Hero MotoCorp Limited Sustainability Report 2020 GRI Standards

TODAY FOR TOMORROW "WE MUST DO SOMETHING FOR THE COMMUNITY FROM WHOSE LAND WE GENERATE OUR WEALTH"

Dr. Brijmohan Lall Munjal (Chairman Emeritus) Contents Today for Tomorrow

04 16 32 We are committed to building a better tomorrow. Everything we do today is THE WORLD OF SUSTAINABILITY ECO guided by our vision for the future. We are entering the next phase of our growth through concerted efforts in expanding our global presence and HERO MOTOCORP STRATEGY EFFICIENCY demonstrating innovation focus. We are the world’s largest Commitment to sustainability Preserving natural capital for two-wheeler manufacturer, with is at the core of our business future generations is a nearly 100 million customers and paves the way for better responsibility we uphold. We care Our offerings ensure steady performance, catering to the needs of millions across the globe. We work controls and products. and reduce our impact on of satisfied customers. We also champion holistic socio-economic relentlessly towards making the environment, while creating 17 Sustainability Approach world greener, safer and mobility solutions. empowerment in areas where we operate and contribute to the nation’s 18 Sustainability Governance more equitable. Structure 33 Environmental Consciousness inclusive growth agenda. Every action is well thought through and is 04 Message from the Chairman 20 Risks and Opportunities designed to benefit the enterprise as well as the communities. 05 Message from Sustainability 22 Financial Overview Steering Committee 26 Stakeholder Engagement 06 About the Report 28 Hero MotoCorp's Ambitious 07 Triple Bottom-Line Targets for Sustainability 2020 08 Company Overview (HATS 2020) 10 Product Line up 30 Materiality Assessment 12 Operations and 31 Pillars of Sustainability Global Footprint 14 Sustainability at HMCL: The Journey

40 44 48 RESPONSIBLE PRODUCT PEOPLE Our employees are our VALUE CHAIN STEWARDSHIP in-house Heroes and we We work with our partners We incorporate design for believe in nurturing them to jointly create long-term environment philosophy for tomorrow. value. in our product strategy. 49 Workforce 41 Value Chain 45 Product Strategy

64 78 80 INCLUSIVE AWARDS AND ANNEXURES 80 Assurance Report GROWTH PARTICIPATION 83 GRI Content Index We focus on strengthening relationships with the community. 79 65 Social Commitment 76 Response to COVID-19 WAY FORWARD Hero MotoCorp Ltd. Sustainability Report 2019-20

MESSAGE FROM THE CHAIRMAN MESSAGE FROM THE SUSTAINABILITY STEERING COMMITTEE Leading the way for a Promising responsible growth sustainable tomorrow for a better tomorrow

DEAR STAKEHOLDERS, Being sustainable in approach is also in With the Business Continuity Plan in DEAR STAKEHOLDERS, The automobile industry is undergoing We are thankful to our stakeholders line with our new vision to “Be the place, Hero MotoCorp was among the a big transition driven by cleaner and who have trusted and recognised our Sustainability and responsible growth Sustainability is in the DNA of Hero Future of Mobility.” We amply safety-focused regulations, ever- ability to face the challenges of the remain at the core of Hero MotoCorp’s MotoCorp and we are committed demonstrated this in February this year resume plant operations on May 4, 2020 increasing technology and growing hour. Our blueprint for sustainability technology, innovation and the to enhance the quality of life in the infirst a gradualautomobile manner. companies This decision in India was to innovation focused around connected is enabling us to create a strong expansion of our global footprint. communities around us by delivering kind event at the Centre of Innovation based on strict policies and protocols and shared mobility solutions. business plan, deliver great products, environmentally responsible solutions, andat the Technology Hero World (CIT) 2020 in -the a first-of-its- northern that encompassed every possible and nurture inclusive growth to work Sustainability is indeed a way of life at in line with our Sustainability Policy. Indian city of Jaipur, where we measure to ensure the health and safety Concerns on sustainability are towards a better world. Hero MotoCorp! showcased the future roadmap of your encouraging nations across the world Our strategy is driven and supported Company with the display of an array of manufacturing plants and retail to work towards reduction in carbon This sustainable business strategy has by a powerful commitment to develop new products and concepts. customerof everyone touch across points. all our offices, footprint, while exploring and adopting enabled us to retain the coveted position alternate-fuel technologies. of being the world’s largest manufacturer and manufactured in a sustainable and We also reiterated our ambitious targets Our strong and debt-free balance sheet of motorcycles and scooters in terms of ethicalefficient manner. solutions that are designed of being carbon neutral by 2030, 500% enabled us to manage liquidity We are committed towards progressive unit volumes produced and sold in a water positive by 2025, and waste effectively and provide support to transformation of the society through calendar year by a single company for The aim is to create mobility solutions neutral by 2025. our efforts towards education, health 19 consecutive years. which are ‘ever better’ as measured the entire ecosystem. and hygiene, skill development and the by our customers, employees and Enhancing diversity and inclusion (D&I) partners, ensuring financial viability of environment. Hero MotoCorp has been at the stakeholders. is a key focus area for the organisation. At Hero MotoCorp, we continue to play a forefront of sustainability and As a result of this concerted effort, the critical role in achieving the Sustainable environment-friendly initiatives, number of women in our workforce Development Goals (SDGs) through driving these core principles right crossed an important milestone of appropriate business practices and through business planning, operations 1,000 in FY20. focused investments. Our Corporate and product line-up. In keeping with Social Responsibility (CSR) framework this commitment, the Company was the During the year, Hero MotoCorp is designed to make the maximum surpassed 95 million units in cumulative measurable impact through multiple to launch a BS-VI motorcycle – sales since its inception. We are now on social interventions. thefirst Splendor two-wheeler iSmart manufacturer 110. in India the cusp of creating yet another world record, hitting the historic milestone of In keeping with our vision and mission, 100 million motorcycles and scooters in we are also stepping-up our efforts cumulative sales. towards developing mobility solutions for the future through a collaborative As we strive for sustainable growth, we approach. Our teams are constantly are also cognisant of the challenges working on new business models, new faced by the economy and industry. It vehicle concepts and alternative was due to this foresight and agility that mobility solutions, keeping Hero MotoCorp ahead of the curve. corporates to take safety measures when theHero Coronavirus MotoCorp was pandemic among hit the the first world. Dr. Pawan Munjal With the safety and wellbeing of the Chairman & CEO Vikram S. Kasbekar employees and their families as our Executive Director - Operations topmost priority, we proactively shut down all our manufacturing plants, (Plants) & Chief Technology Officer and moved to work from home (WFH), Neerja Sharma evenoffices before and other governments facilities aroundworldwide the Company Secretary & Chief world put in place the lockdown. Compliance Officer Vijay Sethi Head- CSR, CIO, CHRO

4 5 HERO MOTOCORP Hero MotoCorp Ltd. Sustainability Report 2019-20

TRIPLE BOTTOM-LINE About the report Sustainability dashboard Let us take you through the year's story FY20 FY19 with our third sustainability report titled ‘Today for Tomorrow’. Operational and Financial REPORT PROFILE 6.39 29,614 3,633.26 12.3 The criteria for indicators/information presented in the report is the GRI (Global Reporting Initiative) Standards and this report conforms to the same. The disclosures are in accordance with the 7.72 34,342 3,384.87 9.9 ‘Core’ option prescribed by GRI. The information in this report Vehicles Net income Profit after tax PAT margin (million) (PAT) (%) March 31, 2020. relates to the fiscal 2019-20, i.e. from April 1, 2019 to (₹ in crore) (₹ in crore) manufacturing plant sites at Dharuhera and Gurgaon in Haryana, HaridwarThe scope in of Uttarakhand, the reporting Neemrana boundary inincludes Rajasthan, our fiveHalol Indian in Gujarat; our Global Parts Centre (GPC) at Neemrana; Centre for Innovation Environment 1,60,077 7.7 1,33,348 Theand Technologyenvironment (CIT) performance in Jaipur; dataand ourdisclosed corporate in the office report in Delhi.is pertinent to the manufacturing sites, GPC and CIT. The disclosure 1,77,273 7.0 1,44,025 addition to the aforementioned facilities. The major indicators Total energy Total renewable (solar) Emissions regarding social performance covers our corporate office, in related to governance have also been covered in this report. consumption (MWH) capacity (MW) (tonnes of CO2 equivalent) DATA COMPILATION METHODOLOGY The data is collected through various internal reporting systems for inclusion in the report. The reporting systems are, for the 10,08,960 4 4 10,56,447 1 2 statementsmost part, different in the Annual from thoseReport applicable for FY20). to We financial have employed information Total water systemspresented and in practicesour financial in place statements for regular (please and refer reliable to the tracking financial of Zero waste to landfill CII GreenCO rated withdrawal (KL) various sustainability performance data. We have pointed out any certified facilities facilities (Cumulative) wherever applicable. We reserve the right to change our internal guidelinessignificant regardinglimitations the in theinclusion information of data presented in the Sustainability in the Report, Report; however the same will be clearly communicated at the time. Social ASSURANCE 131.22 21+ 4,15,149 6,56,407 indicators in this report has been provided by Price Waterhouse CharteredLimited Assurance Accountants on certain LLP, in agreed/identified accordance with sustainabilitythe International 101.95 14+ 3,67,103 5,03,305 Standards on Assurance Engagements (ISAE) 3000 (revised), Assurance Engagements Other Than Audits or Reviews of CSR expenditure Trees planted in Beneficiaries Beneficiaries Historical Financial Information. The subject matter, criteria, Hero Green Drive of education of Ride Safe procedures performed and limited assurance conclusion are (lakh) initiatives under initiatives (₹ in crore) presented in the assurance report attached at the end of Shiksha this report.

SUGGESTIONS AND FEEDBACK We welcome any comments and/or suggestions on the Please send your comments to [email protected] report's content and flow.

6 7 HERO MOTOCORP Hero MotoCorp Ltd. Sustainability Report 2019-20

COMPANY OVERVIEW

At Hero MotoCorp, we encourage inclusive growth and believe that the efforts undertaken during the year will Trusted around the world place us in good stead to seize future growth opportunities. We operate with an integrated value chain that encompasses everyone from supply chain partners to dealer networks. Our passion to innovate and develop cutting-edge technologies help us build a future-ready enterprise.

At Hero MotoCorp, we have always believed in delivering inclusive Innovation Technology Sustainability growth and we are convinced that our consolidated efforts will place We engage in developing solutions We regard technology as a We are committed to conserving that bring a positive change to strategic enabler and leverage resources while ensuring us in a good position to capitalise on the opportunities in the future. the society with patents, new both new technology and new sustainable growth and fostering products and in-house world-class disruptions to achieve excellence relationship with communities in technologies for world-class in what we develop and the most ethical way possible. performance and results. manufacture.

CREATE As a leading two-wheeler manufacturer, we are focused on delivering long-term value and committed to delivering products, A MOBILITY ROADMAP providing services and creating employment opportunities that contribute towards economic and social value. We practice strategies of operational excellence and are leaders in chosen market segments. We will continue to create unmatched value by maintaining foresight through scale, cost leadership and innovation. of a mobility roadmap. Set best OUR practicesRe-define and mobility benchmarks through for the the creation ESSENTIALS FOR A FUTURE-READY ENTERPRISE MISSION industry.

COLLABORATE Steering next-generation business transformation WITH PARTNERS AND BROADER through digitalisation OUR TEAMS VISION Capitalise on our unique position to Strong focus on R&D and leverage partnerships and teamwork technology to achieve technology leadership community, while we care for both internaland co-create and external solutions environmental that benefit the Create a sustainable eco-systems, and support sustainability. value chain eco-system Be the future through innovations in the INSPIRE business model. OUR STAKEHOLDERS of mobility Improvise safety practices Moving forward with purpose, we will and leverage de-risking inspire our colleagues, customers, and strategies communities. We thrive on the local OUR and global stage. Be one of the industry VALUES leaders in CSR and benefit the community at large

PASSION INTEGRITY RESPECT Allocating capital efficiently with emphasis We have the ‘JOSH’ – we are driven to Our behaviour is ethical. We do We show regard and appreciation for on cost competitiveness to deliver our best every day; loving what the right thing even when no everyone; celebrate diversity, act with enhance healthy cash flow we do, be bold and have fun. one is watching.

COURAGE RESPONSIBLE confidence yet humility. In the process of value creation and becoming a future-ready enterprise, We are risk-takers, pioneers, unafraid We are accountable for our actions and we align our priorities to contribute to question the status-quo. performance; delivering outcomesas to the United Nations Sustainable a team, caring for each other and the Development Goals (UN SDGs). environment.

8 9 HERO MOTOCORP Hero MotoCorp Ltd. Sustainability Report 2019-20

PRODUCT LINE-UP Promising delight to consumers

GO VERTICAL TO THE CORE, EXPAND HORIZONTALLY TO THREE DISTINCT SEGMENTS TO THE ENTHUSIASTS We reinstated our presence in the premium segment with the concurrent launch of three motorcycles and two scooters – XPulse 200, XPulse 200T, Xtreme 200S, Maestro Edge 125 and Pleasure+ 110. We also launched India’s first BSVI motorcycle, the Splendor iSmart BSVI.

Xtreme 200S XPulse 200T

Motorcycles

RETAINED THE CORE USHERED THE ALL-NEW

XPulse 200 Xtreme 160R

Scooters

HF Deluxe Splendor iSmart Passion Pro E X C I T I N G S C O O T E R L I N E - U P

Splendor+ Super Splendor Glamour Pleasure+ 110 Maestro Edge 110 Destini 125 Maestro Edge 125

10 11 HERO MOTOCORP Hero MotoCorp Ltd. Sustainability Report 2019-20

OPERATIONS AND GLOBAL FOOTPRINT

Expanding touch points Global parts centre

Neemrana, Rajasthan

Hero MotoCorp is one of the leading two-wheeler companies headquartered in New Delhi, with state-of-the-art manufacturing R&D centres facilities in India, Colombia and Bangladesh. We have six plants in Centre of Innovation and Technology, Jaipur

India, taking our total installed capacity above 9 million units of Hero Tech Center, Germany two-wheelers per year.

