Backend Wp-Content Uploads 2024 05 AL Sustainability-Report 2022-23

Compliance to
Competitiveness
Sustainability Report | 2022-23
Sustainability Report 2022-23 1

Contents
About this Report 4 Emission Management 80
Message from the Chairman 8 Biodiversity: Enhancing the

greenery towards carbon neutrality 84
Message from the Managing Director
and Chief Executive Officer 12 Waste Management 84
essage from Head Corporate Strategy

M Resource Management 89
and ESG 16
Water Management 91
Key Highlights 20
Social Leadership 100
Our Sustainable Strategy & Aspirations 24
Fostering an Inclusive Workplace 102
Ashok Leyland: Koi Manzil Door Nahin 30
Empowering our communities 118
Our Corporate Profile 32
Strengthening Supplier Relationship 130
Product Portfolio & Business Verticals:
Product Stewardship 138
Setting up new milestones 35
Customer Engagement 152
Economic Performance 38
Annexure 156
Awards and Accolades 46
Assurance Statement 158
Corporate Governance 50
Glossary of Abbreviations 162
Ethical Business Practices 52
GRI Content Index 168
Holistic Stakeholder Engagement
and Materiality Assessment 58 UNGC Principles Mapping 174
Environmental Stewardship: Preserving Nature74 BRSR Core Mapping 175
Energy Management 77
2 Compliance to Competitiveness Sustainability Report 2022-23 3

We are pleased to
About this present our seventh
Sustainability Report
Report this year, which

primarily emphasises
on our non-financial
performance.

The Sustainability Report (Report) of FY 2022-23 We have updated our material issues in FY
outlines the Environment, Social, and Governance 2020-21, which have been incorporated into
(ESG) performance of Ashok Leyland Limited long-term planning and strategy development
(“AL”, “Ashok Leyland”, “the Company”). The for the Company’s growth. The material topics
Report aims to demonstrate our commitment identified have been retained in the present report. Scope and Boundary
to ESG frameworks and parameters. We strive to Taking into consideration the operations of the
proactively anticipate emerging ESG risks and business, we have identified impacts that are
This Report provides comprehensive • C
orporate Office (Guindy) and
opportunities in the market too. Our primary focus positive, negative, actual, and potential. Further information on our operations in Technical Centre (Vellivoyal Chavadi)
is to highlight our efforts in safeguarding the well- details on this are highlighted in our Stakeholder India. Our operational locations are in Chennai
being of our employees, communities, and the Engagement and Materiality Approach Chapter. categorised into two main areas:
The environmental performance is
environment while ensuring a profitable business Foundry locations and Automotive
mapped for Foundry and Automotive
model and fostering inclusive growth. Independent Assurance plants.
plants separately (Including corporate
We are pleased to present our seventh The Report has been subjected to assurance by • Automotive Plants office and technical centre)
Sustainability Report this year, which primarily DNV Business Assurance India Private Limited • Hosur 1, Hosur 2, Cab Panel
emphasises our non-financial performance during We anticipate in expanding the scope
(referred to as ‘DNV’) in accordance with the and Press Shop (CPPS) in Hosur,
the reporting period from April 1, 2022, to March 31, of our reporting to provide a holistic
VeriSustain Protocol is based on the principles Tamil Nadu
2023. of various assurance standards including the and comprehensive overview of our
• Ennore in Tamil Nadu
International Standard on Assurance Engagements operations including our joint ventures
• Alwar in Rajasthan
Reporting Principles 3000 (ISAE 3000) Revised (Assurance Engagements and subsidiaries.
• Bhandara in Maharashtra
other than Audits or Reviews of Historical Financial • Pantnagar in Uttarakhand
The Report has been developed in reference to Information) and the GRI Principles for Defining
the Global Reporting Initiative (GRI) Universal • Foundry at Ennore, Sriperumbudur in
Report Content and Quality. The Assurance
Standards 2021 and National Guidelines on Tamil Nadu
Statement is part of this Report. However, there is
Responsible Business Conduct (NGRBC). no conflict of interest between the Company and
Furthermore, the disclosures align with the nine DNV.
principles of National Voluntary Guidelines on
Social, Environmental, and Economic (NVG-SEE)
Responsibilities of Businesses, as issued by the Forward-Looking Statement
Ministry of Corporate Affairs, Government of India, The forward-looking statements in this Report
and the United Nations Sustainable Development outline our strategic plans and expectations, based
Goals (UN-SDGs). The Report incorporates on reasonable assumptions and past experiences.
information on Business Responsibility and These projections consider industry developments,
Sustainability Report (BRSR) disclosures, as changes in market conditions across different
prescribed by the Securities and Exchange Board geographical regions, government regulations,
of India. The FY 2022-23 Report does not consist of laws, and other factors that may have an impact. It
any restatements of information about previous is important to note that these statements should
financial years. not be construed as a guarantee of our future
performance as external factors beyond our control
Approach to Materiality may cause significant changes in the underlying
assumptions.
This Report has been prepared with information
that is material to our stakeholders and our value- If you have any inquiries regarding this Report,
creation capabilities. Material ESG issues have been please contact Alok Verma, Head of Corporate
formulated through a robust process of multi- Strategy & ESG, at [email protected]
channel engagement with internal and external
stakeholders followed by prioritisation of topics of
importance.

As we accomplish our
75th year of operations,
I am delighted to
introduce our new
brand promise ‘Koi
Manzil Door Nahin’.
This demonstrates
that ‘No dream is too
far to achieve our ESG
aspirations’.
Message from
the Chairman

Dear Readers,
It gives me great pleasure to present our Seventh Alternate fuels, Hydrogen and Electric options. As
Annual Sustainability Report for the financial year part of the Green Mobility Push, we proudly present
2022-23. We have developed an ESG roadmap with India’s first certified LNG-fueled truck known as the
aspirational goals and targets for the next few AVTR UF3522. This vehicle is completely validated
years. This enables us to achieve higher levels of and optimized to be used across the Indian
operational excellence and stay aligned with our terrains.
vision to be a Top 10 global CV player delivering
outstanding stakeholder value. Our commitments and investments reflect our
urgency in achieving our new organisation purpose
I am happy to inform you that Ashok Leyland has of ‘Transforming Lives and Businesses through
achieved excellent results during the financial Leadership in Mobility’ and driving a new culture Our Purpose:
year. Despite the uncertain industry outlook that throughout the organisation.
This Report highlights loomed at the beginning of the year, we achieved
Transforming
Our ambition for a better, more inclusive future
the journey we have exceptional operational performance in FY 2022-23.
We reported an all-time high revenue of ₹36,144 extends beyond our walls. Our CSR initiatives
Lives and
focus on areas of education, livelihood, community
accomplished so far. Crores. We sold over 180,000 vehicles in the
domestic market and more than 11,000 vehicles in improvement, and climate change. Our Road
Businesses
While preparing this the international market. This resulted in achieving
a significant milestone showcasing strong demand
to School programme (RTS) and The Road to
Livelihood (RTL) is making strides and the coverage through
Report, we have also and customer trust. has increased from 96,750 to over 150,000 children
from nearly 1400 schools across five Indian states. Leadership in
considered a futuristic In our journey to improve our environmental
In celebrating our 75 years of operation, I would Mobility
performance, we undertook various initiatives
approach that is during the financial year. Some key areas include like to express my appreciation to the team for
staying committed to the continuous growth
Renewable energy, Waste, Water and Carbon
resilient, responsible, Sequestration through the Miyawaki method for of the Company. Their never-ending efforts and
dedication have enabled us to create a positive
and reliable. tree plantation. In recognition of our commitment
to environmental, health, and safety standards, impact on society and the environment.
our plants have been honored with thirteen
I am looking forward to accelerating the progress
CII-Environment, Health, and Safety Excellence
of our ESG initiatives to realize our stated ambition
Awards.
to be Net Zero by 2048.
Demonstrating our commitment towards
Yours Sincerely,
sustainable mobility, we showcased our futuristic
Dheeraj G Hinduja
vehicle range in Auto Expo 2023 comprising of
Chairman

Our aspirations to be
Top 10 CV player in the
Automobile Industry.
Ashok Leyland is
committed to attaining
a top global position in
the commercial vehicle
sector while prioritising
sustainability.
Message from
the Managing
Director and Chief
Executive Officer
Dear Stakeholders, more emphasis on Environmental, Social and buses and other clean vehicles for markets in
Governance (ESG) principles in all aspects of northern and eastern India.
Ashok Leyland is committed to attaining top 10 business. Our ESG vision is ‘To create and lead
global position in the commercial vehicle sector. sustainable practices, across environmental, At Ashok Leyland, promoting diversity and
This would entail an acute focus on expanding our social and governance initiatives, delivering inclusion remains a priority, providing equal
market presence, widening our product portfolio, outstanding stakeholder value’. This vision has opportunities, irrespective of gender and ethnicity.
be closer and more responsive to the customer, been further operationalized into 10 focus areas Our commitment to women’s empowerment
and continue an acute focus on profitability. deep diving individually in E, S, and G. aligns with our brand philosophy of ‘Koi Manzil
However, our commitment must transcend just Door Nahin’, creating better gender balance and
the financial benchmarks. Guided by our aspirations, we are poised to lead by a more inclusive ecosystem through initiatives
example through enhanced energy productivity, that uplift women and their communities. The
Last year, our senior leadership team embarked amplified incorporation of renewable energy, all-women production line at our Hosur plant
on a journey to redefine our purpose, values, reduction of Scope 1 and Scope 2 Greenhouse gas stands as a testament to our diversity efforts. A
and culture. This introspective process led to the emissions, elevation of water productivity, improved new women-centric line, recently inaugurated
articulation of our purpose: ‘Transforming Lives & resource efficiency, preservation of biodiversity, at our Pantnagar plant is another feather in our
Businesses through Leadership in Mobility’. implementation of ergonomic practices, and cap. Our ‘Parivartan’ campaign, encourages
steadfast adherence to global safety standards. women to enter the male dominated field of
Alongside this, we identified five values that will This commitment extends throughout our entire heavy vehicle driving. Our commitment to
serve as our foundational pillars: Trust, Agility, value chain, encompassing suppliers, dealers, and workforce development, safety and well-being
Innovation, Customer Centricity, and Partnership. customers, with the ultimate goal of long-term remains unwavering. We create a secure and
When these values are ingrained as part of our
Our Vision: daily behaviors, they form the bedrock of our
reduction in our overall Scope 3 emissions. diverse environment aligning with human rights
standards.
culture, aptly referred to as ‘The Ashok Leyland We’ve taken several measures for water
To create and lead Way’. conservation, including rainwater harvesting We are unwavering in our social commitment
and preserving subway yield water, to reduce to generate positive impact through initiatives
sustainable practices, We would need to think, behave and act like a
Global 10 Commercial Vehicles company before
reliance on external water sources and replenish benefiting the community. Our Road to School
groundwater. Our commitment to sustainable and Road to Livelihood missions, are based on the
across environmental, we become one, and our Purpose and Values operations is evident in our energy conservation philosophy of ‘Education as a Social Leveler’, aimed
would lead our way towards that vision. efforts, use of renewable resources, and green at holistic and inclusive education of our children.
social and governance energy. Notably over 80 percent of beneficiaries belong
This journey would also need a razor-sharp focus
initiatives, delivering on sustainability. It’s true that sustainability is Our foray into clean mobility is fueled by our
to underserved and marginalized segments. The
recognition with the prestigious Best CSR Initiative
embedded throughout Ashok Leyland’s operations,
outstanding from conserving resources to increasing renewable
proficient Product Development teams (including
the one at Switch Mobility, our subsidiary)
award from the Government of Tamil Nadu
underscores our dedication to creating meaningful
energy capacity, from fostering diversity to
stakeholder value’. impacting our communities, from leading
conceptualizing and displaying 12 new, innovative,
green truck and bus models at the January 2023
change in the communities we serve.
technology development in alternative fuels to Auto Expo. We have already put more than 750 We have also successfully established and
participation in creating a green ecosystem for electric buses on road covering more than 50 integrated an Enterprise Risk Management (ERM)
cleaner mobility. While we are proud of what we million green kilometers. We recently unveiled the framework that exemplifies a strategic step that
have achieved so far, we do realize that it may not country’s category-first electric light commercial enhances our ability to assess and manage risks
be enough. When it comes to sustainability, we vehicles, which would go to the market in Q4 while reinforcing our dedication to responsible
need to undertake bigger goals and accelerate our of this fiscal. Our electric medium duty truck business practices.
efforts manifold. technology is in advanced stages and is expected
to hit the market soon. Our work on Hydrogen fuel Our journey towards achieving superior ESG
While in the near future, we plan to focus on outcomes remains unswerving, as reflected in our
cell and Hydrogen ICE is in mature development
improving on our renewable footprint, committing commitments and actions related to all critical
stage. We just delivered our first Hydrogen Fuel
towards RE100, reducing our water intensity, and dimensions of ESG..
Cell Electric Bus which would also be India’s first
becoming carbon-neutral in our operations by
fuel cell bus to ply commercially on Indian roads for
2030, recently we also decided to take a pledge Regards
public transport. Our annual capital expenditure
to be Net Zero by 2048, that is by the time Ashok Shenu Agarwal
has reached in excess of ₹500 crores, a large part
Leyland turns 100. Managing Director and Chief Executive Officer
of which is focused on alternate fuels and clean
mobility. Recently we announced our plans to set
With these ambitious goals being set, we need
up a greenfield bus plant in Uttar Pradesh, India,
to now modify our trajectory to place much
where our prime focus would be to build electric

We are the first
automotive company
to have an ESG
committee chaired
by an independent
director in India. We
have developed an
ESG vision which
is aligned to our
purpose and values.
Message from
Head Corporate
Strategy and ESG
Dear Stakeholders,
achieve carbon neutrality, in FY2022-23, through
It is with great pride and gratitude that I present
the Miyawaki Method we have achieved a notable
to you our 7th Sustainability Report, showcasing
reduction in Scope 1 emissions by 41.5% through
our unwavering dedication to building a more
carbon sequestration. We have successfully abated
sustainable and responsible future. The theme of
our emissions through the adoption renewable
this Report celebrates our accomplishments over
energy in collaboration with Hinduja Renewable
75 years of our responsible operations. This Report
Private Limited contributing to a substantial
highlights our efforts to integrate sustainable
83,780-ton carbon emissions reduction. We have
practices, adapt to changing market dynamics,
accomplished net water positivity across our plant
and meet evolving stakeholder expectations
locations by implementing efficient wastewater
while also providing enhanced disclosures that
This Report highlights underscores our dedication to various aspects
management practices, such as Sewage Effluent
Treatment or Zero Liquid Discharge. Towards
of ESG. Our new brand promise ‘Koi Manzil Door
our efforts to Nahin’ focusses on taking on industry leading
attaining resource efficiency, we have established
In FY23, our efforts in
Zero waste to landfill by co-processing the
integrate sustainable ESG targets with the objective of meeting our
sustainability led commitments. We are on a path
hazardous waste, in collaboration with cement
carbon sequestration
plants and by reconditioning 4,194 engines. These
practices, adapt to towards integrating ESG beyond compliance
reflective of our firm belief that sustainable
efforts secure a more resilient and responsible
have resulted in a
future for Ashok Leyland.
changing market practices will lead Ashok Leyland towards longer
term competitiveness and value creation agenda notable reduction in
With expanding business, and our continued effort
dynamics, and meet by committing and working towards RE100 by 2030
to commit ourselves to sustainability, we also strive Scope 1 emissions by
and NetZero by 2048.
evolving stakeholder to create a positive impact on the community
and our employees. Without the support of 41.5%. Additionally, we
We truly endeavor to be at the forefront of the
expectations while sustainability agenda keeping the tradition of
our employees, we wouldn’t have grown into a
successful automotive player in the last 75 years. abated our emissions
being industry leader as the first Indian automotive
also providing company to have an ESG committee chaired by
Hence as a token of our unwavering commitment
towards our people, we have enhanced our EHS through renewable
enhanced disclosures an independent director. We have developed an
ESG vision which is aligned to our purpose and
processes by assessing our manufacturing plants
energy consumption
on a regular basis. This helped in securing 13 CII
that underscores our values. Towards operationalising the ESG vision,
we developed an ESG policy and have identified 10
EHS awards as part of the EHS excellence. Not just
from the use of roof
our internal stakeholders, external stakeholders are
dedication to various focus areas with specific targets. Further, the ESG
metrics and interim targets have been identified
equally important to us. Our CSR activities focus top solar, group captive
on key areas like education, water management,
aspects of ESG. and planned to be cascaded to functions and
livelihood opportunities, and health and nutrition. solar and wind energy.
businesses through a robust ESG Roadmap and
By investing in engaging and uplifting the local
ESG Strategy launched in this Report which reflects
communities, we contribute to the prosperity
our commitment to our pledge of previous year.
of the regions we operate in. Our commitment
to education, healthcare, and skill development
Our commitment to environment stewardship is
programs is a testament to our determination to
characterized by a remarkable display of dynamism
uplift lives and foster inclusivity. During FY2022-23,
and resilience to achieve carbon neutrality, water
a total of INR 15.16 Crores were invested as part of
positivity and resource efficiency. With an aim to

community development. Our RTS has benefitted 14.5 which is low risk is reflective of our initiatives recycling and rainwater harvesting measures. We continue to seek new partnerships, initiatives
the lives of over 114,000 children. Our RTL program, over the past year. With a focus on R&D endeavors are also preparing for some major commitments and improved disclosures that direct our actions
which was introduced this year for class 9-12 has across multiple technologies & platforms, we have around becoming carbon-neutral in our operations towards a better tomorrow. We are proud of
been well received by parents and the community demonstrated industry product stewardship while by 2030 and becoming Net Zero by 2048. our positive developments and further commit
touching the lives of over 36,000. securing 14 patents during FY23. We strive to Additionally, we are embracing the sustainability ourselves to becoming a world-class leader in being
bring technologically innovative and operationally agenda through adoption of initiatives like a responsible business. I take this opportunity
Corporate governance holds paramount efficient commercial vehicles and products to Circularity for ELV, Digital Twin, Lightweighting to thank and express my gratitude to Board and
importance as we adhere unwaveringly to the our customers and as part of that, took a major demonstrating our Product Stewardship. Our goals shareholders for their guidance, persistent support,
highest standards. Our robust governance stride in developing technology on alternate and targets will also be extended to our suppliers and continued belief in building a sustainable
framework ensures transparency, accountability, fuels such as CNG, Biofuel, and Hydrogen. Along with an aim to promote sustainability in our supply business.
and ethical practices across all operations. With with monitoring our performance and instituting chain.
a strong board constitution, we prioritise sound various initiatives under ESG, we have identified Regards
governance practices that align with industry opportunities to ensure sustainable expansion and As we present this Report, it is a testament Alok Verma
best practices. Our commitment to corporate delivering exceptional value to our stakeholders. to the year-round collective efforts of every Head Corporate Strategy and ESG
governance surpasses regulatory compliance. We individual, business & function at Ashok Leyland.
are also pleased to share that as stipulated under In the near future, we plan on improving our Our ESG endeavors are a reflection of our values
Regulation 34 of the SEBI Listing Regulations, we renewable footprint wherein we are targeting to and aspirations in alignment with our purpose
have released our first Business Responsibility achieve 95% renewable energy for Tamil Nadu “Transforming lives and businesses through
and Sustainability Report (BRSR) which describes plants by 2025. We are in advanced stages of leadership in mobility”. We remain resolute in
the initiatives taken by us from an environmental, committing towards RE100 by 2030. We intend to our pursuit of sustainable growth, guided by
social and governance perspective. Our most retain our water positive status while also working the principles of responsibility, innovation, and
recent ESG Risk rating by Sustainalytics stands at towards reducing our water intensity through collaboration. With our determined efforts, we

Key Highlights
Net Revenue INR Crore Overall Emission Intensity CO2 abatement through Net Water Positive Total Employee Base
(tCO2e/ INR Crore) renewable electricity (Solar, Wind)
36,144 3.64 130,186 +1.24x times 27,714

Profit after Tax INR Crore Water Recycled Gender Diversity
Emissions tCO2e Avoided emissions through
1,380. 11 Scope 1
Energy Saving Projects
65% 3.05%
33,567.84 8,946
Overall
Disclosures
Vehicles Sold (Numbers)
6.8% emission reduction
Overall Water Intensity (kL/ INR
Crore) 9.09% in Board
ESG Profile https://www.
ashokleyland.com/in/en/
192,205
investors
Scope 1 after carbon sequestration Total CO2 abatement (Renewable,
Energy efficiency & Afforestation) 32.03 42% in GET Hiring Certifications
Foundry Production (MT)

19, 632.84 153,697 Beneficiaries for the Road to
480 ISO45001
98,117
Women drivers
School & Road to Livelihood
trained (Occupational Health and Safety)
Scope 2
121%
All Women production for all plant locations
Trees Planted in FY 2022-23
Energy Consumed (GJ)

97,947.41 (numbers) Improvement Line for P15 engine
37,479
over FY 2021-22
1,621,530
Drivers trained
ISO14001
264,885
Scope 1+2 Injury Rate (LTIFR )
(Environment Management
131,515.25 0.06
System) for all Plant locations
Zero Waste to Landfill
% share of Renewable Electricity Hazardous Waste:
57% 7 9 TS16949
Engines Reconditioned through
Scope 3 emissions Retention Rate Recon Business
out of plants
133,897.15 94% 31%

Quality Management System
Energy Saving Projects (GJ) Non- Hazardous Waste:
Improvement over FY 2021-22
45,360
All locations
CO2 Abatement (tCO2e)
Zero Liquid Discharge
Touchpoints (Cum)
Independent Directors in Board LEED v4.1
1,429
(2.8% savings & investment Platinum certified building -
54.55%
of 2.45 INR Crores) CO2 sequestered through All plant locations and Corporate Office
afforestation
technical centre
13,935
Overall Energy Intensity
(GJ/ INR Crore) Water Consumption (kL)
44.86
41.5% of Scope 1 Emissions
1,192,320
Overall energy intensity includes Foundry

Our We have visioned
our ESG priorities
Sustainable and have developed

a strategic and
Strategy
comprehensive
roadmap across our
focus areas.

Our Sustainability Aspirations
Our Sustainability
plan, centered on
Green Excellence,
Empowerment
through Social
Initiatives, and
Transparent
Net Zero Carbon Neutrality Energy Management Health and Safety Board Independence
Achieve Net Zero Achieve Carbon Neutral Commitment to RE100 by Instill a Zero Harm Work & Practices Governance, mirrors
by 2048 operations by 2030 2030 across operations environment Improve board diversity
our deep dedication
to building a better
future. By weaving
these principles
into our operations,
we are setting an
example, driving
positive change, and
contributing to a
Diversity, Equity, and Water Positivity Resource Efficiency Compliance Community Development world that flourishes
Inclusion Attain 80% self-reliance on Zero Waste to Landfill across Compliance with Improved coverage of Road to
ecologically, socially,
Improve gender diversity Water by 2030 business operations by 2024 Competitiveness in ESG school, Road to Livelihood, and
across business operations creating business value Jal Jeevan and ethically.

ESG has become a pivotal focus for Ashok Leyland “To create and lead sustainable practices across
forming a core aspect of our strategic priorities. Environmental, Social, and Governance initiatives
We have visioned our ESG priorities and have delivering outstanding stakeholder value” Resource Efficiency
developed a strategic and comprehensive roadmap Diversity, Equity, and Inclusion
The visioning exercise had a holistic approach We are forward-bound and committed to
across our focus areas. The framework has been becoming Zero Waste to Landfill (ZWL) across We are fostering a diverse culture of
developed collaboratively with various stakeholders toward narrowing down the key focus points
material to Ashok Leyland’s growth and market all our business operations thus improving the people and our approach is to create a
including the Board of Directors and Senior circularity of reduced waste generation, better diverse workforce and an inclusive culture.
Management. positioning to become an industry leader in the
long term. Our 10 focus areas form the basis of our recycling, and responsible material sourcing. This includes gender equality, embracing
Our ESG vision aligns with both the business vision. We are building a culture around resource use different backgrounds, and ensuring
ambitions and stakeholder expectations formulating to reduce our impact and protect the natural equal opportunity.
the ESG Vision of Ashok Leyland as follows resources available for the entire humankind.
Community Development
Building strong communities is central Health and Safety
Social Environment
to our plan to nurture a better tomorrow.
We are committed to a safe work
• Diversity, equity and inclusion • Carbon neutrality We are committed to collaborating with
environment, following strict global
• Community development • Water positive them to understand their needs and
safety standards at all times. Training, risk
• Health and Labour safety • Resource efficiency concerns. Through different partnerships
assessments, and mitigating measures
• Fair labor practices and community projects, we are
keep employees physically and mentally
contributing to education, development,
healthy.
and empowerment by increasing the
Governance coverage across our business operations.
• Board independence
and practices
• Compliance
• Disclosures
Fair Labour Practices Board Independence and
Practices
We are formally committed to
respecting human rights and fairness We are committed to having a balanced
towards people. Our strategy covers board independence. Our governance
equal opportunities, well-being, and stresses an independent and diverse
The formulation of the strategies to effectively confront the shared global challenges. These strategies are eliminating discrimination. By nurturing board ensuring strong strategic decisions,
designed to facilitate the realisation of our outlined Sustainable action plan, as detailed on the following page. transparency and ethics, we are building oversight, and alignment with stakeholder
trust among our operations. interests.
Carbon Neutrality
Water Positivity
We’re committed to reducing the
We are committed to improving our
effects of our business operations on the
self-reliance on water by 80 percent Compliance Disclosures
environment. Our plan involves achieving
by 2030 across operations through
Carbon Neutrality by 2030 through We being responsible corporate citizens We believe it is vital to be transparent
various water reduction initiatives
various initiatives such as procurement/ upholding ethical and compliant and ethical in our journey of becoming
such as rainwater harvesting,
consumption of 100 percent renewable behaviour is of utmost priority for us. market leaders. Our strategy involves clear
recycling, and recharging the
energy across operations. To replace fossil We are committed to controls, audits, sharing of sustainability efforts, successes,
water table. We are also focused
fuel-based energy generation we will be and resolving compliance issues quickly. hurdles, progress towards our goals, and
on securing optimal freshwater
procuring and generating a mix of solar This prioritises ethics and trust among partnerships with different regulatory.
availability in the local communities.
energy through rooftop solar and solar stakeholders.
parks along with wind energy, etc.

75 years journey
through our vision
centers on leading
Ashok Leyland: the way in sustainable
transportation aiming
Koi Manzil to create a better

environment for
Door Nahin
tomorrow and actively
supporting India’s
ongoing economic
growth helping us to
achieve our goal of Koi
Manzil Door Nahin.

