SR 2019

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Creating a Sustainable Future

Hero MotoCorp Limited


Sustainability Report 2019
(GRI STANDARDS)
we must do something
for the community from whose
land we generate our wealth
Dr. Brijmohan Lall Munjal
Chairman Emeritus
1
Message from Chairman
With a strategic focus on expanding our presence in the
premium segment, we launched a slew of premium products
like the XPulse and Xtreme range of motorcycles and the
Destini and Maestro Edge scooters. In addition to delivering
class-defining motorcycles and scooters to our customers,
these products have also helped us create more value for our
stakeholders.

While we stay focussed on excellence in business


operations, the entire organisationhas also ensured that
‘Sustainability’remains at the core of our business.

From our platinum-rated world-class green manufacturing


facilities to CSR initiatives that have immensely benefitted
large communities in many parts of the country, to initiatives
across the value chain to reduce energy, carbon, waterand
waste footprints, our sustainability efforts have been
successful in creating and delivering value.

In FY’19, we reduced our energy intensity by 4%, thereby


positively impacting Carbon emissions. Our water consumption
has been reduced by 7% and we achieved waste neutrality of
82% through recycling and co-processing initiatives. We also
We are committed to improved our solar footprint by 24%. Going forward, our long-

strengthen our efforts term vision is to be carbon neutral by 2030.

on sustainable business ‘Diversity and inclusiveness’ have been another key focus
area for us, and I have been actively involved in driving it.
strategies across value chain From employing a workforce comprising of 10 nationalities
to surpassing the significant threshold of 1000 women
to create a sustainable future employees this year, we worked on making our entire
workforce more sensitive and open. We also conducted
programs to effectively capture employee voices to improve
our human resource practices.

Dear Readers, We are gearing up for a complete migration of our range of


motorcycles and scooters into the world’s toughest emission
norms, BS-VI. At the same time, we are also working on
It is my pleasure to present our second Sustainability Report
alternative mobility solutions to shape the face of personal
to you. The Report highlights our numerous efforts during
and shared mobility.
the year aimed at maximizing triple bottom-line benefits,
which create value for all our stakeholders. During the year,
we strengthened our commitment to existing environmental, Innovation will play a critical role in capitalizing on these
social and governance efforts while introducing several new opportunities. In keeping with this objective, we launched an
initiatives for ‘Creating a Sustainable Future’. internal incubator - Hero Hatch –in 2018, where the teams
are working on the next generation mobility solutions and
alternate business models.
As is well-known, the automotive industry has been going
through an unprecedented period of slowdown. There have
been headwinds not just in the Indian market, but also in our I would like to thank all Heroes – our shareholders, customers,
global markets. Despite such a challenging environment, Hero employees and value chain partners - for helping Hero
MotoCorp managed to achieve some significant milestones, MotoCorp retain the distinction of being the largest two-
amply demonstrating the inherent strength of the brand. wheeler company for 18 consecutive years.

During the year, we surpassed 90 million units in cumulative Through our operations, practices and products, we aim
sales since the inception of the Company! At the same time, to create a sustainable future for all our stakeholders and
we further expanded our global footprint and are now present welcome feedback on this report and our sustainability
in nearly 40 countries. We also set-up our first R&D centre at efforts..
a global location – Hero Tech Centre GmbH - near Munich in
Germany. This is an accomplishment of our vision of having a Dr. Pawan Munjal
global R&D ecosystem. Chairman

2
Message from Executive Director operations
(Plants) & chief technology officer
Dear Readers,

As a global automotive player and industry leader in India,


we are aware of our role and responsibility in strengthening
sustainability in the industry, India, and the world. The report
for the financial year 2019 encapsulates the Company’s
framework, approach, and efforts towards sustainable growth.
We would like to continue to maximize the value given to our
stakeholders and enrich society at large.

Going by our philosophy ‘fear nothing in pursuing excellence’


this financial year 2019, we continuously strived to
innovate and excel in everything that we did across all our
functions. This year, we accomplished more significant sales
milestones, introduced numerous new products, extended our
manufacturing and R&D facilities, and set the benchmark for
being a socially responsible company.

Our continuous thrust on sustainability is evident in our new


products and plants. Our manufacturing facilities maintain
the highest ecological norms while meeting company goals,
helping to build a sustainable tomorrow. Our upcoming

Our product & facilities manufacturing facility- the Garden Factory at Chittoor
reaffirms our dedication to green and sustainable production.
maintain the highest We also work closely with our supply chain partners to
strengthen the overall sustainability footprint.
sustainability standards To conclude, I would like to convey my heartfelt thanks to
enabling us creating a our stakeholders for showing seamless trust in us. This is
one of the reasons, which inspires us to push our limits and
sustainable future remain competitive in this changing business scenario. Also,
I welcome your feedback on the report and our sustainability
efforts.

Vikram S. Kasbekar
Executive Director Operations (Plants) &
Chief Technology Officer

3
Contents
About the Company
report Overview

06 07
Awards & Triple
Recognitions bottom-line
highlights

08 09
Our Products Our Operations
and Global
Footprint

10 11
Membership and sustainability
policy advocacy strategy

12 13
our governance risk and financial
system opportunities overview

14 17 18
Stakeholder
Engagement

20
4
Materiality Sustainability
Assessment Pillar-ECO
EFFICIENCY

21 22
Sustainability Pillar – Sustainability Pillar –
Responsible Value chain Product StewardshipI

28 32
Sustainability Sustainability Pillar –
Pillar-People Inclusive Growth

35 48
hats GRI Index

57 58
assurance
statement

60
glossary

61
5
About the report
Creating a Sustainable future Assurance
We invite you to read our second Sustainability Report Independent Assurance helps in building credibility and
titled “Creating a Sustainable Future” highlighting trust with key stakeholders. It also reassures our readers
Company’s future growth avenues. Reporting on triple that the information is accurate, reliable and unbiased and
bottom line performance is Hero MotoCorp’s annual covers all topics of material importance to the organization’s
endeavour. Hero MotoCorp (NSE: HEROMOTOCO) has been stakeholders. This report is externally assured by EY
assessing its sustainability performance from past several Associates LLP, excluding economic performance indicators,
years and published its annual sustainability report from which are derived from our annual reports. The assurance
FY 2017-18. This report can be found at our website. The is in accordance with the limited assurance criteria of
report is intended for all stakeholders who are directly or the International Standards on Assurance Engagement’s
indirectly connected with Hero MotoCorp with an objective (ISAE) 3000. The assurance approach, methodology, and
of providing sufficient information for an informed decision observations are presented in the assurance letter attached
making. at the end of the report.

Report profile Suggestions and Feedback


This report conforms to the GRI (Global reporting initiative) We continuously strive to disclose relevant information
Standards, and the disclosures are in accordance with the to our stakeholders. We welcome any comments and / or
‘Core’ option prescribed by GRI. The information in this report suggestions on the report content and flow. Please send your
relates to the FY 2018-19, i.e. from April 1, 2018 to March 31, comments to sustainability@heromotocorp.com.
2019.
The scope of reporting boundary includes all our five Indian
manufacturing plant sites at Dharuhera, Gurgaon, Haridwar,
Neemrana and Vadodara, our Global Parts Centre (GPC) at
Neemrana, Centre for Innovation and Technology (CIT) in
Jaipur and our corporate office in Delhi. The environment
performance data disclosed in the report is pertinent to
the manufacturing plant sites, GPC and CIT. The disclosure
regarding people performance covers our corporate office as
well, in addition to aforementioned facilities.

Data Compilation Methodology


The data published in our sustainability report is
collected through various internal reporting systems
for inclusion in sustainability report which, for the most
part, are different from those applicable to the Financial
information presented in our Financial Statements
(referred from Financial Statements from Annual
Report for FY 2018-19). We have employed systems
and practices in place for regular and reliable tracking
of various sustainability performance data. We have
pointed out any significant limitations in the information
presented in the Report, where applicable. In particular,
the standards and controls applied used during the
preparation of the data can be less comprehensive
in comparison, nevertheless we review and update
them regularly. We reserve the right to change our
internal guidelines regarding the inclusion of data in
the Sustainability Report; however same will be clearly
communicated at the time.

6
Company
Overview
With innovation at the core of Hero MotoCorp has taken rapid strides to expand
its philosophy, Hero MotoCorp its presence to 37 countries across Asia, Africa,
has been at the forefront of and South & Central America. It is a truly global
designing and developing enterprise with a workforce that comprises of
technologically advanced people from different nationalities across the
two-wheelers for customers globe.
around the world. It became the
world’s largest two-wheeler With over 85 million satisfied customers across the
manufacturer in 2001, in terms of globe, it continues to champion socio-economic
unit volume sales in a calendar progress and empowerment through its range of
year and has maintained the products and services. At Hero MotoCorp, our goal
coveted title for the past 18 isn’t limited to business but encompasses the
consecutive years. broader spectrum of serving humanity through
social initiatives.

7 7
Awards
& Recognitions

CII - ITC: ET now: Best CII - ITC: FICCI Road


Excellence Green Excellence Excellence Safety Awards
award in Sustainability award in CSR 2018
Environment Award
Management

CII environment ET 4 Good: Excellence in Diamond Award


best practice Highest Rating compliance of for Best CSR
award: GVDP- in ET 2 Good Safety, Health Practices in
most innovative 4 good and Welfare Haryana
project provisions

8
Triple bottom-line highlights

`
financial highlights

Vehicle Sales Earnings Per Net Income Profit After Tax


(No. in Millions) Share (INR) (Crore INR) (Crore INR)

FY18-19 7.82 169.48 34,342 3,385

FY17-18 7.59 185.14 33,398 3,697

environmental highlights
Total Energy Water
Consumption Emissions Recycled or
(Million GJ) (Kg / Vehicle) Reused (%)

FY18-19 1.38 18.6 66

FY17-18 1.40 18.8 66

social highlights
Number of Number of
CSR Trees Planted Specially abled children supported
Expenditure in Hero Green supported for education
(Crore INR) Drive (cumulative) (cumulative)

FY18-19 101.95 759,910 2,399 367,103

FY17-18 84.34 442,914 1,897 256,895

9
Xtreme 200R

Our Products
To cash in the burgeoning demand in the two-wheeler
segment, we have launched Destini 125 and Xtreme 200R
nationally, to become the first of its kind to sport the i3s
technology in scooters. We also showcased the Hero XPulse
200T at the EICMA Motorcycle Show in Milan. This will allow us
to strengthen our premium portfolio, as well as consolidate
our position in the fast growing 125cc scooter segment.

Destini 125

10
Our Operations
and Global
Footprint
Hero MotoCorp is one of the leading Indian
automotive company headquartered in
New Delhi, India with state-of-the-art
manufacturing facilities in India, Colombia
and Bangladesh. We have five plants in India
and the upcoming sixth plant in Chittoor,
Andhra Pradesh. Our state-of-the-art facility
Global Parts Centre (GPC) at Neemrana,
Rajasthan supplies the parts to our local and
global markets. Similarly, Centre of Innovation
and Technology (CIT) at Jaipur will now be
supported by our first global R&D facility -
The Hero Tech Center GmbH in Germany. With
this global R&D center, the Company plans to
enhance and strengthen technical know-how
and product development capabilities. The
Hero Tech Center in Germany will also enable
the Company to access the tremendous
intellectual skills readily available across
Europe and merge them with the ongoing
operations at the CIT. At Hero MotoCorp, we
have already built multiple technological
advanced concepts such as Xpulse 200T.

All five of our Indian plants are ISO 9001:2015


and ISO 14001:2015 certified, adhering to the
leading management practices pertaining
to quality and environment management.
Our newest facilities are built using green
building criteria and certified by IGBC
(Indian Green Building Council). Other major
certifications received by our facilities
include OHSAS 18001:2007, ISO 45001:2015
and ISO 50001. Our Neemrana plant recently
achieved the distinction of achieving
certification for Zero Waste to Landfill and
we envisage to replicate this achievement in
other plants in a phase-wise manner.

