The Mahindra Group will measure “social impact” as rigorously as financial performance: Anand Mahindra
The Mahindra Group will measure its social impact “as rigorously” as it measures its financial performance, and at an early stage it generated economic activity worth $ 42 billion (around 311 cr) during the year. 2020-21 fiscal year, said group chairman Anand Mahindra. Friday.
In his address to the company’s shareholders at the virtual AGM, Mahindra, who will assume the role of non-executive chairman in November, said, âMost importantly, your company has created a social and environmental impact worth US $ 4 billion in fiscal year 21 â. He said there was currently a quiet revolution in the business world with “overwhelming pressure from consumers on companies to create shared value, in other words, to do business with a way that improves the quality of life of their communities and the world “. .
Stating that the world’s leading financiers are now insisting on proof that companies place a strong emphasis on ESG (environment, social and governance) before disbursing funds for growth, he said, âthe stock markets are also starting to promote social enterprises. the impact is becoming more and more important for investors. All of this is proof that companies can no longer live in a bubble isolated from the rest of society, he said, adding that “companies must see themselves as an intrinsic part of the social fabric and that the social impact becomes an increasingly important factor in the valuation of a company “.
Sharing the group’s plan for the way forward on the issue, Mahindra said, âOn this momentous 75th anniversary, the Mahindra Group is proudly committed to measuring social impact as rigorously as we measure financial performance. We will calculate our social impact, quantify it in financial terms and target its increase. “The group will depend on both its financial performance and the social impact it creates, he said, adding:” This will allow to capture the real value that the Mahindra Group adds to people, profits and the planet. “
Informing shareholders that the group has already started working on this, Mahindra said, âWhile we are at a preliminary stage, our rough calculations highlight that the Mahindra Group has generated economic activity worth $ 42 billion. USD in fiscal year 2020-21. More importantly, your business has created a social and environmental impact worth US $ 4 billion in FY21 alone. “
The group has made ten “very specific commitments that will allow us to take pole position in the ESG space”, he said, adding “Each of these 10 commitments articulates a daring and measurable objective such as carbon neutrality. ‘By 2040 and 100 percent sites will be certified as zero landfill waste. âAt a time when the world has been ravaged by the coronavirus pandemic and still has not fully recovered, Mahindra acknowledged the efforts of frontline workers such as doctors, nurses and other health workers.
âFor over a year we lived through an unprecedented global pandemic. It brought horror and devastation. But it also taught me something that I had never realized beforeâ¦ It taught me that our world is full of heroes, âhe said. Commenting that “not all heroes appear in swirling cloaks,” Mahindra said, “Some of them wear masks and wear stethoscopes and are on the front lines. Some of them wield a mop and broomstick. like a sword against disease Some of them are leading the battle in places you and I wouldn’t go.
“Some of them risk their lives to keep our world spinning. Each of these people is a hero and many of them gave their future for our today. I greet them with a grateful heart.” From November, when he took on the role of non-executive chairman, Mahindra said he would be deeply engaged in overseeing routine governance functions that ensure transparency and a proper flow of information. âAn internal audit, a major tool of good governance, will report directly to me. This is the only operational function that will be my responsibility, âhe said.
Along with the lightening of the load on other operational matters, Mahindra said this would give him the opportunity to focus on what he considered “the most important function of any board chairman, at knowing how to be the guardian of the brand and ensure that the vision and values ââof our founders, who have accompanied us for 75 years, continue to guide us and light our way “.