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

A cohesive framework, well-structured processes and focused interventions are the foundation of our environmental management approach. We have launched several key initiatives, including increasing the share of alternative energy sources in our operations, decarbonising the industry and rejuvenating the planet. COMPANY OVERVIEW RISE TO CREATE VALUE RISE TO BE FUTURE READY RISE FOR A MORE EQUAL WORLD CORPORATE INFORMATION STATUTORY REPORTS FINANCIAL STATEMENTS These core issues were given due importance while formulating the sustainability strategy. Some of the highlights of our sustainability initiatives are mentioned in this section. KEY MATERIALITY ISSUES Apart from being an important tool to meet the expectations of the stakeholders, materiality helps shape our sustainability strategy, analyse risk factors and upgrade the business process for future opportunities. While we review our materiality issues annually to identify new topics, the materiality assessment is conducted every three years when we reset our roadmap. Internal and external stakeholders, including top management, employees, suppliers, dealers, customers, investors and the community were identif ied and engaged during the review process. Based on these interactions and benchmarking with industry peers, the material issues were identif ied. This intense process of mapping, prioritisation, preparation and validation lead to the f inal materiality matrix. Our key material environment issues are: Carbon Emission Water Security Waste to Wealth REDUCTION OF GREENHOUSE GASES (GHG) Every ton of reduction in GHG takes us closer to our target of becoming carbon neutral. The reduction in GHG also brings down our carbon footprint, improves employee and public safety, and reduces pollution. We have been consistently working to reduce GHG emissions by increasing energy efficiency and reducing dependence on non-renewable sources of energy. Key initiatives to reduce GHG emissions Mahindra Group has built several businesses with green products and services. The Green Portfolio includes initiatives such as renewable energy, auto recycling, green buildings, micro-irrigation and electric vehicles. Green Portfolio At Mahindra, we have established an internal carbon pricing mechanism. It serves multiple purposes: generating funds to support low carbon projects, aiding informed decision-making by our management when investing in eco-friendly initiatives, achieving our emission reduction targets, and aligning our operations and investments with the transition towards a low carbon economy. We have implemented a carbon price of $10 per ton of CO emitted and have been 2 investing in innovative technologies and processes to enhance energy eff iciency. Carbon Pricing 35