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Sustainability at Core
1.1. Managing Our Risks
At Mahindra Lifespaces, we define risks as events that may impact our ability to deliver sustained value creation to stakeholders. To deliver on our strategy, we respond nimbly to opportunities, as well as the associated risks, without jeopardizing the direct interests of stakeholders. Sound management of risk enables us to anticipate, where possible, and respond to changes in the operating context, as well as make well-considered and agile decisions under conditions of uncertainty. We have adopted, and are guided by, an enterprise-wide approach to risk management, which means that every identified material risk is included in a structured and systematic process of risk management. The Enterprise Risk Management (ERM) framework is utilized to identify, monitor, and mitigate business risks from operations, compliance, strategy, financials, governance, reputation, and processes. This is driven by a Risk Management Committee, consisting of two Directors and the Chief Financial Officer, that periodically reviews the risk management plan and oversees the complete process. Our risk management approach is aligned to COSO Framework.
Risk Management Committee
Risk management system is in place for the identification & assessment of risks, mitigation measures, & mechanisms for timely monitoring & reporting. We have defined a procedure to inform the Board about the risk assessment & minimization procedures.
Our Approach To Managing Risks
1.2. Our ERM Framework
ERM is a dynamic framework, adapting to evolving stakeholders needs with the latest integration of Climate & other ESG risks. Climate change-related risks are identified for the short, medium and long term & corresponding risk mitigation measures are incorporated into our sustainability strategy roadmap aligned with our SBT and Carbon neutrality targets.
1.2.1. Our ESG Risk Universe
Our ERM framework helps us to tie the long-term ESG risks identified through the materiality exercise to the current ongoing site-specific risks which are internally assessed. We also identify short, medium, and long-term climate and ESG risks for our operations, suppliers, and customers. Financial planning is conducted on the basis of these risks and their impact on business continuity. For upstream, the risks associated with supplier and procurement are factored into business planning. Labour productivity and operational disruption due to climate change are factored in through labour welfare and weather preparedness planning in the operations of our residential business. For downstream the impacts of climate change on customers provides us with an opportunity to deliver a green product portfolio. Our environmental management system also tracks the risks associated with climate and ESG in the impact register. This helps us assess and mitigate risks at the site level.
Climate-related risks are identified at the corporate and site level by cross-functional teams comprising of Sustainability, Strategy, Environmental, Health, & Safety (EHS), Quality, and Projects. All the risks (classified into low, medium, and high) are mapped in the company-level risk register. Mitigation measures for these climate-related risks are identified and reviewed every six months. Updates on the identified risks and mitigation actions are shared with the Board on a quarterly basis.
We are a signatory to TCFD and utilize the TCFD recommendations to focus on climate change and the potential risks of financial losses in the following ways.
- Financial losses due to infrastructural damage owing to floods, etc. These risks are categorized as physical risks.
- Financial losses by the reporting organization owing to transition to a low-carbon economy, such as from a Company adopting advanced technologies to mitigate exposure to adverse climate scenarios. This climate-related risk is called transition risk
Read more about our Climate related risks here.
