MRF LTD

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BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT

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FY 2023-2024
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BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT
II. Products and Services
SECTION A – GENERAL DISCLOSURES
16. Details of business activities (accounting for 90% of the turnover):
I Details of the Listed Entity: -
Description of Main Description of % of Turnover of the
Sr.No.
Corporate Identity Number (CIN) of the Activity Business Activity entity
1 L25111TN1960PLC004306
Listed Entity Manufacturing of Truck,
Manufacturing of
2 Name of the company MRF Limited Farm, Passenger, Two-
1 Automotive Tyres, Tube, 100%
wheeler and other tyres,
3 Year of incorporation 05-11-1960 Flap etc
tubes and flaps
4 Registered office address 114, Greams Road, Chennai, 600006
17. Products/Services sold by the entity (accounting for 90% of the entity’s Turnover):
5 Corporate address 114, Greams Road, Chennai, 600006 % of total Turnover
Sr. No. Product/Service NIC Code
6 E-mail [email protected] contributed
7 Telephone 044-28292777 Manufacturing of
1 Automotive Tyres, Tube, 2211 100%
8 Website www.mrftyres.com Flap etc
Financial year for which reporting is
9 01-04-2023 to 31-03-2024 III. Products and Services
being done
(a)National Stock Exchange of India
10
Name of the Stock Exchange(s) where
Ltd 18. Number of locations where plants and/or operations/offices of the entity are situated:
shares are listed Number of
(b) Bombay Stock Exchange Ltd. Location Number of offices Total
11 Paid-up Capital Rs.42411430 Manufacturing Units
National 10 197 207
(a) Mr. K M Mammen International 0 3 3
(DIN : 00020202),
Chairman and Managing Director, 19. Markets served by the entity:
Tel. No. : +91 44 28292777,
Name of contact details of the person E-mail Id : [email protected] The company operates in the following markets mentioned below:
12 who may be contacted in case of any a. Number of locations:
queries on the BRSR Report (b) Mr. Arun Mammen Locations Number
(DIN : 00018558),
The Company sells its products in all the 28 states and 8
Vice Chairman and Managing National (No. of States)
Union territories in the country
Director, Tel. No. : +91 44
28292777, International (No. of
The Company serves in more than 75+ countries
E-mail Id : [email protected] Countries)
13 Reporting boundary Standalone Basis b. What is the contribution of exports as a percentage of the total turnover of the
14 Name of assurance provider S G S India Private Limited entity? : 7.59 %
Reasonable Assurance on BRSR Core c. A brief on types of customers:
15 Type of assurance obtained
Attributes Institutional Customers (Original Equipment Manufacturers (OEM), State Transport
Undertaking (STU), Defence, Government Departments, Contractors) and Retail Markets.

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IV. Employees
21. Participation/Inclusion/Representation of women
20. Details as at the end of Financial Year:
No. and percentage of
Total
Females
a. Employees and workers (including differently abled): (A) No. (B) % (B / A)
Sr. Total Male Female
Particulars Board of Directors 20 3 15%
No (A) No. (B) % (B /A) No.(C) % (C / A)
Employees Key Management Personnel 2* 0 0%
Note: * excluding Managing Directors / Whole-time Directors
1 Permanent (D) 6740 6697 99.36% 43 0.64%
2 Other than Permanent (E) 151 150 99.34% 1 0.66% 22. Turnover rate for permanent employees and workers (trends for the past 3 years)
3 Total employees (D + E) 6891 6847 99.36% 44 0.64% FY 2023-24 FY 2022-23 FY 2021-22
Workers Male Female Total Male Female Total Male Female Total
4 Permanent (F) 12469 12469 100% 0 0 Permanent
12% 7% 12% 16% 7% 16% 13% 7% 13%
Employees
5 Other than Permanent (G) 14006 13663 97.55% 343 2.45% Permanent
2% 0% 2% 4% 0 4% 1% 0 1%
6 Total workers (F + G) 26475 26132 98.70% 343 1.30% Workers
Note: Other than permanent workers are engaged through third party contractors.
V. Holding, subsidiary and associate companies (including joint ventures)

b. Differently abled Employees and workers: 23. (a) Names of holding / subsidiary / associate companies / joint ventures
Differently abled employees The company has a total of 4 active subsidiaries.
Sr. Total Male Female
Particulars Does the entity
No (A) No. (B) % (B / A) No. (C) % (C/A)
Indicate indicated at
1 Permanent (D) 13 13 100% 0 0 whether column A,
Name of the holding /
2 Other than Permanent (E) 0 0 0 0 0 holding/ % Of shares participate in the
S. subsidiary / associate
Total differently abled Subsidiary/ held by listed Business
3 13 13 100% 0 0 No. companies / joint
employees (D + E) Associate/ entity Responsibility
ventures (A)
Joint initiatives of the
Differently abled workers Venture listed entity?
(Yes/No)
Sr. Total Male Female
Particulars
No (A) No. (B) % (B / A) No. (C) % (C / A) 1 MRF Corp Limited Subsidiary 100%
4 Permanent (F) 55 55 100% 0 0
2 MRF International Limited Subsidiary 94.66%
5 Other than permanent (G) 1 1 100% 0 0 -No-
3 MRF Lanka (P) Ltd Subsidiary 100%
Total differently abled
6 56 56 100% 0 0 4 MRF SG PTE. LTD Subsidiary 100%
workers (F + G)

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VI. CSR

24. (i) Whether CSR is applicable as per section 135 of Companies Act, 2013: (Yes/No) - Yes
(ii) Turnover (revenue from operations) (in Rs.Cr ) – 24673.68
(iii) Net worth (in Rs.Cr )– 16440.65

VII. Transparency and Disclosure Compliances

25.Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible Business Conduct:

FY 2023-24 FY 2022-23

Current Financial Year Previous Financial Year

Grievance Redressal
Mechanism in Place
Stakeholder group
(Yes/No) (If yes, then Number of Number of
from whom complaint
provide web-link for Number of complaints Number of complaints
is received
grievance redress complaints pending complaints pending
Remarks Remarks
policy) filed during resolution at filed during the resolution at
the year close of the year close of the
year year

Communities Yes 1 1 - 0 0 -

Shareholders
Yes 20 2 - 9 0 -
Investors (Other than
shareholders) Yes 0 0 - 0 0 -

Employees and workers Yes 0 0 - 2 1 -

Customers Yes 41206 0 - 47837 1 -

Value Chain Partners No 0 0 - 0 0 -

Other (please specify) - - - - - - -

Weblink: https://www.mrftyres.com/investor-relations/mrf-mechanism-for-grievance-redressal

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26. Overview of the entity’s material responsible business conduct issues:
Please indicate material responsible business conduct and sustainability issues pertaining to environmental and social matters that present a risk or an opportunity to your business,
rationale for identifying the same, approach to adapt or mitigate the risk along-with its financial implications, as per the following format

Indicate Financial implications

whether risk of the risk or
S. No. Material identified issue or Rationale for identifying the risk / opportunity In case of risk, approach to adapt or mitigate opportunity (Indicate
opportunity positive or negative
(R/O) implications)
MRF has taken multiple measures to reduce its
In the current year, we have assessed our emission through utilization of biofuels,
emission and have taken a long term target of renewable energy and improving its efficiency
1 Carbon Emissions R Negative
becoming carbon neutral by FY 2050 for Scope 1 across operations with a medium term target of
and 2 (Base year FY 2023). 25% reduction of Scope 1 and 2 emission
intensity by FY 2028 (Base year FY 2023)
MRF conducted water stress assessment (WRI
Water is a critical resource for our operations. We Aqueduct) and performance assessment as per
2 Water Management R recognise the necessity to improve our water International Water Stewardship Standard Negative
efficiency and to minimise our water costs. (AWS) to identify hotspots and improvement
areas
Better energy management would enable
3 Energy Management O Positive
reduction in the cost of energy.
As we are in the process of reducing our carbon
footprint, we are exploring renewable energy
Opportunities in Renewable interventions apart from our consistent initiatives
4 O Positive
Energy around improving energy efficiencies and
improving conservation of resources year-on-
year.
The hazardous waste is disposed off through
The hazardous waste generation and toxic the authorised agencies prescribed under the
emission from our operations are minimal in respective State Pollution Control Board. In our
5 Toxic Emission and Waste R Negative
quantity and nature. These needs be disposed operation, toxic emissions are at negligible
and controlled responsibly. level. We have adopted adequate engineering
controls in our system to control toxic emission.
Occupational Health and safety System is an
integral part of MRF operations. Our objective is
Occupational Health and
6 O to drive down accidents and ill health by Positive
Safety
monitoring health and safety performance and
producing guidance.