Our state-of-the-art Global Parts Centre (GPC) at Neemrana, Rajasthan supplies the parts to our local and global markets. Similarly, Centre of Innovation and Technology (CIT) at Jaipur is now facility — The Hero Tech Center GmbH insupported Germany. by our first global R&D

Hero MotoCorp has upgraded the environmental management system of all its plants to the latest version of ISO 14001: 2015.

ISO:45001. All plants are also certified

Global manufacturing capacity 9 million+ Annually

Manufacturing capability Annual capacity (million units)

Dharuhera Gurgaon Haridwar Neemrana Halol Chittoor 2.1 2.1 2.7 0.8 0.8 0.4

Colombia Bangladesh 0.08 0.15

12 13 HERO MOTOCORP Hero MotoCorp Ltd. Sustainability Report 2019-20

Sustainability at HMCL: The journey

FY16 FY17 FY18 FY19 FY20

• Internal capacity building • Capacity building continuation • Sustainability framework • CII ITC Domain • Sustainability Policy, developed Excellence-Environment and CSR Sustainable Procurement Guidelines • Stakeholder engagement initiation • Stakeholder engagement • Governance structure • GreenCo evaluation of manufacturing • Water audits, energy audits, zero waste • strengthened plants in full swing and top 20 shortlisted) Materiality (100 issues identified • Sustainability long and short term • Supply chain ESG risk assessment • Water positive assessment for • Onboarding of core team to landfill strategies roadmap developed through Green Partner Development Neemrana Facilities – 21 times water programme positive • Hero MotoCorp's Ambitious Targets for Sustainability 2020 • Participated in DJSI and • Performance improvement in DJSI (HATS) Sustainalytics Global Index achievement in CII ITC Corporate • First GreenCo platinum rated • First Sustainability Report released ExcellenceCommendation for significant plant in automobiles for FY18 • Exposure of select dealer partners in GPDP event of June 2019 • Second Sustainability Report released for FY19

14 15 SUSTAINABILITY STRATEGY Hero MotoCorp Ltd. Sustainability Report 2019-20

SUSTAINABILITY APPROACH SUSTAINABILITY Roadmap for the future

STRATEGY As part of our strategy planning process, we scan the external factors for megatrends and understand how these trends influence the automobile sector. The sustainability strategy is developed basis identification of measurable benefits alongwith long-term risks and opportunities.

A brief from the Sustainability Core Team Vision Identifying Prioritising Targets Implementation Mission the issues effectively and KPIs Hero MotoCorp has been one of the Values that matter leaders in the automobile industry and is committed to institutionalise sustainable practices in every aspect of business. The Sustainability Core Team The strategy focuses on investment, • Drive performance by facilitating drives the sustainability initiatives drive performance, and engages the company to achieve goals across the enterprise level. internal and external stakeholders. through mutual buy-in. It is developed keeping in mind the The team formulates the roadmap • Respond to crisis through scanning following objectives: for effective implementation. existing and upcoming risks. The strategies are implemented • Integrate the initiatives and aligning through cross-functional engagements them with business priorities. for focused efforts as HATS 2020. with teams across enterprise. • Direct resources and investment into Today,We set weour stand first sustainability at a point where targets we The Core team continue to work the areas that are most important. have achieved what we aspired for. towards capacity building, engaging We are encouraged and are laying a with various stakeholders, learning • Engage stakeholders through and benchmarking from multiple responsive communication, regular channels/platforms and steering the disclosure and robust reporting. firm foundation for 2030. sustainability drive.

Birendra S Yadav Nihal Kaul Rajesh Sharma Anirudh Kumar

16 17 SUSTAINABILITY STRATEGY Hero MotoCorp Ltd. Sustainability Report 2019-20

SUSTAINABILITY GOVERNANCE STRUCTURE

POLICIES – THE DRIVERS FOR PROGRESSING COMPLIANCE – EXISTING AND BEYOND RESPONSIBLY Integrity and responsibility As a leading organisation, our major aim is to ensure We have instituted several policies to ensure ethical conduct we manage our compliances effectively and we have of our business. Our policies ensure that we always engage E-Compliance tool in place. The tool is periodically updated to ensure the latest changes in statutory and our key policies pertaining to Insider Trading, Quality, legal requirements are incorporated so that it can provide Safety,with our Environment, stakeholders Related in a justifiable Policy Transactions, manner. Details CSR of and automated alerts and a real-time dashboard to the Whistleblower Policy and Code of Conduct are available on management for graphical reports. Through this tool, we are the corporate website at https://www.heromotocorp.com/ constantly striving for improved compliance, discipline and en-in/about-us/key-policies.html. We have also launched culture in the organisation. our Sustainability Policy which will consolidate our effort Hero MotoCorp has one of the highest standards of towards our sustainability agenda. governance in its business, striving to maintain parity and transparency that enable long-term value creation for all stakeholders. Hero MotoCorp sustainability policy Our approach to a rapidly expanding global marketplace is guided not only by our insights into customers’ needs and expectations but also by our conviction that sustainability is the right compass to tackle long term strategic business goals. Our sustainability efforts are aligned with our vision, mission and values. Our consistent focus is on ESG SUSTAINABILITY GOVERNANCE – SUSTAINABILITY IN THE DNA (Environment, Social and Governance) parameters to enhance Hero MotoCorp’s triple bottom line (people, planet Be the Future of Mobility. The Company has developed a strong Hero MotoCorp is committed to Through strong sustainability foundation for making corporate incorporating sustainability into the governance, we are moving ahead in Theand profit).company This endeavours focus will to strengthen provide an our engaging vision to environment for its people to perform to their true potential and governance a way of life by constituting DNA and all facets of its business. As achieving the following milestones: will continue its focus on value creation and enduring relationships with its stakeholders. an active and well-informed Board stewards of Hero MotoCorp, our Board • Consolidate leadership position with using several Board Committees. With plays an essential role in determining strategic expansions and ventures regulations becoming more stringent strategic priorities. Hero MotoCorp’s developed a robust governance to ensure continuity and accountability of our commitments. on the domestic as well as international sustainability governance structure has • Sustain value creation across the We have defined our sustainability strategy to act as the guiding light for our business eco-system and have front, our policies are developed and a cross-functional representation with eco-system and build resilience implemented to ensure that business is leadership oversight at the Board level. against down cycles conducted ethically and responsibly. The The senior leadership team oversees • Maintain global leadership in the the sustainability agenda and Environmental sector of public policy, risk, international skills, strategic decisions and champions All statutory compliances with respect to preventive maintenance schedule and environmental clearances Board of Hero MotoCorp reflects a mix the cause through Sustainability through respective Pollution Control Board are taken on time. We have installed several systems and Steering Committee. equipment to become a zero-discharge organisation, thereby avoiding compliance issues from any of the qualifications and varied experience. Pollution Control Boards. A brief on environmental compliance is also included in the agenda for the Board Meetings on a quarterly basis where any non-compliance, show-cause notices, orders or any changes in the

regulations are reviewed. We have not been levied with any environmental fines during the reporting period. CSR SUSTAINABILITY GOVERNANCE STRUCTURE we operate by improving the societal condition and solving the problems most important to the stakeholders. We strive to strategically deploy our CSR expenses to reaffirm our “social license to operate” in the areas where

Board Health, Safety and Human Rights Sustainability With a view to strengthen our safety standards, we have also established ISO 45001 standard which ensures Steering Committee beyond compliance with applicable norms related to Factories Act, 1948. During the reporting period, there

Core Sustainability Team has been no non-compliances identified related to discrimination, child or forced labour.

voluntary codes concerning health and safety impacts of products and services, product related marketing communications, andDuring product the reporting information year, disclosure there were and no labelling. incidents of fines levied on us or non-compliance with respect to the regulations or Risk Finance Systems Investor Investor Planning Branding Relations Sales and Corporate Corporate After Sales After Secretariat Operations Information Information Management Management Environment Development Research and Research Responsibility Marketing and Marketing Global Product Global Product Communication Corporate Social Corporate Human Resource Human Resource and Supply Chain and Supply Health and Safety Strategic Sourcing Sourcing Strategic

18 19 SUSTAINABILITY STRATEGY Hero MotoCorp Ltd. Sustainability Report 2019-20

RISKS AND OPPORTUNITIES

Future-proofing our business and Identified risks Potential impact Opportunities Mitigation measures capitalising on opportunities Economic

Currency devaluation Higher cost of imported Exports could potentially Hedging leading to a higher raw material, Economy become cheaper We have operations across several geographies, and we are impacted import bill Economic Declinemay experience in sales, inflationimpact Players who can modify Intelligence on local by global as well as regional trends in the automobile industry, policy, uncertainty in key on EBITDA margins policies to meet local developments and a very environment, regulations, fuel rates and commodity prices. global markets agile global business team Diminishing Automobile purchase Customersrequirement of can higher benefit CC Largely government purchasing power is considered a 2W’s may settle for lower led measures by setting discretionary spend and CC models and that may, interest rates, control of is directly correlated to to an extent, provide relief money supply etc. purchasing power Risk Management at Hero MotoCorp In order to provide unerring stringent norms and regulations are is a coordinated process and mechanism, the risk management ongoing concerns for the Company. integrated mechanism. The Board is process is also facilitated by audit. The Adding to these are high cost of capital Environment responsible for the overall process of approach to manage business risk is and complex logistics. This external risk management, which is supported through cross-functional involvement context, considering the gamut of Promotion of electric EV sales replacing the New revenue streams A credible electric by Enterprise Risk Management and communication across stakeholders. factors coupled with the internal vehicles (EV) traditional IC engine such as those linked to vehicle plan programme. The programme helps environment, forms the basis of our volumes connectivity, charging Company’s business units to capture Volatility associated with the diagnostics of risks and opportunities. infrastructure etc opportunities and attend to the risks through an institutionalised approach. sensitivity to economic cycles, fluctuating consumer demand, Rising pollution levels Public transport taking Rising pollution levels give Transition to BSVI norms is over private modes of rise to shared mobility that one of the biggest mitigation transportation impacting in turn opens new revenue step towards checking rising 2W sales volumes streams pollution levels

Extreme weather Decreased demand of 2W New product design as a A robust business continuity conditions solution plan to be in place

Social

Spread of any pandemic Reduced demand for Strengthening of A robust business continuity leading to changing mobility digitisation drives plan to be in place customer behaviour across the organisation

Manpower issues A deeper focus on industrial An uninterrupted smooth functioning of plant relation promises a long worker-management operationsSignificant impact on the term and healthy relation communication with focus with the manpower on understanding and resolving issues

Human health and safety Manpower may stay out of Development of such Proactive and scheduled workforce for long period preventive and wellbeing health checkups directly impact planned measures that raise the production overall health quotient of the organisation

20 21 SUSTAINABILITY STRATEGY Hero MotoCorp Ltd. Sustainability Report 2019-20

FINANCIAL OVERVIEW

Investing today with prudence ECONOMIC VALUE DISTRIBUTED Operating costs Total expenditure on employees Payments to providers of capital and sustaining tomorrow (₹ in crore) (₹ in crore) (₹ in crore) 22.02 1,841.70 29,331.06 1,730.24

In keeping with the core values of Hero MotoCorp, we believe the 25,718.11 role of the organisation truly goes beyond performance in the arena of business. 8.60

25,718.11 1,841.70 22.02 We are continuously seeking to invest economic impacts which culminate in the nation moving. We support job our surplus in attractive growth increased economic activity, reduced creation through the vast eco-system. FY19 FY19 FY19 opportunities, emerging technologies social disparity and enhancement Communities are leveraged and FY20 FY20 FY20 and futuristic initiatives. While we in the quality of life. We provide empowered by our community generate direct economic value through mobility solutions thereby enabling development agenda through our operations, products and services, people, enterprises and institutions Corporate Social Responsibility. we also work towards nation-building to realise new possibilities and explore new opportunities to keep by contributing to significant indirect

FINANCIAL ASSISTANCE FINANCIAL HIGHLIGHTS RECEIVED FROM GOVERNMENT

Earnings per share Subsidies Contribution to the exchequer Voluntary community investments Benefits for carrying out R&D

(₹) (₹ in crore) (₹ in crore) (₹ in crore) (₹ in crore) 41.14 181.91 130.61 419.30 12,010.61 169.48 345.46 101.95 9,775.07

181.91 345.46 9,775.07 130.61 0 FY19 FY19 FY19 FY19 FY19 FY20 FY20 FY20 FY20 FY20

22 23 SUSTAINABILITY STRATEGY Hero MotoCorp Ltd. Sustainability Report 2019-20

Shareholding pattern as on March 31, 2020 (%) Finance annual workshop, 2019 Finance annual workshop in 2019 had insightful Further there was an engaging session on 'Automation 1.4 0.5 Foreign Portfolio Investors/ Foreign Institutional Investors/ in Finance', followed by workshop session on 'Paperless 0.4 department about the FY19 highlights, and FY20 focus organisation', 'Cost optimisation', 'Productivity on spends', 1.7 Foreign Nationals - 34.3% 0.3 areas.updates External by each Expert finance conducted unit from an the engaging plants, corporate session 'Single day closure'. Promoters & Promoter Group - 34.6% 2.0 on ‘Capital market and valuation’ and covered areas on Indian Public - 8.3% 'Drivers for valuations' and how it can be different for Another session was on people capability building Insurance Companies - 8.3% various industries. programme, DISHA 2.0. The session focused on FY19 8.2 achievements and renewed vigor and focus on building Mutual Funds / AIF - 8.2% 34.3 people capabilities in FY20. Financial Institutions / Banks/NBFCs/ UTI - 2.0% an energiser game 'The Perfect Square' which intuitively Major key sessions included finance business partnering, 8.3 Trusts - 1.7% helped the team to build a perspective on how to keep the basics intact, amidst the uncertain blindness of Bodies Corporate - 1.4% cut-throat and complex business environment. IEPF - 0.5% 8.3 Non-Resident Indians - 0.4% Others - 0.3%

