STATUTORY REPORTS | Business Responsibility and Sustainability Report 253 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 Corporate Social Responsibility (‘CSR’) 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 the locations of the Company. The flagship CSR Initiatives undertaken by the Company focus on Empowering Girls through education, Empower Women through skills training, Support women by strengthening maternity and newborn healthcare and environment conservation. These align to the UN SDG Goals and CSR Framework laid down by the Government and the Company’s ESG goals. NA Positive Impact: 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. Empowering Girls Initiative is enabling holistic development by integrating curricular and extracurricular activities in schools, helping girls transition more seamlessly from school to higher education and employment opportunities. 2. W omens Economic Empowerment has created possibilities for women to have access to opportunities to enhance their socio-economic status through employability and career readiness. This initiative also supports women farmers to enhance their livelihoods by adapting regenerative agricultural practices. 3. Jal Samriddhi (Water Conservation) efforts have contributed to water security, biodiversity, improved soil and agri-practices resulting in irrigation and water conservation. 4. Maternity and newborn care Initiative will open avenues to quality health care and treatment for needy patients 7 Health & Safety R Health and safety lapses can result in injury, legal issues, and production losses. Ensuring workforce well-being is vital for sustainable business operations. The Company has instituted robust health and safety systems that include frequent training, regular audits, and proactive risk assessments to create a strong safety culture and prevent incidents across sites. Positive Impact: While there are costs associated with maintaining high safety standards, these measures significantly reduce the financial and reputational impact of workplace incidents, regulatory actions, or downtime. 8 Sustainable Supply Chain R The supply chain poses ESG risks due to its complexity, dependency on critical materials, and increasing scrutiny from stakeholders. Any disruptions or lack of traceability can result in reputational and operational risks. The Company has embedded ESG due diligence across its supply base as a core element of its supplier governance and risk management framework. Supplier risks, including ESG, health and safety, labour, and operational risks, are systematically identified and monitored through screening and periodic third-party assessments and audits. To support long-term supplier transition, the Company implements a Supplier Business Capability Building (SBCB) Programme. The Company continues to strengthen supply chain resilience through local sourcing and supplier diversification strategies. Positive Impact: While implementing responsible sourcing and supplier capacity-building increases near-term costs, these measures are expected to reduce exposure to long-term disruptions, supply shortages, and reputational risks, thereby ensuring stable margins.
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