MAHINDRA & MAHINDRA LTD. | Integrated Annual Report 2021-22

195 MAHINDRA & MAHINDRA LTD. Integrated Annual Report 2021-22 2. For each such product, provide the following details in respect of resource use (energy, water, raw material etc.) per unit of product (optional): i. Reduction during sourcing/production/ distribution achieved since the previous year throughout the value chain? T here is no specific resource use tracking method for the products mentioned above. However, the entire portfolio’s resource usage is recorded and monitored. The resource consumption per unit of equivalent vehicle or equivalent tractor manufactured is tracked since the product portfolio is diversified across multiple manufacturing locations of the Company. In the reporting year, the methodology for computation was updated to include data from Chakan in the Automotive Division and Swaraj Foundry in the Farm + Swaraj Division. The following table provides resource use estimation for the current year and restated estimates for the previous year: Resource Use Divisions Unit of Measurement Current Year 2021-22 Previous Year 2020‑21 (With Revised Calculation) Previous Year 2020‑21 (as reported in Annual Report) Specific Energy Consumption Automotive Division GJ / Equivalent Vehicles 1.583 1.538 1.410 Farm + Swaraj Division GJ / Equivalent Tractors 1.417 1.433 1.174 Specific Green House Gas Emissions (Scope 1 & 2) Automotive Division tCO 2 / Equivalent Vehicles 0.204 0.211 0.192 Farm + Swaraj Division tCO 2 / Equivalent Tractors 0.207 0.213 0.160 Specific Water Consumption Automotive Division KL / Equivalent Vehicles 1.348 1.492 1.234 Farm + Swaraj Division KL / Equivalent Tractors 0.846 0.912 0.816 ii. Reduction during usage by consumers (energy, water) achieved since the previous year R eduction in energy consumption would be observed at Consumers’ end over the years due to advancements in technologies and improved fuel efficiency of vehicles. However, monitoring such a reduction is difficult since it is completely dependent on the driving behaviour of individual consumers. 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. • Under the umbrella of “ONE SOURCING,” the Company has been attempting to improve the degree of sustainability considerations in its sourcing processes. 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, optimizing logistics to reduce fuel consumption, emissions and carbon footprint, re-working packaging to minimize waste and maximize re-use. • Mahindra has a Green Supply Chain Management Policy and a Supplier Code of Conduct that has been shared with all suppliers, through which the Company is committed to increasing awareness of legal compliances, increasing eco-efficiency, and promoting employee health and safety initiatives, among other things in the supply chain. • Supplier meetings, business evaluations, several training sessions, and the two-way interactive M SETU Platform provide continuous contact with suppliers. • To encourage suppliers to bolster their sustainability agenda, the “Annual Sustainability Award” was established to reward exemplary supplier practices. • To promote ethical behaviour, the Supplier Code of Conduct version 2.O was launched in FY 2020-21 for suppliers to declare conformity with the M&M Supplier Code of Conduct. By spend, more than 78 percent of suppliers have signed the Code of Conduct till date. • To ensure a safe working environment in the supply chain, in FY 2020-21 the Company began third-party supplier safety audits, with feedback offered to suppliers for improvement. The scope of safety audits was expanded in FY 2021-22, with a total of 317 vendors covered by the end of the financial year. • We have been working on a Zero Wood Waste Policy and other initiatives for the past four years. By reducing/eliminating wooden and corrugated packing, we were able to save 8430.01 tCO 2 .