34.6

TAX TRANSPARENCY Acting with integrity in the creation and execution of our tax strategy, society that arise from well-functioning responsibility for tax at the Board policies and practices are at the taxationrecognise systems. and value the benefits for levelChief andFinancial communicates Officer holds with the and core to our approach to tax, as is advises the Board on the tax affairs our commitment to transparency. Hero MotoCorp strives to ensure and risks of the Company with support that commercial transactions are in to governments at a country level, as compliance with the law. Tax incentives and professional corporate tax team weWe believedisclose this our is financial an important contributions way and exemptions are claimed to the includingfrom the Company’s consultants. highly qualified to demonstrate that it is possible to extent legitimate. The Company’s achieve an effective balance between a affairs are transformed in most Risk mitigation is carried out by taking company’s responsibilities to society, strong technical positions in accordance through the payment of taxes and its or regulation, as the case maybe, is with the applicable laws. Material tax obligations to its shareholders. tax-efficient ways and where the law risks or disputes are reported to the expert internal and external Audit Committee for its consideration. For any business, an increase in taxes professionalambiguous or advice conflicting, is sought appropriate before This review includes assessment of paid equates to a reduction in the taking a call on the same. probabilities of different outcomes, cash growth or in returns to shareholders. Hero MotoCorp’s effective tax Theprofit interests available of to the invest individual in future (32.45% in FY19 and 29.50% flow and reputational impact. pensioner, saver and shareholder could in FY18) is generally lower than LOCAL PROCUREMENT AND HIRING – SYNERGY AND SOCIETY India’s applicable Corporate tax We encourage local sourcing be it for manpower, components or materials. We support a large number of MSME enterprises with the interests of an individual rate of 34.94%. This is due to citizen.therefore However, be seen weto bebelieve in conflict that it various non-temporary deductions employment creation in proximity of our operations, while at the same time revitalising our intellectual capital by hiring the is strongly in shareholders’ interests including deduction for research and bestwhich talents employ available thousands globally. of persons locally. We have a fine balance of local and international employees to ensure that companies fully acknowledge development concessions and earnings their responsibilities to wider society, from investments which are subject to including the payment of all taxes due lower tax rates. under effective tax regimes. We also

24 25 SUSTAINABILITY STRATEGY Hero MotoCorp Ltd. Sustainability Report 2019-20

STAKEHOLDER ENGAGEMENT

Working jointly with partners for OUR STAKEHOLDERS holistic development

Employees

Local Customers At Hero MotoCorp, we consider all stakeholders as partners in communities long-term value creation. For Hero MotoCorp, engagement with stakeholders has always been of utmost importance, facilitating

business to a level where it is today. Stakeholders’ opinions and Media Value chain partners feedback is incorporated into our strategies while the concerns Our Stakeholders raised by them are worked upon to strengthen our mechanisms.

Regulatory and Shareholders statutory bodies On a continuous basis, our teams understand the mega trends that will engage with multitude of people, shape the future of mobility. HERO MOTOCORP DNA: who impacts or are impacted by our RESPONSIBLE ACTIONS business, to discuss matters most We use different mechanisms to THROUGH A 360 ̊ APPROACH important to them. engage with relevant stakeholders. These comprise, on the one hand, Academia Banks Hero MotoCorp relies on continuous proactive methods for initiating dialogue with its various stakeholders a dialogue with stakeholders. to have long-term insights to economic, Examples here include the stakeholder Investors environmental and societal matters. surveys, specialist conferences, and thematic workshops. On the By maintaining open lines of other hand, we deploy a monitoring communication with stakeholders, we ensure that our material issues developments and the associated ENGAGEMENT MEASURES WITH STAKEHOLDERS expectationsapproach that of helps the stakeholders. us identify specific effectively taken to address the issues. Examples of this approach include Respect for stakeholders Weare arewell consistently identified and participating the actions in are and inclusion of their Network and Capacity building programmes with experts through cross-industry networks and media interaction with workshops – internal participation in industry-specific and strategic insights various channels and platforms to study and perception analysis. stakeholders and external

Stakeholder Sustainability Memberships and policy advocacy – Dialogue and collaboration survey – online mailbox and offline Organisations and businesses develop and grow in a cohesive legal and regulatory eco-system. As the largest two-wheeler manufacturer in India, Hero MotoCorp helps government in shaping the policies. Hero MotoCorp provides Internal Initiatives and specialised information and knowledge to national and international bodies. committees and membership working group The major associations we engage with are the Confederation of Indian Industry (CII), PHD Chamber of Commerce, Society of Indian Automobile Manufacturers (SIAM) and Gurgaon Chamber of Commerce & Industries.

26 27 SUSTAINABILITY STRATEGY Hero MotoCorp Ltd. Sustainability Report 2019-20

HERO MOTOCORP’S AMBITIOUS TARGETS FOR SUSTAINABILITY 2020 (HATS 2020)

The baseline for environmental initiatives is FY11, unless specified We established organisational sustainability aspirations for 2020 otherwise. There are multiple indicators and targets which and made concerted efforts to achieve them. Our team consistently have been adopted by Hero MotoCorp and we envisage to keep monitors the progress of the HATS targets. strengthening our systems to track these indicators so that we can increase the public reporting on our HATS targets. These targets have been mapped to United Nation’s Sustainable Development

PILLAR TARGETS STATUS FY20 Goals (UN SDGs) as below:

Eco Responsible Product quality good health AND education efficiency value chain stewardship Well-BEING clean water 4 and sanitation Product LCAs to be 3 40% Audits for top 50% conducted for major suppliers under GPDP carbon neutrality categories by 2020 6 29.27% Achieved – 206 suppliers Completed for 100CC Page 34 Page 41 Page 46 60% incr tives achieved covered till FY20 HF Deluxe platform 30% increase in average hours spent per employee on volunteering activities 95% Safety assessment of Implementation of recyclability of models critical suppliers Hero ELV policy by 2020 climate e 40% carbon neutrality action Achieved 40 suppliers undergone ELV strategy is under gender Page 37 Page 41 Page 47 equality Inclusiv 95% recyclability safety assessment development Growth E of all models co- 13 10% share Material screening of women 5 y using IMDS among new hires IMDS strategy is under HATS 50% increase Pe development alue in training o p 2020 l hours per e n employee

chai onsible v p Audits for top 50% suppliers Product Res life below DECENT WORK and under GVDP water People Inclusive economic growth Stewardship growth Product LCAs to be conducted for all Safety assessment of major categories by 2020 all critical suppliers 14 8 Implementation of Hero ELV Policy by 2020 10% 60% Material screening women among using IMDS new hires of CSR initiative increase in beneficiaries sustainable cities Page 49 Achieved Page 65 Achieved and communities partnership for the goals

responsible 11 consumption AND 50% 30% PRODUCTION industry 17 increase in training increase in average hours spent per innovation and infrastructure hours per employee employee on volunteering activities 12 Page 57 Achieved Page 67 Achieved 9

28 29 SUSTAINABILITY STRATEGY Hero MotoCorp Ltd. Sustainability Report 2019-20

MATERIALITY ASSESSMENT PILLARS OF SUSTAINABILITY Focusing on issues A responsible that matter approach

Hero MotoCorp follows a rigorous process of materiality to identify the issues that matter most to the company as well as its stakeholders. Eco efficiency Reducing our impact on environment is important Hero MotoCorp believes that the true value of materiality is at the and we make efforts to improve our performance in water, energy, material consumption, waste strategic stage. generation and air emissions.

Our strategic planning process incorporates the economic, environmental, social, and governance material issues relevant executing our strategic objectives. The material issues have been arrived at through an extensive stakeholder engagement Responsible value chain processfor the long-term and business growth reviews and benefitby the seniorto the stakeholders.leadership. The material issues are taken into consideration while defining and We take our partners along in our sustainability journey. Suppliers and dealers are critical value Materiality matrix Environment Social Economic and Governance chain partners and we cooperate with them.

Skill development Health and safety High Emissions to air Human rights Business growth and Product stewardship Innovation is central to our work. Our products demonstrate quality and latest technology. Responsible profitabilityEnergy & GHG management supply chain

Input material availability Waste management Environment impact of Our people products People are our assets. We nurture them to be a and efficiency Customer privacy Product stewardship future-ready enterprise.

Fuel management Diverse workforce Responsible marketing and and transportation cutomer satisfaction Inclusive growth We care for the communities around Community engagement and development our business. Relevance to stakeholders to Relevance Talent recuitment and retention

Minimun wages

Employee benefits Low

Low Relevance to Hero MotoCorp High

30 31 ECO EFFICIENCY Hero MotoCorp Ltd. Sustainability Report 2019-20

ENVIRONMENTAL CONSCIOUSNESS Preserving the Eco natural capital

Efficiency At Hero MotoCorp, we continuously strive to protect the environment and its natural capital. Our ideology of minimising environmental impact and promoting resource efficiency makes our investment decisions strategic and aligned towards environment sustainability.

Maintaining sustainable operations and continually making improvements to our products and processes support us in

followingminimising sections our environmental through our footprint.environmental Under performance the sustainability data and pillar few eco-efficiency, selected case we studies. make efforts to improve our performance in water, energy, material consumption, waste generation and air emissions. The same is briefly explained in the

Energy and Greenhouse Gas (GHG)

Climate change and its associated risks have emerged as a key sustainability challenge. Hero MotoCorp continues to work on various energy conservation and emission reduction strategies.

THE CLIMATE CHANGE MITIGATION STRATEGY

Investing in renewable sourcing Meeting beyond compliance Internal carbon pricing of energy Hero MotoCorp is adhering to all Hero MotoCorp is adopting a Hero Motocorp constantly endeavours applicable legal protocols and mechanism of internal carbon to source clean and green energy. requirements and ensures the pricing to facilitate and promote With the long-term target of becoming investments on sustainable and 100% carbon neutral by 2030, Hero technologies, upgrading of legacy eco-friendly technologies. MotoCorp is consistently enhancing equipmentdeployment and of energy creating efficient synergy its renewable portfolio through solar between different manufacturing power plants. operations.

Design for environment in Sustainable infrastructure Afforestation strategy product strategy development Hero MotoCorp is strongly focused Hero Motocorp seeks to maximise All the new establishments are on expanding its green cover within its product performance and developed on sustainable platforms the four walls of the factories, in help reduce emissions. through its CSR initiative. make them more efficient and and are IGBC certified. offices and beyond the periphery

32 33 ECO EFFICIENCY Hero MotoCorp Ltd. Sustainability Report 2019-20

Manufacturing operations The Core Sustainability Team along Products usage We reduce our direct emissions with a team of Energy Managers and All our products are in compliance with Water Energy Auditors steer the energy and the environment laws and frameworks Manufacturing plants and other of our operations, increased usage climate change agenda across the present locally and globally. Water usage Units FY19 FY20 facilities require water to carry out their ofthrough renewable enhanced energy energy and offset efficiency organisation. Total water withdrawal KL 10,56,447 10,08,960 operations. Guided by our Environment mechanisms. Policy, we embarked on a mission to Water recycled or reused KL 6,94,697 5,76,049 moderate the water consumption at all % of total water withdrawal recycled % 66 57 ENERGY CONSUMPTION AND GHG EMISSIONS our plants and continuously attempt to or reused GHG emissions Consumption GHG emissions Consumption GHG emissions Fuel Type Scope FY19 (tCO2e) FY20 (tCO2e) Total water withdrawal includes groundwater and surface water sources. FY19 FY20 Ourimprove water our sustainability efficiencies. strategy for HSD (litre) Scope 1 41,33,072 10,910 24,59,134 6,961 future-readiness is to continue investing Propane (kg) Scope 1 5,59,091 1,678 1,41,670 448 in Sewage Treatment Plant (STP) and Natural gas (SCM) Scope 1 1,86,06,910 37,595 1,52,13,327 34,907 creating new Rain Water Harvesting Solar power (kWh) Scope 1 74,29,263 - 83,41,869 (RWH) structures at various locations to improve the ground water table. Grid power (kWh) Scope 2 11,44,41,794 93,842 11,10,15,029 91,032 We have also created various rainwater harvesting structures beyond the fence The emissions for FY20 is 21kg CO2 per vehicle. This has increased from last year on account of lower production volume of as part of our community initiatives. two-wheelers. For all our facilities, we have achieved zero discharge status. Harnessing solar energy We started our renewable journey from a 100 kWp solar plant at our Gurugram plant in 2010. The journey became more aggressive and Water positive facilities continued enhancement in the solar Our facilities in Neemrana, Rajasthan have jointly gone chemicals, acidic/ alkaline nature, plating waste, heavy power plants establishments enabled metals and waste oil that is generated out of processes. an increase in our renewable energy achieved ‘Water Positivity Index - 21.14 which effectively The waste water is either re-used in general activities portfolio. We today stand at a total meansthrough we water are giving footprint back assurance-cum-verification water to Mother Nature and or recycled back to processes with the help of reverse installed capacity of 7,700 kWp 21 times more than our actual consumption. The major osmosis process and multi effect evaporators, thereby across facilities. water conservation measures followed at Hero MotoCorp reducing the fresh water foot print. include large-scale rainwater harvesting projects that ensure water recovery and recycling and recharge of ground water. To prevent water pollution, we have 21X Water positive at the capable of treating waste water that contains degreasing Neemrana facility also invested in an effluent treatment plant which is

Energy conservation in environmental facilities Improvement: Safety & Comfort: Eliminated press with dewatering machine manual operation of unpacking Replaced filter and Sewage Treatment Plant (STP).at Effluent The Treatmentfunction of Plantboth the(ETP) of filter press to remove sludge machines is to separate sludge Otherand cleaning of filter cloths. • Saving of water for one KL/

