Inside Mahindra’s green revolution: Being a planet positive company

In this episode of “Green Guardians”—a series spotlighting thought leaders who are transforming the green energy landscape —we are pleased to feature Ankit Todi, Chief Sustainability Officer at the Mahindra Group. What started as a steel trading business seven decades ago has now evolved into a global brand spanning multiple nations and sectors.

Todi discusses Mahindra’s unique approach to becoming a “planet-positive” company, focusing on greening operations, decarbonizing industries, and driving social and environmental impact. Todi also highlights Mahindra’s collaborations with global and domestic organizations, their initiatives in renewable energy, and the challenges faced in the sustainability journey. This conversation offers valuable lessons for businesses striving to integrate sustainability into their core strategies and contribute positively to the planet and society.

IBT: The definition for sustainability differs from people to people and from companies to companies and they have their own personalized journeys in achieving it. So what is sustainability for Mahindra?

Ankit Todi: Absolutely, I’m very happy to answer that. Let me first explain what sustainability means in different contexts and then delve into Mahindra’s approach and initiatives. Broadly speaking, the definition of sustainability in the corporate ecosystem in India has taken two directions. One is equating sustainability with ESG (Environmental, Social, and Governance), focusing on regulatory, investor, and disclosure perspectives. The second, a more evolved definition gaining traction globally, views sustainability through the lens of environmental sustainability, emphasizing climate change, business resilience, and opportunities arising from these challenges.

Both definitions are valid, aiming to build sustainable businesses while positively impacting society. This philosophy aligns with Mahindra Group’s foundational principle of operating in a manner that benefits stakeholders. Recently, we’ve rethought our approach to sustainability, realizing that the best way to be sustainable is by integrating sustainability into our core business strategy. Consequently, we adopted the concept of being a “planet-positive” company, focusing on environmental sustainability, climate change, and related opportunities.

For Mahindra, being a planet-positive company involves three key pillars. First, managing everything within our operational control, particularly emission footprints through renewable energy and energy efficiency, crucial for a manufacturing company. Second, focusing on waste and water management. Third, emphasizing material circularity—using greener, recycled, or low-emission materials in our manufacturing and construction processes.

By embedding these principles into our core business strategy, Mahindra Group aims to operate sustainably and create a positive impact on the planet and society.

IBT: At the same time, how do you ensure that the end of life recycling of these materials is also possible?

Ankit Todi: The first pillar of our sustainability strategy focuses on greening our own operations—everything directly under the company’s control. However, in today’s ecosystem, it’s not enough to just manage our own footprint. This brings us to the second pillar: decarbonizing industries.

We work on various areas within this pillar. One key aspect is building a green portfolio of businesses. This includes green products, services, and enablers, depending on the industry. For example, in our auto business, we are manufacturing electric vehicles (EVs) in both the three-wheeler and four-wheeler segments. Our three-wheeler business commands about a 60% market share in its category of electric vehicles, and we are expanding our efforts in the four-wheeler sector.

In our holidays business, which operates around 50 resorts in India, we are striving for net-zero operations with low carbon, water, and waste footprints, while also enhancing biodiversity. This creates green holiday destinations—an example of a green service. Similarly, our finance business explores how to facilitate EV penetration through financing.

Across the Mahindra Group, we are working towards a green transition in various businesses. An important element of this transition is engaging our stakeholder ecosystem, especially our supply chain. For example, in our auto business, transitioning to green practices requires suppliers and vendors who can provide recycled materials. This also includes addressing scope three emissions—those from our supply chain and the use of our products—requiring deep engagement with our suppliers.

We are also exploring new, completely green business models. Mahindra has a significant presence in the renewable energy sector, with three companies operating in different parts of the renewable energy value chain. Additionally, we are looking at end-to-end circular business models, such as our end-of-life vehicle recycling company, which is currently small but expected to grow.

The goal of the second pillar is to move entire industries towards greener practices, thereby building a portfolio of green businesses. The third pillar focuses on the intersection of social and environmental outcomes.

IBT: What are some areas outside of your immediate industry boundary where you can create a positive impact?

Ankit Todi: A classic example of our third pillar, which focuses on the intersection of social and environmental outcomes, is promoting sustainable agriculture. As one of the world’s largest tractor manufacturers, we significantly influence the agricultural economy. Through various initiatives, including our CSR programs, we are advancing skilling in regenerative agriculture.

Another example is our work in forestry and carbon sequestration. Over the years, the group has planted about 25 million trees through our CSR program. This not only leads to positive environmental outcomes but also supports agroforestry models that yield social benefits.

The final element of this pillar involves biodiversity conservation and the emerging concept of a just transition. As different sectors undergo climate transitions, we aim to prepare a skilled workforce to participate in this shift.

In summary, our sustainability strategy is built on three pillars: greening our operations, decarbonizing industries, and creating positive societal and environmental impacts. This is supported by transparent reporting, climate advocacy with policymakers, and engagement with the startup ecosystem to drive innovation.

IBT: What are the key environmental initiatives that the company has undertaken to reduce its carbon footprint. Can you discuss any specific programs or partnerships that Mahindra has developed to support local communities? Like how does Mahindra collaborate with other companies or industries to promote sustainability?

Ankit Todi: Absolutely. I’ll address your question in two parts: industry collaboration and community engagement.

At the industry level, we engage with numerous organizations globally and domestically. Globally, we work closely with the World Economic Forum, participating in various sustainability conversations through platforms like the CO Climate Alliance, which includes around 200 companies discussing global warming solutions and sharing best practices. We are also part of the Sustainable Markets Initiative, founded by the King of England, which brings together private sector leaders to address sustainability challenges.