11
Memberships & policy advocacy
We engage with our peers through several forums to discuss and adopt best practices for
our industry. We also try to garner support for collective action on issues that promote public
good. The major associations we engage with are the Confederation of Indian Industry (CII), PHD
Chamber of Commerce, Society of Indian Automobile Manufacturers (SIAM) and Gurgaon Chamber
of Commerce & Industries. Our approach is to promote Sustainability in partnership with industry
associations, like the CII, PHD, FICCI, etc. in order to have a multiplier impact. In addition,
we have several initiatives to create awareness on road safety among a cross-section of
stakeholders that include governing/enforcement agencies, commuters, corporates, schools/
colleges and more.

12
Sustainability Strategy
Our approach to a rapidly expanding global marketplace is guided by our conviction that
sustainability is the right compass to address long term strategic business goals. Our
sustainability strategy is aligned with our mission to be the global enterprise fulfilling its
customers’ needs and aspirations for mobility. Our consistent focus is on ESG (Environment,
Social and Governance) parameters enabling us to create a sustainable future.

We crafted our sustainability strategy through a process of internal and external consultation,
benchmarking against peers and alignment with national and global goals.

13
Our Governance Sustainability
System Governance
We are committed to benchmark with the best standards Hero MotoCorp’s sustainability governance structure has a
of corporate governance. It is our firm faith that good cross-functional representation with leadership oversight
corporate governance practices are powerful enablers at the Board level. The sustainability strategy has been
to build trust and confidence and to attract and retain implemented across all facets of business. The Hero
financial and human capital. We believe in – Doing MotoCorp sustainability team has representation from all
the “right things” in the “right manner”. Our Board has functions of business. This team regularly reports to the
evolved and adopted a Code of Conduct based on the Sustainability Steering Head, who is a C-suite executive
principles of the best management practices that are advised by various executives from the Advisory committee.
followed globally. Our Board of Directors is a combination The Steering Head monitors the overall sustainability
of executive and non-executive directors with more than performance and he also acts as the conduit between the
two-thirds of the board comprising of non-executive core implementation team and the apex body. The core
directors. The Chairperson of the Board is an executive team has proficiency on different areas of sustainability
director and over two-thirds of the board of directors including GRI standards, EHS standards and Total Productive
is comprised of independent directors. We have one- Maintenance (TPM). The team is responsible for the
woman director on our board who is a non-Executive, implementation of sustainability initiatives in accordance
Independent Director. The Independent Directors of with the Sustainability Strategy Roadmap for Hero MotoCorp.
Hero MotoCorp are well- appreciated individuals in their The team also facilitates sustainability audits, public
respective fields and brings an independent perspective disclosures in the form of sustainability report, participation
on different issues of strategy, performance, risk in environmental and social awards and disclosures to
management, corporate governance and code of sustainability rating bodies.
conduct.

Sustainability Steering Committee

VIJAY SETHI NEERJA SHARMA


VIKRAM S. KASBEKAR Chief Information Officer, Company Secretary & Chief
Executive Director-Operations Head CSR & Chief Human Compliance Officer
(Plants) & Chief Technology Officer Resources Officer

Environment Social governance

The Sustainability Steering Committee monitors the Environmental, Social and Governance (ESG)
performance of the Company. The Committee with its visionary leadership provides strategic
overview, assess business risks and identifies future opportunities.

It plays an important role in instilling a culture of sustainable long-term planning and forward-
thinking in the organization. Our leadership team drives sustainable practices across our value
chain to make sustainability integral to the DNA of Hero MotoCorp and its stakeholders. The
Steering Committee regularly reviews sustainability strategy and programs around HATS to ensure
our efforts are aligned with the global agenda.

14
VIKRAM S. KASBEKAR VIJAY SETHI NEERJA SHARMA
Executive Director-Operations Chief Information Officer, Company Secretary & Chief
(Plants) & Chief Technology Officer* Head CSR & Chief Human Compliance Officer
Resources Officer

NEERAJ MATHUR NIRANJAN GUPTA RAJAT BHARGAVA


Head – Strategic Sourcing & Chief Financial Officer Head - Strategy & Performance
Supply Chain Transformation & Global Business

SANJAY BHAN MARKUS BRAUNSPERGER


MALO LE MASSON **
Head - Sales & After Sales
Head - Global Product Planning
***

* Appointed as Chief Technology Officer in July 2019


** Former Chief Technology Officer; Moved out of Hero MotoCorp in July 2019
*** Moved out of Hero MotoCorp in December 2019

“At Hero MotoCorp, We believe in maintaining ecological standards along with business
standards. Our endeavor is to build on comprehensive strategies around transparency,
fairness, integrity, equity and accountability. We work relentlessly to ensure highest
standard of ethics and transparency in corporate governance while working closely
with the board of directors, external stakeholders, and regulatory bodies. Hero
MotoCorp constantly strives to align vision and business strategy with the welfare of all
stakeholders.

Sustained efforts of the leadership, Core Sustainability Team, our valuable employees
and other stakeholders has contributed to winning several recognitions in the spheres
of Corporate Governance, Sustainability, csr and hr. These recognitions provide us
encouragement to improve even more and we strive to become a global sustainability
leader.”

Leadership Team, Hero MotoCorp

15
Policies
We have instituted several policies and frameworks to ensure needs and aspirations for mobility. Our consistent focus is
ethical conduct of our business, at all customer touch points, on ESG (Environment, Social and Governance) parameters to
among our employees and with our business associates. Our enhance Hero MotoCorp’s triple bottom line (people, planet and
policies ensure that we are always able to engage with our profit).
stakeholders in a consistent and justifiable manner. Details of
our key policies pertaining to Insider Trading, Quality, Safety, The company endeavours to provide an engaging
Environment, Related Policy Transactions, CSR and Whistle environment for its people to perform to their true potential
Blower Policy. Hero MotoCorp has adopted the Code of Conduct and will continue its focus on value creation and enduring
for its members and senior executives to provide guidance on relationships with its stakeholders. We have defined our
tackling issues like conflict of interest, fair dealing, handling sustainability vision to act as the guiding light for our
of company property and confidential information, insider sustainability principles and have developed a robust
trading and non-compliance. All these policies are available on governance ecosystem to ensure continuity and accountability
our website. of our commitments.

We have a Sustainability Policy which consolidates our efforts Sustainable Procurement


towards our sustainability agenda.
Hero MotoCorp is committed to its sustainable growth of its
value chain. Sustainability aspects is one of the key elements
Hero MotoCorp Sustainability Policy in partner evaluation methodology. Hero MotoCorp shall
Our approach to a rapidly expanding global marketplace is incorporate Environmental, Social, Governance and Quality
guided not only by our insights into customers needs and (ESG&Q) considerations as a part of its procurement process.
expectations but also by our conviction that sustainability
is the right compass to use to tackle long term strategic We envisage that our business partners will not only implement
business goals. Our sustainability efforts are aligned with our necessary policies and procedures at their own company,
mission to be the global enterprise fulfilling its customers’ but they will also monitor its own supply chain to ensure
commitment to ESG&Q parameters.

Compliance
As a leading organization, our major management to mitigate human errors activities and a real-time dashboard to
aim is to ensure that we manage our reducing compliance related risks. the management for graphical reports.
compliances effectively. We have The tool is periodically updated by an Through this tool and awareness creation
upgraded our e-compliance tool - a independent third-party to ensure on the importance of 100% compliance,
web based self-assessment tool which the latest changes in statutory and we are constantly striving for improved
proactively defines and executes the legal requirements are incorporated compliance discipline and culture in the
applicable legal and statutory obligations and adhered to. The tool provides organization. A brief snapshot of various
across India. The tool went live in automated alerts and granular task view compliance is provided in the below figure.
December and automates compliance for the users tasked with compliance

Environmental All statutory compliances with respect to preventive maintenance schedule and environmental clearances
through respective Pollution Control Board are taken on time. We have installed several systems and
equipment in place to become zero discharge, thereby avoiding compliance issues from any of the Pollution
Control Boards. A brief on environmental compliance is also included in the agenda for the Board Meetings on
a quarterly basis where any non-compliance, show cause notices, orders or any changes in the regulations
are reviewed. We have not been levied with any environmental fines during the reporting period.

CSR We see the provisions of Section 135 of the Companies Act as a means of engaging with our stakeholders
rather than a burden. We strive to strategically deploy our CSR expenses to reaffirm our “social license to
operate” in the areas where we operate by improving the societal condition around these areas and solving
the problems most important to the stakeholders.

Health, With a view to strengthen our safety standards, we have also established OHSAS-18001 standard which
Safety & ensures beyond compliance with applicable norms related to Factories Act, 1948. During the reporting period,
Human Rights
there has been no non-compliances identified related to discrimination, child labor or forced labor.

During the reporting year, there was one case of fine which was levied on account of the challan raised against accident cases in
FY 2017-18. Other than this there were no incidents fines or non-compliance with respect to the regulations or voluntary codes
concerning health & safety impacts of products and services, product related marketing communications, and product information
disclosure and labelling.

16
Risks & Opportunities
At Hero MotoCorp, we continuously identify, monitor, and mitigate the risk through a well-
defined Enterprise Risk Management (erm). The erm is guided by the risk management policy
approved by the risk management committee. To keep pace with the changing external
environment, the company not only considers risk as an integral part of the strategy but also
includes identification of new opportunities for the business, sector, and operations. The
company analyses risks & opportunities based on the potential impact on the company and
external influence. The risks, we believe, could impact our long-term growth are categorized
under economic, environmental, and social.

Identified Risks Potential Impact Opportunities Mitigation measures


Fluctuation in foreign Impact on sales in A high growth rate leading to Exchange rate exposures
exchange and currency global markets higher rural and urban income can be managed by utilising
prices leading to higher private forward foreign exchange
consumption contracts
Economic

Growth rate doesn’t Direct impact on volumes Favorable International trade Work towards calibrating
pick up policies demand forecast to boost
as forecasted growth

Increased cost of A Higher raw material cost An appreciation in INR will Due Diligence & effective
raw materials and will have a pressure on lead to favorable impact on management for optimized
commodities product margins import content in domestic settlements with raw material
manufacturing suppliers

Significant shift in Current IC engine products New revenue stream from Sense the evolving customer
technology from ICE volumes can potentially get EV products preferences ahead of
to EV impacted competition and introduce
new technology & experience
Environmental

to maintain competitive
advantage

Unfavorable regulations Compliance to stringent Systematic plan to follow Formulation and adaptation
from environmental regulations to curb regulations can provide of proper mitigation strategy
bodies environmental concerns competitive advantage to cater to regulations
could add to the overall
increasing cost of raw
material

Extreme weather Decreased demand Explore new opportunities for Formation of detailed
conditions innovative product design adaptation and mitigation
strategy

Customer preference This can have a potential Taking part in the shared Understanding the needs of
shifting to shared impact on traditional mobility business can provide customers and developing
mobility services ownership model early entrant advantage shared mobility solutions

Disturbance of Interruptions in production An increased brand presence Regular two-way worker-top


industrial harmony due and loss of output in urban sector could management communication,
Social

to labor issues potentially translate into with focus on understanding


higher volumes in premium and resolving issues
segment motorcycles

Limited talent pool for New technologies would Enhancing capacity building Onboarding suitable talent
new technologies require onboarding suitable opportunities & adopting and providing necessary
talent; inability to hire such innovative methods of skill trainings to existing ones
talent can adversely impact development
any organization

17
Financial Overview
Hero MotoCorp two-wheelers have been the wheels of Disciplined financial management and controls are critical
growth and socio-economic development for over three to ensure long-term success and value creation for Hero
decades. We continue to contribute towards economic MotoCorp. We maintain robust financial controls, a strong
growth by direct employment, job creation in the value dedication to financial returns, and an intense focus on
chain and empowering our customers through mobility. creating value through economic growth, strategic capital
We constantly aim to strike a balance between economic spending, and cost-reduction activities. We also ensure
gains for our shareholders and environmental and social transparency in our CSR Spending and tax disclosures to
benefits to society, leading to shared value creation in the ensure a significant portion of our profits directly benefit
long run. society.

