Reduction Targets

• 100% reduction in Scope 1 & 2 emissions by 2035.
• 35% reduction in Scope 3 emissions by 2040.

GHG Emissions Reduction Strategy

GAIL has adopted a comprehensive and science-based approach towards achieving its Net Zero ambition by focusing on operational decarbonization, energy efficiency, electrification, energy transition, and low-carbon technology deployment.

1. Operational Decarbonization

As part of its operational electrification programme, GAIL successfully commissioned the electrification of one Natural Gas compressor at Vijaipur in January 2025 by replacing the conventional turbine drive with a 3.6 MW electric motor. Building on this achievement, electrification of three additional compressors of similar capacity is planned for implementation. The initiative is expected to reduce dependence on fossil fuel-based operations while enhancing energy efficiency and lowering operational emissions.

• Energy Efficiency and Process Optimization

Energy efficiency remains a cornerstone of GAIL's decarbonisation strategy, serving as the 'first fuel' in its transition alongside electrification, digitalisation, and process modernisation. GAIL has implemented Energy Management Systems (EnMS) across its major operations, with key installations certified to ISO 50001. During FY 2025-26, the Company undertook a range of energy efficiency and process optimisation initiatives across its facilities, supporting its Net Zero commitments of a 100% reduction in Scope 1 and Scope 2 emissions by 2035 and a 35% reduction in Scope 3 emissions by 2040.

• Key Highlights
• Optimisation of steam and power balance at Pata, including additional generation via Back Pressure Steam Turbine Generators and a ~900 TPD reduction in boiler steam generation, cutting an estimated 43,100 tonnes of CO₂ emissions annually.
• Cooling water circulation optimisation at Pata, generating annual savings of approximately INR 92 Lakh.
• Control system upgradation and the GTC Vent Gas Recovery project at Vijaipur, expected to save approximately 60,720 SCM of natural gas and reduce emissions by approximately 1,190 tCO₂e annually.
• Deployment of high-efficiency motors, BLDC fans, an upgraded Energy Monitoring System at Dibiyapur, and an APFC upgrade at Mansarampura Pumping Station.
• A modernised, energy-efficient display wall at the National Gas Management Centre, delivering roughly 33% lower power consumption and estimated annual savings of ~36,792 kWh.

2. Energy Transition

GAIL is accelerating its transition towards a low-carbon energy future through strategic investments in renewable energy, green hydrogen, compressed biogas (CBG), battery energy storage systems (BESS), and other clean energy solutions. These initiatives support the Company's Net Zero roadmap while strengthening energy security and operational resilience.

Renewable Energy Expansion: GAIL has established a renewable energy portfolio of 154 MW, comprising 118 MW of wind power and 36 MW of solar power. During FY 2025–26, the Company generated approximately 235 million units of renewable electricity, supporting the decarbonisation of its operations. A 10 MW solar power project commissioned at Vijaipur is expected to generate approximately 10.96 million units (1,09,61,400 kWh) of green power annually. As part of its long-term growth strategy, GAIL has set an ambitious target of achieving 3,600 MW of renewable energy capacity by 2035 through a combination of organic and inorganic growth opportunities. Several solar, wind, rooftop, and floating solar projects are currently under various stages of implementation.

Electrification of Operations: To reduce dependence on fossil-fuel-based equipment, GAIL successfully commissioned its first electric motor-driven pipeline compressor at Vijaipur by replacing a gas turbine-driven compressor.

Green Hydrogen: GAIL commissioned its first Green Hydrogen Plant at Vijaipur, based on a 10 MW Proton Exchange Membrane (PEM) electrolyser with a production capacity of 4.3 tonnes per day. The project represents a significant milestone in GAIL’s energy transition journey and supports the development of a low-carbon hydrogen economy in India.

Compressed Biogas (CBG): GAIL is progressing towards establishing 26 CBG plants across India through direct and joint venture routes. The first 5 TPD CBG plant based on 150 TPD MSW has commenced operations at Ranchi, while additional projects are under implementation across Bengaluru, Sultanpur, SBS Nagar, Moga, Ambikapur and Korba with a combined planned capacity of approximately 94.6 TPD of CBG.

