Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Performance
• Social Performance

Environmental Achievements

• Reduced overall energy intensity by 7% compared to FY 2015-16.
• Conserved 16,633 GJ of energy.
• Utilized 17% of overall energy consumption from renewable sources.
• Reduced overall water consumption by 2% compared to FY 2015-16.
• Reduced specific water consumption by 11% compared to FY 2015-16.
• Planted 22,590 trees and saplings with a 94% survival rate.
• Reduced ED paint consumption by 24,000 kg.
• Reduced carbon footprint through various initiatives (details in report).

Social Achievements

• Launched the Road to School program, benefiting 15,155 students.
• Implemented the Blessing Scheme (Ashirwaad Yojana) in collaboration with the Government of Uttarakhand and NTTF, creating employment opportunities.
• Improved overall sales satisfaction index to 794 and service satisfaction index to 699.
• Implemented various initiatives to enhance employee well-being and engagement (details in report).

Governance Achievements

• Established a robust Enterprise Risk Management (ERM) framework.
• Complied with all applicable environmental laws and regulations.
• Implemented a Vigil Mechanism/Whistle Blower Policy.
• Maintained a harmonious Industrial Relations (IR) climate.

Climate Goals & Targets

Environmental Challenges

• Difficult global economic scenario with policy uncertainties, lower investments, and stagnated global trade.
• Demonetisation and implementation of BS IV emission norms dampening effects on the market.
• Water demand across operations.
• Managing air emissions within permissible limits.
• Effective waste management.
• High attrition among technicians.

Mitigation Strategies

• Proactive measures in product and market areas.
• Rainwater harvesting, water recycling, and reuse of treated wastewater.
• Implementing cleaner technologies and treatment of emissions.
• Reducing, recycling, and disposing of waste in an environmentally friendly manner.
• Samriddhi incentive program for dealer technicians.
• Various initiatives to improve employee well-being and engagement.

Supply Chain Management

Responsible Procurement

• Supplier selection policy
• New supplier audits
• Regular surveillance audits
• 98% by value of materials used in manufacturing plants sourced locally

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G4 Guidelines ('In accordance' - Core option), National Voluntary Guidelines on Social, Environmental and Economic (NVG-SEE) responsibilities of business in India, Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 on “Business Responsibility Reporting” (BRR)

Certifications: ISO 27001:2013

Third-party Assurance: DNV GL Business Assurance India Private Limited

Sustainable Products & Innovation

• Circuit Series electric bus
• iEGR (intelligent Exhaust Gas Recirculation) engines
• DOST waste collection vehicles

Awards & Recognition

• Deming Prize for Pantnagar manufacturing facility
• 'Front Runner Award in Sustainability 4.0 Awards - 2017' for Bhandara unit

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social

Environmental Achievements

• Enhanced energy and water efficiency in manufacturing processes
• Rejuvenation of 7 lakes and planting of 83,000 saplings
• Reduction of wood in Bhandara unit to zero tonnes
• Specific water consumption reduction from 9.07 to 8.47 KL/HECU in Ennore
• Specific water consumption reduction by 12% and absolute water consumption reduced by 18% in Bhandara
• Specific water footprint reduction by 25% in Pantnagar
• Achieved 'Water Positive' status by DNV-GL

Social Achievements

• Launched 'Road to School' program benefiting over 30,000 children in 300+ schools
• Introduced gamification in campus hiring
• Implemented various initiatives to enhance diversity and inclusion in the workforce
• Established an effective grievance redressal mechanism
• Implemented Gemba Plus initiative to empower employees
• Launched AL University for employee learning and development
• Launched 'Saksham' initiative for community development in Bhandara, Alwar, and Vijayawada

Governance Achievements

• Established clear lines of accountability in the Company’s management system
• Instituted various Board committees with explicit charters
• Adopted an Enterprise Risk Management (ERM) framework
• Implemented a robust internal control system
• Implemented various policies to ensure good governance and workplace ethics

Climate Goals & Targets

Environmental Challenges

• Increased energy consumption and absolute emissions due to increased production volumes and lack of sufficient wind power
• Complex supply chains and changing demand for raw materials due to electro mobility
• Water scarcity in some operational areas
• Counterfeit products in the aftermarket space

Mitigation Strategies

• Implementing energy optimization in production to lower emissions
• Amplifying the use of renewable energy and deploying energy-efficient technologies
• Working closely with suppliers to ensure compliance with sustainability standards
• Supporting suppliers in meeting standards and building capabilities
• Revamping packaging for Ashok Leyland genuine parts to protect against counterfeiting

Supply Chain Management

Supplier Audits: 250 suppliers evaluated

Responsible Procurement

• Code of conduct requirements
• Risk-based approach to assessing suppliers
• Support for local suppliers
• General purchase agreement with sustainability parameters
• Supplier evaluation check sheet
• PDCA cycle to ensure compliance