Our Corporate Profile As our market continues to expand, and we offer Our Domestic Presence
a wide range of products to society it becomes
The 75-year journey of Ashok Leyland stands as imperative for Ashok Leyland to proactively choose Ashok Leyland’s corporate office is in Chennai, Tamil Nadu. Our extensive network of suppliers and
a testament to our continuous evolution and more sustainable solutions to make a positive dealers spans both Indian and International markets. Our geographic presence in India is shown below.
innovative spirit. Established in 1948, Ashok impact on both environment and society. We
Leyland is the flagship of the Hinduja group of further indulge in creating a positive impact on
companies. Our vision centers on leading the way the environment by reducing our emissions, using
in sustainable transportation aiming to create a energy-efficient technology, optimising the use
better environment for tomorrow and actively of water resources, and further aim to introduce
supporting India’s ongoing economic growth sustainable sourcing in our supply chain.
helping us to achieve our goal of Koi Manzil Door
Nahin. As we mark this milestone, we eagerly look Ashok Leyland is actively involved in upscaling our
ahead to the future reaffirming our dedication to product by investing in R&D, to develop innovative
shaping the automotive industry. We have grown and class-leading vehicles, with an environment-
as the second-largest manufacturer of commercial friendly approach to sustainable growth. We Uttarakhand
vehicles in India, the fourth-largest manufacturer of have also collaborated with Indian Institute of Rajasthan
buses in the world, the 19th-largest manufacturer Technology Madras (IIT Madras) Researchers at
of trucks, and have ranked as the 34th-best brand the National Centre for Combustion Research
in India. and Development (NCCRD) for the development
and commercialisation of ‘Swirl Mesh Lean Direct
Since its inception, Ashok Leyland has maintained Injection (LDI) system’ technology for developing
its position as a value-driven organisation with a series of hybrid Electrical Vehicles using this
strong governance and code of conduct, providing turbine technology. This technology will help
cutting-edge, environment friendly mobility lower emissions, aid in the use of multiple fuel
options that meet stakeholders’ expectations. Our capabilities, and further reduce the overall cost
services cater not only to external stakeholders of ownership. We as part of our Green Mobility
but also to our employees, with a key focus on Solutions, received India’s first LNG Fueled Truck
maintaining a diverse workforce. We have further Central Motor Vehicle Rules (CMVR) certificate for
launched new outlets of M&HCV and LCV for FY AVTR UF3522 and its variants from the Automotive
2022-23 across Indian markets, increasing the Research Association of India (ARAI).
total number of touchpoints. Our commitment to
customer satisfaction extends beyond the sale and
OUR VALUES
these touchpoints further assist in on-road services
for millions of our vehicles.
Driven by our unwavering commitment to INNOVATION

customer satisfaction, we constantly evolve and
Maharashtra
offer the most diverse product portfolio in the
industry, achieving greater sales and revenues
across our product range. Ashok Leyland offers a
AGILITY
wide range of products in all categories of products
like medium and heavy commercial vehicles, Light
commercial vehicles, and power solutions. We also
offer a resilient product portfolio under defence
mobility solutions like tracked vehicles, armoured TRUST
vehicles, and logistic vehicles.
Tamil Nadu
CUSTOMER CENTRICITY
OUR PURPOSE
Transforming Lives and Businesses
through Leadership in Mobility PARTNERSHIP

Our International the launch of five new products ETG groups’ extensive Product Portfolio & and Heavy Commercial Vehicles
Presence with their variants, Ashok connections in the market will Business Verticals: Setting (M&HCV), Light Commercial
Leyland now has a presence in further upgrade the outreach up new milestones Values (LCV), Power Solutions,
With a presence in 38 countries, over 25 countries in Africa for of Ashok Leyland’s products and Defence Mobility solutions. Medium
our global business operations retail market operations. LCV in the African market and Ashok Leyland uses leading- Considering the constantly and Heavy
are centered on expanding products, both in Right Hand provide an outstanding value edge technologies to provide changing technological commercial
our presence in the South Drive (RHD) and Left-Hand Drive proposition to stakeholders. efficient and effective solutions advancements and expectations Vehicles
Asian Association for Regional (LHD), launched in African and Last year saw industry M&HCV in our efforts to significantly from the stakeholders there are
Cooperation (SAARC) and GCC markets have helped it exports from India dropping contribute to the adoption of no stones left unturned when it
Gulf Corporation countries make very good inroads in the more than 30.0% over FY 2021- novel and sustainable urban comes to investments in R&D.
(GCC) nations as well as in Goods segment. We have further 22. However, we sold 11,289 units mobility solutions. Today, we We have been continuously
retail markets throughout expanded and strengthened our in International Operational (IO) provide a comprehensive range striving towards creating
Africa. Ashok Leyland added presence in the African market markets, an increase of 2.0% over of durable, fuel-efficient, and a positive impact on the
distributors in 12 countries and environment friendly products
Light
by collaborating with distribution the previous financial year. AL’s environment and society for a
launched five new products and and services, including Medium
commercial
partner ETG group’s logistics, contribution to exports is 5.16% of resilient future.
their variants. With the addition
Vehicles
warehousing, and distribution its total turnover.
of distributors in 12 countries and vertical, ETG Logistics (ETGL).
Defence
mobility
solutions
Aftermarket
FY 22 (28 Countries)
Focus on key markets & revival
of network in Africa
SAARC
GCC
PROJECTS (AFRICA) Power

solutions
FY 23 (38 Countries)
Entry in to Southern Africa and
Expansion in GCC
WEST AFRICA
Foundry
division
EAST AFRICA
SOUTHERN AFRICA

Medium and Heavy Commercial Vehicles infotainment with Bluetooth, reverse parking,
central locking, etc. We are proud to share that our
We believe in creating products that have a long- Bada Dost i2 was awarded Pick up of the Year 2022-
lasting impact on the users by understanding 23 and Bada Dost special edition was awarded
the changing needs of our diverse customers. As the Marketing campaign of the year at the Global
a market leader, we offer a wide range of diverse Awards for Retail Excellence presented by ET
product range for a large variety of trucks. During Now and World Leadership Congress. Our market
the financial year, we reached a milestone of share in the SCV category stood healthy and
rolling out the 100,000th unit of AVTR and further strong at 19.6% despite economic challenges and
launched our major models including a series of semiconductor shortages. We continue to deliver
AVTR models, Ecomet, Cargo, and BOSS for truck best-in-industry SSI/CSI, lowest defect product,
segments. Ashok Leyland enhanced its product low warranty cost, and high service retention
portfolio in ICV truck segments with the Partner through its network of 620 outlets, achieving a
Super Platform to cater to the boost in demand for service market share of 71.0%. LCV contributed to 12
e-commerce and last-mile delivery applications. percent of the total turnover of Ashok Leyland.
Further, product variants for Ready Mix Concrete
applications and mining tippers helped us Defence Mobility Solutions
strengthen our presence in the Construction and
Ashok Leyland is a complete mobility solution
Mining industry. We pioneered in launching the
player for the Armed Forces. We constantly
42Ton and 44Ton Tractors trailer models, along
aim to prioritise strength and endurance in the
with the introduction of CNG variants in the
development of our vehicles, which demonstrates
Sanjeev Kumar Haulage segment, which were well received during
our commitment to creating reliable and robust
Amandeep Singh
President - MHCV the year. We continue to progressively grow our President LCV, International Operations,
solutions that can excel even in extreme conditions.
sales and revenues across all our business verticals. Defence & Power Solutions
We are seeing faster adoption of Our custom-built units are designed to withstand
With a total of 809 touch points, we sold 114,247
alternate fuel vehicles in the last few rugged terrains and harsh climates, ensuring Expectations of Last Mile Delivery
M&HCVs in the domestic market (10,767 M&HCV
quarters with large fleet owners driving durability and reliability. During the FY 2022-23, operations transforming fast towards
Buses and 1,03,480 M&HCV Trucks including
this revolution. We are working on we achieved remarkable milestones, supplying electric vehicles are high and we are geared
Defence vehicles), registering a growth of 75.5%
multiple fuel options such as LNG, a record-breaking 782 completely built-up units toward satisfying this need. We also strive
over last year, posting a market share increase of
EV and Hydrogen in line with the (CBU). The Company is proud to have executed to bring technologically innovative and
4.7 percent over the previous year, closing at 31.8%.
government’s push towards clean 360 Water Bowsers in record time to the Indian operationally efficient commercial vehicles
M&HCV contributed to 75.8 percent of the total
energy. We have also launched Re- Army, expanded into DGBR (Directorate General and products to our customers and took a
turnover, where 67.2 % was contributed by Trucks
AL, our e-marketplace for used trucks Border Roads) with BAGH variants & Indian Navy major stride in developing technology on
and 8.6 % was contributed by Buses respectively.
to facilitate seamless exchange of with HMV 4x4 (RIV – Rapid Intervention Vehicle). alternate fuels such as CNG, Biofuel, and
commercial vehicles and support Light Commercial vehicles (LCV) We also launched the Jeet 4x4 in the Light vehicles Hydrogen. Ashok Leyland is a complete
customers move towards lower segment during the Defence expo. Looking ahead, mobility solution player for the Armed
emission products. Over the years, our LCV holds significant importance in Ashok we have ambitious plans to expand our product Forces and is a nod to our engineering
Driver Training Institutes have evolved Leyland’s market performance and our products portfolio, including Light Vehicles, advancements capability. As part of the Power solutions
as Centres of Excellence, where the from the BADA DOST range have played a on the Super Stallion platform, and offerings business, we offer engines which are highly
philosophy is to prepare drivers for life – pivotal role in reaching greater heights in the tailored for export markets. fuel-efficient and environment-friendly.
both on and off the road market, solidifying our sales both in national and
international markets. With the launch of BADA Power Solutions Business
DOST i1 and i2, a Limited Anniversary Edition with
The Power Solution business operations focus
industry-first features in a commercial vehicle.
on providing a comprehensive gamut of engines
This Limited edition Bada Dost, came packed with
and solutions meticulously designed for power
many Industries’ first offerings such as touchscreen
generation. Our focus is to develop products with

high quality aiming for customer satisfaction by Digital Solutions employee engagement. In the past fiscal year, the
ensuring unmatched performance and durability. Company successfully identified and executed
We also offer a wide range of products for earth- Ashok Leyland places emphasis on multiple digital number of numerous digital projects leading
moving and construction equipment, agricultural pillars including enhancing customer experiences to increased productivity cost reduction and
harvesters, and marine applications. While there automating processes leveraging big data and the generation of new revenue streams for the
has been an establishment phase of BS CEV IV in analytics, connecting vehicles, and promoting organisation.
the Industrial segment, our market development
measures in new applications with equipment
manufacturers have favored sustained growth
opportunities. Power Solutions Business supported
by new business development with corporates and
equipment manufacturers, contributed 1.8% of
the total turnover of Ashok Leyland. We at Ashok ELITE BY ASHOK LEYLAND
Leyland have achieved a growth of 9.0% in the is a loyalty cum engagement
power solution businesses. During the FY 2022-23,
we achieved sales of 22,925 engines.
programme tailored for our Customer Experience Process Automation Data Analytics
premium customers to foster
Aftermarket
deeper engagement and build
Ashok Leyland is actively focused on serving the
stronger relationships. The
needs of customers throughout the product
life cycle through its Aftermarket offerings. The ELITE programme focuses on
Aftermarket business grew by 31% registering delivering unparalleled brand
a revenue of INR 2,578 crores and added to the
overall profitability of the Company. We ensured
experience by providing our
continuous availability of its extended range of customers priority Workshop Connected Vehicle Industry 4.0 Employee Engagement
parts during the disruption of the global supply attention, privileges and a
chain, through early interventions at Spare Parts
Warehouses, Supplier Partners, and Channel bouquet of exclusive rewards.
Partners. Targeted engagement with suppliers
and logistics partners ensured that the margins
of the Spare Parts Business were sustained,
despite the commodity price increase. The Foundry Division
Aftermarket channel saw record participation from The Foundry Division of the Company caters to
independent garages and ended the year with the not only the needs of Ashok Leyland but also the
highest-ever number of exclusive retail parts stores needs of other OEM’s in the automotive industry
for the seventh year in a row. Leykart, the online in product segments of Cylinder Block, Head,
fulfillment mobile app for Ashok Leyland Genuine and Tractor hullings. For the year FY 2022-23, the
Spares, delivered growth in order fulfillment and Foundry division achieved a production of 98,117
user participation for the fourth year in a row. MT (an increase of 30.4% over last year) and sales
Service function continues to improve penetration of 94,972 MT (an increase of 39.1% over last year).
in service products. Automation and Digitalisation Energy, Emissions, Water, and Waste related
initiatives enabled the service function to reduce disclosures have been separately captured for
cycle times of key internal operations and delivered Foundry operations.
substantial operating cost reduction. AL Care app
continues to serve as a one-stop solution to address The Foundry division caters to the needs of Ashok
the service needs of our customers. Leyland as well as other OEMs.

Product Portfolio
FY 2022-23
192,205 Vehicles Sold
M&HCV Trucks sold in the domestic market
103,480 units
Economic
Total M&HCV vehicles sold in domestic market.
114,247
Performance
Total vehicles sold in the domestic market.
180,916 units
M&HCV Buses sold in the domestic market
10,767 units
LCV sold in domestic market
66,669
Total vehicles sold in the export market
11,289 units

At Ashok Leyland, our objective is to optimise
our operational capacity, upgrade research and Market Performance domestic market. We delivered the sale of 66,669
development, and strengthen innovation, thereby units of Light commercial vehicles and 782 units of
creating a positive impact on our stakeholders. With the stabilisation of the automotive market Defence vehicles.
Our motto of Koi Vikas Navin Nahin also aims after a period of decline/disruption, Ashok Leyland
for the FY 2022-23, achieved a surge in the sale of During FY 2022-23, our financial performance in the
to maintain a diverse product portfolio catering
M&HCV trucks with sales of 102,753 and 10,764units domestic and export markets, showcased sales of
to evolving needs and preferences. We aim to
of buses (excluding defence) respectively in the the following units:
enhance our stakeholder growth and economic
profitability by consistently delivering high-quality
and market-leading offerings.
FY 2020-21 FY 2021-22 FY 2022-23
Particulars
With ever-advancing market trends, the company Sales (units) Sales (units) Sales (units)
has made substantial investments in research
M&HCV Trucks sold in the domestic market 43,320 61,301 103,480
and development (R&D). Ashok Leyland aims to
enhance its products, manufacturing processes,
M&HCV Buses sold in the domestic market 2,723 3,789 10,767
and customer experiences by adopting cutting-
Gopal Mahadevan edge advancements and technology. With a
Whole-time Director and Chief dedicated focus on R&D, we strive to be the Total M&HCV vehicles sold in the domestic market 46,043 65,090 114,247
Financial Officer front-runner of market trends, with efficient
LCV sold in the domestic market 46,671 52,222 66,669
environment-friendly products and deliver
We have recorded a strong
innovative solutions that meet evolving trends and
performance with an all-time high Total vehicles sold in the domestic market 92,714 117,312 180,916
demands of the automotive industry. Furthermore,
revenue. Our EBITDA grew nearly three
during the year under review, the Company spent
times i.e., from INR 995 Crores in FY Total vehicles sold in the export market 8,001 11,014 11,289
15.16 Crores on CSR activities which was over and
2021-22 to INR 2,931 Crores in FY 2022-
above the requirement under the Act.
23 thereby increasing our operating
profit by 120 times.
Economic Performance (INR Crores)
During FY 2022-23, we invested INR
429.66 crores in R&D, contributing to
Particulars FY 2020-21 FY 2021-22 FY 2022-23
1.19% of the total turnover. We have
made investments across multiple
Direct economic value generated 15,420.95 21,764.42 36,260.28
fuel technologies, digitalization and
electric vehicles which has helped to Operating cost 13,933.59 19,775.36 31,839.92
improve our agility and offer products
with lower carbon footprint. We have Community investment
30.18 16.93 15.16
been continuously enhancing the use (Total amount spent for the Financial Year)
of green power which today’s stands
Payments to government 0.02 10.11 780.00
at 67% of the overall consumption. And
we are water positive. We will continue Employee wage and benefits 1,582.64 1,693.96 2,113.86
to invest and support the communities
Payments to providers of capital 258.72 437.11 558.72
we operate in driving initiatives
including Driver Safety and Health as Economic value retained (399.88) (169.46) 952.24
well as supporting one of the largest
education support initiative in Asia
called the “Road to School.”

Financial Highlights: Employee benefits
We have worked as a team to overcome challenges We at Ashok Leyland, as part of the employee
and ramp up the operations with focus and retirement benefit plan, contribute towards
agility to fulfill the demand of our stakeholders. different plans i.e., the Company’s contribution
The Company has set an ambitious mission of to the superannuation fund, employee state
transformative performance, across all our business insurance, and other funds as determined under
segments, over the coming years. the relevant schemes and/or statute and charged Fuel efficiency and
to the Statement of Profit and Loss in the period emission conformance
The total monetary value of the revenue grant of incurrence when the services are rendered by
receivable from the government for the fiscal the employees. We also have an obligation towards
year 2022-23 is INR 25.69 crores. Furthermore, the gratuity as per payment of the Gratuity Act, 1972, a
company follows the existing tax laws and devises defined benefit retirement plan covering eligible
strategies within the ambit of regulations, policies, employees. The plan provides for a lump-sum
and principles governing the respective jurisdiction
Technological advancement
payment to vested employees at the time of
where it operates. The Company further has a retirement, separation, death while in employment,
Transfer Pricing Policy document and the same or on termination of employment of an amount
mandates that arm's length pricing is required to equivalent to 15 days salary payable for each
be followed. completed year of service.
Energy conservation
Also, while developing any new business strategy The Company accounts for the liability for gratuity
that is formulated has tax elements as well and benefits payable in the future based on an
is submitted to the Board for approval. As per actuarial valuation. The Company makes annual
practice, filling consolidated tax returns is not contributions through trusts to a funded gratuity
applicable in India. However, disclosures on taxes scheme administered by the Life Insurance
under relevant Indian Accounting Standards form Corporation of India. Eligible employees of the During FY 2022-23, we invested INR 429.66 crores in
part of the Consolidated Financial Statement as Company are entitled to receive benefits in respect R&D, contributing to 1.19% of the total turnover. We
given in the Annual report. of the provident fund, a defined benefit plan, in have also obtained 14 patents pertaining to R&D for
which both employees and the Company make FY 2022-23.
Holding, Subsidiary, and Associate monthly contributions at a specified percentage of
Companies (including joint ventures) the covered employees’ salary. As a result of our R&D investments, we have
derived the benefits listed below:
We have 35 Subsidiaries, six Associates, and three Company’s liability towards gratuity (funded),
Joint Ventures as of March 31, 2023. The same provident fund, other retirement benefits, and • C
NG variants with complete local aggregates,
has been mentioned in detail in the Business compensated absences are actuarially determined helped reduce the diesel consumption & thereby
Responsibility and Sustainability Report (Page at the end of each reporting period using the reduce carbon footprint with use of CNG.
68 - Annual-Report-FY-2022-23). This includes projected unit credit method as applicable. • N
ew products launched in SCV, LCV, ICV &
subsidiaries as well as step-down subsidiaries.
M&HCV Platforms leading to better TCO for
Research and Development customers.
Capital expenditure and investments.
Our Research and Development aims to not only
During the financial year, the Company incurred foster better environmental impacts but further
INR 488 Crores towards capital expenditure provides the stakeholder with fuel -efficient
also covered the development of new products products. We carry out R&D activities pertaining
covering Bada Dost, Project Vayu (CNG), and other to energy and fuel efficiency, emission reduction,
alternate fuel vehicles (H2 IC Engine, Fuel Cell, BEV), and development of safety components, our
Multi Axle Coach, Partner 9T to 11T, etc. efforts directed towards rendering high customer
outreach and economic profitability.

The year 2022-23 has
Awards and been a successful year

for us with many of our
Accolades
business operations,
products, and practices
receiving numerous
prestigious awards and
being recognized for
undertaking effective
and robust practices.

Our Alwar Plant was rewarded
Ashok Leyland Alwar Plant
the 1st Prize in “Rajasthan Ashok Leyland was honored with
won the award for “Best
State Energy the Chief Minister Reward for
Employers-200” in their exceptional CSR initiative,
Conservation Award” ‘Large Scale Industries’ Category recognized by the Government
by Shri Bhanwar Singh Bhati, from the Employers Association of Tamil Nadu
the State Energy Minister, of Rajasthan
Government of Rajasthan
Ashok Leyland was presented

Received the ASSOCHAM
with the SIAM - CSR Our impactful CSR endeavors
Best CSR Initiative Award for Education
were acknowledged with a
special recognition at the
Award in 2022, & Skills, highlighting our
acknowledging Ashok Leyland’s FICCI CSR Awards
notable contributions in the
Our Pantnagar Plant was outstanding efforts in promoting
field of education and skills 2021-22
awarded Special Category social responsibility.
Our Hosur 2 team won the development.
Received 13 prestigious Award for air
quality
“Environmental
CII EHS Excellence and environment
Excellence Award”
Awards (9 maturity awards from the prestigious CII-ITC restoration in CII-
and 4 special category awards) ICICI Lombard – CNBC TV 18
Sustainability awards. SR EHS Excellence India Risk Management award
Award 2022. AL has won National level in the Large Cap category viz.
CII Lean Six Sigma National Level
Winner award at ISQ “Masters of Risk –
Competition – 2
Platinum,
Quality Sustainability Automotive – OEM
Our Bhandara Plant received 1 Gold, 1 Silver
Award (QSA). Sector”, at the 8th edition
Our Alwar Plant received a
A Special Category Award for “First Runner up of The India Risk Management
Special Category Award for
award” in State level “CII Awards
Safe Employees, Safe water management
Maharashtra energy
Communities in CII- was won by Ennore at the CII-
SR EHS Excellence conservation award
SR EHS Excellence
Award 2022 2022” competition organized
Award 2022 by CII Maharashtra under large
scale engineering industry. Bada Dost i2 was awarded Pick up of the Year 2022- 23
and Bada Dost special edition was awarded the Marketing
campaign of the year at the Global Awards for Retail Excellence
presented by ET Now and World Leadership Congress.
Our Pantnagar Plant also won Our Alwar Plant received

Our Foundry Sriperumbudur
the CII
23rd National and Pantnagar plant bagged “HR Excellence
Energy award for the SEEM – Gold Award in Employee
best energy efficient National Energy Engagement” by the
Employers Association of
organization. Award. Rajasthan

Ashok Leyland has
always considered that
sound governance
practices are crucial for
Corporate its smooth and efficient

operations as well as
Governance balancing the interests

of the shareholders
and ensuring a
positive impact on
the community and
stakeholders.

Ethical Business Practices a positive impact on the community and specific area of expertise to mitigate the risks and • R
eview and ensure compliance with
stakeholders. make recommendations to the entire Board for regulatory ESG disclosures as required and
Ashok Leyland believes that strong ethical practice approval. The key personnel of the committees amended from time to time (such as BRSR).
fosters long-term corporate goals and enhances understand the responsibilities and perform
Board of Directors at Ashok Leyland Appointment, Evaluation, and
stakeholder values. The Company’s actions are necessary steps to ensure the tasks are carried out
reflections of how deeply our values are imbibed The composition of the Board of Ashok Leyland effectively and efficiently. Remuneration of the Board
into our entire company structure and culture. We conforms with Regulation 17 of the SEBI Listing
We have established a total of eight board-level The Nomination and Remuneration Committee
ensure that we adhere to the highest standards Regulations and Section 149 of the Companies Act,
committees, including the Risk Management (NRC) assumes responsibility for the nomination
of corporate governance across all levels of the 2013 (‘Act’).
Committee, the ESG Committee, and the CSR and examination of potential board members.
Company. The management at Ashok Leyland
The Board is comprised of Executive, Non- Committee, among others. Each committee plays In this process, they diligently evaluate crucial
is fully committed to ensuring transparency,
Executive, and Independent Directors with rich a crucial role in guiding and overseeing various aspects such as the organisational structure, size,
accountability, and integrity.
professional backgrounds. As of 31st March 2023, aspects of our business to ensure transparency, composition, and diversity, while also meticulously
The leadership team has been fully involved the Company’s Board consisted of 11 Directors accountability, and sustainable practices. assessing the candidates’ skills and considering any
and committed to enhancing the stakeholder which includes one Promoter Non-Independent recommendations put forth to the Board.
value by providing insightful business decisions, Executive Director, six Independent Non-Executive Environmental, Social, and Governance To facilitate an effective evaluation of Committees,
adhering to high ethical standards, and ensuring Directors, two Non-Independent Non-Executive Committee Independent Directors, Non-Independent
transparency and professionalism in all dimensions Directors, and two Non-Independent Executive Directors, and the Board Chairman, we have
of the business. Furthermore, the Board is also Directors. The Board has constituted the Environmental, implemented a formal mechanism that aligns with
responsible for approving the strategic goals Social and Governance Committee (‘ESG
Of the eleven directors, 72.73% are Non-Executive best practices. Our well-defined compensation
and targets set by the Company during the Committee’) to guide and assist the Board of the
Directors and 54.55% are Independent Directors. policy is strategically designed to attract, retain,
financial year. Also, the leadership team actively Company in fulfilling its oversight responsibilities
The Board has a gender diversity of 9.09% with one and motivate high-caliber professionals who can
governs, supervises, plans, and administers the and also make recommendations as appropriate,
Independent Non-Executive Woman Director. The contribute significantly to our strategic objectives.
implementation processes and monitors the on matters related to entity wide ESG initiatives,
details of the Board of Directors are available in the It is of utmost importance to us that our Board
strategic goals set by the Company. There was key focus areas and benchmarked ESG practices.
Annual Report on Page Number 32: embodies diversity, ensuring that individuals are
no non-compliance by the Company, penalties,
The terms of reference of the ESG Committee are selected based on outstanding achievements
strictures imposed on the Company by the stock of
https://www.ashokleyland.com/backend/in/wp- as below: within the respective fields, extensive experience,
exchanges or SEBI or any other statutory authority,
content/uploads/sites/2/2023/06/Annual-Report-for- unwavering personal and professional integrity,
on any matter related to capital markets during the
the-FY-2022-23.pdf • O versee, review, and assess whether the sound financial literacy, and comprehensive
reporting period.
Company’s strategy, policy, and initiatives familiarity with the industry.
Ashok Leyland has always considered that sound Board Committees are in line with the macro developments
happening in the ESG domain. The ratio of the remuneration of each director to
governance practices are crucial for its smooth
The Board Committees enables the Board to • Integrate the relevant initiatives on matters the median remuneration of the employees of the
and efficient operations as well as balancing
address the risk and opportunities that require a relating to Environment, Health and Safety, Company for the financial year and the percentage
the interests of the shareholders and ensuring
Corporate Social Responsibility, Sustainability, increase of each Director, MD & CEO, WTD & CFO,
and other public policy matters, activities, and and Company Secretary in the financial year is
given in page 31 of the Annual Report FY 2022-23.
Board Committees proposals related to ESG with the other Board
Committees.
• Review material ESG aspects for the Risk Management Framework
Company and oversee the development and
Audit Committee Risk Management Committee The Risk Management Committee (RMC) consists
implementation of targets, standards, and
metrics established by the Management of two independent non-executive directors
to assess and track the Company’s ESG and a representative from the management
Nomination and performance. which is a sub-committee to the board and stays
ESG Committee independent of the board during the decision-
Remuneration Committee • Review and approve the Company’s ESG
public disclosures and oversee the Company’s making process.
engagement with the stakeholders on ESG Our comprehensive Enterprise Risk Management
Stakeholders Technology and issues as well as review stakeholder feedback (ERM) Framework, integrating COSO ERM
Relationship Committee Investment Committee from the ESG disclosures. (Committee of Sponsoring Organisation
• Review monitoring processes for tracking the Enterprise Risk Management) principles and ISO
ESG performance. 31000:2018, guides our risk management practices
Corporate Social Fund Raising Committee • Monitor and review stakeholder perception of and strategic decision-making. This holistic
Responsibility Committee the Company around ESG topics (including framework encompasses all business units and
ESG ratings by leading agencies)

Policies functions, ensuring a proactive approach to risk
5 8 2
management.
Dividend Distribution Policy 4 4 1 3
This comprehensive framework supports
Code on Fair Disclosure Policy
identifying the risks and opportunities and 3 7 6
Impact
Remuneration Policy addressing them through focused mitigation plans
2
Sustainability Policy that are measurable and monitored periodically.
By encompassing all business units and functions, 1
Archival Policy
including the leadership of core business verticals,
1 2 3 4 5
Policy Suite
Code of Conduct to regulate, monitor and report
trading by Insiders
our ERM framework ensures a holistic approach to
risk management throughout the organisation. Probability
Policy on Material Subsidary
Our commitment Quality Policy
The risk management process encompasses
risk identification, impact assessment, effective opportunities twice a year to further enhance the
to Corporate Information Security Policy mitigation plans, and risk reporting. The significant risk management capabilities, facilitating agile and
risks identified are tabled to the Risk Management informed decision-making.
Governance goes Affirmative Action
Committee of the Board along with a mitigation

Penalty for Contravention of Company’s Code plan. The committee upholds our commitment We have formulated a detailed risk management
beyond mere of Conduct to Regulate, Monitor and Report to maintaining an effective and resilient risk policy which includes a framework for the
Trading by Insiders identification of internal and external risks
conformity with Familiarisation Programme for Directors
management system. Through systematic risk
identification, assessment, and mitigation, specifically faced by the Company, in particular
including financial, operational, sectoral,
regulatory and Code of Conduct for Executives
we proactively address risk and capitalise on
opportunities, enabling us to govern our business sustainability, ESG-related risks, information,
legal mandates. We Audit Committee Charter strategy effectively. The committee carries out cyber security risks, or any other risks as may be
determined by the Committee. The policy also

Corporate Social Responsibility Policy of Ashok regular monitoring and reporting of key risks and
have implemented Leyland Limited
a comprehensive FAQs on Insider Trading Code

Policy on Related Party Transactions
set of policies to Whistle Blower Policy
Board of Directors
meticulously adhere
Policy on disclosure of material events or
information
to and comply with
Contact Details of Personnel of the Company Corporate ERM Function
all relevant regulatory authorized under Regulation 30

Environment Health and Safety policy.
and legal norms. The ESG (Environmental, Social, Governance) Policy
policies are available Re-dream – Back to Work Program for Women

Prevention of Sexual Harassment at Workplace
on our website –
Nomination and Remuneration Committee
https://www. Charter Audit/Risk Management
Committee
ERM Steering
Committee
Functional Risk
Management Teams
ESG Committee Charter
ashokleyland.
Code of Conduct for the Board Members and the • Oversight of ERM Framework • Responsible for overall • Risk identification and
• Review of enterprise risks and ERM process assessment
com/in/en/ Senior Management
emerging risks • Integrated view of risk • Risk response and
During the reporting period, there were no incidents
investors/investor- of corruption or anti-competitive behavior.
• ERM effectiveness review • Periodic risk review with
business
mitigation plan
information/policies
Functional reporting Providing updates

includes measures for risk mitigation including Ashok Leyland has implemented Information analysis and algorithm-based data analytics to and cost. The digital Twin has also enabled taking
systems and processes for internal control of Security best practices through the adoption optimise the on-road trials (ORT) for Design to feedback from Cross-functional teams including
identified risks and the Business continuity plan. of Information Security standards and building Market Time reduction. Currently, 160,000+ vehicles suppliers towards incorporating Design for
a robust culture across the organisation. The are running with iALERT comprising 55,000+ manufacturing and Design to Cost in the early
We are focused on proactively managing the Information Security governance is overseen by an customers. phase of Design.
external and internal risks through appropriate independent function responsible for the planning,
business strategies to overcome supply chain review, and improvement of the Information • R obotic Process Automation (RPA): Best in
constraints, continued to focus on employee health, class invoice processing cost less than ₹1 per DevSecOps:
Security processes to protect the Confidentiality,
safety & well-being, worked closely to improve Integrity, and Availability of information assets. invoice. More than 2 Lakh invoices (65%) were DevSecOps (Development, Security & Operations)
dealer & supplier sustainability, and launched processed through the RPA route during automates the integration of security at every
several new products to bridge product gaps During the reporting period, the Company reporting period. phase of the software development lifecycle,
and remain competitive, enhanced productivity has undertaken adequate precautions and • GST: 1st company in India to successfully from initial design through integration, testing,
and initiated cost optimisation initiatives. These implemented relevant Information Security integrate with Govt. portals for e-invoice & do deployment, and software delivery. As part of the
multi-dimensional efforts have supported us to safeguards to ensure the security of Information reverse integration of Income Tax Credit (ITC). DevSecOps process at Ashok Leyland, we have
remain agile and resilient to the ever-changing assets, along with cyber security assessment • i-DART: All-inclusive Digital tool to monitor the created a set of processes and procedures that
business environment while remaining focused on as part of continuous monitoring of hardware, Performance of distributors and recommend are followed by all the development teams. We
enhancing stakeholder value. software, and cloud environment. Marketing schemes using cutting-edge AI/ML have also implemented tools and technologies
tools for code repository, code review, automated
Ashok Leyland has a business continuity plan and
Internal Control Systems Disaster recovery plan with respect to Information Digital Twin solutions through 3D modeling enable deployment to respective environment without
technology with the objective simulation of real situations and outcomes thereby manual intervention using workflow. These are
Given the nature of the business, size, and audited every quarter to ensure adherence and
complexity of operations, we have designed an leading to a reduction of timeline of development
1. T o ensure IT continuity and availability of compliance.
adequate internal control system to ensure that all critical systems and services.
transactions are recorded accurately, completely, 2. To ensure that the confidentiality and integrity
and authorised timely. It ensures adherence to of critical information is not compromised
accounting standards, compliance with applicable during a disaster or recovery process.
statutes conforming to Company policies and 3. To identify the systems, resources, and DevSecOps Practices and Tool
procedures, and effective use of resources and functions necessary for continued operations
safeguarding assets. in the event of a disaster
Further, Ashok Leyland, through its in-house 4. To execute an established plan to resume
independent and multi-disciplinary Internal Audit normal services within a predefined time limit
function with the support of external experts where upon a disaster
appropriate, carries out risk-based Internal audit 5. To minimize the operational impact on
reviews, based on the annual Internal Audit plan various stakeholders within and outside the
as approved by the Audit Committee of the Board. enterprise including dealerships, channel
The Internal Audit function reviews compliance partners, suppliers, and current/prospective
with the established design of the Internal control customers thereby enhancing the confidence
while ensuring the efficiency and effectiveness in Ashok Leyland.
of operations. Significant deficiencies in Internal IT Business continuity plan and Disaster recovery
control identified if any, are tracked for closure and
CREATE DEVELOPE TEST DEPLOY
plan are available in the company intranet portal. Set Apply Report Assure
validated.
Policy Guidance Risk Confidence
Digital Solutions
Information Security
Ashok Leyland has introduced new features in
At Ashok Leyland, we safeguard vital information the vehicles through iALERT with the provision
from threats, both internal and external, through to Monitor driving patterns and predict the best
the adoption of best practices in Information driving economy scoring vehicles in a fleet and Web Application
Security. This has enabled us to minimise risks a specialised screen to compare high and low- Software Static/Dynamic Firewall (WFAT)
from cyber and other information security threats. performance vehicles. In addition to this driver Security Tools Composition Application Security
In the ever-increasing cyber threat landscape, the Analysis (SCA) Testing (SAST/DAST Runtime App
safety - Night driving and continuous driving alerts
Management has focused on ensuring adequate protection (RASP)
are enabled in iALERT. Vehicle errors are reported
and effective Information Security governance to all relevant stakeholders to improve the delivery
across the organization. quality to customers towards effective infant error