Battery Energy Storage System: Recognising the importance of energy storage for renewable integration, GAIL is implementing specific BESS projects alongside its solar developments including a 550 MWh BESS with the 600 MW Jhansi solar project and a 22 MWh BESS with the 100 MW solar project at Maharashtra.

Key Highlights

• 154 MW renewable energy portfolio (118 MW wind and 36 MW solar).
• Approximately 235 million units of renewable electricity generated during FY 2025–26.
• Commissioned 10 MW solar power project at Vijaipur.
• First Green Hydrogen Plant (10 MW PEM electrolyser; 4.3 TPD capacity) commissioned and in operation at Vijaipur.
• Target to achieve 3,600 MW renewable energy capacity by 2035.
• Plan to establish 26 CBG plants by 2030.

3. Carbon Capture, Utilization & Storage (CCUS)

GAIL is advancing Carbon Capture, Utilization and Storage (CCUS) initiatives as part of its Net Zero roadmap. GAIL has undertaken a 15 Tonnes Per Day (TPD) CO₂-to-Ethylene pilot project in collaboration with M/s Entity1 Value Emission Private Limited (Entity1). The pilot plant skid has been installed at the Pata facility; trials activities are currently underway. In parallel, GAIL is exploring additional pathways for CO₂ utilisation, including the production of Sustainable Aviation Fuel (SAF), Ethylene and other value-added products.

Through its R&D efforts, GAIL is developing advanced technologies for CO₂ capture, utilization, and clean energy applications, including hydrogen production, storage, and blending.

These initiatives, undertaken in collaboration with leading research and academic institutions, support GAIL's commitment to innovation, decarbonization, and India's long-term climate goals.

Key Highlights

• 15 Tonnes Per Day (TPD) CO₂-to-Ethylene pilot project in collaboration with M/s Entity1 Value Emission Private Limited (Entity1).
• Commercial-scale CO₂ utilization opportunities under evaluation.
• R&D focused on CO₂ utilization, hydrogen technologies, and other low-carbon solutions.

4. Offsetting

Afforestation Initiatives: Over the last three years, GAIL has planted more than 4 Lakh trees across various locations. During FY, GAIL undertook the plantation of approximately 75,000 trees near Vijaipur (Guna), along with 48,000 trees under 'Ek Ped Maa Ke Naam 2.0' across multiple GAIL locations. These initiatives contribute to long-term carbon sequestration while supporting ecological restoration, enhancing biodiversity, and reinforcing GAIL's commitment to achieving its Net Zero ambitions.

Carbon Credits & Green Credits: GAIL is planning to participate in India’s emerging carbon markets and credit mechanisms to offset residual emissions.

GHG Emissions Data (FY 2025-26)

Emission Type	FY 2023-24 (tCO2e)	FY 2024-25 (tCO2e)	FY 2025-26 (tCO2e)
Scope 1 (Direct Emissions)	34,67,989	34,33,115	30,68,890
Scope 2 (Indirect Emissions from Energy Use)	3,86,108	4,30,242	4,40,977
Total Scope 1 + 2	38,54,097	38,63,357	35,09,867

Reducing Methane Emissions

Methane emissions represent a critical environmental challenge for the natural gas industry. As a greenhouse gas, methane has a global warming potential ~28 times greater than that of carbon dioxide. These emissions can occur across multiple stages of the value chain, including production, processing, transmission, and distribution.

Leaks and vents from equipment like Compressors, Storage Tanks, Flanges, Valves and Pipelines can release Methane into the atmosphere. Natural Gas Processing and LPG plants also vent out minuscule quantities in some processes, causing methane emissions.

