Mahindra & Mahindra Limited | Integrated Annual Report 2025-26

73 RISE FOR A MORE EQUAL WORLD | ESG Strategy Energy Across the Group, Mahindra companies are leveraging climate action as a strategic opportunity — advancing the adoption of low-carbon technologies and transitioning supply chains towards more sustainable production pathways. These efforts support Mahindra’s ambition of carbon neutrality by 2040 while enabling businesses to decarbonise operations, manage energy costs and strengthen long-term competitiveness. Collectively, these initiatives contribute meaningfully to the Sustainable Development Goals and reinforce our Planet Positive vision. Enhancing Energy Productivity (EP) Beyond energy savings alone, improved energy productivity strengthens operational efficiency, enhances process reliability and helps reduce downtime and unplanned shutdowns. At Mahindra, we adopt a holistic approach to continuously improve energy productivity across our operations. Performance is tracked and reviewed through structured metrics, with energy productivity data monitored separately for the Automotive Sector (AS) and the Farm Equipment Sector (FES), enabling focused interventions and sector-specific improvements. The following is the EP data trend with respect to the baseline year (2008-09). Emissions Reduction & Energy Transition Mahindra Group has set a clear ambition to achieve carbon neutrality by 2040 and continues to strengthen its climate strategy through targeted emissions reduction actions across its businesses. Anchored in Science Based Targets, we are advancing the deployment of energy-efficient processes, expanding the use of renewable energy and leveraging digital solutions to support the shift towards a low-carbon operating model. These efforts span across both direct emissions from operations (Scope 1 & 2) and value chain emissions (Scope 3), reinforcing our commitment to a comprehensive and credible energy transition. Sustainability In Operations Environment KPI (for M&M Ltd.) Total Energy Consumption (GJ) GHG Emissions (Scope 1) (tCO₂) GHG Emissions (Scope 2) (tCO₂) GHG Emissions (Scope 1+2) (tCO₂) FY25 28,78,986 67,829 2,49,830 3,17,659 FY26 32,94,221 80,319 2,41,210 3,21,529 AS FES FY24 94% 87% FY25 120% 94% FY26 123% 118% We aim to reduce Scope 1 & Scope 2 emissions by 47% per equivalent product unit & Scope 3 emissions by 30% per sold product unit by 2033, relative to a 2018 baseline.

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