Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Social Sustainability
• Community Welfare
• Environment

Environmental Achievements

• Switched over to PNG from furnace oil, a cleaner fuel at 4 plants.
• Started co-processing of hazardous wastes and water conservation project.
• Tree plantations, zero liquid discharge system, capability building program for HSE officers, and sessions on Environment Management basics.

Social Achievements

• Village Development Project (VDP) activities were conducted in 20 villages and 8 tandas near Aurangabad plants and one village near Pantnagar plant.
• Vocational Training Centre (ECovE) provided training to 420 candidates, with 379 graduating.
• Women’s Empowerment initiatives including monthly Women at Endurance (WAE) meetings.

Governance Achievements

• Implemented QCDDM (Quality, Cost, Delivery, Development, and Management) approach across operations.
• Established a vigil mechanism for Directors and employees to report concerns.
• Adopted a ‘Code of Conduct for Prevention of Insider Trading’ and a ‘Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information’.

Climate Goals & Targets

Environmental Challenges

• Auto industry downturn due to general economic slowdown.
• Outbreak and slow containment of COVID-19 pandemic.
• Volatility in commodity prices (aluminum and steel).
• Concentration of customers.
• Intensifying competition.
• Attracting and retaining talent.

Mitigation Strategies

• Diversification of products, customers, and geographies.
• Calculated reduction in fixed cost, variable cost, direct and indirect material cost and capital expenditure.
• Pass-on arrangement for price changes with OEM customers.
• Expanding customer base and adding new products to existing customers.
• Emphasis on technology, product quality, cost, and durability.
• Favorable work environment, attracting new talent and maintaining a low attrition rate through training and motivational programs.

Supply Chain Management

Responsible Procurement

• Code of Conduct for Suppliers, Service Providers and Contractors

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: National Voluntary Guidelines on Social, Environmental and Economic responsibilities of Business

Certifications: ISO 14001, OHSAS 18001, ISO/TS 16949:2009

Sustainable Products & Innovation

• Weight reduction of casting components
• Suspension components for two-wheelers
• Braking systems

Environmental Metrics

ESG Focus Areas

• Environment
• Health
• Safety
• Social
• Community Development

Environmental Achievements

• Shift towards renewable energy sources – solar & wind power
• Replacement of electric power and furnace oil in plants with natural gas and LPG
• Switch from painting to powder coating operations, to reduce hazardous waste generation
• Focus on achievement of zero waste to landfill
• Water recycling and rainwater harvesting
• Co-processing of hazardous waste

Social Achievements

• Set up a 81-bed Covid Care Centre at ICEEM College, Waluj, Aurangabad
• Organised awareness sessions on COVID Care in 14 villages
• Distributed more than 5,000 kits, containing food and other essential hygiene items, to needy villagers
• Distributed homeopathic medicines to more than 7,000 villagers and 4,500 employees / workmen
• Conducted online classes for our vocational training students
• Extended financial support of ` 10,000 per student to 62 students of Endurance Centre of Vocational Empowerment (ECoVE) during the period of lockdown

Governance Achievements

• Consolidation of foundry activities from two plants in Italy into one plant, enabling annual savings of €600,000
• Upgraded the long-term rating to AA+ with stable outlook

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact resulting in slowdown of economic activities, including on the automotive market, and the effects of the lockdown measures imposed in various countries
• Supply chain disruptions due to lockdown restrictions
• Raw material price volatility
• Concentration of customers
• Intensifying competition

Mitigation Strategies

• Pre-emptive cost optimisation initiatives
• Contracts with OEMs to pass on price increases
• Enlarging customer base and geographical expansion
• Strong foothold in existing product categories, superior quality, technological edge and competitive pricing
• High performance culture and employee development

Supply Chain Management

Responsible Procurement

• Code of Conduct for Suppliers, Service Providers and Contractors

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability
• Environment
• Safety

Environmental Achievements

• Creation of Carbon Sinks through tree plantation drives
• Switch from painting to powder coating operations, to reduce hazardous waste generation
• Shift towards renewable energy sources – solar & wind power
• Focus on achievement of zero waste to landfill
• Replacement of furnace oil in plants with natural gas, LPG
• Plugging of direct leakages to minimise air emissions
• Co-processing of hazardous wastes

Social Achievements

• Launched work-life balance initiative
• Launched family engagement initiative
• Focus on building a diverse and collaborative culture
• Initiatives for employee skill upgradation and training
• CSR programs in education, health and sanitation, livelihood generation, and environment

Governance Achievements

• Strengthened near-miss reporting mechanism
• Augmentation of work permit system
• Strengthened chemical handling and storage
• Improvement in material handling