We follow specific practices to reduce the production-related GHG emissions, such as:

• Conducting regular LDAR programmes.
• Monitoring and tracking our energy consumption
• Setting internal targets to reduce the energy consumption by using methodologies of GRI/SBTi and GHG Protocol
• Reducing Other Air Emissions

At GAIL, we manage air emissions using a cloud-based monitoring system linked to our emission analysers. The data is transmitted to Central Pollution Control Board (CPCB) and State Pollution Control Board (SPCB) in real time through web-based server systems. Several initiatives for emission management have been taken across all our locations to reduce air emissions.

Water Management

In FY 2025-26, GAIL sourced 20.01 million m³ of water, with the majority drawn from surface water sources, while groundwater accounted for less than 1% of total water sourced. Water consumption at water-stressed locations (Jhabua, Gandhar and Jamnagar) declined to 5.75% of the Company's total water use, down from 7.62% in FY 2024-25. To strengthen water resilience, GAIL regularly assesses water-related risks and opportunities across its operations and conducts third-party water audits to identify efficiency improvement measures.

GAIL ensures compliance with all applicable water management regulations through continuous monitoring of water discharge using the Effluent Quality Monitoring System (EQMS), with data reported to CPCB/SPCB portals in real time. Wastewater generated at operational sites is treated through Effluent Treatment Plants (ETPs) using physical, chemical, and biological treatment processes to meet prescribed discharge standards. Most treated water is reused for horticulture and other non-potable applications.

Rainwater Harvesting remains a key component of GAIL's water conservation strategy and is incorporated into the design of all major facilities. During FY 2025-26, GAIL harvested approximately 0.415 million m³ of rainwater across its operational locations, supported by ecological ponds, reservoirs, rooftop harvesting systems, and groundwater recharge structures at sites including Pata, Kochi, Ranchi, and Kailaras.

The Company is also implementing a Zero Liquid Discharge (ZLD) project at Pata, with an investment of approximately INR 352 Crore, to further reduce freshwater consumption and enhance water recycling, while Vijaipur continues to maintain zero liquid effluent discharge outside plant premises through ongoing ZLD practices.

Through continuous innovation, water conservation initiatives, recycling and reuse practices, and stakeholder awareness programmes, GAIL remains committed to minimising its water footprint and promoting sustainable water management across its operations.

Key Highlights

• 18.77 million m³ of water consumed during FY 2025-26 (20.01 million m³ sourced; 1.25 million m³ discharged).
• Groundwater constituted less than 1% of total water sourced.
• Water consumption in water-stressed areas reduced to 5.75% of total use, from 7.62% in FY 2024-25.
• Real-time effluent monitoring through EQMS with CPCB/SPCB reporting.
• Approximately 0.415 million m³ of rainwater harvested across operational locations during the year.
• Zero Liquid Discharge (ZLD) project under implementation at Pata; ZLD practices continued at Vijaipur.
• Treated wastewater reused for horticulture and other non-potable applications.

Waste Management

In FY 2025-26, GAIL continued to strengthen its waste management framework, guided by the Reduce, Reuse, and Recycle (3R) principles across its operations. GAIL Pata, one of the Company's major manufacturing facilities, generated approximately 2,105 MT of hazardous waste and 2,055 MT of non-hazardous waste during the year, with recyclable streams, including plastic, wooden, and metal scrap, recovered through authorised recyclers, and hazardous streams such as slop oil and used oil channelised for recovery and recycling. Resource recovery at Pata alone generated financial savings of approximately INR 4.11 Crore through the sale of recyclable materials.

GAIL ensures compliance with all applicable waste management regulations, maintaining records under the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016, including statutory submissions such as Form-4 (Hazardous Waste Annual Return) and Form-10 (Manifest for Hazardous Waste Disposal). As a registered Brand Owner and Importer under the Plastic Waste Management Rules, 2016, GAIL fulfils its Extended Producer Responsibility (EPR) obligations by procuring certificates from registered Plastic Waste Processors, ensuring environmentally sound recycling of an equivalent quantity of plastic packaging introduced into the market.