Holistic
Stakeholder Impact
Engagement Materiality
with actual
and and potential

business impacts
identified
Materiality
Assessment

Stakeholder Engagement The inputs received from the stakeholder interactions are used in the following ways:
Fostering a healthy dialogue and strong

relationships with all our stakeholders enables
us to deliver on our objectives that contribute to
the Company’s well-being. This interaction helps Creating a list of stakeholders across Prioritising the stakeholders
us manage our stakeholders’ expectations and the value chain, and classifying them and identifying select groups for
concerns, thereby co-creating long-term value. internally and externally engagement
We believe in carrying out periodic engagements
and providing appropriate disclosures in order
to nurture a long-lasting relationship with them.
Keeping this in mind, we ensure a productive
and proactive engagement is organised with
all our stakeholders. We are aware that our Understanding the priorities and
activities impact our various stakeholders such as Formulating questionnaires for the concerns of stakeholders and
employees, suppliers, communities, customers, identified stakeholder groups incorporating their suggestions in our
regulatory bodies, and channel partners. materiality assessment
This interaction We have adopted a four-step stakeholder
helps us manage engagement process. As a part of this engagement
activity in consultation with our senior
our stakeholders’ management, first, we identified all our stakeholder
groups and prioritised them based on their Details of stakeholder groups and their expectations:
expectations and importance to the business. Secondly, we selected
key topics depending on our understanding of the
concerns, thereby co- stakeholder groups and where their interest lies.
Stakeholder
Groups
Modes of
Engagement
Frequency of
Engagement
Key Expectations
Feedback
Assessment
creating long-term Further, we engaged with these groups through
various mediums and platforms. Since each group • A nnual
• E SG performance
value. We believe in has a unique set of needs and expectations,
we adopted a customised approach to engage
shareholder
meeting
• Growth
• onthly
M opportunities • I nvestor
carrying out periodic with each of them. Lastly, we collated all the
Investors
• Investor
presentations and
• Quarterly • Product availability engagement
responses and feedback we received through these
engagements and interactions and undertook appropriate steps to conference calls
•
•
Annually
Need-based
• Product portfolio
• New product
• Investor
presentation
address them. and meets
providing appropriate • Press releases and
development
• Market trend
newsletters
disclosures in order to • B etter prospects
nurture a long-lasting Stakeholder
Developing an all- • M onthly and • Safe work
• E mployee
inclusive list of key quarterly meet environment
relationship with them. Identification and
topics • Personal review • onthly
M • Skill management
engagement
surveys
Prioritisation and visits • Quarterly • Knowledge
Employees • Annual appraisal
• Surveys • Annually management
• Chairman’s award
• Training • Need-based • Fair remuneration
• MD’s townhall
• Annual day • Employee
Meetings
• Events volunteering for
CSR activities
Collation and Engagement

analysis of with the
feedback stakeholders

Materiality Assessment indirectly, impacting our business. During this
Stakeholder Modes of Frequency of Feedback
Key Expectations assessment, we interacted with various stakeholder
Groups Engagement Engagement Assessment
Classifying the economic, environmental, and groups and gained clarity on the different ESG
• L ong-term social issues material to us and our stakeholders is topics concerning the organisation. The material
• uppliers meet
S an instrumental step in our business and corporate
business topics identified, and the initiatives undertaken
• Tech days strategy. Prioritising the key issues help us utilize
commitments in those areas are showcased throughout this
• Mutual visits • S upplier summit resources optimally and further strengthen our
• Economic scenario report. We carried out this analysis in consultation
• Need-based • M onthly • Workshops long-term value. We carried out a materiality
with respect with our stakeholders to foresee risks and develop
Suppliers meetings with the • Annually • Strategic supplier assessment in FY 2020-21. This exercise enabled
to commercial mitigation plans.
leadership team • Need-based Meets us to identify material issues that are, directly and
vehicle industry
• Company events • ESG survey
• Scheduling
• ESG Supplier
Supplier
Surveys
development
• S urveys • D elivery
Customers • Company events • Technical • C
ustomer
• N eed-based
(Institutional • Initiatives like communication satisfaction
• Periodic
and Retail) rewards for • Aftersales service Surveys
purchases • Quality of service
• O ne-to-one
Government
meetings • N eed-based • C ompliance • C
ompliance
and regulatory
• Events and • Periodic • Tax payment reports
authorities
conferences
• C onferences,
global events and
workshops
• Press releases and
Industry newsletters • N eed-based • Compliance • I ndustry policy
Association • Written • Periodic • Regulations development
Communications
• Meetings
Publications and
Announcements
• M onthly and • B usiness targets,

Quarterly meet commitment and
• Personal reviews • onthly
M development plan
• A ssessment
Channel and visits • Quarterly • Training and
audits
Partners • Surveys • Annually development
• Monthly reviews
• Training • Need-based • Customer
• Events – dealer engagement and
conference satisfaction
• C ommunity • P roject
welfare • C ommunity safety assessment
Local programmes • N eed-based and development reviews
Communities • Project • Periodic • Engagement and • Meetings with
assessment Communication the community
reviews leaders

Based on the materiality assessment conducted, the following material topics were identified:
Impact Impact
Positive/ Positive/
Material Topics and Impacts (Actual/ Material Topics and Impacts (Actual/
Negative Negative
Potential) Potential)
Resource Optimisation and Operational Eco-Efficiency Impact 6: Implication of carbon tax

Carbon pricing would create a negative short term impact on
company's finances due to added expenditure. However the impact Negative Actual
Impact 1: Increased Investment of switching to renewable energy
would be short term as the initiatives taken to mitigate emissions will
In order to become self-reliant and reduce emissions it would be
reduce emissions and subsequently carbon tax in the long run.
important to switch to renewable sources of energy like solar (Group
Negative Actual
Captive, Roof top), wind, or green hydrogen. While these sources are
beneficial in the long run, switching to them will require significant Impact 7(i) : Cost incurred to be complaint with existing and
investment. emerging regulations
Due to tightening up of the regulation on carbon emission across the
Negative Potential
globe, infrastructural changes, and change in energy sources would
Impact 2(i): Reduced cost due to improved Energy Management
be required to remain marketable in the existing & overseas market.
Energy management involves understanding the baseline through
This will also lead to higher cost of compliance.
an energy audit and optimisation of energy through the use of
technology to achieve energy efficiency as well as obtain energy
from renewable sources. Energy efficiency can be defined as use Positive Actual Impact 7 (ii): Enhancing systems to be compliant with existing and
of less amount of energy to perform the same task. Reduction in emerging regulations
energy intensity creates a long positive impact on the economy and Due to the tightening up of the regulation on carbon emission across
the environment. Ashok Leyland has energy intensive Foundry and the globe, infrastructural changes, and changes in energy sources
Automotive operations. there would be a requirement to be compliant with the regulations Positive Potential
in order to remain marketable in the existing & and overseas
markets. Having regulations in place would mandate the companies
Impact 2(ii): Cost incurred due to inefficient Energy Management
to take up initiatives and improve systems to be compliant with
Energy management involves understanding the baseline through
these regulations.
an energy audit and optimisation of energy through the use of
technology to achieve energy efficiency as well as obtain energy from Negative Actual
renewable sources. However, if a company is not monitoring their Impact 8: Availability of water, particularly in areas of water stress
energy management and has high energy intensity it would create a Manufacturing plants require water in large quantities for activities
negative impact on the economy and the environment. such as painting, machining, foundry operations, cooling, dust
suppression, cleaning, temperature control, etc. Companies unable
Negative Potential
to secure a stable water supply could face production disruption.
Impact 3: Increasing Green House Gas Emissions
Also with the expansion of the manufacturing capability, it will
In the Automotive manufacturing industry, the major sources
increase the fresh water consumption. There is a cost escalation on
of emissions are caused due to excessive use of energy for the
purchase of water in certain manufacturing locations
manufacturing of vehicles comprising of energy-intensive processess
such as Painting, Machining, Welding, Foundry, logistics of raw Negative Actual
materials and finished goods, etc. The supply of raw materials from
the supply chain and Customer use of products form a significant
portion of the emissions. These amount to substantial GHG Positive Actual/Potential impact
emissions into the environment. Positive Impact on the business operations It can be defined as if the impact is actual or
when compared to the leading industry potential on the business operations effect
Impact 5: Reputational damage practices the company when compared to the leading
There is an increased awareness on climate change among the industry practices
stakeholders as there are significant emissions from the automotive Negative
Negative Potential
sector, this could lead to damage to brand value and reputation. Negative Impact on the business operations
Damage to the reputation may impact the sales of the products and when compared to the leading industry
hamper the brand value. practices

Impact Impact
Positive/ Positive/
Negative Negative
Impact 9: Increase in water use efficiency and resource Impact 1(ii): An unsafe workplace leading to declining employee
management through the water management initiatives well-being thereby limiting equal treatment and opportunities
Reuse of treated effluent and sewerage discharge reduces the stress If a safe workplace is not provided it gravely affects overall employee
Negative Actual
on freshwater resources and reduces freshwater consumption. Ashok well-being which thereby affects the productivity of the employees.
Leyland is taking measures such as reducing, reusing, and recycling Periodic assessments of human rights help ensure equal treatment
for keeping its specific water consumption less. Ashok Leyland has to all employees in the organisation.
implemented measures such as rainwater harvesting, STPs, and
Positive Actual
zero effluent discharge in its manufacturing locations for effective
Impact 2: Reputational damage & Regulatory non-compliances
water management. Ashok Leyland has created water bodies within
Encouraging Child Labour and Forced/Labour within the workforce
factories which help harvest rain water and improve the aquifer level .
may lead to statutory violations. Further, any incidents of child
Through this Ashok Leyland has maintained a water positive status. Negative Potential
Labour or forced Labour occurring across the value chain may affect
The water management initiatives can create a positive impact on
the reputation of the organisation and lead to infringement of legal
the surrounding environment and the created infrastructure can
compliances.
serve the purpose for several years making it a long-term impact.
Training and Education

Impact 10: Pollution of water resources by improper treatment of
wastewater
Discharge of improperly treated effluents in the water bodies causes Negative Potential Impact 1: Investment in training and skills development
pollution. This impairs the water quality of the of surface and ground Skilled employees are an asset to an organisation. Trained
water resources. employees especially in cross functional boundaries are better Positive Actual
assets thereby improving the overall turnover and productivity of the
organisation.
Impact 11: Value creation from waste
Waste produced in the Automobile industry making can be used
as by-products in other sectors enabling steel making as one of Impact 2: Increased Cost to the Company due to Training and
the most resource-efficient industries. Tailings from the mines Development for the Employees
can be used to create byproducts. Hazadardous waste is used Training, Education, and industry-valued certifications can increase
for co-processing in cement industry and Non Hazardous waste the cost to the company. Employee enhancement programs
such as Ferrous scrap and Aluminum scrap are used in Ashok Positive Actual especially for the executives part of Leadership Development Negative Actual
Leyland Foundry and Ashley Alteams respectively. The waste from Programs increase employees market competitiveness. This will also
automotive making used as by-products in other sectors provides a require better employee retention programs with increased value
cost benefit to the company along with an environmental benefit. additions which will ensure the positive utilisation of skills within the
The measures can be implemented for a long term and the effect company.
will be visible as long as the measures are actively taken making it a
reversible impact. Labour Management Relationship
Human Rights Impact 1: Provision of fair wages

The setting of adequate wages is an essential mechanism to enable
Impact 1(i): Ensuring equal treatment and opportunities for all decent living standards and incomes for women and men associates Positive Actual
A safe workplace ensures employee well-being and thereby overall and their families, while at the same time ensuring the sustainability
Positive Actual of enterprises which create the jobs for these associates.
productivity. Periodic assessments of human rights help in ensuring
equal treatment at the organisation.

Impact Impact
Positive/ Positive/
Negative Negative
Impact 2: Worker's rights and collective action Impact 3: Improved internal company culture
Workers’ rights to organise and to take collective action are critical Engaging employees can improve the internal environment.
for supporting and improving working conditions in the respective Company culture is more of an abstract concept and often
sector, including conditions relating to occupational health and incorporates the attitudes and behaviours of the business, its
safety, wages, and job security. These rights can also enable public Positive Actual leadership, and its employees altogether. CSR activities such as
debate about the sector’s governance and practices, enhance volunteering activities, fundraising events tend to create positive
Positive Potential
collaboration towards a just transition, as well as aid in reducing internal culture which in turn increases the level of engagement,
social inequality. Ashok Leyland facilitates the same as part of the retention and hiring . The purpose that we exist for is "Transforming
Long Term Settlement (LTS) process Lives and Businesses through Leadership in Mobility. As we pursue
this purpose , we have also identified 5 values ( Trust, Agility,
Innovation, Customer Centricity and Partnership). Living these values
Recruitment and Talent Retention
would become our culture " The Ashok Leyland Way")
Impact 1(i): Increased rate of Employee retention

Customer relationships and satisfaction
Employee satisfaction and retention are of relevance to the
overall efficiency and productivity of the operations of suppliers.
Organisations could contribute to employee satisfaction and Impact 1: Operational costs related to dealing with cybercrime,
retention through efforts such as training of workers in the value fines, and penalties
chain, etc. Increased employee satisfaction leading to increased Positive Potential The number of information security breaches are rising in the
employee retention could result in lower costs for recruitment per past decade. With cloud computing and online marketplace and
worker, since a high retention rate will ask for new hires to replace payments, maintaining the privacy of customer data becomes very
Negative Actual
the employees leaving. Also, when employees stay within an curtail. Cyber attacks can have several impacts on the functioning of
organisation wherein skills and expertise is maintained, it would lead the organisation such as operational cost and reputational damage.
to increased productivity and thus lower production costs. Ashok Leyland has a well defined Information security policy on
the basis of ISO27000 which holisticly covers the aspects on data
integrity.
Impact 1(ii): Declining employee satisfaction leads to low retention
rates in the organization.
Employee satisfaction and retention are relevant to the overall Impact 2: Higher customer retention
efficiency and productivity of operations. For companies in the B2C segment, the customer retention rate is
If employee satisfaction is not maintained it could result in higher directly proportional to the customer satisfaction score. Research
Negative Potential
costs for recruitment due to the low retention rate which would has shown that a 5% increase in retention can result in a bottom-line
Positive Actual
reflect poorly on the organization making it difficult to onboard profit increase of up to 75%, depending on the industry.
new hires. Moreover, when employees stay within an organisation The impact would be short-term and reversible as the Customer
wherein skills and expertise is maintained, it would lead to increased retention rate would be high only as long as the measures are being
productivity and thus lower production costs. actively taken for customer retention.
Impact 2: Better employee relations

Positive employee relations are influential in driving corporate social
responsibility efforts in companies. When an employee is aware that
Positive Actual
their work at a company contributes to the greater good, they are
motivated to perform better in their roles. This will lead to high levels
of productivity, increased retention rates etc.

Impact Impact
Positive/ Positive/
Negative Negative
Business Growth and Profitability Impact 2: Securing interest of stakeholders

Corporate Governance ensures the interest of a company's
stakeholders. The management incentives are also aligned with
Impact 1: Impact of economic performance due to commodity
stakeholder interest. The Corporate governance strategy can be Positive Actual
price variation
formulated for a long period of time, however the stakeholder's
The fluctuation in commodity prices due to global geopolitical events
interest would be retained only as long as the strategy is actively
or due to natural calamities can impact the economic performance
implemented making it a long term reversible impact.
of the organisation reducing the profit margin or loss of customers
Negative Potential
due to increased cost. Mission 12 Initiative (M12), a comprehensive
initiative for cost optimisation and to provide better value to our Impact 3: Anti-Corruption Practices
customers, was initiated by Ashok Leyland. The objective of this Anti-corruption refers to how an organization manages the potential
mission is to achieve BOM cost reduction, through combination of of being involved with corruption. Corruption increases the likelihood
Negative Potential
“Commercial” and “Design” Levers. of potential negative impacts on workers and communities and
reduces government revenues. Organizations that engage in
corruption can have an unfair advantage in competitive markets.
Impact 2: Impact on lending and borrowing due to currency value
fluctuation
The fluctuation in the exchange rate of currency in which lending Impact 4: Regulatory Compliance
and borrowing is done can largely impact the economic value Negative Potential Regulatory compliance is defined as the process of making sure your
creation of the organisation and interest of the stakeholders. Ashok company and employees follow all laws, regulations, standards, and Negative Actual
Leyland focusses towards sourcing parts within India and tries to ethical practices that apply to your organisation and industry. Ashok
keep the imported parts as low as possible Leyland to comply with current and emerging regualations.
Cybersecurity Sustainable Supply Chain
Impact 1: Operational costs related to dealing with cyber crime, Impact 1(i): Supply chain management to minimise the risks
fines and penalties Sustainability assessment of critical suppliers help in ensuring that
The number of information security breaches are rising since the the suppliers are not engaged in legal or otherwise environmentally
Positive Actual
past decade. With cloud computing and online market place and or socially damaging practices. Further, practices such as adopting
payments, maintaining the privacy of customer or employee data green supply chains help in minimise emerging regulatory risks and
Negative Actual
is become very curtail. Cyber attacks can have several impacts on climate change risks.
the functioning of the organisation such as operational cost and
reputational damage. Ashok Leyland has a well defined Information
Impact 1(ii): Inefficient supply chain management leads to higher
security policy on the basis of ISO27000 which holisticly covers the
risks
aspects on data integrity.
If an assessment of critical suppliers is not carried out, the
organisation would be unaware of the practices of their suppliers. An
Negative Actual
Corporate Governance assessment is conducted to ensure that suppliers are not engaged in
legal, environmental or socially damaging practices. Therefore if the
supply chain is not managed efficiently it will lead to an increase in
Impact 1: Anti-Competitive Practices
risks for the organisation.
Anti-competitive practices may render small producers in these
sectors unable to cover their costs, achieve living income, or pay
wages to their workers, resulting in economic exclusion and risk to Impact 2: Improved reputation and investment attraction
livelihoods. Ashok Leyland could have an impact on anti-competitive Negative Actual Companies that have green supply chains and take the responsibility
behaviour for its direct operations when e.g. opting for collusion with to assess important metrics for their suppliers, are considered Positive Potential
potential competitors. Large organizations that source supplies from accountable. The company will have a better reputation and attract
small producers can take advantage of information asymmetry and investment if they take responsibility beyond their own operations
market fragmentation to limit their choices of whom to supply.

Impact Impact
Positive/ Positive/
Negative Negative
Community Development Impact 3: Capacity building to improve health and safety by risk
awareness and zero-harm culture
Competent workforce requires efficient training and capacity
Impact 1: Brand recognition
building which will help in building awareness among the workforce
Community outreach programmes led by the companies aid
about the hazards and risks related to occupational health and
in creating awareness among consumers about the company's
safety. This capability development will aid in reduction of unplanned
capability of fulfilling their social responsibilities. Customers are
stoppage and thereby reduction of cost which may occur due to
making more conscious choices regarding their purchases as Positive Actual
accidents and incidents. As the company incorporates sustainable
they become more aware of the effects businesses can have on
Positive Potential solutions, new technologies and rules will be introduced such as
their communities. Thus, consumers can choose to patronise
ammonia and hydrogen, which unless properly handled could
those companies which holds a better record of discharging its
represent a significant health and safety risk for seafarers, ships, the
social responsibilities. Ashok Leyland commits to transforming
environment and communities.
lives through mobility – Launches new brand tagline : ‘Koi Manzil
Thus capacity building workshops related to OHS will help in
Door Nahin’ reinforced the commitment towards going beyond
implementing a zero harm work culture across the value chain.
boundaries.
Product Stewardship
Impact 2: Investor Relations
Implementing development strategies typically has a favorable effect
Positive Actual
on how investors feel about a company and how they perceive its Impact 1(i) : Product Safety and Innovation
value. Companies that demonstrate strength in innovation are better
positioned for growth and resilience, strengthening their competitive
edge in the market and more effectively respond to the needs and
Occupational Health and Safety Positive Actual
demands of changing society. By disclosing R&D spending and
activities, companies can convey how they contribute to sustainable
Impact 1: Reduction in lost time injury solutions and efficient production, thereby showing they are fit for
Reduction in lost time injury would be positive and long term, the future.
Positive Actual
however the impact is volatile to fluctuations in investments towards
OHS making it a reversible impact
Impact 1(ii): Increased cost incurred due to Product Safety and
Innovation
Impact 2: Reduced cost associated with accidents and incidents Companies that demonstrate strength in innovation are better
Each accident involves loss of assets and human workforce. The positioned for growth and resilience, strengthening their competitive
Positive Actual
company must commit to achieving the goal of an injury-free and edge in the market and more effectively respond to the needs and
healthy workplace for employees and contractors. demands of changing society. By disclosing R&D spending and
Negative Actual
activities, companies can convey how they contribute to sustainable
solutions and circular business solutions, thereby showing they are
fit for the future. However, to ensure product safety and innovation,
a company would need to allocate sufficient funds to develop the
space further. This will lead to a higher cost of production and
innovation.

Ashok Leyland’s Climate
Commitment
Environmental • As part of our ESG

Vision and Materiality
Stewardship:
Assessment, we are
committed to achieving
Carbon Neutrality across
Preserving operations by 2030.

• Attain RE100 by 2030.
Nature • Attain zero waste to

landfill for operations
(ZWL) by 2024

In alignment with the unwavering commitment Energy Management
to environmental stewardship, we are slowly and
Our Focus Areas steadily progressing towards positioning ourselves
We are cognisant of the fact that, we are one of
as an exemplar in the automobile manufacturing
the energy intensive industries and hence energy
industry. At Ashok Leyland, the conviction rests in
management is one of critical aspects of our
the notion that by catering to the rising societal call
business imperatives. We are aware of the necessity
for eco-conscious solutions, we can propel not only
to conserve and improve our energy efficiency by
value generation but also profound benefits for the
Carbon Company, stakeholders, and the interconnected
ecosystems we are part of to transcend
continuously upgrading our energy management
systems as the energy costs have a direct impact Energy Intensity
Neutrality
on the cost of operations. In order to address this
conventional limits drives us to become champions
concern, we are focusing on various alternative
in environmental transformation. Our responsibility Overall GJ/ INR Crore
options to reduce our dependency on fossil fuel
44.86
towards the environment reflects in our action and
sources for energy through our collaboration with
commitment towards our focus areas.
Hinduja Renewables, we have actively supported
Water In line with the Global Net-Zero Commitment

outlined in the Paris Agreement, we have
the installation of a group captive and rooftop
solar power plant. Also, in collaboration with our
Fuel: 13.62 , Electricity: 31.23
22.5% Improvement over FY 2021-22
Positivity significantly enhanced our reliance on renewable

energy sources. During the reporting period, Ashok
Associate, Rajalakshmi Wind Energy Limited, we
are actively promoting the use of wind energy use
Automotive GJ/ INR Crore
in our manufacturing plant locations in Tamil Nadu.
27.08
Leyland invested INR 2.45 Crores towards various
energy conservation initiatives. This significant contribution has played a vital role
Resource
in diversifying and strengthening our overall energy
As we continue to evolve and adapt, we remain mix. During the reporting period, our dependency Fuel: 11.18, Electricity: 15.89
dedicated to aligning our efforts towards Carbon on renewable energy stands at an impressive 57
Efficiency Neutral operations in the medium term and Net Zero
in the long term. We recognise the need to address
percent with wind energy contributing 20 percent Automotive Plants (GJ/ Vehicle)
4.92
and solar energy contributing 37 percent. Solar
the concerns arising out of climate change and Energy with cumulative 10.14 MW rooftop solar
strive to be at the forefront of sustainable practices power across AL units and 75 MW solar park at
within our industry. Through ongoing initiatives and Sivagangai District, in Tamil Nadu through Hinduja Fuel: 2.03 , Electricity : 2.88
continuous improvement, we are committed to Renewable Private Limited. This achievement 11% improvement over FY 2021-22
minimising our environmental footprint, conserving demonstrates our commitment to reducing
At Ashok Leyland, environmental stewardship natural resources, and contributing to a greener and greenhouse gas emissions and mitigating climate Foundry (GJ/MT)
6.88
remains at the core of our operations. Our more sustainable and resilient future. By continuously change. However, there has been a significant
endeavor is to reduce the environmental impacts seeking innovative solutions and incorporating increase in the total energy consumption as the
caused due to our business operations by closely environmental considerations into our business production of the number of vehicles for FY 2022-
practices, we aim to be leaders in environmental Fuel: 1.03 , Electricity: 5.84
monitoring the parameters that has an effect 23 has increased by approximately 50 percent
stewardship within the automotive industry. One of 5.2% improvement over FY 2021-22
on the environment like, energy, emissions, when compared to FY 2021-22.
water consumption, and waste generation. In the initiatives in this journey is our corporate office
at Guindy which is a LEED v4.1 Platinum-certified During the reporting period, the total Green Energy
order to ensure that we constantly monitor our
building. This building demonstrates Ashok Leyland’s Initiative amounted to INR 36.54 Crores worth the
environmental performance and take necessary
commitment to a sustainable workplace. operating cost savings. Also, we are evaluating
actions during to avoid any kind of shortfall, we
the expansion plans for the existing solar park in
have adopted and implemented ISO 14001:2015 As part of our commitment towards ESG and the following reporting period by +12.4 MWp and
(EMS) across all our operational facilities in India. environmental stewardship, we are targeting Carbon enhancing the rooftop solar capacity by +18.25
This certification bolsters our Environmental Neutral Operations by 2030 and also preparing for MW. The augmentation of the solar capacity of
Management System, ensuring that our practices our commitment towards RE100 by 2030. 30.65 MW would increase the overall solar energy
align with international standards.
capacity to 115.79 MW, increasing the net solar
capacity by 36 percent when compared to the
current capacity.

The below table illustrates the total energy consumption in Foundry and Automotive Plants. The below table illustrates the trend of the total energy consumption inside the organisation.
Total Energy Consumption Energy Consumption – Fuel UoM (000’ GJ)
Particulars FY 2020-21 FY 2021-22 FY 2022-23

Energy (Fuels) Consumption FY 2022-23UoM (000’ GJ)
High-Speed Diesel (HSD) 204.56 215.72 257.70
Automotive Total (Foundry and
Particulars Foundry
Plants Automotive Plants) Heavy Fuel Oil 1.87 - -
High-Speed Diesel (HSD) 30.93 226.77 257.70 Liquified Petroleum Gas (LPG) 48.87 62.55 94.08
Liquified Petroleum Gas (LPG) 70.63 23.45 94.08 Compressed Natural gas (CNG) 25.58 26.60 39.08
Natural gas (CNG) - 39.08 39.08 Dissolved Acetylene (DA) 0.24 0.17 0.12
Dissolved Acetylene (DA) - 0.12 0.12 Propane 24.01 62.72 101.61
Propane - 101.61 101.61 Total 305.13 367.76 492.59
Total Fuel Consumption 101.56 391.03 492.59 Energy Consumption – Electricity UoM (000’ GJ)
Energy (Electricity) Consumption FY 2022-23 UoM (000’ GJ)
Grid electricity (State Electricity Board) 311.53 176.07 296.36
Electricity Purchased from Grid (State Electricity
65.94 230.42 296.36 Electricity Consumption – IEX (Indian Energy
Board) - 76.30 175.55
Exchange)
Electricity Purchase – IEX (Indian Energy Exchange) 162.47 13.08 175.55
Total Electricity 311.53 252.37 471.91
Total Electricity Consumed 228.41 243.50 471.91
Energy Consumption – Renewable Energy UoM (000’ GJ)
Energy (Renewable) Consumption FY 2022-23 UoM (000’ GJ)
Wind 99.01 225.78 243.93
Solar (Rooftop and Ground Mount) 190.16 222.94 413.11
Solar (Group Captive + Rooftop) 80.52 409.08 413.11
Wind 154.92 89.00 243.93
Biodiesel 0.06 - -
Total Renewable Electricity 345.08 311.95 657.03
Total Renewable Energy 179.59 634.87 657.03
Total Electricity Consumption 573.49 555.45 1,128.94
Total Electricity Consumption 491.12 887.40 1,128.94
Total Energy Consumed (Fuel and Electricity) 675.05 946.48 1,621.53
Overall Total Energy Consumption 796.25 1,255.00 1,621.53
The total energy consumption of Foundry operation 27.08 GJ/INR Crore has shown an improvement of 11
through fuel sources is 41 percent and electricity percent when compared to the previous reporting As a part of continuous contribution/effort towards initiatives, there has been a cumulative savings of
consumption are 51 percent of the overall electricity period of 5.53 GJ/Vehicle. sustainable operations, we have taken specific INR 16.8 Crores
consumption. Whereas for the automobile initiatives in energy conservation, usage of alternate/
During FY 2022-23, the energy intensity of the renewable resources, green energy, optimising The net energy consumption outside of the
manufacturing operation, the total energy from
Foundry operations accounted to be 6.88 GJ/ power consumption, etc. organisation during the reporting period has
fuels contributes 30 percent and Energy from
MT. Fuels contribute to 15% of the overall energy accounted to be 1,639,820 GJ. The major activities
electricity contributes 70 percent of the overall
while the remaining energy requirements are During the reporting period, approximately about that accounted for the amount of energy
energy consumption. Through initiatives such as
met through the electricity purchased from the 12.60 million electrical Units (45,360 GJ) have been consumption were employee commute, upstream
fuel switching and moving from fuel to electricity,
grid. Energy intensity with respect to net revenue saved leading to significant savings in energy transportation and distribution, waste generated
we intend to reduce the contribution of fuels.
for Foundry plants is 565.84 GJ/INR Crore with an costs by about INR 10.70 Crores. This was achieved in operations, downstream transportation and
During the reporting period, the specific energy improvement of 5.2 percent when compared to the through a high degree of awareness, Power quality distribution, and employee business travel (local
consumption (Automotive plants) excluding previous reporting period of 5.53 GJ/Vehicle. audits, and energy efficiency projects. The use of travel). The below table illustrates the detailed
energy consumed outside the organisation for Indian Energy Exchange (IEX) power to the tune energy consumed across the foundry operations
our automotive plants with respect to the number The overall intensity with respect to the net of 175,550 GJ through online bidding has resulted and automobile plants and the trend of the total
of vehicles produced is 4.92 GJ/Vehicle. Fuels revenue is 44.86 GJ/INR Crore considering in savings of 6.10 INR Crores which is 15.5 percent energy consumption outside the organisation.
contribute to 41 percent of the overall energy Automotive plants and Foundries with an overall of total electricity consumption. With the above
needs of Automotive plants and the remaining 59 improvement of 22.5 percent compared to the
percent is attributed to electricity consumption previous reporting period of 57.87 GJ/INR Crore. As
contribution is from electricity. Energy intensity part of energy conservation projects, we have done
with respect to net revenue for automotive plants is various fuel switching projects (Diesel to LPG /
Propane as well as electricity optimisation projects).

