Mahindra Automotive & Farm Equipment – Charvie Mishra – 2022
Goals
Mahindra Automotive and Farm Equipment’s supplier base is mostly located in the state of Maharashtra, India, which is also one of the most climate vulnerable state in India. Anticipating climate physical risks is crucial to manage supply chain risks and opportunities in the long-term. Mahindra enlisted Charvie Mishra to identify and assess physical climate risks and opportunities in their upstream value chain through climate risk related tools.
Solutions
Charvie adopted the following approach:
- She started with research on physical climate risks in Maharashtra followed by peer benchmarking of climate scenarios and approaches recommended by TCFD and other leading agencies
- Parameters for identifying the best adaptation, mitigation and transfer strategies were derived through internal and external stakeholder consultation for a holistic perspective with suppliers, the strategic sourcing team and the risk management team.
- She built a primary climate risk scenario analysis, impact and strategy identification tool for Maharashtra.
- Third party vendors were identified for long-term and continuous evaluation of changing climate risks and opportunities for informed decision making.
- She provided a list of short, medium and long-term recommendations along with a guide for iterative climate risk modelling and future proofing the business.
Potential Impact
A tool and roadmap were laid out for identifying and analyzing physical climate risks and opportunities in different functions of upstream value chain. The climate risk scenario analysis tool for Maharashtra was used in Mahindra’s disclosures and for investor presentations.
As a result, this project led to reducing reputational risks for the organization during the project timeline. Implementation would lead to long-term climate resilience and robust planning for the organization and its suppliers.
