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Mahindra SR 2017-18 Pagewise FN MAHINDRA & MAHINDRA LTD. SUSTAINABILITY REPORT FY 2017-18 INDEX EXECUTIVE MESSAGES 01 REPORTING PROCESSES 05 COMPANY PROFILE 06 CORPORATE GOVERNANCE 09 SUSTAINABILITY AND US 12 DRIVEN BY OUR PEOPLE 23 PRODUCT PERFORMANCE 30 ECONOMIC PERFORMANCE 38 ENVIRONMENTAL PERFORMANCE 45 SOCIAL PERFORMANCE 63 ANNEXURES 73 M E S S A G E F R O M T H E C H A I R M A N Our Rise philosophy is all about seeing problems as opportunies to grow, learn and improve. We look at Climate change in the same light. To us, climate change offers a financial and business opportunity worth $6 trillion over the next two decades. To make the most of this opportunity, we need to Rise to the occasion - collaboravely. I have been evangelising at various internaonal and naonal fora for corporates to come forward and align their strategies with the aspiraons embodied in the Paris Agreement through the Science Based Targets (SBTs) iniave. This will provide them a defined pathway to future-proof growth. The Mahindra Group is commied to the Paris Agreement. Thirteen Group companies including M&M Ltd. have commied to SBTs iniave. Two Mahindra companies with the highest emissions - Tech Mahindra and Mahindra Sanyo Special Steel - had Science Based Targets are already commied to SBTi earlier this year and MSSSPL has since become good for planet, they are good the first metals company in the world to have approved science based for prots too. Mahindra Group emissions targets. businesses have demonstrated While SBTs are good for planet, they are that decarbonisation is possible good for profits too. Mahindra Group businesses have demonstrated that while boosting employment, decarbonisaon is possible while boosng employment, investment, and innovaon. We are already generang revenue of USD investment, and innovation. 400 million from our green businesses. In the last 5 years, we saved enough energy to supply electricity to 14,525 Indian homes for a year. 01 MAHINDRA & SUSTAINABILITY MAHINDRA LTD. REPORT 17-18 Here are some of the iniaves undertaken at M&M to contribute to the planet, people and to do so profitably. P L A N E T P E O P L E P R O F I T Mahindra & Mahindra connues its Our people have been driving sustainability FY 2017-18 was a good year for M&M with a commitment to reduce its carbon footprint. at M&M and they will connue to do so. sterling performance, both by the Auto and In 2016, M&M became the first Indian Science-based targets will provide our Farm Equipment businesses. A normal company to announce its internal carbon employee with more opportunies to share monsoon, along with a revival in rural price of $10 per tonne of carbon emissions. their ideas on innovaon and technology demand, strong cost focus and a turnaround The move was in line with its business which will in turn help us in delivering value in the trucks business, ensured that along commitment to reduce its GHG emissions by in the future. with top-line growth, the Company posted a 25% over the next three years. We have strong boom-line growth as well. taken on emission and carbon footprint Diversity is also gaining increasing focus. reducon targets as per the SBT framework, When we started our gender diversity which is a tesmony of our connuing efforts journey, women constuted 16% of our The Mahindra Group crossed total workforce. to combat climate change. INR 2 trillion in market capitalisaon All our plants have been recerfied under the during the year. This is a tesmony to ISO 14001: 2015 and OHSAS 18001:2007 Today, there are 26% women at the its commitment to the Rise of all its standards and are in the process of adopng entry level and 7% at the mid and stakeholders. the revised environmental standard ISO senior leadership levels. 14001: 2015. The Mahindra Leadership University (MLU) is The future looks bright as we rise to the Over the last two years, our total a strategic iniave to groom and develop opportunies hidden in the challenge called water consumpon has come down our talent. Mahindra & Mahindra MLU climate change. by almost 1,34,696 m3. provided more than 16,59,620 man-days of training in FY 2017-18 to create leaders with both leadership and domain capabilies. Automove Sector and Farm Equipment We work for a brighter future not just for Sector recycled and reused 35% and 43% ourselves, but also for the communies respecvely of the total water consumed. where we operate. Our CSR contribuons stand at INR 81.97 crore in FY 2017-18 with a Anand G. Mahindra Our flagship iniave, Hariyali has become a Chairman, Mahindra Group tree plantaon movement. In FY 2017-18, focus on the girl child, youth and farmers in over 1.5 million trees were planted under the the domains of educaon, health and project. Of this, M&M alone planted environment. 