Maruti Suzuki India Limited has come out with a Business Responsibility and Sustainability Report for the financial year 2023-24. The report outlines the continuous efforts and achievements made by the company in the realm of sustainability. Incorporated in 1981, based in Vasant Kunj, New Delhi, and with two manufacturing plants in Gurugram and Manesar, MSIL has its presence across 60 locations in India and exports to 125 countries. It is listed on BSE and NSE, with primary operations being in the manufacture and sale of vehicles, 83.05% of which are turnover, and of vehicle parts and accessories, 12.70%.
It is worth pointing out that the following report focuses mostly on MSIL’s approach to sustainability in terms of measures and implemented initiatives: Among these, there is a decrease in the overall energy consumption made up of electricity, fuel, and other resources. Systems have been placed to monitor and reduce the continuous use of energy. In the context of greenhouse gas emissions, the company observes Scopes 1 and 2. Scope 1 is about direct emissions attributed to sources that the company manages through the combustion of fuels in vehicles belonging to MSIL, while emissions in Scope 2 refer to an indirect emission that comes as a result of the generation of purchased electricity.
Another major area of concern for MSIL is water. It defines the amount of water utilized by the company and details on minimizing and recycling consumptive uses of water. The waste management practices are spelled out, with an explicitly mentioned agenda to decrease the total waste generated and increase the percentage of waste that is being recycled or reused to minimize landfill disposal.
MSIL demonstrates its commitment to sustainable products in terms of efforts to manufacture environmentally friendly, fuel-efficient vehicles with low emissions. The recyclability of the parts of the vehicle is yet another significant concern of the company, where MSIL tries to make many of the parts of the vehicle recyclable in nature. Its CSR activities are well reported in the report. The firm pursues investments in community-building programs associated with education, health, and the environment. Welfare-oriented activities related to its employees, such as health, safety, and other welfare measures for its manpower resources, are other areas focused upon.
Sustainability-related issues in the supply chain have been stated in the report. In every possible way, MSIL continuously interacts with its suppliers to ensure that they maintain sustainability standards, besides insisting on local purchases to hammer the carbon footprint related to transportation. Through innovation and technology, MSIL rapidly puts steps in the right direction toward sustainability. The company has invested heavily in research and development in sustainable technologies. The digitalization of its tools to help improve operational efficiency and lower the environmental impact is also a key focus area.
BRSR enumerates various risks and opportunities lying in the area of sustainability. One prominent risk is the rapid scaling of operations. MSIL is offsetting this by building collaboration with diverse stakeholders, and the decision-making has been facilitated and empowered through digitalization. Sustainability components related to supply chain component supplies continue to be another risk, which is offsetting through several effective communications with suppliers, using alternate components, and increasing inventories.
Sustainability statistics of MSIL for the financial year 2023-24 clearly state what the company has achieved and is working towards. At the core of these accomplishments are tremendous reductions in the energy unit consumption by each unit, CO2 emissions dropping, successful implementation of projects on water conservation across several of its locations, and thoroughly revised waste management processes. All these are not only testimonials to MSIL being an environmentally sustainable entity but also contribute substantially towards the large goals for the environment.
It very clearly indicates the strong approach towards sustainability Maruti Suzuki India Limited has in place through its BRSR for FY 2023-24. MSIL remains on a steady course with deep monitoring of energy, emissions, water, and waste generation at its plants, and at the same time, it keeps on pursuing projects on sustainable products and CSR. Also, it adds to the already strong position of the company in the automotive sector with commitments to innovation, technology, and supply chain sustainability. Sustainability in MSIL will be bound integrally with its future operations that will foster goodwill toward the environment for the benefit of the communities served.
Source: BRSR
Credit: Maruti Suzuki India Limited