Domestically, we collaborate with FICCI, India’s leading industry association, focusing on climate change and related topics. Additionally, we have one-on-one partnerships with entities such as Johnson Controls, working on a national climate advocacy platform aimed at enhancing energy efficiency in the built environment, which offers both environmental and commercial benefits.

These collaborations highlight the necessity of a collective effort, as tackling sustainability challenges often requires the entire ecosystem rather than individual companies.

On the community side, our engagement is a mix of CSR programs and skilling initiatives. For instance, Project Haryali is an agroforestry project in Andhra Pradesh’s Araku Valley, where we work with tribal farmers to promote sustainable agriculture. Additionally, our renewable energy business includes a skilling program for people from rural India, preparing them for blue-collar jobs in the growing renewable energy sector.

We are also focused on skilling women farmers in sustainable agriculture through our CSR programs, making them more resilient to climate change. Another notable initiative is our support for women in driving three-wheeler electric vehicles. As India’s largest three-wheeler electric vehicle company, we offer financing and skilling programs to empower women in this area.

Overall, our approach involves extensive collaboration and engagement at both the industry and community levels to drive meaningful change in sustainability.

IBT: So what are some major challenges that the company faces in achieving these sustainability goals?

Ankit Todi: Challenges in sustainability can be classified into two categories. While many sustainability actions are financially positive, their benefits can be difficult to comprehend, especially in the short term. For example, the business case for energy efficiency and renewable energy projects is often clear with attractive payback periods, making them easier to implement. However, initiatives like water management or certain supply chain actions may not be commercially viable or beneficial in the short term. The challenge lies in balancing commercially viable actions, regulatory-driven initiatives, and those that are the right things to do with long-term viability. Changing the perspective from a short-term profit view to a broader, long-term impact view is crucial. Fortunately, Mahindra Group’s ethos supports this balanced approach.

The second challenge is the pace of deployment. Combating climate change is a race against time as global warming’s impacts are increasingly evident in our daily lives, from changing weather patterns to rising food costs. The urgency is clear: we must accelerate our efforts not just within Mahindra, but across the government and the private sector. There is a pressing need to expedite our actions to meet the broader deadline imposed by climate change.

IBT: Since you mentioned electric three wheelers, something that comes to my mind is to ask you about the future of hybrid cars. What’s Mahindra’s take on that?

Ankit Todi: When we analyze the emissions of a typical four-wheeler powered by diesel or petrol, it generally emits about 35 tons of carbon dioxide over its lifetime, considering manufacturing, fuel consumption, and transportation. Shifting to an electric vehicle (EV) in India, which relies on a grid that’s currently about 24% renewable, results in a 20% reduction in emissions. This means the EV would emit around 28 tons of carbon dioxide.

However, if the EV is charged entirely with green energy, the emissions drop significantly, reducing the carbon footprint to approximately 7-8 tons. This includes emissions from manufacturing, particularly from the batteries, which involve energy-intensive processes. As the industry advances, focusing on material circularity and greener manufacturing processes, these emissions can be reduced further.

The transition to EVs is not only beneficial now but will improve as the grid becomes greener and investments in green charging infrastructure and manufacturing circularity increase. There is a theoretical path to approaching net-zero emissions with EVs. In contrast, hybrid vehicles, while advantageous over internal combustion engine (ICE) vehicles in the short term, have an upper limit on emission reductions due to their continued reliance on fuel. Thus, from a long-term perspective, EVs are the solution for achieving net-zero emissions.

This perspective drives Mahindra Group’s significant investment in the electric vehicle portfolio, including three-wheelers and four-wheelers. Regarding hydrogen as a fuel, it plays a crucial role, especially for non-electricity-based energy needs. While electricity-based energy can be decarbonized using solar, wind, and storage, some processes will remain fuel-based, particularly in hard-to-abate sectors like steel manufacturing. Hydrogen is expected to be more prevalent in these industrial processes initially.

There are also applications for hydrogen in heavy transportation, though widespread adoption in this area may take longer. As the cost of green hydrogen decreases and its maturity increases, broader applications will emerge. This is our view on hydrogen’s potential and future role in energy transition.

Okay, now my last question for you would be that what advice would you give to other companies looking to enhance their sustainability practices?

Ankit Todi: To address sustainability, companies can approach it in two primary ways depending on their industry. The first approach focuses on the direct impact within their own operations, which is particularly significant for manufacturing sectors. Regardless of the industry, examining and minimizing one’s operational footprint is crucial.

The second approach involves building a portfolio of green businesses sector by sector. There are multiple opportunities to decarbonize various industries, some easier and some more challenging. For example, a steel company can work on producing low-emission steel, and similarly, concrete manufacturers can aim for low-emission products. In the manufacturing sector, almost every product can be reconsidered to reduce emissions.

For service industries, the goal is to provide services with minimal negative impact. An example is the holiday industry, where services can be designed to be environmentally friendly, such as eco-friendly resorts and green travel options.

Additionally, companies should look at creating entirely new green businesses within their industry or in adjacent industries. This broad strategy enables companies to reduce their environmental footprint while also tapping into new, sustainable business opportunities.

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Ankit Todi leads the sustainability efforts for the Mahindra Group, shaping the organization’s sustainability strategy and driving the transition to green business practices. An IIT graduate, Ankit is deeply passionate about the clean tech ecosystem, actively working to introduce new innovations to Mahindra Group companies by collaborating with the startup ecosystem. Additionally, he is a member of Mahindra Group’s Young Leaders Co-Herd.