Benefitsduring treatment of effluent. • Compressed air energy saved Energy saving: Electrical energy Day for cleaning filter cloth. for drying of sludge in press. saved 2,78,986 kWh/ year. • Easy to handle and storage. Cost Saving: Reduction in disposal cost by 4.4 lakh per year

34 35 ECO EFFICIENCY Hero MotoCorp Ltd. Sustainability Report 2019-20

Material The amount of recycled inputs used by us are provided in the table below. Material Recycled inputs used in FY19 (tonnes) Recycled inputs used in FY20 (tonnes) Our R&D and manufacturing teams work to enhance quality and performance of our vehicles while rationalising material consumption. Preference is given to recycled or recyclable inputs. Aluminium and Steel provide us the opportunity to use Aluminium 98,486 83,457 second-life materials in place of virgin materials for a few of our components. Steel 40,806 34,552

Material consumed FY20 FY19 Transitioning to 5,35,405 1,33,447 47,935 56,241 circular economy 6,54,949 1,72,123 37,949 51,011 from linear economy We have initiated using the Steel Aluminium Rubber Plastic principles of circular economy (tonnes) (tonnes) (tonnes) (tonnes) through reduce-reuse-recover initiatives. Our integrated approach to circularity addresses the potential risks associated with shortfalls of 20,630 14,308 10,601 15,115 raw material supply by minimising dependence on virgin materials. 25,119 17,467 12,907 19,400 Design for easy recovery is one such initiative which is maturing in Paint and thinners Acrylonitrile Butadiene Engine and shocker oil Non-ferrous metals our eco-system in products (KL) (KL) (tonnes) Styrene (ABS) and processes. (tonnes)

36 37 ECO EFFICIENCY Hero MotoCorp Ltd. Sustainability Report 2019-20

Waste Air emissions

We are committed to regularly improve our Waste Management initiatives at our facilities. All plants dispose waste in compliance In our manufacturing plants, the process vents and the usage of fossil fuel generates air emissions of SOx, NOx, and particulate with operating permits and hazardous waste authorisations. We engage with waste disposal facilities/waste recyclers/cement matter (PM). We monitor NOx, SOx air emissions and particulate matter to keep emissions below the permissible limits. Our facilities are equipped with appropriate emission control equipment to arrest emissions during operations. of recycling options have been explored and implemented across the organisation. companies after due validation. As per our strategic drive to divert hazardous wastes away from landfill and incineration, a number The details of air emissions from manufacturing plants is given in the following table: HAZARDOUS WASTE NON-HAZARDOUS WASTE Air emissions All our units have sewage-treatment plants, The non-hazardous waste comprises metal turnings and rejected metal or plastic components. The amount of all hazardous waste in compliance with local regulations. non-hazardous waste generated in two years is shown in the Theeffluent-treatment amount of hazardous plants andwaste recycling generated plants. in two We years handle is following table. 260 63 16 FY20 shown in the following table. 348 73 40 FY19 Hazardous waste Quantity (units) Quantity (units) Non-hazardous waste Quantity (units) Quantity (units) generated FY19 FY20 generated FY19 FY20 NOx load PM load SOx load (tonnes) (tonnes) (tonnes) ETP sludge (kg) 7,96,119 7,72,125 Al. scrap (tonnes) 3,683 3,773 Paint sludge (kg) 12,30,094 11,37,982 Steel scrap (tonnes) 4,711 4,704 Grinding sludge (kg) 2,58,933 2,36,648 Packing material (tonnes) 1,924 2,083 Phosphate sludge (kg) 47,308 41,416 The total waste generated from packaging material in OZONE DEPLETION AND VOLATILE ORGANIC COMPOUNDS (VOCs) Incineration ash (kg) 22,420 224 FY20 is 2,083 tonnes. Out of the same, 359 tonnes at Used oil (liters) 66,640 46,240 Neemrana site is measured on actual basis and the balance We are taking initiatives in reducing our ODS footprint at all our facilities. We are replacing our old air conditioners with air 1,724 tonnes at all remaining sites is tracked and recorded in conditioners which use R410 gas and do not harm the ozone layer. The ODS footprint of last two years has been shown in the ‘lots’ (with 1 lot equivalent to 4 tonnes). following table.

Ozone-Depleting Substance (ODS) footprint Zero waste to landfill FY19 FY20 ODS emitted by the organisation At Hero Motocorp we have adopted the zero waste In FY20, three of our plants in Dharuhera, Gurgaon (kg CFC-11 equiv.) (kg CFC-11 equiv.) R22 Freon gas 34 122 either diverted for co-processing in cement kiln as an R22 Mafron gas 32 447 alternateto landfill resource (ZWL) approach. or as direct All resourcehazardous for waste recyclers. is and Global Parts Centre in Neemrana achieved ZWL R134A Mafron gas - 510 All our non-hazardous waste is segregated at source and Certification for diversion rates more than 99% after managed as under: certification audit, whereas the manufacturing plant in Neemrana has already been certified for ZWL in FY19. • Transfer waste in segregated way by authorised waste visibility to an organisation's efforts to improve its collector environmentalZWL certification impacts provides within improved an organisation credibility as and a whole • Create energy and compost from organic waste. and towards our commitment to sustainability. • Recycle waste to useful resource.

Hazardous waste reduction Improvement: Installation of Cost Saving: Reduction disposal an evaporating machine for cost by 8.8 lakh per year. removing moisture content from ETP sludge to zero. It helps us to Other reduce 70% (by weight) of ETP Dry sludge is easy to handle sludge generation. and store with lesser space. Also energy saved during Benefits disposal in cement plants Waste Reduction: 70% reduction through co-processing as the of Haz waste (Moisture reduces sludge has zero moisture waste. from 70% to zero).

38 39 RESPONSIBLE VALUE CHAIN Hero MotoCorp Ltd. Sustainability Report 2019-20

VALUE CHAIN Partners in Responsible sustainable growth

SUSTAINABLE PROCUREMENT Synergy with our partners is a key element of our performance. Our focus on good partner relationships includes engaging Value Chain with them in various ways and platforms. To ensure a consistent and comprehensive approach across business units, we have articulated the sustainable procurement guidelines, Green Partner Development Programme (GPDP) and many more.

Green Partner Development Programme Green Partner Development Programme (GPDP) management, waste management, pollution prevention, substitution of hazardous chemicals, environmental and its suppliers, dealers to achieve our overall corporate compliances. sustainabilityencourages a collaborativegoal. The objectives effort between of GPDP Hero are: MotoCorp

• De-risking the supply chain, up-gradation by six pillars of GPDP and mapping of processes/equipment knowledge sharing and expanding the horizons of isSupply carried chain out partnersbased on are logical given analysis specific to training identify on the all environmental practices among the supply chain partners accordingly improvements projects are undertaken for • Collaborative approach to conserve and protect implementation.gaps or significant environmental and safety aspects and environment to meet our societal commitment • Better business sustainability and improved vision for Development Programme (GPDP) celebrated every year the challenges ahead Under its flagship programme Green Partner 20 supply-chain partners in phase X and enrolled 20 new The initiative is carried out through Environmental on World Environment Day, Hero MotoCorp certified Aspects Reduction Network (EARN) programmes supply-chain partners are now over 200. under the six pillars of energy management, water supply-chain partners for Phase XI. Total GPDP certified

Approach and performance in customer engagement

Dealers and distributors are our last Our overall quality policy provides the launched last year through a third party mile connectivity with our customers. guiding approach towards customer research agency. In addition, brand Our engagement with them positively service. It is important to understand track study continues on a continuous customers’ expectations and thus basis to gauge health of the product end consumers. It helps us understand an ongoing dialogue with them is brands as well as corporate brand. customerinfluences needs their engagementas well as effectively with the maintained through various initiatives. Acceptor-rejecter studies are carried communicate our viewpoint to It helps us make advances in the quality out on a need basis to complement the consumers. of products we develop. above studies.

Customer satisfaction is met through The Company continues to undertake amalgamation of our Customer studies to measure customer Relationship Management and Dealer satisfaction with sales process, service Management System (CRM – DMS). process and for the new products

40 41 RESPONSIBLE VALUE CHAIN Hero MotoCorp Ltd. Sustainability Report 2019-20

Another thematic campaign on Vijeta and GoodLife Carnival was Overall, it was a year of excitement, ‘World Environment Day’ focused on aimed at the dealership staff viz. pulsating campaigns and most Motocyclopedia rewarding a member for contributing GoodLife Executive (GLE/DSM/MCC) importantly, delivering value not to nature through the ‘Care about air’ and the objective was to provide them only to customers but also to other An online directory of all key parts, it is aimed at creating an engaging platform for information sharing with our programme by showing their ‘Pollution with an opportunity to earn reward and stakeholders be it dealer/network customers that shall help us to propel our parts business into a new orbit, literally and digitally. recognition for achieving their business GoodLife bonus points. milestone. Another key parameter was GoodLife journey continues… We had invited everyone to write story about various part groups - the history, evolution, use, relevance, impact and under Control’ certificate and availing to focus upon Customer engagement fraternity or our very own field team. role of the part along with all possible trivia that we would like to share with our customers who visit the site for An important key stakeholder is our drives at the dealerships. It resulted purchasing parts or simply to know the details of such parts. Dealer/Network fraternity for whom in over 288 customer engagement a reward and recognition campaign footprint pan India. was introduced to motivate them and also to bring in business opportunities in the form of referral sales through children we introduced the ‘Young GoodLife members. One such campaign Artist’To engage contest with that our resulted own field in team’s an was ‘Khushiyon Bhara Referral’ yielding indigenous Annual GoodLife Calendar to a healthy contribution to business referral sales. our Hero team members. fielding home grown young artists from

Hero going digital • After sales: Service reporting and revenue, status of In continuation of our digitisation journey, we introduced complaints, part purchase and inventory 'Hero myBusiness App'. This app provides insights on key business and performance indicators for our sales and • Receivables: Outstanding, payment due invoices, paid up after sales team and our channel partners. Key business stock details performance indicators can be mapped: • Hero Happiness Score customer interaction recording • Sales KPI's: Live retail, retail & stock, town market share, enquiry, myscore

GOODLIFE PROGRAMME It has been 19 years since the launch of Hero’s prestigious Customer centric campaign dominated the year resulting loyalty programme - Hero GoodLife. The programme has in reaching out to 3+ lakh unique GoodLife members who evolved over the decades and now is one of its kind in the engaged and experienced myriad offers through varied industry attracting lakhs of members enrolling annually. campaign for example ‘Vote for Nation’ campaign that was It is growing from strength to strength with over 3.9 crore not only topical but also well timed and focused upon Nation members associated with Hero GoodLife since inception. building with around 10,000 customers availing this offer in a very limited time period. engagement with our key stakeholders viz. customers and dealers/NetworkThe last financial year’sfraternity dominant and employees. focus area Keeping was meaningful this in this year. mind, we introduced several first-of-it-kind campaigns

42 43 SUSTAINABLE DESIGN Hero MotoCorp Ltd. Sustainability Report 2019-20

PRODUCT STRATEGY PRODUCT Design for environment

STEWARDSHIP Customer comfort, safety and reduction of the carbon footprint are the key strategic areas relevant to the Company’s product portfolio. Hero MotoCorp has been a pioneer in making fuel-efficient vehicles.

Through the design for environment approach, Hero MotoCorp is making serious efforts in making continuous technology improvements HeroHatch completes one year that lead to superior performance at competitive prices. The Company has also accelerated its anniversary, we can proudly say that, Hero MotoCorp is on the transition into BSVI compliant engines and is rightHeroHatch mission was to foundedcreate some in September path-breaking 2018 milestones and on its firstin the working towards emerging mobility solutions. coming future. The projects seeded under this regime have The Company’s product stewardship extends made great progress. Two more hatch teams were added in June, beyond product design and development stages into sales and service. in terms of results and learnings. HeroHatch also demonstrates the2019. ability Reflecting of the back,members it has of been the organisation a very fruitful to journey get out ofboth their PRODUCT INNOVATION comfort zone and do things that may seem impossible in normal Hero MotoCorp’s Centre of Innovation and circumstances. It also shows that our teams can work together at Technology and the Hero Tech Center, Germany an amazing speed. GmbH works on development of new vehicle concepts and future technologies.

44 45 SUSTAINABLE DESIGN Hero MotoCorp Ltd. Sustainability Report 2019-20

Digital launch of India's first BSVI motorcycle TENETS OF OUR ELECTRIC VEHICLE (EV) STRATEGY

Technology as a platform Hero MotoCorp launched country's first BSVI to differentiate motorcycle Splendor i-Smart on digital platform. Compelling, differentiated customer proposition

Leadership in The launch was the belly of the market viewed live on Hero MotoCorp's social media handles Ecosystem partnerships with ‘Frenemies’ (Facebook, Twitter, Instagram) at 1 pm, November 7, 2019. Exploring product and service Ather 450X offerings with in-house R&D initiatives, internal incubator and strategic • High-capacity 2.4kWh tie-ups, our foray into emerging Lithium-ion battery pack • IP67 water and current business model. mobility has significantly expanded the dust resistant In-house EV product approach • Fast charging up Our teams are exploring the to 80% at 1 km/min opportunity to expand into the business of installing charging stations at our customer touchpoints. The Company engineers at HTCG, Germany and CIT, India are developing an in-house electric product. Representation on international Internal incubator platforms – EICMA 2019 Under this umbrella, we are developing Product innovation The 77th edition of the Esposizione internazionale del innovative EV concepts through an Hero MotoCorp introduced the Quark 1 concept as a part of its ciclo, motociclo, accessori (EICMA 2019) in Milan, Italy, internal start-up – HeroHatch. This is HeroHatch Electric Modular Mobility project. The Quark 1 concept saw the launch of several motorcycles and scooters, apart an initiative with 11 youngsters chosen from two-wheeler accessories like apparel, helmets, from within our teams through an used as either a two-wheeler or a three-wheeler depending on the tyres and components in Milan, Italy. Hero MotoCorp exhaustive selection process. This team requirement.is the world’s Thefirst Quark class changing 1 is powered two-in-one by Hero vehicle, MotoCorp’s which M360 can be and showcased several products but what stood apart was the has developed a unique modular AMSEP (Advanced Modular Scalable Electric Powertrain) technology Xtreme 1.R concept at the EICMA 2019. mobility solution, which is being and comes equipped with an interchange mechanism with retractable examined for quality and commercial rear wheel. The concept vehicle also gets features like a fully digital The Xtreme 1.R is inspired by the precision of an arrow viability. and it boasts of an aggressive stance. The Xtreme 1.R of battery SOC, along with capability to be updated over the air (OTA) offers a sneak-peek into the next generation of the Xtreme Strategic associations updates.instrument A noteworthy cluster, customisable design user profiles, GPS, live monitoring brand. Other products on display included the XPulse Back in 2016, we invested in India’s element here is that the scooter 200T, XPulse 200 Hunk 200R, Hunk 200S, Ignitor 125 best two-wheeler EV start-up - Ather in Quark1 has a retractable and the Splendor iSmart. The company also showcased Energy. Ather, an Indian electric vehicle rear wheel that retracts its new range of scooters – Duet 125, Dash 125 and company was subsequently introduced when the vehicle is used as a Pleasure+. Three special signature editions of Hunk 200S, to the market and has a two-product three-wheeler. XPulse 200T and Dash 125 were also on display. suite – Ather 450 and Ather 450X. In association with the Company, The Quark 1 has been designed we have developed electric vehicle with an aim to reduce vehicle charging infrastructure as well. density on the Indian roads as a multi-utility solution.