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19 and Russia-Ukraine war
• Semiconductor chip shortage
• De-growth in the auto industry
• Rising international commodity prices
• High energy prices
• Inflationary cost pressures

Mitigation Strategies

• Strategic investments in boosting operational and cost efficiencies
• Innovating new products
• Building a profitable product mix
• Improving quality
• Augmenting technological and R&D base
• Targeted acquisitions
• Strategic sourcing through expanding the domestic vendor base
• Cost optimisation and value addition
• Indigenisation of certain imported material
• Long-term fixed price contracts with forwarders

Supply Chain Management

Supplier Audits: 45 audits in FY 2021-22

Responsible Procurement

• Code of Conduct for Suppliers, Service Providers and Contractors

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Weight reduction of casting components
• Suspension components
• Braking systems
• Transmission

Awards & Recognition

• Most Innovative, Disruptive and Transformational Company at Moneycontrol Pro’s Indian Family Business Awards for 2021

Environmental Metrics

ESG Focus Areas

• Environmental Impact (Climate, Energy, Waste)
• Environmental Impact (Air, Water)
• Customer Focus & Innovation
• Sustainable Supply Chain
• Health & Safety
• Labour Management
• CSR
• Employee Experience
• Diversity
• Human Rights
• Risk Management
• Information Security and Data Privacy

Environmental Achievements

• Increased carbon neutrality to 35% in FY 2023-24 (from 22.6% in FY 2022-23)
• Renewable energy in total energy increased to 12.9%
• Energy intensity reduced by ~7.42% in FY 2023-24 from FY 2022-23
• Scope 1 and Scope 2 GHG Emissions reduced by ~16.9% in FY 2023-24 from FY 2022-23
• Water intensity reduced by ~12.0% in FY 2023-24 from FY 2022-23
• Waste intensity reduced by ~5.1 % in FY 2023-24 from FY 2022-23

Social Achievements

• Implemented a 4C Human resource (HR) Strategy focused on Culture, Competence, Career and Connect
• Implemented a grievance redressal policy and mechanisms overseen by a dedicated Grievance Committee (GC)
• Implemented a variety of initiatives related to worker engagement, as well as learning and development
• Runs a Net Promoter Score survey and implemented an employee rewards and recognition program

Governance Achievements

• Robust risk management policy covering a wide variety of risks with requisite mechanisms for their assessment and mitigation
• Risk Management is overseen by the Risk Management Committee of the Board
• Board Familiarisation programs on progress on various aspects of the Company’s ESG strategy

Climate Goals & Targets

Environmental Challenges

• Globally, climate change risks are leading to regulations tightening, posing compliance headwinds
• Customers, investors, and other stakeholders are concerned with GHG emissions and climate impacts
• Poor waste management practices lead to compliance/regulatory risks as well as pollution, health risks, etc.
• Manufacturing operations could cause excessive air and water pollution
• Occupational health and safety incidents can impact satisfaction with working conditions and decrease employee morale
• Maintaining stable and harmonious labour relations is essential for business continuity and healthy stakeholder relationships
• Attrition and a disengaged workforce impact productivity and disrupt operational efficiency besides recruitment costs
• Violations of human rights in company operations or supply chains can lead to legal issues, fines, and employee discontent
• Enterprise risk management is an essential component of corporate governance to ensure resilience when faced with financial, and extra-financial risks
• Rising cyber threats endanger data privacy, risking sensitive information’s confidentiality

Mitigation Strategies

• Constituted an Energy Conservation team across all locations to drive improvements in energy conservation and GHG reduction
• Improving the Company’s renewable mix, cleaner fuels, and investments in energy-efficient equipment
• Aligned waste management practices with a focus on circularity
• Manufacturing units are compliant with the applicable environmental laws, regulations, and guidelines for air pollutants and water management
• Places paramount importance on fostering a secure and healthy work environment for all staff members
• Robust occupational health and safety management system is in place
• Robust policies and a governance framework that enables monitoring of compliances
• Focused 4C Human resource (HR) Strategy structured around the four pillars of Culture, Competence, Career and Connect
• Implemented software for ensuring adherence to the requisite compliances, supported by monitoring and audit protocols
• Robust Information Security Management System (“ISMS”) in place

Supply Chain Management

Supplier Audits: 80 suppliers audited for safety and work conditions

Responsible Procurement

• Supplier Code of Conduct
• Sustainability Index
• Capacity-building programs for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: NGRBC

Certifications: ISO 14001:2015, BS ISO 45001:2018, IATF 16949, ISO9001:20015, ISO 27001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Lightweighting
• Improving energy recovery
• Better vehicle safety

Awards & Recognition

• Not disclosed