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and electric vehicles

Reporting Standards

Frameworks Used: GRI Standards, 2016 Core option, National Voluntary Guidelines on Social, Environmental and Economic (NVG-SEE) Responsibilities of Businesses in India

Certifications: ISO 14001

Third-party Assurance: DNV GL Business Assurance India Private Limited

Sustainable Products & Innovation

• Electric buses
• Euro VI compliant LCVs and ICVs
• Electric vehicles with battery swap technology and fast charging
• Vehicles with improved fuel efficiency and lower emissions

Awards & Recognition

• Golden Peacock Award for Sustainability
• Golden Peacock Award for Risk Management

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• 13,174 tCO2e of carbon dioxide sequestered through Miyawaki afforestation.
• Launched CNG buses and trucks under Project Vayu to reduce emissions.
• Supported Bhutan's commitment to remain carbon negative by providing BS-VI compliant vehicles.
• Achieved zero liquid discharge at all manufacturing plant locations and the technical center.
• Achieved zero waste to landfill status in seven out of nine manufacturing plants.
• Improved renewable energy share to 71%.

Social Achievements

• Road to School initiative benefitted nearly 100,000 children.
• Jal Jeevan water initiative benefitted 9,475 people.
• Supported community through relief work during the third COVID-19 wave.
• Opened Quality Academy and Electronics Academy to enhance employee technical capabilities.
• Organized ‘Learning Champions League’ to encourage executive learning.
• Implemented Young Talent Programme for high-potential employees.
• Achieved zero fatalities in operations.

Governance Achievements

• Established Board-level ESG Committee.
• Implemented robust Enterprise Risk Management (ERM) Framework.
• Implemented various policies to ensure compliance with regulatory and legal norms.
• Information security management system is ISO 27001 certified.

Climate Goals & Targets

Environmental Challenges

• Stringent vehicular emission norms.
• Fluctuating fuel prices.
• Energy requirements through fuels and electricity.
• Dependency on natural resources and water.
• Supply chain disruptions (implied).

Mitigation Strategies

• Energy conservation initiatives (detailed in report).
• Product innovation to mitigate climate change risk.
• Dual-sourcing strategy for raw materials and parts.
• Local sourcing across three manufacturing plants.
• Digitised supply chain management.

Supply Chain Management

Supplier Audits: 158 supplier audits completed; 193 surveillance audits completed.

Responsible Procurement

• Environmental and social criteria prioritized in sourcing.
• Supplier Code of Conduct.
• Supplier Quality Manual.
• Dual-sourcing strategy.
• Local sourcing.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, National Voluntary Guidelines on Social, Environmental, and Economic (NVG-SEE) Responsibilities of Businesses, United Nations Sustainable Development Goals (SDGs), Business Responsibility and Sustainability Report (BRSR) disclosures

Certifications: ISO 14001:2015 (EMS), ISO 45001:2018, ISO 27001

Third-party Assurance: DNV Business Assurance India Private Limited

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 8
• SDG 9
• SDG 11
• SDG 13
• SDG 14
• SDG 15
• SDG 17

Initiatives contribute to goals related to health, education, gender equality, economic growth, infrastructure, climate action, and partnerships.

Sustainable Products & Innovation

• CNG and Hybrid powertrain vehicles.
• Electric buses (eBus).
• AVTR 4120 truck.
• AVTR 2620 truck.
• Ecomet 1415 and 1615 trucks.

Awards & Recognition

• 15 CII EHS Excellence Awards
• INFHRA Excellence Award
• Merit Award in Symposium on Robotics and Automation
• People First HR Excellence Awards (2)
• TISS Leap Vault CLO Award (Gold)
• FCCI Road Safety Award
• IAQ’s International Level Quality Sustainability Award 2022
• ISQ’s National Level Quality Sustainability Award 2022
• Two CII’s National Level Six Sigma Awards

Environmental Metrics

ESG Focus Areas

• Carbon neutrality
• Water positivity
• Resource efficiency
• Diversity, equity and inclusion
• Community development
• Health and Labour safety
• Fair labor practices
• Board independence and practices
• Compliance
• Disclosures

Environmental Achievements

• Reduced Scope 1 emissions by 41.5% through carbon sequestration
• Abated emissions through renewable energy consumption, resulting in an 83,780-ton carbon emissions reduction
• Achieved net water positivity across plant locations
• Established Zero waste to landfill by co-processing hazardous waste and reconditioning 4,194 engines

Social Achievements

• Launched ‘Parivartan’ campaign to encourage women to enter the heavy vehicle driving field
• Established all-women production lines at Hosur and Pantnagar plants
• Road to School programme benefitted over 114,000 children
• Road to Livelihood programme benefitted over 36,000 students