46 47 PEOPLE Hero MotoCorp Ltd. Sustainability Report 2019-20

WORKFORCE Nurturing and re-skilling the People resource of tomorrow

Hero MotoCorp’s strength comes from its people. With a large and diverse production line, we rely on the vast pool of talent to keep our operations running. It is through this talent that we replace conventional thinking with alternative approaches.

We encourage our employees to performance evaluation and feedback challenge conventional thinking and the health, safety and overall wellbeing process. We cultivate a diverse embrace innovative mindset through ofcapabilities, our employees. we significantly prioritise workforce of highly talented individuals robust engagement mechanisms who are dedicated to integrity and and progressive HR policies. OUR WORKFORCE high-quality work. We also aim to offer equal opportunities to people of all As on March 31, 2020 nearly 4.2% of step, our processes are dedicated to working age group. The category and our permanent workforce was female nurture,While recruiting motivate, talent reward is the and first retain gender-wise details of the workforce and 96.7% was male. All our permanent them. Along with strengthening our are presented in the table below: employees are covered under

CATEGORY WISE WORKFORCE FY19 FY20 Number of employees 8,551 8,599 Employees hired on temporary/contractual/casual basis 22,992 21,091 Permanent women employees 279 364 Employee associations • Hero MotoCorp workers’ union, • Hero MotoCorp workers’ recognised by management Gurgaon plant union, Gurgaon plant • Hero MotoCorp workers’ union, • Hero MotoCorp workers’ Dharuhera plant union, Dharuhera plant Percentage of permanent employees who are members of this recognised employee association the association part of the association All confirmed workers are part of All confirmed workers are

8,599 Total number of employees

48 49 PEOPLE Hero MotoCorp Ltd. Sustainability Report 2019-20

During the reporting period, Hero MotoCorp recruited a total of 674 employees across management and permanent worker categories. The breakup across age groups and genders is shown in the table below. Diversity and inclusiveness

AGE- AND GENDER-WISE WORKFORCE Recruitment FY19 Age group Gender Total DIVERSE TEAM, ONE HERO <30 yrs. 30-50 yrs. > 50 yrs. Male Female Management 459 177 2 577 61 638 Permanent workers 54 167 3 224 0 224 1,449 9 60 22 862 Women employees Nationalities Specially-abled people Expats Recruitment FY20 Management 368 141 8 384 133 517 Permanent workers 28 126 3 157 0 157 674

The organisation is looking for a At Hero MotoCorp, we believe a diverse programmes to increase and retain employee turnover as the number of employees who leave the organisation voluntarily or due to dismissal, retirement, or diverse slate of candidates while hiring. and inclusive workplace makes us workforce heterogeneity within the deathWe assess in service. employee turnover across different demographics of employees to uncover the causes for the same. We define The term 'diversity' is a lot more than stronger. Engaging different thoughts organisation. While the focus stayed just a buzzword. Research across the and sharing insights broadly has on increasing diversity representation, TURNOVER OF EMPLOYEES world revealed that there is a strong helped make us the organisation we are our vision was crafted to ensure the Turnover FY19 Age group Gender Total correlation between the diversity today. Therefore, we are committed to ‘Inclusion’ so that the efforts could be initiatives and business performance creating a truly inclusive organisation sustained for long term and it becomes Breakup of personnel <30 yrs. 30-50 yrs. > 50 yrs. Male Female through innovative results. While there with a culture that values, respects and the culture in Hero MotoCorp rather Management 221 187 90 459 39 498 is no playbook for making every encourages diversity. Permanent workers 1 21 50 72 0 72 employee feel included, but we wanted to concentrate our efforts 570 continue to strive towards creating a In order to manage Diversity focus, simultaneouslythan flavour of the towards year. Hence,building we a Turnover FY20 sense of belonging for every employee we adopted an integrated approach strong supportive culture. The efforts Management 160 206 183 500 49 549 to become an inclusive ally through wherein we targeted recruitment taken are as follows under the Permanent workers 2 11 80 93 0 93 various engagement activities that initiatives, education and training, three pillars of D&I. 642 are aimed to foster Diversity and career development, and mentoring Inclusiveness. We believe in providing fair compensation to all our employees irrespective of their seniority, employment terms, gender, etc.

We pay well above the specified minimum wage for all our workforce. 674 100% Employees across Permanent employees management and permanent covered under performance worker categories recruited evaluation LEADERSHIP AND CULTURE AND MINDSET RECRUITMENT AND ADVISORY SUPPORT SELECTION SUMMARY OF EMPLOYEE RECRUITMENT AND TURNOVER LOCATION WISE AND EMPLOYEE CATEGORY WISE Employee hires Turnover • Women in Leadership • Gender sensitisation workshop • Acquiring diversity talent programme (WIL) S. No. Location Permanent Permanent Management Management • D&I talk • Supportive infrastructure workers workers • PoSH policy 1 Gurgaon plant 81 29 108 4 • • Sensitisation workshops for • interviewers 2 Dharuhera plant 36 106 104 83 • Gamification/OnlineSign language training quizzes 3 Neemrana plant 36 21 25 2 • MaternityNight shift benifits approval for • Campus out reach 4 Halol/Vadodara plant 26 0 28 0 development of women 5 CIT Jaipur 130 0 78 0 (B & C Shift) 6 Haridwar plant 26 0 28 4 • Restricted holidays 7 34 0 60 0 8 148 1 119 0 Corporate office TOTAL 517 157 550 93 D&I VISION: To make Hero MotoCorp a truly Other zonal offices 1,000 inclusive organisation with a culture that values, EMPLOYEE HIRE AND TURNOVER RATE Woman employees hired S. No. Total no of employees Employee hires Employee hire rate Employee turnover Employee turnover rate respects and encourages diversity. during the year 1 8,599 674 7.84% 643 7%

50 51 PEOPLE Hero MotoCorp Ltd. Sustainability Report 2019-20

AN EQUAL WORLD IS AN ENABLED WORLD As an organisation we believe that This year for the International Haridwar Gurgaon knowledge, experiences and skills are Women’s Day celebrations, the theme In a journey to further strengthen ourselves as an Gurgaon plant has further strengthened its women not dependent on any particular cast, was ‘Each4Equal’. A specially curated organisation and bring in more advantages of a diverse workforce, by recruiting more female staff from various creed, ethnicity or gender. If provided video featuring employees across a workforce at the workplace, the plant has taken several ITIs pan India and an equal opportunity of growth and with equal opportunity, a person can cross-section of teams and locations, initiatives to ensure the safety of women and encourage development were also provided to them. This is a achieve heights in their domain. was developed on this occasion their participation in an array of activities and events. where they shared their thoughts and personal experiences on product quality, good product delivery, innovative work significant leap towards gender diversity and inclusion on ‘Each4Equal’ concept. cultureAs a result, and tremendousbuilding of inclusive benefits mindsetin terms hasof increased been GPC,shop floorNeemrana at Gurgaon plant. experienced at the plant level. At our Neemrana plant and Global Parts Centre facility, under project Tejaswini, we progressed ahead and saw Halol our women colleagues taking charge at new areas of To support and nurture the ecosystem of women operations such as engine assembly line, paint shop, workforce, the plant has taken several initiatives in the form of: Chittoorweld shop and final inspection. • Appointing two female medical nurses, for ensuring The new manufacturing facility of Hero MotoCorp at proper health and hygiene of existing and future Chittoor, in the southern Indian state of Andhra Pradesh female employees. is a perfect epitome of gender diversity and inclusion. • Provision of transport facility for existing staff and This plant has 80% of women workforce working on team members (FTEs and staff)

• Creating a continuous management communication the shop floor. platform with existing female employee, in form of ‘Discussion with manufacturing head’. PROJECT TEJASWANI (WOMEN COLLEAGUES @ SHOPFLOOR) As an organisation with a strong history Hero MotoCorp’s journey for D&I The philosophy behind Project Tejaswini of market leading performance and started with its setting up of the was to build upon gender parity but also having a heavy manufacturing footprint, Diversity and Inclusion Agenda to work upon ‘changing mindsets’ and the agenda of Diversity & Inclusion for itself and took up the challenge making the workplace holistic and in of introducing ‘Women at Shop line with its vision for 2020. A bold step at Hero MotoCorp initially. Keeping in Floor’ through its Project Tejaswini. to bridge the gender gap and to become mind(D&I) thewas vision not identified for the year as a 2020 priority and an ‘Employer of Choice’ and a ‘Great Also, while the onset of Project Place to Work’! global brand dominance, the leadership Tejaswini seeded in 2015, it saw the identified roadmap for Hero’s its beginning in FY17 when Hero Till March 2020, we had around priority to create an organisation with MotoCorp introduced women at 652 aidentified diverse and and inclusive accorded workforce the highest that shop floor for the first time in its around all the locations, ably matching represents the microcosm of the society 32 years’ history. up to female their male employees counterparts on the andshop floor we live in. delivering in all walks of operations.

52 53 PEOPLE Hero MotoCorp Ltd. Sustainability Report 2019-20

TRAINING PROGRAMMES FOR ‘SPECIALLY-ABLED EMPLOYEES’ AT HERO MOTOCORP Talent recruitment and retention

As an organisation we have always At Hero MotoCorp, we believe in always strives to align its diversity to the best talent available in the been cognisant towards building nurturing a high-performance and and recruitment strategies. This is industry. We take pride in offering: a strong supportive culture for enabling work eco-system where important since diversity efforts • Superlative selection process specially-abled employees. We include open dialogue is encouraged, thereby operating in a silo will not achieve the experience – All our candidates are them into several motivational training allowing employees to realise their desired goal. In order to meet the dual offered a cashless travel experience programmes to ensure adequate focus full potential. We aim to recruit the demands of an increasingly diverse during the selection process where are given on their self-development. best talent from across the globe and talent pool and rapidly-changing work all interview related expenses for As an extended mechanism of enabling various strata of society, industries and landscape, we conducted diversity a candidate are pre-booked and the ecosystem, we conducted a couple educational institutes of repute, thereby interview drives across varied provided by the organisation in of sign language workshops for certain infusing the richness of intellect campuses. Our focus on diversity advance. teams in corporate where we had hired and experiential learning across our clearly achieved the desired results specially-abled interns in order to eco-system. and more: with the result being an • Hassle-free onboarding – We offer overcome the communication barrier all-women DET Batch of 50 employees. a caring welcome to all our new and enhance inclusiveness. Some of the notable highlights in the This batch joined the Hero family on joiners for a hassle-free onboarding recruitment sphere have been as below: August 5, 2019. experience. All outstation candidates are offered convenient, safe and WOMAN TALENT AT THE IMPROVING CANDIDATE reimbursement-free travel and FOREFRONT EXPERIENCE re-location options. Suitable care is taken to provide complete clarity In our endeavour to infuse gender The recruitment and selection process on re-location and travel expenses equality and aim to create a more is an opportunity to present our offered to all newcomers’ for their sustainable talent pipeline, HMCL organisation as a preferred employer dependents/family members. 50 Women recruited in the DET Batch

Sales and after sales Hero is on the journey to become a truly global entity in terms of size, customer reach and technology, which is not possible without having diverse talent, equal opportunity and inclusion. Our diversity agenda is to create a culture of respect and appreciating the Employee engagement uniqueness and differences in each person. This will This year was all about celebrating create an inclusive environment of belonging; where togetherness and spirit of oneness with Hero’s immediate and extended family. the ‘Diversity and Inclusion’ initiative of the Company, weideas have of allcovered are valued the entire and embraced. sales and after-salesIn the first functionphase of It started off with the Heroes of in Gender Sensitisation workshop. These were conducted Hero event in April 2019 aimed at encouraging talent among our various topics like why diversity is important, various employees and their children. The Hero them guidance in critical years of ecosystem, focus was laid on making all kindsall across of diversity our five andzones. awareness The sessions about touched the law upon of sexual Kids Day Out in June 2019, replete schooling and further education. the arrangements eco-friendly. harassment at workplace. We also gathered insights with fun activities like magic show, from various one-on-one discussions with some of our virtual reality based games, dance and Along with this, occasions like Furthermore, to promote the culture members of the leadership team. music, in the midst of the summer Independence Day, Diwali, Christmas, of wellbeing and healthy living, break gave the children of employees’ and New Year were celebrated the organisation encouraged and memories that they shall cherish enthusiastically. All festivities promoted sponsored employees’ participation in forever. Additionally, career counselling the spirit of One Hero. In our efforts to various marathons such as Airtel Half sessions were organised for employees’ build a greener and more sustainable Marathon and Pinkathon. children from class IX to XII to provide

