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Sustainability

Maruti Suzuki strives to consistently improve the environmental performance of its manufacturing operations, products and supply chain. The Company identifies environmental impact and develops strategies to mitigate impacts in each of these areas.

Maruti Suzuki's efforts in the environment sphere are guided by its environment policy. The policy conveys the company's commitment towards reducing the pressure on the environment, due to business activities and products, working collaboratively with customers, suppliers, and the surrounding community, and focusses on continual reduction in the use of natural resources. The policy also gives importance to training and communication.

As a strategy, Maruti Suzuki has adopted the ISO 14001 standard. The Environment Management System in the company helps in continuously improving its environmental performance. As a part of which Maruti Suzuki ensures compliance to Biomedical Waste Management Rules, 2016. Going beyond its boundaries and compliances, it's also promoting ISO 14001 among its Tier-I suppliers.

The company has identified and prioritized material aspects in environment after considering the significance and scale of their impacts. For each relevant aspect, it undertakes following necessary actions:

  • It uses a large volume of raw materials and energy in vehicle manufacturing. A consequence of the manufacturing operations is natural resource depletion and the hazardous waste generation. This makes raw materials, energy, waste and emission material aspects for the company.
  • As compared to other manufacturing industries such as textiles, food processing, the company's operations are not water intensive. However, the Company sees its responsibility towards conserving water and considers it to be a material aspect.
  • Biodiversity is not a material aspect for the company as it doesn't operate in locations with sensitive ecological balance or biodiversity.
  • The company sources a large number of components from its suppliers for manufacturing its cars. Their environmental footprint, labour practices, quality and cost of components and transportation are important aspects for the company.
  • The usage of vehicles for mobility causes fuel consumption and emissions. Therefore, it is important improve fuel efficiency of vehicles, and develop alternate fuel vehicles.

The company reviews existing processes, systems and equipment from the point of view of their impact on the environment and health and safety of people. Accordingly, mitigation plans are prepared and implemented. Company makes concerted efforts to identify environmental impacts of its business operations such as Aspect-Impact Analysis, Environmental Impact Assessments etc. Stakeholders and their environment-related suggestions and concerns are also taken into consideration to bring about further improvement in the company's environmental performance.

Maruti Suzuki has an elaborate organizational structure to deal with all aspects of environmental performance. The management reviews parameters related to environment every month in the Business Review Meeting. The management approach promotes continuous improvement, striving to set industry standards and continuous learning. Horizontal deployment of good practices across Maruti Suzuki facilities and sharing with suppliers is also promoted.

The Company sets environmental targets each year. The responsibility of achieving the targets is distributed to relevant departments and individuals. Progress is monitored periodically. The whole process is guided by the PDCA (Plan-Do-Check-Act) cycle. The approach is reviewed periodically and improvements are made to achieve better results. The performances against the set targets are evaluated and further actions are taken.

Maruti Suzuki believes that people are central to any business operations and it is the responsibility of the company to take care of the wellbeing of the people directly or indirectly impacted by its operations, products and services. The company makes concerted efforts to provide healthy work environment to its employees, offers latest technologies in cars that meet the aspirations of the customers and undertakes social initiatives for the welfare of the local community and society at large.

Maruti Suzuki employs over 20,000 diverse people in its operations. The retention and development of existing employees and acquisition of new talent as per business needs is of vital importance for the company. Maruti Suzuki strongly believes in a culture of equality and openness. All employees, irrespective of their level in the organisation, wear the same uniform, eat in a common canteen, and are entitled to similar medical entitlements. The company has an open office culture that supports speedy communication and fosters a boundary-less organisation.

As a manufacturing company, Maruti Suzuki considers good labour relations material and gives utmost importance to Occupational Health and Safety of all employees. People development through training and mentoring is critical for long-term sustainability of the company.

The various Human Resources policies are formulated in a participative mode with employee involvement. New policies are duly communicated to the employees through various employee engagement forums. For example, the medical policy has been reviewed considering increasing instances of lifestyle-related diseases. In the new medical policy, the age for the free annual medical check has been lowered from 40 years to 35 years. The policy covers all levels of regular employees. Similarly, high emphasis has been given to occupational safety and safety during commuting to and from the company.

Maruti Suzuki's supply chain has an important role to play in the company's business and the company invests in multiple ways in developing and nurturing its relationship with suppliers. Human Resource practices and safety at suppliers' end have become a focus area for the company and several initiatives have been taken in this field. The company encourages suppliers to adopt some of its established good HR practices and policies. The company has also included anti-child labour and anti-sexual harassment clauses in the procurement agreement with suppliers.

