Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Environment
• Community
• Employee well-being
• Human Rights

Environmental Achievements

• Implemented rooftop solar panels in Noida plant, significantly reducing energy consumption.
• Energy facility in Neustadt, Germany, cools machines in summer and generates heat in winter.
• Initiatives for water conservation and harvesting, energy management, and climate protection.
• Introduced EcoMirror design, significantly reducing vehicle drag and CO2 emissions.
• Reduced water consumption by 95% in new wire plant using adiabatic cooling.

Social Achievements

• Organized regular internal online briefing meetings with staff to strengthen bonds and mental resilience.
• Distributed daily meals and supported local governmental initiatives in communities.
• Motherson facilities produced protective visors for medical personnel.
• Implemented Project Victory, a capital efficiency plan resulting in savings and improvements.
• Initiatives for employee engagement, quantified for assessment and further improvements.

Governance Achievements

• Established a Risk Management Committee (RMC) to review operating, financial, regulatory, and strategic risks.
• Implemented a Motherson-wide capital efficiency plan (Project Victory).
• Consolidated drawable commitments to enhance liquidity.
• Raised INR 10 billion (partially issued as NCDs) to enhance liquidity.
• Completed a strong capital investments program before the pandemic.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting customers and business.
• Negative growth in the automotive industry globally.
• Higher initial ramp-up costs at new Greenfields of SMP.
• Supply chain disruptions due to the pandemic.
• Economic slowdown impacting domestic automobile sales.

Mitigation Strategies

• Implemented measures to protect employee health and well-being.
• Maintained close contact with customers to support their restart schedules.
• Implemented cost rationalization, controlling non-critical investments and optimizing working capital.
• Worked with government employment protection schemes to safeguard jobs.
• Raised funds and worked with government support schemes to enhance liquidity.

Supply Chain Management

Responsible Procurement

• Compliance with Motherson's environment and occupational health and safety policies.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• EcoMirror
• Lightweight door panel structures reinforced with natural fibers
• Products using 50% renewable raw materials

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Installed solar-panel farms with a combined peak performance output of 4.1 MW.
• 86.500MWh of grid electricity supplied by renewable sources (approximately 10% of total consumption).
• 82% of waste generated is recycled.

Social Achievements

• Launched the Mothers, Sons & Daughters Programme in Brazil, reducing women's absenteeism by 28.5% after maternity leave.
• Produced protective visors, face masks, face shields, and ventilators to meet local demands during the COVID-19 pandemic.
• Developed an “intelligent reefer in a box” for temperature-controlled vaccine distribution.

Governance Achievements

• Established a Board Sustainability Committee that meets at least four times a year.
• No individual compensation incentives for the executive leadership team and extended group management.
• Bureau Veritas certification for MSSL, Noida, India.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting global health and the economy.
• Reducing the carbon footprint of products and operations.
• Managing the environmental impact of logistics.

Mitigation Strategies

• Implemented safety measures across facilities to protect employees during the pandemic.
• Exploring cleaner energy sources and reducing energy consumption.
• Implementing initiatives to reduce water consumption and production waste.
• Exploring alternative logistics solutions such as CNG and LPG powered trucks and electric forklifts.

Supply Chain Management

Responsible Procurement

• Responsible sourcing of materials; product subcomponents, packaging (ensuring recyclability wherever possible); inbound, inter-company and outbound logistics
• Supplier code of conduct

Climate-Related Risks & Opportunities

Opportunities

• Research, development, technology and open innovation for new solutions to create positive environmental impact.
• Industrial excellence and new business enterprise solutions.
• Solutions with natural and environmentally sustainable materials.
• Increased use of recycled and recyclable materials.
• Opportunities for alternative and renewable energy solutions.
• Value added solutions for electrification and new energy vehicles.

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: IATF16949, ISO 14001

Sustainable Products & Innovation

• Ecomirror design
• Parts using climate-positive thermoplastic materials from UBQ Materials

Awards & Recognition

• Two Startup Autobahn powered by Plug and Play Global Innovation Awards

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Installed solar-panel farms with a combined peak performance output of 4.1 MW.
• 86,500 MWh of grid electricity supplied by renewable sources (approximately 10% of total consumption).
• 82% of waste generated is recycled.

Social Achievements

• Launched the Mothers, Sons & Daughters Programme in Brazil, reducing women's absenteeism by 28.5% after maternity leave.
• Produced protective visors, face masks, and face shields to meet local demands during the COVID-19 pandemic.
• Developed an “intelligent reefer in a box” for temperature-controlled vaccine distribution.