1,302,488 trees. Livelihood training followed by placements We follow a zero-waste philosophy and was provided to 6,323 young people through manage waste at every stage - from the Mahindra Pride Schools and 41,687 were prevenon to minimisaon, from reuse to trained through the Mahindra Pride recycling and from energy recovery and classroom model. disposal. As part of this philosophy, five Nanhi Kali, a flagship CSR project that plants were cerfied as zero waste to landfill supports the educaon of underprivileged in April 2018. girls is supporng 1,43,992 Nanhi Kalis across 4,900 centers, in 12 states. Our Integrated Watershed Management Program with the government of Madhya Pradesh has been implemented in 48 villages benefing 35,265 people. 02 M E S S A G E F R O M T H E C H A I R M A N , G R O U P S U S T A I N A B I L I T Y C O U N C I L Mahindra's impact in the area of sustainability is the result of acons taken by our colleagues across the company. This reporng year the Mahindra Sustainability Framework was formally launched on 2nd October, 2017 at all Mahindra locaons across the country. The Framework is now a guiding light in all the sustainability programs and iniaves taken up by the company. ENGAGING THE EMPLOYEES While the company has taken a lot acon to reduce its carbon footprint, the highlight of the year was the scaling up of acons taken by individual employees to adopt sustainable pracces in their lives. More than 25,000 people across the company adopted LED lights, energy efficient fans, energy efficient air-condioners and aerators for taps. Many employees took steps to reduce their energy consumpon at home and parcipated in a compeon run by the company. They also adopted cloth bags instead of plasc and At Mahindra, we took enthusiascally parcipated in programs where experts explained how each individual the three brand pillars of could reduce his or her own footprint. Mahindra's rise philosophy - DEVELOPING accepting no limits, TALENT alternative thinking and Our goal is to be one of the top 50 most admired global brands by 2021 and it is only driving positive change - our people who can help us reaching that goal. to the next level this year. We consistently encourage gender and cultural diversity among our We worked harder, workforce. It is a maer of pride that the Swaraj Division experienced a 65% smarter and faster to make increase in women employees in core our products more sustainable. tractor manufacturing over last year. Our innovations focused on To ensure that this talent pool is equipped with the right skills to navigate the emerging making processes business landscape we have regularly conducted training sessions. During the environment friendly. reporng period the company devoted about 60,000 mandays towards trainings which are imparted through the innovave Mahindra Leadership University, which is a strategic iniave to groom and develop talent. 03 MAHINDRA & SUSTAINABILITY MAHINDRA LTD. REPORT 17-18 The employee social media outreach They were also exposed to the intensive work that we will achieve the goal long before the iniave, M-advocates, created 1,500 pieces done in Mahindra factories on energy deadline of 2030. In addion the quantum of of Mahindra related content which led to efficiency and adopon of the ideas renewable energy in our energy basket over 400,000 engagements and garnered developed during the exposure visit helped jumped from 3,909 MWh in the previous over 22 million impressions on social media. them reduce their costs of operaon. year to 8,972 MWh this year, an increase of over 100%. EXCELLING ADOPTING WITH PRODUCTS TECHNOLOGICAL The year also saw one of our factories ADVANCEMENTS become the first in the country and the Mobility and agriculture are two key areas for second in the world to be cerfied as a zero waste to landfill locaon. impact in the sustainability journey and To develop and deliver products of the Mahindra and Mahindra Ltd. is well future, one needs to adopt and adapt to the posioned to make a contribuon in both. In technologies and processes of the future. As a concerned corporate cizen we are the last financial year we made significant Next generaon digital technologies are eager to address environmental issues of progress in both the e-mobility and the farm impacng convenonal business models naonal importance. With the aim of equipment spaces by introducing products and this trend will only accelerate in the addressing the Delhi air polluon crisis that are eco-friendly. coming years.
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