The company considers local community and society a significant stakeholder group. The company's CSR programmes address specific needs of this stakeholder group. The company runs a nationwide skill development and road safety programme. Its community development programmes cater to the communities located around the company's facilities. The company has dedicated resources for engaging with the communities and implementation of the social initiatives based on the needs assessment. The company has set up a CSR Committee of the Board as per the requirements of the companies Law 2013 in the Board Meeting on 28th January, 2014. The Committee has three members including one independent director.

The company strives to delight its customers with latest technology and high quality products and after sales service. Customer obsession is one of the company's core values. It constantly works towards improving its products to offer cars with better safety and comfort features, fuel efficiency and low cost of ownership and goes the extra mile to make car servicing easy and convenient for customers.

Maruti Suzuki's business operation has many positive social impacts. It provides gainful employment to thousands of people directly through its operations. The suppliers and dealers of the company further employ a large number of people which boosts local economy. The growth of the company's business creates business and employment opportunities for many. The social programmes create a positive environment in the company's neighbourhood besides addressing some of the social needs. The R&D efforts are aimed at delighting customers by meeting their aspirations for safer, comfortable, fuel efficient and stylish cars.

A large part of the company's workforce is engaged in the manufacturing operations. This makes employee's health and safety a top priority for Maruti Suzuki from the point of view of sustainability of its human resource.

Committed to the health and safety of its employees, the Company has a structured Occupational Health and Safety Management System. A detailed Hazard Identification and Risk Assessment (HIRA) exercise is carried out for each area and safety-related targets are set accordingly for each department.

Maruti Suzuki has an apex safety committee which has been constituted as per the guidelines of the Factories Act 1948 (India) comprising an equal number (eight each) of worker and management representatives. The tenure of the safety committee is two years and it meets on a quarterly basis.

During the reporting year, there was zero fatality due to accident within the Company boundaries. There were four reportable accidents causing injuries and zero Occupational Disease Rate (ODR).

The Company has four Occupational Health Centres located at its facilities. These provide 24x7 services and are run by full-time qualified medical officers specialised in occupational medicine. No significant occupational disease was reported to the Health Centres in 2013-14.

The Company's manufacturing operations include some hazardous processes wherein sufficient preventive measures have been adopted to protect employees. Medical surveillance programmes are conducted in hazardous process areas periodically for early detection of occupational diseases.

Maruti Suzuki's CSR programmes tackle specific social issues at the local and national level. The community development programme is designed to take care of the needs of communities located around the company's facilities. These needs are identified through formal (surveys and assessments) and informal methods (one to one contact, regular engagement with community leaders). The nationwide road safety and skill development programmes address issues on a national level such as the need for scientific driving training and skill training for employment respectively.

The key approach of the company is to develop scalable, sustainable and impactful social programmes in a partnership mode. CSR is an integral part of the business and the CSR programmes are periodically reviewed by the management.

The company has a Board approved CSR policy that details out its CSR programmes.

Sustainability Journey

Foot on the pedal

Maruti Suzuki publishes its Sustainability Report annually. The Company's sixth Sustainability Report is for the period from 1st April, 2014 to 31st March, 2015.

The report has been prepared as per GRI G4 guidelines and is aligned to "Core" reporting. An independent assurance provider, Det Norske Veritas AS (DNV), has verified the report as per AA 1000 AS (2008) standard.

Download the complete Sustainability Report- 2014-2015

View Archives

Sustainability Report for 2013 - 14
Sustainability Report for 2012 - 13 [5.6 MB]
Sustainability Report for 2011 - 12 [5.6 MB]
Sustainability Report for 2010 - 11 [5 MB]
Sustainability Report for 2009 - 10 [4.24 MB]
Sustainability Report for 2008 - 09 [11.2 MB]
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Mr. R. C. Bhargava

Chairman
  • A Law graduate from Osaka University, Japan, Mr. Ayukawa joined Suzuki Motor Corporation in 1980.
  • Born in 1955, Mr. Ayukawa has handled several key assignments at Suzuki Motor Corporation, Japan and in the Group's overseas operations.
  • Mr. Ayukawa served as Managing Director of Pak Suzuki Motor company from May 2004 to June 2008.
  • He served as Director on the Board of Maruti Suzuki India Limited from July 2008 to March 2013.
  • Before taking charge as the Managing Director at Maruti Suzuki India Limited he served as Managing Executive Officer and Executive General Manager, Global Marketing at Suzuki Motor Corporation, Japan.