54 55 PEOPLE Hero MotoCorp Ltd. Sustainability Report 2019-20

RESPECT FOR HUMAN RIGHTS SKILL DEVELOPMENT ensuring future ready talent. We do We advocate and encourage the Our employees are an integral part haveto bridge formal the ‘Coaching’ identified andgaps we and do invest highest standards of human ethics and of our organisation and we believe in ‘Development Centres’ across various etiquettes and respect the dignity of that investing in their development levels in the organisation. everyone associated with us. At Hero will provide us sustained growth MotoCorp, we do not tolerate any act over the long-term. We consistently Gurukul: Our in-house technical that violates human rights. We strictly invest in their training for managerial training school imparts state of condemn acts like discrimination, capabilities, skill upgradations and the art technical training to all our forced and compulsory labour, and outbound trainings to overall increase operators and staff. From basic child labour. the competence and inculcate a automobile knowledge training to spirit of team bonding. Through our complex transformation trainings Our approach on human rights extends customised development programmes Gurukul is our one-stop shop for all to those who we partner with, such as we ensure that all employees are up to technical trainings. For sharpening suppliers and contractors. human rights date with the latest skills required to our managerial skills we have bespoke issues are a part of the Sustainable thrive in the industry today. We believe programmes such as NexGen leaders Procurement Guidelines. Besides this, in our home grown talent and promote co-created with the leading consulting through various awareness sessions, internal growth through succession organisations. For our budding leaders Contractual sports meet 2019 several stakeholders are sensitised planning rather than hiring people on we have foundation courses such as Contractual sports meet was organised in Gurgaon on the subject which then helps to managerial positions. Hero MBA we have tie-ups with BML promote adherence on human rights Munjal University and 2019! The event was a huge engagement platform aspects. In order to create a workplace We invest in our employees in MS University, Baroda. forplant this for spectrum the first timeof workforce on December including 15 and workmen 22, that is fair, transparent and safe, we also multifaceted ways, apart from have in place a policy for Prevention tiered development approach, we diverse groups (canteen boys, housekeeping and female of Sexual Harassment at workplace continuously work on strengthening apprentices).and apprentices. The Zealous meet was participation very engaging was and seen the from (PoSH), under the provisions of the capabilities of our employees contractual workforce has been positively motivated with Prevention of Sexual Harassment with the help of training programmes, this initiative and has desired that this event be a Act, 2013. on-the-job learning and special projects yearly recurrence.

CALCULATION OF AVERAGE TRAINING MANHOURS DIGITAL INTERVENTIONS S. No. Total employees Total training hours Average training hours 1 8,599 4,02,942.64 46.86 Automation and analytics – Leveraging technology in HR Leverage digital technology in HR friendly UI with similar processes integration and digital documents / We are further strengthening the training hours recording mechanism with focus on gender and employee category. through focused initiatives have and thus enhancing overall employee led to improved productivity, work experience. environment and effectively managing Ourcertificates work force for all analytics, the employee employee needs. employees’ aspiration. We have initiated the journey to go communication / engagement tools, paperless by automating multiple and other digital platforms is enabling We have transitioned our employee processes covering the entire life cycle the management in faster decision management data to SAP Successfactor, of employees like automating making and gauging the impact and thus, moving to an integrated cloud transactional processes, seamless data instantly. platform. The system provides a user

EMPLOYEE BENEFITS Employee centric HR policies, practices and procedures In the journey towards becoming the HR digitalisation projects have been global employer of choice and a great hence, introduced / revised related an enabler in automating most of place to work, we periodically review policiesdevelopment, like working flexi benefits hours, and Hero MBA the employee related processes and our policies and procedures to ensure programme, part-time employment and procedures. Change management and company car scheme to name a few. targeted communication have helped our employees. These strategic changes are intended that it offers meaningful benefits to to cater to and address the diverse in employee experience through these In FY20, we further focused on expectations of baby boomers, Gen X, variedus in bringing interventions significant and itimprovement has brought inclusivity, work life balance, career value proposition for the employee and employer both. Millennial and Gen Z.

56 57 PEOPLE Hero MotoCorp Ltd. Sustainability Report 2019-20

Gurukul at Dharuhera NexGen leaders The Gurukul at Dharuhera was established in 2007, Currently, Hero is conducting following one-year courses Under our tiered leadership umbrella a new offering with an objective to reward creativity, stimulate Level - 3 and Level - 4 in the operational areas of the was created for our budding Next Generation (NexGen) innovation and contribute to economic development Organisation: leaders who have recently been handed a role of while safeguarding the public interest. Gurukul is a managing teams. This programme comprises a 75-day 1. Welding central technical training academy for HMCL Staff leadership journey with multiple check-in points and for skilling, reskilling and upskilling on the product , 2. CNC operator/ Machining technician class room sessions. This programme will build a strong process, equipment and system to the human resource to leadership foundation for our future leaders. Around 3. Automobile service technician (2&3 wheeler) make them job ready. The training approach is T shape widening and deepening the skills. Currently Gurukul has 4. Automobile painting technician As part of the curriculum, all managers have selected the following verticals projects100 managers to work were on toidentified implement and the were learnings covered from this theyear. programme. The outline of the top-level programme is: • Staff training (new and existing staff of all locations) 5. Vehicle assembly fitter/technician • Understanding and developing different personalities • Operators training (for HM1D location) 7. Maintenance technician electrical 6. Auto component assembly fitter • How to differentiate and reward performance • Internal trainer development ( all plant locations) • Coaching and feedback • Support other location Some of the trainees also participated in the regional, state-level and zonal level skill competition organised • by NSDC, and won multiple accolades. After that they A unique story of our Gurukul students' training (dual • Understand your leadership style partnered with SVSU (Sri Viswakarma Skill University) to Managing conflict mode of education and training): roll out long term (3 Years B.Voc – Manufacturing & B.Voc Mechatronics) and short term courses (1 year) as per Hero Gurukul signed an MOU with Automotive ASDC pattern. In all these courses the students earn while Skill Development Council (ASDC) which includes learning. They learn theory and concepts in two hours WOMEN IN LEADERSHIP 20 various types of courses governed by the National every day in the Gurukul labs as well as practical skills on Each participant was also assigned Skills Development Corporation (NSDC) under the Women’s day at Hero MotoCorp marked the real machines inside the plant during eight hours on a coach during the programme to Ministry of Skills Development, Government of India. the successful completion of another job training. For both Gurukul learning and OJT they get A pilot batch of 50 trainees underwent admission and batch of the Women in Leadership monthly stipend approx. ` 10,000 per month. That way process that aims to enhance the (WIL) programme. The WIL was they learn and earn. So far 500+ students passed out self-awarenessstrengthen the reflectiveof individuals. learning under the ASDC courses since 2016 onward. launched in association with BML and all of them have jobs. A batch of women students are The programme involved three working got certified. Subsequently mass roll outs have happened Munjal University with an aim to build being trained on trial. After the training, the students will days of participants each month the leadership pipeline of women become expert vehicle assembly technicians. Some of them starting from the month of June 2019 executives in the organisation. This nine have won the national welding skill competition as well. onwards. The assessments were based months long programme has been on their participation in activities, specially designed for women in mid quizzes and evaluation by the faculty and junior level of management so on the assignments given during that they can realise their leadership 500+ ₹ 10,000 each module. contribution to programme the Students graduated Monthly project stipend organisation.potential and make significant

58 59 PEOPLE Hero MotoCorp Ltd. Sustainability Report 2019-20

EXCELLERATOR CLUB of our organisation. This programme experiential session which included a PROGRAMME offers differentiated and customised three hour team bonding programme. learning opportunities to all employees These Excelleretor club members got As one of the key objectives of HR is Hero campus challenge, season 5 rated as ‘EXCELLENT’ in the year to differentiate and develop, an elite Brands are indeed a key and perhaps the most important record-breaking registrations from 32,152 students gone by. This year multiple offerings the experiential learning session followed club by the name of Excellerator Club strategic asset of the organisation. Given the relentless (10,717 teams) from both B-Schools and Engineering were designed to run throughout the byfelicitated interaction by badges with leadership and certificates team. in was created four years ago serving as a drive towards globalisation, we are focused on developing colleges, when it was launched in October 2019. All the year along with a full day in-person platform to recognise top rated talent branding strategies that help us connect with customers in teams went through multiple assessment rounds over the a variety of cultures and contexts for consumer experience. course of season-5. The competition started with the On the same token, building employer branding around employee experience right from the awareness of the domain knowledge of the teams, followed by an idea organisation till the entire employment lifecycle is a part of elevatorfirst-round pitch of onlineround assessment,where the selected to check 1,092 the basicteams had talent sourcing strategy. To build the corporate brand, we to present the details of their solutions. The students then have an ambidextrous approach towards consumer and proceeded to the virtual presentation round where 80 employer branding. shortlisted teams presented their detailed idea to the jury.

Digital engagement is considered the key to brand success these days. Success and extent of engagement periodIn the end, with only the 10Senior teams Leadership qualified Teamfor the of grand Hero finale.MotoCorp, are attributed to the creativity of content and context All the finalists went through an extensive mentorship thereof. We at Hero MotoCorp embark on new paths bringing sustainability in the shared mobility space and the and technological armamentarium for the success of to prepare them for the finale. All ideas focused on our employer branding. These things don’t just happen when everything is left to run its course. Rather, there is a HCCoptimum season use 5 ofconcluded artificial withintelligence Indian Institutein current of operations. distinct need for us to lead in this arena. Every intervention Technology (IIT), Chennai and Xavier School of in employer branding is embedded in an umwelt, and only Management (XLRI), Jamshedpur emerging victorious by combining it with a proper diagnosis of the situation in the Engineering and B-school categories respectively. at hand, controlled by human feelings and qualities for a Both the winning teams received a prize of ` 2 lakh while common endeavour. the two runners-up teams received a prize of ` 1 lakh

In line with our talent acquisition strategy, we had initiated offered pre-placement interviews at Hero MotoCorp. Hero Campus Challenge (HCC) season 5. It received Theeach. top All ideas 30 individual are being finalists evaluated of HCC to further season scale 5 were up.

Hero sales academy A three-day residential programme was organised at • Digital and social media IIM Bangalore for dealer owners. The key topics of the • Financial management in dealer environment programme were: The programme was attended by 42 dealers from all over • Macro economics the country in two batches. • Sales and marketing • People skills in dealer environment 42 2 • Customer centricity Dealers from all over Batches managed • Communication skills with focus on listening skills the country attended so far

60 61 PEOPLE Hero MotoCorp Ltd. Sustainability Report 2019-20

SAFE WORKFORCE HEALTH AND SAFETY TRAININGS EMPLOYEE WELLBEING A commitment to safety is an integral part of Hero MotoCorp. In addition, we’re focused on creating a safe and healthy working Some of the health and safety trainings Wellness at the workplace has been environment in all our manufacturing plants and to further strengthen our efforts, we have established safety management systems which are organised at our facilities to another important cornerstone of our to help prevent workplace accidents. Our goal is to achieve zero accidents. We follow both a reactive and proactive approach. engage employees and create positive journey. Hero MotoCorp continues to attitude towards health and safety are: strengthen its wellness initiatives every year and aims at creating working Reactive approach • IMS awareness environment which is healthy and Analysis is performed for reported incidents to identify the • General safety - construction site motivating for its employees. We focus reasons the incident and suggest mitigation/ avoidance on both physical and mental health of based on the investigation. • HIRA; aspect training our employees and encourage them to • Behavioural safety participate in various competitions and Proactive approach sports to keep them rejuvenated Under the proactive approach, several initiatives of risk • Legal compliance training and energetic. assessment, safety tagging, safety audit, safety kaizens, safety • Chemical handling trainings, awareness creation and emergency preparedness are undertaken. • Electrical safety • Fire prevention and protection • General safety awareness

SAFETY PERFORMANCE Safety continues to be of utmost priority at Hero MotoCorp. The substantial increase in near misses and hazard reports also indicate the increased safety awareness in the organisation. All our sites have safety committees with equal representation from employees and workers. The table below provides the safety related data for the last two years. Hero wellness Hero launched the health and wellness portal for our employees for both web and mobile app versions. The portal contains many features like self-health assessment, health tools/calculators, medical encyclopedia, personalised health tips, health bulletins and more. Employees can store and compare their own and their family’s periodic health check-up records and set medication reminders. There is also a market place offering many health related special Near misses/ Non-reportable Reportable discounted services. hazard reports injuries injuries An occupational health management suite of this portal will enable digital management of all major activities of our occupational health and wellness centres located at manufacturing plants. Going forward, we will add access to FY20 11,576 120 0 information on our medical insurance policy, employee claims history, insurance coverage, sum assured status, track 9,691 131 1 FY19 claims status, online cashless authorisations to hospital and online claim submissions.

VERIFICATION OF INJURY REPORTED SITE-WISE S. No. Category Unit Dharuhera Gurgaon Haridwar Neemrana Halol Jaipur Total 1 Near misses/hazard report No. of persons 756 990 1,209 3,573 4,724 324 11,576 2 Non-reportable injuries No. of persons 16 6 15 48 13 22 120 (contractual)

Safety Gym

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SOCIAL COMMITMENT Strengthening relationships Inclusive and community

Growth At Hero MotoCorp, we realise that as a large business entity we have a critical role to play in the achievement of the Sustainable Development Goals (SDGs). This can be achieved through sustainable business practices as well as focused investments for community.

