Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• In-house built BLDC fans installed in manufacturing lines and other facility service areas, saving 460 KWh/month
• CFL light changed to LED light, saving 480 kWh/month
• Uses green energy (wind power) at a tariff less than Tamil Nadu Electricity Board
• 100% of waste materials are being given to identified recycle suppliers

Social Achievements

• Cancer awareness project reaching 20 million people and a donation of ₹30,00,000
• Multiple Sclerosis patient healthcare supporting 20 beneficiaries and a donation of ₹5,00,000
• Support for MEPZ Manufacturers Association for maintaining Health Centre Facilities with a contribution of ₹10,00,000
• Assistance in providing health and hygiene in government hospitals with a donation of ₹5,00,000
• Donation of ₹98,00,000 to the Prime Minister’s National Relief Fund (PMNRF)

Governance Achievements

• Complied with the provisions set out on Corporate Governance Practices required under Listing Regulations
• Established a Vigil Mechanism to report concerns about unethical behavior, actual or suspected fraud or violation of code of conduct policy

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on supply chain, capacity underutilisation, logistics-related issues, and employee health and safety
• Commodity bull run, logistical challenges, and shortage of electronic parts
• Global trade relationships and realignment, slowdown in global markets due to economic and political factors/pandemic-related disruptions
• Electrification & autonomous cars, changes in consumer preferences, changes in product technologies
• New entrants and competition from existing players, geographical localisation of facilities, pricing pressure from customers, customer and geographical concentration
• Stringent quality requirements with new performance specifications, supply chain security, manufacturing automation, capital expenditure and capacity, skilled human resources
• Financial stability, liquidity and capital access, foreign exchange fluctuation, commodity price movements, product liability and warranty
• Cyber-attacks, complying with regulatory and customer requirements on environment & global sustainability policies
• Disruption of business operations due to COVID-19 pandemic/natural calamities

Mitigation Strategies

• Management Task Force to manage business supply chain issues, operations, employee health & safety, and regulatory compliances
• Effective and timely communication to key stakeholders for overcoming COVID-19 challenges
• Diversification of products and markets, strengthening customer relationships, exploring possibilities for non-organic growth and strategic alliances
• Expanding bandwidth of products for Electric Vehicles and improving performance of existing products for autonomous cars, constantly upgrading technology of existing products for enhanced application requirements, expanding the Energy-Efficient BLDC Motors portfolio
• Improve co-operation with customers by offering multiple value propositions on products and services, real-time monitoring of logistics pipeline and global warehouses to ensure Just-In-Time availability to customers at all locations, continuous cost-competitive actions across value-stream and offer higher performance products to remain preferred supplier to customers, new customers and new geographies to be pursued in the business mix regularly
• Upgradation of Design Capability, Validation, FMEA & Testing Capability to meet new standards including collaboration for System Level Validation, strengthen relationships with key supply-chain partners and focus strongly on in-house manufacturing where capacities and capabilities are available, increase cluster automation and robotics on manufacturing lines with minimal investment under PRISM project, flexible higher capacities to use same line for multiple products and multiskilling of human resources
• Maintain low levels of leverage and continuous dialogues with financial institutions, entering into forward contracts in line with the hedging policy which is monitored by the Audit Committee on a regular basis, arrangement of pass-through mechanisms for commodity price movements, optimal coverage of liability insurance in line with industry practices and customer requirements
• Internal Control Measures taken to protect networks, computers, programs, and data, Cyber Security Threat audits by external experts at regular intervals, continued reinforcement of stringent security policies and procedures, implementation of Advanced Firewalls and Anti-virus software
• Planned wellness programs for all employees, ensuring work safety practices with periodic audits, management task force managed business supply chain issues, operations, employee health & safety, regulatory compliances minimising disruption impact, natural calamity financial risks have been mitigated using property & business insurance, adoption of procedures for any natural calamity/pandemic-like situations

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Electric DC Micro Motors
• Stamping and Motor Components
• PCB

Environmental Metrics

ESG Focus Areas

• Energy Efficiency
• Water Conservation
• Legal Compliance
• Occupational Safety and Health
• Emission Management
• Waste Management
• Women's Empowerment
• Supplier Sustainability
• Human Rights

Environmental Achievements

• Procurement of 64.17% renewable electricity from wind power in FY22-23
• Replacement of 725 CFLs with LEDs, saving 88,760 kW-hr and reducing CO2 emissions by 63.02 tons
• 15% reduction in non-renewable energy consumption target by FY2025
• Installation of in-house Solar PV system generating 400 kWhr/day by FY2030
• 30% (Scope 1 + Scope 2) emission reduction by FY2030
• 15% (Scope 3) emission reduction by FY2030
• Net Zero target by CY 2070

Social Achievements

• 100% of permanent employees covered by health and accident insurance
• 100% of permanent workers covered by health and accident insurance
• Mandatory ESG trainings for permanent employees starting November 2022
• Increase in the number of women in managerial positions to 25% by 2030 (from 17% in 2022)
• Cover 50% of value chain partners under ESG Indicators by FY 2025
• Zero Fatality target
• Increase in total training hours per annum
• 100% coverage of reskill/upskill employee with future fit skills

Governance Achievements

• Risk & ESG Management Committee established for monitoring sustainability programs
• Policies on Anti-Corruption, Anti-Bribery, Code of Conduct, and Related Party Transactions

Climate Goals & Targets

Environmental Challenges

• Scarcity of electrical power
• Scarcity of water
• Increasing energy costs
• Occupational Safety and Health risks
• Natural calamities
• Fire risks
• Emission management
• Disposal of hazardous waste chemicals
• Emerging technology competition