Energy Consumption Outside Organisation UoM (000’ GJ)
Total (Foundry
Category Foundry Automotive Emission Intensity
+ Automotive)
Employee Commute 18.65 141.57 160.22

Overall tCO2e/ INR Crore Automotive Plants tCO2e/ Vehicle
3.64 0.39
Upstream transportation and distribution 50.58 659.77 710.35
Waste generated in operations 0.22 5.94 6.16

Scope 1: 0.93 , Scope 2: 2.71 Scope 1: 0.14 , Scope 2: 0.25
Downstream transportation 22.04 738.91 760.95
2% reduction in emission over FY 2021-22
Employee Business Travel (Local travel) 1.87 0.28 2.14 Automotive tCO2e/ INR Crore
2.15
Total 93.36 1,546.46 1,639.82 Foundry tCO2e/MT
0.57
Scope 1: 0.07 , Scope 2: 0.53
Scope 1: 0.77 , Scope 2: 1.38
Energy Consumption Outside Organisation UoM (000’ GJ)
Category FY 2020-21 FY 2021-22 FY 2022-23
Employee Commute 68.71 56.56 160.22
Upstream transportation and distribution 242.30 447.09 710.35 abatement of 8,946 tCO2e. Our renewable energy park at Sivagangai District, in Tamil Nadu through
initiative resulted in an emission abatement Hinduja Renewable Private Limited, has helped
Waste generated in operations 9.10 5.00 6.16 of 130,186 tCO2e. With the above afforestation in the emission abatement of 83,780 tCO2e. In
initiatives, we have contributed to environmental addition to huge carbon footprint reduction,
Downstream transportation 48.43 95.75 760.95
conservation as well and which in turn sequestered the 75MW solar park uses robotic cleaning
Employee Business Travel (Local travel) 0.21 0.40 2.14 19,633.84 tCO2e which is 41.5 percent of our Scope 1 technology for regular cleaning of solar modules,
emissions. which is estimated to conserve nine million liters of
Total 368.75 604.81 1,639.82
water annually
Also, the cumulative rooftop solar power across
AL units amounting to 10.14 MW and 75 MW solar
Emission Management the grid and 0.81 tCO2e/MW emission factor of
our electricity through Indian Energy Exchange
In the journey of carbon neutrality, reducing the Scope 1 Emissions UoM (tCO2e)
(IEX) as the energy source is non-renewable
total GHG emissions of the organsiation is one of energy. The Scope 1 emission due to activities Total (Foundry and
the priorities for Ashok Leyland. There are several Particulars Foundry Automotive Plants
within our operational control is 33,567.84 tCO2e Automotive Plants)
initiatives undertaken in order to optimise the which is being calculated as per the GHG Protocol
total energy consumption thus improving the total developed by the World Resources Institute High-Speed Diesel (HSD) 2,299.54 16,858.68 19,158.22
efficiency and thus reducing the total emissions. (WRI), World Business Council on Sustainable Liquified Petroleum Gas (LPG) 4,460.66 1,481.06 5,941.73
Also, during the reporting period, the major source Development (WBCSD), and Fifth Assessment
of emissions is the consumption of fossil fuels Report of Intergovernmental Panel for Climate Natural gas (CNG) - 2,194.61 2,194.61
and electricity which contributes significantly to Change Convention (IPCC). During FY 2022-23, Dissolved Acetylene (DA) - 8.85 8.85
the overall emission. To address this, we have set the total Scope 3 emission was 133,897.15 tCO2e
yearly internal targets, set initiatives to reduce where the categories considered are employee Propane - 6,264.44 6,264.44
the total emissions, and have also installed the commute, upstream transportation & distribution,
Scope 1 Emissions 6,760.20 26,807.64 33,567.84
required measures and monitored the emissions waste generated in operations, downstream
periodically. Our objective is to minimise GHG transportation, and employee business travel (local Scope 2 Emissions UoM (tCO2e)
emissions and increase the renewable energy mix travels).
in the total energy mix of our operations gradually. Electricity Consumed- Grid
13,004.34 45,443.62 58,447.96
Through these concerted efforts, we strive to make We were successful in abating 13,935 tCO2e through (State electricity board)
significant strides in mitigating our environmental afforestation efforts. (20.3 kg CO2e/tree/year as
Electricity Consumed – IEX
footprint. per standard) through cumulative 686,441 trees 36,555.48 2,943.97 39,499.45
(Indian Energy Exchange)
planted whereas during the reporting period
The grid energy reliance of our operations was the total trees planted accounted for 37,479. Scope 2 Emissions 49,559.82 48,387.59 97,947.41
97,947.41 tCO2e considering a 0.71 tCO2e/MW Energy efficiency projects resulted in an emission
Scope 1 + Scope 2 emissions 56,320.02 75,195.23 131,515.25
emission factor of our electricity purchase through

Ashok Leyland being in an energy-intensive considering the total Scope 1 and Scope 2
Scope 3 Emissions UoM (tCO2e)
industry, the foundry contributes to 51 percent of emissions, Foundry operations contribute 43
the total Scope 2 Emissions whereas Automotive percent of the total emissions, and Automotive Category FY 2020-21 FY 2021-22 FY 2022-23
Plants Scope 2 Emissions contribute to 49 plants contribute 57 percent.
percent of the total Scope 2 emissions. However, Employee Commute 5,059.51 4,130.93 12,863.59
Upstream transportation and distribution 17,962.32 32,746.86 58,103.51
Scope 3 Emissions UoM (tCO2e) Waste generated in operations 674.69 781.10 503.63
Total (Foundry Downstream transportation 3,590.30 6,279.64 62,251.30

Category Foundry Automotive
+ Automotive)
Employee Business Travel (Local travel) 15.65 22.71 175.12
Employee Commute 1,524.57 11,339.02 12,863.59
Total 27,302.47 43,961.24 133,897.15
Upstream transportation and distribution 4,137.46 53,966.05 58,103.51
Waste generated in operations 18.10 485.53 503.63 During the reporting period, we considered our total consumption of ozone-depleting substances (ODS)
equivalent to the refilling of the respective equipment. Our net ODS consumption was 6,769.75 KG which
Downstream transportation 1,803.08 60,448.21 62,251.30 contributes to 2,037.16 KG equivalent to CFC-11. These findings underline our commitment to monitoring
and managing the use of ODS, aligning with international protocols and regulations for the protection of
Employee Business Travel (Local travel) 152.63 22.50 175.12
the ozone layer.
Total 7,635.83 126,261.32 133,897.15
Scope 3 Emissions 133,897.15 Ozone-Depleting Substances UoM (KG eq to CFC-11)
Type of emissions FY 2020-21 FY 2021-22 FY 2022-23
Scope 1 Emission UoM (tCO2e) R 22 248.00 297.61 235.30
Particulars FY 2020-21 FY 2021-22 FY 2022-23 R 404A 20.00 3.37 37.87
High-Speed Diesel 16,384.82 15,985.75 19,158.22 R 410A 5.00 77.46 116.05
Heavy Fuel Oil 144.67 - - R 407A 36.00 70.05 60.93
Liquified Petroleum Gas (LPG) 3,518.17 3,946.63 5,936.60 R 134A 191.00 1,159.87 1,581.20
Compressed Natural gas (CNG) 1,435.27 1,492.48 2,192.48 R 32 0 0 5.81
Dissolved Acetylene (DA) 17.34 12.64 8.82

We regularly measure our stack emissions for SOx, NOx, and Particulate Matter (PM) at all our operational
Propane 1,479.17 3,863.60 6,258.90 locations. As per the regulatory requirements, we track and monitor emissions from our stack and DG sets
and submit them to the respective State Pollution Control Board quarterly. During the financial year, we
Total 22,979.44 25,301.10 33,567.84
did not incur any fines or penalties with regard to any environmental violations, and all inquiries related to
environmental compliance were resolved promptly.
Scope 2 Emission UoM (tCO2e)

Air Emissions Unit (Tons)
Electricity Consumed- Grid 71,633.44 55,381.29 58,447.96
Type of emissions FY 2021-22 FY 2022-23
Electricity Consumption – IEX 39,499.45
Suspended Particulate Matter (SPM) 96.65 94.25
Total 97,947.41
Oxides of Nitrogen (NOx) 74.25 80.21
Total Emissions (Scope 1 &2) 94,612.88 80,682.39 131,515.25
Oxides of Sulphur (SOx) 45.43 19.56
Volatile Organic Compounds (VOC) 0.14 5.81
Particulate matter (PM) 62.21 0.06
Others 2.06 0.77
Due to our enhanced data robustness and management systems, we are improving on our data collection and man-
agement of Scope 3 emissions from consolidated level to operational level consolidation of data.

Biodiversity: Enhancing the greenery and manage waste responsibly by recycling and
towards carbon neutrality reusing and supporting various other industries as
Enhancing the greenery the waste by-product of our operations would be
Intense green drive to create more green spaces a raw material for another industry thus creating a
towards carbon neutrality
and emphasis has been on planting more trees positive impact on the environment and following
in and around manufacturing units. We have circularity.
CO2 Abatement (tCO2e) created cumulative 29 multilayer dense forests
using Miyawaki Method – a Japanese Way. Total During the reporting period, the total hazardous
CO2 sequestered through afforestation tree plantations carried out during the reporting waste generated was 3,188.56 MT and the total
13,935
period accounted to be 37,479 in number of trees non-hazardous waste generated was 157,253.36
which accounted for a total of 6,86,441 trees. In MT. Through our continual effort to standardise
FY22, we sequestrated 13,173 tCO2, while in FY the process efficiency and reduction of process
41.5% of Scope 1 waste, we were able to ensure the highest level of
2022-23 we surpassed our previous achievement Zero Waste to Landfill
by sequestrating 13,935 tCO2 (20.3 kg CO2e/tree/ compliance was attained with all applicable laws
Hazardous Waste:
and regulations. We ensure responsible disposal
7 out of 9
CO2 abatement through renewable year as per standard). This increase of 761 tCO2
electricity (Solar, Wind) sequestration demonstrates the continuous by engaging with the State Pollution Control
130,186
positive impact of our afforestation efforts. All our Board authorised third-party vendors for the co-
factory locations including the technical center
have Miyawaki afforestation.
processing and pre-processing of our waste. The
Refuse-Derived Fuel (RDF) is further supplied to the
cement and tile industries which in turn helps in
plants
Non-Hazardous Waste: All locations
Avoided emissions through Energy Our unwavering dedication lies in the preservation diverting the waste away from the landfill in all our
Saving Projects of biodiversity and the mitigation of climate operational facilities except Bhandara and Alwar.
Total Non-Hazardous Waste
8,946
change. By engaging in collaborative efforts with During FY23, we diverted 3,187.08 MT of hazardous
local communities, we are actively implementing Diverted through recycling (MT)
waste and 156,130.76 MT of non-hazardous waste. As
6.8% emission reduction
the Miyawaki method of afforestation. Our
primary focus is on planting native species with
remarkable carbon sequestration capabilities.
part of waste scrap, the Aluminum scrap generated
through our foundry operations goes back to
Ashley Alteams, our joint venture, for aluminum
156,130.76
Total CO2 abatement (Renewable, Our Environmental Management Plan focuses diecasting and the Ferrous scrap generated goes Total Hazardous Waste Diverted
Energy efficiency & Afforestation) on conserving biodiversity hotspots near our back to Ashok Leyland Foundry for recycling
through co-procesing (MT)
153,697
operational facilities, ensuring no negative impact
3,187.08
and use it back for components such as cylinder
on species listed in the IUCN red list. block, cylinder head casting, which are part of the
powertrain.
Through the integration of sustainable practices
Trees Planted in FY 2022-23 (numbers) and the active involvement of local communities, During the reporting period, as part of our
37,479
we are wholeheartedly dedicated to creating a circularity, we have undertaken various initiatives
sustainable future that extends far beyond our such as converting the paint sludge to paint for
operational sites. Our ultimate goal is to inspire secondary application and reconditioning the
widespread adoption of our initiatives, ensuring a Ashok Leyland engines helping in providing second
Cumulative Trees Planted (Operational lasting impact on environmental sustainability. life to 4194 engines during the reporting period
Control)
with an increase of about 32 percent in comparison
686,441 Waste Management

At Ashok Leyland, we strive to create value from
with the previous reporting period.
Ashok Leyland has undertaken an ambitious goal

waste thus reducing the dependency on virgin of Zero Waste to Landfill (ZWL) in operations by
material and following a circular economy model. 2024 and currently, seven out of nine automotive
Through our operations team, we identify, evaluate, plant operations practice ZWL.

Hazardous Waste UoM (MT) Hazardous Waste UoM (MT)
Waste Diverted from Waste Diverted from
Waste Generated Waste Disposed Waste Generated Waste Disposed
Landfill (Recycled) Landfill (Recycled)
FY FY
FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY
Particulars 2022- Particulars 2020-
2020-21 2021-22 2022-23 2020-21 2021-22 2022-23 2021-22 2020-21 2020-21 2021-22 2020-21 2020-21 2021-22 2022-23 2021-22 2022-23
23 21
Used / Spent Spent ion
162.92 354.79 464.71 129.28 - - 130.65 357.49 471.00
oil exchange
Wastes and resin 1.04 - - - - - 1.04 8.27 13.02
residues - 315.62 483.07 815.40 244.46 0.12 - 77.21 458.48 816.74 containing
Paint sludge toxic metals
Discarded Oil and Grease

containers/ Skimming 3.27 - - - - - 3.27
barrels / Liners Residue
contaminated Filter and
559.67 493.76 507.44 457.71 - - 122.21 473.01 480.56 - 18.49 20.01 - - - - 18.49 20.01
with Filter Material
hazardous Chemical
wastes/ - - - 3.06 -
sludge
chemicals
Medical
Used Batteries 30.94 68.63 59.98 15.52 - - 14.00 68.96 62.51 - 0.28 0.49 - 0.27 0.49 - - -
Waste
Wastes / Total
Residues Hazardous 1,614.02 2,530.22 3,188.56 0.42 0.95 763.38 2,498.30 3,187.08
containing 236.90 357.68 462.30 70.36 0.03 0.47 202.29 360.56 466.03 Waste
Oil-Soaked
Cotton Waste
Filter,
15.80 3.37 4.84 12.53 - - 3.76 3.37 5.34
Residues
Chemical
sludge from
wastewater 222.77 571.60 583.70 69.66 - - 154.77 571.12 582.69
treatment
(ETP Sludge)
E-Waste 2.99 12.25 10.49 2.89 - - 2.99 12.25 10.49
Wastes /
Residues
containing 26.46 106.25 153.35 81.07 - - 26.46 106.25 153.35
Oil - Grinding
sludge
Phosphate
31.06 56.40 93.92 10.92 - - 20.14 56.40 93.92
sludge
Spent Solvent
(from Paint 2.26 3.03 3.29 - - - 2.26 3.03 2.78
Shop)
Wastes/
residues
(sealant/ PVC
2.34 0.62 8.65 - - - 2.34 0.62 8.65
residues from
the painting
process)

Non-Hazardous Waste UoM (MT) Resource Management
Waste Diverted from Landfill Ashok Leyland maintains a robust system for
Waste Generated Waste Disposed monitoring and tracking material consumption at
(Recycled)
both plant and corporate levels. During the product
FY FY FY FY FY FY FY FY FY development process, utmost attention is given
Category 2020 2021 2022 2020 2021 2022 2020 2021 2022 to increasing the efficiency of the material used
-21 -22 -23 -21 -22 -23 -21 -22 -23 while ensuring that the environmental impact of
Cable & our products is mitigated, without compromising
Electrical 13.38 26.76 43.62 15.01 - - 1.32 26.76 43.62 the product quality. During the reporting period,
Scrap we consumed 182,554.36 MT of primary materials,
131,625.40 MT of associate materials, 47,990.86 MT
Aluminum of semi-manufactured materials, and 396.54 MT
195.82 217.74 271.68 190.92 - - 5.52 217.74 268.47
scrap of packaging materials. At Ashok Leyland, we are
Steel dust/ driven by a set of strategic approaches:
Shot blast • Waste Reduction: Our endeavors are focused In alignment with the
dust/ 201.74 160.07 351.99 207.60 - - - 160.07 360.15
grinding
on minimising the amount of waste destined
for landfill. latest press release by
dust • Low-Carbon Products: We are committed to
the transition towards low-carbon-intensive
the Ministry of Road
Wood
Waste
1,172.89 1,572.01 2,038.15 1,304.11 - - 75.66 1,563.88 2,029.06 products.
• Natural Resource Conservation: Conservation
Transport & Highways,
Cardboard/
Wastepaper
2,631.19 2,759.35 4,053.52 2,510.75 - - 120.44 2,757.31 4,051.58 of natural resources remains a paramount we at Ashok Leyland
goal in our operations.
Plastic • Emissions Minimisation: Our efforts are are evaluating its tie-
aimed at minimising emissions during
Waste/
Used HDPE
240.76 17,348.24 976.78 266.91 - - 16.85 17,344.83 1,538.13 material extraction and production processes. up with Registered
• Circular Economy: We actively seek to
bags
enhance the circularity of our products Vehicle Scrapping
Waste sand 80,870.19 108,529.89 110,817.90 80,870.19 - - - 101,990.76 109,421.78 and services, promoting a sustainable and
resource-efficient approach.
Facility (RVSF) placing
Food waste 57.24 79.27 104.41 57.24 - - - 79.27 104.41
Steel
• Upcycling sludge and conversion to paint
and use for painting facilities.
AL in a strategic
castings,
MS scrap
13,765.55 18,508.74 32,306.45 13,648.36 - - 213.62 18,486.71 32,213.69
In alignment with the latest press release by the
position on our road to
Rubber
Ministry of Road Transport & Highways, we at Ashok
Leyland are evaluating its tie-up with Registered
circularity and reducing
39.58 50.32 55.78 26.90 - - - 50.32 48.43
Scrap Vehicle Scrapping Facility (RVSF) placing AL in a
strategic position on our road to circularity and
our environmental
Garden
waste
reducing our environmental footprint. The benefit footprint.
of undertaking the initiative would help Ashok
(jungle 350.27 481.55 746.22 350.27 - - - 481.55 746.22
Leyland in abating the net carbon emissions per
wood, dry
truck approximately from 5,000 – 6,000 tCO2e per
leaves, etc)
1,000 vehicles.
Scrap Tyres
8,890.85 37,714.40 5,486.87 8,169.21 - - 541.00 37,714.40 5,305.23 Furthermore, we are dedicated to conducting
and Tubes
comprehensive Life Cycle Assessments (LCAs) on
CRCA Sheet our product ranges in the coming years, enabling a
138.39 - - 138.39 - - - - -
scrap re-use thorough evaluation of their environmental impact
and supporting informed decision-making for
Total Non-
sustainable product development.
Hazardous 108,567.84 187,448.32 157,253.36 107,755.86 - - 974.41 180,873.58 156,130.76
Waste

Towards wood-free Plant: Usage of wood has been
Materials FY 2020-21 FY 2021-22 FY 2022-23
significantly reduced across Plants from 11.83 kg/
Primary Materials UoM (MT) HECU in FY 2021-22 to 9.91 kg/HECU in FY 2022-23
(16 percent reduction) at vehicle manufacturing
Steel 12,711.47 36,121.82 54,227.91
plants and 1.19 kg/MT in FY 2021-22 to 0.77 kg/MT
Steel Scrap 21,026.88 24,070.62 58,178.08 in FY 2022-23 (36% reduction) at foundry division Water Management
enabled by reusable, recycled Steel Pallets
Cast Iron 0.00 0.33 11,729.47 Zero Liquid Discharge
Water Management All plant locations and technical centre
Cast Iron Scrap 16,098.64 16,472.04 49,136.73
Ashok Leyland is a ‘Water Positive’ Company,
Pig Iron Grade 5,804.37 3,385.88 6,071.18 Water Consumption kL
assured by an independent third-party and its
Ferrous Alloys 2,021.62
Associated Materials UoM (MT)

35,402.44 3,210.98 sustenance is monitored year-on-year.
Groundwater Consumption has been minimised

1,192,320
Automotive : 995,610 Foundry : 196,710
across all manufacturing units by implementing
Oil and Lubricants for the process (used for
1,651.61 581.67 1,070.15 Rainwater Harvesting and other water efficiency
equipment & machinery)
improvements. Approximately 65 percent of Net Water Positive
Oil and Lubricants for products (filled-in products)
Oil and Lubricants

3,782.29
5,433.90
5,365.73
5,947.40
8,968.95
10,039.09
the freshwater consumed is recovered through
Sewage/Effluent Treatment. Across locations, the
treated water is used both for inland gardening as
+1.24x times
well as process applications.

Paints 2,379.85 1,991.89 2,814.64 Water Recycled
Chemicals (washing machines, paint shop,

treatment plants, etc.)
742.90 559.35 52,727.44
Ashok Leyland recognises that our operational
locations are in water-stressed locations as
indicated by the water atlas tool developed
65%
4.7% Improvement over FY 2021-22
Consumables Gas (LPG, Propane, Liquid Nitrogen, by World Resource Institute (WRI). To ensure
910.64 453.37 690.06
CO2, Shield Gas, Ammonia, DA) sustainable water management practices, we
have implemented measures to reduce total water Water Intensity
Sand 44,978.67 70,622.17 50,441.99
consumption through various water conservation
Other Consumables 49.01 26.94 16.41 initiatives such as rainwater harvesting, water Overall kL/ INR Crore
32.03
recycling, etc. Through the utilisation of advanced
Diesel (filled-in product) 1,815.72 4,151.72 4,788.49
treatment facilities like the Effluent Treatment
CNG (filled-in products) 20.22 58.84 68.19 Plant (ETP) and Sewerage Treatment Plant 35% Improvement over FY 2021-22
(STP), all withdrawn water is treated and reused
Semi-manufactured Goods UoM (MT) within the facilities. Notably, we have successfully
implemented the dialysis filtration method to reuse Automotive kL / INR Crore
Copper 132.43 137.09 2,208.17
Non-Metallics 11,309.64 10,302.09 2,389.56

ETP water with a TDS level well below 1,000 mg/L
in our Hosur plants. STP outlet water is also reused
with our operational premises for horticultural
27.59
Batteries 972.76 1,608.20 2,758.66
purposes, adhering to permissible limits set by
Automotive Plants kL / Vehicle
Aluminum 0.06 377.54 211.89
5.02
the Pollution Control Board (PCB) without any
stagnation or ponding in the operational locations.
Tyres and Tubes 6.86 22,915.95 38,292.09
Castings and Forging 7.52 309.24 2,130.48 In line with our commitment towards Water 43% improvement over FY 2021-22
Positivity, we have implemented various
Packaging Materials UoM (MT) initiatives, including rainwater harvesting and the
Foundry kL/MT
conservation of subway yield water. These efforts
1.97
Carton Box 50.52 137.39 231.89
aim to reduce our reliance on external or freshwater
Plastic (PVC, Polythene) 34.54 69.11 46.97 sources which in turn contribute towards the
replenishment of the groundwater table. We are 2.5% Improvement over FY 2021-22
MS Pallets/racks (non-returnable) 30.36 24.19 13.30
proud to have achieved ‘Zero Liquid Discharge’ at
Wood 9.23 35.11 104.39 all our operational facilities by effectively reusing
the water from our ETP and STP systems, as per the
regulatory requirements outlined in the consent to
operate issued by the relevant authorities.

Total Water Withdrawal UoM (000’kL) Water re-cycling %
• C onversion of pneumatic operated hoists with
Automotive Total (Foundry and electric hoists
Particulars Foundry 65%
Plants Automotive Plants) 63% • Introduction of energy efficient screw
51% compressor for the high-pressure requirement
Ground Water 129.52 510.87 640.39
of nut runners and elimination of air pressure
Surface Water - 8.60 8.60 boosters
• Productivity improvement in Chassis line 1 by
Third-Party Water 64.06 441.35 505.41 13% resulted in lesser energy per vehicle (4%
Tanker Water - 2.14 2.14 reduction)
FY 2020-21 FY 2021-22 FY 2022-23 • Capacity enhancement at paint shop by 60%
Produced Water - 1.26 1.26 resulted in lesser energy consumption per cab
(10% reduction) since paint shop consumption is
Total Water Withdrawal 193.58 964.22 1,157.80
A Closer Look at Our Initiatives fixed in nature
Total Water Discharge UoM (000’kL) • Introduction of high energy efficient motors
All manufacturing plants have optimised and with less rating against the high-powered
Water Discharge - - - maintained towards unity Power factor motors
Total Water Consumption UoM (000’kL) • Rebuilding of rotary hearth furnace to
• M aximum demand reduction to 8,900 kVA from
accommodate bigger parts processing
Rainwater Consumption 3.14 31.39 34.52 10,700 kVA at Ennore and to 3,300 kVA from
• Capacity improvement in the furnaces at
4,800 kVA at Bhandara
Total Water Consumed 196.71 995.61 1,192.32 manufacturing plants and at foundries to
• Replacement of old AC chillers with energy
improve the yield
Water Recycled 65% efficient chiller units
• Implementation of productivity improvement
• Technology upgradation – replacement of
projects i.e. cycle time reduction through
conventional ceiling fans with BLDC (brushless
modifications in machine controls and utilising
DC motor) fans
During the reporting period, our net water on the water by 2030 through sustainable water advance technology tools
• Grid based operation of compressed air
withdrawal accounted for 1,157,800 kL management initiatives such as utilising rainwater
distribution Lighting modification (LEDfication) continued
(encompassing 193,580 kL within the foundry for process, process improvements leading to
• Power optimiser and Demand controller at renovated buildings and office areas. With all
operations and 964,220 kL in the automotive lowering water use, and improved recycling.
introduced to control the furnace power at the continuous efforts and endeavour on energy
plants.) We ensured that no water was discharged Further towards progressing to reach 80% self-
Foundry, Ennore conservation, our Company is moving towards
externally. This resulted in a total water reliance, budgeted INR 6 cr capex investment with
• Interlocking of cooling tower fan with the carbon neutral and becoming a “Cleaner and
consumption of 1,192,320 kL inclusive of harvested water withdrawal reduction of 24% from FY 2022-23
temperature by suitable circuit modifications; Greener” organisation.
rainwater. During the same period, we consumed level and cost savings of 2.16 cr per annum, with the
• Incorporation of harmonic filters panel for
34,520 kL of rainwater. The water intensity of our assumption that implementation of the identified
compressors and variable frequency drives for
automotive plants stood at 5.02 kL per vehicle, 16 projects to be completed by 2nd half of the
conveyors
while in our foundry operations, it was 1.97 kL per financial year 2023-24.
• Reduction of liquid metal power from 670 kWH /
metric ton.
MT to 630 kWH/ MT
The water intensity through economic value Water Consumption (000’ kL)
generated for automotive plants is 27.59 kL/INR
Crore and for foundry locations, the same is 162.26
kL/INR Crore 1,192.32
1,074.36
987.99
At an overall level Water intensity is: 32.03 kL/INR
Crore in the reporting period compared to 49.54 kL/
INR Crore in the previous reporting period which
is a significant improvement of 35% reduction in
water intensity.
With our focused efforts and efficient practices, FY 2020-21 FY 2021-22 FY 2022-23
we are optimistic about further reducing water
consumption while maintaining operational
effectiveness. We have also undertaken an
ambitious goal of achieving 80% self-reliance

Case Study: 1 Case Study: 2
Energy consumption Energy conservation in

reduction in the Paint Shop Sealed Quench Furnace
(Topcoat and Chiller area) (SQF) at Bhandara.
Electrical Energy Savings by to variable voltage, and variable
optimising the pump speed using frequency output to control AC Description
Variable Frequency Drive as per induction motors. After completion of Segment-4 from the furnace. After this, the
process and quality requirements. (at 840 degrees) and transfer of furnace will take idle temp. of 930
Outcome charge, the Sealed Quench Furnace Degrees which will be attained
Description was maintaining an idle temp of within 15-20 minutes in line with
This process change 930 degrees until the next charge attaining of set value CP required
Variable Frequency drive panels implementation led to a reduction was loaded. Thus, there was energy for loading of next charge.
were installed in the paint shop in power consumption by 2.9 lakh loss from furnace walls during the
for energy optimisation. The VFDs units and an emission reduction of quenching (30min) or air cooling
convert the fixed voltage, and 238.8 tCO2e annually. Outcome
(90min) of charge. To prevent this,
fixed frequency of the input power a process flow was modified such This optimised the Power
that after charge transfer, the consumption resulting in a saving
furnace will retain its existing temp. of 1.14 Lakhs kWH per annum and
Before After
of Segment-4 (i.e., 840 Degrees) thus 90 tCO2e emission reduction
until the charge gets unloaded per annum.
Before After

Power Consumption reduction in Rainwater saving and utilisation at

6s Gear Box Assy chiller plant at the Ennore plant
Ennore Brief description of the initiatives at restrooms and spring water saving at the
implemented: subway.
Brief description Outcome
Utilisation of rainwater from Shop 2 Roof Outcome
The power consumption of the old chiller Power cost per Gear Box reduction. area, thus reducing the withdrawal of ground
unit in Gear Box Assy was very high because water by using the harvested Rainwater. Reduction of groundwater withdrawal and
of the condenser and cooling coil aging A total of 31.7tCO2e was reduced from Nov- thus water intensity.
Also introduced aerator taps at the canteen
causing reduced efficiency. It was replaced 2022 to Mar-2023.
with a new blue start air cooler, the unit power
consumption was reduced per Gear Box and S Capacity
efficiency increased. Project Locations
NO in kL
Water Intensity (kL / HECU) Roof Rainwater Utilisation

12.63 01 at Project Planning 470 kL
14.50 Building
Units/GB
13.06 12.03
10.81 Roof Rainwater Utilisation
02 2,000 kL
7.80 at Shop 3
Roof Rainwater Utilisation

03 600 kL
Before After at Admin Block
Direct Utilisation of Roof

FY 20 FY 21 FY 22 YTD Sep’22 04 1,000 kL
top Rainwater at Shop 2
Case Study: 4
Design improvement in Clutch for

BS6 models
Brief description Outcome
The clutch design was improved to increase Helps reduce the frequency of oil changes
the clutch oil change interval from existing resulting in cost saving for customers over
every 40,000kms for haulage to 120,000Kms time, less waste oil generation, and reduces
and in the case of tippers from 1,000 hours to the need for vehicle maintenance, freeing up
3,000 hours. time and increasing convenience for users.

