Mahindra today announced its commitment to become a carbon neutral company by 2040. The announcement was made on the sidelines of the Global Climate Action Summit in California. The company announced that it will focus on energy efficiency and the use of renewable power to achieve this target. Residual emissions will be addressed through carbon sinks.
Anand Mahindra, Chairman, Mahindra Group said, "We are doing our part in the global fight against climate change with this ambitious new target. Mahindra will leverage the latest technological advances and its recently announced Carbon Price to work towards being carbon neutral by 2040."
Mahindra in fact became the first company in the world to commit to doubling energy productivity by signing on to The Climate Group's program EP100. Using energy efficient lighting, efficient heating, ventilation, and air conditioning (HVAC), motors and heat recovery projects, Mahindra has doubled the energy productivity of the automotive business almost 12 years ahead of schedule.
The company also became the first Indian company to announce its internal Carbon Price of $10 per ton of carbon emitted to fund investments required to pursue the path of carbon neutrality. The price was carefully arrived at on the basis of international benchmarks and an assessment of what was required to achieve the goals set by the business on energy efficiency and renewable energy.
The company will be working on its carbon neutrality commitment with an international non-profit organization Environmental Defense Fund. In fact the company is also a signatory of the Science based targets initiative which provides companies with a clear pathway for reducing emissions in line with the Paris Agreement's goal of limiting global warming to well below 2 degree celceius above pre-industrial levels. All these commitments will help the company on its path to go carbon neutral.