MAHINDRA & MAHINDRA LTD. Integrated Annual Report 2023-24 244 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 a stringent Code of Conduct covering all environmental and social aspects for all suppliers. Further, in order to mitigate various supply chain risks such as ESG risk, Financial risk, Safety risk, Labour risk, the Company conducts ESH, Health, Fire & Safety audits for identified suppliers through renowned third-party audit agencies. Based on the improvement areas identified in the audits, suppliers submit mitigation plan. The Company runs various training programs for suppliers namely Business Capability Building (SBCB), Fire & Safety, ESG trainings for identified suppliers to inculcate awareness on impact of factors like Environmental, Social, Governance and Health & Safety. Positive 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 In alignment with the Group’s RISE Philosophy, CSR at Mahindra is an integral part of the business. There is a defined CSR Policy which outlines the CSR strategy of investing in projects that address nation building priorities as well as focus on local developmental needs across all the locations of the Company. The flagship CSR Initiatives undertaken by the Company focus on empowering underprivileged girls, women economic empowerment and environment conservation. These align to the UN SDG Goals and CSR Framework laid down by the Government and the Company’s ESG goals. Flagship CSR Initiatives undertaken during the year include the following. 1. Nanhi Kali -This initiative empowers underprivileged girls studying in government schools from Class 1 to10, by providing educational support and enabling them to successfully complete their schooling. 2. W omen’s Economic Empowerment - This initiative empowers women by providing essential skills training in various domains which matches with the emerging skill requirements of the industry. 3. Hariyali and Water Management - As a part of environment conservation, these initiatives focus on a massive tree plantation drive to enhance the green cover and biodiversity. The focus is also on addressing climate change aspects through climate resilience-based water management and conservation efforts with the support of community engagement and ownership. NA Positive Implications: In compliance with the requirement under the Companies Act, 2013, the Company has spent 2% of the average net profit for the last three nancial years on CSR Initiatives during the reporting year. The CSR Initiatives helped achieve the following positive outcomes: - 1. Girl Child Education has enabled access to education and has increased confidence levels of girls to continue education. 2. W omen Economic Empowerment has created possibilities for women to tap opportunities to enhance their socio-economic status through employability and career readiness. 3. The Environment conservation efforts have contributed to improved green cover, water security, biodiversity, improved soil and agri-practices resulting in irrigation and water conservation.
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