Economic Value distributed Financial assistance received from government


Net
Revenues Subsidies

FY18-19 34,341.79 FY18-19 419.30

FY17-18 33,397.64 FY17-18 550.15

(Crore INR) (Crore INR)

Economic Value Distributed


Total Payments to Contribution Voluntary Benefits
Operating Profit After Expenditure Providers of to the Community for Carrying
costs Tax (PAT) on Employees Capital Exchequer Investments out R&D

FY18-19 29,331.06 3,384.87 1,730.24 8.60 12010.61 101.95 41.14

FY17-18 28,153.48 3,697.36 1,540.13 6.25 9,605.00 84.34 42.06

(Crore INR)

Shareholding Pattern Shareholding Pattern as on March 31, 2019


Hero MotoCorp is a public 1.36 0.32
company domiciled and 0.30 2.61 1.86
incorporated under the provisions
of India’s Companies Act, 1956 on Bodies Corporate/IEPF
January 19, 1984. The securities Clearing Members
6.60
of Hero MotoCorp are listed on the Financial Institutions/Banks/NBFCs
7.62
BSE Limited (BSE) and National Foreign Portfolio Investors/Foreign Nationals
Stock Exchange of India Limited 6.50
Promoters
(NSE). The exact shareholding 0.06 Promoters Group
pattern as on March 31, 2019 is 38.19 Indian Public
shown in the following figure. Insurance Companies
Mutual Funds/UTI/AIF
34.57 Non Resident Indians
Trusts

18
Tax Transparency
Acting with integrity in the creation and execution of Hero MotoCorp’s effective tax (32.45% in FY19 and
our tax strategy, policies and practices is absolutely 29.50% in FY18) is generally lower than India’s applicable
core to our approach to tax, as is our commitment to corporate tax rate of 34.944%. This is due to various non-
transparency. We disclose our financial contributions temporary deductions including deduction for research
to governments at a country level, as we believe this and development concessions and earnings from
is an important way to demonstrate that it is possible investments which are subject to lower tax rates.
to achieve an effective balance between a company’s
responsibilities to society, through the payment of taxes Chief Financial Officer holds the responsibility for tax
and its obligations to its shareholders. at the Board level and communicates with and advises
the Board on the tax affairs and risks of the Company
For any business, an increase in taxes paid equates with support from the Company’s highly qualified and
to a reduction in the profit available to invest in future professional corporate tax team including consultants.
growth or in returns to shareholders. The interests of Risk mitigation is carried out by taking strong technical
the individual pensioner, saver and shareholder could positions in accordance with the applicable laws. Material
therefore be seen to be in conflict with the interests tax risks or disputes are reported to the Audit Committee
of an individual citizen. However, we believe that it is for its consideration. This review includes assessment
strongly in shareholders’ interests that companies fully of probabilities of different outcomes, cash flow and
acknowledge their responsibilities to wider society, reputational impact.
including the payment of all taxes due under effective
tax regimes. We also recognize and value the benefits
for society that arise from well-functioning taxation
systems.

Hero MotoCorp strives to ensure that commercial


transactions are in full compliance with the law. Tax
incentives and exemptions are claimed to the extent
legitimate. The Company’s affairs are transformed in most
tax-efficient ways and where the law or regulation, as
the case maybe, is ambiguous or conflicting, appropriate
expert internal and external professional advice is sought
before taking a call on the same.

Local Procurement
& Hiring
We encourage sourcing locally, be it for
manpower, components or materials. We
support a large number of MSME enterprises
which employ thousands of persons
locally. We have a fine balance of local
and international employees to ensure
employment creation in proximity of our
operations, while at the same time revitalizing
our intellectual capital by hiring the best
talents available globally. We employ people
from various countries including Germany,
France, Italy, Austria, Japan, UK, US, Colombia
and Bangladesh.

19
Stakeholder Engagement

To build trust with our stakeholders, we are proactively engaging with our stakeholders
and taking steps to alleviate their concerns and incorporate their valuable suggestions. We
communicate regularly and transparently to ensure the best possible information is easily
accessible for our stakeholders spread across the world. The key stakeholders regularly
engaged by us are as shown in the infographic below.

Local
communities
employees

Media

customers

regulatory
& statutory
bodies

dealers

vendors

shareholders
Banks

20
Materiality Assessment

In 2017, we conducted our materiality assessment with the re-validate the significant material topics reported in
help of an independent third party. Materiality assessment 2017-18. Through multiple channels, the Company has
helps us to identify and prioritize key sustainability issues organised structured stakeholder discussions with
from the business and stakeholder perspective. The management personnel from different functions who
essence of materiality definition is akin to the accounting represents the voice of external stakeholders, to evaluate
definition wherein important issues to the business become the significance of the potential material issues. Basis
essential to monitor and report. To deliver long term value in discussions with internal stakeholders, Human Rights,
the volatile external environment and changing stakeholder and Business Growth and Profitability turned out to be
expectation, the Company reviews its material issues on a much more relevant now both to the Company and to the
continuous basis. During the reporting period, the Company stakeholders. The degree of relevance for the remaining
conducted internal stakeholder consultations to parameter was the same as reported in 2017-18.

Materiality Matrix

Skills Development Health & Safety


High

Emissions to Air Business Growth


and Profitability
Human Rights
Responsible
Supply Chain Water Conservation

Energy and GHG


Management
Waste Management
Input Material availability
and efficiency
Relevance to Stakeholders

Environmental
Impact of Products
Customer Product Stewardship
Privacy

Fuel Management
& Transportation Responsible Marketing and
Diverse Customer Satisfaction
Workforce

Community Engagement &


Development

Talent Recruitment &


Retention

Employee Benefits

Minimum Wages
Low

Low Relevance to Hero High

Environmental Social Economic & Governance

21
Sustainability
Pillar :
Eco efficiency

At Hero MotoCorp, we believe


in sound and sustainable
environmental practices.
Since inception we have cared
for the environment and our
environment management
aims toward ensuring that the
ecosystem services in areas
where we operate are protected
and maintained for equitable
use by future generations. Under
the sustainability pillar – eco-
efficiency, we strive to improve our
performance with respect to water,
energy, material consumption,
waste generation and air
emissions. The same is briefly
explained in the following sections
through our environmental
performance data and few selected
case studies.

22
Energy & GHG
We meet our energy demand through grid-electricity, natural gas and
solar power. Natural gas has lower emissions and doesn’t leave any solid
and liquid wastes. For power back-up, we have installed DG sets at our
plants. In our operations, a good energy indicator of energy consumption
is determined by the number of vehicles produced. Hence, ‘energy
Energy Consumption FY 18 Energy Consumption FY 19
intensity’ of our production processes is determined in terms of units 13,98,118 GJ 13,85,708 GJ
produced. Our energy consumption has reduced from 0.187 GJ/ Vehicle in (Direct + Indirect) (Direct + Indirect)
FY18 to 0.1761 GJ/Vehicle in FY 19.

We also manage our environmental footprint by reducing the impact 3,89,439 4,11,990
of direct emissions of GHG from workplaces and indirect emission of
GHG from the energy consumption and electricity. To reduce logistics
9,73,718
emission, we are also working towards efficient transportation and 10,08,679
scheduling of inputs and finished goods. This includes employee
commute by using shared company transportation and work collaboration
through video, voice and web-conferencing services. Direct Energy Consumption Indirect Energy Consumption

1
Excludes GPC for FY 18-19.

Direct Energy Consumption


Fuel Type Consumption Consumption GHG Emissions Consumption GHG Emissions
FY18-19 FY18-19 (excluding GPC) (tCO2e) FY18-19 FY17-18 (tCO2e) FY17-18
HSD (Litre) 41,33,072 41,12,192 10,910 40,34,294 10,649
Propane (Kg) 5,59,091 5,58,020 1,678 9,52,430 2,859
FO (Kg) - - - 12,821 35
Natural Gas (SCM) 1,86,06,910 1,85,96,844 37,595 1,92,22,420 38,838
Solar Power (kWh) 74,29,263 6,692,265 - 55,71,808 -
Indirect Energy Consumption
Grid Power (kWh) 11,44,41,794 10,88,18,030 93,842 10,81,77,518 88,706

Energy Saving Projects

Solar Powered Smart Tree Canteen Dish Washing Energy Efficient Heat Pump
Hero MotoCorp has installed in front of Machine using Solar The exisiting electric heaters in
the Admin Block. The solar panels are Thermal the Crankshaft Washing machine
arranged in tree styled arrangement, were replaced by energy efficient
Hot water generated from Solar
with Azimuth Tracking system, where compression type heat pump, which
Thermal installation at Gurgaon plant
solar panels rotates according to releases more heat and consumes less
is being used for supplying hot water
sun’s daily movement and hence is amount of energy, resulting in energy
to the Canteen Dish Washing Machine.
more efficient than fixed type solar savings.
The installed solar dish has low
panels.
aperture area which results into higher
thermal efficiency in comparision to
a single big dish. The dish has been
certified by National Institute of Solar
Energy (NISE).

23
Water
For all our facilities, we have achieved zero discharge status. To
reduce our dependency on external water source, we use innovative
techniques. The amount of water withdrawn and recycled is shown
in the following table

Water usage Units FY18-19 FY18-19 FY17-18


(excluding GPC)
Total water KL 10,56,447 10,29,633 11,00,203
withdrawal
Water recycled or KL 6,94,697 6,79,209 7,30,132
reused
% of total water % 66 66 66
withdrawal
recycled or reused

Automated Waterless Solar Module Cleaning WaterMaker – Water from Air


With the philosophy of ‘Being Right for the First Time’, Hero MotoCorp As part of Sustainability Strategy focusing
has found a solution for cleaning its solar modules installed in on water conservation, Hero MotoCorp
Rajasthan, an area which is water scarce and dust prone. For the has installed WaterMaker at its Vadodara
solar plant to generate efficiently in dust prone zone, frequent Plant, Gujarat. The Water-Maker solution
cleaning of solar modules is extremely important and requires uses a unique technology of optimized
around 20-30 KL of water annually per MW solar Power plant dehumidification to extract and condense
capacity. moisture present in the air to produce
purified drinking water. Unlike RO and
Our Automated Waterless Solar Module Cleaning uses nylon brushes desalination systems that waste 70% of
instead of water for cleaning the modules. The equipment covers the the water as reject water, there is no water
complete solar array and is powered by direct current motors which wastage and each unit can generate RO
are energized by solar power (refer to the image). The system is quality water. After successful deployment
currently already installed at CIT, Jaipur and is saving water annually. at our plant, we are exploring the feasibility
of installing the WaterMaker at remote
locations through our CSR initiatives.

24
Material
We strive to provide the same or Material consumed Units FY18-19 FY17-18
better quality and performance from Steel Tonnes 654,941 652,574
our vehicles while rationalizing the
Aluminium Tonnes 172,121 173,000
material consumption, especially for
Rubber Tonnes 37,949 38,903
virgin materials. Preference is given to
recycled or recyclable inputs wherever Plastic Tonnes 51,010 48,909
possible. The table provides the Paint & Thinners KL 25,119 24,361
consumption of major raw materials ABS Tonnes 17,467 16,940
during the last two years.
Engine & Shocker Oil KL 12,907 10,119
Non-Ferrous Tonnes 19,399 18,814
Aluminium and Steel provide us
the opportunity to use second-life
materials in place of virgin materials in Material Recycled inputs used in Recycled inputs used in
few of our components. The amount of FY18-19 (tonnes) FY17-18 (tonnes)
recycled inputs used by us are provided Aluminium 1,01,550 98,778
in the table. Steel 42,076 40,956

Waste Non-hazardous Waste


The non-hazardous waste generated at our plants comprises of metal turnings
Hero MotoCorp has a long vision to
and rejected metal or plastic components. The amount of non-hazardous waste
achieve waste neutrality by next generated in two years is shown in the table:
decade. Our large proportion of products
are made of metal. These products have Non-Hazardous Waste Quantity Quantity Quantity
inherently recyclable content. Therefore, Generated FY18-19 FY18-19 FY17-18
we don’t have solid waste as a major (excluding GPC)
issue at our facilities. We recycle 69% Al. Scrap (Tons) 3,683 3,681 3,660
of the process treated water for use in
plant operations and remaining is used Steel Scrap (Tons) 4,711 4,631 5,066
for horticulture activities. All our units Packing Material (Tons) 1,924 1,708 1,390
have systemized water-management
system that conserves, harvests, and
reuses and recycles water.