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SECTION B – MANAGEMENT AND PROCESS DISCLOSURES
This section is aimed at helping businesses demonstrate the structures, policies and processes put in place towards adopting the NGRBC Principles and Core Elements.

At MRF, we have a robust management framework in place which enables us to align with the NGRBC Principles with respect to structure and policies to ensure that we continue to deliver
our best in an ethical and responsible way. This encompasses transparent and principled business practices that hold us accountable, as well as protect the interests of our stakeholders,
including customers and employees.
Disclosure Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
Policy and Management Processes
1. a) Whether your entity’s policy/policies cover each principle and its core elements of the NGRBCs. (Yes/No) Y Y Y Y Y Y Y Y Y
b) Has the policy been approved by the Board? (Yes/No) Y Y Y Y Y Y Y Y Y
c) Web Link of the Policies, if available :https://www.mrftyres.com/downloads/download.php?filename=Business-Responsibility-Policy.pdf
2. Whether the entity has translated the policy into procedures. (Yes / No) Y Y Y Y Y Y Y Y Y
3. Do the enlisted policies extend to your value chain partners? (Yes/No)
Y Y Y Y Y Y Y Y Y
(Note: Currently the coverage extents to all our A+ and A category suppliers)
4. Name of the national and international codes / All the 10 Manufacturing Plants are certified for ISO 9001:2015 and IATF 16949:2016 as part of Quality Management
certifications /labels/ standards System. Arakkonam and Medak plants are certified for AS9100D:2016 for Aerospace Quality Management System. The
(e.g. Forest Stewardship Council, Fairtrade, Rainforest Company’s products are certified for different product standards like BIS (Bureau of Indian Standards) and several country
Alliance, Trustea) standards specific quality standards to which we export.
(e.g. SA 8000, OHSAS, ISO, BIS) adopted by your entity Regarding ISO 45001:2018 - Occupational Health and Safety Management System Standard and ISO 14001:2015
and mapped to each principle. Environmental Management System Standard, 9 of our 10 plants are certified. Since the 10th Plant (Dahej in Gujarat) is a
new plant, it is in the process of being certified.
5. Specific commitments, goals and targets set by the
The company has taken following target in current year: Attain Carbon Neutral by FY 2050 for Scope 1 and 2.
entity with defined timelines, if any.
6. Performance of the entity against the specific Performance with respect to these targets would be tracked and assessed once these targets are set.
commitments, goals and targets along-with reasons in We carried out several energy optimisation projects across all our plants to reduce our scope 1 emission intensities.
case the same are not met. Renewable energy contribution in the current year is 12% in our overall electricity consumption (through Renewable PPAs)
for reducing our Scope 2 emissions.
Governance Leadership and Oversight
7. Statement by director responsible for the business responsibility report, highlighting ESG related challenges, targets, and achievements.
Sustainability has become a business imperative and is a continuous process that requires collaboration from all spheres of the value chain to achieve the unified goal of a sustainable
future. To continue with our progress from last year, we have formally adopted our nation’s goal to accelerate the sustainability agenda here at MRF. Advancing sustainability and addressing
ESG (Environmental, Social, and Governance) challenges within our operations, we have taken a long-term target of achieving carbon neutral by FY 2050 for Scope 1 and 2.
Further, in the current year the Company’ operations have been able to achieve 12% of renewable energy mix in our electricity consumption for reducing our Scope 2 emissions. We have
taken measures in reducing carbon emissions, optimizing resource usage, promoting employee welfare and fostering community engagement. Through innovative initiatives and strategic
partnerships, we strive to achieve these goals while ensuring long-term profitability and positive societal impact.
Notably our manufacturing plants won the following awards in the current financial year.
 MRF Medak Plant won the CII Award for “Excellence in Best Roof Water Management” - Industrial Water Management Competition in the Southern Region, 2023.
 MRF Tiruvottiyur Plant Won the CII Award for “Innovative Water Management Initiatives” - Industrial Water Management Competition in the Southern Region 2023
 MRF Pondicherry won the CII Award for “Excellence in Water Management” - Industrial Water Management Competition in the Southern Region, 2023.
 MRF Goa Plant won the 3rd place (“Gomant Suraksha Puraskar”) GTS awards 2023 in category D, organized by Green Triangle Society, Goa
Our key performance regarding the 9 NGRBC principles are mentioned in Section C of our Business Responsibility and Sustainability Report.

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(a) Mr. K M Mammen (DIN : 00020202), Chairman andManaging Director,
8. Details of the highest authority responsible for implementation and oversight of the Tel. No. : +91 44 28292777 E-mail Id : [email protected].
Business Responsibility policy (ies). (b) Mr. Arun Mammen (DIN : 00018558), Vice Chairman and Managing Director,
Tel. No. : +91 44 28292777,E-mail Id : [email protected]
9.Does the entity have a specified Committee of the Board/ Director responsible for Yes, Risk Management committee.
decision making on sustainability related issues? (Yes / No). If yes, provide details.
10. Details of Review of NGRBCs by the Company:
Subject for Review Indicate whether review was undertaken by Director /
Frequency (Annually/ Half - yearly/ Quarterly/ Any other
Committee of the Board/ Any other Committee
– please specify)
P1 P2 P3 P4 P5 P6 P7 P8 P9 P1 P2 P3 P4 P5 P6 P7 P8 P9
Performance against above policies and follow up action Y Y Y Y Y Y Y Y Y Q Q Q Q Q Q Q Q Q

Compliance with statutory requirements of relevance to

Y Y Y Y Y Y Y Y Y Q Q Q Q Q Q Q Q Q
the principles, and, rectification of any non-compliances

11.Has the entity carried out independent

assessment/ evaluation of the working of its Regular reviews of our company policies are conducted by the internal audit team of MRF. Additionally, certain policies like
policies by an external agency? (Yes/No). If yes, Health and Safety and Quality are subjected to external audits and certification processes.
provide the name of the agency.