Reduction in paper consumption Increased identification of defective

Towards our Paperless Office drive, we have converted all high-volume invoices to digital form
which has helped us to improve the process efficiency along with the benefits illustrated below.
parts
As part of Industry 4.0, we have deployed in rework / warranty costs. We are also scaling up
Computer Vision based poka-yoke systems our IIoT platform, MPAS at the manufacturing
in assembly lines to identify and arrest locations focusing on better build quality,
manufacturing defects. 15 use cases are traceability, and shorter delivery time from
deployed across 3 manufacturing plants, which manufacturing to sales.
has helped to save more than INR 2 Cr per year
1,737Trees/Yr
44 Lakh/Yr
(Stationery Cost)
 Storage
space
Easy doc
retrieval
We have also extended the paperless office to automate the process of digital signature
initiative to the vendor end by implementing verification and data extraction for invoice
Robotic Process Automation based invoice processing. This automation has helped in 3x
processing solution, ALPHA (Ashok Leyland reduction in invoice processing time and 4x
Hyper Automation). This solution helps us reduction in invoice processing cost

Social Leadership FY 2022-23
Gender Diversity Overall
3.05%
LTIFR
0.06
Total Workforce (Executives, Workers)
27,714
Social Retention Rate
94%
Leadership Drivers Trained
264,885
Total Workers (Permanent, Non-
Permanent)
22,932
Road to School and Road to
Livelihood Beneficiaries
150,786

Our Employee Strength development, we try to retain top talent and
foster innovation. Additionally, by investing in our
Our employees are our asset, and they contribute employees’ well-being we hope to build a positive
Fostering an Inclusive Workplace towards our long-term success and profitability. culture and enhance performance.
By prioritising employee engagement and skill
We understand that fostering an inclusive
workplace is essential for creating a harmonious
and thriving environment where everyone feels Total Employees
valued, appreciated, and empowered. We are
FY 2020-21 FY 2021-22 FY 2022-23
committed to embracing diversity in all forms such
Category
as gender, age, ethnicity, and skillsets. In the phase Male Female Male Female Male Female
of challenges, the previous few years provided us
with valuable opportunities for reflection, growth, Top Management 16 0 21 0 26 0
and progress. We celebrate and embrace our Senior management 256 3 285 5 301 3
employees’ diverse backgrounds, experiences,
and perspectives and ensure equal access to Middle management 1,522 46 1,470 44 1,464 44
opportunities for growth, development, and Junior management 3,230 292 2,984 262 2,720 224
advancement. Our workforce approach centers on
the three pillars of talent acquisition and directed Workers (Permanent) 5,331 28 4,993 27 4,777 44
development, fostering an enabling environment
Non-Permanent Associates 4,644 7 3,584 18 3,798 64
and inclusive offerings.
Contractual Workers 16,498 597 12,080 554 13,781 468
We have established policies to uphold
Raja Radhakrishnan internationally recognised human rights and Total 31,481 973 25,396 910 26,867 847
President & Head – HR address issues like discrimination, diversity,
women’s rights, equal pay, disclosure of any
We increased our investments in digitalising Artificial Intelligence in our recruitment process
At Ashok Leyland, we have always violations and non-retaliation. There have been
our systems to help us in recruitment to provide that enables us to evaluate the competencies
been people first and we believe zero instances of corruption during the reporting
seamless candidate experiences and enrich our requirement along with business presentation and
that sustainability begins with period. Anti-corruption and anti-bribery policies
talent pool. We have adopted a hybrid hiring communication skills. In FY 2022-23, we achieved
people. Employee voice leads all form a part of our Employee Handbook which
system to optimise time and capitalise the the highest gender diversity ratio of 42% percent in
our human resources practices is available on our Company’s intranet. Safety
right talent. We introduced gamification and the sector.
starting from capability building to is a core value and our company has initiated a
the cultural transformation journey. company-wide cross functional initiative “Manthan”
Engage, educate and empower aimed at Operational Excellence. Under this
has become our mantra towards a initiative strategies and programmes have been
New Hires Based on Gender
greener future. implemented to build safety culture across AL. This
has aided in reducing the risks and incidents of Permanent employees Other than permanent employees
personnel injuries.
FY 2021-22 FY 2022-23 FY 2021-22 FY 2022-23
Male Female Male Female Male Female Male Female
267 41 241 27 0 0 4,418 236

Embracing diversity is an ongoing process that and more. Till date around 51 women executives
New Hires based on Age category requires continuous effort and commitment. have participated in this programme. We have
We strive to create a more innovative, engaged, planned to roll out three unique policies to
Category FY 2020-21 FY 2021-22 FY 2022-23 and successful workforce by fostering inclusive encourage women participation in our workforce
leaderships, creating diverse hiring processes, namely, Redream -Back to Work program,
<30 30 - 50 > 50 <30 30 - 50 > 50 <30 30 - 50 > 50 encouraging open dialogues, reviewing and Sabbatical policy and Flexi work policy.
years years years years years years years years years revising policies to ensure they are inclusive and
equitable. In FY 2022-23, our Board Diversity stands During the reporting period, we launched a new –
at nine percent (1:11) while our women permanent “All Women production Line” for P15 engine with
Top Management 0 0 0 0 0 0 0 0 4
employees contribute to 271 i.e., 5.67%. 100 percent women employees at the Hosur plant.
To promote women empowerment and attract
Senior
0 0 2 0 0 1 0 0 3 Our Personal Effectiveness Programme for more women to the manufacturing industry, Ashok
management
women executives focuses on women belonging Leyland has set up another all women production
to the middle management roles. Structured line with 80 women employees at the Hosur plant
Middle
0 2 0 0 0 0 0 0 1 interventions are provided to them over a period and is planning to extend this at Hosur 2 and
management
for career growth. These trainings include learning Foundry.
labs, mentoring sessions by internal leaders, video
Junior
0 0 0 256 27 0 102 103 - nuggets, interaction with external women leaders,
management
Workers
0 0 0 0 0 0 0 0 0
(Permanent)
Non-Permanent
7,092 0 0 6,942 0 0 5,485 0 0
Associates
Contractual
7,258 627 49 7,921 1,637 31 7,462 281 56
Workers
Total 14,358 633 52 15,119 1,688 32 13,049 439 64
Diversity Equity and Inclusion
Gender Diversity Gender Diversity

Executives in GET Hiring
5.67% 42%
All Women production Line for P15 engine with 100 percent women employees at the Hosur plant

Diversity and inclusion initiatives – Our equal opportunity policy, creates and nurtures the Company for the financial year, please refer to
Women’s week an inclusive workplace. Our corporate offices are the Annual Report FY 2022-23, Page 31. There is
also built as per the requirements of the relevant no difference in entry-level remuneration between
• S hrishti 2.0 is a forum created for our women laws and acts, making infrastructure accessible men and women recruited for the same work
employees to connect and share knowledge. to differently abled employees and workers. In FY profile. We pay 100% of our permanent employees
The forum organises periodic sessions on 2022-23, we have 13 permanent employees and 63 and workers more than the minimum wage
financial wellness, health and wellness, leader permanent workers who are differently abled. We based on the recommendations of the National
talk sessions, etc. Additionally, continuous continue to respect and protect the employee's Commission on Labour.
interactions on knowledge sharing sessions, right to freedom of association and collective
hobby clubs and other opportunities are bargain across our operations. During this Employee Retention
explored to make us a women friendly reporting year, 100% of our workers were covered
organisation. by collective bargaining agreements. Further, our Employee retention is crucial in the long run for our
• Our technical centre at Vellivoyalchavadi management engages with the union leaders success and productivity. To retain our talent, we
(VVC), has established a leadership team led periodically to discuss workers' expectations and invest in several engagement mechanisms and skill
by Dr. N Saravanan and Senior Vice President implement action plans. We also have scheduled development programmes. Our retention strategy
Gopalakrishnan interacted with our women meetings between vendors and the management involves offering competitive compensation
employees on their organisational expectations for effective communication. To ensure a smooth packages, benefits, work-life balance, recognition
and career progression. Also, a general health transition before any major operational changes and awards, transparent communication, and a
camp was organised. all staff members are given a 15 to 21 days’ positive work environment. The employee turnover
• Our Alwar plant organised a Zumba session notice along with a discussion with employee by gender for the reporting period is 5.16% for male
and a gynaecologist consultation wherein 20+ representatives of different departments prior to its employees and 11.51% for female employees.
employees participated. Foundry also arranged implementation.
a gynaecologist consultation from Prashanth
Hospital.
Employee Benefits Permanant employee turnover -
• At ALCOB, a self-defence session, Zumba session
and gynaecologist consultation was arranged. We strive towards maintaining a rewarding
age wise
755
• At Ennore, a session on Cervical cancer workplace by supporting our employees and
awareness was held as part of women’s week. workers with incentives and benefits. We
provide 100% of our employees and workers
with retirement benefits such as provident fund,
gratuity, and employees’ state insurance scheme of
358
India. Additional benefits such as group personnel 320
268
accident policy, group health insurance policy, joint 250
group personnel accident policy, life insurance, 168
disability and invalidity coverage, parental leaves,
etc. are provided to our permanent employees.
Celebrating Diversity at Work <30 years 30-50 years >50 years
Remuneration
International Women’s Day was celebrated in FY 21-22 FY 22-23
VVC on March 08, 2023. Dr. Subashree, Head For the ratio of the remuneration of each director
of Psychology Department at Madras School to the median remuneration of the employees of
of Social Work was the guest of honor. The
celebration encompassed a series of events
starting with an Inaugural Speech by Chief
Parental leave
technology officer Dr. N Saravanan. She
emphasised on the need to have focused Number of employees who returned to
FY No of employees that No of employees that
efforts to consciously increase the diversity work after parental leave ended that were
2022-23 took parental leave returned to work
quotient across Product Development still employed 12 months after their return
functions to facilitate diverse skill sets at the
Male 223 223 14
workplace. Further, a panel discussion on the
topic ‘Multi-Tasking Women and The Balance Female 28 21 0
They Strike Between Work and Life’ was
Total 251 91 14
conducted.

Workforce turnover Gender-wise
Category FY 2020-21 FY 2021-22 FY 2022-23 We focused on developing future

ready skills through targeted
Learning and Development initiatives.
Male Female Male Female Male Female
We have introduced a digitalised
Top Management 1 0 3 0 5 0 monthly calendar that provides
insights on programmes planned for
the month. The categories covered
Senior management 30 1 50 0 21 2 include personal effectiveness, health
and wellness, people managers
Middle management 253 14 147 12 102 8 sessions, technical skills etc.
Quarterly learning sprints are planned

Junior management 334 33 393 66 354 57 to engage and encourage learners
through contests and leader boards.
Workers (Permanent) 1,817 2 692 2 1,746 2 The sprint is a weeklong event in
which multiple learning sessions and
opportunities are planned for the
Non-Permanent Associates 6,288 0 1,088 44 5,698 22 learners. Top learners in each location
are rewarded and recognised.
Contractual Workers 10,442 32 1,511 24 15,521 182
Total 19,165 82 3,884 148 23,447 273
Average Training hours for Executives in FY 2022-23

Employee assistance programmes Learning and Development
Combined Average
Permanent Employees Male Female
We have Employee assistance programmes (EAPs) We invest in learning and development Training Hours
to support the well-being of our team members programmes to ensure that our employees
1 Top Management 3.29 - 3.29
by contributing to employees’ productivity, are continuously progressing in their careers
personal wellness, and organisational success. We and shaping our collective future. Defining 2 Senior Management 8.2 6.2 8.2
conducted career guidance sessions for trainees to the “The Ashok Leyland Way” and the purpose
ensure employability with service centers, financial of “Transforming Lives & Businesses through 3 Middle Management 19.8 18.14 19.7
planning training for employees, and quality of Leadership in Mobility” was cascaded to executives 4 Junior Management 50 110 54
life programmes- life after retirement training. In in the organisation through selected Culture
collaboration with domain experts, we conducted Champions, who were trained on ‘The Ashok
various sessions related to post-retirement life Leyland Way’- Purpose, Culture and Values
planning such as managing health, wealth, workshop. This was further reinforced through a
social relations, investments, and so on as part of sustained ‘internal’ communication campaign.
employee transition assistance.
We carried out various leadership and technical
A long-term settlement was signed in Bhandara training programmes for our employees and
Unit, covering 372 associates, with specific clauses workers during FY 2022-23, such as AL’s Emerging
focusing on flexibility in operations, Quality, Leader Programme (ELP) and Young Talent
Safety, Total employee involvement etc., linked Programme (YTP). These programmes help in
with variable payment for Associates. Bonus/Ex- identifying and grooming high-potential executives
gratia for FY 2022 concluded and a memorandum among our permanent employees to take on
of understanding was signed covering eight higher responsibilities as they grow into the mid to
manufacturing plants. senior levels.

For the AL-Young Talent Program (AL-YTP) & AL- on functional leadership skills. They have kick Total No. of Problem Solving projects
Emerging Leaders Program (AL-ELP), executives started their leadership development programme (APS, BPS & BPI) closed
underwent a three-stage assessment process. with XLRI, 2 tranches are completed. They also
They are now engaged in a yearlong development undergo structured Behavioral coaching session 1,242 1,351
journey, including business critical projects, on competencies self-awareness, Impactful
peer learning, outbound – experiential learning, communication etc.
leadership interactions. This programme has
become aspirational and competitive over time. Continuing the journey of problem-
The selection for FY 2022-23 involved aptitude, solving to achieve process excellence
business acumen, case studies, role play and
STEP – Strength | behavioral assessment. We developed and customised training modules on
application programming interface (API), Business FY 2021-22 FY 2022-23
Transformation |
Process Standardisation (BPS), and Business
Empowerment | Purpose Process Improvement (BPI) by benchmarking with
- is a learning intervention for best-in-class organizations. Trained executives are To create a pool of problem-solving experts as part
women to think big and act big. deployed across various process improvement of our problem-solving continuous engagement
The entire programme provides projects regularly to address chronic issues which model. Executives who have closed at least 2 APS
women with skills that will help include customer and stakeholder pain points to projects and successfully cleared CGB examination
them to grow in their careers. improve their satisfaction levels. are awarded "Certified Green belt (CGB)”. We now
Over 1,351 projects resulting in 106.8 INR crores were have a cumulative of 319 Green belts in Ashok
Gamified Simulations – The Leyland. The Black belt program started in FY
completed in FY 2022-23.
new age learning: Gamified 2020-21 with the objective of addressing high
simulations on different topics complex and high impact business problems
Financial Savings in Cr. (APS,BPS & BPI
such as Agile way of working, through a structured, data based, time bound
Projects)
approach to ensure optimum and sustained
Design thinking, building 106.8
results. 12 executives were trained under Black belt
trust were conducted where As part of the Learning journey, AL – ELP’s have 91.2
program in FY 2022-23. 24 projects got assigned
undergone a two-day outbound activity focusing
participants are taken through to the batch, among which 13 projects has been
on business leadership skills. The overall learning
details of a topic and then given successfully completed with a recurring savings of
journey consists of all round development with
opportunities to practice their immersive projects, leader sessions, inputs
17.41 INR Crores and opportunity savings of 107.84
learnings in a simulation. INR Crores.
from top tier institute partners, CSR, and more.
AL - ELP’s have kick started the leadership
Bookmarked: A book review development programme with IIM A, two tranches
series where learners share FY 2021-22 FY 2022-23
are completed with IIM A. They have undergone
insights about their favourite sessions on strategic development, Mentoring Fig: Financial savings achieved through APS, BPS
book. journey, financial sessions etc. and BPI projects.
Leader’s talk sessions:

Leaders take sessions on various 319
No. of certified Green Belts (cumulative)
industry topics and share their
expertise with the employees. 251
219
195
165
No. of CGBs
119
98
50
As part of Learning journey, AL - YTP’s have FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23
undergone a 1-day outbound activity focusing Fig : Total employees with certified Green Belts over the years

As the gig economy becomes more mainstream, • I n FY 2022-23, we trained 264,885 drivers on
we try to engage with both our permanent BS VI Technology, precautions during downhill
and contractual workers through specialised driving, defensive driving, fuel saving, etc.
programmes. Topics like behavior-based training through online or at site or virtual modes
on safety, environmental health, and safety, basics (Physical – 198,993 & online – 65,892). We also Spread of DTI Locations of current and upcoming DTIs
of hand tools, BS VI awareness programme, POSH, provided placement support to the driver
department-specific skill upgradation, quality trainees so that they are gainfully employed. In
initiative, and basics of Total Quality for Business FY 2022-23, we supported the placement of over
Management (TQBM) were covered. As part of our 6,086 drivers through recruitment drives at DTIs.
sales team training, we conducted an online training
course for Amazon in September 2022, which was • H
ealth check-ups were conducted for 42,236
greatly appreciated. We have also managed to drivers through Mobile Medical Units.
Leh ladakh
seamlessly adapt to virtual platforms and provided • 4
5 AL dealer Driver Trainers were trained under J&K
extensive learning and certification choices to our the Train the Trainer Programme this year.
employees. To close the skill gaps in our teams and Malerkotla
• W
e work towards women empowerment and in Balala (Punjab) (Punjab)
provide employees to reskill themselves we give
access to the Linkedin learning. LinkedIn Learning association with various state governments and Kaithal (2013)
is an online learning platform that provides courses private entities have trained 480 women drivers Burari (2005)
for software, creative, and business skills. The during this financial year on Light Motor Vehicle Bikaner (Rajasthan)
trainers are industry experts.This year, we had 878 (LMV) or Heavy Motor Vehicle (HMV). Most of
them have been employed by State Transport Chhnindwara
employees complete 8,867 certification courses
Railmagra (2014) (2013)
through 10,529.95 learning hours. Utility (STUs) and private players.
Vadodara (2016) Keonjhar (Odisha)
• W
e conducted awareness campaigns on Road
Driving Training Institutes (DTI) safety in association with the Regional Transport Dahej (2019)
Bonai (Odisha)
Over the years, our Driver Training Institutes Office (RTO), traffic police at road junctions, Jamnagar (2022)
Chhatia (2013)
have evolved as Centers of Excellence, where the transport hubs, and various institutions. During Nagpur (2022)
Hazira (2018)
philosophy is to prepare drivers for life – both FY 2022-23, we carried out 361 activities to spread
Sircilla (2021)
awareness on road safety. Barhampur (Odisha)
on and off the road. We conduct trainings for
Mechal (Telangana)
our drivers that work for us or are present in the • C
urrently, we are managing 13 DTIs across India
community. At present, we operate in 20 locations Vijayanagaram (AP)
and have trained cumulatively 21 lakh drivers.
across India and cater to 2.5 lakh drivers annually. Additional three DTIs are ready for operations Dhone (AP)
Dharwad (2015)
from next year and construction work of four
DTIs is ongoing. Bangalore (2015)
Puducherry
Namakkal (1995)
Active DTI’s (13)
Ready for Commissioning (Current FY) (03)
Work in progress
Under proposal

Service Training known as ViBE every two years. This survey management members, who ensure effective
gathers responses from over 95% of our workforce. resolution. In FY 2022-23, 18 complaints were filed
We have renamed the Service training Center as Based on last year’s survey results, we shifted towards working conditions and one on health
Technical Training centre and we have 12 Training gears and adopted a strategy revolving around and safety by employees and workers. There are no
centres PAN India handling all the technology three engagement pillars namely learning and cases pending for resolution at the end of the year.
out of which 3 centres were started in FY 2022-23 development, health and wellness, and family Additionally, 13 complaints were filed during the
covering 843 training programmes engaging 8,842 engagement. We continue to engage using virtual year by shareholders, and all have been resolved.
participants in FY 2022-23. platforms with remote teams, to ensure flexibility in We received 1,041 complaints from customers of
working mode options, create a virtual community, which 179 are in the process of being resolved.
Last year we have started training for dealer
and host online team-building activities.
Sales and Parts team, focussing on technical The People Red Book is a guidance manual made
skills. And this year, we trained around 715 Dealer We embarked on various employee engagement available for our employees to seek fair treatment
sales executives and 158 dealer parts executives. activities where employees participate with great and timely resolution of complaints. Additionally,
We deployed 36 onsite training Van PAN India eagerness and zeal. Activities include amongst it ensures that all our employees are aware of the
Human Rights
focussing more on onsite training for KAM many viz: environmental awareness quiz, Mother’s grievance redressal mechanism.
customers, project customers and STC technicians. Day celebrations, family connect programmes, We ensure to follow all applicable laws and
11,867 mechanics trained through Onsite Training Safety at work which keeps all group of employees regulations on human rights and no instances To foster a safe and harassment-free work
covering Channel, MITR, Customer, State transport engaged and motivated. of discrimination or human rights violations environment, we have developed a comprehensive
undertaking (STU). were recorded in FY 2022-23. In FY 2022-23, POSH (Prevention of Sexual Harassment) Policy.
we conducted training programmes for our This policy is supported by a dedicated Internal
We have developed training module in house both Technology Day Celebrations Compliance Committee, for the purpose of
employees and workers wherein, 100% of our
on digital platform and presentation modules. nurturing a work environment that is safe and
The Tech Day celebrations have evolved from a half permanent and contractual workers and 85% of
day event to a month-long activity, offering a larger our permanent employees participated. 100% to deal with any incidents that may arise in the
Sales Training platform for the Product Development engineers of our offices and plants were assessed for any future in a just and transparent manner. This
to showcase their engineering talent and violations of child labor, forced or involuntary labor, Committee works with an HR representative, to
As part of Sales training 9,315 Dealer Sales address complaints related to sexual harassment.
expertise. This expansion recognizes our engineers’ and discrimination. We also promote freedom of
Executives and 984 Ashok Leyland Sales executives This year, we received 2 complaints, all of which
contributions and provides more time for intensive association, worker participation and collective
were trained. Refresher Product trainings at STCs were addressed and resolved, reaffirming our
project development, in depth demonstrations and bargain for our employees.
were conducted for AL and Dealer Sales Teams. commitment to maintaining a workplace that
knowledge sharing. The theme of Technology Day
2023 was Smart and Sustainable Mobility. Overall prioritises the well-being and dignity of all
Grievance Redressal
Performance Evaluation 19 exhibition stalls were displayed by the Design employees.
team, Aggregates team, Engines team, Validation We have established a dedicated committee that
Our evaluation mechanism is mainly governed by It also ensures dealing with any incidents that may
team, and Defence team, demonstrating their takes care of grievance redressal. The Committee
the terms of long-term settlement which entails arise in the future in a just and transparent manner.
capabilities, innovations, and future readiness. comprises of functional heads and senior
the engagement time, productivity, quality, and
safety parameters. These practices foster a healthy This year, we extended the exhibitions to
work-life balance and well-being of our employees. employee’s family members in February and
Regular performance and career development received an enthusiastic response from employees
reviews were conducted for 100% of our employees and their family members. A whooping 850
during the reporting period. To address the (employees + family) members visited the Tech Day
challenge of rising skill gaps and the need for stalls in VVC and got benefitted.
reskilling and upskilling, we are focusing on
internal mobility (horizontal and vertical) that will
offer growth opportunities to current employees
while uplifting their motivation to work more
efficiently with us.
Employee Engagement
At Ashok Leyland, we prioritise employee
engagement and have implemented various
initiatives to foster a positive and inclusive work
culture. We conduct an employee pulse survey

Occupational Health and safety Through participation in various forums, our strategy at large to take remedial measures, where
Company continues to re-evaluate and assess our needed. During FY 2022-23, 100% of our employees
Safety is our priority, and we believe that any performance to reach the next level. and workers were trained on safety.
loss of life or serious injury in the workplace is
unacceptable. Our target is zero, so that every Approximately 100% of all employees and workers who
are not employees but whose work and/or workplace Safety Risk Assessment
person who enters our facility leaves safe and
unharmed. is controlled by the organisation are covered by such a For any safety-related incidents, proper
system and this is internally and externally audited. We investigation with a detailed 6M (Man, Machine,
We have established a well-defined Environment also expect our suppliers to have occupational health Method, Material, Measurement, and Mother
Health and Safety policy and a robust management and safety management systems that are compliant Nature) and Why-Why analysis are conducted to
system. Our monitoring plan, operating with with ISO 45001 or its equivalent. identify the root cause. Post these appropriate
a multi-year approach, ensures the effective
We update our rigorous safety procedures every corrective actions implemented in all applicable
implementation of the EHS policy. This system is
year to reflect technological advancements and areas. The Hazard Identification and Risk
designed in accordance with the Plan-Do-Check-
create a workspace that encourages the all-round Assessment (HIRA) is carried out on various
Act (PDCA) cycle of continual improvement.
development of our employees. Regular external activities and control measures are planned
This PDCA cycle includes the undertaking of
audits, risk assessments, and hazard identification to mitigate risks according to the hierarchy of
assessments of various risks such as workplace
exercises are conducted to minimise the inherent controls.
risks, fire risks, process safety, ergonomics
machinery risk, occupational health, chemical risks, risks of our operations for permanent and other As per the hierarchy of controls, the elimination of
Ganesh Mani S and so on. We have also institutionalised an EHS workers. For example, all our employees and hazards is the most effective control and followed
President & Chief of Operations workers are involved in proactively identifying and
system which is adopted from the global safety by the substitution of hazards, engineering
processes and policies. All our plants and offices are addressing potential safety risks. At the townhall controls, administrative controls, and use of
As a 75-year ‘responsible’ organisation,
ISO 14001, and ISO 45001 certified. meetings, the safety committee allows the relevant personal protective equipment (PPE). Further, a
our unwavering commitment remains
personnel to peruse any audit findings, safety report on the action taken is submitted by the
to steer our sustainability endeavours
For seamless execution of the EHS system and concerns, progress on EHS targets, and safety
in every facet of operations, with a laser concerned stakeholder.
driving best EHS practices across Ashok Leyland,
focus towards reducing our operational
‘Corporate EHS Function’ has been formed. As part
emissions, championing safety as
of setting up benchmark safety standards, our During the reporting period, recorded work-related injuries are as follows:
our top priority, and wholeheartedly
Company identified the Foundry Sriperumbudur
embracing clean technologies.
plant as a model plant and rigorous actions are in Safety Incident/Number Category FY 2022-23
We’re dedicated to bolstering our
progress with commitment across all levels from
operational model across the entire Employees 0.06
workman to senior-most executive. Our Company Lost Time Injury Frequency Rate (LTIFR) (per one-
value chain while emphasising the
has instituted rigorous monitoring and review million-person hours worked) Workers 0.05
critical importance of enhancing
mechanism of EHS performance through the EHS
environmental sustainability and safety. Employees 3
council meetings (inclusive of a Board member)
This resonates deeply not only within Total recordable work-related injuries
monthly. Health & Safety is monitored through Workers 20
our teams but also among our valued
tracking of leading and lagging indicators.
suppliers and vendor partners. We Employees 0
firmly believe in adopting innovative As we are committed to enhancing the EHS No. of fatalities
solutions that seamlessly weave process maturity all our manufacturing plants were Workers 1
together digitalisation, technology and assessed by CII on EHS process maturity which
High-consequence work-related injury or ill health Employees 0
sustainability. laid a foundation for learning and securing 13 CII
(excluding fatalities) Workers 2
EHS awards (3 – Gold, 4 – Silver, 2 – Bronze and 4
– special category) as part of the EHS excellence.