Mitigation Strategies

• Optimized energy consumption and energy efficiency enhancements
• Installation of solar panels, solar water heaters, and LEDs
• Use of BLDC fan motors
• Water conservation practices (auto cut-off valves, rainwater harvesting)
• Monthly review/discussions and legal compliance monitoring
• Frequent safety audits, awareness sessions, and toolbox talks
• Company-wide Occupational Health and Safety SOP
• Contingency plans for natural calamities
• Firefighting systems, smoke detectors, and fire alarm systems
• Initiatives for emission reduction
• Engagement with supply chain partners for Scope 3 emissions analysis
• Innovation practices to eliminate hazardous chemicals
• Disposal of hazardous waste through authorized vendors
• Technology support and updates from key suppliers
• R&D for design innovation and energy consumption reduction

Supply Chain Management

Supplier Audits: 32% of key raw material suppliers assessed on EHS and Human Rights parameters

Responsible Procurement

• Supplier Code of Conduct
• ROHS compliance for sustainable sourcing

Climate-Related Risks & Opportunities

Physical Risks

• Natural calamities

Transition Risks

• Increasing energy costs

Opportunities

• Renewable energy procurement

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001-2015 (4 plants), TS16949 (all MEPZ-SEZ plants), ISO 9001 (domestic plant)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• BLDC motors (reduced energy consumption and material usage)
• New packaging for DC motors (reduced carton usage)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 15% reduction in non-renewable energy consumption in total energy mix by FY2025.
• Installation of in-house Solar PV system capable of generating 400 kWhr/day of energy by FY2030.
• 30% (Scope 1 + Scope 2) emission reduction by FY2030.
• 15% (Scope 3) emission reduction by FY2030.
• Procurement of 64.00% renewable electricity from private renewable energy (wind power) supplier in FY 23-24.
• Installed in-house 400 KW capacity solar power system - completed in March 2024
• Increased power factor from 0.95 to 0.99 in 4 SEZ units for a savings of 191 MWhr from April 2023
• Annually 1.4 Ton of poly film waste was reduced in Ware house operation - 3% plastic scrap reduction in August 2023
• Savings on steel coil cutting scrap in Deep Drawn operation 5.88% / part - 2% waste reduced in steel scrap in October 2023

Social Achievements

• Increase in the number of women in managerial position to 25% by 2030 (vs 17% in 2022).
• Cover 50% of value chain partners under ESG Indicators by FY2025.
• Strive to maintain status of Zero Fatality.
• Increase in the total training hours per annum.
• 100% coverage of reskill / upskill employee with future fit skills (e.g. ESG related topics).
• 84% (1830 out of 2,179) of employees (Including Associates) are covered by skill upgrade training

Governance Achievements

• Risk Management & ESG Committee is responsible for monitoring the implementation and decisions to be taken on sustainability programs.

Climate Goals & Targets

Environmental Challenges

• Scarcity of electrical power
• Scarcity of water
• Increasing energy costs associated with adoption of new and efficient technologies.
• Resource depletion and unavailability of water during specific time period can adversely hamper operations.
• Occupational Safety and Health
• Natural calamity
• Fire Risk
• Emission Management
• Disposal of hazardous waste chemicals
• Emerging technology

Mitigation Strategies

• Optimized energy consumption and commitment to enhance the energy efficiency
• Installation of Solar panels, Solar Water heaters and LEDs at various locations for efficient energy management.
• Use of BLDC fan motor capable of reducing ~50% of energy consumption per motor.
• Record maintenance of spends associated with energy improvement initiatives.
• Installation of energy meter in facility to monitor the energy consumption.
• Energy Audit has been conducted and actions to be taken based on priority/feasibility and allocated budget.
• Water conservation practices like auto cut-off valves, use of Rain water etc are being undertaken in our facilities.
• The water is discharged to common sewage treatment plant which is owned and operated by MEPZ. The treated water is reused for gardening purpose by MEPZ.
• Monthly review / discussions are conducted along with regular monitoring of legal compliance with the support of Compliance Dash Board software tool.
• Frequent safety audit, awareness sessions and tool box talk are conducted to maintain safe and healthy working conditions.
• Implementing training of all employees and associates on safe working practices.
• Implementation of a Company- wide robust Occupational Health and Safety SOP
• Contingency plan in place in-case of occurrence of Natural calamity.
• Dedicated ERT members who are trained to handle such type of calamities
• Firefighting system, Smoke detector and fire alarm system in place to detect and alert for risk associated with fire.
• Extending training to all employees and associates on safe working practices
• Focusing on various initiatives for reduction of emissions as a result of our direct operation.
• Positive Engagement with supply chain partners for analyzing Scope-3 emissions.
• More than 50% of electricity is being consumed from Wind Energy (green electricity) causing reduction in GHG emissions
• Various innovation practices are being undertaken to eliminate the use of hazardous chemicals in our products with the support of stakeholders (Customers/ Suppliers).
• Hazardous waste such as oil-soaked waste, epoxy powder waste, gel & varnish are co- processed in cement kilns through authorized TN State Pollution Control Board approved vendor.
• Other hazardous waste like bio- medical waste, e-waste, waste oil, spent solvent and empty chemical container are disposed through TN State Pollution Control Board approved dismantler.
• Latest technology support and updates from key suppliers to develop the motors and components in competitive market field.
• The R&D team working on design innovation for overall reduction in energy consumption and packaging material of our products

Supply Chain Management

Supplier Audits: 34%

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Natural calamity

Transition Risks

• Increasing energy costs

Opportunities

• Scarcity of electrical power
• Emerging technology

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001-2015, TS16949, ISO 9001, BIS

Third-party Assurance: Not Applicable

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• BLDC motors

Awards & Recognition

• Not disclosed