Hazardous waste
The hazardous waste generated at
Hazardous Waste generated Quantity Quantity
our plant comprises of waste oil, ETP
FY18-19 FY17-18
Sludge, DG and compressor filter and
ETP Sludge (Kg) 7,96,119 7,36,990
paint-chemical scrap. All our units have
sewage-treatment plants, effluent- Paint Sludge (Kg) 12,30,094 17,72,289
treatment plants, waste food- treatment Grinding Sludge (Kg) 2,58,933 2,40,952
mechanism, oil conversation and Phosphate Sludge (Kg) 47,308 33,412
paints conservation methodologies. We Incineration Ash (Kg) 22,420 75,263
ensure to handle all hazardous waste in
Used Oil (Liters) 66,640 59,442
compliance with local regulations. The
amount of hazardous waste generated
in two years is shown in the table:

25
Zero Waste to Landfill (ZWL)
Our commitment towards sustainability efforts to
demonstrate Garden factory theme “Sustainable
Plant- Sustainable Planet” & “Manufacturing
Happiness” is fulfilled by using Zero Waste to Landfill
approach, which was taken up by Neemrana as a
challenge in April 2018. The activity involved baseline
data collection and documenting the whole initiative
into a structured Zero Waste to Landfill handbook
comprising of legal aspects, planning, identification
and execution of improvement projects with current
practices as well as proposed methods of disposal,
input waste segregation for all types of wastes which
includes hazardous and non-hazardous wastes after
study of all process and sub processes of plants.

The effort of ZWL underwent certification process Implementing a zero waste to landfill program resulted in
benchmarked with international practices which not only efficiency in manufacturing processes but also
focused on Reduction of waste at source, Regulatory save physical and financial resources through converting
compliance, Mass balance & Mass flow cost waste in to resource for others and reuse as raw materials
accounting. Neemrana Plant achieved Zero Waste to
Landfill for diversion rates more than 99% after
pre-assessment and final certification audit from
source generation to end disposal.

Elimination of Single Use Plastic


Hero MotoCorp took the challenge of elimination of “Single Use Plastic” from its operations after commitment of our CMD Sh Pawan
Munjal to ban the single use plastic by Feb 19 in one the Town Halls in Jan 2019.

The company undertook Large scale efforts to eliminate single use plastic at companywide level. In this efforts we did not limit
ourselves to carry bags, water bottles, straws, disposable plastic plates and cutlery etc but went beyond to inventories the single
use plastics used in the products and parts packaging both in inbound and outbound materials and products.

The company eliminated use of approx. 20% (5.0 Metric tones/ month) of its single use plastic single use plastic from its
operations. The remaining plastic packaging either converted to re-usable/ returnable or recyclable plastic with EPR declaration
as per the Plastics Management and Handling rules 2016.

26
Air Emissions
In our manufacturing plants, the process vents and the usage of fossil
fuel generates air emissions load of SOx, NOx, and Particulate Matter.
We monitor air emissions NOx, SOx, and particulate matter to keep
emissions below the permissible limits. The details of air emissions from
manufacturing plants is given in the following table:

Emissions FY18-19 FY17-18

NOx Load (Tons) 348 357

PM Load (Tons) 73 77

SOx Load (Tons) 40 33

Ozone Depletion and VOCs


We are taking initiatives in reducing our ODS footprint at all our facilities.
We are replacing our old air conditioners with new environmentally friendly
air conditioners. These air conditioners use R410 gas and do not harm
the ozone layer. We have also switched to five-star rated air conditioners
and have made improvements through centralized refrigeration at all
our facilities. We are in a transition phase of safer technologies. The ODS
footprint of last two years has been shown in the following table:

Ozone-depleting FY 2018-19 FY 2018-19 FY 2017-18 RTO (Regenerative


substance emitted (Kg CFC-11 (Kg CFC-11 (Kg CFC-11 Thermal Oxidizer)
by the organization equiv.) equiv.) equiv.)
(excluding GPC)
Flue gases coming from baking
oven of paint shop contains
R22 Freon Gas 34 34 20 large amount of vocs, which
R22 Mafron Gas 32 30 21 although non-toxic in nature
but inhaling for long time can
We are also working towards the unique concept of Regenerative Thermal cause various health problems.
Oxidizers (RTO) to control the release of Volatile Organic Compounds
The flue gases are treated in
(VOC). RTO treats VOCs before letting them into the environment. We have
an rto system by passing them
introduced this concept at our plant in Vadodara, Gujarat and trying to
extend this technology at all our facilities.
through combustion chamber
at a high temperature of 850°c
approx. and then converted
into co2 and water vapour
which is then released into the
atmosphere.

27
Sustainability across
value chain
Sustainability
Hero MotoCorp is committed towards Pillar :
promoting sustainability across its value
chain. Through collaboration with our
business partners, we aim to enhance
Responsible
business relationships, ensure the highest
quality standards and create a sustainable
Value chain
supply chain. We view our suppliers and
business partners as an extension of our
global enterprise and an integral part of
our company’s long-term success.

Through collaboration, we would like


our business partners to gain full
understanding of our expectations Sustainable
towards sustainable development and Procurement
good corporate citizenship, to assure Hero MotoCorp is committed to implement
sustainability best practices in the entire value
legal compliance at all times, and to chain. Our value chain partners play a vital role
work together with Hero MotoCorp in the in our commitment towards sustainability, as
spirit expressed in these sustainable a major portion of our manufacturing takes
place outside our boundaries. We have adopted
procurement guidelines. Our expectation a holistic approach towards supply chain
is that our business partners/suppliers sustainability which includes productivity
improvement, technology up-gradation, Green
will not only implement necessary policies vendor and green dealer development programs
and procedures at their own company, but and implementing benchmark trendsetting
sustainability practices. We have recently rolled
they will also promote and ensure the same out the Sustainable procurement guidelines
responsible behaviour in their own supply to clearly and transparently communicate our
expectations from value chain partners on
chains. aspects such as environmental management,
human rights and labor practices, compliance,
governance practices and information
confidentiality.

28
Several initiatives are undertaken by our strategic sourcing and supply chain, vendor
development and sales teams to strengthen sustainability performance on Hero MotoCorp’s
value chain. Few of the key initiatives during the year were as follows:

• Operation excellence Program along through inclusive learning by means Program (GVDP) on World
with ACMA covering 52 suppliers was of Basic and Advance Hero Supplier Environment Day i.e. June 5, 2018. A
initiated in FY 2018-19. A roadmap Excellence cluster program. Through new initiative was also undertaken
has been prepared for improvements this initiative we have touched under GVDP i.e. De-Risking of Supply
to improve the plants through 5S, multiple Tier 1, Tier 2 suppliers and Chain Partners (SCP) from major fire
Quality Circles, Planning and delivery achieved remarkable improvement & Safety hazards. 10 New suppliers
improvement. in Productivity, Quality, and Delivery were enrolled for new parts quality
aspect of the business. upgradation for direct-on-line
• Leveraging industry experts such as supplies in Program SCOPE (Supplier
ACMA and CII to upgrade the current • 20 new Suppliers plant were added Certification of Parts Excellence), in
supply chain to be future ready in Green Vendor Development FY 2018- 19.

29
Logistics Improvements
• A third-party Logistics Company • New Packing Concept of Foldable • New truck designing concepts
(3PL) was hired in the Dharuhera Large Container (FLC) implemented like side unloading and double
plant and it is already working for long haul transportation for decking implemented in logistics
successfully in Haridwar and parts like cylinder block and other which benefit in better loading
Neemrana plants which resulted items resulting in higher volume / unloading turnaround time
in optimisation of trips and utilization of inbound vehicle and and vehicle volume utilization.
subsequently in reduction of reducing trucks requirement Alternate fuel usage is being
emissions. In order to improve encouraged in the inbound
IBL efficiency, Double Deck Truck logistics operation. CNG vehicles
Concept has been introduced are being introduced in IBL
at Neemrana plant which will operation in Dharuhera to reduce
further reduce Carbon footprint the logistics related emissions.
on selected routes.

Customer Satisfaction
Customer experience has always been our priority and we believe in delivering
high quality product and services. We also recognize the value sensitivity of
the average customer, therefore, despite the highest quality standards, our
spare parts are priced in an affordable manner to lower the parts replacement
cost of our customers. To enhance customer experience, we participate
in different surveys and assessments, which are carried out by third party
experts from the automotive sector.

Digital Launch
of Hero’s Latest
Offerings
Hero MotoCorp has hosted a
one-of-its-kind digital launch of
some of the latest offerings to
all domestic dealers and global
distributors. In a distinctively
unique format, it created first of
its kind interaction reaching out
to a huge audience across
40 countries.

This provided a chance to


witness one of the most
innovative and futuristic product
launches.

30
PRODUCT QUALITY
In FY 2019, J.D Power conducted a study
“The 2019 Two-Wheeler Initial Quality
Study (2WIQS)”. This study is based on
evaluations from 8,905 owners who
purchased a new two-wheeler vehicle
between March 2018 and October 2018.
The study included 85 two-wheeler
models from nine companies and
covered 45 cities across India. The
study measured problems owners
experienced with their new two-wheeler
during the first two to six months of
ownership. In this study, one of our
products featured in the top of the list,
and two of our products featured in the
top 3. This is a testament to our efforts
towards customer satisfaction and we
continue to take all measures to delight
our customers.

31
Sustainability
Pillar :
Product
Stewardship

Environmental Impact of
Products
Hero MotoCorp has initiated life
cycle assessment (lca) of all the
products and analysis of the overall
environmental impact of the product,
right from its birth as an idea, to
design, development and usage
till the end of their useful life and
disposal. The development of all our
products is done after assessing
the findings and conclusions of lca
as part of ‘green regime’. Life cycle
assessment helps in identification
of hot spots and incorporating them
into product design and development
at every step.

