Climate Change Data

Mahindra CIE Automotive Limited

Climate Impact & Sustainability Data (2020, 2022)

Reporting Period: 2020

Environmental Metrics

Renewable Energy Share:30.28%

ESG Focus Areas

  • Safety and Health
  • Environmental Initiatives
  • Corporate Social Responsibility

Environmental Achievements

  • Reduced water consumption by 8% compared to CY2019
  • Reduced energy consumption by 15.89% compared to CY2019
  • Reduced waste generation by 48% compared to CY2019
  • Recycled about 25% of water for reuse
  • Reused about 19% of water for alternative applications
  • Installed rainwater harvesting at Urse plant, conserving 3.4% of fresh water consumption
  • Installed rooftop solar systems at seven plants
  • Consumed 30.28% of total energy consumption through green energy sources

Social Achievements

  • Implemented safety and hygiene protocols at all plants
  • Third-party audit of safety protocols
  • Five plants upgraded OHSMS certification to ISO 45001-2018
  • Organized Occupational Health Examination Camps and Periodic Health Check-ups
  • Specific efforts to support people affected by the Covid-19 pandemic
  • Financial assistance to MCCIA for setting up Jumbo Covid Centre in Pune
  • Contribution to PM-CARES fund

Governance Achievements

  • Continuous striving for excellence in Investor Relations
  • Structured conference calls and periodic investor/analyst interactions
  • Participation in several investors’ meets
  • All critical information uploaded on the Company’s website
  • Implemented a Vigil Mechanism through the Company’s Whistle Blower Policy
  • Implemented an Anti-Sexual Harassment Policy

Climate Goals & Targets

Environmental Challenges

  • Market demand remained sluggish at the start of 2020
  • Covid-19 pandemic impacted operations worldwide
  • Sudden ramp-up in demand created operational stress
  • Manpower shortages in India due to migrant workers returning home during lockdown
  • Supply chain disruptions due to steel and semiconductor shortages
  • Increasing fuel and steel costs
Mitigation Strategies
  • Initiated programs for cost reduction, cash protection, and reduction in Break-Even Point
  • Constituted a crisis management group at each plant
  • Implemented safety and hygiene protocols
  • Accelerated efforts to reduce the Break-Even level of Indian plants
  • Improved capacity utilization through reduced outsourcing and automation
  • Focused on diversifying the customer base and increasing exports
  • Restructured operations in Europe to align with reduced demand
  • Utilized government benefits programs in Europe

Supply Chain Management

Responsible Procurement
  • Suppliers Social Responsibility Commitment

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 45001-2018

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:1,83,706 Metric tonnes of CO2 equivalent (Scope 2)
Scope 1 Emissions:18,897 Metric tonnes of CO2 equivalent
Scope 2 Emissions:1,83,706 Metric tonnes of CO2 equivalent
Renewable Energy Share:51%
Total Energy Consumption:12,26,90,689.1 KWh (Non-Renewable)
Water Consumption:4,83,881 kilolitres
Waste Generated:98,840.88 metric tonnes
Carbon Intensity:50.03 MT /` Cr in FY2022

ESG Focus Areas

  • Energy conservation
  • Waste management
  • Occupational health and safety
  • Supplier relations
  • Employee well-being
  • Diversity, Equity and Inclusion
  • Circular economy
  • Green energy
  • Carbon neutrality

Environmental Achievements

  • Captive solar power plants with a capacity of 52.5 MW commissioned, resulting in approximately 51% renewable energy consumption in FY2022.
  • Significant improvement in overall safety and health performance in FY22.
  • 20 out of 25 plants certified under ISO-14001 standards; remaining plants have EMS in place.

Social Achievements

  • Rolled out career development programs for employees through Individual Development Action Plans (IDAPs).
  • Introduced coaching programs for employees.
  • Introduced the Panchratna award scheme for excellence and innovation.

Governance Achievements

  • Adopted Environmental, Social and Governance Policy (ESG Policy).
  • Implemented a Risk Control and Management Policy.
  • Established procedures to periodically place risk assessment and minimization procedures before the Board.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050 (aligned with CIE Automotive Group's target).
Medium-term Goals:
  • Achieve carbon neutrality by 2050 (aligned with CIE Automotive Group's target).
Short-term Goals:
  • All plants to achieve ISO 45001 and ISO 14001 certifications.

Environmental Challenges

  • Elevated raw material prices in India.
  • Sluggish two-wheeler and tractor segments in India.
  • Light vehicle production in Europe fell for the third straight year.
  • Unprecedented electricity prices in Europe due to the war in Ukraine.
  • Rapid transition to electric mobility in Europe.
  • Crankshafts at risk due to the transition to EVs in Europe.
Mitigation Strategies
  • Balancing order book requirements and investments in capacity in India.
  • Process reengineering, automation, and digitization in India.
  • Improving productivity and pruning costs in Europe.
  • Pain-sharing agreements with key customers in Europe.
  • Generating more EV-related orders and developing aluminum forgings for EVs in Europe.
  • Divesting the German truck forgings operations to focus on other businesses in Europe.
  • Producing aluminum forged parts and steel suspension products for cars in Europe.

Supply Chain Management

Responsible Procurement
  • Supplier’s ESG Commitment
  • CIE Vendor Registration Portal

Climate-Related Risks & Opportunities

Transition Risks
  • Transition to electric vehicles
Opportunities
  • Development of EV parts

Reporting Standards

Frameworks Used: BRSR

Certifications: ISO 14001, ISO 45001