HMCL has established a comprehensive framework to effectively manage environmental aspects and impacts. We have a robust mechanism in place to identify and comply with all applicable regulatory requirements, ensuring adherence to statutory requirements and environmental regulations through regular engagement with relevant authorities.

Our employees are instrumental in our environmental stewardship efforts and make significant contributions to our environmental performance. To support them, we provide our environmental professionals with strategic training, awareness, and guidance with emerging environmental concerns, laws, standards, and best practices. Our comprehensive awareness and training programs cover a range of topics, including environmental impact assessment, air quality management, greenhouse gas emission reduction measures, waste management, water conservation, and other critical environmental issues. Our training frequency is quarterly and covers 100% of employees.

The global business landscape is increasingly characterized by constraints on natural resources and ecosystem services. Notably, HMCL has reported no environmental violations over the past five years, a testament to its strong commitment to environmental sustainability and responsible operations. By prioritizing environmental stewardship, HMCL has successfully minimized its ecological footprint, ensuring a safer, healthier environment for future generations.

At Hero MotoCorp, we carry comprehensive energy audits; detailed analysis includes data collection and analysis to uncover potential energy-saving opportunities for our facilities. We follow the following steps while carrying out energy audits:-

As we continue to expand, our energy demands are expected to rise. To support sustainable growth, we are focusing on enhancing energy efficiency and shifting towards renewable energy sources. This strategic approach enables us to reduce our environmental impact, mitigate climate-related risks, and lower energy expenses. Through comprehensive internal and external energy audits, we identify and execute energy-saving initiatives that drive efficiency and reinforce our dedication to sustainable development. We have set an ambitious yearly target of achieving a 2% energy saving of total energy demand, and we are successfully meeting this goal.

Renewable energy is important in energy management, particularly for the automotive sector, because it drives the profound transformation needed to minimize energy consumption and mitigate greenhouse gas emissions. As one of the world's most substantial energy consumers, the industry's shift towards sustainable and energy-efficient practices is essential to reduce its environmental footprint, improve energy efficiency, and promote eco-friendly technologies that support a low-carbon economy.

Hero MotoCorp's strategy for renewable energy is a commitment to reducing reliance on nonrenewable energy sources and embracing clean energy solutions through:

• Integration of Distributed captive Solar installations across its operations in India.
• Wheeled Renewable Energy (Hybrid - Solar + Wind)
• Grid-Supplied Green Power
• Group captive Off-site Renewable energy projects

At Hero MotoCorp, we recognize the importance of innovation and research and development (R&D) in driving energy reduction and sustainability in our operations. As a responsible and forward-thinking organization, we are committed to investing in cutting-edge technologies and solutions that minimize our environmental footprint while promoting business growth. The Hero MotoCorp Centre for Innovation and Technology (CIT) in Jaipur is a state-of-the-art research and development center for the company.

To support our energy reduction goals, we have made significant investments in R&D, including:

• Establishment of a dedicated R&D Center: Our state-of-the-art manufacturing facilities, six in India and one each in Colombia and Bangladesh are renowned Centres of Excellence. They are also fondly called ‘Garden Factories’ because of the green manufacturing processes followed that use resources efficiently and sustainably.
• Collaborations and Partnerships: We are collaborating with leading research institutions, universities, and industry partners to leverage their expertise and stay at the forefront of energy-efficient technologies.
• Investment in Emerging Technologies: We are investing in emerging technologies, such as artificial intelligence, blockchain, and the Internet of Things (IoT), to explore new opportunities for energy reduction and efficiency.
• Training and Development: We are providing ongoing training and development programs for our employees on a half-yearly basis to ensure they have the necessary skills and knowledge to support our energy reduction initiatives.

Given our operations' significant reliance on groundwater, we prioritize sustainable water management. To achieve this, the company mandates comprehensive water audits every two years. These audits are conducted by certified auditors such as Confederation of Indian Industry (CII) and approved by the Central Ground Water Authority (CGWA). The primary goal of these audits is to identify inefficiencies, minimize wastage, and identify key opportunities for water conservation and associated cost savings.

