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Tata Autocomp Sustainability Initiative 20th February 2019

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What is Sustainability?

“Meeting the needs of present generation, without compromising the ability of future generations to meet their own needs”

3 References: SustainAbility | Credit Suisse Global Wealth Report 2015 10

Resource scarcity and climate change … … and wealth inequalities are increasing.

CLIMATE CHANGE

2017 hottest year on record. The world has not seen such temperature in last 1,15,000 years

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Resource scarcity Growing Population

References: Sustainability | Credit Suisse Global Wealth Report 2015

Sustainability

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What is Business Sustainability?

Sustainability in a business context is an approach that creates long term stakeholder value by balancing economic, environmental and social performance

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Our Philosophy The TATA AUTOCOMP SYSTEM Group is committed to integrate environmental, social and ethical principles into its business which is central to improving the quality of life of the communities we serve globally and enhancing long-term stakeholder value. Our Principles Our companies shall: • Integrate sustainability considerations into all business decisions and key work processes, with the aim of creating value,

mitigating future risks and maximizing opportunities. • Follow the highest standards of governance and transparency. • Embody principles of product stewardship by enhancing health, safety, environmental and social impacts of products and

services across their lifecycles. • Provide employees and business associates with working conditions that are clean, safe, healthy and fair. • Strive to be neighbors of choice in the communities in which we operate and contribute to their equitable and inclusive

development. Our Commitments Our companies will aspire for sustainability leadership in the sectors in which we operate. To achieve this, we will: • Constitute a governance structure to oversee our sustainability commitments. • Identify relevant and material sustainability issues and develop comprehensive sustainability strategies with goals, targets,

mitigation and adaptation action plans to address them under the aegis of our boards. • Undertake natural and social capital valuation to assess business risks. • Report in line with TATA Group reporting frameworks. Revision no - 02 Date – 06.09.2018 Pune

Sustainability Policy

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Tata Autocomp Sustainability Journey

• Developed long list of sustainability issues relevant for the auto sector

• Shortlisted sustainability issues relevant for Tata Autocomp

Identified Sustainability Issues

• Developed materiality map - Prioritized issues on the basis of importance to Tata Autocomp and stakeholders of the business in three categories i.e. Focus, Track & Review

• Finalized material sustainable issues with peer comparison

Established Materiality

• Set ambition level for material issues i.e. Captain, Compete & Comply

• Formed Tata Autocomp Sustainability Working Group for driving this initiative

• Defined Key performance indicators (KPIs) and targets

Developed & Deployed Sustainability Strategy

• Established platforms and periodicity for monitoring sustainability performance

• Decided on internal reporting framework

Monitor, Review and Communication

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Tata Autocomp identified relevant sustainability issues from peer disclosures, GRI standards and UN SDGs …

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1. GHG and other air emissions from company operations

2. Energy consumption for company operations

3. Usage of toxic substances in auto components

4. Effluents and solid waste management in operations

5. Water consumption and discharge management in operations

6. Reuse, recycling and recovery of materials

7. Management of biodiversity impacts of operations

8. Employee health, wellbeing and safety

9. Workforce diversity and equality of opportunity

10. Workforce training and development

11. Local community engagement and development

12. Product safety, quality and transparent labelling / marketing

13. Environment impacts in the supply chain

14. Labour and human rights issues in the supply chain

15. Ethical and transparent business practices

16. Collaboration with industry peers and trade associations

17. GHG and other air emissions from vehicles

18. Product innovations by vehicle manufacturers

19. Future mobility solutions considered by vehicle manufacturers

20. Technological advancements in auto components industry

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How are Tata Autocomp peers prioritizing issues?

