Accelerate transition to 100% renewable energy

Mahindra Group is a diversified multinational conglomerate with businesses spanning automotive, farm equipment, IT services, and renewable energy. Mahindra Susten, the Group’s renewable energy subsidiary, addresses the challenge of decarbonizing energy-intensive operations through a vertically integrated renewable energy model combining engineering, asset development, and performance optimization. The company’s strategy focuses on overcoming barriers such as grid intermittency, cost efficiency, and environmental impact while ensuring responsible project development. By aligning technical excellence with social inclusion and biodiversity safeguards, the approach supports Mahindra Group’s goal of achieving 100% renewable electricity by FY30. The initiative is being implemented in India.

Mahindra Group, through Mahindra Susten, is executing a group-wide renewable energy (RE) transition to decarbonize operations and meet its commitment of 100% RE by FY30. This initiative addresses Scope 1, 2, and 3 emissions and is structured around hybrid RE deployment, grid decarbonization, and carbon credit mechanisms.

At the group level (covering all key companies), electricity consumption stands at 700-750 GWh in F25 with a forecast of ~6 % CAGR by F30 considering past trends & assumptions

In FY25, renewable electricity (RE) consumption increased by ~9% in absolute terms from FY24 with RE constituting ~27% of the group's total electricity consumption

Our current board commitment is to get to as close to 100% RE by 2030

Engineering, Procurement & Construction (EPC)

• Delivered over 4.2 GWp of renewable capacity across geographies, demonstrating execution excellence and scalability.

• In-house EPC capabilities encompass site feasibility analysis, structural and electrical design, procurement optimization, and commissioning protocols.

• Projects are engineered for maximum yield, grid compliance, and long-term reliability, leveraging modular design and digital twin simulations.

Independent Power Producer (IPP)

• Develops and operates solar PV, wind-solar hybrid, and battery-integrated renewable assets.

• Employs techno-economic modelling to achieve optimal Levelized Cost of Energy (LCOE) across diverse market conditions.

• Integrates next-generation technologies including:

  • Hybrid control systems

  • Energy storage dispatch algorithms

  • Smart grid interfacing

Asset Management and Performance Optimization

• Implements real-time SCADA (Supervisory Control and Data Acquisition) systems, IoT-enabled sensors, and AI-driven predictive analytics for Operations & Maintenance.

• Ensures regulatory compliance, cybersecurity protocols, and risk-adjusted performance benchmarking.

• Uses machine learning models to forecast degradation, optimize inverter loading, and reduce downtime.

Environmental and Social Risk Governance

Renewable energy infrastructure can introduce ecological and social complexities, including land transformation, biodiversity disruption, and stakeholder displacement. Mahindra Susten applies a multi-dimensional impact assessment framework to mitigate these risks.

Risk Identification and Mitigation

• Risks are categorized by project lifecycle stage, geospatial sensitivity, and regulatory exposure.

• Construction-phase risks include airborne particulate emissions, noise pollution, and occupational hazards.

• Operational-phase risks involve aquifer stress, thermal footprint, and faunal migration interference.

• Mitigation strategies include:

  • Environmental Impact Assessments (EIA)

  • Biodiversity Action Plans (BAP)

  • Community Consultation Protocols

Socioeconomic Integration

• Implements local hiring mandates, skill development programs, and microenterprise incubation.

• Tracks social return on investment (SROI) through metrics such as household income uplift, education access, and healthcare penetration.

• Aligns with UN Sustainable Development Goals (SDGs) to ensure inclusive growth and long-term community resilience.

Figure 1: Susten Project Portfolio

Sustainability impact

Climate

Accelerated RE transition also helps Mahindra with Scope 3 emission reduction via ‘product in use’ decarbonization for EVs and supply chain decarbonization (Scope 3 upstream)

• EV emissions intensity remains high relative to potential unless grid emissions fall considerably, and green charging infra. picks up

• Scope 1+2 emissions reduced by ~35% through;- - Grid power in GUVNL - Pilot, 50 KWp DG-PV installation at RUVNL

Scope Emissions Targeted

• Scope 1: Direct emissions from diesel gensets and captive thermal sources.

• Scope 2: Indirect emissions from purchased electricity.

• Scope 3: Category 2 (Capital Goods) and downstream use-phase emissions from EVs.

Scope 3 Enablement

• RE transition lowers grid emission factor, enabling cleaner EV charging.

• Supports supply chain decarbonization via ESG audits and circular economy partnerships.

Nature

• ESMS (Environmental & Social Management System) implemented for all greenfield projects by FY26.

• Biodiversity Action Plans integrated into site selection and design.

