Mahindra and Mahindra

No leading practices were identified for this company.

No leading practices were identified for this company.

No leading practices were identified for this company.

No leading practices were identified for this company.

M&M has not set sufficient intermediate targets. Setting regularly spaced intermediate targets will help the company incentivise near-term actions on its longer-term decarbonisation goals. While the company has publicly set a target to reach net-zero emissions by 2040, it remains unclear what percentage of the target will be achieved through offsets. The company has also set targets to reduce its scope 1 and 2 emissions by 47%, and its downstream scope 3 emissions from the use of sold vehicles by 30%, by 2033 compared to 2018. However, M&M saw only a slight decline in its downstream scope 3 emissions. Additionally, the company does not disclose its upstream scope 3 emissions. Reducing upstream emissions from embedded materials used in vehicle manufacturing will become more important over time, as the share of these upstream emissions will increase as companies switch from producing internal combustion engine (ICE) vehicles to electric vehicles (EVs).

M&M has implemented board-level oversight of climate change and demonstrates adequate climate expertise among its board. The company also incentivises low-carbon performance through executive compensation. Additionally, it has developed a low-carbon transition plan that includes several strong elements, such as a climate scenario analysis and an assessment of the materiality of climate-related risks and opportunities. However, this scenario analysis only covers 2°C scenarios. The company should further extend this analysis to include a 1.5°C scenario and publish the results publicly. More importantly, the company has not set sufficient interim short- and medium-term targets. Additionally, the company reports no growth plans or financial details for its low-carbon activities. To improve its credibility and substantiate the development of its low-carbon business activities, the company should report their profitability, current size, growth potential and deployment schedule.

In 2023, M&M reported a low-carbon capital expenditure (CapEx) of USD 163 million and low-carbon research and development (R&D) expenditure of USD 157 million. However, this constitutes less than 30% of the company’s total capital and R&D expenditure. Additionally, it does not meet the sectoral-level expectation that at least 80% of a company’s total CapEx and R&D investments should be dedicated to low-carbon technologies. M&M’s sales of low-carbon vehicles have seen no significant increase. In 2021, 4% of the company’s sales comprised low-carbon vehicles, with only a moderate increase to 9% in 2023. The company needs to significantly step up its ambition to align with its 1.5°C pathway, which requires 67% of company sales in 2030 to consist of low-carbon vehicles. Further, while the company may be reducing its downstream scope 3 emissions intensity, it needs to improve on its the current pace of reduction, which does not align with the rate required to meet its 1.5°C pathway.

Although M&M has implemented a supplier engagement strategy, this does not specifically include greenhouse gas (GHG) emissions reduction requirements. Creating quantified targets will provide clearer direction to the company’s whole supply chain. There is also no evidence of the impact that the company’s supplier engagement has had. Measuring the impact of its actions will help both the company and its supply chain monitor the progress being made. M&M does not detail how it works with its clients to reduce emissions. The company can improve its performance by creating a client engagement strategy, governed by a clear policy and integrated into business decision-making. It can further improve transparency by disclosing the proportion of clients the strategy targets by client-related revenue or scope 3 emissions. M&M does not have a policy for engagement with trade associations or industry organisations. The company continues to be a member of the Society of Indian Automobile Manufacturers, which is reported to oppose climate-aligned policies. M&M can increase its credibility and transparency by publishing a list of trade associations it is a member of.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.  No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning. 

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s actions to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks. The company discloses the actions it takes to provide training and education opportunities for workers and affected stakeholders. For instance, it has capability-building programmes, which include both behavioural and functional programmes for the entire workforce. Furthermore, the company discloses the measures it takes to embed equality of opportunity for women and vulnerable groups in these actions. It does this, for example, by providing trainings focused on communication and critical thinking for women who are in final year study programmes in government(-aided) colleges. However, no evidence was found of the company having a process for identifying skills gaps for workers and stakeholders affected by the low-carbon transition or a public commitment to help workers displaced by the transition to reskill or upskill. 

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company commits to respecting human rights and the ILO fundamental rights at work, and it expects its business relationships to respect the ILO fundamental rights at work. However, no evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and its supply chain. Moreover, no evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers and external stakeholders.

The company commits to respecting the health and safety of its workers and expects the same commitment from its business relationships. However, no evidence was found of the company having a time-bound target for paying all workers a living wage. The company also does not disclose the proportion of its direct workforce covered by collective bargaining agreements or its required working hours, and no relevant company disclosure was found of any indicator of workforce diversity. While the company demonstrates gender diversity in its highest governance body, there is no evidence that it has a commitment towards gender equality and women’s empowerment.

The company commits to protecting personal data. However, no evidence was found of the company having a privacy statement regarding the collection, sharing and access to personal data. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. However, no policies or commitments of the company related to tax, lobbying and political engagement were found in the public domain.