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Tata Motors Sustainability Report 2015-16 15 Oct.Cdr TOWARDS TOMORROW SUSTAINABILITY REPORT 2015-16 Sustainability Report 2015-16 Content CONTENTS Sustainability Performance Highlights 4 5 About the Report Our Business Philosophy 7 8 From the Desk of CEO & Managing Director Corporate Governance 10 22 Stakeholder Engagement Materiality Assessment 24 26 Aspect Mapping Table Economic Performance 27 29 Customer Centricity Product Innovation 31 40 Energy and Climate Change Environmental Stewardship 47 57 Human Resource Management Occupational Health and Safety 65 73 Value Chain Sustainability Community Development 79 85 Independent Assurance Statement Glossary 89 92 GRI G4 Content Index NVG Mapping 99 100 UNGC COP Mapping Awards and Recognition 102 Sustainability Report 2015-16 Sustainability performace Highlights Sustainability Performance Highlights ₹ 406.92 ₹ 205.70 million invested towards million spent on CSR Ÿ ₹ 406.92 million invested towards environment protection environment protection initiatives Ÿ ₹ 205.7 million spent on CSR initiatives Ÿ ₹ 21.27 billion invested in Research and Development Ÿ 55% procurement from local sources Ÿ 9.02% electricity from renewable sources as percentage of total electricity consumption Ÿ 15% reduction in Lost Time Injury Frequency Rate compared to previous year Ÿ Among 10 Indian companies selected on Dow Jones Emerging Markets Index ₹ 22.17 55% Ÿ “Sustainable Plus Platinum Label” for the year 2015 by CII Centre of Excellence for Sustainable Development billion invested in procurement from Research and Development local sources 9.02% 15% electricity from renewable reduction in Lost Time sources as percentage of Injury Frequency Rate total electricity consumption compared to previous year Among 10 Sustainable Plus Indian companies selected on “ Platinum Label Dow Jones Sustainability for the year 2015 by ” Emerging Market Index 2016! CII Centre of Excellence for Sustainable Development 4 Sustainability Report 2015-16 About the Report About the Report This is the twelfth Annual Sustainability report of Tata contents of this report have been aligned as per the Motors Limited (TML) following the previous 11th Indicator Protocol of GRI Guidelines while applying the Sustainability Report for the year 2014-15. It details our reporting principles of materiality, stakeholder performance and achievements from 1st April 2015 to 31st inclusiveness, sustainability context and completeness March 2016 (FY 2015-16). and also ensuring adherence to the Principles of This report of TML highlights the performance, initiatives Inclusivity, Materiality and Responsiveness. The report is and information of our operations at sites of Dharwad, linked to the nine principles dened under the National Jamshedpur, Lucknow, Pantnagar, Pune and Sanand.The Voluntary Guidelines on Social, Environmental and report aims to disclose sustainability performance of India Economic (NVG-SEE) Responsibilities of Businesses in operations and in order to be more inclusive, reporting is India issued by the Ministry of Corporate Affairs, extended to include the performance of three subsidiary Government of India. companies and one joint venture (JV) which operate In order to obtain an objective and impartial assurance on outside the plant premises. The reporting scope has been the Report, TML has been seeking the same from third extended to Tata Technologies Ltd., Pune (72.32% direct party agencies on all its Sustainability Reports since it subsidiary); TAL Manufacturing Ltd., Nagpur and Tata started reporting. In the current year, authenticity of Marcopolo Motors Ltd., Dharwad in addition to the data and systems disclosed in Sustainability Report subsidiaries covered in the previous report-TAL 2015-16 and conformance with ‘in accordance’- Manufacturing Solutions Ltd., Pune (100% direct comprehensive requirements of the GRI G4 guidelines has subsidiary); TML Drivelines Ltd., Jamshedpur (100% direct been veried by DNVGL Business Assurance India Private subsidiary) and Tata Marcopolo Motors Ltd., Lucknow Limited as an independent third party assurance provider. (51%:49%, Joint Venture). They have conducted the assurance engagement as per TAL Pune manufactures machines, material handling Type 2 moderate level as set out in the AA1000 Assurance equipment and automation solutions required for Standard 2008, the statement of which forms a part of this manufacturing automobiles, TMLDL Jamshedpur Report. The assurance statement by DNVGL Business manufactures aggregates like axles and transmission and Assurance India Private Limited covers the summary of the TMML Lucknow builds the vehicle body on chassis rolled work performed, the manner in which the assurance out by TML. TTL is an Engineering Services Outsourcing engagement has been conducted, the extent to