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

202 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) 6 Sustainable Supply Chain R The Company considers suppliers as business partners and strives to develop sustainable supply chain. For delivering right product/services at right time to customers, supply chain plays a vital role and any disruption in supply chain will impact the business of the Company. Moreover, any breach of ESG practices will result in severe impact on supplier’s business and also on the business of the Company and its reputation. The Company has set stringent Code of Conduct for all supplier partners. Further, the Company mitigates supply chain risk, the Company has established Supplier Risk Management and mitigation (SRMM) process for suppliers. SRMM includes Financial Risk, Safety Risk, Labour Risk. The Company is conducting Health, Safety Practices and working condition audit for identified suppliers through industry experts. Based on the improvement areas mentioned in report, supplier prepares and submits action plan. By the end of FY23, the Company has also initiated on-site ESG audit for suppliers through internationally reputed agencies. For enhancing capability of suppliers, the Company runs supplier development programs namely Supplier Business Capability Building (SBCB) and Mahindra Supplier Evaluation system (MSES) for identified suppliers. The Company also conducts training programs on sustainability topics like Environment, Social and Governance practices for its suppliers. Negative Implications: Improvement in ESG practices at the supplier's end will improve supply chain efficiency & considerably reduce the risk of supply chain disruption along with reputation risk. This will result in smooth operations. 7 CSR Management O As a part of nation building, the Company has implemented various CSR projects primarily serving the constituencies of girls and women and supporting the environment through a massive tree plantation drive. Key projects are mentioned below: Project Nanhi Kali is a pan-India girl child empowerment programme which helps under-privileged girls complete their schooling. Through the project, girls in government schools (from Classes 1-10) are provided with daily after school academic support, access to an AI powered personalized learning software via digital tablets, a sports curriculum and a school supplies kit. The Mahindra Pride Classrooms is a pan-India women empowerment initiative to impart skilling for women enrolled in government/ government-aided vocational colleges and institutions. Women are trained in English speaking, life skills, interview preparedness and digital literacy, which are critical skills required to boost their employability. Project Hariyali aims to increase the green cover, arrest the rising ecological imbalance, protect the biodiversity and in the process support the livelihood of marginalized farmers. NA Positive Implications: The Company is required to spend 2% of the average net pro t for the last three nancial years on CSR Initiatives. Through the CSR initiatives, the following are achieved: 1. Empowerment of under- privileged girls to complete their schooling 2. Increase in employability of women 3. Increase in green cover and support to the livelihood of marginalized farmers