Empowering our communities Water
Road to School Livelihood Infrastructure
Management
Ashok Leyland since its inception has been Initiative Opportunities development
initiatives
committed to creating a positive impact on
society by focusing on community upliftment
and social welfare. To promote comprehensive
growth and development in children, ensuring
equal opportunities for both genders and enabling
them to thrive within their community by offering Health and Social
them viable avenues for income generation. We Co-curricular
well-being Awareness
at Ashok Leyland, along with fostering innovations Programme
initiatives Programme
and economic profitability, focus on engaging
with the community to create long-term value.
We aim to create a synergistic relationship
with the community by supporting them in
education, health and wellbeing, access to water, Key focus area Community Development
Ashok Leyland is and livelihood opportunities. We have further
developed our Corporate Social Responsibility endeavors towards transforming the community
unwavering in its (CSR) in coherence with specific requirements as
mentioned under Section 135 of the Companies
and creating unlimited opportunities, we are actively
working towards building a sustainable community.
dedication to fostering Act, 2013.
the development of Ashok Leyland is unwavering in its dedication to

fostering the development of children, ensuring
children, ensuring a better future for today’s youth, and tomorrow
further fulfilling our aim of Koi Bachcha Peeche
a better future for nahin. Our initiatives include a wide gamut of
programmes promoting our objective mainly
today’s youth, and focusing on educating students, providing
livelihood opportunities, developing infrastructure
tomorrow further for the community, conducting awareness
Chief Minister Reward for best CSR Initiative: Tamil
fulfilling our aim of programmes, water management, and restoration
programmes for the well-being of communities, Nadu Government
Koi Bachcha Peeche and further focusing on health and well-being

of the society. By expanding our initiatives and Contribution to SDGs’
nahin. reaching more beneficiaries each year, we
By diversifying our efforts from Road-to-School
are making a substantial and lasting impact
initiatives (RTS) and health and well-being to
on the communities we serve. This approach
water initiatives and awareness programmes,
demonstrates our commitment to sustainable
we are addressing a wider range of social and
development and improving the overall well-being
environmental challenges. Viewing community
of society. We aim to implement innovative and
growth and improvement as an opportunity for
impactful programmes through collaboration and
our company, Ashok Leyland, reflects a strong
partnerships that will not only impart value to the
commitment to sustainable development and the
community but also to the company. In FY 2022-23,
welfare of the community in which it works.
we spent INR 15.16 crores on our CSR activities.
Aligning our CSR efforts with the Sustainable
Development Goals (SDGs) demonstrates a
comprehensive and impactful approach toward
sustainability. By directing all our energies and
Aligning with SDG’s

Impact assessment and evaluation we have a presence in 14 districts across 5 states
impacting 150,786 students in 1,373 schools.
Our initiatives are focused in the areas of
1,50,786 1,373
education, health, and water targetting on
Our success journey: RTS
vulnerable communities based on their needs.
Communities and NGOs can further reach Road to School is a Global Programme aligned Students Benefited Schools Impacted
through emails and corporate inbox secreterial@ with the United Nations Global Sustainable
ashokleyland.com for any grievances. For FY 2022- Development Goals and to the National agenda
23, the Madras School of Social Work conducted a of improving the quality of education, health,
Social Impact Assessment to assess and evaluate nutrition, and social and civic awareness amongst
the impact generated by the various projects underprivileged children from Government
undertaken by Ashok Leyland. The assessment Schools. We are proud to share that the coverage
reflected the improvement in foundation literacy of the Road to School and Road to Livelihood
and numeracy by 15 to 20% program expanded from 96,750 students to 150,786
students, benefitting communities covering 5
Jammu & Kashmir
Road to School (RTS) Initiative: states in India. Our CSR efforts have presence in 7,389 Students
3 aspirational districts (Baramulla, Kupwara, and 72 Schools
We at Ashok Leyland, believe access to quality Uddham Singh Nagar) and further aspiring to Since 2021
education is crucial to unlock potential and further cover more districts in the next financial year for
seize the opportunities rising in the future for the the following districts:
youth. Our initiatives like Road to School and Road
to Livelihood provide quality education and job 1. R
anchi – Road to School Program in the Year
opportunities to vulnerable and rural communities. 2024-25 Rajasthan
2. R
amanathapuram – the year 2023-24 we plan to 316 Students
Since our humble beginning in August 2015 with
do health initiatives through Mobile Medical Unit 03 Schools
36 government schools in and around Hosur, today,
Since 2018
1373
Maharashtra Assam
Number of Schools
310 Students 10,467 Students
150786
2 Schools 82 Schools
Since 2019 Since 2022
743
707
Tamil Nadu RTS
530
95,782 Students
253
67923 1080 Schools
106 151
Since 2015
36 45065
43051
Tamil Nadu RTL
27007
19173 36,5222 Students
14806
134 Schools
3853
Since 2022
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
Number of Schools Number of Students

RTS: Education indicator
Our RTS initiative presence across India aspects including remedial education, improving RTS learning interventions in Tamil Nadu have
learning levels, health and well-being, and life skill enabled improvement in proficiency level in
Road to School initiative is a comprehensive education, especially for students of primary and Foundational Literacy of students in grades III, V, RTS Highlights
and impactful initiative started to foster holistic secondary schools. and VIII. Compared to baseline numbers of 38%,
child development. The initiative focuses on 54%, and 62% of students from classes III, V and VIII
Transition rate of RTS students
being proficient in Foundational Literacy, the end- from grade VIII to IX improved
line assessment indicates improvement to 40%, to 98% as compared to the
72%, and 89% respectively. National average of 80%.
Foundational Literacy
An overall increase of 12%
number of children in Proficient
level compared to baseline
Wellness Arts study and 25% reduction in
Initiated in 2016 Initiated in 2022 the number of children in
beginner’s category compared
to baseline study was observed.
Foundational Numeracy
Academic
support- Sports Activity based Learning
An overall increase of 17% in the
Initiated in 2018
Remedial education While 29%, 69%, and 94% of RTS students in grades number of children in Proficient
started in 2015 III, V, and VIII respectively are at the proficient level compared to baseline
level in Foundational numeracy as compared study and 28% reduction in
to the baseline of 24%, 43%, and 71% of students
the number of children in
in the same grades. Also, the pass percentage
beginner’s category compared
of RTS students who were coached to take up
the National Means cum and Merit Scholarship to baseline study was observed.
Our Approach of RTS Scheme Exam (NMMS) accelerated to 8.4% as
compared to the state average of 3% in 2022-23.
Out of our 2,249 RTS students, 189 passed the
NMMS Scholarship exam.
Education Indicators National Average Road to School
% of children not enrolled in schools 4.6o% o
School dropout rate (Grade 1- 8) 14.7% o

Enabling Continuity in Education via Scholarships
Child labour percentage 4.6o% o
Transition from grade 8 - 9 79.50% 97% The objective of the NMMS scheme is to award scholarships to
meritorious students of economically weaker sections to prevent
Grade 10 completion 83% 98%
their dropout in grade 8 and encourage them to continue their
Grade 12 completion 95% 98% education and complete high school. Scholarship of INR 2,000/-
Girls dropout rate after grade 10 (government schools) 22% 5% per annum (INR 1000/- per month) per student is awarded to
selected students every year to study in grades 9 to 12 in State
Government, Government aided and local body schools.

We also conducted a teacher enhancement The RTS team further in collaboration with
programme under Road to School initiative the principals, teachers, and the community,
at Dibrugarh, Assam in December 2022. The conducted a door-to-door survey and enrollment
Community involvement to promote ownership
programme aimed to enhance the teaching campaigns, resulting in bringing back 28 school
capacity of Government School teachers through dropouts and facilitating 931 new admissions as
12,413 489 194 16,528

capacity building, thereby improving their teaching part of the RTS initiative. 3 of the RTS students won
effectiveness and impacting the learning level gold medals in Khelo India initiatives at the Zonal
improvement of students in Foundational Literacy and District levels. Home Visits for Scholarship Winners Sports Authority of Psychometric Test &
and Numeracy (FLN). We have further developed a Enrollment (2022-23) (2022-23) India Recognitions Career Counseling
comprehensive Teacher Competency Assessment (2022-23) (2022-23)
tool based on the National Council of Educational
Research and Training (NCERT) framework for
Assam, the programme covered 82 schools and
benefitted 10,000 students.
The Road to School initiative intervention in J&K

covers 72 Schools, reaching out to 7,000+ Students.
Under this initiative, the learning improvement of Wellness sessions Art education sessions:
the children is being addressed along with sports
In addition to delivering quality 60,000 students in Tamil
and wellness initiatives. Focus is also given to the
education, the RTS initiative Nadu and 8,000 students in
parents as part of stakeholder management by
encompassed wellness J&K displayed their creativity
strengthening the Parent Teachers Association
sessions that were successfully through art education sessions
(PTA) in 72 schools. In the academic year learning
conducted for 55,000 students developed in collaboration
levels improvement was assessed by End Line,
in Tamil Nadu, 7,000 students in with our knowledge partner,
indicating that the number of children in the
J&K, and over 300 students each Chennai Photo Biennale
proficient category has increased from 3% to 61% in
Khelo India Initiative in Rajasthan and Maharashtra
Literacy and from 4% to 63% in Numeracy.
Co-Curricular
activities under
RTS initiatives
Critical thinking sessions:

In collaboration with Amazon, Sports activities:
we facilitated training for 12,000
EDUCATED & SKILLED HEALTH INCLUSIVE We reintroduced and
students from Tamil Nadu, focusing
aligned with the Khelo
• 20-30% improvement in • 100% improvement in • 98% transition rate from on enhancing critical thinking and
India programme (National
literacy and numeracy health and hygiene middle school to high problem-solving skills. Through
programme for Development
parameters school including girls engaging "Hour of Code" workshops,
• 20-30% remedial students of Sports) for our school
students were introduced to the
mainstreamed every year • Pioneered breakfast meals • Over 800 rural youth students, where 319 RTS
fundamentals of coding, equipping
- facilitated 1 million plus employed as teachers in schools registered under the
them with valuable skills for the digital
• Over 12,000 students meals in 2 years (Now remote schools Khelo India App (National
age. It played a vital role in nurturing
reverse migrated from adopted by state Govt.) Sports Repository System).
their ability to think critically and solve
private schools to RTS
complex problems.
schools • Pioneered structured
sports and art interventions
• 15% improvement in overall for the first time.
school ratings every year

Road to Livelihood
We at Ashok Leyland aim to impact youth
preparing them for the future to be an abled
individual potential enough to attract livelihood
opportunities. The Road to Livelihood programme
focuses on preparing students from class IX to Key focus RTL STUDENT MOVEMENT-
XII for life beyond school. This programme was
officially launched by the Minister for Education,
areas of RTL GRADE 12
Government of Tamil Nadu. The Road to Livelihood • I n Krishnagiri District, 84% of
intervention covers 133 High and higher secondary students who passed grade
Schools and reaches out to 36,000+ Students. 12 have opted for higher
In line with our commitment to empowering education
Infrastructural
students, we conducted training sessions for 105
senior resource persons and 88 government school
Career • I n Thiruvallur District, 57%
teachers. These individuals were certified as career guidance students have passed the
development mentors for providing effective career guidance 12th grade exam and 53%
through a train-the-trainer model, in collaboration
Adolescent of students who passed the
As part of our MoU with a professional career counseling organisation.
Additionally, over 15,000 students in grades X and Wellness exam have enrolled for higher
education/ vocation training.
with the Government XII underwent psychometric assessments and
received face-to-face career counseling sessions,
Implementation
will begin 2023 • I n Namakkal and Salem
of Uttarakhand accompanied by their parents. This comprehensive
district, 73% of students who
under the Road to
approach enabled them to make informed
decisions regarding higher studies and career
Spoken have passed the exam have
paths. Furthermore, we extended our efforts to English enrolled for higher education.
School initiative, train more than 35,000 students in digital literacy, Implementation
• T
he team is tracking the
equipping them with essential skills for the digital will begin 2023
we successfully age.
students who have not
appeared for the exam or failed
completed the Digital and ensuring that they rewrite
upgradation of literacy the exam to continue higher
education or enroll in suitable
infrastructure in seven vocational training course
schools located in the
Udham Singh Nagar
District.
ITI set up in J&K
Ashok Leyland signed an MoU with the Director of Industrial Training Institutes where in Automobile
Skill Development with the objective of setting up related courses are being offered to the students
of Centre of Excellence for Automotive Technology in the discipline of Diesel Mechanic and Mechanic
in two institute locations in the state J&K namely Motor Vehicle spread in the Kashmir and Jammu
(1) Kathua for Jammu and (2) Badgaam (Srinagar) provinces.
for Kashmir province in the year 2020. There are 35

Jal Jeevan: Water Initiatives: community, ensuring access to a reliable water
source. Additionally, under our Sustainable Water
Water conservation and access to clean drinking Management Project, we successfully revived two
water are crucial aspects of environmental and ponds, benefitting a total of 11,545 family members.
community well-being. Hence, at Ashok Leyland, Furthermore, we extended support to 36 farmers
we have initiated a water management and by assisting in the installation of irrigation pipelines,
water body restoration programme for better covering 8,918.92 meters, promoting efficient
water optimisation for communities. The project water usage for agricultural purposes. Through our
Health and well-being initiatives aims to provide and create water resources initiatives, we expanded our coverage from 1,045
for the community through sustainable water households in FY 2021-22 to 3,075 households this
Prioritising health and social well-being as a key conservation techniques. year covering 21,655 people.
component of our CSR activities demonstrate our
commitment to the welfare of individuals and Implementing rooftop rainwater harvesting has
Sustainable Water Management Project
Case study communities. We under Health and well-being
(SUJAL), Alwar
greatly decreased the involvement of children
initiative conducted awareness programs in 380 almost by 78% in the task of fetching water
Through the communities of Tamil Nadu on seasonal epidemics

such as dengue, conjunctivitis, and malaria where
As part of our commitment to Sustainable Water
Management, we launched the SUJAL project
leading to significant time savings. Annually, a
total of 47,450 hours has been saved as a direct
utilisation of a Mobile over 14,000 community members benefitted. in 11 villages of Alwar, Rajasthan. Throughout the
year, we constructed 150 roof rainwater harvesting
outcome of this intervention. As a result, each
family now has the ability to save an average of 1.5
Medical Unit, we The RTS team conducted 29 medical camps and 13
eye camps in remote communities without access
tanks, resulting in a collective water storage hours per day. This intervention had a profound
capacity of 2,261 cubic meters. This initiative has impact on alleviating the burden of water-fetching
partnered with the to affordable healthcare. The initiative benefitted
more than 5,400 members. District Medical officials
directly benefited over 2,000 individuals within the and improving the overall quality of life for the
community.
German Leprosy along with project associates of social development
created awareness of enrolment camps for
Research Association Individuals with Learning disabilities. More than
160 students were able to receive differently abled
to conduct certificates through this initiative.
PIPE-SPRINKLER
health screening
Diabetes research for Children
Physical Progress SYSTEM VILLAGE POND
from Feb’20 to
and awareness
March’ 23 105 hectare 04
programmes in
Namakkal. As a result
of this initiative, over COMMUNITY
TOILETS
4,000 drivers were PIPELINE SUPPORT RRWHS
able to benefit from 28,873 m 265 21

the services provided.
MINI-SPRINKLER SYSTEM BOREWELL /

TUBEWELL RRWHS
45.80 Acre 47 365

Strengthening Supplier Relationship sustainability-related risks. Many of them are Partnering with New Suppliers • O
ur commitment to continuous improvement
suppliers to Indian Auto OEMs and global suppliers. is evident with a substantial 9.6DPU reduction
Our suppliers are essential to our operations and During the reporting year, there were no negative At Ashok Leyland, it is of utmost priority to addressing the ALVES issues.
play a vital role in every stage of production, from impacts on the supply chain in Ashok Leyland. consistently improve the quality and delivery
sourcing raw materials to delivering finished processes in the organisation. We monitor and • A
n impressive weight reduction of 5Kgs
products to our customers. We have established Moreover, a Strategic Sourcing Council was establish key performance indicators (KPIs) achieved for A4 engine crankshaft
a sourcing vision to create a reliable and efficient formed in FY 2020-21 to create integration across annually for our suppliers. The additional
functions and stay ahead of the curve. It is critical • O
ptimised logistics operations by directly
supply chain that prioritises our customers and KPIs include cost saving, inventory accuracy,
to identify strategic opportunities that deliver supplying axle beams to Alwar and implemented
enhances our supplier relationships. Our supply improvements in lead time, number of reportable
significant value and to set up adequate structures a movement strategy for Bogie Brackets saving
system is bifurcated based on commodity domains accidents, and more. We ensure that our new
to gain a competitive advantage. The Council us 230 Litres of diesel per craftsman automation
to cater to the vehicle production requirements suppliers abide by social and environmental
helps us sustain our relationships with our large trip to AL Pantnagar.
– Castings, Forgings and Bar Machining, Sheet norms, and we also set processes to keep an active
metal, Non metal, Steel and Proprietary domains. suppliers and strengthen our valuable processes check on them. New suppliers are screened for • T
he Authentication of Supplier Quality reports
Our supply chain management team focuses on such as pricing, vendor capex, and new product environmental and social parameters. Various saw a verification of 11,367 reports.
supplier capabilities, performance improvement, development along with others. The Council's such improvements were implemented whilst
cost competitiveness, import indigenisation, scope is to formulate frameworks for the Sourcing partnering with suppliers. • O
ur 4M change management audit
local sourcing, capacity addition, technology Policy, Governance, and Technology Roadmaps, encompassed 75 suppliers, highlighting our
partnerships, digital solutions, integration, and ensuring effective and efficient sourcing practices dedication to improvement and excellence.
Key highlights:
supplier relationship management. Additionally, throughout the organisation.
• P
ercentage Suppliers < 50 ppm KPI was
our team places emphasis on environmental • 9
7% effectiveness achieved in Production Part
Strategies are created keeping in mind the improved from 55% to 65%, to ensure continuous
and social criteria, aligning our practices with approval process for bulk approval.
changes in the Modular Business Programme and improvements of supplier process robustness
sustainable principles.
the adoption of BS-VI technology. The strategy through waste elimination.
We comply with all environmental and social focuses on four main areas: quality, cost, delivery,
regulations set by the local authorities. At Ashok and management. A sourcing and supply chain
Leyland, we have a large network of suppliers, dashboard is maintained to track progress on
Percentage of suppliers <50 PPM
and we encourage them to adopt the same procurement practices and human rights. By
sustainability standards that we practice in analysing the data, we can identify areas for
our organisation. We prioritise environmental improvement and take appropriate actions to drive
and social risk parameters and have formal future growth and success.
mechanisms in place to monitor and track our
We intend to map the value chain emissions arising
performance. We have identified critical suppliers
from the suppliers towards creating the glide
in our organisation and categorised them as
path towards Net Zero through carbon footprint
strategic partners. These strategic partners are
58.2
53.0
59.9
62.3
62.7
62.7
63.2
52.5
55.2
53.5
61.2
51.9
63.1
53.1
65
reduction plan and utlisation of low carbon raw
up to date with our systems, governance, and
material such as Green Steel.
technology processes and they comply with FY22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Ocu-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 FY23 FY23
Actual Actual Target
Actual Target
Quality Cost Delivery Management

Upgrading Value Analysis Speedy Engaging with
Suppliers and Value Engineering Development New Technology
Facilities (VAVE) Initiatives using new Suppliers
Technologies
Implementation Competitive Price
of New Packaging Management of Strategic
Standards Commodities Inventory

New suppliers are assessed as per the Plan-Do- Safeguarding Supplier Quality As we strive to achieve a position in the Global Top Medium and Heavy Commercial Vehicle
Check-Act cycle to ensure compliance with our 10 in the commercial vehicle industry, our focus in (M&HCV) segment since the introduction of BS-
standards. 100% of our new suppliers go through Our engagement with suppliers is continuous the fiscal year 2022-23 was primarily on improving VI standards. Medium and Heavy Commercial
a screening process that is based on Supplier and spans from the initial stages of collaboration the performance of each supplier. We specifically Vehicle (M&HCV) is planned to benchmark with
evaluation checklist which also has some of the to the final product readiness. We recognise that addressed potential failure modes and worked on the Car Quality which is the first of its kind in the
environmental and social parameters. In FY 2022- process capability plays a crucial role in ensuring enhancing the fit, finish, and aesthetics of the parts commercial vehicle industry.
23, during the new supplier induction, there have the quality and reliability of our suppliers' products. to ensure better quality.
been no negative impacts observed in the supply To monitor and assess their processes and product In ALVES, there are 18 evaluation categories
chain. Furthermore, they are evaluated on other quality, we have implemented digital monitoring At Ashok Leyland, we conduct two audits, namely comprising static and dynamic with specific
criteria in terms of economic performance such as systems. These systems encompass the production the Ashok Leyland Vehicle Evaluation Standard standards. Monthly evaluations are conducted for
manufacturing capability, delivery performance, part approval process, production part quality (ALVES) and the Ashok Leyland Manufacturing various parameters including fit and finish, NVH
management culture and governance, management, and a 4M (manpower, machinery, Process Evaluation System (ALMPES). The details of (Noise, Vibration, and Harshness), shower checks,
environment management, labour practice, legal materials, and methods) change management these audits are provided below: aesthetics, electrical and electronics, dynamic
compliance, occupational health and safety, and system. performance, functionality, and driver ergonomics.
I. A
LVES is a product audit that assesses the The audit results are measured in terms of Defects
process capability. outgoing product quality by benchmarking
We have established a Supplier Quality per Unit (DPU) and are regularly monitored and
Improvement Cell as an institutionalised entity against global standards. It has been reviewed for continuous improvement. There are
Supplier Selection responsible for validating the quality of the parts. implemented in the Light Commercial Vehicle different classes defined by the severity changing
To ensure continuous quality assurance, we have (LCV) segment since its launch and in the based on the location of the defects.
We have adopted a formal system to conduct our
implemented self-part revalidation processes.
supplier selection process. This process includes
Furthermore, we closely monitor supplier Process
an onboarding exercise that is organised for all
Failure Mode Effect Analysis (PFMEA), supplier
our new suppliers. This helps us understand the
firewall defect control, and parts process capability.
existing processes and practices of our suppliers
Furthermore, we have established critical quality
and enables us to rate them as per our matrix. This
parameters for our suppliers and conduct audits
enables us to assess vendors and select suitable
to monitor their progress. In the fiscal year 2022-
partners to collaborate with them.
23, we completed 75 4M Supplier audits that were
We have a total production vendor code count of previously identified.
1,049 with a total business spend of INR 26,500 Crore.
To effectively manage our suppliers, we have
Out of this we have 52 MSME vendors with MSME
implemented a structured quality management
certification (production vendors) with a business
system that covers various stages which are
spend of INR 71 Crore. We have 550 small vendors
mentioned below. These requirements are
who make less than INR 5 Crores turnover and the
documented and communicated to our supplier
cumulative spend is INR 751 Crores. The percentage
partners through a Supplier Quality Manual.
of input material parts sources from 550 small
MSME’s is currently 2.8%. Additionally, the percentage
input material sourced from 52 MSME is 0.26%
LCV M & HCV Fully Built Bus

New Part Development Existing Parts
Supplier Selection
and Approval Management
ALVES has also been extended global scale. Concerns identified

to Fully Built Buses at VBCL and through ALVES are stratified,
GTVS, as well as to SWITCH EV and separate teams are assigned
buses. to work on reducing DPU. In
FY 2022-23, we completed 264
Continuous Performance Improvements The improvements derived manufacturing quality-related
Management from ALVES have enabled us improvements.
to compete with products on a

II. A
LMPES, which stands for Ashok Leyland ALMPES Audit Vs Improvements
Manufacturing Process Evaluation System, is a Completed
methodology used to evaluate manufacturing
processes in line with our vision to create
6,401
5,609
products of global standards. Introduced in
the fiscal year 2019-20, ALMPES has been
3,563
2,954
implemented across all our plants and
2,295
subsidiaries, leading to significant process
1,023
improvements and enhanced product reliability.
During FY 2022-23, ALMPES got registered
under copyright, this will further enable us to FY 2021 FY 2022 FY 2023
deploy this concept to our vendors and other
stakeholders. We have also developed digital Total Audit Total Improvements
ALMPES (in both SAP and Android) which
will help us to improve the efficiency and
effectiveness of the complete system. Assessment of Suppliers
ALMPES assesses manufacturing capabilities based We conduct two primary types of audits: Supplier
on five pillars: Evaluation Audit (SEA) and Surveillance audit. The
SEA is an annual scorecard-based audit conducted We assess our suppliers not only on their economic programmes such as the Supplier Summit and the
• P1 – Personnel for all our suppliers to ensure their compliance with performance but also on their environmental Strategic Partners Meet. Additionally, we conduct
• P2 - Process/Method relevant rules and regulations. and social impacts. Parameters considered need-based interactions with the middle and
• P3 – Materials
include adherence to ISO 14001 requirements, top management of our supplier organisations.
• P4 - Tools and Equipment Suppliers are evaluated and rated on a platinum
implementation of grievance mechanisms Through these initiatives, we aim to strengthen
• P5 - Continual Improvement. or gold scale based on their scores in the SEA.
for employees and customers, CSR activities, our bond with suppliers and inspire them to
Suppliers achieving a score of 85% and above
Each pillar is evaluated using defined check responsible disposal of hazardous waste, and continually improve their performance. We
are awarded a platinum status, while those
parameters and checkpoints. There are three prevention of child labor, among others. We also prioritise providing effective grievance redressal
scoring between 70-84% receive a gold status.
cycles of audits completed annually. To ensure ensure fair treatment of our suppliers' employees mechanisms, keeping suppliers informed about
Platinum suppliers are assessed every two years,
effective implementation, we trained a total of by incorporating clauses in our General Purchase the latest developments, and actively seeking their
while gold-rated suppliers receive guidance for
136 auditors to conduct ALMPES audits across Agreement (GPA) related to collective bargaining feedback.
process improvements. In the fiscal year 2022-23,
our operations. Over the course of the reporting rights, freedom of association, training, and
we conducted 75 4M audits, 141 supplier system In FY 2022-23, we conducted an annual Supplier
period, we completed 14,964 audits across our development, and equal remuneration. The GPA,
audits for the existing suppliers and 10 audits were Satisfaction survey, which involved 149 of our high-
plants, resulting in the implementation of 6,881 signed with the supplier, includes the supplier's
done for onboarding new suppliers. No breaches value suppliers. Based on the valuable feedback
process improvements. The implementation of Code of Conduct.
related to legal compliance or human rights were received, appropriate actions were initiated to
ALMPES has played a crucial role in enhancing our reported. However, health and safety practices and We ensure that the audited suppliers adhere to address any concerns or areas for improvement.
manufacturing processes and ensuring that our working conditions of value chain partners were these practices and have committed to improving We are pleased to report that the Supplier
products meet global standards. not assessed during this period. their existing systems. Additionally, all our suppliers Satisfaction score for FY 2022-23 reached an
are ISO 9001:2015 certified. Through surveillance impressive 99%.
audits, we identify critical suppliers who contribute
approximately 80% of our growth. These strategic By nurturing open and transparent
Trained Auditors Plant Wise partners play a significant role in areas such communication channels and actively engaging
as technological leadership, business volume, with our suppliers, we strive to foster strong
critical facilities, innovations, and compliance with partnerships that drive mutual growth and success.
regulatory requirements. We conducted an ESG survey with suppliers in
understanding the baseline with participation
from 398 suppliers with 91.8% of overall buy value
Enriching Supplier Engagement responded. The survey was sent to 408 suppliers
36 out of which responses were received from
At Ashok Leyland, we recognise the importance
22 18 19 of cultivating strong and enduring relationships 398 Suppliers. 97% of our value chain partners
11 7 participated in the ESG survey and 144 suppliers
4 5 6 5 with our suppliers and working together to
4
achieve mutual success. To facilitate effective have been selected for the ESG drive. By focusing
Alwar Bhandara Ennore Hosur-1 Hosur-2 Hosur-3 PNR-3 HF- HF- VBCL FBVS Total
SPU-3 Ennore communication and collaboration, we have on these 144 suppliers, we aim to bring about
implemented various channels, including approximately 60 – 70% of CO2 reduction in the AL
Trained Auditors Total Auditors supplier ecosystem.

100 100 Enhancing the Product Lifecycle approach. This includes systematic monitoring of
key performance indicators (KPIs) and conducting
67 In line with the commitment to improving product management reviews to drive continuous
66
61 quality, Ashok Leyland engages with suppliers improvement. Through these initiatives and a focus
at various levels and implements processes to on collaboration and continuous improvement,
31
27 ensure that the quality of the products meets the Ashok Leyland strives to deliver high-quality
18 21 19
requirements. Several programmes have been products to customers and enhance the longevity
implemented to enhance the product lifecycle with of its products.
Release Release & Measure Have set Use Measure Practice Practice Monitor No Forced, the following objectives:
Annual Sustainability CO2 & energy renewable water Diversity, Community occupational Bonded,
Report Report Green Productivity energy usage Eguity dvlpt & health and Child Labour
house Tgt and initiatives - safety working 1 Standardising processes at the suppliers' end: Measures to Avoid Risk in the Supply
gases Inclusion CSR
Ashok Leyland works closely with suppliers Chain
ESG survey for suppliers to standardise their processes, ensuring
To increase agility and flexibility in importing
consistency and reliability throughout the supply
raw materials and parts, Ashok Leyland has
chain.
Vital Parameters for the Supplier Survey implemented a dual-sourcing strategy. This
2 Improving capabilities of supplier systems: strategy ensures that the Company does Strategic
• Pride in Our Association
The focus is on enhancing the capabilities stocks are maintained for the remaining seven
• Honoring Our Commitment
of suppliers' systems to achieve superior parts, further mitigating dependency and reducing
• Scheduling
performance in terms of quality. This includes risks. The dual-sourcing strategy helps in foreign
• Engagement to Improve Quality
providing necessary support and guidance exchange management and minimises geographic
• Fairness in Price Settlement
to suppliers in improving their quality risks associated with relying on a single country
• Communication
management systems. for sourcing materials. By diversifying the sourcing
locations, Ashok Leyland increases its resilience to
Key initiatives Implemented in FY 2022-23 3 Periodic reviews and interventions: Regular supply disruptions and market fluctuations.
reviews and timely interventions are conducted
Ashok Leyland carried out the Strategic Partner with suppliers' top management. This helps Ashok Leyland has a formalised process to identify
Meet on 24th May 2022. Around 50 suppliers from address any quality issues proactively and potential sustainability risks in its supply chain.
MHCV, LCV, Aftermarket, and FBVS Businesses ensures continuous improvement in their Sourcing risk inputs are provided to the Enterprise
participated in the event. Targets and expectations operations. Risk Management (ERM) team, which monitors
were discussed with the suppliers on Quality, Cost, and manages these risks through ERM tools.
and Delivery. 4 Knowledge sharing: Ashok Leyland promotes The Company's ESG (Environmental, Social, and
knowledge sharing among suppliers to foster Governance) team is actively involved in identifying
The Supplier Summit was successfully conducted on 27th July 2022, where suppliers with the best a culture of continuous improvement. Best high-risk suppliers and developing roadmaps for
performance on Quality, Cost, and Delivery Metrics were awarded at the summit. practices and lessons learned are shared to drive risk mitigation.
quality enhancements across the supply chain.
The Company has also multiplied its local sourcing
The Supplier Cluster Programme is one such efforts across three manufacturing plants: Hosur
initiative aimed at improving supplier capabilities. II, Pantnagar, and Ennore. This localised sourcing
It is an extension of the Supplier Part Quality approach improves the flexibility of Ashok Leyland's
Improvement action plan and focuses on selective supply chain, reduces lead times, and enhances the
suppliers. Measures are implemented to ensure the Company's responsiveness to customer demands.
production and supply of defect-free engines to
customers. The Firewall process is another measure The digitised supply chain management at Ashok
implemented to maintain product quality. It Leyland plays a crucial role in addressing customer
involves conducting pre-delivery quality assurance requirements and overcoming supply challenges.
audits to identify and address any potential defects By leveraging digital technologies and tools, the
before the products are delivered. Company can monitor and manage its supply
chain more effectively, ensuring timely deliveries
Standardisation of processes is achieved through and optimised inventory levels.
benchmarking and cross-learning. By establishing
standardised processes across suppliers. Ashok Overall, Ashok Leyland's initiatives in dual-
Leyland ensures consistency and reliability in sourcing, sustainability risk management, localised
product quality. The methodology adopted, known sourcing, and digitised supply chain management
as "Gemba-oriented," involves monitoring quality contribute to a more resilient, flexible, and
data through best practices and taking a proactive customer-focused supply chain.