The audits include but not limited to:

• Industry process study
• Present water usage including Recycling
• Assessing the use of technology
• Waste water treatment and discharge
• Water conservation measures

Our Water Management Programs are designed with a holistic approach to ensure water positivity across all our manufacturing locations, thereby safeguarding this essential resource for both our operations and the local communities. The core of these programs is our 3M-7R approach (measurement, mapping, monitoring, and a range of conservation and reuse strategies).

Key components of our comprehensive program include:

Actions to reduce water consumption:

Our commitment to water positivity across manufacturing locations drives us to continually enhance water efficiency and reduce consumption. We have undertaken several initiatives aimed at lowering the use of both process and non-process water at our plants. These include implementing water-efficient technologies and executing targeted projects focused on conservation and responsible water management.

Actions to improve Wastewater Quality:

HMCL is committed to maintain high standards of wastewater management to minimize environmental impact and ensure responsible water stewardship. All our manufacturing facilities operate as Zero Liquid Discharge (ZLD) units, which means that no wastewater is discharged beyond plant boundaries.

Our Sewage Treatment Plants (STPs) and Effluent Treatment Plants (ETPs) are designed to recycle and treat both domestic and industrial wastewater for reuse in various non-potable applications, such as gardening, flushing, and cooling tower operations. These systems help us reduce dependency on freshwater sources while maintaining operational efficiency.

We strictly comply with CPCB and SPCB norms for wastewater treatment across all facilities. Regular internal monitoring and independent third-party audits ensure consistent adherence to discharge standards and process efficiency.

Establishment of Targets to Reduce Water Use:

At HMCL, we had set an ambitious target of achieving a water positivity rate of 500% by 2025. We are proud to share that we are the only two-wheeler organization that has achieved this milestone across the globe. Furthermore, all our manufacturing plants are now water positive, reinforcing our strong commitment to water stewardship. This achievement underscores our dedication to sustainable water management and our role in supporting the well-being of surrounding communities.

We believe that sustainable water stewardship begins with informed and engaged employees. To this end, we implement comprehensive education and training initiatives tailored to instill a culture of water consciousness across all levels of our workforce. Periodic employee awareness training programs are being conducted.

These programs include:

Interactive Workshops and Seminars: Regular sessions are conducted on topics like water conservation techniques, water auditing, rainwater harvesting, and sustainable usage practices, designed to increase both technical knowledge and personal accountability.

On-site Demonstrations: Practical demonstrations of water-saving technologies and methods are organized at manufacturing sites to showcase real-world application and impact.

Recognition and Rewards: Employees who propose and implement innovative water-saving ideas are publicly recognized and rewarded, fostering a spirit of innovation and ownership.

Cross-functional Task Forces: Interdepartmental teams are formed to regularly evaluate water usage and suggest operational improvements, ensuring sustainability is embedded in everyday processes.

As part of our commitment to sustainability, we conducted a comprehensive waste audit to understand our waste generation patterns, identify areas for improvement, and develop strategies to minimize waste. The audit is conducted yearly and covers all locations.

The waste generated is categorized into plastic, e-waste, biomedical, construction and demolition (C&D), and radioactive waste, with the distribution highlighting the nature and scale of different operational activities.

Effective waste disposal and recovery are integral to our sustainability strategy. The company prioritizes recycling and reuse to reduce raw material consumption and environmental impact. Non-recyclable waste is managed through advanced recovery methods such as co-processing, which allows for energy recovery and safe disposal. Incineration is used responsibly for specific hazardous waste, ensuring regulatory compliance and emission control. Importantly, Hero MotoCorp has achieved zero waste to landfill, demonstrating its commitment to a circular economy and responsible waste stewardship.

We believe that sustainable waste management begins with informed and engaged employees. To this end, we implement comprehensive education and training initiatives tailored to instill a culture of waste management across all levels of our workforce. Periodic employee awareness training programs are being conducted.

These programs include:

Interactive Workshops and Seminars: Regular sessions are conducted on topics like waste management, waste auditing, and sustainable waste reuse usage and practices, designed to increase both technical knowledge and personal accountability.

Recognition and Rewards: Employees who propose and implement innovative waste saving ideas are publicly recognized and rewarded, fostering a spirit of innovation and ownership.

Cross-functional Task Forces: Interdepartmental teams are formed to regularly evaluate waste generated and suggest operational improvements, ensuring sustainability is embedded in everyday processes.