12. If answer to question (1) above is “No” i.e. not all Principles are covered by a policy, reasons to be stated: Not applicable
Questions P1 P2 P3 P4 P5 P6 P7 P8 P9

The entity does not consider the Principles material to its business (Yes/No)

The entity is not at a stage where it is in a position to formulate and implement the policies on specified
principles (Yes/No)

The entity does not have the financial or/human and technical resources available for the task (Yes/No)
Not Applicable

It is planned to be done in the next financial year (Yes/No)

Any other reason (please specify)

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SECTION C – PRINCIPLE WISE PERFORMANCE DISCLOSURE
Principle 1 – Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical, Transparent, and Accountable
Essential Indicators
1. Percentage coverage by training and awareness programmes on any of the principles during the financial year:
Total number of % of persons in
training and respective category covered
Segment Topics/principles covered under the training and its impact
awareness by the awareness
programmes held programmes
Board of directors 3 Training and awareness program on Sustainability 100%
Key managerial personnel* 3 Training and awareness program on Sustainability 100%
Employees other than Board Code of conduct, workplace ethics, Sustainability and climate change, Leadership
344 60%
of Directors and KMPs training, environmental Training, Safety Training, Skill upgradation Training
Safety Training, Quality Training, Process Training, Behavioural Training and
Workers** 177 41%
Upskilling
* Excludes Managing Directors / Whole-time Directors.
** Note: The above figures represents Permanent Workers only.
2.Details of fines / penalties /punishment/ award/ compounding fees/ settlement amount paid in proceedings (by the entity or by directors / KMPs) with
regulators/ law enforcement agencies/ judicial institutions, in the financial year, in the following format (Note: the entity shall make disclosures on the basis of materiality
as specified in Regulation 30 of SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 and as disclosed on the entity’s website):
Monetary
NGRBC Name of the regulatory/ enforcement Amount (In Has an appeal been
Brief of the Case
Principle agency/ judicial institutions INR) preferred? (Yes/No)
Penalty/ Fine Nil Nil Nil Nil Nil
Settlement Nil Nil Nil Nil Nil
Compounding fee Nil Nil Nil Nil Nil
Non-Monetary
Has an appeal been
NGRBC Principle Name of the regulatory/ enforcement agency/ judicial institutions Brief of the Case
preferred? (Yes/No)
Imprisonment Nil Nil Nil Nil
Punishment Nil Nil Nil Nil
3. Of the instances disclosed in Question 2 above, details of the Appeal/ Revision are preferred in cases where monetary or non-monetary action has been
appealed. Not applicable
Case Details Name of the regulatory/ enforcement agency/ judicial institutions
Nil Nil
4. Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available, provide a web link to the policy.
Yes. The “MRF Principles of Sustainability and Responsible Business Conduct” declares the Company’s commitment to conduct its business in all respects, according to ethical, professional
and legal standards, which prevail in the industrial sector in which the Company conducts its normal business. Further it mandates every employee of the Company to ensure that the
interests of the Company are not adversely impacted on account of their personal interests/dealings and avoid engaging in illegal practices.
Please refer the MRF Principles of Sustainability and Responsible Business Conduct” which is available on our website in the following link:
https://www.mrftyres.com/downloads/download.php?filename=Business-Responsibility-Policy.pdf

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5. Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law enforcement agency for the charges of bribery/ corruption.
FY 2023-24 FY 2022-23
Directors Nil Nil
KMPs Nil Nil
Employees Nil Nil
Workers Nil Nil

6. Details of complaints with regard to conflict of interest:

FY 2023-24 FY 2022-23
Number Remarks Number Remarks
Number of complaints received in relation to issues of Conflict of Interest of the Directors Nil Nil Nil Nil
Number of complaints received in relation to issues of Conflict of Interest of the KMPs Nil Nil Nil Nil

7. Provide details of any corrective action taken or underway on issues related to fines/penalties/action taken by regulators/ law enforcement agencies/ judicial
institutions, on cases of corruption and conflicts of interest: Not applicable.

8. Number of days of accounts payables ((Accounts payable *365) / Cost of goods/services procured) in the following format:
FY 2023-24 FY 2022-23
Number of days of accounts payables 71 66

9. Open-ness of business
Provide details of concentration of purchases and sales with trading houses, dealers and related parties along-with loans and advances and investments, with related parties in the following
format:
Parameter Metrics FY 2023-24 FY 2022-23
a. Purchases from trading houses as % of total purchases 19.41% 17.37%
Concentration of
b. Number of trading houses where purchases are made from 11 11
Purchases
c. Purchases from top 10 trading houses as % of total purchases from trading houses 99.97% 99.99%
a. Sales to dealers / distributors as % of total sales 77.97% 76.74%
Concentration of b. Number of dealers / distributors to whom sales are made 6182 5910
Sales
c. Sales to top 10 dealers / distributors as % of total sales to dealers / distributors 4.99% 5.27%

a. Purchases (Purchases with related parties / Total Purchases) 16.20% 14.64%

b. Sales (Sales to related parties / Total Sales) 0.01% 0.03%
Share of RPTs in
c. Loans and advances (Loans and advances given to related parties / Total loans and advances) - -
d. Investments (Investments in related parties / Total Investments made) - -
Note: Trading Houses refer to suppliers who act as traders and are involved in import of commodities from various countries.

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Principle 2 – Businesses should provide goods and services in a manner that is sustainable and safe.

Essential Indicators

1. Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the environmental and social impacts of product and
processes to total R&D and capex investments made by the entity, respectively.

FY 2023-24 FY 2022-23 Details of improvements in environmental and social impacts

The expenditure is for R&D related to product improvements in emission reduction and carbon
R&D 27.92% 17.50%
footprint.

Conservation of water, energy, reduction of emission and carbon footprint, wastewater recycling
Capex 3.97% 4.23%
and reusing across plants.

2. a. Does the entity have procedures in place for sustainable sourcing? (Yes/No) :
Yes. MRF promotes sustainable sourcing and continually works towards increasing the value of purchases made from such suppliers. To support sustainable sourcing, we encourage
our suppliers and vendors to adopt suitable practices in their operations. Majority of our raw materials are naturally sourced and we further expect our suppliers to adhere to our
Supplier Sustainability Policy and Green Procurement Policy.
b. If yes, what percentage of inputs were sourced sustainably?
69% (% by value procured) for the financial year 2023-24. These are emanating out of purchase from A+ and A category supplier, who are covered under Supplier Sustainable
Policy and Green Procurement Policy and from B category suppliers who have ISO 14001 certification.

3. Describe the processes in place to safely reclaim your products for reusing, recycling, and disposing at the end of life, for (a) Plastics (including packaging)
(b) E-waste (c) Hazardous waste and (d) other waste.

All the plastic waste, E-waste, hazardous waste and other wastes are systematically segregated and disposed in accordance with regulatory requirements.
4. Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities (Yes / No). If yes, whether the waste collection plan is in line with the EPR plan
submitted to Pollution Control Boards?

Yes, EPR is applicable to us for end of life tyres, plastics (as importer and brand owner). We are in the process of complying with the waste collection plan.

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Principle 3: Businesses should respect and promote the well-being of all employees, including those in their value chains
Essential Indicators

1. a. Details of measures for the well-being of employees.

% of employees covered by
Category Total Health insurance Accident insurance Maternity benefits Paternity benefits Day care facilities
(A) Number (B) % (B / A) Number (C) % (C / A) Number (D) % (D/A) Number (E) % (E / A) Number (F) % (F / A)

Permanent employees
Male 6697 6697 100% 6697 100% NA - NA - NA -
Female 43 43 100% 43 100% 43 100% NA - NA -
Total 6740 6740 100% 6740 100% NA - NA - NA -
Other than Permanent employees
Male 150 138 92% 107 71% NA - NA - NA -
Female 1 1 100% 1 100% 1 100% NA - NA -

Total 151 139 92% 108 72% NA - NA - NA -

Note: All Employees are covered under well-being measures as per applicable legal requirements.

b. Details of measures for the well-being of workers:

% of workers covered by
Total Health insurance Accident insurance Maternity benefits Paternity benefits Day care facilities
Category (A)
Number (B) % (B / A) Number (C) % (C / A) Number (D) % (D / A) Number (E) % (E / A) Number (F) % (F / A)

Permanent workers
Male 12469 12469 100% 12469 100% NA - NA - NA -
Female - - - - - - - NA - NA -
Total 12469 12469 100% 12469 100% NA - NA - NA -
Other than Permanent workers
Male 13663 13663 100% 13663 100% NA - NA - NA -
Female 343 343 100% 343 100% 343 100% NA - NA -
Total 14006 14006 100% 14006 100% NA - NA - NA -
Note: All workers are covered under well-being measures as per applicable legal requirements.