which and Product Development IT services Company providing TML has applied GRI G4 Guidelines and the conclusions on services to TML as well as to the global manufacturing the Report. industry Company Overview Key facts and gures regarding sustainability related data TML is the largest manufacturer in Indian automotive of all the three subsidiaries and joint venture are industry. It is the leader in commercial vehicles, and mentioned in the relevant sections but data on Economic among the top in passenger vehicles. This year we Performance, Product Responsibility and Supply Chain have been excluded for subsidiaries. Advancement in recorded a total turnover of ₹466.46 billion and total prot sustainability journey will help us to expand our reporting after taxes accounted to ₹2.34 billion. During Fiscal 2016, boundary to include subsidiary companies, vendor parks, sales in the domestic CV industry registered a growth of JVs and supply chain partners. Entire company’s economic 9.6% in volumes and the domestic PV industry registered a performance, permanent workforce and dened benet growth of 7.6%, supported by growth in both passenger plan is reported in particular sections. cars and utility vehicles. The reporting principles and methodology are adopted as Our International market presence spans across several per the “‘in accordance’ -Comprehensive” option of the countries in Europe, Africa, the Middle-east, Southeast Global Reporting Initiative’s (GRI) G4 Guidelines. The Asia, South America, Australia, CIS and Russia. The 5 Sustainability Report 2015-16 About the Report subsidiaries and associate companies have helped Cooperative Education Stuttgart, Germany. Mr. company to expand its operations to UK, South Korea, Butschekhas more than 25 years of experience in Thailand, South Africa and Indonesia. international automotive management, holding functions This year Mr. Guenter Butschek was appointed as the New like production, industrialisation and procurement. He has Managing Director of TMLwith effect from February 15, rich global experience of growing organisations and in 2016. Mr Butschek graduated in Business Administration developing new markets. and Economics with a diploma from the University of Our performance at a Glance Category Industry Sales Company Sales Market Share FY 2016 FY 2015 Growth FY 2016 FY 2015 Growth FY 2016 FY 2015 Commercial 704,440 642,641 326,755 317,780 Vehicles 9.60% 2.80% 46.40% 46.40% Passenger 2,771,099 2,575,680 127,118 136,653 Vehicles 7.60% -7.00% 4.60% 5.30% Total 3,475,539 3,218,321 8.00% 453,873 454,433 -0.10% 13.10% 14.10% 6 Sustainability Report 2015-16 Our Business Philosophy Our Business Philosophy In a free enterprise, community is not just “ another stakeholder in business but is in “fact the very purpose of its existence. Founder, Jamsetji Tata (1839-1904) 7 Sustainability Report 2015-16 From the Desk of MD & CEO From the Desk of CEO & Managing Director Guenter Butschek CEO and Managing Director Dear Stakeholders, T h e r e a r e m u l t i p l e I am delighted to present you the Twelfth edition of our annual challenges before us, from Sustainability Report ‘Towards Tomorrow’. global competition to The report explains our performance towards the Triple Bottom Line climate change, supply chain covering Economic, Environmental and Social aspects. The contents of this report have been aligned with the globally accepted Global sustainability to urban air “ Reporting Initiative (GRI) framework and follows the latest iteration G4 quality concerns. In such of the same. complexities,Inclusivity and The year gone by has brought positive news for India with robust GDP Innovation are the keys to growth, making the nation one of the fastest growing economies sustainability. Inclusivity to worldwide. India is in the midst of a paradigm shift in the way people commute as private and commercial users of transportation are stakeholder’s expectations increasingly adopting alternate public modes of transportation. and innovation to deliver FY 2015-16 has been a year of recovery for Tata Motors with focus on sustainable mobility introducing exciting mobility solutions, keeping customers central to solutions! our plans.With deep insight into customer needs, we constantly innovated across passenger vehicles and our renewed focus in the passenger vehicles business has helped provide a wide portfolio of products. We are also recapturing the customer mind space which is helping us to strengthen our brand positon in the passenger vehicle market.We have formulated a new strategy to enhance quality and ” customer experience which has improved our rank in J.D Power 8 Sustainability Report 2015-16 From the Desk of MD & CEO Survey both for customer service (3rd rank) and Initial technology areas and our innovation strategy.
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