| The Government of India has constituted 8 missions under the National Action Plan for Climate Change. Policy refinements and new legislation emerging from these missions wield the potential to impact cost of conducting business. We are closely monitoring proposed initiatives and initiating proactive steps to be policy ready even before these policies come into implementation. |
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| We are also keeping a keen watch on the ongoing Carbon tax debate between developed nations - US and the European Union, and the BASIC countries. We identified the risks and opportunities related to Climate change as enumerated below: |
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Risks |
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Opportunities |
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Stringent regulatory norms introduced to safeguard the environment |
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Fuel availability and prices |
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Volatility in the financial market |
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Escalation of raw material prices |
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Effects of the above on our supply chains |
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Climate change induced natural disasters and its effects on our people and assets |
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Emergence of a more environment conscious
customers segment |
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Environment friendly product innovations to satisfy the above |
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Derive first mover advantage of creating environment friendly products which satisfy new regulatory norms as well as the new customer segment |
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Ability to tap markets in developed economies having stringent regulatory norms |
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Access to green funds from government in particular and financial markets in general |
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New partnerships/JVs with overseas / Indian companies to leverage technology and market |
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| We have initiated the development of a sustainable-value framework that replaces the conventional economic strategy. This framework aims to link sustainability challenges to the creation of shareholder value through the realignment and reorganisation of our various businesses to combat the implications of climate change. |
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| In line with these objectives an entirely new division, Mahindra Partners, has been formed to explore and analyse new business opportunities for the group and determine whether there is enough potential and synergy to enter them or not. The division incubates new projects and start-ups of the group, like Solar Power, Aerospace business etc and also advises on exit strategies for companies within the Group. |
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| We realise that as the pace of business change increases so does the importance of research and development. Mahindra's commitment to technology-driven innovation is reflected in the ongoing investment in the Mahindra Research Valley, a facility that houses the Company's engineering research and product development wings, under one roof. |
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| On-ground initiatives to climate-proof our business are reported along with their results in the environment performance section. |
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