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

MAHINDRA & MAHINDRA LTD. Integrated Annual Report 2022-23 As a Company operating in the manufacturing and agricultural sectors, Mahindra's operations are highly vulnerable to climate change and unpredictable weather events necessitating resilience planning. Mahindra is highly dependent on seasonal monsoon, rising energy costs, restricted access to raw materials like water as well as changing consumer preferences. l In line with the Science-based target initiative (SBTi), we have committed to reducing Scope 1 and Scope 2 GHG emissions by 47% per equivalent product unit and Scope 3 GHG emissions by 30% per sold product unit by 2033 from a 2018 base year. l We have also identif ied a non-renewable energy consumption reduction target of 4.1% y-o-y for the next 15 years. This target is in line with our SBT emission reduction roadmap. Science-based Targets (SBT) In F23, Automotive Sector achieved 43.6% and Farm Equipment Sector achieved 23% reduction in Scope 1+2 emissions with F19 as the base year. Accelerating the energy transition is a key factor in increasing our ambition to reach carbon neutrality and contribute to counteracting the climate crisis. At Mahindra, we are rapidly moving from hydrocarbons to including more affordable and non-polluting energy sources in our mix, including solar and wind. Our renewable electricity reached to 32% in F23 compared to 12% in F22. Renewable Energy In F23, M&M's renewable electricity consumption stood at 32% Key renewable energy initiatives We have set up a Special Purpose Vehicle (SPV) between Solar Developer – ReNew Power and various Mahindra units (the power consumers). The SPV, in which Mahindra has a 30% stake, owns and maintains a 60MWp solar power project spread across 150 acres at Parbhani, Maharashtra, under a group captive model for M&M Maharashtra's power requirement. As a result of this project, 79,000 tCO₂ emissions are avoided each year, which is approximately 34% of FY22 Scope 2 emissions. This is equivalent to nurturing around 2 million trees or powering 20,650 Indian houses for a year. Harnessing the Solar Power Multiple M&M Units The contribution of a 248 KWp solar plant (commissioned in F19) to the total power consumption at the Rudrapur Tractor Plant was only 5%. The team at Rudrapur plant installed and commissioned a 760 KWp rooftop solar plant to increase the contribution of solar power. The project, commissioned in only 50 days with zero safety incidents, raised the percentage contribution of solar energy to the energy mix at Rudrapur from 5% to 20%, and reduced GHG emission by 900 TCO₂ annually. Scaling New Heights with Solar FD, Rudrapur 36