Invested INR
429.66
crores in R&D
Obtained
Product 14 patents
pertaining to R&D
Stewardship
5 New
Products
Introduced in 12
Countries

Ashok Leyland’s brand promise, “No dream is too harvesters. Innovative vehicle acceleration control and international). This constant endeavour is
far “ serves as the guiding star for our commitment logic has been implemented for economy mode propelled to achieve our organisational vision to
to sustainability. We believe that not only should operation in buses, reducing fuel consumption by become a global top 10 CV player.
dreams be limitless, but so should our responsibility 2 to 3%.
towards the environment. This promise resonates Product Development Process
through our product stewardship efforts. We are Overall, the product development team is working
dedicated to developing eco-friendly innovative towards meeting AL Values such as Agility (faster We are reaffirming our commitment to follow the
solutions that bring those dreams closer while new product development through simultaneous GenMod New Product development process. We
treading lightly on our planet. It’s not just about engineering), Innovation (Product innovations to also introduced GPPL (Global Project Priority List)
reaching destinations, it’s about getting there meet current and future needs of the organisation wherein business-critical projects are reviewed for
sustainably ensuring that no dream is ever too far such as alternate fuels options CNG/LNG/ feasibility and are inducted into the New Product
from reality. Our 75th-anniversary celebration is Electric/Hydrogen/Fuel Cell), customer centricity Introduction Process (NPI). It provides clarity to all
not just a look back at our history, it's proof of our (Collaborating with marketing/customers), functions working in this organisation on what and
unwavering commitment to shaping the future of Trust (support with each other), Partnership where to focus.
mobility. (Collaborating with Supplier partners both national
We continue to invest heavily in electric vehicles,

across our segments. We have collaborated
with Indian Institute of Technology (IIT) Madras
researchers to develop a series of hybrid electric GenMod
vehicles. They have adopted turbine technology, Technical Benchmarking,
to replace the large batteries in the main power Feasibility System-Level Component-
train to generate onboard power. During this Assessment Detailing of Level Design
financial year, we are pleased to note that we
Dr. N Saravanan introduced an improved range of MHCVs, trucks,
of the Concept and of the Product,
President & Chief Technology Officer Opportunity related DFMEA Initial Release,
and buses, and have also entered the realm of Definition Initial and Design Mule-testing,
We continue to focus on Research developing decarbonisation engine solutions. We of Market Product Validation and Prototype
Phase
Phase
Phase
Phase
and Development activities with have signed an MOU with Hindalco and our cross Opportunity Concept Planning Build Prep.
specific focus on alternative fuels, functional teams for creating light weighting
carbon emissions, fuel efficiency solutions using Aluminum load body, containers
and safety. for trucks and super structure for buses. Key
benefits of Aluminum are improved fuel efficiency,
At the Auto Expo23, a wide range profitability, payload, recycling, resale value and Vehicle
of alternate fuel driven products eventually reduced carbon footprint. BS-VI OBD Validate Launch, Critical
were introduced covering CNG, LNG, II has been implemented on all Light commercial Production
Complete Physical Design verification Field Issue
Phase 5A and 5B
Hydrogen, Fuel Cell and Battery (LCV), and Medium Duty Vehicle (MDV) vehicles process in
and Performance Validation Resolution, and
Electric options. as part of regulatory requirements for stringent the plant and Project Perf,
norms and on-board diagnostics, and real driving Conduct Prototype Validation And prepare for and Lessons
Phase
Phase
emission monitoring. CEV4 was implemented Homologation Testing and Certification launch Learned Report
for our forklifts, cranes, backhoe loaders, soil
compactors, wheel loaders, and road pavers,
and term-4 Regulation Emission Norms were
implemented in all our agriculture machines like

Our Product Portfolio This Year
AUTO EXPO 2023 FUEL CELL ELECTRIC
VEHICLE
The Auto Expo 2023 was themed around Our Airborne Video Tape Recorder (AVTR)
alternative fuel vehicles, and we displayed platform modularity extended to LNG, Hydrogen is used to
our future mobility options with a range Hydrogen internal combustion, and Fuel power fuel-cell electric
of models powered by CNG, LNG, Electric, cell technology were vehicles that attracted trucks. The fuel cell
Hydrogen, and Fuel cells. visitors during the event. uses hydrogen and
atmospheric oxygen to
generate electricity, which
powers the vehicle’s motor
and power electronics.
This vehicle can run on a
The products
lithium-ion battery that
showcased at the
can be charged externally.
Auto Expo 2023
This vehicle has a leak
were:
detection device to ensure
maximum safety.
BATTERY ELECTRIC VEHICLE

The Company’s first upcoming model is HYDROGEN INTERNAL
the BOSS Battery Electric Vehicle (BEV), COMBUSTION
which was on display. The Boss electric VEHICLE
truck is the Company’s second version of
A clean energy source
the Boss electric commercial vehicle and
powers the Hydrogen
marks its entry into the fast-growing electric
Internal Combustion Engine
vehicle market. The older version of Boss
Vehicle. It is very similar
was launched in October 2020. An electric
to conventional internal
truck is available for city transit and last-
combustion engine vehicles
mile delivery. It can deliver packages, white
and uses hydrogen. Ashok
goods, and perishable agricultural products,
Leyland Internal Combustion
thanks to its lithium-ion battery technology
Engine have been modified
and high-performance electric motor. In
to run on hydrogen with only
addition to having a greater range, it also
a few minor adjustments.
boasts features such as a lightweight load
For increased vehicle on-
body structure (Aluminium), quick charging,
road safety, the truck also
a bigger payload, and low downtime. The
has an Advanced Driver Advanced Driver Assistance Systems are
BOSS BEV is designed to be effective and
Assistance System (ADAS). technological features specially designed to
environmentally sustainable.
ensure drivers’ safety while driving a vehicle.

INTERCITY CNG BUS
A 13.5m-long bus CNG-powered
intercity platform was also on
display. The bus has a modern and
conceptual design; it can deliver
up to 1,000 kilometers range
with a single fuel fill. This bus can
accommodate 36 beds and offers
luggage storage of up to 11 cubic
meters.
LIQUEFIED NATURAL GAS TRUCK

A unique dual-fuel vehicle that can run on gas is supercooled and stored cryogenically
both Liquefied natural gas (LNG) as well as in liquid form. The dual-fuel truck will meet
Compressed Natural Gas (CNG). It uses a spark the long-range requirements of heavy-duty
ignition internal combustion engine. The trucks.
A Mini Passenger Bus

This passenger vehicle is based
on the Bada Dost platform
and has an AC and a vehicle
tracking device as options. It
can accommodate up to 12
passengers in a 2-1 configuration
The country's first 100% methanol-powered prototype truck flagged off in Bengaluru
and runs on CNG fuel.
by Shri Nitin Gadkari in March’23.
Ashok Leyland flagged off BMTC Buses with Along with the blended methanol trials,
Blended Methanol of 15% (MD15) on five Ashok Leyland flagged off India’s first M100
vehicles. Blending 15% methanol in Diesel can (100% Methanol) Ecomet Truck (10T). We
result in at least a 15% reduction in the import demonstrated a Working prototype to get
of crude oil. In addition, this would bring down further funding for going into detailed
emissions by 20%, thereby improving urban development.
air quality.

Trucks launched
We created and released products this financial
year that made use of cutting-edge technologies
and operational changes to give our clients a more
comprehensive set of features.
Engine Adding value, the model comes with a

Ecomet 11T CNG TC
solutions The truck is powered by a 144 HP turbocharged
complimentary first-year free iALERT subscription.
The platform comes with an assurance of a 4Y
engine which delivers a superior pick-up & KM-KG driver line warranty with coverage for up to 4L km.
Hydrogen IC Engine performance. CNG Cylinder capacity ranging from
Development 360L to 480L, enables best-in-class single-fill range
New AVTR 4220 and AVTR 4420 – 4x2
aiding faster turnaround time and seamless driving
Hydrogen Engine Testing Infrastructure Tractors
experience.
was Developed in Hosur and the facility
was approved by PESO (Petroleum and AVTR 4220 with 41.5T GCW and AVTR 4420 with
Explosive Safety Organisation) Key features and advantages 43.5T GCW in the 4×2 Tractor segment. With this
launch, Ashok Leyland became the first Indian
1. H
6-2V 5.7L Retrofit: 1 Mule & 23 Proto The ecomet STAR 1115 boasts H series CNG OEM (Original Equipment Manufacturer) to offer
Vehicles handed over to Reliance Turbocharged engines with 106kW (144HP) & 450 tractors with 41.5T and 43.5T GCW in two-axle
Industries for pilot field trials Nm torque, Superior KM-KG performance, multiple configurations.
cylinder options, various load span choices, slow
2. H
6-2V 6.0L BS VI: Engine & Vehicle and fast filling nozzles, a new digital dashboard
Displayed in Auto Expo with advanced driver and heavy-duty components
Ecomet STAR 1815 with 17.5T GVW
for heightened durability. The cabin is spacious,
Benefits: The truck has best-in-class payload capacity and sturdy, and equipped with state-of-the-art features.
delivers superior mileage. This product is targeted It offers advanced telematics through i ALERT
This will bring zero carbon emissions at long-haul customers seeking higher payload with and enables remote diagnostics. Additionally,
into the environment. Improved Total the 4-cylinder engine for faster turnaround time. 24*7 customer assistance is available through
Cost of Ownership to the customer by the Uptime Solution Centre. These CNG vehicles
about 20%. Reducing fuel import costs reduce pollution levels and thus are better for the
Key Features:
by a significant amount. environment.
This truck gives a best-in-class Payload of 11.74T
(20ft HSD) with superior Kmpl. This is powered by Partner Super 9T-11T
H Series engines with 150Hp and 450 Nm torque.
The body is made of high-strength steel. Keeping Launched a new ICV Platform, “Partner Super” with
in mind the advanced digital solution, the digital 914, 1014 & 1114 models in the 9.15T, 10.25T, and 11.28T
dashboard with ADDA (Advanced Digital Driver GVW categories respectively.
Assist) is provided which will be of great help to the
Key features and advantages of the Salient features of this new truck range:
drivers.
Partner Super platform:
Our offering features a Proven H6 Engine – a
Contemporary tilt-able Day cabin, best-in-class 6-cylinder engine with i-Gen6 technology, GCW
payload, and mileage, Best-in-class power (104 kW options of 41.5T and 43.5T with a suitable 2-axle
(140 hp)), and Loading span options – 4.3m (14 ft), trailer. It has Higher fluid efficiency and lower DEF
5.2m (17 ft), 6.2m (20 ft), and 6.8m (22 ft) consumption and is optimised for Indian operating

Patent Approved
conditions. It is available in multiple Cabin Options Advanced Engineering Activities:
– Cowl, M Cabin, U Cabin, and N Cabin (Sleeper
Cabins). We have established the advanced engineering
function within product development which will
focus on new and future technology areas such
as advanced driver Assistance Systems (ADAS),
Fuel cell electric vehicles, advanced materials,
product safety, In-house electronic control systems
development, etc.
House Technology under development

a. W
e filed for a patent during this reporting period
untiring long drive has been incorporated. These for the Development of a Radiator and Compact
features reduce driver fatigue considerably and L-shaped air induction Charge Air Cooler. The
also being CNG-driven, contributes to improved air benefits of this are that it is light in weight by
quality and reduced greenhouse gas emissions. 10% and compact.
b. W
e developed a concept for Virtual monitoring
6x4 RMC with Cargo cab of Engine Air Filter conditions in real-time by
providing live monitoring of air filters by the
Powered by an i-Gen6, H Series 200Hp Engine
customer in field vehicles. This technology will
delivering 700 Nm Flat Torque for a wider rpm
be used for optimising the air filter, planning
range, the vehicle excels in fuel economy. Its
appropriate maintenance schedules, and
6-speed ALGB 940 Fully Synchronised Gearbox
reducing unwanted downtime of the vehicles
with bigger diameter gears enhances reliability
due to air filter problems.
and durability. The Robust MT 109 Tandem driven
Single Speed Rear axles offer excellent pickup and c. T
he preliminary synthesis of a nano coolant
gradeability. The suspension design includes a has been completed with a 10% improvement
Semi-elliptical multi-leaf in front and NRS at rear in thermal conductivity. This will optimise the
ensuring ride comfort and easy maintenance. cooling system design in vehicles.
The proven and compact cargo cabin prioritises
driver comfort, and the package promises
lower operational costs and higher returns on
investment.
Viking CNG Bus Chassis with ‘H’ Series
LS/LT CNG 6-cylinder engine
Our offering features a proven H Series CNG engine Our offering features a proven H – Series 6 Cylinder
powered with 106kW (144HP) and 450 Nm torque Naturally Aspirated (NA) engine with 95kW/127Hp
which is best-in-class in ICV Buses. Its integrated @ 2400rpm with max torque of 430Nm @ 1100-
filling unit comes with slow and fast filling nozzles 1400rpm ensuring robust performance. The
and safety features like- Ignition cut-off during Integrated filling panel offers slow & fast filling
CNG filling, Single CNG cut-off switch, manual options and Cable CSO (Change Speed Operation)
filling valve with Burst disc, Vent lines, high- & low- enhances gear shift control. The option of Rear Air A team from our Engine Development Center has
pressure filter, Swagelok fitting, and stainless-steel Suspension provides superior passenger comfort been awarded a patent for their innovative idea
pipes. It also has a new digital dashboard with an while diaphragm clutch with air-assisted hydraulic “Lube -Oil Active Temperature Optimiser (LATO)”.
advanced driver and heavy-duty components for actuation reduces driver fatigue. The Advance Mr. Saravana Venkatesh R, Mr. Balaji Bandaru, Mr.
heightened durability. Cable CSO (Change Speed Digital Driver Assist (ADDA) – instrument cluster Sandeep Dhar, Mr. Gokul Kumar E, Dr. Sunil Kumar
Operation) was introduced for a smooth gear- aids in identifying vehicle conditions including CNG Pandey, and Mr. Krishnan Sadagopan were the
shifting experience and an integrated pedal unit level. recipients of this Patent.
with optimised pedal effort and pedal travel for the

Representation in the GRSG session “Proof of Concept” has reached the final design
and testing phase. Subsequently, FY 2022-23, a
The Working Party on General Safety Provisions total of 293 ideas were sourced. Among them,
(GRSG) is the subsidiary body of the World Forum 142 were eliminated in the first screening round
for Harmonization of Vehicle Regulations (WP.29) and an additional 117 were eliminated in the
that prepares regulatory proposals on general second screening round. The balance of 34 ideas
safety to WP.29. The 125th GRSG session on underwent a review by a panel of jurors, including
“General safety provisions for vehicles” was held at 4 internal and 1 external member. Following this, 11
Geneva from 27th-31st Mar’23. ideas have been chosen for seed funding this year. The Team Behind Innovation Pipeline Event
Screening 1st Screening at

Idea Seeding
level Organising 2nd level
Generation 10 jurors
Commitee 32 Jurors
That year a total

of 150 ideas were
sourced, out of which
8 were seeded. Out
of these eight, three MoRTH nominated a four-member team from India
for this session of which Mr. Muthukumar from our
have successfully Regulations & Homologation was a member.
been completed. The Innovation Pipeline
“Proof of Concept” In the 75th year of our existence, as envisioned by

our Chairman and our MD we go into the future
has reached the final with the sole purpose of transforming lives and
businesses, through leadership in mobility. The
design and testing values that have been laid down to ensure we don’t
phase stray from that purpose, becomes very important

in our journey. Innovation pipeline as a company-
wide programme, becomes a vehicle for all of
us to get involved in this transformation, where
employees are encouraged to submit ideas for new
products and services. These ideas will then be
reviewed by a panel of eminent jurors to identify
promising ideas that can be incubated and taken
forward to realisation.
Innovation pipeline as a concept was envisaged

by Dr. Kanakasabapathi Subramanian and
inaugurated by our chairman in the presence of
Ashok Leyland’s Chief Technology Officer (CTO) in
the year 2021. That year a total of 150 ideas were
sourced, out of which 8 were seeded. Out of these
eight, three have successfully been completed. The

Customer Engagement against best practices in the industry. Through of 3D technology in both our marketing and reported. We have continued the Make to Order
our 750+ workshops spread around the country, manufacturing efforts. To showcase this, we (MTO) approach, enabling customers to customise
Our long-term success depends on developing we provide streamlined after-sales services to our developed a proof of concept at our subsidiary products and deliver vehicles quickly. The PRISM
novel solutions that enhance customers' lives clients and take care of the repair and maintenance Vishwas Bus and Coach Limited (VBCL), where we platform showcases a sales pipeline and confirmed
both now and in the future. Customer awareness of their vehicles. streamlined the process of creating bus prototypes MTOs, while the PRISM Maturity Index assesses
and expectations of modern businesses have using 3D modeling. This innovation enables our sales and marketing effectiveness. The LEAD
expanded because of globalisation and digital We utilise initiatives like PRISM, LEAD, SELECT, customers to virtually explore and personalise bus platform utilises data analytics to drive decision-
connectedness. These factors have encouraged and iALERT to strengthen strategic relationships designs, eliminating the need for multiple physical making.
our sector to focus more on the needs of the client, with our customer base through sales, marketing prototypes. This approach allows our customers to
combined with rising competition. Customers' processes, and after-sales service. The 'Practical provide digital approvals for designs. The SELECT platform focuses on strategic
preferences for safer, more technologically Improvement in Sales and Marketing' (PRISM) connections, trust, and customer loyalty, offering
advanced automobiles are continuing to change, in tool focuses on marketing-related matters, We are also exploring options to implement a 3D priority services, awards, and privileges. SELECT
part due to regulations that encourage the use of standardising sales processes, and building people experience for our customers enabling them to customers are distinguished based on long-term
fuel-efficient vehicles and in part due to increased capabilities. PRISM 2.0, introduced with digital select a vehicle and virtually tour a showroom. We business relationships and receive benefits like
customer knowledge and the development of technology, helps alleviate the effects of the have embraced 3D printing for rapid prototyping helpdesk support and training through Knowledge
digital technology. Our principle Koi Manzil Door dynamic business environment, enabling real-time which has significantly shortened our timelines on Wheels (KNOW) and Workshop on Wheels
Nahin reflects our unvavering commitment to access to market intelligence and sales processes. for various other projects. We are committed to (WoW).
meeting and exceeding customer expectations This results in higher sales, improved market furthering this technology for our future endeavors
coverage, better penetration, and a larger market and have established a cross-functional team to The iALERT telematics platform is available for
regardless of the distance. We actively listen to our
share. The application features a built-in vehicle delve into additive manufacturing, building upon customers, dealers, and Ashok Leyland dealers and
customers, conduct in-depth market research to
configurator to assist customers in selecting a the concept of rapid prototyping. The Customer users. This platform allows customers to monitor
comprehend how consumers are changing, adapt
vehicle based on their requirements and intended Value Proposition (CVP) module helps customers their vehicles in real-time, send regular alerts, and
our products and services to their unique needs,
usage. The PRISM 2.0 platform includes three make informed decisions by comparing Ashok keep them informed about their vehicle's health.
and strive to bring their aspirations to reality.
dedicated sub-platforms: Dealer Sales Executive Leyland's features with competitors' models With over 1.6 lakh iALERT-fitted vehicles, the
Since the year 2015, we have been conducting (DSE), Dealer Sales Manager (DSM), and Ashok across various vehicle aspects. By providing a platform also facilitates infant error analysis.
biannual dealer sales and aftersales satisfaction Leyland Sales Manager (ALSM). With 331 active comprehensive overview of our vehicles and Additionally, it provides automated dashboards
evaluations for M&HCV clients. These studies aid models and 970 possible combinations, Ashok highlighting their unique selling points, the CVP for vehicle errors occurring within the first 1,000
us in better understanding customer expectations Leyland continues to adapt to evolving market module empowers customers to evaluate their kilometers, leading to a decrease in design-to-
for dealers' sales and after-sales services across requirements and preferences. options and choose the vehicle that best meets market time. Furthermore, the platform allows
the M&HCV vehicle range. It also helps us in the their specific requirements. In FY 2022-23, no cases
Ashok Leyland is actively incorporating digital for the simulation of accelerated driving and load
identification of both strengths and weaknesses of non-compliance with regard to regulations
technologies throughout our value chain. One patterns in a laboratory setting, eliminating the
to guide action planning for various modules and or voluntary codes concerning the health and
of our initiatives involves the incorporation need for on-road trials.
benchmarking our sales and service offerings safety impacts of products and services were
Digital twin in VBCL body building

LEYKART
LeyKart is a digital initiative
launched by Ashok Leyland
to help users buy spare parts
online. With hundreds of models,
thousands of variants, and
millions of components in the
We offer a comprehensive after-sales service, market, finding the right part
including a 24*7 call center, website, and social can be a daunting task for our
media, to address customer queries and opinions. customers. Leykart aims to be a
A dedicated complaint management system game changer in empowering
monitors and resolves complaints efficiently. our customers to find the right
part at any time from anywhere
No complaints have been received regarding – all from the convenience of
customer privacy breaches, data privacy violations, the ubiquitous mobile device.
or incidents of theft or loss of customer data Leykart is an end-to-end solution
during the current financial year. Additionally, no for our customer’s aftermarket
complaints were reported on violations of product-
To sustain this, based compliances pertaining to labeling and
needs which assures the
identification and availability of
advertisements during this financial year.
Ashok Leyland genuine Ashok Leyland Parts
and is an e-commerce platform
Ashok Leyland vehicles are designed for reliability
has enabled easy and performance levels that have reshaped the
for fulfilment as well.
commercial vehicle industry. To sustain this, Ashok

access to the entire Leyland has enabled easy access to the entire
Behind the home screen of
Leykart is an intricate algorithm
catalog of 90,000+ catalog of 90,000+ spares, under two distinct

alternatives – LEYPARTS ® and VALUEPARTS.
that links an extensive database
of Model Numbers, Chassis
spares, under two With a network of 900+ dealers and 10,000+
numbers, Registration details,
and Parts. This guides the user
distinct alternatives retailers across the nation, customers are never far
away from the parts and services that will get their
through an intuitive search
experience to zoom in on the
– LEYPARTS ® and trucks back on the road. Our TOC-based efficient
supply chain also ensures that our customers get
exact part. The Leykart algorithm
considers the customer’s
VALUEPARTS. the right part at the right time. Ashok Leyland also
engages with 40,000+ partner mechanics through
geolocation to identify the
mode of fulfilvment at the
an industry-leading loyalty programme. Our
earliest. In the rare instance
strategically placed warehouses in Hosur, Indore,
of the part unavailability in
Alwar, & Guwahati ensure seamless availability
the vicinity, Ashok Leyland
of parts for its dealers distributors, and retailers
warehouses come to the rescue
nationwide.
to ensure 100% fulfilment
within the specified lead time.
Over the years, Leyparts® has
strengthened its presence in the
international markets.

Annexure

Independent Assurance Statement interviewees and interviewed those with overall responsibility to deliver the Company’s sustainability
objectives.
 Sample based assessment of site-level sustainability performance data through on-site audits at
Introduction
DNV Business Assurance India Private Limited (‘DNV’), has been commissioned by Ashok Leyland Limited manufacturing facility at Hosur “2” (Tamil Nadu), Foundry at Ennore (Tamil Nadu) & Technical Centre
(Corporate Identity Number L34101TN1948PLC000105, hereafter referred to as ‘Ashok Leyland’ or ‘the at Chennai (Tamil Nadu) and Corporate Office at Chennai (Tamil Nadu) to review processes and
Company’) to undertake an independent assurance of the Company’s Sustainability Report 2022-23 in its systems for preparing the data and implementation of sustainability strategy. We were free to choose
printed format (‘the Report’) for the financial year ending 31st March 2023. The sustainability disclosures in this sites for conducting our assessment.
Report have been prepared by Ashok Leyland based on the material topics identified by them in reference with  Reviewed the process of reporting on Organizational Profile, Strategy, Ethics and Integrity,
the Global Reporting Initiative (GRI) Sustainability Reporting Standards 2021 (‘GRI Standards’). The intended Governance, Stakeholder Engagement and Reporting Practices based on GRI 2: General Disclosures
user of this assurance statement is the Management of Ashok Leyland (‘the Management’). Our assurance 2021.
engagement was planned and carried out during April 2023 – September 2023.  Reviewed the performance disclosure of identified material topics and related GRI Standards; that is,
carried out an assessment of the processes for gathering and consolidating performance data related to
Responsibilities of the Management of Ashok Leyland and of the Assurance Provider identified material topics and, for a sample, checked the processes of data consolidation to assess the
The Management of the Company has the sole responsibility for the preparation of the Report and are Reliability and Accuracy of performance disclosures reported based on GRI’s topic-specific Standards.
responsible for all information disclosed in the Report as well as the processes for collecting, analyzing and  Verification of the data consolidation of reported performance disclosures in context to the Principle of
reporting the information presented in the Report. Ashok Leyland is also responsible for ensuring the Completeness as per VeriSustain for a limited level of verification.
maintenance and integrity of its website and any referenced disclosures on sustainability performance. In
Opinion
performing this assurance work, DNV’s responsibility is to the Management of the Company; however, this
Based on the verification undertaken, nothing has come to our attention to suggest that the Report does not
statement represents our independent opinion and is intended to inform the outcome of the assurance to the
properly adhere to the GRI Standards 2021, including GRI 2: General Disclosures 2021, GRI 3-3: Management
stakeholders of Ashok Leyland.
of Material topics and disclosures related to the following GRI Standards which have been chosen by Ashok
We provide a range of other services to the Company, none of which in our opinion, constitute a conflict of Leyland to bring out its performance against a set of identified material topics:
interest with this assurance work. Our assurance engagements are based on the assumption that the data and - GRI 201: Economic performance 2016 – 201-1.
information provided by the Company to us as part of our review have been provided in good faith and are free - GRI 203: Indirect economic impact 2016 – 203-1.
from misstatements. - GRI 301: Material 2016 – 301-1.
- GRI 302: Energy 2016 – 302-1.
Scope, Boundary and Limitations - GRI 303: Water and Effluents 2018 – 303-1, 303-2.
The reporting scope and boundary encompasses environmental, social and governance performance of Ashok - GRI 305: Emissions 2016 – 305-1, 305-2, 305-3 (Partial disclosure)2, 305-4, 305-5.
Leyland operations in India that fall under the direct control of the company and as brought out in the Report in - GRI 306: Waste 2020 – 306-1, 306-2.
the section ‘About this Report’ for the activities undertaken by the Company during the financial year 1 st April - GRI 308: Supplier Environmental Assessment 2016 – 308-1.
2022 – 31st March 2023. - GRI 403: Occupational Health and Safety 2018 – 403-1, 403-2.
- GRI 404: Training and Education 2016 – 404-1.
We performed a limited level of assurance based on our assurance methodology VeriSustainTM1. The assurance - GRI 406: Non-discrimination 2016 – 406-1.
engagement considers an uncertainty of ±5% based on materiality threshold for estimation/measurement - GRI 407: Freedom of Association and Collective Bargaining 2016 – 407-1.
errors and omissions. We did not engage with any external stakeholders as part of this assurance engagement. - GRI 414: Supplier Social Assessment 2016: 414-1.
- GRI 416: Customer Health and Safety 2016 – 416-1.
During the assurance process, we did not come across limitations to the scope of the agreed assurance
engagement. The reported data on economic performance, expenditure towards Corporate Social Responsibility 2 Ashok Leyland has disclosed Scope 3 emissions under 5 categories out of 15 categories (as listed in the GHG protocol). For further
details, please refer the management report.
(CSR) activities, and other financial data are based on audited financial statements issued by the Company’s
statutory auditors which is subject to a separate audit process. We were not involved in the review of financial
Observations
information within the Report.
Without affecting our assurance opinion, we provide the following observations against the principles of
VeriSustain:
Basis of our Opinion
As part of the assurance process, a multi-disciplinary team of sustainability specialists performed assurance
Materiality
work for selected sample sites of Ashok Leyland. We adopted a risk-based approach, that is, we concentrated
The process of determining the issues that is most relevant to an organization and its stakeholders.
our assurance efforts on the issues of high material relevance to the Company’s business and its key
The Report explains out the materiality assessment process carried out by the Company which has considered
stakeholders. We carried out the following activities:
concerns of internal and external stakeholders, and inputs from peers and the industry, as well as issues of
 Reviewed the approach to stakeholder engagement and materiality determination process and its
relevance in terms of impact for Ashok Leyland’s business. The list of topics has been prioritized, reviewed and
outcomes as brought out in the Report.
validated, and The Company has indicated that there is no significant change in material topics from the previous
 Interviews with selected senior managers responsible for management of sustainability issues and
reporting period.
review of selected evidence to support topics disclosed in the Report. We were free to choose
Nothing has come to our attention to suggest that the Report does not meet the requirements related
to the Principle of Materiality.
1
The VeriSustain protocol is based on the principles of various assurance standards including International Standard on Assurance
Engagements 3000 (ISAE 3000) Revised (Assurance Engagements other than Audits or Reviews of Historical Financial Information) and
the GRI Principles for Defining Report Content and Quality, international best practices in verification and our professional experience;
and is available on request from www.dnv.com
Project No: PRJN-504290 Page 1 of 4 Project No: PRJN-504290 Page 2 of 4