Community initiatives have matured over the years supporting communities in forging their future. CSR interventions are VISION: To have a greener, deployed by professionals with diverse skills interacting safer and equitable world. directly with the community, partnered by organisations of national and global repute. Hero MotoCorp consistently commit resources to bold and innovative projects designed at scale. This approach is the spine of our strong community relationships with mutual trust and respect. Through our ‘We

Care’ initiative, which is our CSR umbrella, we are running five flagship programmes successfully. on various CSR interventions. All our sites conduct CSR programmesWe invested a and total all of CSR ₹ 131.22 programmes crore in undergo the reporting a third period party impact assessment on a need basis. The break-up of our CSR

beneficiaries of our key programmes are given below:

Initiatives 1,53,102 48,046 7,16,320 6,56,407 4,15,149 21,77,000 Ride Safe India Shiksha Happy Earth (tree plantations) 58,33,114 88.6 Mn BENEFICIARIES IN FY20 61,62,840 238.9 Mn TOTAL BENEFICIARIES TILL FY20 Arogya and Community Be Safe Be Aware Development (views on all media)

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ADDRESSING ENVIRONMENTAL DEGRADATION Water conservation Towards a greener world To meet the requirement of our future Multiple projects are being undertaken Apart from this, project Gurujal We at Hero MotoCorp believe that generations, we need to conserve, across states especially in villages for focuses on addressing the issues of the greatest threats the world is Green Drive 5.0 – yet another feather in our cap protect and restore our natural water conserving the rain water by cleaning water conservation efforts through facing today are from environmental bodies, which are important sources and rejuvenating ponds. In FY20, awareness sessions to the community degradation and climate change. We – began in Bengaluru with planting of over one lakh saplings at Bangalore for recharging our groundwater. we managed to channelise over in Gurugram district of Haryana. have shouldered the responsibility of University.The Green DriveSchool 5.0 and – thecollege mass students plantation and drive hundreds in the of fifth locals consecutive joined many year Our natural water bodies are being 31.8 million litres of water in the More than 2 lakh people made aware combating these threats through our of our employees to make the drive a great success. continuously depleted due to villages of Haryana. of water conservation practices Happy Earth initiative. over-exploitation. Besides this, we throughout the year. need to make community aware on techniques and practices for 2+ lakh saving water. People made aware of water conservation practices

OUR EFFORTS Initiatives Our action and impact in FY20 Our action and impact till FY20 Tree plantation 7,16,320 21,77,000 Water storage capacity enhancement 318.25 crore litres 394.7 crore litres Solar street light installation 6,335 in 79 villages 19,932 in 237 gram panchayat LED bulbs installation - 1,08,308 in 332 villages Toilets built 272 in 24 government schools 1,483 in 170 government schools

Solar streetlights in Jaipur villages Meeting the need of the gram panchayats in the village clusters of Jaipur, a total of hundred solar streetlights have been installed. The development is in continuation of our larger vision to have alternative and eco-friendly energy sources at the grassroots as also to develop necessary resources for the communities at the hinterland.

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SAFE RIDING TRAININGS a platform for constant engagement bring about a behavioural change that Towards a safer world with children to sensitise them about would ultimately make people realise Error on the driver's part is one of road safety. The idea being to create a that road safety is their collective the major causes of road accidents responsibility and together we could sources of such events are lack of awareness or carelessness of the individuals driving the and it can only be prevented through 1,500 peers to be conscious and responsible bring down the mortality and accident vehicle.Every year To addressmore than this 1.5 issue, lakh we traffic have collision-related launched the Ride deaths Safe occur India ininitiative. India. The Under primary the driving training. We manage nine road Schools reached during citizens.band of influencers Our mobile who safety inspire van which their rates in our country. safety parks across the country that the year with its focused communication safety awareness campaigns, and sensitise school children on road safety. Aimed at improving undertake two-wheeler riding training paraphernalia and dedicated team This year around 1 lakh people thegamut safety of Ride all who Safe commute India initiative, on Indian we roads,establish this and initiative run traffic has threetraining main parks, components. organise road for school and college students as well supports road safety awareness pledged to ‘Be a Road Hero’ for being as the general public. More than activities in schools and colleges. responsible drivers and be good these parks till date including AWARENESS AND BEHAVIOURAL 1,53,1026.5 lakh people people benefitted in FY20. through Sadak Suraksha, Jeevan Raksha CHANGE Wesamaritans continue by to following run multiple traffic awareness rules. campaigns with innovative and Themed Sadak Suraksha, Jeevan Raksha ROAD SAFETY COMMUNITIES Project ‘Be a Road Hero’ is aimed at impactful content on road safety with Hero team. More than 100 women riders rode across the town wearing safety gear and carrying placards to encouraging people to take pride in In the last few years, Team Ride Safe through both mainstream mediums and spread the message of riding safe on the roads., the rallyEach was woman flagged cop off also by received special commissioner a safety helmet, of apolice, symbolic Delhi gesture along being safe drivers and good samaritans India has established road safety on-ground activations. from our side to propagate the cause. as well as to motivate and encourage clubs in over 1,150 schools, creating others. The fundamental objective is to

100+ Actions and initiatives IMPACT IN FY20 IMPACT TILL FY20 Women riders participated 1,53,102 1 99,864 88.6 Mn 6,54,407 9 1,27,464 238.9 Mn Safe riding participants Road safety training park Pledges during ‘Be a Road TV, print and social media establishment Hero’ campaign views of road safety and awareness campaign

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Towards an equitable world: Women empowerment

A society is truly empowered when EK PAHAL More than 2,400 girls have already the women of that society are free to been trained on two wheeler riding This project is focused on training express themselves. skills this year. Some of the girls who women to ride two-wheelers safely learned to ride in initial batches have in the rural hinterland of the country, To create an inclusive society we graduated to become instructors at where gender disparity is still are working on various initiatives the training facilities and are earning prevalent. The idea is to make them decent remuneration as well. independent vis-à-vis mobility, which develop skills, create livelihood supports them in going for work and opportunitiesto promote gender and ensure specific wellbeing causes, doing many things on their own that by providing access to primary health support in creating an equitable care services. society for all.

EMPOWER WOMEN COPS – PROJECT SAKHI The idea is to empower women cops motorcycles to women police by providing them two-wheelers in order to increase their independent motorcycles given to women cops in mobility. Women cops are generally 11officials. states Till and date, one 2,939union scootersterritory. and dependent on their male counterparts with vehicles if they have to reach The major outcomes are that incident/accident spots or when women cops are now independently responding to distress calls. During the responding to more distress calls from year, we gave 1,978 scooters and women and keeping their promise of swift action and safety.

EMPLOYABILITY AND LIVELIHOODS FOR WOMEN AND GIRLS ENTREPRENEURSHIP DEVELOPMENT PROGRAMME To encourage gender equality and FOR WOMEN inclusiveness in society for sustainable skilling women to become employable development, multiple projects are whoSpecific can programmes earn their own are livelihood focused in and The programme is focused on enhancing running that provides livelihood and support their families. The short-term capacities and capabilities of women employability skills to women, youth courses include tailoring, beautician, for earning their own livelihood and and specially abled individuals. The hospitality, digital literacy and so on support their families. This programme and include important lessons on has helped 3,582 women from have empowered them in taking their self-motivation, personal grooming and 7 districts of Haryana in starting their beneficiaries are learning skills that growth. This FY, more than 2,500 girls own business. The same entrepreneurial independent. and women have undergone such spirit has been seen in 32 SHG groups own decisions and becoming financially training programmes. of women of Halol, Gujarat who are engaged in eight different livelihood Actions and initiatives activities, making them a contributing member of the family. 12,996 3 35,076 15 IMPACT IN FY20 Skill development of girls, Women two-wheeler ride women and youth and centre establishment IMPACT TILL FY20 their placement

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CENTRE OF EXCELLENCE – SKILLS FOR Towards an equitable world: Empowering through education AUTOMOBILE INDUSTRY Since inception, we have been playing • Building infrastructure for • Enhancing the academic In keeping with our commitment to create equitable employment a key role in strengthening the base of future: An entire school building performance: As soft interventions, opportunities for women by promoting their skill sets, we have been education amongst children, promoting is being renovated through various teams of professionals constantly running the Centre of Excellence for Women at various Industrial knowledge sharing within and outside innovative methods, to foster engage with schools to provide career Training Institute (ITI). The Centre helps build key skill-set amongst the industry, and skilling the youth of creativity and give an enhanced guidance and conduct motivational women, thereby enhancing employment opportunities for them in the country. With our ‘Educate to Empower’ learning experience to children. workshops and seminars. Our automobile industry. Industrial training is being imparted to women in programme, we continually strive to Entire community, relevant partner organisations also conduct fully functional technician training labs set up under this association. It tackle deep-seated issues within India’s stakeholders-including school staff remedial classes for students who also provides two-wheeler riding training facility for women, with the education system holistically. and children are taking active part in cannot cope with the demands of the aim of empowering them through personal mobility. development of their school. Besides curriculum. Through our remedial PROJECT SHIKSHA this, Anganwadi infrastructure are education centres, we ensure that We have successfully trained more than 600 candidates to build their also being upgraded. girls do not drop out of schools due careers in the automobile industry. The programme is focused on building to community pressure and other strong fundamentals amongst children • Strengthening the base of socioeconomic challenges that they studying in government schools. This is science: To develop curiosity for Highlights face on an everyday basis. being executed through developing science in children and develop Initiative Our action and impact in FY20 Our action and impact till FY20 the school infrastructure, building a fundamental understanding to make • Hero Talent Search programme: Educational Infrastructure and ecosystem development 8 government schools supported 216 government school supported strong foundation on science, providing them concise, we are running mobile Hero Talent Search is a programme in schools remedial education support and giving science labs, science centre and that gives coaching support to talented them understanding about various labs on bike, which carry hands-on children of government schools, who 48,046 beneficiaries 4,15,149 beneficiaries career opportunities, eventually models covering a wide range of due to their socio economic background making them knowledgeable citizens topics in physics, chemistry, and get limited opportunities. Eventually Towards an equitable world: Building hope and serving humanity of tomorrow. biology to students of government they are left behind in competitive schools. In total, four mobile science exams and are devoid of the chance We are committed to creating a KHELO HERO done by creating sports infrastructure Cumulatively we are supporting vans, science centre and eight labs on to do well in their life. Through, this meaningful, lasting difference in the facilities in schools, promote sports The project is focused on development 216 government schools and bike are making science accessible to programme 500+ students are being lives of the people, communities and all culture through regular support of of grassroot sporting culture among 4,15,149 students. more than twelve thousand students. provided remedial education support other stakeholders. We are working on talented sportspersons. youth in the country. Starting from the for quality education and higher grades development of sports infrastructure in class 10th. enriching the lives of people by making More than 560 athletes supported to in the rural hinterland to supporting themseveral self-reliant projects which and supporting are significantly in the nurture their talent this year. On an the professional players training creation of a sustainable society. overall basis, 2,535 athletes have been and participation at highest-level supported till date. international competitions. These are SPECIAL FOCUS FOR SPECIALLY-ABLED At Hero MotoCorp we believe in equal opportunity and inclusion, where 8 everyone has the right to access basic health care and education, irrespective of Government school disability of any nature. With this belief supported during the year we are supporting people of all ages with disabilities by providing them with special aids. This support has helped 48,046 them in living a functionally productive To give them an opportunity, we are Beneficiaries life. This fiscal, more than 2,672 disabled making special efforts in skilling 2,672+ specially-abled individuals in trades individuals benefitted through surgery, Disabled individuals benefitted that ensure better opportunities for SKILLSartificial limbsFOR andSPECIALLY-ABLED crutches. through surgery, artificial limbs and them. In the last few years, hundreds crutches this year Specially-abled people possess certain of individuals with various physical talent which is unique to them and challenges including visually impaired, helps to do certain task which is of hearing and speech impairment and utmost quality, even better then abled other such disabilities have been skilled. 600+ bodied individuals. They only require a Specially-abled people trained platform to learn relevant skills which More than 600 specially-abled trained to become professionals and are are in tune with industry requirement to become professionals and are employed and helps them to be part of the gainfully employed. mainstream economy.

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Healthcare

Our healthcare projects provide easy 2,500 children. Adolescence education Khelo Hero: Khelega India, Khilega India access to basic healthcare facilities for for girls and yoga for a healthy body 12,500+ Under the Khelo Hero initiative, we support and nurture sporting talent at the grassroots. One of the major initiatives in communities residing in remote areas and mind are also a part of this project. Served across our areas of operation this regard was the consistent aid to Khel Mahakumbh, Uttarakhand. During the third Khel Mahakumbh, children from and ensure that children studying 95 blocks participated in a 100-meter sprint category and the top 18 athletes (9 girls and 9 boys) were felicitated with in government schools get access to VILLAGE DEVELOPMENT – HERO scooters to reach their institutes through tough terrain. preventive healthcare facilities. ADARSH GAON Rural development is key for the Four mobile medical vans have been economic growth of the country and for deployed in Delhi, Dharuhera in sustainable development, it is pertinent Haryana, Neemrana in Rajasthan and in rural locations which can make around one lakh people by providing ourthat countrysignificant the investments next economic are power made medicalHalol in Gujaratassistance, and basic are benefitting treatment as house in the world. 2,654+ well as medication. Dry ration kits distributed in Underdeveloped villages are leading Rajasthan, Maharashtra and Kerala Another initiative focuses on eye care to mass migration of population to through mobile eye check-up van in cities in search of better employment Delhi and a satellite vision centre opportunities, access to basic with support from AIIMS, Delhi at healthcare services, better schools and village Malpura near our Dharuhera proper roads. unit. During this FY, 19,260 people We have developed a project ‘Hero Adarsh Gaon’ to boost sustainable Additionally,benefitted from preventive the same. health checkup development capabilities in villagers. camps were organised which benefitted

Women’s day with Halol community

region came together to celebrate Women's Day. It was Over 600 women from all our beneficiary villages in Halol of them, until a few years ago, had not ventured out of theira first-of-its-kind villages. However, celebration within for a couplethese women of years as of many our interventions – especially the formation of self-help groups

– women from these villages have become financially independent which has boosted their confidence.

