CASE STUDY: DECARBONISING THE SUPPLY CHAIN THROUGH CIRCULARITY | AUTO With nearly 10% of Scope 3 emissions from purchased goods and services, the Automotive Sector (AS) proactively embeds circularity in its supply chain. As the EV transition alters the emissions landscape, the share of supply chain-related emissions is set to grow. AS responds through material efficiency, increased recycled content, and deeper supplier engagement, making circularity a key lever in its decarbonisation roadmap. ENABLING ORGANISED END-OF-LIFE VEHICLE RECYCLING | MAHINDRA CERO Through Mahindra Cero, we are building a robust circular ecosystem for the automotive sector by enabling the' safe, structured dismantling of end-of-life vehicles. Our passenger vehicles exported to the EU are designed with 95% recyclable content, aligning with global standards. Cero ensures the recovery of critical materials, such as steel, that re-enter the supply chain as secondary raw materials, supporting our low-carbon manufacturing goals and reducing dependence on virgin extraction. At Mahindra, we are reframing waste as a resource, creating new value through innovation, material efficiency, and responsible resource use. Our approach aligns with the Planet Positive agenda and integrates circular thinking into product design and operational practices. We follow a structured waste hierarchy—prioritising resource optimisation at the source, followed by reuse, recycling, and safe recovery. Most of our manufacturing units operate under the Zero Waste to Landfill (ZWL) framework, where hazardous waste is systematically diverted to authorised recyclers and cement kilns for co-processing. In FY25, we generated approximately 11,011 tonnes of hazardous waste, of which 7,358 tonnes, accounting for 67% of total hazardous waste being successfully reused or recycled, significantly reducing our environmental footprint. Over 70% of global GHG emissions linked to material use and resource extraction have exceeded those of the entire 20th century in the last two decades, making the traditional linear model of "take-make-waste" no longer viable. Transitioning to a circular economy enables greater resilience, mitigates resource volatility, and opens new avenues for sustainable value creation. WE ARE ADVANCING THIS TRANSITION THROUGH A TWO-PRONGED STRATEGY: • Circular Business Models: Embedding recyclability, durability, and extended lifecycle into product design. • Circularity in Operations: Driving material recovery, waste minimisation, and resource efficiency across facilities. Integrated Annual Report 2024-25 | 58 WASTE MANAGEMENT AND CIRCULARITY
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