32
Case Study: Life cycle assessment of HF Deluxe
In line with the HATS 2020 target, Hero MotoCorp has manufacturing phase except for Abiotic Depletion Potential
taken several initiatives to build in house capability for (ADP), Ozone Depletion Potential (ODP) and Human Toxicity
LCA assessment and has begun the LCA journey with HF Potential (HTP).
Deluxe. The objective of the LCA study was to understand
& document by facts and figures the actual environmental
performance of HF Deluxe vehicle for various impact
categories with key focus on primary energy consumption,
GHG emissions, acidification potential, blue water
consumption, primary energy demand, and photochemical
ozone creation potential with a cradle to grave approach.
The typical life cycle of the HF Deluxe includes raw material
extraction, machining, assembly, testing, maintenance, use
phase, and end-of-life phase. With the help of the study,
the Company was successful in identifying the status of the
environmental performance of the HF Deluxe. The Company
aims to utilize the findings and improve the sustainability
of future products. From the study it was identified that
over the cradle to grave life cycle for HF Deluxe for a life,
maximum impacts occur during the use phase followed by

Life Cycle Assessment

06 01
END OF LIEF AND RAW MATERIAL
DISPOSAL EXTRACTION

05 02
2 WHEELER MATERIAL
USAGE PROCESSING

04 03
ASSEMBLY AND MANUFACTURING
DISPATCH IN PLANTS

33
Product Innovation
Hero MotoCorp established the Hero Tech Center Germany GmbH its
first Research and Development (R&D) Center at a global location. A
wholly-owned subsidiary of Hero MotoCorp Limited - the new Center of
technology - located at Stephanskirchen near Munich in Germany - will
operate in tandem with Hero’s Global R&D hub, the Center of Innovation
and Technology (CIT) and will be under the direct supervision of Chief
Technology Officer (CTO) at Hero MotoCorp. The Center will initially focus
on development of new vehicle concepts and future technologies
and will also be the epicenter for Hero’s motorsport team - the Hero
MotoSports Team.

i3S - idle - stop - start - system


Hero MotoCorp’s patented i3S is a proven technology which enhances
fuel efficiency and promotes eco-efficiency. i3S improves fuel efficiency
by up to 5% and ensures carbon footprint reduction in the use phase
of the product. We have been including this technology in all our new
models and also incorporating it in the existing models as well.

hero Hatch
We encourage the culture of innovation within the organization. To take
this journey forward, we have taken our first step towards initiating start-
ups within Hero. In September 2018, we have launched a unique initiative
known as “Hero Hatch”. For this, we have selected a bunch of passionate
hatchers within the organization through the comprehensive and exhaustive
In order to strengthen selection process. Through this process, 19 hatchers have been selected.
product innovation, Hatch team has been working on several different projects of strategic
importance to the organization.
we have set up
Hero tech center
Germany Gmbh is
a realization of our
aspiration to build
an R&D eco-system
that is spread across
global geographies.
The Hero tech center
in Germany will be
a source of modern
technologies with a Hatch team does have a lot of privileges, but it comes with an added sense
focus on the global of responsibility, workload and managing everything on their own. Hatch
team has to prove their mettle at every stage and going through the same
customer base. grind that any start-up goes. They have to sacrifice their weekends to meet
the deadlines and work alongside the mechanics.

34
Sustainability
Pillar :
People

At Hero MotoCorp, we aim to build


and sustain a culture that is more
diverse and inclusive, open to new
ideas and overlooks the boundaries
of age, organization level, gender,
region, caste etc. We strive to build
a workplace that nurtures individual
joy and growth while maximizing
performance. We firmly believe
that our employees are our biggest
strength and a vital stakeholder in
contributing to sustainable growth
of Hero MotoCorp. With more than
8,500 permanent employees across
all our five indian manufacturing
plants, our corporate office and
global parts centre (gpc), it is
our constant endeavour to make
our company a place that people
aspire to work for. Hero MotoCorp
maintains a culture of diversity
and inclusion, upholds disciplined
employment practices, and
offers robust training and benefit
programs that promote employee
retention.

35
Our Workforce
As on March 31, 2019, nearly 3.3% of our permanent workforce was female and
96.7% was male. 100% of our permanent employees are covered under performance
evaluation and feedback process. We cultivate a diverse workforce of highly talented
individuals who are dedicated to integrity and high-quality work. We also aim to offer
equal opportunities to people of all working ages. The category and gender-wise
details of the workforce for FY18-19 are presented in the table below:

Workforce FY 19 FY 18
Total number of employees 8,551 8,266

Total number of employees 22,992 24,690


hired on temporary/
contractual/casual basis
Number of permanent 279 256
women employees
Employee associations • Hero MotoCorp • Hero MotoCorp
recognised by management Workers Union, Workers Union,
Gurgaon Plant Gurgaon Plant
• Hero MotoCorp • Hero MotoCorp
Workers Union, Workers Union,
Dharuhera Plant Dharuhera Plant
Percentage of permanent All confirmed workers All confirmed workers
employees who are members are part of the are part of the
of this recognised employee association association
association

During the reporting period, Hero MotoCorp recruited a total of 862 employees across
management and permanent worker categories. The breakup across age groups and
genders is shown in the table below.

Recruitment FY 18 -19 Age Group Gender Total


Breakup of personnel < 30 yrs. 30-50 yrs. > 50 yrs. Male Female
Management 459 177 2 577 61 638
Permanent Workers 54 167 3 224 0 224
Total 862
Recruitment FY 17-18 Age Group Gender Total
Breakup of personnel < 30 yrs. 30-50 yrs. > 50 yrs. Male Female
Management 436 134 5 478 97 575
Permanent Workers 28 38 - 66 - 66
Total 641

We assess employee turnover across different demographics of employees to uncover the causes for the same. We define
employee turnover as the number of employees who leave the organization voluntarily or due to dismissal, retirement, or death
in service.

36
Turnover FY 18 -19 Age Group Gender Total
Breakup of personnel < 30 yrs. 30-50 yrs. > 50 yrs. Male Female
Management 221 187 90 459 39 498
Permanent Workers 1 21 50 72 0 72
Total 570
Turnover FY 17-18 Age Group Gender Total
Breakup of personnel < 30 yrs. 30-50 yrs. > 50 yrs. Male Female
Management 174 151 65 359 31 390
Permanent Workers 0 44 36 80 0 80
Total 470

We believe in providing fair compensation to all our employees irrespective of their seniority, employment terms, gender, etc. We
pay well above the specified minimum wage for all our contractual workers.

Project Tejaswani
till March 2019, we had around 350 female employees on the shop floor around all the locations.

Diversity & Inclusiveness


Hero MotoCorp has set itself the aim of becoming a 10 countries, engage specially-abled persons and deploy
truly Global entity in terms of size, customer reach and women on shop floor. Today, we have women at shop floor
technology, which isn’t possible without having diversity, at our Gurgaon, Haridwar, Neemrana and Halol factories. We
equal opportunity and inclusion. Our D & I vision statement as an eco-system, have embarked upon a journey of cultural
of making Hero MotoCorp, a truly inclusive organization with transformation which not only aligns but will help achieve our
a culture that values, respects and encourages diversity, mission of transforming the world of mobility.
reinforces that aim.
We have successfully concluded the D&I diagnostic study
Focused efforts in the direction of diversity & inclusion which was done across the organization to understand our
have enabled us to improve the gender diversity from 2.3% current pulse. We are also conducting gender sensitization
to 3.3% within 3 years, attract more than 25 expats from sessions across the organization as a part of this effort.

37
Women oriented policies
As we progress in our journey of becoming a truly global We also celebrated Women’s day on March 8, 2019.
company, we have framed a number of policies across the
Company to make us a more employee friendly organization

• Enhanced Maternity & Paternity Leave.

• Special OD for Employees for special occasions, tending


to personal commitments.

• Enhanced Travel & Accommodation allowance


for women.

• Special provision for women members, who have kids


less than 3 years of age. They can take the kid and one
care-taker with them on business tour. In such cases,
women employee can claim 100% travel expenses and
up to 130% of Lodging and Boarding entitlement amount
as per Grade.

• Spouse Policy: To further enable co-habituating


ecosystem for our members, all employees (E1 to M3)
can refer their spouse for open positions, providing they
meet the eligibility criteria.

Training Programs for “specially-Abled Employees”


We endeavor to make Hero MotoCorp a workplace which is conducive for specially-abled employees. We aim to make
these employees self-confident through an array of events, forums and trainings specifically crafted for their benefit.
Training plans are being designed for the specially-abled with a special focus on personality development.

38
Women in Leadership batch 2 convocation
Women’s day at Hero MotoCorp marked the successful process that aims to enhance the self-awareness of
completion of Batch 2 of Women in Leadership (WIL) individuals. The program involved three working days of
Program. WIL program was launched in association with participants each month starting from the month of June
BML Munjal University with an aim to build the leadership 2018 onwards. The assessments were based on their
pipeline of women executives in the organization. The participation in activities, quizzes and evaluation by the
program has been specially designed for women in mid and faculty on the assignments given during each module.
junior level of management so that they can realize their
leadership potential and make significant contribution to We endeavor to make Hero MotoCorp a workplace which is
themselves and the organization. conducive for specially abled employees and employees
with special needs. We aim to make these employees self-
The Graduation ceremony of the 21 Young Women confident through an array of events, forums and trainings
Executives of Batch 2, was held at Vasant Kunj office, specifically crafted for their benefit. Training plans are
New Delhi. Each participant was also assigned a coach being designed for the specially abled with a special focus
during the program to strengthen the reflective learning on personality development.

Talent Recruitment
& Retention
Employment decisions including hiring,
performance appraisals, promotions
and discharge are based on employee’s
qualifications, skills and performance
without any bias. We also encourage
local employment in the workforce and
majority of our employees at the plants
are domestically recruited. We strive to
provide an environment conducive for
continuous innovation and improvement
by rewarding our employees for aligning
their efforts with the Company’s
business goal.

39
Hero Campus Challenge: Season 4
Our flagship Campus engagement programme is a national level competition
where the Country’s best minds lock horns to find innovative solutions to live
problems and generate fresh ideas for the future - thereby bringing students
closer to reality and making them industry ready! Season 4 of HCC hit a record
of 8700+ team registrations. These teams underwent multiple stages of
evaluation and 10 finalists were given the chance to pitch their ideas to the
leadership team and respected jury in a grand ceremony. In the B-School
category, Team Falconz from IIM-Raipur won HCC Season 4, and Team Wizards
from MDI-Gurugram stood as runners-up and in the engineering college
category, Team Avishkar from BIT-Durg won HCC Season 4 and Team Young
Innovators from NIT-Raipur were the runners-up.

Employee Engagement
HERO JOYFEST: Involving families of our employees
We at Hero believe in celebrating our achievements and a day packed with fun, games & cultural activities. The event
milestones with our loved ones. After all Joy – shared is saw the presence of famous sport personalities like R Ashwin,
doubled. This year’s Family Day was themed the ‘Joy Fest’ to Sardar Singh, Sharmila Nicollet and Punam Raut. The day ended
celebrate our achievements and success with our loved ones. with a splendid stage show performance by the popular rap
Hero Joy Fest 2019 was celebrated on 17th February 2019 in music composer Badshah accompanied by Astha Gill.
Delhi NCR where over 1500 of our Hero family members spent

40
Digital Interventions
Employee wellness and assistance programs on a mobile Employee Central
platform This intervention will help drive all Employee information at
These programs provide employees with confidential the click of a button on anytime and anywhere basis
counselling services to address mental health concerns
which often arise from stress and anxiety at workplace. Alumni Portal
Employees can also opt for nutrition services from the We have come up with a social platform for engaging with
platform to improve their diet and physical fitness. the Alumni of Hero MotoCorp Limited. This will ensure brand
ambassadorship within the talent community.
Digital HR ecosystem
We have come up applications for all talent management
process and the entire cycle of Hire to Retire. These
applications will enhance not only the employee experience,
but also empowers them and their Leaders to drive the people
processes at their end with minimal HR intervention.

Hero Sales Academy also launched


First in Automobile Sales Learning
domain -Mobile Game named:
OPDOC.
Key highlights
• Based upon latest concept of Learning by
Gamification
• Available in both iOS &amp; Android
platforms
• INNOVATIVE tool available for DSE to learn
the Hero Sales Process OPDOC SM
• Xtreme 200R has been used in the game
• Officially recognized as an effective Adult
Learning formula by researchers in the
learning domain

Employee benefits
Employee benefits play an important role in the lives of employees as well as their families. We at Hero
MotoCorp, provide comprehensive welfare benefits to our employees, including market competitive and fair
compensation, rewarding employees for individual and business achievements.

Hero MotoCorp’s Compensation philosophy revolves around the basic tenets of:
• Attract, Engage and Retain diverse talent pool through competitive rewards.
• Drive culture of high performance & meritocracy through differentiated rewards for high performance.
• Reward skills & competencies that create value for Hero MotoCorp.
• Provide long term opportunities for wealth creation for key talent across the organization.