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c. Spending on measures towards well-being of employees and workers (including permanent and other than permanent) in the following format
FY 2023-24 FY 2022-23
Cost incurred on well-being measures as a % of total revenue of the company 0.75 % 0.77 %
Note: the above value represents both statutory and non- statutory measures aimed for well -being of employees

2. Details of retirement benefits.

FY 2023-24 FY 2022-23
No. of employees No. of workers Deducted and No. of employees No. of workers Deducted and deposited
Benefits
covered as a % of covered as a % of deposited with the covered as a % of total covered as a % of with the authority
total employees total workers authority (Y/N/N.A.) employees total workers (Y/N/N.A.)
PF 100% 100% Y 100% 100% Y
Gratuity 100% 100% Y 100% 100% Y
ESI 100% 100% Y 100% 100% Y
Others – please specify - - - - - -
Note: The above figures represent only pertain only to permanent employees and permanent workers based on the applicability.

3. Accessibility of workplaces
Are the premises / offices of the entity accessible to differently abled employees and workers, as per the requirements of the Rights of Persons with Disabilities Act, 2016?
If not, whether any steps are being taken by the entity in this regard.
Yes, MRF’s offices are accessible to differently abled employees and workers. Further, initiatives to improve accessibility across our plants and offices are being assessed.

4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so, provide a web link to the policy.
Yes, MRF is an equal opportunity employer. Aspects of equal opportunity and rights of persons with disabilities have been included in our HR policies and further emphasised in our
MRF Principles of Sustainability and Responsible Business Conduct.
Weblink: https://www.mrftyres.com/downloads/download.php?filename=Business-Responsibility-Policy.pdf

5. Return to work and Retention rates of permanent employees and workers that took parental leave.
Permanent employees Permanent workers
Gender
Return to work rate Retention rate Return to work rate Retention rate
Male NA NA NA NA
Female NA# NA NA* NA
Total - - - -
#
No Female staff have availed maternity benefits during the period
* There are no permanent women workers
6. Is there a mechanism available to receive and redress grievances for the following categories of employees and workers? If yes, give details of the
mechanism in brief.
(Yes/No): Yes. (If yes, then give details of the mechanism in brief)
Permanent workers
Grievances of workmen are submitted either to the reporting supervisory authority or through recognised unions or as per the procedure set out
Other than permanent workers
in the Standing Orders. Employees can submit their grievances to their reporting supervisory authority or head of Human Resources function.
Permanent employees Employees/workmen concerned can also use the Whistle Blower Policy / Vigil Mechanism or in case of grievances under the Prevention of
Sexual Harassment Act, using the mechanism provided under the Act.
Other than permanent employees

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7. Membership of employees and workers in association(s) or Unions recognized by the listed entity:

FY 2023-24 FY 2022-23
Total employees No. of employees/workers in Total No. of employees/workers in
Category / workers in the respective category, who % employees/workers in the respective category, who
% (D/C)
respective are part of the association(s) (B/A) the respective are part of the association(s)
category (A) or Union (B) category (C) or Union (D)
Total Permanent Employees
-Male 6697 0 0% 6762 0 0%
-Female 43 0 0% 42 0 0%
Total Permanent Workers
-Male 12469 9974 80% 12246 10024 82%
-Female 0 0 0% 0 0 0%

8. Details of training given to employees and workers:

FY 2023-24 FY 2022-23
Category On health and safety measures On skill upgradation Total On health and safety measures On skill upgradation
Total (A)
No. (B) % (B / A) No. (C) % (C / A) (D) No. (E) % (E / D) No.(F) % (F / D)

Employees

Male 6697 897 13% 3127 47% 6762 1735 26% 3151 47%

Female 43 5 12% 18 42% 42 5 12% 18 43%

Total 6740 902 13% 3145 47% 6804 1740 26% 3169 47%

Workers

Male 12469 1221 10% 3848 31% 12246 1600 13% 6195 51%

Female 0 0 0 0 0 0 0 0 0 0

Total 12469 1221 10% 3848 31% 12246 1600 13% 6195 51%
Note: The above figures represent Permanent Employees and Permanent Workers.

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9. Details of performance and career development reviews of employees and workers:

FY 2023-24 PY 2022-23
Category
Total (A) No.(B) % (B/ A) Total (D) No.(E) % (E / D)
Employees
Male 6697 6697 100.00% 6762 6762 100.00%
Female 43 43 100.00% 42 42 100.00%
Other 0 0 0.00% 0 0 0.00%
Total 6740 6740 100.00% 6804 6804 100.00%
Workers
Male 12469 12469 100.00% 12246 12246 100.00%
Female 0 0 0.00% 0 0 0.00%
Other 0 0 0.00% 0 0 0.00%
Total 12469 12469 100.00% 12246 12246 100.00%
Note 1: Workers are covered by Long Term Settlements between the Workers Union (on behalf of the workmen) and the Company which are renewed at a fixed periodicity. The remuneration
terms are revised at the time of renewal and as such there is no annual performance appraisal process. However, workmen are considered for promotion to supervisor/staff category on a need
basis based on their performance.

Note 2: The employees for the year 2023-24 will be considered for performance and career development review during July 2024.

10. Health and safety management system:

a. Whether an occupational health and safety management system has been implemented by the entity? (Yes/ No). If yes, what is the coverage of such a system?
Yes, an Occupational Health and Safety Management system is extended to all our manufacturing facilities.
b. What are the processes used to identify work-related hazards and assess risks on a routine and non-routine basis by the entity?
Hazard Identification and Risk Assessment (HIRA) is used to identify all the hazards, assess risks based on the probability and severity and take controls based on the hierarchy of risk
control.
c. Whether you have processes for workers to report the work-related hazards and to remove themselves from such risks.
Yes, the following processes are available for the workers to report work-related hazards:
1. Workers report work-related hazards in the Safety Committee Meeting.
2. Hazards in the shop floor are communicated by the workers to the Supervisors for further action.
3. Safety Audits by Area In-charges are also a platform for workers to report work-related hazards.

d. Do the employees/ workers of the entity have access to non-occupational medical and healthcare services?
Yes. All our Occupational Health centres extend services for non-occupational related medical services. MRF conducts employee health check-up programmes on regular intervals.

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11. Details of safety related incidents, in the following format:
Safety incident/number Category FY 2023-24 FY 2022-23
Employees 0.02 0.10
Lost Time Injury Frequency Rate (LTIFR) (per one-million-person hour worked)
Workers 0.70 0.82
Employees 4 8
Total recordable work-related injuries
Workers 84 103
Employees 0 0
No. of fatalities
Workers 0 1
Employees 0 0
High consequence work-related injury or ill-health (excluding fatalities)
Workers 0 0

12. Describe the measures taken by the entity to ensure a safe and healthy workplace.
• Initiatives to reduce the speed of Powered Material Handling Equipment (MHE) have been implemented across all plants. The speed has been significantly lowered in both reverse
and forward movements of the MHEs.
• MHE campaign conducted in all the facilities for creating awareness among the workers on the safe usage of MHE equipment
• Road safety trainings carried out using simulators, to enhance awareness among employees, aiming to mitigate accidents within and outside the facility.