Waste-to-resource initiatives remain a growing focus across GAIL's operational locations. At Chhainsa, the 'Waste to Wonders' initiative saw scrap metallic pipes, metal sections and plates upcycled in-house into a Safety Helmet Stand for the Control Room, demonstrating the practical application of 3R principles while improving workplace safety and housekeeping. Similar resource-recovery efforts across other sites, including Vizag, Nasirabad, Hazira, KG Basin, and Jhabua generated further financial savings through the authorised recycling of metal scrap, plastic scrap, and used lubricating oil.

Through continuous waste reduction initiatives, regulatory compliance, resource recovery, and environmentally sound disposal practices, GAIL remains committed to reducing its environmental footprint and advancing sustainable waste management across its operations.

Key Highlights

• Resource recovery at Pata generated financial savings of approximately INR 4.11 Crore.
• 'Waste to Wonders' initiative at Chhainsa upcycled scrap materials into a Safety Helmet Stand.
• Railway Sleepers have been repurposed for Sustainable Pipeline Support Preservation at Central Warehouse, Vaghodia
• Continued EPR compliance for plastic packaging waste through CPCB/UPPCB registration.

Research and Development Initiatives

At GAIL, Research, Development and Innovation are integral to driving sustainable growth, operational excellence, and the energy transition. Our R&D initiatives focus on hydrogen, fuel cells and batteries, pipeline asset monitoring and integrity management, natural gas utilisation and biogas, polymer and catalyst development, CO₂ utilisation, and waste valorisation, supporting India's decarbonisation and Net Zero ambitions.

During FY 2025-26, GAIL collaborated with leading academic institutions and research organisations, including BITS Pilani, IITs, CSIR laboratories, and the Indian Institute of Petroleum (IIP), Dehradun, to advance indigenous technology development. Key research areas included oxidative coupling of methane to ethylene, CO₂ capture and utilisation (CCUS), hydrogen production and permeation studies, and pipeline integrity and corrosion management.

GAIL also spearheaded several collaborative research projects with other Oil & Gas PSUs through the Centre of Excellence in Oil, Gas and Energy (CoE-OGE) at IIT Bombay, focusing on produced water treatment, ammonia-blended fuels, Adsorbed Natural Gas (ANG), hydrogen and HCNG storage technologies, and hydrogen permeation through pipeline steel weldments. GAIL also marked the ground-breaking of its upcoming R&D Centre on a 30-acre site in Sohna, Haryana.

To foster innovation and entrepreneurship, GAIL continues to support start-ups through its flagship initiative, 'PANKH'. The investment corpus, initially established at INR 50 Crore, was expanded to INR 100 Crore and then to INR 500 Crore in January 2025. As of 31st March 2026, GAIL had committed approximately INR 76 Crore to 39 start-ups (INR 71.29 Crore disbursed); as at the date of reporting, this had grown to 41 start-ups with cumulative commitments of INR 83.66 Crore and disbursements of INR 78.06 Crore. GAIL also released its entire first-year committed contribution of INR 10 Crore to the MC2 Foundation, a Section 8 company promoting innovation and sustainable entrepreneurship across the energy sector.

Key Highlights

• INR 262.67 Crore invested in R&D and innovation during FY 2025-26 (against a target of INR 240.00 Crore) comprising INR 17.17 Crore towards collaborative research and INR 245.50 Crore towards innovation/capex activities.
• Collaborative research with BITS Pilani, IITs, CSIR laboratories, and IIP Dehradun.
• Active participation in mission-mode research at the Centre of Excellence in Oil, Gas and Energy (CoE-OGE), IIT Bombay.
• Ground-breaking of GAIL's upcoming R&D Centre on a 30-acre site in Sohna, Haryana.
• PANKH start-up investment corpus expanded to INR 500 Crore (from an initial INR 50 Crore).
• 41 start-ups supported as of the reporting date, with cumulative investment commitments of INR 83.66 Crore.
• INR 10 Crore first-year contribution released to the MC2 Foundation.

Please Refer Sustainability Report 2025-26 for more information:

https://www.gailonline.com/Sustainability_Report.html