41
Our Reward principles encompass

Performance Position Efficiency and Equity


Hero MotoCorp is committed Hero MotoCorp has initiated the Effectiveness At Hero MotoCorp, this
to differentiate sharply for Job Analysis and Evaluation principle indicates —
Hero MotoCorp is committed to
performance. Star performers (JAE), Protect to look at each fairness, justice, impartiality
maximize the effectiveness of
will receive much higher job and understand its worth and honesty; free from
its reward programs by bringing
increments than the average in the organizational context. self-interest, prejudice or
in best practices. The improved
performers. To create an For every job, a market price favouritism; conforming to
efficiency of our reward
exceptional organization we is tagged. While taking the established rules while
programs would be able to
are aiming at strengthening compensation decisions, Hero taking the compensation
bring in fairness and equity and
‘pay for performance’ culture MotoCorp would consider the decision for the employees.
improve employee satisfaction.
in the organization. worth of the job — internal as
well as external, very closely.

Hero MotoCorp has implemented the following policies and initiatives which promote
the welfare of all its employees:
• International SOS: International Travel Risk & Security • Introduced adoption leave of 90 days for children up
Assistance to 5 years of age

• Enhanced maternity leave policy from 144 days to 210 • Policy on employee mutual medical benefit scheme
days (for up to 2 children) followed by 6 months’ work
from home option for two days per week • Superannuation / National Pension Scheme

• Paternity leave of 6 days followed by 8 days of work • Post-Retirement Medical Insurance Fund Scheme
from home - also applicable for adoption of up to 2
children

Respect for Human Rights


We respect the rights of our community
members, the workers in our supply
chain, our employees and other rights
holders who may be affected by our
operations. We conduct our business in a
socially and environmentally responsible
manner, respecting the law and universal
human rights to benefit the communities
where we work. Hero MotoCorp takes
pride in its pro-activeness with respect to
human rights issues. In the last financial
year, there have been no complaints
received relating to child labour, forced
labour, involuntary labour. Further,
there were two complaints received and
resolved concerning sexual harassment
at Hero MotoCorp.

42
Skill Development
We believe that our people are the most important assets providing
sustained growth over the long-term. We consistently invest in the training
of our employees within the Company and beyond, thereby enhancing the
team’s capabilities. This allows us to make our manpower up to date with
the latest skills required to thrive in the industry today. We are also able
to nurture our talent pool and promote from within rather than hiring from
outside for managerial positions.

Apart from tiered development approach, we continuously work on


strengthening the capabilities of our employees with the help of training
programmes, on-the-job learning and special projects to bridge the
identified gaps & ensuring future ready talent. We have also initiated
formal ‘Coaching’ programs across various levels in the organization.

Our employees also participated in Hero i-Lead in partnership with Wharton


Business School, Emerging Leaders Program (ELP) with Emeritus Business
School Singapore, Future Leaders Program with IMT Ghaziabad and BML
University and other programs at ISB, IIMs, and other reputed engineering
and management institutes. Further, in our journey to create Leadership
pipeline and break the glass ceiling for women, we successfully completed
2nd batch of Women in Leadership (WIL) program. Trainings imparted to
permanent and contract employees are detailed out below.

Function Training man-days Total Training man-days Total


FY18-19 FY17-18
Men Women Men Women
Senior Management 504 0 504 360 0.25 360
Middle Management 4,814 169 4,984 1,491 6 1,497
Junior Management 7,785 883 8,668 4,493 326 4,819
GETs/PGETs 1,199 192 1,391 3,825 824 4,649
Staff Total 15,546 11,325
Workers (Direct Employee) 13,322 0 13,322 9,015 0 9,015
Apprentices 12,108 102 12,210 5,370 55 5,425
Contract Labour 3,890 3 3,893 2,944 5 2,949
Others 44,323 1,623 45,946 36,913 911 37,824
Worker Total 75,371 55,213
TOTAL (Days) 90,917 66,538

Footnote:
The spikes observed in Training man-days is due to the • As reported by Gurukul (Halol), the team as being the
following factors: newest, have planned trainings for each employee on a
monthly basis.
• During stoppages at Haridwar Plant; the team utilized that
time towards engaging workforce through trainings. Also, the data of training man-days from GLC (Global
Learning Center) doesn’t includes data from ZLC (Zonal
• Last year Halol plant didn’t report training, which is
Learning Centers) & ALC (Area Learning Centers)-which is
included this year for reporting purposes.
awaited, will increase the figures further.

43
Excellerator club program
Excellerator Club was created 3 years back as a platform
to recognize top performers of our organization and offer
differentiated and customized learning opportunities to
them. The club is reformed every year with the top performers
at every level being part of this elite group. The club focuses
on experiential rewards to help our performers sustain their
performance and outperform themselves. This year the
Club members were divided into 3 groups to provide them
opportunities most relevant to their experience level. For
instance, in February, the senior most members of the club
attended sessions on ‘Situational Leadership’ – a world
renowned program covering various styles of leadership
conversations and adaptive leadership, developed by Ken year for members of this club to groom the future generation
Blanchard. Several such sessions are planned throughout the of leaders at Hero MotoCorp.

Ignite program
Developing Young Leaders in the organization has been a the Management Trainees as well as their Managers which is
priority for our organization. To take this agenda forward about to culminate in April 2019. The cohort of Management
this year, a unique journey was launched for 30 of our Trainees is on a journey of self-discovery and personal
Management Trainees of 2017 and 2018 Batch to help them excellence through workshops and one-to-one coaching
develop into more positive and focused individuals. sessions with professional coaches from the Recalibrate
team. Their managers on the other hand are undergoing an
For this initiative, we partnered with the Recalibrate Team, Internal Coach Certification where they are being taught how
who have been our constant aide for our employees in Hero to shift from a directive management style to a coaching
Innovation Cell. This journey is a 3-month long journey for style to yield better results in their teams.

IGNOU-HMCL Technician Competency


Development Project
Hero MotoCorp and Indira Gandhi National Open University (IGNOU) have initiated
Technician Competency development project which will help upgrade the competency
level of Motorcycle technicians. This program provides both open and distance
learning courses organized across 40+ IGNOU and Hero MotoCorp learning centres. The
curriculum for the course includes training on service and maintenance procedures,
tools and equipment, transmission and electrical systems and entrepreneurship
development. Since the inception, more than 500 technicians have been trained till
now in five cycles of the program.

Further, it has been observed that most of the after-market technicians do not
undergo any formal training or professional course and have learnt the repairing work
on their own by working in open garages. This development program is of great value
to such technicians, as on successful completion of this course they get a formal
recognition cobranded certificate (IGNOU and Hero MotoCorp) which provides them
wider acceptability in industry.

44
CHATBOT - Sales learning updates
The Hero Sales Academy is pleased to Launch the
CHATBOT on Hero Sales academy E-Learning portal
www.heroopdocvideo.in.

Key highlights
• First in Automobile industry initiatives in the
Sales Learning domain
• AI based innovative tool which answers all
specification related queries of Hero products
• Available 24*7 on Hero Sales Academy
E-Learning portal
• Online tool for staff to seek any Hero product
related information & also during customer
interaction.

Case Study: Gurukul, Dharuhera


The Gurukul at Dharuhera was established in 2007, with • Welding
an objective to reward creativity, stimulate innovation and
• CNC operator/ Machining Technician
contribute to economic development while safeguarding
the public interest. Hero Gurukul signed an MOU with • Automotive service Technician (2&3 Wheeler)
Automotive Skill Development Council (ASDC) which
• Automotive Painting Technician
includes 20 various types of courses governed by the
National Skills development corporation - NSDC under • Vehicle Assembly Fitter/Technician
Ministry of Skills development Govt. of India. A pilot batch
• Auto Component Assembly Fitter
of 50 trainees underwent admission and got certified.
Subsequently mass roll outs have happened under the • Maintenance Technician Electrical
ASDC courses since 2016 onward.
Some of trainees also participated in the regional, state-
level and zonal level Skill competition organized by NSDC,
Currently, Hero is conducting following one-year courses
and won multiple accolades.
Level - 3 & Level - 4 in the operational areas of the
Organization: -

45
Safe workforce
A commitment to safety is an integral part of Hero MotoCorp. In addition,
we’re focused on creating a safe and ethical working environment in all our
manufacturing plants and to further strengthen our efforts, we have established
safety management systems to help prevent workplace accidents. Our goal is to
achieve zero accidents. We follow both a reactive and proactive approach.

Reactive Approach
Analysis is performed for reported incidents to identify the reasons the incident
and suggest mitigation/ avoidance based on the investigation.

Proactive Approach
Under the proactive approach, several initiatives of risk assessment, safety
tagging, safety audit, Safety Kaizens, safety trainings, awareness creation and
emergency preparedness are undertaken.

Safety continues to be of utmost priority at Hero MotoCorp. The substantial


increase in near misses and hazard reports also indicates the increased safety
awareness in the organization. During the reporting year, Hero MotoCorp clocked
more than 1,50,000 hours of safety training to its permanent and contractual
employees. The table below provides the safety related data for the last two
years.

S. No. Description FY18-19 FY17-18

1 Near Misses/ hazard reports 9,691 6,172


Health & Safety
2 Non - Reportable injuries 131 119
Trainings (permanent + contractual)

3 Reportable injuries 1 3
Some of the health and safety
trainings which are organized
at our facilities to engage An unfortunate fatality took place during lift maintenance activity at Halol where
the service engineer of the service provider inspecting a faulty sensor of the
employees and create positive
lift on the roof of lift cage, who received head injury with the extended portion
attitude towards health &
of the landing platform. While all safety permits and procedures were in place,
safety are: the unfortunate incident occurred on account of inappropriate position of
the service engineer on the lift cage. Based on the root cause analyses photo
• Ims Awareness sensors and barrier guards have been provided on all sides of the lift cage roof to
• General Safety - prevent any such re-occurrence.
Construction site
• Hira; Aspect training
• Behavioural Safety
• Legal compliance training
• Chemical handling
• Electrical safety
• Fire prevention and
protection
• General safety awareness

46
Safety Gym - A unique Concept
Hero MotoCorp has adopted a new technique of safety training for its employees in all its manufacturing plants. We
have developed Safety Gym which is a kind of practical experience of the hazards the workmen are exposed to at their
workplace. The new concept makes training more enjoyable and engaging. The safety Gym comprises of low cost,
comprehensive education “FEEL FEAR” devices developed by the employees themselves.

It allows for mistake-driven learning where employees can safely make mistakes and can easily relate to unsafe situation and
learn the importance to safety measures. This method of safety training has been very useful in training the new entrants who
have no idea about the working of the machine.

Health and Employees from our Dharuhera plant won the state
level Football, Volleyball and Shotput at the Industrial

Wellness Worker’s Sports Meet. Gurgaon Plant saw huge


participation in events like Hero MotoCorp Football
League, Hero Premier League, Femiquizzitive and
Brain-o-Baazi for Technicians. In Haridwar, Leadership
Wellness at the workplace has been Cricket Match, Hero Utsav and Idea Camp were much
appreciated events. CIT Jaipur saw enthusiastic
another important cornerstone of our participation in CIT Cricket League and had another
journey. Hero motocorp continues to successful season of Tech show.
strengthen its wellness initiatives
every year and aims at creating Distance running events also act as an excellent
wellness and fundraising platform for various noble
working environment which is healthy causes, giving a sense of purpose to employees
and motivating for its employees. beyond their day to day responsibilities. At Hero
We focus on both physical and MotoCorp, employees do their bit by participating
mental health of our employees and and organizational support is provided by sponsoring
employees in such events. Few such events are Airtel
encourage them to participate in Delhi Half Marathon with theme - ‘Run for a Cause’,
various competitions and sports to Pinkathon - India’s Biggest Women’s Run with the
keep them rejuvenated and energetic. objective of spreading awareness about women’s health
related issues, breast cancer and Hero Impact Run
where employees and their families run to support the
families of our brave CRPF and Army personnel.