13. Number of complaints on the following made by employees and workers

FY 2023-24 FY 2022-23
Filed during the year Pending resolution at the end of year Remarks Filed during the year Pending resolution at the end of year Remarks
Working
0 0 - 0 0 -
conditions
Health and safety 0 0 - 0 0 -

14. Assessments for the year

% of your plants and offices that were assessed (by entity or statutory authorities or third parties)*
Health and safety practices 100%
Working conditions 100%
*Note: All sites were assessed by the MRF Limited’s Internal teams on a periodic basis. Additionally, nine of the company’s plants have been assessed by third party certification agencies.

15. Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on significant risks/concerns arising from
assessments of health and safety practices and working conditions.
• Automated Storage and Retrieval Facilities have been installed to reduce the manual material handling activity related incidents in the facilities.
• Fall protection system provided in truck parking zones to prevent human fall from trucks during loading and unloading activities.
• Injury related to manual tyre shifting activity has been reduced by providing a tyre transfer conveyor system.

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Principle 4: Businesses should respect the interests of and be responsive to all its stakeholders
Essential Indicators
1. Describe the processes for identifying key stakeholder groups of the entity.
Any individual or group of individuals or institutions that adds value to the business chain of the corporation or is materially affected by entity’s decision is identified as a core stakeholder. At
present, the given stakeholder groups identified have immediate impact on the operations and working of the company. MRF has recognized both, internal stakeholder (which includes
employees and leadership), and external stakeholder (which includes regulators, investors, suppliers, customers and community).
At MRF, we recognize stakeholder engagement as an integral part of our operations. We strive to create long-term sustainable value for all our stakeholders including employees, customers,
investors, suppliers and communities. In order to do so, we regularly engage and collaborate with our stakeholders to develop an understanding of their needs and expectations.
2.List stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder group.
Stakeholder group Whether identified Channels of communication (Email, SMS, Frequency of engagement Purpose and scope of engagement including
as vulnerable and Newspaper, Pamphlets, Advertisement, (Annually/ half-yearly/ key topics and concerns raised during such
marginalised group Community meetings, Notice board, quarterly / others – please engagement
(Yes/No) Website), Other specify)
• Employee benefits
• Equal opportunities
▪ Intranet Portal
• Recognition
▪ Functional and cross-functional committees
• Learning and development
Employees No ▪ Leader’s talk On a regular basis
• Safety and well-being
▪ Regular Employee Communication Forums
• Performance review and career development
▪ Notice Board
• Business update
• Vision of the organisation
▪ Customer Service Support
• Customer feedback
Customers No ▪ Customer Satisfaction Survey On a regular basis
• Resolution of their queries• Advertising
▪ Email
▪ Supplier and Vendor meets • Resolving queries
▪ Face-to-face and electronic • Assessing performance
Suppliers and Vendors No correspondence Half yearly • Recognition and engagement activities
▪ Supplier Audits • Undertaking discussion on Sustainability
▪ Email Parameters
Newspaper advertisement, website, Annual Quarterly/ Annual / Event
To update them about important developments in
General Meetings, disclosures to stock Based
the Company
Investors / Shareholders No exchanges
Email, Paper correspondence, Physical
Need based Address their grievances
meetings, telephone
▪ Community consultations
▪ Community events
Community Yes Periodic • Community development
▪ Government Authorities
▪ Email
▪ Annual reports • Policy Advocacy
Regulatory and ▪ Making representations whenever needed • Deliberations and inputs on regulations and
No On a need basis
government bodies ▪ Formal dialogues policies that have bearing on our operations and
▪ Through trade associations businesses

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Principle 5: Businesses should respect and promote human rights
Essential Indicators

1. Employees and workers who have been provided training on human rights issues and policy(ies) of the entity, in the following format:
FY 2023-24 FY 2022-23
Category No. of employees / workers No. of employees / workers
Total (A) % (B / A) Total (C) % (D / C)
covered (B) covered (D)

Employees
Permanent 6740 793 12% 6804 2347 34%
Other than permanent 151 0 0% 126 0 0%
Total employees 6891 793 12% 6930 2347 34%
Workers
Permanent 12469 2148 17% 12246 2847 23%
Other than permanent 14006 0 0% 15420 0 0%
Total workers 26475 2148 8% 27666 2847 10%

2. Details of minimum wages paid to employees and workers

FY 2023-24 FY 2022-23
Category
Equal to minimum wage More than minimum wage Equal to minimum wage More than minimum wage
Total (A) Total (D)
No. (B) % (B / A) No. (C) % (C / A) No. (E) % (E / D) No. (F) % (F / D)
Employees
Permanent 6740 0 0% 6740 100% 6804 0 0% 6804 100%
Male 6697 0 0% 6697 100% 6762 0 0% 6762 100%
Female 43 0 0% 43 100% 42 0 0% 42 100%
Other than permanent 151 0 0% 151 100% 126 0 0% 126 100%
Male 150 0 0% 150 100% 125 0 0% 125 100%
Female 1 0 0% 1 100% 1 0 0% 1 100%
Workers
Permanent 12469 0 0% 12469 100% 12246 0 0% 12246 100%
Male 12469 0 0% 12469 100% 12246 0 0% 12246 100%
Female 0 0 0% 0 0% 0 0 0% 0 0%
Other than permanent 14006 0 0% 14006 100% 15420 0 0% 15420 100%
Male 13663 0 0% 13663 100% 15121 0 0% 15121 100%
Female 343 0 0% 343 100% 299 0 0% 299 100%

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3.Details of remuneration/salary/wages
a. Median remuneration / wages:
Male Female
Median remuneration/ salary/ wages of respective Median remuneration/ salary/ wages of
Number Number
category respective category
The non-executive board members
The non-executive board members receive only sitting
receive only sitting fees for attending
fees for attending meetings of the board/ committee.
Board of Directors (BoD) Non-Executive 12 3 meetings of the board/ committee.
Hence, computation of median remuneration is not
Hence, computation of median
relevant
remuneration is not relevant
Board of Directors (BoD) Executive 5 22859103 0 -
Key managerial personnel 2 18685517 0 -
Employees other than BoD and KMP 6690 680141 43 998237
Workers 12469 699530 0

b. Gross wages paid to females as % of total wages paid by the entity, in the following format:
FY 2023-24 FY 2022-23
Gross wages paid to females as % of total wages 0.66% *
* Reporting requirement is applicable from current financial year 2023-24.

4. Do you have a focal point (individual/ committee) responsible for addressing human rights impacts or issues caused or contributed to by the business? (Yes/No)
Yes, Head of Human Resource is the designated focal point for addressing human rights impacts or issues.

5. Describe the internal mechanisms in place to redress grievances related to human rights issues.
The whistle blower policy contains provision that provides guidance to report human rights related issues that could be reported by our employees, workers, senior management and other
stakeholders. Further we have internal committee to address any issues related to sexual harassment.

6. Number of complaints on the following made by employees and workers:

FY 2023-24 FY 2022-23
Filed during the Pending resolution Filed During the Pending resolution
Remarks Remarks
year at the end of year year at the end of year
Sexual harassment Nil - - Nil - -

Discrimination at workplace Nil - - Nil - -

Child labour Nil - - Nil - -

Forced labour/Involuntary labour Nil - - Nil - -
Wages Nil - - Nil - -
Other human rights-related issues Nil - - Nil - -

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7. Complaints filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, in the following format:

FY 2023-24 FY 2022-23

Total Complaints reported under Sexual Harassment on

of Women at Workplace (Prevention, Prohibition and Nil Nil
Redressal) Act, 2013 (POSH)
Complaints on POSH as a % of female employees /
Nil Nil
workers

Complaints on POSH upheld Nil Nil

8. Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.