Governance Achievements

• Released first Business Responsibility and Sustainability Report (BRSR)
• ESG Risk rating by Sustainalytics stands at 14.5 (low risk)

Climate Goals & Targets

Environmental Challenges

• Increasing Greenhouse Gas Emissions from energy-intensive processes and supply chain
• Reputational damage due to climate change awareness
• Implications of carbon tax
• Costs of compliance with existing and emerging regulations
• Availability of water, particularly in water-stressed areas
• Pollution of water resources by improper wastewater treatment

Mitigation Strategies

• Investment in renewable energy sources (solar, wind)
• Improved energy management and efficiency
• Water conservation initiatives (rainwater harvesting, recycling)
• Waste reduction and responsible disposal practices
• Implementation of robust ESG policies and programs

Supply Chain Management

Supplier Audits: 75 4M audits; 141 supplier system audits; 10 audits for new suppliers

Responsible Procurement

• Supplier screening for environmental and social parameters
• Inclusion of social and environmental clauses in General Purchase Agreement (GPA)
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and alternative fuel vehicles

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, National Guidelines on Responsible Business Conduct (NGRBC), National Voluntary Guidelines on Social, Environmental, and Economic (NVG-SEE), United Nations Sustainable Development Goals (UN-SDGs), Business Responsibility and Sustainability Report (BRSR)

Certifications: ISO 45001, ISO 14001, TS16949, LEED v4.1 Platinum (Corporate Office)

Third-party Assurance: DNV Business Assurance India Private Limited

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• AVTR UF3522 (LNG-fueled truck)
• Electric buses and light commercial vehicles
• Hydrogen fuel cell electric bus
• CNG, Biofuel, and Hydrogen vehicles

Awards & Recognition

• 13 CII EHS Excellence Awards
• CII-ITC Sustainability Award
• Best CSR Initiative award from Tamil Nadu Government
• ASSOCHAM Best CSR Initiative Award
• SIAM - CSR Award for Education & Skills
• FICCI CSR Awards

Environmental Metrics

ESG Focus Areas

• Carbon neutral operations by 2030
• Net Zero by 2048
• 100% Renewable electricity by 2030
• Water Positivity
• Zero Waste to Landfill
• Diversity, Equity, and Inclusion
• Health and Safety
• Community Development
• Board Independence & Practices
• Compliance

Environmental Achievements

• Reduced carbon emissions by 1,35,825 tCO2e through green energy initiatives and energy conservation measures saving 11.70 million kWh resulting in ₹10.25 Crores of energy cost savings.
• Achieved 71% renewable energy in Tamil Nadu plants.
• Increased cumulative count of trees to ~7 lakhs through afforestation.
• Overall Water recovery through sewage/effluent treatment/Zero Liquid Discharge (ZLD) enhanced to 68% from 65% (FY23).
• Introduced Expandable Steel Racks (ESR) pallets to avoid wood packaging (135 Tons/year).

Social Achievements

• Transformed the lives of 1,91,858 students from 1,719 schools across 7 states as part of the Road to School and Road to Livelihood initiatives.
• Improved to 2nd place in Sales & Service satisfaction in FY24.
• Added 134 new outlets and 1,000+ bays during the year.

Governance Achievements

• Implemented and disclosed comprehensive set of policies on the website towards improving the transparency.
• Improved ESG score from 25 in FY22 to 53 in FY23 (S&P Corporate sustainability assessment).

Climate Goals & Targets

Environmental Challenges

• Geo-political conflicts and pressure on forex in anchor markets.
• Political unrest, currency depreciation & acute shortages of forex in Bangladesh.
• Import restrictions in Nepal & Sri Lanka.
• Slowdown in growth and currency weakness in key Indian export markets.

Mitigation Strategies

• Distributor appointment in 8 new territories in Africa.
• Price recovery and higher tonnage in mix to offset the impact of volume reduction.
• Various internal initiatives covering price negotiation, value engineering, turnover discounts and business share optimization to reduce material costs.
• Better management of cash and working capital to reduce finance costs.

Supply Chain Management

Supplier Audits: 38.5% (by value of business)

Responsible Procurement

• Supplier Code of Conduct
• Supplier ESG Program
• Supplier Screening on ESG & Business relevance
• Supplier ESG assessment & Development

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, Science Based Targets Initiative (SBTi)

Certifications: ISO 45001:2018, ISO 27001:2022

Third-party Assurance: DNV Business Assurance India Private Limited

Sustainable Products & Innovation

• Battery Electric vehicles
• Hydrogen ICE vehicles
• Fuel Cell vehicles
• LNG vehicles
• CNG vehicles

Awards & Recognition

• 18 prestigious EHS Awards
• Water Positive Company certified by DNV GL