Sr. No. sustainability issues % of 13 peers who considered

this issue …. As Focus As Tracks As Review

10 Workforce training and development 85% 64% 27% 9%

12 Product safety, quality and transparent labelling / marketing 85% 73% 27% 0%

13 Environment impacts in the supply chain 92% 58% 25% 17%

18 Product innovations by vehicle manufacturers 69% 78% 11% 11%

19 Future mobility solutions considered by vehicle manufacturers 31% 25% 50% 25%

20 Technological advancements in auto components industry 38% 60% 20% 20%

1 GHG and other air emissions from company operations 100% 77% 15% 8%

2 Energy consumption for company operations 77% 60% 20% 20%

3 Usage of toxic substances in auto components 62% 38% 38% 25%

4 Effluents and solid waste management in company operations 92% 17% 58% 25%

5 Water consumption and discharge management in company operations

92% 33% 42% 25%

6 Reuse, recycling and recovery of materials 69% 22% 56% 22%

8 Employee health, wellbeing and safety 92% 33% 42% 25%

14 Labour and human rights issues in the supply chain 77% 40% 40% 20%

15 Ethical and transparent business practices 38% 40% 60% 0%

17 GHG and other air emissions from vehicles 54% 86% 14% 0%

7 Management of biodiversity impacts of company operations 85% 9% 27% 64%

9 Workforce diversity and equality of opportunity 92% 25% 50% 25%

11 Local community engagement and development 62% 25% 38% 38%

16 Collaboration with industry peers and associations 23% 0% 33% 67%

FOCUS

TRACK

REVIEW

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FOCUS TRACK REVIEW

• GHG and other air emissions

• Energy consumption

• Water consumption

• Sustainable supply chain

• Waste management

• Workforce training and development

• Technological advancements in auto components industry

• Employee health, wellbeing and safety

• Ethical and transparent business practices

• Management of biodiversity impacts of company operations

• Workforce diversity and equality of opportunity

• Local community engagement and development

• Collaboration with industry peers and associations

Imp

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Importance to Tata Autocomp Business

High

High Low Low

Materiality map for Tata Autocomp prioritizes key sustainability issues into Focus, Track and Review categories

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Focus Issue Ambition

Technological advancements in auto components industry

CAPTAIN Tata Autocomp will be the leader in the global auto component industry on this specific issue.

GHG and other air emissions COMPETE

Tata Autocomp will be the leader in the Indian auto component industry on these specific issues.

Energy consumption COMPETE

Water consumption COMPETE

Sustainable supply chain COMPETE

Workforce training and development

COMPETE

Waste management COMPETE

Ambitions level identified for Focus KPIs ….

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• Tata Autocomp Systems Ltd. Composite Division – Pantnagar received the Sustainability Award by Tata Motors for their contribution in reduction of Carbon & Energy footprint.

• They have reduced their Total energy consumption by 8.9% and GHG emissions by 3.15% i.e. saved around 61 tons of CO2 emissions.

Sustainability Award by Tata Motors

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Awards & Appreciations: Sustainability

Tata AutoComp GY Batteries (TGY) • Out of 101 suppliers, Tata AutoComp GY Batteries received the award for “Best

Sustainability Initiative” in the Supplier Quality Improvement Contest organized by Kirloskar Oil Engines Ltd.

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Awards & Appreciations: Sustainability

i. Tata Autocomp Systems – Composites Division Pantnagar plant received “ENERGY CHAMPION” - “RUNNER UP” award in a competition organized by Tata Motors

i. Tata Autocomp Systems – Composites Division Jamshedpur plant received award for

“SIGNIFICANT IMPROVEMENT IN THERMAL ENERGY CONSERVATION” . Competition was organized by Tata Motors Ltd. in which 157 companies of repute from across India participated.

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Tata Autocomp Suppliers Sustainability Initiative Launched on 3rd October 2018

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Sustainability: Incomplete without Supply Chain

Labour Unrest Labour Lost Finger at Supplier

Child Labour in Supply Chain Unsafe Conditions in Supply Chain

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Tata Autocomp Suppliers in Sustainability Initiative :

• Launched Supplier Sustainability Initiative on 3rd October 2018 1.

• Covered 5% Suppliers

• Selection of suppliers based on:

Share of revenue

Environmental, Social & Governance (ESG) Criticality

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• Released Sustainability Guidelines for Suppliers

• Released Baseline Data template for suppliers 3.

• This being the first year; only baseline data being collected from suppliers in given format.

• Next year onwards we shall propose the targets for defined KPIs

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Suppliers Sustainability – Base level data collection

• No. of Reportable & Non reportable accidents, Fatalities etc.

• No. of Fire incidences

• No. of Potential near misses etc.

Section A

Governance Related Information

• Direct & Indirect Energy

• Renewable Energy (RE),

• Energy Conservation Initiatives

Section B

Energy – GHG

• Fresh Water Consumption & Effluent Generation,

• Hazardous & Non hazardous Waste Generation, Hazardous Chemicals, Environmental Expenditure etc.

Section C

Water & Waste

• Manpower details

• Training details

Section D

Human Resource Management

Section E

Occupational Health & Safety (OHS)

Section F

Packaging

• Legal Compliance

• TCoC

• Management System Certification and Transparency & reporting

• Packaging Type and Quantity

• Packaging cost reduction initiatives

• Trade union

• Weekly off

• PF & ESIC covered employees

• CSR etc.

Section G

Social Aspects

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Tata Autocomp Renewable Energy Initiative Solar Roof Top Project

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Benefits to Business Units

5000 (Ton/Annum)

Reduction in Carbon Foot Print

50%

Cheaper than Electricity From Grid

CAPEX RISK

HASSLE FREE

PAY ONLY FOR USAGE, No Hidden Costs

CONVERT YOUR IDLE ROOFTOP Into A Money Saver

GO GREEN And Help Save Our Environment

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Thank you