MAHINDRA & MAHINDRA LTD. Sustainability Report 19/20 RESPECTING BOUNDARIES alerSEnTS aYOU FREvE sm alerna vsm We believe that rising through an unpredictable and unprecedented black swan event like the Covid-19 pandemic is possible only through an Alternativism led sustainable approach where we respect our planetary boundaries. Economic freedom and fair growth are achievable within the realm of social and environmental boundaries of life's essentials and excesses. Living beyond resources may cause volatile events, while the antifragility to thrive in disruptions is mastered through the holistic attitude of doing well by doing good, for everyone. Alternativism is this state of mind for true sustainability, where we sow the seed between the need and the greed and reap the Rise of a just and growing society. Towards achieving this, we need to provide alternative sustainable choices to consumers through innovative thinking, ingenious products, and inventive business models. Let us build to last, adapt, and sustain. That will be a true victory through these testing times which give us the opportunity to Reboot | Reinvent | Reignite and thus Rise. S 01 T Executive Messages N E T N O C 05 47 79 Company Profile Carbon Emission Health & Safety 12 61 101 Economic Performance Water Security Product Stewardship 22 66 122 Corporate Governance Waste to Wealth CSR Management 138 SUSTAINABILITY SNAPSHOT Subsidiaries & Associates Refer comprehensive report online 27 75 211 Sustainability and Us Sustainable Supply Chain Annexures Comprehensive report available on: www.mahindra.com/resources/pdf/sustainability/ Mahindra-Sustainability-Report-2019-20.pdf 01 MESSAGE FROM THE CHAIRMAN We as a group are built There is no doubt that the pandemic crisis we are facing is unparalleled in its magnitude, but for mes like these. We haven't chosen the the multitude of times we have overcome situaon we are in, but we can choose our challenges in the past gives us the condence response to it. that this time too, we will Rise. To do this, we need to reimagine the future. A future where we do not just build back what existed but build afresh a new and better economic system. The goal is to create an inclusive and sustainable post-COVID economy that benets the society, the planet, and the shareholders for generations to come. GRI 102-14 MAHINDRA & SUSTAINABILITY MAHINDRA LTD. REPORT 19/20 02 One of the ways we can achieve this is through Alternavism which is our commitment to innovate our products and processes by building in sustainability. We do this by respecng social and environmental boundaries, because for us, doing business for good is as important as doing good business. This is, in fact, the raison d'être of some of our companies. We wondered how we could help make commute more sustainable, and we got into Mahindra Electric, our electric mobility business. We aspired to make energy more sustainable and became pioneers in the solar space with Mahindra Susten. The goal of making our habitats more sustainable, drove Mahindra Lifespaces to create homes that are easy on the planet, and enable residents to reduce their carbon footprint. Efforts at sustainability extend to our processes as well and are well recognised. In the reporng year, we had a relook at our material issues; we have taken on commitments for each such issue. Hence, all our iniaves are materiality oriented, measurable, consistent and in line with our commitments towards the planet, people, and profit. PLANET PEOPLE PROFIT We believe going green makes business Our commitments on sustainability are Despite the contagion and the challenges in sense. Transforming a ~150-company, mul- enthusiascally embraced by our ~225,000 the auto industry, we successfully achieved a sector group to carbon neutrality by 2040 is colleagues, who feel a sense of smooth transion to BS6 and increased our a massive commitment, but the Mahindra responsibility for the future. Whether it is market share in commercial vehicles as well Group is delivering on this and several other working from home or with guidelines in the as our farm equipment business. green iniaves. Carbon neutrality plans new normal, or achieving a steep target, Our EV sales and allied businesses (Susten, have been approved by eight group Mahindraites have risen to the occasion. A Powerol, Accelo) also showed growth companies, and 13 of our companies have sense of urgency and a lively curiosity, spur compared to last year. received their SBTi (Science Based Targets our acon and innovaon. Our drive towards a sustainable future that Iniave) targets approved. Challenging norms and pushing the envelope addresses the needs of a greener planet and Unsustainable exploitaon of nature is like are part of our roune. When we think of an its people connues. The Group's green killing the goose that lays