47
Sustainability
Pillar :
Inclusive Growth

At Hero MotoCorp, we realize that


the group as a large business entity
has a critical role to play in the
achievement of the sustainable
development goals (sdgs) and
this can only be achieved through
sustainable business practices as
well as focused investments.
Our CSR framework is planned to make maximum
measurable impact though multiple social
interventions. Our broad and transparent
reporting mechanism, as well as two – way
communication (which also includes third party
assessments) with all stakeholders – investors,
employees, customer, vendors, suppliers,
governments as well as the communities around
our areas of operation – helps us in assessing
the wider impact of our business operations and
strategizing each action to ensure that they help
us in doing our bit towards meeting most SDGs
targets set for 2030.

Our CSR Interventions are aimed at enhancing


social and environmental capital along with
facilitating the generation of adequate returns
on our investment and strengthening our social
license to operate. Our continuous commitment
towards CSR is evident from our last four years
(2015-2019) CSR spent, which is much more
than the specified amount of 2% of Net Profit.
Through our ‘We Care’ initiative, which is our CSR
Umbrella, we are running following five flagship
programmes successfully.

48
VISION
To have a Greener, Safer and Equitable world1

GREENER safer
BE A ROAD
HERO

PROJECT COMPONENTS
PROJECT COMPONENTS
Road Safety
Environment
Road Safety Training Parks &
Large-scale planting
Road Safety Clubs
LED & Solar lights
Mass awareness campaigns
Water conservation

EQUITABLE

PROJECT PROJECT PROJECT PROJECT


COMPONENTS COMPONENTS COMPONENTS COMPONENTS
Education Community Sports Specially-abled
School infra Mobile medical vans Support to sports Skills for
Remedial classes Eye-checkup van academies Support employability Direct
Digital education AIIMS vision centre to Paralympics aids distribution
Support to regional Surgeries
players

We invested a total of INR 101.95 crore in the reporting period on various CSR interventions. The break-up of our CSR spending and
the number of beneficiaries of our key programs are given below:

Initiative Beneficiaries in FY19 Total beneficiaries till FY19

Ride safe India 1,97,231 5,03,305

Shiksha 1,10,208 3,67,103

Happy Earth 7,59,910 tree plantations 14,60,680 tree plantations

Arogya & Community Development 118,880 329,726

Be Safe Be Aware 75.6 Million 150.3 Million views

1
For more details, please refer to Annual CSR Report

49
ADDRESSING ENVIRONMENTAL
DEGRADATION
Towards a greener world
Hero MotoCorp believes that the greatest threats the world is facing today are from
environmental degradation and climate change. We have taken the responsibility on our
shoulder to combat these threats through our happy earth initiative.

Afforestation/large-tree plantation Another focus of the project is inclusive development. The


Under the Hero Green drive the Company planted over 759,910 project is primarily owned by the local community wherein a few
trees at Indore, Chennai, Ahmedabad, Sonipat and Delhi NCR women and youth from each village are trained to make and
region. We surpassed the 14 lakh saplings figure where our repair LED lamps.
focus on ensuring survival of saplings continued and we were
successful in maintaining around 90% survival rate this year Solar Street Lights to save electricity and make villages safer
as well. Local citizens, school students, professionals, and our We have increased the penetration of solar street lights and
employees volunteered for the plantation drive. The project has installed 7,332 in 119 villages, taking the total to 13,597 street
also helped in sustaining some species of plants that were on lights in 250 villages. More than 8 lakh people are benefitting
the verge of extinction. from clean and green energy to light up some of the remotest
villages in India – some of which have received streetlight for the
first time. The women folk and children now feel safer in these
villages. This Initiative is also saving about 8 lakh electricity units
every year that would have been needed to power the street
lights from electrical energy and Infrastructure worth hundreds
of millions.

Water conservation
Cleaning and rejuvenating ponds, check dams and building rain
water harvesting facilities in schools is our bit towards conserving
water. In FY19, we managed to channelize over 75 lakhs litres of
water in villages around our operations in Rajasthan.

Sanitation at rural schools


Project Swachh Vidyalaya Abhiyan: Continuing our efforts to
provide better sanitation in government schools, In FY19, we
have built 308 toilets along with hand washing facilities in 41
Government schools taking the total to 1,211 in 146 government
schools. We also ensured that each toilet is well maintained
and utilized. Soft interventions focused at awareness of hand
washing and hygiene were also implemented. The outcomes of
the Initiative suggest that attendance rates, especially that of
girls, have increased across all schools and there have been
minimal sick leaves indicating bettering health of students due
Eco-friendly and alternative energy to better hygiene.
Project Aarush: Aimed at encouraging alternative and eco-friendly
energy resources, the project has two main components. Initiative Our action & Our action &
Impact in FY19 Impact till FY19
Replace traditional lamps with LEDs and skill the community to Tree plantation 7,59,910 14,60,680
make and repair them
Water storage capacity 75.5 Lakh litre 76 Lakh litre
In continuation of to our efforts to save energy and provide LED
enhancement
lamps in the remote villages of Uttarakhand, In FY19 we replaced
57,538 conventional lamps with 7W LEDs in 13,052 households Solar street light 7,332 in 13,597 in
in 304 villages of Kedar Ghati – home to survivors of one of the installation 119 villages 250 villages
worst floods that the country had witnessed. Overall, 25,779 LED bulbs installation 57,538 in 1,08,308 in
households using 108,308 LED lights will save over 30 million 304 villages 332 villages
units of electricity per year.
Toilet Built 308 in 41 1,211 in 146
Government government
schools schools

50
THE ROAD TO SAFETY
Towards a safer world
Every year more than 1,48,000 traffic collision-related deaths occur in India. The primary sources
of such events are lack of awareness or carelessness of the individuals driving the vehicle. To
address this issue, we have launched the Ride Safe India initiative. Through an initial impact
assessment study, we have finalized our target audience for this initiative as riders, critically
impacted, and the most likely to have an accident such as old people, under 15 and pedestrians.
Under the gamut of ride safe India initiative, we establish and run traffic training parks, organize
road safety awareness campaigns, and sensitize school children on road safety.

Safe riding trainings The campaign was launched with focused messaging using
Driver error is one of the major causes of road accidents and it print, electronic and social media to reach out to as many
can only be prevented through right riding and driving training. people possible. Within a week of its launch, the campaign
We manage eight road safety parks across the country that managed to create a community of over 27,600 people who
undertake two-wheeler riding training for school and college pledged to ‘Be a Road Hero Campaign’. Minister for Road
students as well as the general public. More than 5 lakh people Transport & Highways Mr. Nitin Gadkari also shared a video
benefitted through these parks till date including 1,97,231 message on the campaign’s website.
people in FY19.
Initiative Our action & Our action &
Road safety communities Impact in FY19 Impact till FY19
In the last few years, Team Ride Safe India has established Safe riding trainings 1,97,231 5,03,305
Road Safety Clubs in over 1,150 schools, creating a platform for beneficiaries beneficiaries
constant engagement with children to sensitize them about
road safety. The idea being to create a band of influencers who Road Safety Training 1 8
inspire their peers to be conscious and responsible citizens. Park establishment
Pledges during ‘Be a 27,600 27,600
Awareness and behavioural change Road Hero’ campaign
Project ‘Be a Road Hero’ is aimed at encouraging people to take TV, Print & Social media 75.6 Million 150.3 Million
pride in being safe drivers and good Samaritans as well as to views of Road safety and views views
motivate and encourage others. The fundamental objective is awareness campaign
to bring about a behavioural change that would ultimately make
people realize that road safety is their collective responsibility
and together we could bring down the mortality and accident
rates in our country.

51
EMPOWERING GIRL CHILD
Towards an equitable world
Hero MotoCorp believes girls are the real assets of a nation. We realize that adolescence is a
critical time that can determine the entire trajectory of a girl’s life. Therefore, to recognize and
celebrate the enormous potential that each young girl has, we have been promoting the Hamari
Pari initiative. This program’s fundamental aim is to enable girls to tackle the challenges
that prevent them from realizing their full potential. Hamari Pari thus fosters education and
opportunity and, in a broader sense, ensures a fair chance for each beneficiary girl.

Ek Pahal
‘Ek Pahal’ aims to make women self-reliant and empowered by
Initiative Our action& Our action&
teaching them two-wheeler riding’s crucial skills. This initiative Impact in FY19 Impact till FY19
was undertaken by Hero MotoCorp Ltd. in partnership with the
Haryana Government and the United Nations Development Skill development of 18,038 19,119
girls, women and youth beneficiaries beneficiaries
and their placement

Women Two- 2 12
Wheeler Ride Center
establishment

Program (UNDP) to teach two-wheeler riding to girls studying at


the Haryana-based Women Industrial Training Institutes (ITIs).
More than 2700 girls had enrolled under the Ek Pahal initiative for
two-wheeler riding training during FY 19. Currently, 12 Ek Pahal
centers are operational in Haryana.

Employability and livelihoods


Our livelihood training focused programme for girls and women
from inferior social-economic backgrounds witnessed 18,038
female who completed their training in FY19. Most of females
are gainfully employed with reputed companies while others are
self–employed. Self-employed girls either work from their homes
and earn handsome earnings, or work as freelancers with a few
local salons or tailoring shops. The toppers were acknowledged
at a formal graduation ceremony where they shared their journey
of hope and success stories.

52
EMPOWERMENT THROUGH
EDUCATION
Towards an equitable world
Since inception Hero MotoCorp has been playing its role in supporting education, knowledge
sharing, and skill development. With our educate to empower program, we continually strive to
tackle deep-seated issues within India’s education system holistically.

Project Shiksha
The initiative is focused on creating an enabling, encouraging Dharuhera, Gurgaon, Haridwar, Neemrana, Jaipur and Halol in
and motivating education environment at schools. The idea is FY19. While some schools were given necessary renovation and
to create a permanent infrastructure as well as an ecosystem painting jobs, newly built toilet blocks and sports facilities were
to help improve the quality of education. The project has received by some schools
benefitted about 1.1 lakh students at more than 144 schools in

Tab Labs and Smart classes


Technology has dramatically reshaped the way we work today for young students. For ten schools we have built smart
and Hero MotoCorp has been quick to adopt this change in classrooms with LED screens while for another ten we are
every front. Under our, Educate to Empower initiative we are providing tablets loaded with focused content. Digitization
not only building necessary school infrastructure but also has not only helped students but has also helped teachers by
introducing digital intervention for education. We have provided simplifying difficult lessons. We believe proper career guidance
Tab lab and Smart Class facility to 20 schools of Gurugram at the right time is crucial for a personally determined and
and Rewari district of Haryana. With the introduction of digital evolving preferred future; hence we provide career counselling
technologies, learning has become fun and entertaining to students of higher classes.

Lab on bikes
After the successful execution and acceptance of mobile of impact and reach schools in the remote area where it was
science lab project, we have launched a similar initiative on difficult for the van to reach. During FY’19, eight motorcycle
motorcycles. Through this intervention, we have provided labs were on the roads and had covered remote regions of
science lessons on a wide range of topics in physics, Rajasthan, Haryana, and Delhi. In comparison to the mobile
chemistry, and biology to government schools. The primary science lab, motorcycles science labs are efficient, cost-
purpose for launching this initiative was to enhance our range effective and readily available.

53
marginalized section of community on basis of qualification
marks, screening test and interview, these sessions are
being delivered by professional in education field and with
an added experienced, which is helping students in getting
higher grades in 10th board. They would also be motivated
to undertake professional courses in future as the whole
program is based in developing students who are extremely
talented but are devoid of any guidance, which enables them
to crack entrance examination for leading universities and
colleges across the country.

