Making mobility and environment consciousness among its direct stakeholders.

Making
a thought-out decision to invest in environment, the company has tried its best
to stay ahead of government regulations. The company addresses environmental
issues from the point of view of manufacturing, products and supply chain. The
Company is guided by its Environment Policy that promotes energy conservation,
3Rs (Reduce, Reuse and Recycle), green procurement, environment friendly
mobility and environment consciousness among its direct stakeholders. The
Company also follows SMC’s basic philosophy of Smaller, Fewer, Lighter, Shorter
and Neater in its manufacturing facilities. The company has been able to reduce
per vehicle electricity consumption by 32 per cent and 38 per cent at its
Gurgaon and Manesar plants respectively. Similarly, per vehicle water
consumption has reduced by 62 per cent and 61 per cent respectively. Both
facilities are zero water discharge (outside factory premises). As a strategy,
Maruti Suzuki has adopted ISO 14001 among its Tier -1 supplier. The company has
identified and prioritized material aspects in Environmental after considering
the significance and scale of their impacts. Biodiversity is not a material
aspect of the company as it doesn’t operate in the locations with the sensitive
ecological biodiversity. The materials used by the Company for vehicle manufacturing
are primarily non-renewable in nature. To reduce per vehicle raw material
consumption, the company has focused on initiatives like ‘One Gram One
Component’ weight reduction programe, yield improvement, Value Analysis-Value
Engineering and recycling and reuses initiative. The Company meets more than
96% of its energy requirement from cleaner sources. Energy efficiency
improvement in compressed air plant is by reduction of generating air pressure
in Manesar Casting Plant. In cost reduction initiatives, company has increased
loading of steam turbine generator in Manesar by efficient running of Waste
Heat Recovery Boiler, optimization of power resources by use of low pressure
steam turbine generator and auxiliary boiler, on Sundays/holidays. In terms of
emission, total scope-1 and scope-2 emissions (CO2) were 366,233t and 27,317t
of CO2 equivalent respectively. The ambient air quality and stack emission
parameters (SOx, NOx, and SPM, etc.) are monitored as per prescribed government
norms by a government approved external agency. The monitored values in 2016-17
were well within the prescribed limits of the Pollution Control Board. The
Company is continuously targeting reduction in CO2 emissions to combat climate
change. The Company was able to reduce overall weighted average CO2 by over
15%.

In
2015-16, the company was able to increase its CSR spend to 784.6 million from
372.5 million in 2014-15, a growth of 110.6% while focusing on the three major
areas of Community Development, Skill Development and Road Safety. There was a
reduction in water consumption in 2016-2017 2,326,709m3 as compared to
2,407,741m3 in 2015-2016. Coming to the supply chain, the company has largest
networks of supply chain in the country. The company’s operations depend
heavily on its suppliers and dealers. The vastness, dependency and the extent
of associated economic activities make the value chain a material aspect for
the company. To increase the share of locally sourced components, the company
has created a supplier base of 444 local suppliers till 31st March, 2016.
Nearly 88% of the supplier base by volume is located within 100 km radius of
the company facilities. In 2016-17, there was no fatality due to accidents
within the company premises. A few employees work in certain zones which are
legally classified as areas having potential to cause occupational diseases.
The company has in place an Anti-Sexual Harassment Policy in line with the
requirements of the Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013. The Internal Complaints Committee (ICC)
has been set up to redress complaints received regarding sexual harassment.
During the period under review, two complaints were received by the ICC out of
which one complaint was investigated and closed. The second complaint was
received in March, 2017 and is under investigation.

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In
terms of governance, the board and its committees had been highly effective in
achieving their respective charters and their meetings are well run and the
members acted with sufficient diligence and care. The performance of individual directors is evaluated
on parameters such as level of engagement and contribution to the affairs of
the company including by way of attendance in board/committee meetings, level
of independence of judgment, care undertaken in safeguarding the interest of
the company and its minority shareholders. All the directors were diligent,
meticulous and faithful in the performance of their duties and the Directors
expressed their satisfaction with the evaluation process. The criteria laid
down by the Nomination and Remuneration Committee for evaluation of performance
of independent directors included, inter-alia, the extent of engagement
including attendance at the board/ committee meetings, ability to discharge
their duties and provide effective leadership, exercise independence of
judgment and safeguarding the interest of all the stakeholders including the
minority shareholders.

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