Highlights Initiatives Action and impact in FY20 Action and impact till FY20 Supporting sports through sports facilities and trainings Aid to the specially-abled 561 beneficiaries 2,535 beneficiaries Community development including free medical treatment 2,672 beneficiaries 6,968 beneficiaries 58,33,114 beneficiaries 61,62,840 beneficiaries

74 75 INCLUSIVE GROWTH Hero MotoCorp Ltd. Sustainability Report 2019-20

RESPONSE TO COVID-19 Proactive response to a global crisis

This is the time when organisations and nations would be called upon to ‘choose between what is easy and what is right’. Outbreak of a global pandemic, like climate change, is a wake-up call. It requires a serious rethink of the way we shape our economic systems and lifestyles. With the above inspiration, Hero MotoCorp has initiated a series of steps in its premises and for its associates as part of the larger strategy to combat the Coronavirus impact.

As a responsible and caring corporate As a proactive precautionary measure, employees coming to the plants and FIRST RESPONDER VEHICLE to the authorities and people in the in Haryana; Neemrana in Rajasthan; citizen, the health of employees and also in keeping with the objective another app called ‘HOPE’ – Hero FOR FIRST AID underprivileged section of the society. Haridwar in Uttarakhand, Halol in and their families has always been of business continuity, we made the Operation in Pandemic Elimination — The sanitisers were being produced Gujarat and Chittoor in Andhra Pradesh We are in the process of donating Hero MotoCorp’s top priority. provision for our employees to work from consisting of detailed guidelines under the guidelines of the Indian and the Company’s R&D facility – the We are deeply mindful of the concerns home every alternate day. The Company and protocols. Council of Medical Research (ICMR). Centre of Innovation and Technology government authorities across India to around COVID-19 and immediately shut has discontinued all non-essential travel 60 first responder vehicles to (CIT) in Jaipur and were distributed down and halted our operations across BUILDING SAFER WORKPLACES under the direct supervision of the local facilities locally and globally. March — be it domestic or international, police departments and government Thesehelp them unique fight and the utilitarian Coronavirus vehicles crisis. for our employees since the first week of authorities in association with our ChatBot has also been launched to will be useful for reaching out to MAINTAINING BUSINESS and checkout have also been stopped NGO partners. addressAn Artificial queries Intelligence from employees (AI)-enabled on patients and the needy in rural and CONTINUITY atofficial all locations. or personal. All physical Biometric meetings/ check-in the various aspects of the COVID-19, in remote areas and in comfortably gatherings have been stopped and all Besides, we also mobilised teams Hero MotoCorp has established order to prevent the spread of any false moving them to the nearest hospitals. employees and visitors are screened across its plants to distribute ration a Business Continuity Task Force information. Thermal scanning and These First Responder Vehicles for temperature and sanitised. Digital kits comprising essential materials like comprising leadership team members automatic (no touch) hand sanitisation (FRVs) have been custom-built as an interface such as teleconference and video for monitoring the situation on a system at all locations have become accessory on the powerful Xtreme 200R conferencing is being used frequently for real-time basis and taking appropriate a standard protocol. The taps in the motorcycles of Hero MotoCorp. most business meetings. Weflour, give pulses, priority oil, tospices, large etc. number of measures as necessary with the evolving MSMEs and small vendors by providing situation. The task force has come up been replaced with ‘no-touch’ sensor The FRVs have been equipped with We have also sensitised all staff and In addition to this, We have distributed them full and on-time payments in this with a contingency plan for the safety basedlavatories, taps. canteens and offices have a full stretcher with a foldable hood other partners on the precautions that protective face-masks. Hero MotoCorp challenging environment. We also paid and wellbeing of all employees and mounted on the side, essential medical needs to be taken. Necessary steps and motorcycles have also been donated all our contractual workers well in associated stakeholders and for running Greeting each other with folded equipment such as a detachable sanitisation have been initiated to ensure to various authorities across India for advance for the full month, as they have the business as usual. hands, which was considered retro, that the environment within all our work use in relief efforts. We distributed been the ones impacted most adversely. has already replaced the ubiquitous extinguisher and other safety features premises as well as those of our extended meals to daily wage workers, stranded NAVIGATING THE NEW NORMAL handshake and is our preferred mode first-aid kit, oxygen cylinder, fire channels such as dealer partners remain labourers and homeless families in These are just the initial efforts of greeting. beacon light, emergency wireless public Social distancing and work from home safe and adequately insulated, with several areas of Delhi-NCR, Rajasthan, and we are well prepared with a announcementsuch as LED flasher system lights, and foldable siren. have become the ‘new normal’. Only a frequent fumigation and use of sanitisers. Haryana, Uttarakhand, Andhra Pradesh comprehensive contingency plan to As a leading innovator, we developed limited number of employees assigned and Gujarat. take care of any eventuality. our own fumigation tunnel in the COMMUNITY CARE for essential services were called within ACCESS TO INFORMATION, lockdown period and same is tested plant premises during the lockdown. ANYWHERE ANYTIME We have manufactured and already These meals were prepared in safe and installed at few strategically All safety and isolation measures as distributed several thousand litres and hygienic conditions by the kitchen We also developed our Self Declaration important locations. prescribed by authorities were practiced. of sanitiser. The sanitisers made by staff at the Company’s manufacturing app for daily assessment of the the Company have been distributed facilities in Gurgaon and Dharuhera

76 77 WAY FORWARD Hero MotoCorp Ltd. Sustainability Report 2019-20

AWARDS AND PARTICIPATION WAY FORWARD Validation for our untiring efforts Establishing 2030 sustainability targets

The year 2020 has been a year for reassessing vulnerabilities, risks and opportunities. While we have achieved most of our sustainability targets (HATS) in 2020 as per our plan, we are continuously working on the key areas that matter to our stakeholders and the Company. We are also leveraging the opportunity that emerged due to the crisis in exploring initiatives and re-aligning our strategy. As a global organisation, it is incumbent upon us to rethink and re-strategise to bring resilience to our entire sustainability framework and move towards next phase for 2030 through engagements on different platforms, stakeholder interaction

2030; however, with new challenges emerging and affecting theand entire leadership gamut insights. of community We have and identified business target during areas the for course of this year we are keen to develop a new set of targets and intend to accelerate initiatives around global platforms like TCFD, DJSI, CDP in a comprehensive way.

Business stewardship

• The Indian Motorcycle of the Year 2020’ (IMOTY) for • Hero MotoCorp recognised among top 20 record holder XPulse 200. for 2020 in 3rd World Record Holders Meet for getting maximum number of families participating in planting • Scooter of the Year’ Award at the prestigious Autocar 2.1 lakh tree saplings Awards 2020 for Maestro Edge 125 FI • Gram panchayat Dob Nagar Pathri in Haridwar being • developed for last three years under Hero CSR initiative Excellence 2019 Significant achievement in CII ITC Corporate has been recognised as Child Friendly Gram Panchayat by • Winner of Global Centre for Healthy Workplaces Ministry of Panchayati Raj, Government of India Award 2019 • Hero MotoCorp CSR bestowed with Mahatma Award 2019 • National Winners at 3rd edition of CII ANVESH 2019 for excellence in corporate social responsibility • Excellence in access control management at IFSEC • Second highest contributing company in Airtel Delhi India Awards Half Marathon • Asia Book of Records and India Book of Records for • Best CSR head at 7th World Auto Forum for maximum families participating in one single plantation outstanding excellence drive 2019 • Mahatma Award - 2019 for having a greener, safer and equitable world • Shiksha Vibhushan Bhamashah award by chief minister of

the state Rajasthan for the contribution in the field of education in

78 79 ANNEXURES Hero MotoCorp Ltd. Sustainability Report 2019-20

ASSURANCE REPORT

80 81 ANNEXURES Hero MotoCorp Ltd. Sustainability Report 2019-20

GRI INDEX

GRI STANDARDS: CORE OPTION GRI Standard disclosure Reference section Pg. no. GENERAL DISCLOSURES 2016 Organisational profile and strategy 102-1 Name of the organisation Cover page Cover page 102-2 Activities, brands, products, and services Product line up 10-11 102-3 Location of headquarters Back cover Back Cover 102-4 Location of operations Expanding touch points 12-13 102-5 Ownership and legal form Financial overview 22-23 102-6 Markets served Expanding touch points 12-13 102-7 Scale of the organisation Triple bottom line 7 102-8 Information on employees and other workers Sustainability pillar IV: People 49 102-9 Supply chain Sustainability pillar II: Responsible value chain 41 102-10 About the report 6 supply chain Significant changes to the organisation and its 102-11 Precautionary principle or approach 33 102-12 External initiatives Sustainability Pillar V: Inclusive growth 65 Sustainability Pillar I: Eco efficiency 102-13 Membership of associations Stakeholder rngagement 26 Strategy 102-14 Statement from senior decision-maker Message from the Chairman 4 102-15 Key impacts, risks, and opportunities Risks and opportunities 20-21 Ethics and integrity 102-16 Values, principles, standards, and norms Company overview 8, 18 of behaviour Governance 102-18 Governance structure Sustainability governance, 18 annual report 2019-20 Stakeholder engagement 102-40 List of stakeholder groups Stakeholder engagement 26-27 102-41 Collective bargaining agreements Sustainability pillar IV: People 49 102-42 Identifying and selecting stakeholders Stakeholder engagement 26-27 102-43 Approach to stakeholder engagement Stakeholder engagement 26-27 102-44 Key topics and concerns raised Stakeholder engagement, 26-27, 30 materiality assessment Reporting practice Materiality assessment 102-45 About the report 6 102-46 About the report 6 Entities included in the consolidated financial statements 102-47 List of material topics Materiality assessment 30 Defining report content and topic boundaries 102-49 Changes in reporting About the report 6 102-50 Reporting period About the report 6 102-51 Date of most recent report About the report 6 102-52 Reporting cycle About the report 6 102-53 Contact point for questions regarding the report About the report 6 102-54 Claims of reporting in accordance with the GRI Standards About the report 6 102-55 GRI content index GRI index 83-85 102-56 External assurance Assurance Report 80-82

82 83 ANNEXURES Hero MotoCorp Ltd. Sustainability Report 2019-20

GRI Standard disclosure Reference section Pg. no. GRI Standard disclosure Reference section Pg. no. GRI 200 Economic GRI 403 Occupational health and safety 2016 103-1 Explanation of the material topic and its boundary Financial overview 22 403-1 Workers representation in formal joint management– Safe workforce 62 worker health and safety committees 103-2 The management approach and its components Financial overview 22 403-2 Types of injury and rates of injury, occupational diseases, Safe workforce 62 GRI 201 Economic performance 2016 lost days, and absenteeism, and number of work-related 201-1 Direct economic value generated and distributed Financial overview 22-23 fatalities 201-4 Financial assistance received from government Financial overview 22 GRI 404 Training and education 2016 GRI 204: Procurement practices 2016 404-1 Average hours of training per year per employee Skill development 57 204-1 Proportion of spending on local supplier Financial overview 25 404-2 Programmes for upgrading employee skills and transition Skill development 54, 57-58 assistance programmes GRI 207 Tax 2019 GRI 405 Diversity and equal opportunity 2016 207-1 Approach to tax Financial overview 24 405-1 Diversity of governance bodies and employees People 51-54 207-2 Tax governance, control, and risk management Financial overview 24 GRI 406 Non-discrimination 2016 GRI 300 Environmental 406-1 Incidents of discrimination and corrective actions taken Sustainability governance structure 19 103-1 Explanation of the material topic and its boundary 33 103-2 The management approach and its components 33 GRI 413 Local communities 2016 Sustainability pillar I: Eco efficiency 413-1 Operations with local community engagement, impact Inclusive growth 65 GRI 301 Materials 2016 Sustainability pillar I: Eco efficiency assessments, and development programs 301-1 Materials used by weight or volume Materials 36 GRI 416 Customer health and safety 2016 301-2 Recycled input materials used Materials 36 416-1 Assessment of the health and safety impacts of product and Customer satisfaction, road safety 41, 68 GRI 302 Energy 2016 service categories 302-1 Energy consumption within the organisation Energy and GHG 34 416-2 Incidents of non-compliance concerning the health and Compliance 19 safety impacts of products and services GRI 303 Water and effluents 2018 303-1 Water withdrawal by source Water 35 GRI 417 Marketing and labelling 2016 417-1 Requirements for product and service information and Compliance 19 303-3 Water recycled and reused Water 35 labelling 303-4 Water discharge Water 35 417-3 Incidents of non-compliance concerning marketing Compliance 19 GRI 305 Emissions 2016 communications 305-1 Energy direct (Scope 1) GHG emissions Energy and GHG 34 GRI 419 Socio-economic compliance 2016 305-2 Energy indirect (Scope 2) GHG emissions Energy and GHG 34 419-1 Non-compliance with laws and regulations in the social and Compliance 19 305-4 GHG emissions intensity Energy and GHG 34 economic area 305-6 Emissions of ozone-depleting substances (ODS) Air emissions 39 305-7 Nitrogen oxides (NOx), Sulphur oxides (SOx), and other Air emissions 39

GRI 306 Wastesignificant 2020 air emissions 306-3 Waste generated Waste 38 GRI 307 Environmental compliance 2016 307-1 Non-compliance with environmental laws and regulations Compliance 19, 33 GRI 400 Social 103-1 Explanation of the material topic and its boundary People, inclusive growth 49, 65 103-2 The management approach and its components People, inclusive growth 49, 65 GRI 401 Employment 2016 401-1 New employee hires and employee turnover People 50 401-2 Talent recruitment and retention 56 provided to temporary or part-time employees Benefits provided to full-time employees that are not 401-3 Parental leave 56

GRI 402 Labour/Management relations 2016 Employee benefits 402-1 Minimum notice periods regarding operational changes 21 days (as per Industrial Disputes Act, 1947) 84

84 85 NOTES

87 Hero MotoCorp Limited (CIN:L35911DL1984PLC017354)

The Grand Plaza, Plot No. 2, Nelson Mandela Road, Vasant Kunj - Phase - II, New Delhi - 110 070, India Tel: 011-4604 4220 Fax: 011-4604 4399 www.heromotocorp.com