Climate Change Data

MAHINDRA AND MAHINDRA FINANCIAL SERVICES LIMITED (MMFSL)

Climate Impact & Sustainability Data (2020-04 to 2021-03, 2023)

Reporting Period: 2020-04 to 2021-03

Environmental Metrics

Total Carbon Emissions:1,523.33 tCO2e (Scope 1) + 13,858.73 tCO2e (Scope 2) + 13,051.28 tCO2e (Scope 3) = 38433.34 tCO2e/year
Scope 1 Emissions:1,523.33 tCO2e/year
Scope 2 Emissions:13,858.73 tCO2e/year
Scope 3 Emissions:13,051.28 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:83,997 GJ/year
Water Consumption:1,12,642 KL/year
Waste Generated:5.75 tons/year
Carbon Intensity:0.65 tonnes of CO2eq per employee in 2020-21

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Reduced CO2 emissions per employee (Scope 1 + 2) from 0.86 tonnes of CO2eq per employee in 2019-20 to 0.65 tonnes in 2020-21
  • Planted 30,160 saplings across India
  • Financed 2,993 EVs with a total financing value of Rs. 41.62 crores
  • Avoided 784.62 tonnes of CO2 through automation of conveyance claims and use of Slate app

Social Achievements

  • Launched flagship program 'SWABHIMAAN' for driver community welfare impacting 51,763 lives
  • Launched M-WOW (Mahindra World of Women) – an affinity group for women
  • Introduced a mandatory e-learning module on human rights with 78% employee coverage
  • Ranked 25th among India’s Best Companies to Work 2020 by Great Place to Work® Institute

Governance Achievements

  • Included in the FTSE4Good Index Series
  • Included in DJSI Sustainability Yearbook 2021
  • Attained performance band B in the Carbon Disclosure Project Assessment

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2040
Medium-term Goals:
  • Achieve carbon neutrality
  • Increase financing of electric vehicles to 50% market share
Short-term Goals:
  • Maintain declining trend in CO2 emissions per employee
  • Increase plantation with focus on survival rate
  • Increase digital collections
  • Maintain employee engagement scores above 4.45 for MMFSL, 4.40 for MRHFL, and 4.45 for MIBL
  • Increase training coverage above 70% for MMFSL, maintain 85% for MRHFL and MIBL
  • Increase beneficiaries for driver flagship program

Environmental Challenges

  • COVID-19 pandemic impacting business operations and customer finances
  • Subdued demand for new and used automobiles
  • Slowdown in SME lending due to weak economic environment
Mitigation Strategies
  • Extended moratorium benefits to eligible borrowers
  • Suspended repossession of assets
  • Launched new products and provided healthcare support
  • Successfully raised funds through Rights Issue
  • Improved digital collections during lockdown
  • Established a Digital FinCo for small ticket loans
  • Prioritized asset quality and took aggressive stand on bad debt provisioning

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Preference to local suppliers
  • Vendor and Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Impact of weather patterns on loan recovery
Transition Risks
  • Regulatory changes, market shifts
Opportunities
  • Financing of electric vehicles

Reporting Standards

Frameworks Used: GRI Standards: Core option, IIRC’s Integrated reporting framework, UN-SDGs, UNGC, NVG-SEE

Certifications: Null

Third-party Assurance: KPMG

UN Sustainable Development Goals

  • 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 15, 16, 17

Various initiatives contribute to these goals as detailed in the SDG Mapping section of the report.

Sustainable Products & Innovation

  • Electric vehicle financing

Awards & Recognition

  • DJSI Sustainability Yearbook 2021
  • FTSE4Good Index Series
  • Futurescape Responsible Business Rankings
  • CDP Performance Band B
  • Mahindra Group Sustainability Performance Award 2020

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:18076.88 tCO2e/year
Scope 1 Emissions:2,008.10 tCO2e/year
Scope 2 Emissions:16,038.78 tCO2e/year
Scope 3 Emissions:15,625.54 tCO2e/year
Total Energy Consumption:112462.32 GJ/year
Water Consumption:233559 KL/year
Waste Generated:77.01 tons/year
Carbon Intensity:0.69 Tones Co2e/ Employee

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Maintaining declining trend in CO2 emissions per employee (tons of CO2eq) per employee
  • Increase the tree plantation with focus on survival rate
  • Financing M&M Electric vehicles
  • Recycled 17+ tones of paper and 59+ tones of e-waste through Government registered recyclers.
  • Installation of higher efficiency air conditioners resulting in a total of 9,58,638 kWh electricity being saved
  • Replaced conventional fans with efficient BLDC fans at 19 branches.

Social Achievements

  • Implemented several initiatives and programme to enhance employee skills and competencies
  • Various initiatives for employee well-being

Governance Achievements

  • Signed up for the UNGC principles
  • Submitted targets to SBTi for validation

Climate Goals & Targets

Long-term Goals:
  • Carbon neutral in the near future

Environmental Challenges

  • Climate change impacts on business and communities
  • Credit ratings
Mitigation Strategies
  • Conservative capital structures policies to ensure adequate capitalization
  • Targets on maintaining declining trend in CO2 emissions per employee, increasing tree plantation, and financing M&M electric vehicles

Supply Chain Management

Responsible Procurement
  • Preference to local suppliers
  • Revised supplier’s code of conduct requiring self-declaration of compliance with human rights and environmental regulations

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, IIRC framework, UNGC Principles, NGRBC

Certifications: ISO 27001

Third-party Assurance: Bureau Veritas