Stakeholder Inclusiveness Statement of Competence and Independence
The participation of stakeholders in developing and achieving an accountable and strategic response to DNV applies its own management standards and compliance policies for quality control, in accordance with ISO
Sustainability. IEC 17021:2015 - Conformity Assessment Requirements for bodies providing audit and certification of
The Report brings out the stakeholders who have been identified as significant to Ashok Leyland, as well as the management systems, and accordingly maintains a comprehensive system of quality control including
modes of engagement established by the Company to interact with these stakeholder groups. The key topics of documented policies and procedures regarding compliance with ethical requirements, professional standards and
concern and needs of each stakeholder group which have been identified through these channels of engagement applicable legal and regulatory requirements.
are further brought out in the Report.
Nothing has come to our attention to suggest that the Report does not meet the requirements related We have complied with the DNV Code of Conduct2 during the assurance engagement and maintain independence
to the Principle of Stakeholder Inclusiveness. as required by relevant ethical requirements relevant ethical requirements including the ISAE 3000 (Revised)
Code of Ethics. This engagement work was carried out by an independent team of sustainability assurance
Responsiveness professionals. DNV was not involved in the preparation of any statements or data included in the Report except
The extent to which an organization responds to stakeholder issues. for this Assurance Statement and Management Report. DNV maintains complete impartiality toward stakeholders
The Report articulates the Company’s responses to the stakeholder engagement processes carried out by the interviewed during the assurance process.
Company, as well as the approaches and performance related to identified material topics through GRI topic-
specific Standards. The Company has further linked its material topics to its overall strategies, management For DNV Business Assurance India Private Limited
approach and goal setting processes, as well as future challenges of the healthcare business.
Karthik Digitally signed Digitally signed Kakarapart Digitally signed by
Nothing has come to our attention to believe that the Report does not meet the requirements related
Ramaswa
by Karthik
Sharma by Sharma, Kakaraparthi,
to the Principle of Responsiveness. Ramaswamy Anjana hi, Venkata Venkata Raman
Reliability my
Date: 2023.09.28
14:29:55 +05'30'
, Anjana Date: 2023.09.28
17:21:08 +05'30' Raman
Date: 2023.09.29
06:29:13 +05'30'
The accuracy and comparability of information presented in the report, as well as the quality of underlying data Karthik Ramaswamy Anjana Sharma Venkata Raman Kakaraparthi
management systems. Lead Verifier, Head – Regional Sustainability Assurance Reviewer,
The Report brings out Ashok Leyland’s sustainability performance related to its identified material matters Sustainability Services, Operations, Sustainability Services,
using selected GRI topic-specific Standards. Most of the data and information verified through our DNV Business Assurance India DNV Business Assurance India DNV Business Assurance India Private
assessments at sampled operational sites and aggregated at the corporate level were found to be fairly Private Limited, India Private Limited, India Limited, India
accurate and reliable. Some of the data inaccuracies identified during the verification process were found to
be attributable to transcription, interpretation and aggregation errors and these errors have been corrected. 28 September 2023, Mumbai, India.
Nothing has come to our attention to believe that the Report does not meet the principle of Reliability
---------------------------------------------------------------------------------------------------------------------------------------
and Accuracy. DNV Business Assurance India Private Limited is part of DNV – Business Assurance, a global provider of certification, verification,
assessment and training services, helping customers to build sustainable business performance. www.dnv.com
Completeness
How much of all the information that has been identified as material to the organisation and its stakeholders is
reported?
The Report brings out the Company’s performance, strategies and approaches related to the environmental, social
and governance issues that it has identified as material for its operational locations coming under the boundary of
the report, for the chosen reporting period while applying and considering the requirements of the GRI’s Principle
of Completeness.
Nothing has come to our attention to suggest that the Report does not meet the Principle of
Completeness with respect to scope, boundary and time.
Neutrality
The extent to which a report provides a balanced account of an organization’s performance, delivered in a neutral
tone.
The Report presents Ashok Leyland’s performance during the reporting period in a neutral manner so as to
not unduly influence stakeholder opinions made on reported data and information, which includes
descriptions of significant challenges and concerns related to stakeholders and business sectors, and overall
macroeconomic environment and business outlook.
Nothing has come to our attention to suggest that the Report does not meet the requirements related
to the Principle of Neutrality.
2
The DNV Code of Conduct is available on request from www.dnv.com (https://www.dnv.com/about/in-brief/corporate-governance.html)
Project No: PRJN-504290 Project No: PRJN-504290

Page 3 of 4 Page 4 of 4

Glossary of
CFO Chief financial officer
CGB Certified Green belt
CII Confederation of Indian Industry
Abbreviations
CMVR Central Motor Vehicles Rules
CNG Compressed Natural gas
COSO Committee of Sponsoring Organisations of the Treadway Commission
CPPS Cab Panel and Press Shop

AC Air Conditioner
CRCA Cold Rolled Closed Annealed
ADAS Advance Driver Assistance System
CSI capital sum insured
ADDA Advanced Digital Driver Assist CSO Change Speed Operation
AI Artificial Intelligence CSR Corporate Social Responsibility
AL Ashok Leyland CTO Chief Technology Officer
ALCOB Ashok Leyland Corporate Building CV Commercial Vehicles
ALMPES Ashok Leyland Manufacturing Process Evaluation System CVP Customer Value Proposition
DA Dissolved Acetylene
ALPHA Ashok Leyland Hyper Automation
DC Direct current
ALSM Ashok Leyland Sales Manager
DEI Diversity, Equity and Inclusion
ALVES Ashok Leyland Vehicle Evaluation Standard
DGBR Director General of Border Roads
API Application Programming Interface
DPU Defect Per Unit
APS Advanced Problem-Solving Projects
DSE Dealer Sales Executive
ARAI Automotive Research Association of India
DSM Dealer Sales Manager
ASSOCHAM Associated Chambers of Commerce and Industry of India
DTI Driver Training Institute
AVTR Airborne Video Tape Recorder
EHS Environment Health and Safety
BEV Battery Electric Vehicle ELP Emerging Leader Programme
BLDC brushless DC motor EMS Environmental Management System
BMTC Bangalore Metropolitan Transport Corporation ERM Enterprise Risk Management
BOM Bill Of Materials ESG Environmental, Social and Governance
BPI Business Process Improvement ETP Effluent Treatment Plant
BPS Basic Problem-Solving Projects EV Electric Vehicle
BRSR Business responsibility and sustainability report FICCI Federation of Indian Chambers of Commerce and Industry
BS Bharat Stage FLN Foundational Literacy and Numeracy
CBU completely built-up units FY Financial year
CEO Chief executive officer GCC Gulf Cooperation Council
CFC Chlorofluorocarbon GCW Gross combination weight

GET Graduate Engineer Trainee KM Kilometer
GHG Green House Gases KNOW Knowledge on Wheels
GJ Giga Joules KPI Key Performance Indicators
GPA General Purchase Agreement KWH Kilo watt hours
GPPL Global Project Priority List LCV Light Commercial Vehicles
GRI Global Reporting Initiative LDI Lean Direct Injection
GRSG The Working Party on General Safety LEAD Leverage Analytics to Drive Decisions
GTVS Gross Transaction Value LEAPS Learning Enhancement and Practice
GVW Gross Vehicle Weight LEED Leadership in Energy and Environmental Design
HCV Heavy Commercial Vehicles LHD Left Hand Drive
HDPE High-density polyethylene LMV Light Motor Vehicle
HECU Hydraulic Electronic Control Unit LNG Liquefied natural gas
HIRA Hazard Identification and Risk Assessment LPG Liquid Petroleum Gas
HMV Heavy Motor Vehicles LTS Long Term Settlement
HP Horsepower MD Managing Director
HR Human Resources MDV Medium Duty Vehicle
HSD High-Speed Diesel MHCV Medium & Heavy-Duty Trucks
IATF International Automotive Task Force ML Machine Learning
IC Investment Committee MOU Memorandum of Understanding.
ICV Intermediate commercial vehicle MPAS Mission Package Application Software
IEX Indian Energy Exchange MSME Micro and small enterprises
IIT Indian Institute of Technology MT Metric Tonne
INR Indian Rupees MTO Make to Order
IO Insertion Order MW Megawatt
IPCC Intergovernmental Panel on Climate Change NCCRD National Centre for Combustion Research and Development
ISAE International Standard on Assurance Engagements 3000 NCERT National Council of Educational Research and Training
ISO International Organization for Standardization NGRBC National Guidelines on Responsible Business Conduct
ISQ Indian Society for Quality NMMS National Means cum & Merit Scholarship Scheme
IT Information Technology NPI New Product Introduction
ITC Income Tax Credit NRC Nominations and Remuneration Committee
IUCN International Union for Conservation of Nature NRS Naval Regimental system
KAM Key account manager NVG National Voluntary Guidelines on Social, Environmental and Economic
KG Kilogram NVH Noise Vibration and Harshness
KL Kiloliter OBD On-Board Diagnostics

ODS Ozone Depleting Substances TDS Total Dissolved Solids
OEM Original Equipment Manufacturer TCO Total Cost of Ownership
OHS Occupational Health and Safety TQBM Total Quality for Business Management
ORT On-road trials UN The United Nations
PCB Pollution control Board UNGC The United Nations Global Compact
PD Product Development USI
PESO Petroleum and Explosive Safety Organisation VBCL Vishwas Bus and Coach Limited
PFMEA Process Failure Mode Effect Analysis VOC Volatile Organic Compounds
PM Particulate Matter VVC Vellivoyal Chavadi
POSH Prevention of Sexual Harassment WBCSD World Business Council on Sustainable Development
PPE Personal Protective Equipment WRI World Resource Institute
PTA Parent-Teacher Association XLRI Xavier School of Management
PVC Polyvinyl Chloride YTP Young Talent Programme
QSA Qualified Security Assessor ZWL Zero Waste to Landfill

RDF Refuse-Derived Fuel
RHD Right Hand Drive
RMC Risk Management Committee
RPA Robotic Process Automation
RTL Road To Livelihood
RTO Regional Transport Office
RTS Road To School
RVSF Registered Vehicle Scrapping Facility
SAARC South Asian Association for Regional Cooperation
SCV Small Commercial Vehicle
SEA Supplier Evaluation Audit
SEBI Securities and Exchange Board of India
SEE Social, Economic and Environmental
SIAM Society of Indian Automobile Manufacturers
SPM Suspended Particulate Matter
SQF Sealed Quench Furnace
STC State Trading Corporation
STP Sewage Treatment Plant
STU State Transport Utility
TC Technology Committee

GRI Content Index
GRI
Disclosure Chapter Pg. No.
Standard
Ethical Business Practices

Role of the highest governance body in
GRI 2-14 Annual Report- Report on 66
(as per GRI 2021 Standards) sustainability reporting
Corporate Governance
Annual Report- Report on AR FY 22-23,

GRI GRI 2-15 Conflicts of interest
Disclosure Chapter Pg. No. Corporate Governance Page 41
Standard
Annual Report- Report on AR FY 22-23,
GRI 2: General Disclosure 2021 GRI 2-16 Communication of critical concerns
Corporate Governance Page 19
1. The organisation and its reporting practices
Collective knowledge of the highest Annual Report- Board’s AR FY 22-23,
GRI 2-17
Ashok Leyland- Compliance governance body Report Page 19
GRI 2-1 Organisational Details 05-06
to Competitiveness
Evaluation of the performance of the
GRI 2-18 Ethical Business Practices 54
Entities included in the organisation highest governance body
GRI 2-2 About this Report 05-06
sustainability reporting
GRI 2-19 Remuneration policies Ethical Business Practices 54
Reporting period, frequency, and contact About this Report
GRI 2-3 05-06 GRI 2-20 Process to determine remuneration Ethical Business Practices 54
point
Annual Report- Particulars of AR FY 22-23,
GRI 2-4 Restatements of information About this Report 05-06 GRI 2-21 Annual total compensation ratio
Employees Page 31
GRI 2-5 External assurance About this Report 05-06
4. Strategy, policies and practices
2. Activities and Workers
Statement on sustainable development Message from the Head of
GRI 2-22 18-20
About Ashok Leyland strategy Corporate Strategy and ESG
Activities, value chain, and other business
GRI 2-6 Strengthening Supplier 35-38 GRI 2-23 Policy Commitments Ethical Business Practices 54
relationships
Relationships
GRI 2-24 Embedding policy commitments Ethical Business Practices 54
Fostering an Inclusive
GRI 2-7 Employees 103-104 Fostering an Inclusive
Workplace GRI 2-25 Processes to remediate negative impacts 115
Workplace
GRI 2-8 Workers who are not employees 104 Mechanisms for seeking advice and Fostering an Inclusive
Workplace GRI 2-26 93
raising concerns Workplace
3. Governance
GRI 2-27 Compliance with laws and regulations Ethical Business Practices 52
GRI 2-9 Governance structure and composition Ethical Business Practices 55
Annual Report- Business
Nominations and selection of the highest GRI 2-28 Membership associations Responsibility and 90
GRI 2-10 Ethical Business Practices 54
governance body Sustainability Report
Ethical Business Practices 5. Stakeholder Engagement

Refer AR
GRI 2-11 Chair of the highest governance body Annual Report- Report on FY 2022-23, Holistic Stakeholders
Corporate Governance Page 3 GRI 2-29 Approach to stakeholder engagement Engagement and Materiality 60-63
Assessmentt
Refer AR
Role of the highest governance body in Fostering an Inclusive
GRI 2-12 Ethical Business Practices FY 2022-23, GRI 2-30 Collective bargaining agreements 107
overseeing the management of impacts Workplace
Page 3
Refer AR GRI 3: Material Topics 2021

Delegation of responsibility for managing
GRI 2-13 Ethical Business Practices FY 2022-23, Holistic Stakeholders
impacts
Page 66 GRI 3-1 Process to determine material topics Engagement and Materiality 63-73
Assessmentt

GRI GRI
Disclosure Chapter Pg. No. Disclosure Chapter Pg. No.
Standard Standard
Holistic Stakeholders GRI 302-4 Reduction of energy consumption Environmental Stewardship 77-79
GRI 3-2 List of Material Topic Engagement and Materiality 63-73
Reductions in energy requirements of
Assessmentt GRI 302-5 Environmental Stewardship 94-96
products and services
Holistic Stakeholders
GRI 303: Water and Effluents 2018
GRI 3-3 Management of Material Topic Engagement and Materiality 63-73
Assessmentt Interactions with water as a shared
GRI 303-1 Environmental Stewardship 91-93
resource
GRI 200: Economic Performance
Management of water discharge-related
GRI 201: Economic Performance 2016 GRI 303-2 Environmental Stewardship 66, 91-93
impacts
Direct economic value generated and Highlighting Our Economic
GRI 201-1 43 GRI 303-3 Water withdrawal Environmental Stewardship 92
distributed Performance
Defined benefit plan obligations and Highlighting Our Economic GRI 303-4 Water discharge Environmental Stewardship 92
GRI 201-3 43
other retirement plans Performance GRI 303-5 Water Consumption Environmental Stewardship 92
Financial assistance received from Highlighting Our Economic GRI 304: Biodiversity 2016
GRI 201-4 43
government Performance
Operational sites owned, leased,
GRI 203: Indirect Economic Impacts 2016 managed in, or adjacent to, protected
GRI 304-1 Environmental Stewardship 84
Infrastructure investments and areas and areas of high biodiversity value
Empowering Our
GRI 203-1 118 outside protected areas
services supported Communities
Significant impacts of activities, products,
GRI 204: Procurement Practices 2016 and services on biodiversity
Strengthening Supplier GRI 305: Emissions 2016

GRI 204-1 Proportion of spending on local Suppliers 130-136
Relationships
GRI 305-1 Direct (Scope 1) GHG Emissions Environmental Stewardship 81-82
GRI 205: Anti-corruption 2016
GRI 305-2 Energy Indirect (Scope 2) GHG Emissions Environmental Stewardship 81-82
Communication and training about anti- Fostering an Inclusive
GRI 205-2 102 GRI 305-3 Other indirect (Scope 3) GHG Emissions Environmental Stewardship 83
corruption policies and procedures Workplace
GRI 305-4 GHG Emissions Intensity Environmental Stewardship 81
GRI 206: Anti-competitive Behavior 2016
GRI 305-5 Reduction of GHG Emissions Environmental Stewardship 80-83
Legal actions for anti-competitive
GRI 206-1 behavior, anti-trust, and monopoly Ethical Business Practices 54 Emissions of Ozone-Depleting
practices Substances (ODS)
GRI 300: Environment Nitrogen oxides (NOx), sulphur oxides

(SOx), and other significant air emissions
GRI 301: Materials 2016
GRI 306: Waste 2020
GRI 301-1 Materials used by weight or volume Environmental Stewardship 89-90
Waste generation and significant waste-
GRI 301-2 Recycled input materials used Environmental Stewardship 89-90 GRI 306-1 Environmental Stewardship 66, 84-85
related impacts
GRI 302: Energy 2016
Management of significant waste-related
GRI 306-2 Environmental Stewardship 84-85
Energy consumption within the Environmental Stewardship impacts
GRI 302-1 78-79
organisation
GRI 306-3 Waste Generated Environmental Stewardship 84-88
Energy consumption outside the
GRI 302-2 Environmental Stewardship 80 GRI 306-4 Waste Diverted from disposal Environmental Stewardship 84-88
organisation
GRI 306-5 Waste Directed to disposal Environmental Stewardship 84-88
GRI 302-3 Energy Intensity Environmental Stewardship 77-79

GRI GRI
Disclosure Chapter Pg. No. Disclosure Chapter Pg. No.
Standard Standard
GRI 308: Supplier Environmental Assessment 2016 Percentage of employees receiving

GRI 404-3 regular performance and career 105, 108-109
New suppliers that were screened using Strengthening Supplier Workplace
GRI 308-1 135-136 development reviews
environmental criteria Relationships
GRI 405: Diversity and Equal Opportunity 2016
GRI 400: Social
Diversity of governance bodies and Fostering an Inclusive
GRI 401: Employment 2016 GRI 405-1 102-105
employees Workplace
New employee hires and employee Fostering an Inclusive
GRI 401-1 103 Ratio of basic salary and remuneration of Fostering an Inclusive
turnover Workplace GRI 405-2 107
women to men Workplace
Benefits provided to full-time employees
Fostering an Inclusive GRI 406: Non-discrimination 2016
GRI 401-2 that are not provided to temporary or 107
Workplace
part-time employees Incidents of discrimination and corrective Fostering an Inclusive
GRI 406-1 115
actions taken Workplace
GRI 401-3 Parental leave 107
Workplace GRI 407: Freedom of Association and Collective Bargaining 2016
GRI 403: Occupational Health and Safety 2018 Operations and suppliers in which the
GRI 407-1 right to freedom of association and 115
Occupational health and safety Fostering an Inclusive Workplace
GRI 403-1 116-117 collective bargaining may be at risk
management system Workplace
GRI 409: Operations and suppliers at significant risk for incidents of forced or compulsory labor
Hazard identification, risk assessment, Fostering an Inclusive
GRI 403-2 117
and incident investigation Workplace GRI 413: Local Communities 2016
Fostering an Inclusive Operations with local community

GRI 403-3 Occupational health services 116-117 Empowering Our
Workplace GRI 413-1 engagement, impact assessments, and 118-129
Communities
development programs
Worker participation, consultation, and
GRI 403-4 communication on occupational health 116-117 GRI 414: Supplier Social Assessment 2016
Workplace
and safety
New suppliers that were screened using Strengthening Supplier
GRI 414-1 132-135
Worker training on occupational health Fostering an Inclusive 108-109, 116- social criteria Relationships
GRI 403-5
and safety Workplace 117
GRI 416: Customer Health and Safety 2016
GRI 403-6 Promotion of worker health 116-117 Incidents of non-compliance concerning
Workplace
GRI 416-2 the health and safety impacts of Customer Engagement 152-155
Prevention and mitigation of products and services
GRI 403-7 occupational health and safety impacts 116-117
Workplace GRI 417: Marketing and Labelling 2016
directly linked by business relationships
Incidents of non-compliance concerning
Workers covered by an occupational Fostering an Inclusive
GRI 403-8 116-117 GRI 417-2 product and service information and Customer Engagement 152-155
health and safety management system Workplace
labelling
GRI 403-9 Work-related injuries 117 GRI 418: Customer Privacy 2016
Workplace
Substantiated complaints concerning
GRI 404: Training and Education 2016
GRI 418-1 breaches of customer privacy and losses Customer Engagement 154
Average hours of training per year per Fostering an Inclusive of customer data
GRI 404-1 108-109
employee Workplace
Programs for upgrading employee skills Fostering an Inclusive

GRI 404-2 108-109
and transition assistance programs Workplace

UNGC Principles BRSR Core
Mapping Mapping
UNGC Principles Statement Reference Attribute Parameter Chapter Page No.
HUMAN RIGHTS Business Responsibility and AR FY 22-23,

Total Scope 1 emissions
Sustainability Report - Principle 6 85
Businesses should support and respect the protection of
Principle-1 115
internationally proclaimed human rights Change in GHG Business Responsibility and AR FY 22-23,
Total Scope 2 emissions
footprint Sustainability Report - Principle 6 85v
Make sure that they are not complicit in human rights
Principle-2 115
abuses Business Responsibility and AR FY 22-23,
GHG Emission Intensity
LABOUR
Business Responsibility and AR FY 22-23,
Businesses should uphold the freedom of association and (i) Surface water
Principle-3 115 Sustainability Report - Principle 6 84
the effective recognition of the right to collective bargaining
Principle-4 The elimination of all forms of forced and compulsory labour 115 (ii) Groundwater
Principle-5 The effective abolition of child labour 115
(iii) Third party water
The elimination of discrimination with respect of Sustainability Report - Principle 6 84
Principle-6 115
employment and occupation
(iv) Seawater / desalinated Business Responsibility and AR FY 22-23,
ENVIRONMENT Change in water water Sustainability Report - Principle 6 84
footprint Business Responsibility and AR FY 22-23,
Businesses should support a precautionary approach to
Principle-7 64-66 (v) Others
environmental challenges Sustainability Report - Principle 6 84
Undertake initiatives to promote greater environmental Total volume of water Business Responsibility and AR FY 22-23,
Principle-8 76
responsibility consumption (in kilolitres) Sustainability Report - Principle 6 84
Encourage the development and diffusion of Water consumption Business Responsibility and AR FY 22-23,
Principle-9 94-99
environmentally friendly technologies intensity Sustainability Report - Principle 6 85
ANTI-CORRUPTION Water Discharge by levels Business Responsibility and AR FY 22-23,

of Treatment Sustainability Report - Principle 6 84
Businesses should work against corruption in all its forms,
Principle-10 102
including extortion and bribery R&D and capital
expenditure (capex)
Investing in reducing investments in specific
its environmental technologies to improve
footprint the environmental and
social impacts of product
and processes

Spending on measures
Business Responsibility and AR FY 22-23, towards well-being of
Plastic waste (A)
Sustainability Report - Principle 6 86 employees and workers Business Responsibility and AR FY 22-23,
– cost incurred as a % Sustainability Report - Principle 3 78
Enhancing Employee of total revenue of the
Business Responsibility and AR FY 22-23, Wellbeing and Safety company
E-waste (B)
Details of safety related
Business Responsibility and AR FY 22-23, incidents for employees
Bio-medical waste (C) Sustainability Report - Principle 3 78
Sustainability Report - Principle 6 86 and workers
Gross wages paid to

Construction and Business Responsibility and AR FY 22-23, Business Responsibility and AR FY 22-23,
females as % of wages
demolition waste (D) Sustainability Report - Principle 6 86 Sustainability Report - Principle 5 82
Enabling Gender paid
Diversity in Business
Business Responsibility and AR FY 22-23, Business Responsibility and AR FY 22-23,
Battery waste (E) Complaints on POSH
Sustainability Report - Principle 6 86 Sustainability Report - Principle 5 83
Business Responsibility and AR FY 22-23, Input material sourced

Radioactive waste (F)
Sustainability Report - Principle 6 86 from following sources
as % of total purchases,–
Other Hazardous waste. Business Responsibility and AR FY 22-23, Directly sourced from
Embracing circularity Business Responsibility and AR FY 22-23,
Please specify, if any. (G) Sustainability Report - Principle 6 86 MSMEs/ small producers,
- details related to Sustainability Report - Principle 5 82
and Sourced directly from
waste management Other Non-hazardous
within the district and
by the entity waste generated (H).
Enabling Inclusive neighbouring and / or
Please specify, if any. Business Responsibility and AR FY 22-23,
Development aspirational districts
(Break-up by composition Sustainability Report - Principle 6 86
i.e., by materials relevant Job creation in smaller
to the sector) towns – Wages paid
to people employed
Total waste generated (G Business Responsibility and AR FY 22-23, Business Responsibility and AR FY 22-23,
in smaller towns
+ H) Sustainability Report - Principle 6 86 Sustainability Report - Principle 5 82
(permanent or non-
permanent /on contract)
Business Responsibility and AR FY 22-23, as % of total wage cost
Waste intensity
% of negative media
Customer Engagement 154
Each category of waste Fairness in Engaging sentiment
generated, total waste with Customers and
Business Responsibility and AR FY 22-23, Number of days of Annual Report - Management AR FY 22-23,
recovered through Suppliers
Sustainability Report - Principle 6 86 accounts payable Discussion and Analysis Report 57
recycling, re-using or
other recovery operations
Concentration of
For each category of purchases & sales done
waste generated, total Business Responsibility and AR FY 22-23, with trading houses,
Open-ness of Business Responsibility and AR FY 22-23,
waste disposed by nature Sustainability Report - Principle 6 86 dealers, and related
business Sustainability Report - Principle 8 90
of disposal method parties Loans and
advances & investments
with related parties

Registered Office : Ashok Leyland Limited
No. 1, Sardar Patel Road, Guindy, Chennai - 600032
T: +91 44 2220 6000 | E : [email protected]
www.ashokleyland.com
180 Compliance to Competitiveness

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Compliance to

Sustainability Report 2022-23 1

Message from the Chairman 8 Biodiversity: Enhancing the

 essage from Head Corporate Strategy

Environmental Stewardship: Preserving Nature74 BRSR Core Mapping 175

2 Compliance to Competitiveness Sustainability Report 2022-23 3

Report this year, which

4 Compliance to Competitiveness Sustainability Report 2022-23 5

6 Compliance to Competitiveness Sustainability Report 2022-23 7

8 Compliance to Competitiveness Sustainability Report 2022-23 9

10 Compliance to Competitiveness Sustainability Report 2022-23 11

14 Compliance to Competitiveness Sustainability Report 2022-23 15

18 Compliance to Competitiveness Sustainability Report 2022-23 19

20 Compliance to Competitiveness Sustainability Report 2022-23 21

36,144 3.64 130,186 +1.24x times 27,714

Foundry Production (MT)

Energy Consumed (GJ)

133,897.15 94% 31%

22 Compliance to Competitiveness Sustainability Report 2022-23 23

Sustainable and have developed

24 Compliance to Competitiveness Sustainability Report 2022-23 25

26 Compliance to Competitiveness Sustainability Report 2022-23 27

28 Compliance to Competitiveness Sustainability Report 2022-23 29

Koi Manzil to create a better

30 Compliance to Competitiveness Sustainability Report 2022-23 31

Driven by our unwavering commitment to INNOVATION

32 Compliance to Competitiveness Sustainability Report 2022-23 33

PROJECTS (AFRICA) Power

34 Compliance to Competitiveness Sustainability Report 2022-23 35

36 Compliance to Competitiveness Sustainability Report 2022-23 37

38 Compliance to Competitiveness Sustainability Report 2022-23 39

192,205 Vehicles Sold

M&HCV Trucks sold in the domestic market

M&HCV Buses sold in the domestic market

LCV sold in domestic market

40 Compliance to Competitiveness Sustainability Report 2022-23 41

42 Compliance to Competitiveness Sustainability Report 2022-23 43

44 Compliance to Competitiveness Sustainability Report 2022-23 45

Awards and been a successful year

46 Compliance to Competitiveness Sustainability Report 2022-23 47

Ashok Leyland was presented

Our Pantnagar Plant also won Our Alwar Plant received

48 Compliance to Competitiveness Sustainability Report 2022-23 49

Corporate its smooth and efficient

Governance balancing the interests

50 Compliance to Competitiveness Sustainability Report 2022-23 51

52 Compliance to Competitiveness Sustainability Report 2022-23 53

a comprehensive FAQs on Insider Trading Code

all relevant regulatory authorized under Regulation 30

policies are available Re-dream – Back to Work Program for Women

54 Compliance to Competitiveness Sustainability Report 2022-23 55

56 Compliance to Competitiveness Sustainability Report 2022-23 57

and and potential

58 Compliance to Competitiveness Sustainability Report 2022-23 59

Fostering a healthy dialogue and strong

Collation and Engagement

60 Compliance to Competitiveness Sustainability Report 2022-23 61

• M onthly and • B usiness targets,

62 Compliance to Competitiveness Sustainability Report 2022-23 63

Message from the Chairman 8 Biodiversity: Enhancing the

essage from Head Corporate Strategy

Environmental Stewardship: Preserving Nature74 BRSR Core Mapping 175

• M onthly and • B usiness targets,

Environmental • As part of our ESG

Nature • Attain zero waste to