MRF strives to maintain a healthy, safe and productive work environment that is free from discrimination or any form of harassment for all internal and external stakeholders. A trained
Internal Complaints Committee has been constituted for timely and impartial resolution for any complaints that may arise in this regard. Further, our Code of Conduct and the mechanism
under the Prevention of Sexual Harassment Act ensures that any discrimination and harassments are avoided.

9. Do human rights requirements form part of your business agreements and contracts? (Yes/No)
Yes, aspects of human rights are covered as part of our agreements with Vendors.

10. Assessments of the year

% of your plants and offices that were assessed (by the entity or statutory
authorities or third parties)
Child labour 100%

Forced/involuntary labour 100%

Sexual harassment 100%

Discrimination at workplace 100%

Wages 100%

Others – please specify -

11. Provide details of any corrective actions taken or underway to address significant risks/concerns arising from the assessments at Question 10 above.
Nil

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Principle 6: Businesses should respect and make efforts to protect and restore the environment
Essential Indicators

1. Details of total energy consumption (in Joules or multiples) and energy intensity
Parameter Unit FY 2023-24 FY 2022-23
From renewable sources
Total electricity consumption (A) GJ 438163 *
Total fuel consumption (B) GJ - *
Energy consumption through other sources (C) GJ - *
Total energy consumption (A+B+C) GJ 438163 *
From non-renewable sources
Total electricity consumption (D) GJ 3103577 3150668
Total fuel consumption (E) GJ 5222799 4974712
Energy consumption through other sources (F) GJ - -

Total energy consumed from non-renewable sources (D+E+F) GJ 8326376 8125380

Total energy consumed (A+B+C+D+E+F) GJ 8764539 8125380

Energy intensity per rupee of turnover
GJ/Cr. Rs 355.22 359.88
(Total energy consumption/ Revenue from operations)

Energy intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP)
GJ/Cr.Rs 8127.39 *
(Total energy consumed (GJ) / Revenue from operations adjusted for PPP (Rs.Cr )#

Energy intensity in terms of physical output GJ/ Tonns 8.93 *

* Reporting requirement is applicable from current financial year 2023-24.
#
The PPP conversion factor: 22.88 is based on data published by World Bank for India for the year 2022.
Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.
Yes, independent assurance has been carried out by SGS India Private Limited The reporting boundary is limited to the 10 manufacturing plants and R&D centres.

2.Does the entity have any sites/facilities identified as designated consumers (DCs) under the performance, achieve, and trade (PAT) Scheme of the
Government of India? (Y/N) If Yes, disclose whether targets set under the PAT scheme have been achieved. In case targets have not been achieved, provide
the remedial action taken if any.
Not applicable.
Note: There are no sites/facilities that have been identified as Designated Consumers (DCs) under the Performance, Achieve and Trade (PAT) Scheme of the Government of India.

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3.Provide details of the following disclosures related to water, in the following format:
Parameter FY 2023-24 FY 2022-23
Water withdrawal by source (in kilolitres)
(i) Surface water 555212# 0
(ii) Groundwater 891653 1183267
(iii) Third-party water 1428533 1595494
(iv) Seawater / desalinated water 51867 0
(v) Others 131233* 119035
Total volume of water withdrawal (in kilolitres) (i + ii + iii + iv + v) 3058498 2897796
Total volume of water consumption (in kilolitres) 3058498 2897796
Water intensity per rupee of turnover: Kilo Litres/ Rs.Cr. (Total water consumed / Revenue
123.96 128.34
from operations)
Water intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP)
2836.12 **
(Total water consumption (KL) / Revenue from operations adjusted for PPP (Rs.Cr )
Water intensity in terms of physical output 3.12 **
*Others includes water utilised from rainwater harvesting ponds.
** Reporting requirement is applicable from current financial year 2023-24.
#Water classification for water withdrawal has been regrouped in the current year.
Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.
Yes, independent assurance has been carried out by SGS India Private Limited The reporting boundary is limited to the 10 manufacturing plants and R&D centres.

4. Provide the following details related to water discharged

FY 2023-24 FY 2022-23
Water discharge by destination and level of treatment (in kilolitres)
(i) To Surface water
No treatment Nil Nil
With treatment – please specify level of treatment Nil Nil
(ii) To Groundwater
No treatment Nil Nil
With treatment – please specify level of treatment Nil Nil
(iii) To Seawater
No treatment Nil Nil
With treatment – please specify level of treatment Nil Nil
(iv) Sent to third-parties
No treatment Nil Nil
With treatment – please specify level of treatment Nil Nil
(v) Others
No treatment Nil Nil
With treatment – please specify level of treatment Nil Nil
Total water discharged (in kilolitres) Nil Nil
Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.
Yes, independent assurance has been carried out by SGS India Private Limited The reporting boundary is limited to the 10 manufacturing plants and R&D centres.
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5. Has the entity implemented a mechanism for zero liquid discharge? If yes, provide details of its coverage and implementation.

All our Plants have Zero Liquid discharges mechanism except Kottayam Plant, where during rainy season it is permitted to discharge as per the guidelines by the Pollution Control Board.

6. Please provide details of air emissions (other than GHG emissions) by the entity:

Parameter Unit FY 2023-24 FY 2022-23

NOx µg/m3 Min:9.2- Max:29.1 Min: 11 - Max: 62

SOx µg/m3 Min:3- Max:37.6 Min: 4 - Max: 39

PM2.5- Min: 11.4 - Max: 48 PM2.5- Min: 10 - Max: 58

Particulate matter (PM) µg/m3
PM10 - Min: 40.6 - Max: 87.3 PM10 - Min: 29 - Max: 98

Persistent organic pollutants (POP) µg/m3 NA NA

We are in the process of establishing

Volatile organic compounds (VOC) mg/m3 BDL
monitoring systems across all our plants.

Hazardous air pollutants (HAP) µg/m3 BDL BDL

Others – please specify - NA NA

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.
No independent assurance has been carried out in the current reporting period.

Note: BDL-Below Detection Limit

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7. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) and its intensity:

Parameter Unit FY 2023-24 FY 2022-23

Total Scope 1 emissions (Break-up of the GHG into CO2, CH4,

Metric tonnes of CO2 equivalent 590847 567325
N2O, HFCs, PFCs, SF6, NF3, if available)

Total Scope 2 emissions (Break-up of the GHG into CO2, CH4,

Metric tonnes of CO2 equivalent 612094 603254
N2O, HFCs, PFCs, SF6, NF3, if available)

Total Scope 1 and Scope 2 emission intensity per rupee of

turnover (Total Scope 1 and Scope 2 GHG emissions / Revenue Metric tonnes of CO2 equivalent/ Cr. Rs 48.75 51.85
from operations)
Total Scope 1 and Scope 2 emission intensity (MT CO2e) per
rupee of turnover adjusted for Purchasing Power Parity
PPP(Cr.Rs) Metric tonnes of CO2 equivalent/ Cr.Rs 1115.49 *
(Total Scope 1 and Scope 2 GHG emissions / Revenue from
operations adjusted for PPP)

Total Scope 1 and Scope 2 emission intensity in terms of Metric tonnes of CO2 equivalent/
1.23 *
physical output Tonnes

* Reporting requirement is applicable from current financial year 2023-24.

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.
Yes, independent assurance has been carried out by SGS India Private Limited The reporting boundary is limited to the 10 manufacturing plants and R&D centres.