the golden egg. automobile workshop that caters to SUVs, it revenue porolio is now worth half a billion Value addion in the future will depend on is easy to visualise a team of men working dollars and includes electric vehicles, the conservaon of natural resources by on heavy-duty machines. Redefining this automove recycling, solar energy, waste- effecvely doing more with less. We are convenonal percepon, the Mahindra to-energy and biogas, green buildings, and making great efforts to foster a circular Group recently launched India's first all- micro-irrigaon. We see this as a blueprint economy by minimum use of materials, women run automobile workshop in Jaipur, for the future of business. reducon in waste generated, and usage of Rajasthan, as part of the #pinkcollar waste as a valuable resource. Till now, 17 of iniave. Women Rising will be one of our facilies have been cerfied as zero India's most impressive stories over the next waste to landfill. few decades, and we are determined to 2020 marks the 75th year encourage it. Water is a parcularly precious resource. of Mahindra and Mahindra. Many of our CSR iniaves focus on filling Happily, our efforts are recognised. M&M is In the true spirit of Rise, reservoirs as a community resource. In the ranked 10th on the list of India's Best let's use it to move faster plants and locaons, we follow the three Workplaces in Manufacturing 2020 by Great towards our vision of a R's, - Reducing, Recycling and Recharging Place to Work®. resilient, inclusive, and through iniaves such as rainwater sustainable future for all. The same passion drives us when it comes harvesng, micro irrigaon, and water to working for the community. Project Nanhi recharging. All these iniaves are strictly Kali ll date has provided educaonal monitored to opmise water consumpon. support to more than 450,000 Water recharge this year increased from underprivileged girls. It goes without saying 0.12 million m3 to 0.64 million m3. that every possible resource at Mahindra is In F20, we planted 1.52 million trees taking acvely involved in helping people in the the total to 17.93 million trees planted so country combat the pandemic challenge. far. Project Hariyali our tree planng iniave was recognised this year in the Anand G. Mahindra Chairman, Mahindra Group Limca Book of Records. GRI 102-14 03 MESSAGE FROM THE CHAIRMAN, GROUP SUSTAINABILITY COUNCIL The o-quoted new normal One of the ways in which we do this is asking a pernent queson about the issues that in a post COVID-19 world are material to our business. We update the issues based on - how can we make them talks about seling into a more relevant to the current environment, and to the future scenario? new way of living and working. For us though, The review of our materiality assessment there is no seling. Alternavism is a choice involves reidentifying and revaluating the we made a few year ago which inspires us to never key issues by engaging with all internal and sele - thus enabling us to reinvent products and external stakeholders, and benchmarking processes. This makes us a sustainable organisaon with leading industry peers. After mapping, contribung to the people, planet and profit pillars. prioritisation, and validation, the nal materiality matrix emerges. The key material issues identied are used to reformulate the sustainability strategy and a strategic roadmap for the future. GRI 102-14 MAHINDRA & SUSTAINABILITY MAHINDRA LTD. REPORT 19/20 04 We undertake iniaves involving the idenfied core issues and in fact, this year's sustainability report structure is altered to reflect some of the iniaves we have taken on the idenfied key material issues. CARBON WASTE TO HEALTH & EMISSION WEALTH SAFETY Climate change is a reality that we as a globe Mahindra follows a zero-waste philosophy We consistently reinvent workplace pracces are facing. We have stepped up to the and manages waste at every stage from to promote the overall well-being of challenge by driving climate change prevenon to minimisaon, reuse to employees and enable them the best work migaon efforts and comming to an recycling and from energy recovery to environment. We recorded 61% reducon in audacious goal of becoming carbon neutral disposal. Last year, we had nine Zero Waste injuries in F20 and a 20% improvement in as a group by 2040. This calls for massive to Landfill (ZWL) factories, which have now Health Index. changes to our operaonal ecosystem and grown to 14 plants, one research centre, one Given the COVID-19 situaon, although we substanal reducon in carbon emissions. For resort and a warehouse. SBU Kanhe was are trying to maintain business connuity, that, we are adopng cleaner and greener cerfied as the first Zero Waste to Landfill our primary focus is keeping our employees processes, improving energy and resource warehouse in India.