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

COMPANY OVERVIEW BOARD’S REPORT MANAGEMENT DISCUSSION AND ANALYSIS CORPORATE GOVERNANCE BUSINESS RESPONSIBILITY REPORT STANDALONE ACCOUNTS CONSOLIDATED ACCOUNTS 196 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 consistently purchases goods and services from local suppliers. • Through communication meetings and supplier business evaluations, the purchasing group shares its yearly plans and tentative plans for the following two years with its key suppliers. • These suppliers receive management and technical support in order to train them on best practises and procedures that will boost productivity, quality, cost, delivery, safety, and morale (PQCDSM). • Initiatives such as Supplier Business Capability Building (SBCB), Mahindra Supplier Evaluation Standard (MSES), Technical Capability Building programmes, Supply Risk Mitigation & Management (SRMM), Safety Training & assessments, technical support for special processes during new product development, VAVE (Value Analysis Value Engineering) activities, and Associate Value Specialist Program for suppliers, among others, are used to achieve the above. • The Company is concentrating its efforts on developing supplier parks near its operations, such as Chakan Supplier Park and Zaheerabad Supplier Park. • The Company continues to prioritise purchasing from local suppliers that are geographically close to its manufacturing facility. • Almost all sourcing is done domestically, with only a small fraction of inputs being sourced from outside the country. 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 10%). Also, provide details thereof, in about 50 words or so. Yes, the Company is continually striving to build a system to recycle products and reduce waste generated during car and tractor manufacturing. • The Company has established well-documented procedures to guarantee compliance with the European Union Directive 2005/64/EC, which is currently in effect for automobiles exported to the European Union. • Mahindra’s goal is to reduce the amount of waste generated by End-of-Life Vehicles (ELVs) and to enhance the number of ELVs recovered and recycled. Export automobiles come with information on recyclable parts and a dismantling manual. • To determine the recyclability, recoverability, and reusability rate (RRR) of the export vehicles, the Company uses ISO 22628:2002. • The Company has 5 models complying with the European Union Directive 2005/64/EC norms on recyclability and is currently exporting one product. • The Company is a member, and an active participant of the Society of Indian Automotive Manufacturers (SIAM) committee that is developing methods and procedures for product recycling in India. • In India, the batteries used in automobiles are recycled in an organised manner by battery manufacturing companies. Other elements, like tyres and body components, are also recycled by licenced scrap dealers, who either recover the material used or cannibalize/refurbish the components for reuse. • CERO is India’s first authorized recycler for motor vehicles with dismantling centers at Greater Noida, Pune and Chennai and in addition collection centers at major cities such as Mumbai, Bangalore, Hyderabad, Ahmedabad, Jaipur and Chandigarh. • Any customer who wishes to purchase a new Mahindra vehicle by scrapping or exchanging an older vehicle (over 15 years) can do so at any Mahindra dealership. These services would save the consumer time and money by eliminating the need to find a scrapping agency or dealer. • This is especially relevant given the new vehicle scrappage policy announced by the Minister for Road, Transport and Highways. • For European M1 and N1 products, the Company has undertaken Life Cycle Assessment (LCA) in the form of compliance with the End-of-Life Vehicle (ELV) requirement. • The vehicles are exported and certified as per European Emission Compliance (EEC) directive 2005/64/ EC.