• Avoids land-use conflicts by prioritizing brownfield and low-impact zones.

Social

• ESG awareness programs for Class A suppliers.

• 100% ESG audit coverage by FY28.

• Local employment and skill development through RE project deployment.

Business impact

Benefits

Operational & Financial Benefits

• FY25 RE cost: ₹5/unit vs grid cost ₹10–18/unit.

• FY25 savings: ₹100 Cr/year (~16% of energy spend)

• FY30 projected savings: ₹350–400 Cr/year

• Enterprise value addition: >$1B (PE multiple of 30)

Costs

On cost savings:

• F25 mix (~27%) and grid cost assumed at Rs 10/ unit (as high as Rs. 18/unit in certain locations) vs. RE cost at Rs 5 (can vary between 3-7 based on capex vs. Opex, onsite vs. offsite, wind vs. solar, etc.) there is recurring savings of ~₹100 crore (~16% savings) on current electricity consumption (700-750 GWh)

• This has potential to go up 350-400 Cr. per year by F30 (assuming 80% RE) – at a PE multiple of 30 for group, a potential enterprise value addition of > $1B

Typical business profile

This initiative is most relevant for companies in energy-intensive sectors, including industrial manufacturing, construction, and large-scale infrastructure. It also applies to organizations pursuing a green supply chain, renewable energy procurement, or net-zero transition strategies. Suitable for businesses at beginning to advanced stages of decarbonization, particularly those seeking to integrate renewable electricity, optimize operational efficiency, and embed environmental and social risk governance across multiple sites or geographies.

Approach

Green Supply chain

• ESG Awareness programs for Class A suppliers

• 100% ESG audit for Class A supplier by FY28

• Circular Economy : Partnered with module manufacturer for damaged and end-of-life module recycling

Environment & Social Management system prepared for Susten

• 100% ESMS implementation for green field project FY26

Reporting & disclosures

• SBTi (Science Based Targets initiative) target submission FY25

• Implementing ESG tool for monitoring & reporting in FY25

• Releasing Susten Integrated Sustainability reporting for FY25 and onwards

• Climate Risk Assessments conducted for 3 projects

Step-by-Step Approach

1. Baseline Mapping: Facility-level energy and emissions profiling.

2. Project Execution: Hybrid RE (solar + wind), PPAs, battery storage.

3. Policy Engagement: Resolve state-level RE adoption barriers.

4. Carbon Credits: Use RECs/i-RECs (Renewable energy certificates/Internal renewable energy certificates) for final 15–20% RE gap (FY29–FY30).

5. Monitoring: ESG tool deployment and third-party audits

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Focus on 3 key points:

• Projects: Focus on execution for existing & new projects including large scale hybrid projects, smaller PPAs, and focus on battery-based storage capacity addition, as commercially viable

• Policy: Work in collaboration with governments, especially at state level to overcome RE adoption barriers – still a few exist both in terms of policy and due to operations challenges

• Credits: the final leg of RE beyond the 80-85%, will have to come via investments in RECs (renewable energy certificates) /carbon credits at minor cost – last resort to be explore in F29/F30

Susten will be able to generate/ sell these RECs/ carbon credits. Susten also did a very small pilot in AFS ( by purchasing 5k MWH equivalent of i-RECs in F25 (Renewable Energy Credits)

Stakeholders involved

• Senior Executives: Provide strategic direction.

• Site Champions: Ensure implementation at the project level. Drive local sustainability initiatives and ensure compliance with environmental goals.

• Sustainability and CSR Team: Manages projects, data collection, and continuous improvement.

• Project Leads: Mahindra Susten engineering and sustainability teams.

• Functions Involved: Procurement, operations, CSR, finance.

• Providers: RE developers, module recyclers, ESG auditors.

• Governance: Monthly Sustainability Council reviews.

Key parameters to consider

Performance tracking:

• Utilizes digital platforms to track carbon emissions, waste management, and water usage.

• Senior leadership conducts regular reviews to align with Net-Zero Emissions and ZWL (Zero waste to landfill) goals.

• Annual third-party audits validate progress on initiatives like ZWL and water positivity.

Employee engagement:

• Focus on employee engagement through town halls, sustainability reports, and regular updates.

• Monthly Sustainability and CSR Council reviews ensure alignment with Mahindra's sustainability commitments.

• Drives collaboration to achieve milestones like carbon neutrality by 2030.

Implementation and operations tips

Challenges

• Grid integration delays

• Policy inconsistencies

• Supplier ESG readiness

Solutions

• Early DISCOM engagement

• Modular RE deployment

• Supplier capacity-building