annual-report-FY2021

206 COMPANY OVERVIEW BOARD’S REPORT MANAGEMENT DISCUSSION AND ANALYSIS CORPORATE GOVERNANCE BUSINESS RESPONSIBILITY REPORT STANDALONE ACCOUNTS CONSOLIDATED ACCOUNTS improve the awareness with regard to legal compliances, enhance eco-efficiencies, employee health and safety initiatives etc. • Continuous engagement with suppliers is ensured through supplier meets, business reviews, multiple training sessions & two-way interactive Msetu Platform. • To motivate the suppliers to take the Sustainability agenda forward, good practices at supplier end are recognized, by institutionalizing “Annual Sustainability Award”. • In persuasion of ethical practices, in F-21 Supplier Code of Conduct version 2.O was released for compliance declaration by suppliers as per M&M supplier code of conduct. • To maintain a safe working culture at supplier, in F-21 we have initiated supplier safety audits through 3 rd party & inputs were given to suppliers for improvement. • Since last 4 years, we have been working on Zero Wood Waste Policy and with various initiatives, we have successfully reduced our wood in domestic packaging. Automotive Division has reduced 32.97% of wood consumption and Farm Equipment Division has reduced 100% w.r.t F16 base year. 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 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 withmanagerial and technical assistance to train them on practices and procedures that will ensure improvements in Productivity, Quality, Cost, Delivery, Safety and Morale (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 within the country with a very small percentage of input being procured from overseas. 5. Does the company have a mechanism to recycle products and waste? If yes what is the percentage of recycling of products and waste (separately as <5%, 5-10%, >10%). Also, provide details thereof, in about 50 words or so. Yes, it is the Company’s ongoing endeavour to have a mechanism to recycle products and limit the waste arising out of production of vehicles and tractors. • The Company has initiated well documented processes to ensure compliance with the European Union Directive 2005/64/EC which is now implemented for vehicles exported to European Union. • Our objective is to restrict the amount of waste produced from End of Life of vehicles (ELVs) and increase the recovery and recycling of ELVs that arise. The information on recyclable parts and manual for dismantling is provided with export vehicles. • We follow the ISO 22628:2002, to calculate the recyclability rate, the recoverability rate and reusability rate (RRR) of our export vehicles. • We have 5 models complying with the European Union Directive 2005/64/EC norms on recyclability and are currently exporting 1 product. • The Company is actively participating in the committee formed by the Society of Indian Automotive Manufacturers (SIAM) to frame processes and procedures for Product Recycling in India. • The batteries used in vehicles are recycled in a structured manner through the battery manufacturing companies in India. Similarly, other parts such as tyres, body components, etc.