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

207 COMPANY OVERVIEW BOARD’S REPORT MANAGEMENT DISCUSSION AND ANALYSIS CORPORATE GOVERNANCE BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT STANDALONE ACCOUNTS CONSOLIDATED ACCOUNTS PRINCIPLE 2 BUSINESSES SHOULD PROVIDE GOODS AND SERVICES IN A MANNER THAT IS SUSTAINABLE AND SAFE ESSENTIAL INDICATORS 1. Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the environmental and social impacts of product and processes to total R&D and capex investments made by the entity, respectively. FY 2022-23 % FY 2021-22 % Details of improvements in environmental and social impacts R&D 23 16 Development of Born Electric Vehicles – Zero Tailpipe emission and improving air quality – Reducing reliance on Fossil fuel Development of Trem 4, Trem V, CPCB4, Stage V Technologies – To reduce air pollution – Mitigate Global warming effects Electric tractor – Concept development of e-tractor and POC completion Capex 13 5 2. a. Does the entity have procedures in place for sustainable sourcing? (Yes/No) Yes b. If yes, what percentage of inputs were sourced sustainably? Th e Company has been working to enhance the degree of sustainability associated with its sourcing practices under “ONE SOURCING”. As part of the sourcing strategy, the Company has set up vendor parks near manufacturing plants, source from tightly knit clusters, optimize logistics to reduce fuel consumption, emissions and carbon footprint. The Company has reduced domestic wood used for packaging and supply of material by 88% from the base year of 2016. 3. D escribe the processes in place to safely reclaim your products for reusing, recycling and disposing at the end of life, for (a) Plastics (including packaging) (b) E-waste (c) Hazardous waste and (d) other waste. CERO, which is India's first and largest network of vehicle recycling company, is a brand under subsidiary Mahindra MSTC Recycling Private Limited, established in collaboration with Government of India Enterprise (GOI). CERO strives to achieve the goal of zero pollution, wastage, and metal scrap imports. (a) Plastics (including packaging) P lastic which is being removed from end-of-life vehicle is recycled through agencies authorized by the Pollution Control Board. Granules are prepared from the plastic waste and used as raw material for making new product. The Company does not use any packaging material in its process. (b) E-waste E-waste is recycled through recyclers authorized by the Pollution Control Board as per E-waste management Rules, 2022. (c) Hazardous waste A ll hazardous waste from the vehicle is removed before beginning the scrapping process. This includes collection of fluid and CFC. The Hazardous waste (fluid) is sent to agencies authorized by the Pollution Control Board for recycling/refining. (d) Other waste. All the ferrous and non-ferrous metals are extracted from the vehicle for recycling.