Initiative Our action & Our action &


Impact in FY19 Impact till FY19
Hero Talent Search
It is a unique initiative where talented minds searched Educational 144 school 208 school
through various test in selected locations were provided Infrastructure supported, supported,
necessary coaching support in class 10th. Students in such and ecosystem 1,10,208 3,67,103
remedial classes also develop non-cognitive skills and are development in beneficiaries beneficiaries
in a safe learning environment. The assumption is that these Schools
outputs are necessary and sufficient for students to be
ready for board examination, which is the intended impact. Hero Talent 200 Students 200 Students
Hero Talent Search program provided coaching support to Search program supported supported
200+ students studying in government schools, coming from

54
BUILDING HOPE AND SERVING HUMANITY
Towards an equitable world

Hero MotoCorp is committed to creating a meaningful, lasting difference in the lives of the people,
communities and all other stakeholders. Therefore, we support communities in the vicinity of
our operations in a holistic manner from taking care of basic health care facilities to providing
basic infrastructure needs such as access to power and water. Through our csr partners, we
also engage in programs aimed at making rural women self-reliant, improving their wages, and
fulfilling their dreams of becoming entrepreneurs.

Khelo Hero
Primary objectives of the initiative include increased access
to sports facilities and training, promotion of sports culture
among youth and support and development for talented
sportspersons. So far, we have developed sports infrastructure
in more than 50 schools, supported 1974 athletes including
Paralympic athletes, extended support to amateur boxers
training under legendry Mary Kom as well as supported state-
level sports promotion initiatives such as Khel Mahakumbh in
Uttarakhand. In FY19 alone we have supported around 1700
athletes and other sports personal.

Under Khelo Hero initiative Hero MotoCorp supported all


participating Indian players of Asian Para Games 2018.
Athletes with cerebral palsy, bilateral polio or loss of both legs
below the knee and other such disabilities were the participant
of Asian Para Games 2018. Through our ‘Khelo Hero’ program,
we were successful in enhancing participation, and the
performance of India’s players at international level.

Special focus for specially-abled


One motivating story is all that is needed to create a ripple Initiative Our action& Our action&
effect. So, it is the success story of one specially-abled person Impact in FY19 Impact till FY19
that ignites hope in thousands of others who might have lost
confidence or have low self-esteem. Under Project Enable, Supporting sports 1,729 1,974
we aim to create an inclusive and motivating environment for through sports facilities beneficiaries beneficiaries
our specially-abled compatriots. To begin with, we provided and trainings
prosthetic limbs to the needy ones along with job-oriented
livelihood training to many. All this goes to show that a little Aid to Specially abled 2,399 4,296
help can bring about life-affirming changes for those who need beneficiaries beneficiaries
nothing more than a leap of faith. In FY19, more than 2,300
Community development 1,18,880 3,29,726
poor disabled individuals benefitted through surgery, artificial
including free Medical beneficiaries beneficiaries
limbs and crutches.
treatment
Healthcare
Four Mobile Medical Vans in Delhi, Dharuhera in Haryana, center is accessible to over several villages in the vicinity.
Neemrana in Rajasthan and Halol in Gujarat and one Mobile In far off areas, we continue to conduct eye care camps and
Eye Check-up Van in Delhi are benefitting more than one lakh cataract surgeries. During the FY 19, more than 2600 people
people by providing medical assistance, basic treatment as benefitted from the same. Additionally, preventive health
well as medication. Another initiative focused at eye care is check-up camps were organized for over 5,000 students in 20
a Satellite Vision center which was set up with support from government schools. Adolescence education for girls and yoga
AIIMS, Delhi at village Malpura near our Dharuhera unit. The for a health body and mind are also a part of this initiative.

55
Social return on investment (SROI)
The Company has carried out impact analysis of all the • Hero MotoCorp ranks No. 1 for being transparent in CSR
projects and Social Return on Investment (SROI) for all key reporting with all the information – all project details –
interventions. The social outcomes included measuring available in the public domain
direct economic and social value to beneficiary; value
addition to state and central government’s objectives • Hero MotoCorp is amongst top 10 companies that do
and programmes/schemes; increased productivity annual SROI assessments of all their CSR programmes.
of beneficiaries; contribution towards sustainable
development goals (SDGs); increased trust and loyalty • Hero MotoCorp is probably the only company to have
of employees; perception of Hero as a socially and achieved primary objectives/hypothetical outcomes
environmentally conscious brand among others. of all large CSR programmes within three years of their
implementation.
As per the 3rd party evaluators, our SROI was among the
highest in Industry with more than 200 % in all cases. • Hero MotoCorp is amongst the top 10 most companies
Outcome of the evaluation are as following. to have organized and structured

56
Hero MotoCorp’s Ambitious
Targets for Sustainability - HATS 2020
Hero MotoCorp has carefully crafted its sustainability strategy and committed to Hero MotoCorp’s
Ambitious Targets (HATS) for sustainability in our first sustainability report for FY18. Our
sustainability strategy rests on five pillars under which we have identified focus areas and
measurable KPIs to track progress.

We continuously identify the indicators where we are lagging and take appropriate remedial
actions wherever necessary. The figure below illustrates our HATS targets. We are on track and
progressing towards our targets.

The baseline for environmental initiatives is FY11, unless specified otherwise. There are multiple indicators and targets which
have been adopted by Hero MotoCorp and we envisage to keep strengthening our systems to track these indicators so that we can
increase the public reporting on our HATS targets.

57
GRI Index
GRI Standards: Core option
GRI Standard Title Reference Section Pg. No.
Organisational Profile & Strategy
102-1 Name of the organization About the report 6
102-2 Activities, brands, products, and services Our products 10
(More information at: https://www.heromotocorp.com/en-in/
the-bike/two-wheeler-motorcycles.html)
102-3 Location of headquarters Our operations and global footprint 11
102-4 Location of operations Our operations and global footprint 11
102-5 Ownership and legal form Financial Overview 18
102-6 Markets served Company overview 07
102-7 Scale of the organization Triple bottom-line highlights 09
102-8 Information on employees and other workers Sustainability pillar IV: People 35
102-9 Supply chain Our operations and global footprint, Sustainability pillar II: 28
Responsible value chain
102-10 Significant changes to the organization and its supply Our operations and global footprint, Sustainability pillar II: 28
chain Responsible value chain
102-11 Precautionary Principle or approach Sustainability pillar I: Eco efficiency 22
102-12 External initiatives Pillar wise mapping of SDGs throughout the report
102-13 Membership of associations Membership & public advocacy 12
102-14 Statement from senior decision-maker Chairman message 02
Ethics and integrity
102-16 Values, principles, standards, and norms of behaviour Annual report 2018-19
Governance
102-18 Governance structure Our governance system 14
Stakeholder engagement
102-40 List of stakeholder groups Stakeholder engagement & materiality analysis 20
102-41 Collective bargaining agreements Our workforce 36
102-42 Identifying and selecting stakeholders Stakeholder engagement & materiality analysis 20
102-43 Approach to stakeholder engagement Stakeholder engagement & materiality analysis 20
102-44 Key topics and concerns raised Stakeholder engagement & materiality analysis 20
Reporting Practice
102-45 Entities included in the consolidated financial About the report 06
statements
102-46 Defining report content and topic boundaries About the report 06
102-47 List of material topics Materiality Assessment 20
102-49 Changes in reporting About the report 06
102-50 Reporting period About the report 06
102-51 Date of most recent report About the report 06
102-52 Reporting cycle About the report 06
102-53 Contact point for questions regarding the report About the report 06
102-54 Claims of reporting in accordance with the GRI About the report 06
Standards
102-55 GRI content index GRI content index 58
102-56 External assurance Assurance statement 60
GRI 200 Financial Topics
103 Management Approach Financial overview 18
GRI 201 Economic Performance
201-1 Direct economic value generated and distributed Financial overview 18
204-1 Proportion of spending on local supplier Financial overview 18
GRI 300 Environmental Topics
103 Management Approach Sustainability Pillar I: Eco – Efficiency 22
GRI 301 Materials
301-1 Materials used by weight or volume Material 25
301-2 Recycled input materials used Material 25

58
GRI Standards: Core option
GRI Standard Title Reference Section Pg. No.
GRI 302 Energy
302-1 Energy consumption within the organization Energy & GHG 23
GRI 303 Water
303-1 Water withdrawal by source Water 24
303-3 Water recycled and reused Water 24
GRI 305 Emissions
305-1 Energy direct (Scope 1) GHG emissions Energy & GHG 23
305-2 Energy indirect (Scope 2) GHG emissions Energy & GHG 23
305-4 GHG emissions intensity Triple Bottom Line Highlights 09
305-6 Emissions of ozone-depleting substances (ODS) Air emissions 27
305-7 Nitrogen oxides (NOx), Sulphur oxides (SOx), and other Air emissions 27
significant air emissions
GRI 306 Effluents and Waste
306-1 Water discharge by quality and destination Water 24
306-2 Waste by type and disposal method Waste 25
GRI 307 Environmental Compliance
307-1 Non-compliance with environmental laws and Compliance 16
regulations
GRI 401 Employment
401-1 New employee hires and employee turnover Our worforce 36
401-2 Additional benefits provided to full-time employees Talent recruitment & Retention 39
401-3 Parental leave Employee benefits 41
GRI 402 Labour/Management Relations
402-1 Minimum notice periods regarding operational 21 days (as per Industrial Disputes Act, 1947)
changes
GRI 403 Occupational Health and Safety
403-1 Workers representation in formal joint management– Safe workforce 46
worker health and safety committees
403-2 Types of injury and rates of injury, occupational Safe workforce 46
diseases, lost days, and absenteeism, and number of
work-related fatalities
GRI 404 Training and Education
404-1 Average hours of training per year per employee Skill development 43
404-2 Programs for upgrading employee skills and transition Skill development 43
assistance programs
GRI 405 Diversity and Equal Opportunity
405-2 Ratio of basic salary and remuneration of women to Our workforce 36
men
GRI 406 Non-discrimination
406-1 Incidents of discrimination and corrective actions Talent recruitment and retention 39
taken
GRI 416 Customer Health & Safety
416-1 Assessment of the health and safety impacts of Customer satisfaction 30
product and service categories
416-2 Incidents of non-compliance concerning the health Compliance 16
and safety impacts of products and services
GRI 417 Marketing & Labelling
417-1 Requirements for product and service information and Compliance 16
labelling
417-3 Incidents of non-compliance concerning marketing Compliance 16
communications
GRI 419 Socioeconomic Compliance
419-1 Non-compliance with laws and regulations in the Compliance 16
social and economic area

59
Assurance Statement

60
61
Glossary
ADP Abiotic Depletion Potential
ALC Area Learning Centres
ASDC Automotive Skill Development Council
EPR Extended Producer Responsibility
ERM Enterprise Risk Management
FLC Foldable Large Container
GJ Energy in Giga Joule
GPC Global Parts Centre
GRI Global Reporting Initiative
GHG Green House Gas
GVDP Green Vendor Development Program
HATS Hero MotoCorp’s Ambitious Targets
HTP Human Toxicity Potential
IC Internal combustion engine
IGBC Indian Green Building Council
ISAE International Standards on Assurance Engagement
ISO International Organization for Standardization
kWh Kilo Watt Hours
KL Kilo Litre (1 KL = 1000 Ltr)
Kg Kilogram
LCA Life Cycle Assessment
LED Light Emitting Diode
MLP Multi-layered Plastic
MW Mega Watts
NOx Nitrogen Oxides
ODP Ozone Depletion Potential
PRO Producer Responsibility Organization
PM Particulate Matter
RDF Refuse Derived Fuel
RTO Regenerative Thermal Oxidizers
SOx Sulphur Oxides
SCOPE Supplier Certification of Parts
SDGs Sustainable Development Goals
SIAM Society of Indian Automobiles
tCO2e Tons of Carbon dioxide equivalent
VOC Volatile Organic Compounds
ZLC Zonal Learning Centres

62
Notes

63
Notes
Hero MotoCorp Ltd.
(CIN:L35911DL1984PLC017354)

34, Community Centre,


Basant Lok, Vasant Vihar,
New Delhi - 110 057, India
Tel.: 011-4604 4100, 2614 2451
Fax: 011-2614 3321, 2614 3198
www.heromotocorp.com

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