Governance Achievements

• Established a Board Sustainability Committee and a Global Sustainability Development Team.
• No individual compensation incentives for the executive leadership team and extended group management.
• Actively involved in collecting data and drafting the Sustainability Report.

Climate Goals & Targets

Environmental Challenges

• Reducing the CO2 impact of products while maintaining passenger safety.
• Managing the environmental impact of its diverse product range.
• Addressing the challenges of the COVID-19 pandemic.

Mitigation Strategies

• Collaborating with customers and suppliers to reduce CO2 emissions.
• Implementing initiatives to reduce energy consumption and increase renewable energy use.
• Developing and implementing safety measures to protect employees during the pandemic.

Supply Chain Management

Responsible Procurement

• Responsible sourcing of materials; product subcomponents, packaging (ensuring recyclability wherever possible); inbound, inter-company and outbound logistics
• Implement Product Carbon Footprint (PCF) processes and awareness throughout the value chain.
• Improve energy efficiency use and promote use of renewable energy throughout the supply chain.
• Actively support the implementation of carbon offset initiatives in the value chain.
• Target to avoid the use of conflict minerals and removal of any SOCs from our product lines and processes throughout the value chain.

Climate-Related Risks & Opportunities

Opportunities

• Research, development, technology and open innovation for new solutions to create positive environmental impact.
• Industrial excellence and new business enterprise solutions.
• Solutions with natural and environmentally sustainable materials.
• Increased use of recycled and recyclable materials.
• Opportunities for alternative and renewable energy solutions.
• Value added solutions for electrification and new energy vehicles.

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: IATF16949, ISO 14001

Sustainable Products & Innovation

• Eco-mirror design
• Parts using UBQ Materials (climate-positive material)
• Printed electronics using conductive ink technology

Awards & Recognition

• Two Global Innovation Awards from Startup Autobahn powered by Plug and Play

Environmental Metrics

ESG Focus Areas

• Planet
• People
• Governance

Environmental Achievements

• Updated materiality assessment framework
• Qualifying for the Dow Jones Sustainability Index in the Emerging Markets category in 2021
• Setting an ambitious goal of becoming Carbon Net Zero across current global operations by 2040
• Implementing electricity-generation solutions such as solar panels at many global locations
• Investigating offsite Power Purchase Agreements (PPA) with verified renewable-energy certificates
• Many sites achieved ISO 50001 accreditation

Social Achievements

• Updated Supplier Code of Conduct to ensure compliance with human rights principles
• Proactively increasing the number of women participating in senior management leadership programmes
• Tracking data regarding internal recruiting, promotion and tenure to improve systems and strategies
• Developing initiatives to promote healthy lifestyles and well-being
• Partnering with local NGOs and organizing community-development programmes

Governance Achievements

• Updated materiality framework
• Aligning itself to rapidly developing international sustainability reporting standards
• Establishing a/f_f.shortiations with key external frameworks and third-party organizations
• Expanding internal auditing and own-assurance methodologies

Climate Goals & Targets

Environmental Challenges

• Chip shortages
• Geopolitical conflicts
• COVID-19 pandemic
• Supply chain disruptions
• Rising commodity costs
• Inflationary pressures
• Shortage of skilled workers
• Rising wages

Mitigation Strategies

• Cost structure improvements
• Operational e/f_f.shorticientcies
• Evaluating acquisition possibilities
• Flexibility and perseverance
• Developing alternative sourcing strategies
• Cost reduction initiatives
• Cost-e/f_f.shorticient automation
• Improving customer satisfaction
• Streamlining operations
• Footprint rationalisation
• Implementing energy-conservation initiatives
• Switching to renewable forms of energy
• Improving employee engagement
• Strengthening workforce through training and upskilling
• Implementing a range of tools and International Organisation for Standardisation (ISO) standards

Supply Chain Management

Responsible Procurement

• Updated Supplier Code of Conduct
• Supplier performance evaluation system enhanced to incorporate key aspects of sustainability

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Market disruptions
• Emerging regulations

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, UNGC, TCFD

Certifications: ISO 14001, ISO 50001, ISO 45001, IATF16949

Sustainable Products & Innovation

• EcoMirror
• Products containing recycled material
• Products with reduced carbon footprint
• Second-life products
• Ambient lighting solutions
• Brushless motors for EVs
• Full LED lighting module

Awards & Recognition

• Dow Jones Sustainability Index (Emerging Markets)
• CII best energy-conserving unit
• Government of India 'Most Energy E/f_f.shorticient Unit'
• Atmanirbhar Excellence Award

Environmental Metrics

ESG Focus Areas

• Planet
• People
• Governance

Environmental Achievements

• All MSWIL manufacturing facilities are ISO 14001-certified.
• Eight units use solar power, seven more will be equipped with solar panels.
• Three Chennai plants use wind power.
• Optimizing water consumption through conservation, wastewater treatment and reuse, and rainwater harvesting.
• Implemented PadCare initiative for recycling used sanitary pads.