8. Does the entity have any project related to reducing greenhouse gas emission? If yes, then provide details.

Yes, following are the overview of current projects and initiatives in reducing greenhouse gas emission:

 All the Plants are adopting Specific power consumption and Specific Fuel consumption measures for the reduction of GHG emissions.
 Horizontal deployment of Nitrogen gas-based process in place of Hot water system.
 Additionally, constructed and commissioned waste water treatment plants of 1200 KLD

Future Endeavours
 17.5MW of solar power signed for Tamil Nadu plants and wheeling started from April, 2024.
 75MW of wind power signed for Tamil Nadu plants and wheeling to be expected from December, 2024.
 Replacement of furnace oil-based steam generation with alternate gas-based fuel. MRF initiated usage of Biomass as alternate fuel for Boilers.

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9. Provide details related to waste management by the entity, in the following format:
Parameter FY 2023-24 FY 2022-23
Total waste generated (in metric tonnes)
Plastic waste (A) 3554 2881.14
E-waste (B) 12 13.56
Bio-medical waste (C) 0.3 0.5
Construction and demolition waste (D) 0 0
Battery waste (E) 107 78.92
Radioactive waste (F) 0 0
Other Hazardous waste. Please specify, if any. (G) 2204 1611.34
Other Non-hazardous waste generated (H). 39950 51675.2
Total (A+B + C + D + E + F + G + H) 45827 56260.66
Waste intensity per rupee of turnover (Total waste generated / Revenue from operations) 1.86 *
Waste intensity(MT) per rupee of turnover adjusted for Purchasing Power Parity (PPP) Rs. Cr
42.5 *
(Total waste generated / Revenue from operations adjusted for PPP))
Waste intensity in terms of physical output 0.05 *

For each category of waste generated, total waste recovered through recycling, re-using or other recovery operations (in metric tonnes)

Category of waste
(i) Recycled 27946 17132
(ii) Re-used 3323 3519
(iii) Other recovery operations 10422 30571
Total 41691 51222

For each category of waste generated, total waste disposed of by nature of disposal method (in metric tonnes)

Category of waste
(i) Incineration 69 134
(ii) Landfilling 3324 2390
(iii) Other disposal operations 0 0
Total 3392 2524
* Reporting requirement is applicable from current financial year 2023-24.
By the end of FY 23-24, there was closing stock of 744MT, previous year (FY 2022-23 is 2515MT).
Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.
Yes, independent assurance has been carried out by SGS India Private Limited. The reporting boundary is limited to the 10 manufacturing plants and R&D centres.

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10. Briefly describe the waste management practices adopted in your establishments. Describe the strategy adopted by your company to reduce the usage of
hazardous and toxic chemicals in your products and processes and the practices adopted to manage such wastes.

Wastes are segregated and stored properly. Hazardous wastes are disposed to authorized agency as per the regulatory norms and remaining wastes are disposed to scrap Vendors.

11.If the entity has operations/offices in/around ecologically sensitive areas (such as national parks, wildlife sanctuaries, biosphere reserves, wetlands,
biodiversity hotspots, forests, coastal regulation zones, etc.) where environmental approvals/clearances are required, please specify details in the following
format:

Whether the conditions of environmental

approval / clearance are being complied
Sr. No. Location of operations/offices Type of operations
with? (Y/N) If no, the reasons thereof and
corrective action taken, if any.

1 Tiruvottiyur, Chennai Warehouse and R&D facility Yes

12. Details of Environmental Impact Assessments of projects undertaken by the entity based on applicable laws, in the current financial year:
Whether conducted by
Name and brief details Results communicated in
EIA Notification No. Date independent external Relevant Web link
of project public domain (yes/no)
agency (Yes / No)

Not applicable for the current Financial Year.

13. Is the entity compliant with the applicable environmental law/ regulations/ guidelines in India, such as the Water (prevention and control of pollution) Act,
Air (prevention and control of pollution) Act, Environment Protection Act, and rules there under (Y/N). If not, provide details of all such non-compliances:

Any fines / penalties / action

Specify the law / regulation /
Provide details of the non- taken by regulatory agencies
Sr. No. guidelines which was not Corrective action taken if any
compliance such as pollution control
complied with
boards or by courts

All units are complying as per Air and water Act prescribed by respective jurisdictional Pollution Control Boards

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Principle 7: Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is responsible and transparent

Essential Indicators

1. a. Number of affiliations with trade and industry chambers/ associations.

MRF is affiliated to 4 industry chambers and associations.

b. List the top 10 trade and industry chambers/ associations (determined based on the total members of such a body) the entity is a member of/ affiliated to.

Reach of trade and industry chambers/ associations

S. No. Name of the trade and industry chambers/ associations
(State/National)

1 Automotive Tyre Manufacturers Association National

2 Confederation of Indian Industry National

3 Federation of Indian Chambers of Commerce and Industry National

4 The Madras Chamber of Commerce and Industry State

2. Provide details of corrective action taken or underway on any issues related to anti-competitive conduct by the entity, based on adverse orders from
regulatory authorities.

Name of authority Brief of the case Corrective action taken

No case was filed by any stakeholder against MRF regarding unfair trade practices, irresponsible advertising and anti-competitive behaviour during the financial year.

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PRINCIPLE 8: Businesses should promote inclusive growth and equitable development
Essential Indicators

1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the current financial year.
Whether conducted by
Name and brief details of Results communicated in
SIA notification No. Date of notification independent external Relevant web link
project public domain(Yes/No)
agency (Yes/No)
- - - - - -

2. Provide information on the project(s) for which ongoing Rehabilitation and Resettlement (R&D) is being undertaken by your entity:
Name of project for No. of project
% of PAFs covered Amounts paid to
S No. which R&D is State District affected families
by R&D PAFs in the FY (In ₹)
ongoing (PAFs)
Not Applicable

3. Describe the mechanisms to receive and redress grievances of the community.

1. Periodic meeting with the representatives of the community to understand the requirements and the support needed from our end.
2. Interactions with the government agencies
3. Dedicated Email ID’s have been created to receive and redress the grievance of the community

4. Percentage of input material (inputs to total inputs by value) sourced from suppliers:

FY 2023-24 FY 2022-23

Directly sourced from MSMEs/ small producers 7% 23%

Directly from within India 71% 73 %

5.Job creation in smaller towns – Disclose wages paid to persons employed (including employees or workers employed on a permanent or non-permanent / on contract basis)
in the following locations, as % of total wage cost
Location FY 2023-24 FY 2022-23
Rural 8.76 *
Semi-urban 18.57 *
Urban 51.25 *
Metropolitan 21.42 *
(Place to be categorized as per RBI Classification System - rural / semi-urban / urban / metropolitan)
* Reporting requirement is applicable from current financial year 2023-24.

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PRINCIPLE 9: Businesses should engage with and provide value to their consumers in a responsible manner
Essential Indicators

1. Describe the mechanisms in place to receive and respond to consumer complaints and feedback.
Customer complaints are addressed by the local sales offices by inspection of the tyre by an accredited trained person. Such complaints are normally disposed of in about 3 days’ time.
2. Turnover of products and/or services as a percentage of turnover from all products/services that carry information about:
As a % to total turnover
Environmental and social parameters relevant to the product -
Safe and responsible usage 100%
Recycling and/or safe disposal -

3. Number of consumer complaints in respect of the following:

FY 2023-24 FY 2022-23
Pending resolution at Remarks Pending resolution at Remarks
Receive during the year Received during the year
end of year end of year
Data privacy Nil - Nil -
Advertising Nil - Nil -
Cyber-security Nil - Nil -

Delivery of essential services Nil - Nil -

Restrictive trade practices Nil - Nil -

Unfair trade practices Nil - Nil -

Other Nil - Nil -

4. Details of instances of product recalls on account of safety issues.

Number Reasons for Recall
Voluntary Recalls 0 N/A
Forced Recalls 0 N/A

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5. Does the entity have a framework/policy on cyber security and risks related to data privacy? If available, provide a web link to the policy.

