MAHINDRA & MAHINDRA LTD. | Integrated Annual Report 2022-23

200 MAHINDRA & MAHINDRA LTD. Integrated Annual Report 2022-23 S. No. Material issue identified Indicate whether risk or opportunity (R/O) Rationale for identifying the risk opportunity In case of risk, approach to adapt or mitigate Financial implications of the risk or opportunity (Indicate positive or negative implications) O The Company is committed to sustainable business practices by contributing to environment protection and considers carbon emission reduction as one of the strong pillars of preserving natural resources. Carbon Emission reduction helps in reducing the power and fuel cost (which is around 15% of total vehicle conversion cost) and hence improves the bottom-line under the Company’s ‘Mission Sustainability’. NA Positive Implications: Impacts resource efficiencies and cost savings. The adoption of low- emission energy sources results in the development of new products and services, access to new markets and building resilience along the supply chain. 3 Waste to Wealth O The Company is committed to sustainable business practices by contributing to environment protection and considers waste to wealth as one of the focus areas under sustainability. Production of automobiles involves the generation of waste materials both Hazardous and Non-hazardous waste. The major impact through this waste is environment pollution and resource depletion. NA Positive Implications: Reduction in waste generation or recycling of waste leads to economic gains and supports in reduction of Green House Gas (GHG) emissions. 4 Product Stewardship R In the current situation, customers have many options to choose from various brands. Competition from peers, customer focus, new regulations, market demand, etc. are some of the drivers for constant evolution and new product development. To cater to the new product requirements, the Company is into various phases of R&D/production/marketing of clean automotive products like hybrid vehicles, bio-fuel vehicles, electric passenger vehicle, hydrogen combustion engine vehicle, etc. Further, a full-fledged Product Improvement Roadmap is in place at the Company. This roadmap focuses on the reduction in specific fuel consumption, weight reduction, switching to alternative fuels, enhancing product safety, etc. We are fully geared up to leverage opportunities through our initiatives in Shared Mobility, Electric Vehicles, innovative products and extensive product portfolio. Negative Implications: It is imperative for manufacturers to design products so as to meet changing consumer behaviour and expectations. Creating products and services that are not-sustainable/ not viable/ not accessible/ not affordable will have an impact on overall brand image and economic performance .