Social Achievements

• All facilities are ISO 45001-certified (meeting global health and safety requirements).
• Regular safety awareness sessions and audits.
• Workshops to raise awareness and provide support for mental health.
• Continuous skill enhancement through training interventions.
• Annual Wiring Harness Skill Competition.
• Suggestion scheme, quality month celebrations, safety week celebrations, and quality circles.

Governance Achievements

• Established a dedicated sustainability team.
• Each facility has an Operational Health and Safety (OHS) representative.
• Regular interaction with stakeholders for materiality assessment.
• Robust governance system aligned with Motherson group’s sustainability goals.

Climate Goals & Targets

Environmental Challenges

• Rising prices of raw materials, especially copper.
• Pricing pressure from component suppliers.
• Escalated freight costs.
• Supply chain disruptions.

Mitigation Strategies

• Pass-through arrangement with customers to address rising raw material prices.
• Effective inventory management.
• Continuous discussions with customers to mitigate cost escalations.
• Enhancing internal efficiency and optimizing operations.
• Working on localization and alternate sourcing of parts.

Supply Chain Management

Supplier Audits: 95%

Responsible Procurement

• Sourcing large portion of raw materials and components from Samvardhana Motherson International Limited; sourcing from global suppliers including Sumitomo Wiring Systems Limited.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, BRSR

Certifications: ISO 14001, ISO 45001

Sustainable Products & Innovation

• EV ECO-SYSTEM
• Eco-friendly energy generation
• High value power distribution products
• Power electronics solutions for HEV, EV and ZEV vehicles

Environmental Metrics

ESG Focus Areas

• Planet (Environment)
• People (Social)
• Governance

Environmental Achievements

• Reduced energy intensity by 6% compared to FY 2022-23
• Reduced water consumption intensity by 22% year-on-year
• 20% of manufacturing sites are now ISO 50001 certified (up from 2% last year)

Social Achievements

• Launched a Female Mentorship Programme
• Reduced voluntary employee turnover rate from 41% to 31%
• Established a Motherson group Diversity, Equity, and Inclusion development team

Governance Achievements

• Re-assessed materiality framework
• Achieved ‘advanced level’ status in Communication on Progress (COP) submitted to the UNGC
• Commenced data assurance processes, including external partners

Climate Goals & Targets

Environmental Challenges

• Inflationary pressures on manpower costs
• Supply chain disruptions due to geopolitical conflicts
• Wage inflation
• Commodity price increases
• Scope 3 emissions

Mitigation Strategies

• Improved operational efficiencies and working capital optimization
• Diversified approach to location, product, and customer base
• Close collaboration with customers to address inflationary cost increases
• Implementing water preservation initiatives
• Energy management practices, including increased renewable energy use
• Waste reduction initiatives
• Enhanced data collection, analysis, and reporting on Scope 3 emissions
• Collaboration with suppliers and customers to reduce Scope 3 emissions

Supply Chain Management

Supplier Audits: More than 3,600 suppliers assessed for supply chain sustainability risks using EcoVadis

Responsible Procurement

• Supplier code of conduct
• Supplier sustainability requirements
• EcoVadis rating system

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of extreme weather events

Transition Risks

• Disruptions in the market and emerging regulations
• Failure to meet stakeholder expectations with respect to industry transition

Opportunities

• Pro-activity as a sustainable solution provider enabling growth
• Potential competitive advantage
• Resource efficiency driving cost reductions

Reporting Standards

Frameworks Used: GRI, UNGC, TCFD

Certifications: ISO 14001, ISO 50001, ISO/IEC 17025:2017

Third-party Assurance: M/s Thakur Vaidyanath Aiyar & Co.

Sustainable Products & Innovation

• EcoMirror
• Recycled materials in products
• Products with reduced carbon footprint

Awards & Recognition

• Numerous awards and recognitions from various OEMs and industry bodies (listed in Chapter 11)