With green-aligned revenue growing and Scope 4 emissions in focus, the Group is reimagining sustainability through innovation, partnerships, and strategic ESG integration, says Mahindra’s Chief Sustainability Officer

As India charts its path toward Net Zero by 2070, the private sector’s role in driving credible climate action has never been more critical. Talking with BW Sustainability World, Ankit Todi, Chief Sustainability Officer, Mahindra Group, said that sustainability is not just a commitment – it’s a strategic transformation anchored in its Planet Positive Strategy.

He highlighted that going beyond carbon reduction, the Group is integrating ESG principles deep into its operations, supply chains, and product innovation to ensure measurable, long-term impact. From scaling electric vehicles and green real estate to enabling sustainable agriculture and financing climate-forward solutions, Mahindra is aligning its businesses with India’s evolving sustainability vision – and helping shape it in the process.

Edited Excerpts’

As India sets its national ambition through the Net Zero by 2070 goal, what concrete milestones is your company setting for 2047 to ensure that its net-zero journey is credible, measurable, and aligned with global climate benchmarks?
At the Mahindra Group, our climate strategy, known as the ‘planet positive strategy,’ adopts a holistic approach to achieving Net Zero. This revolves around three key pillars.

We aim to minimise direct operational emissions (Scope 1 and Scope 2) as close to zero as possible in the coming years, while also focusing on water conservation, waste management, and material circularity. This comprehensive approach ensures that we address environmental sustainability beyond emissions alone.

Net Zero is not achievable in isolation – it requires collaboration across the entire value chain. We are transitioning our businesses towards green offerings: the auto segment is shifting to electric vehicles (EVs), Mahindra Lifespaces is developing green and Net Zero buildings, and our Holidays division is adopting sustainable practices across resorts. A crucial part of this transition is enabling our supply chain to adopt sustainable practices, ensuring holistic progress toward Net Zero.

Leveraging our presence in the farm sector, we are driving sustainability initiatives such as promoting tree plantation and enabling lower-emission agricultural practices. These efforts positively influence the broader ecosystem while furthering our sustainability goals.

Scope 4 emissions are increasingly gaining traction in industry discussions. How is your company innovating its products or services to enable downstream emission reductions, and do you believe the industry is prepared to track, quantify, and report these avoided emissions over the coming decade?
Scope 4 emissions are indeed a growing focus, and Mahindra Group has been working on initiatives that reduce the overall environmental footprint across the ecosystems we operate in. For example, in agriculture, we are promoting sustainable practices. Direct seeding of rice helps reduce methane emissions from conventional cultivation practices. Our Seeds business introduces water-efficient and eco-friendly crop varieties. Through CSR initiatives, we train farmers in sustainable techniques, further reducing emissions across the farm ecosystem.

On the product side, we are scaling green-aligned businesses across sectors. EVs are a major contributor, alongside green-certified real estate projects. Mahindra Finance actively supports EV adoption through financing. Our last-mile delivery services are shifting to EVs.

To track progress, we have introduced a ‘green-aligned revenue’ mechanism, enabling us to measure contributions to the green transition. In FY25, approximately 10 per cent of our revenue is green-aligned – a significant increase from 4-5 per cent just a few years ago. This term captures not only inherently green offerings but also products and services that enable sustainability transitions.

With ESG 2.0 redefining credibility through measurable impact and regulatory compliance, what strategic shifts might organisations make to move beyond disclosure toward demonstrable outcomes in environment, social, and governance metrics?
ESG forms the foundation of sustainability – it’s the basic hygiene every responsible company must follow. To break it down: Environment is about going beyond compliance; companies must proactively reduce their environmental footprint in direct operations. Social includes employee well-being, customer satisfaction, and community upliftment through CSR programs. Finally, Governance is about ensuring ethical practices, financial integrity, and data privacy.

At Mahindra, we go beyond compliance and integrate ESG strategically into our business model. For example, the tyre industry faces increasing environmental scrutiny due to new regulations. Instead of viewing this as a risk, we engage with suppliers to enable circular materials and cleaner supply chains – turning compliance into a competitive advantage. Similarly, renewable energy adoption across our operations not only reduces our footprint but also cuts electricity costs by 30-40 per cent. These are examples of how viewing ESG as a business lever, rather than a checkbox exercise, creates long-term strategic value.

As India rolls out its formal carbon market in 2026, how do you envision it driving meaningful emissions reductions within your sector, and what safeguards are needed to ensure it doesn’t simply become a regulatory burden without climate gains?
The Indian carbon market has the potential to drive meaningful environmental impact, particularly for hard-to-abate sectors like cement, aluminium, and chemicals. By focusing on emission intensity reduction rather than absolute cuts, the framework provides a structured transition pathway. Early-stage emission reductions – such as renewable energy adoption and energy efficiency – are not only achievable but also financially beneficial, offering good paybacks. This will likely push companies to act sooner and more strategically.

However, for the market to reach its full potential, two key challenges must be addressed. First, long-term regulatory clarity is essential. Current targets are set for only two years, leaving companies without visibility into long-term goals. A 10-year roadmap would enable better capital planning and investment decisions. Second, operational details need resolution. Questions around credit registration, verification mechanisms, pricing models, and standards remain unresolved, creating uncertainty for companies planning their decarbonization strategies.

Overall, the carbon market is an encouraging step forward, but clarity and transparency will be essential to ensure it drives real climate action rather than becoming a compliance burden.

How do you envision India’s sustainability landscape evolving by 2047, and how confident are you that your company will contribute meaningfully to that journey?
India is directionally clear on its sustainability goals, with strong alignment between government and industry. The key challenge lies in the pace of scaling solutions. For instance, renewable energy currently accounts for 23-24 per cent of the grid, but achieving 70-80 per cent will require accelerated deployment. Similarly, in our EV segment, reaching our targets depends not only on our efforts but also on the broader ecosystem’s pace of adoption.

At Mahindra, we are taking all possible actions within our control – whether it’s energy efficiency, water management, or transitioning to green businesses. However, collaboration across industries and ecosystems will be crucial to achieving national and corporate goals.