annual-report-FY2020

213 MAHINDRA & MAHINDRA LTD. INTEGRATED ANNUAL REPORT 2019-20 ii. Reduction during usage by consumers (energy, water) has been achieved since the previous year? Due to constant innovations and focus on fuel efficiency, there would be a reduction of energy use by consumers. However, tracking of such reduction is not possible as it is highly dependent on individual customers driving habits. 3. Does the company have procedures in place for sustainable sourcing (including transportation)? If yes, what percentage of your inputs was sourced sustainably? Also, provide details thereof, in about 50 words or so. The Company has been working to enhance the degree of sustainability associated with its sourcing practices under the umbrella of “ONE SOURCING”. This includes strategy of one supplier per platform and common supplier basket for multiple businesses, setting up of vendor parks at its new plants, sourcing from tightly knit clusters, optimising logistics to reduce fuel consumption, emissions and carbon footprint, re-working packaging to minimise waste and maximize re-use. The Sustainability road map of the Company covers these areas and the Company takes steps to ensure that its sourcing methods are sustainable. Almost the entire sourcing work is done from the country with a very small percentage of input being procured from overseas. The Company has a Green Supply Chain Management Policy & Policy on Supplier Code of Conduct, which has been shared with all suppliers, under which, the Company is committed to improve the awareness with regard to legal compliances, enhance eco-efficiencies, employee health and safety initiatives etc. at supplier end through initiatives such as Supplier Business Capability Building (SBCB), Mahindra Supplier Evaluation Standard (MSES), Mass Manufacturing Approval (MMA) & Supply Risk Mitigation & Management (SRMM). Continuous engagement with suppliers is ensured through supplier meets, business reviews, multiple training sessions & two-way interactive M SETU Platform. To motivate the suppliers to take the Sustainability agenda forward, good practices at supplier end are recognised, by institutionalising “Annual Sustainability Award”. In F20 “Supplier management policy” has been released and made available on our two way interactive MSETU Platform for all suppliers. Since the last 3 years, we have been working on Zero Wood Waste Policy and with various initiatives, we have successfully reduced our wood in domestic packaging. Auto Division (AD) has reduced 91% of wood consumption w.r.t F16 base year and Farm Division (FD) has reduced 100%. 4. Has the Company taken any steps to procure goods and services from local & small producers, including communities surrounding their place of work? If yes, what steps have been taken to improve their capacity and capability of local and small vendors? Yes. The Company has a practice of purchasing goods and services from local suppliers. The Company does not have any small suppliers where the owner himself or herself is a worker. The Company has multiple plants spread across West, South and North of India. The major factors influencing selection of Suppliers across these regions are: • Capability, performance and on-time delivery. • Compliance on environment, health & safety guidelines. • Readiness to participate in sustainable supply chain management program. • Total cost. The purchasing group has a standard practice of sharing its annual plans and next two year’s tentative plans with its key suppliers through communication meets and supplier business reviews. These suppliers are provided with managerial and technical assistance to train them on practices and procedures that will ensure improvements in Productivity, Quality, Cost, Delivery, Safety and Moral (PQCDSM). This is done by initiatives like Supplier Business Capability Building (SBCB), Mahindra Supplier Evaluation Standard (MSES), Technical Capability Building programs, Supply Risk Mitigation & Management (SRMM), Safety Training & assessments and technical support for special processes during new product developments, VAVE (Value Analysis Value Engineering) activities along with Associate Value Specialist Program for suppliers, etc. The Company has special focus on creating supplier parks near the plants for e.g. Chakan Supplier Park and Zaheerabad Supplier Park. The Company has a continued focus on buying from local suppliers, geographically nearest to the Company’s manufacturing facility. Almost entire sourcing work is done from the country with a very small percentage of input being procured from overseas.