Yes. At MRF, Cyber Security associated practices, policies and framework have been established and are in practice. The privacy policy has been published on the
company’s website. Please refer to https://www.mrftyres.com/privacy-policy.

Additionally, MRF also provides internal awareness on information and cyber security through employee training programmes. As a result, 100% of the employees have
been trained on cyber security and its risks.

6. Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of essential services; cyber security and data
privacy of customers; re-occurrence of instances of product recalls; penalty/action taken by regulatory authorities on the safety of products/services.
Not applicable

7. Provide the following information relating to data breaches:

a. Number of instances of data breaches 0

b. Percentage of data breaches involving personally identifiable information of customers 0

c. Impact, if any, of the data breaches NA

Independent Assurance Statement to MRF Limited on its BRSR for the FY 2023-24

The Board of Directors and Management

MRF Limited Greams Road, Chennai – 600 006

Nature of the Assurance/Verification

SGS India Private Limited (hereinafter referred to as SGS India) was commissioned by MRF Limited (the ‘Company’) to conduct an independent assurance of its BRSR (Core
Indicators) forming a part of MRF’s Business Responsibility and Sustainability Report (BRSR) pertaining to the reporting period of April 1, 2023, to March 31, 2024. The Report
hasbeenprepared following the National Guidelines for Responsible Business Conduct of the BRSR Framework, covering the performance of the Company across environmental,
social and governance (ESG) indicators.

Responsibilities

The information in the BRSR and its presentation are the responsibility of the directors or governing body and the Management of the Company. SGS India has not been involved in
the preparation of any of the material included in the report.

Our responsibility is to express an opinion on the text, data, graphs, and statements within the defined scope of assurance, aiming to inform the Management of the Company, and
in alignment with the agreed terms of reference. We do not accept or assume any responsibility beyond this specific purpose, and it is not intended for use in interpreting the overall
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performance of the Company, except for the aspects explicitly mentioned within the scope. The Company holds the responsibility for preparing and ensuring the fair representation
of the assurance scope.

Assurance Standard

This engagement was performed in accordance with the International Standard on Assurance Engagement (ISAE) 3000 (Revised) (Assurance Engagements other than Audits or
Reviews of Historical Financial Information). Our evidence-gathering procedures were designed to obtain a ‘Reasonable’ level of assurance, which is a high level of assurance but is
not absolute certainty. It involves obtaining sufficient appropriate evidence to support the conclusion that the information presented in the BRSR is fairly stated and is free from
material misstatements.

Scope of Assurance

The assurance process involved assessing the quality, accuracy, and reliability of the BRSR Core Indicators (KPIs) within the BRSR for the period spanning April 1, 2023to March
31, 2024. The reporting scope and boundaries include MRF’s 10 Manufacturing Plants and R&D Centers across India. Out of 10 Manufacturing plants the following representative
sample locations were chosen for onsite verification.

• MRF Limited, Ankenpally Plant, India

• MRF Limited, Goa Plant, India
• MRF Limited, Medak Plant, India
• MRF Limited, Tiruchirappalli Plant, India
• MRF Limited, HO, India

Assurance Methodology

The assurance comprised a combination of desk research, interaction with the key personnel engaged in the process of developing the BRSR and onsite visits for verification of data.
Specifically, SGS India undertook the following activities:

• Conducted interviews with key personnels overseeing sustainability aspects within the company and assessed supporting evidence presented in the report.
• Evaluated the data management system employed for collecting and collating sustainability related information at the site level, as well as the consolidation (10 Manufacturing
Plants and R&D Centers) of data at the Head Office level
• Verified the consistency of data and information presented within the report and cross- referenced it with the source materials.
• Review internal control mechanism to ensure the reliability and accuracy of sustainability data
• Verification of sustainability performance data, on sample basis, including conversion factors and emissions factors and calculation, based on our professional judgement

Limitations

The assurance scope excludes:

• Disclosures other than those mentioned in the assurance scope
• Verification of any data and information other than those presented in “Findings and Conclusion”
• Verification of data and information outside the defined reporting period (April 1, 2023, to March 31, 2024)
• Financial data drawn directly from independently audited financial accounts.

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Findings and Conclusions

Based on the methodology described and the verification work performed, we are satisfied that the information presented by the Company in it’s the BRSR, on the BRSR Core
Indicators is accurate, reliable, has been fairly stated and prepared, in line with the BRSR requirements. The list of BRSR Core Indicators that were verified within this assurance
engagement is given in Appendix 1.

MRF has a well-developed ESG management system and internal audit mechanism for recording and reviewing its ESG performance across its operational sites. This includes
processes for collection and consolidation of ESG related performance indicators as well as operating procedures which define calculations, methodologies, and assumptions.

Statement of Independence and Competence

The SGS Group of companies is the world leader in inspection, testing and verification, operating in more than 140 countries and providing services including management systems
and service certification; quality, environmental, social, and ethical auditing, and training; environmental, social and sustainability report assurance. SGS affirm our independence
from MRF Limited, being free from bias and conflicts of interest with the organization, its subsidiaries, and stakeholders. Our work was performed in compliance with the requirements
of the IFAC Code of Ethics for Professional Accountants, which provides a comprehensive framework that guide assurance practitioners in maintaining professional integrity,
objectivity, and ethical conduct. The assurance team have the required competencies and experience to conduct this engagement.

For and on behalf of SGS India Private Limited

Ashwini K. Mavinkurve,
Head – ESG & Sustainability Services,
Pune, India
02.07.2024

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Appendix 1:

Attributes Indicators
Total Scope 1 emissions
GHG emissions Total Scope 2 emissions
GHG emissions intensity (Scope 1 and Scope 2)
Total water consumption
Water footprint Water consumption intensity
Water Discharge by destination and levels of Treatment
Total energy consumption
Energy % of energy consumed from renewable sources
Energy intensity
A) Plastic waste
B) E-waste
C) Bio-medical waste
D) Construction and demolition waste
E) Battery waste
F) Radioactive waste
Waste management G) Other hazardous waste
H) Other non-hazardous waste
I) Total waste generated
Waste intensity
Waste recovered through recycling, re-using or other recovery operations
Total waste disposed by nature of disposal method
Spending on measures towards well-being of employees and workers – cost incurred as a % of total revenue of the company
Details of safety related incidents for employees and workers (including contract-workforce)
Employee wellbeing and This includes:
safety A) Number of permanent disabilities
B) Lost Time Injury Frequency Rate (LTIFR) (per one million-person hours worked)
C) No. of fatalities
Gross wages paid to females as % of wages paid
Complaints on POSH. This includes.
Gender diversity A) Total Complaints on Sexual Harassment (POSH) reported
B) Complaints on POSH as a % of female employees / workers
C) Complaints on POSH upheld
Input material sourced from following sources as % of total purchases – Directly sourced from MSMEs/ small producers and from within India (in %
terms – As % of total purchases by value)
Inclusive development
Job creation in smaller towns (Wages paid to persons employed in smaller towns (permanent or non-permanent /on contract) as % of total wage
cost)

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Fairness in Engaging with Loss / breach of data of customers as a percentage of total data breaches or cyber security events
Customers and Suppliers
Number of days of accounts payable

A) Purchases from trading houses as % of total purchases

B) Number of trading houses where purchases are made from
C) Purchases from top 10 trading houses as % of total purchases from trading houses
D) Sales to dealers / distributors as % of total sales
E) Number of dealers / distributors to whom sales are made
Open-ness of business F) Sales to top 10 dealers / distributors as % of total sales to dealers / distributors
G) Share of RPTs (as respective %age) in -
 Purchases
 Sales
 Loans & advances
 Investments

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