An Exclusive India CSR Interview on ZS’s Journey Towards Environmental Responsibility.
In an era where corporate responsibility and sustainability are more than just buzzwords, leading organizations are stepping up to make a tangible impact on the environment. One such company is ZS, a management consulting and technology firm focused on transforming global healthcare and beyond. At the forefront of their environmental initiatives is Rohit Bhagwat, the Office Managing Principal at ZS and a key member of the Global ESG Steering Committee.
In this exclusive interview with India CSR, we delve into the depths of ZS’s commitment to sustainability. Rohit Bhagwat sheds light on the company’s strategies, achievements, and future plans in their journey towards a greener and more sustainable future. From setting ambitious net-zero targets to integrating ESG practices into day-to-day operations, and achieving notable recognitions like the “Silver” rating from EcoVadis, ZS’s endeavors are a beacon of inspiration in the corporate world.
Join us as we explore the insights and initiatives that are driving ZS towards making a substantial impact in the fight against climate change, and setting new standards in corporate environmental responsibility.
India CSR: Companies are increasingly committing to net-zero targets. Can you share if ZS has set any such goals, and if so, could you outline the strategies and initiatives you plan to employ to reach these targets?
Rohit Bhagwat: Yes, ZS has an approved near-term target by the Science Based Target initiative (SBTi) for environmental targets by 2030 from our 2019 baseline. This is a significant achievement! Our primary goals are to reduce absolute scope 1 and 2 greenhouse gas emissions by 48.8% and achieve a 55% reduction in scope 3 per employee. Aligning our targets to the SBTi reinforces our commitment to the Paris Agreement, which seeks to limit global warming to below 1.5°C.
Setting net-zero targets is a step in the right direction towards a more sustainable and climate-resilient future. It underscores the growing recognition of the importance of corporate responsibility in addressing one of the most pressing challenges of our time. ZS is committed to making a sustainable, genuine change that reduces our firm’s impact on the environment and still supports our business and people’s growth.
India CSR: Can you highlight the measures ZS has taken to seamlessly integrate ESG practices into its day-to-day operations? Could you also provide some real-life examples of these practices and the positive impact they have had?
Rohit Bhagwat: Our commitment to environmental sustainability as part of our overall ESG strategy starts with our board and management team and touches every employee. Our biggest recent commitment has been around renewable energy. 2023 was our 100% renewable pilot year with the goal of being fully renewable in 2024. Many of our offices such as our Pune office, the largest in terms of employee headcount, are running on renewable energy. For our offices earlier in the transition, ZS participates in the Energize Program run by Schneider Electric to purchase renewable energy certificates.
We’ve taken other steps to improve our operations. For example, we launched an employee commuting survey in 2023 to better understand our Scope 3 emissions coming from employee commuting. With a view to encourage sustainable travel, we launched an electric vehicle (EV) pilot program in our Pune office that advocates for the use of electric and hybrid vehicles. To support this initiative, we have installed on-site charging stations and are working with rental car companies to provide electric and hybrid vehicles for commuting.
Our commitment to green practices also extends to reducing single-use plastic in our offices. We are actively educating ZSers on how their personal actions can impact the environment and they are enthusiastically participating in community initiatives such as tree planting and recycling waste materials. All these practices not only contribute to reducing carbon emissions but also set a positive example for our employees and clients.
India CSR: What is ZS’s stance on the UN’s target of reducing global emissions by 45% by 2030 and achieving net-zero emissions by 2050?
Rohit Bhagwat: The UN’s target of reducing global emissions by 45% by 2030 and achieving net-zero emissions by 2050 should be viewed as an urgent and essential global commitment to combat the escalating climate crisis. These targets represent a critical pathway to safeguarding our planet’s future, preserving environmental stability and mitigating the severe consequences of climate change. Having said that, companies determined to make a substantial impact should go beyond this target and set even more ambitious and aggressive goals, pushing the boundaries of environmental responsibility and innovation.
The determination of a company’s net-zero target date is a strategic decision that takes into account various compliance and operational priorities. It is essential to note that early preparation is integral in this endeavor, potentially reducing associated costs by over 50%.
A company’s approach to advancing net-zero progress encompasses operational enhancements and investments in sustainability. This is not a solo effort but a collaborative one, demanding the active engagement of the company, suppliers and clients throughout the value chain.
India CSR: Continual assessment and improvement are essential for sustainable initiatives. Can you explain the mechanisms and processes that ZS has in place to assess and enhance its sustainability initiatives on an ongoing basis?
Rohit Bhagwat: Our greenhouse gas (GHG) profile and improvement processes are shaped significantly by our operational activities, such as the utilization of electricity in our offices, travel and procurement of goods and services. ZS collaborates closely with internal teams, such as travel and events, to address and mitigate the environmental impact associated with these aspects of our operations.
ZS employs a systematic and annual process to measure its carbon footprint year after year in partnership with external firms like EcoAct. This measurement incorporates vast amounts of data collected from our offices and finance teams, ensuring a thorough understanding of our environmental impact. This year onwards, we plan to introduce an audit process to assess the measured data with an outside auditor and then update our tactical plans. We also recognize the importance of ongoing performance tracking and therefore plan to implement quarterly key performance indicator (KPI) tracking. This will provide real-time insights into our progress, enabling prompt adjustments.
India CSR: ZS recently achieved a “Silver” rating from the sustainability standards agency EcoVadis. Could you provide more insights into what this rating represents and the key initiatives or areas that contributed to this recognition?
Rohit Bhagwat: Our steadfast commitment to sustainability remains a key priority and garnering external recognition feels great. We take pride in the fact that ZS recently attained a “Silver” rating from EcoVadis, a prestigious sustainability assessment platform. EcoVadis assesses companies on issues that are material and specific to their size, location and industry, delivering evidence-based assessment. The platform not only recognizes companies’ sustainability efforts but also offers guidance on strengths and areas for improvement. ZS plans to leverage these insights and continually improve and enhance its sustainability performance.
In 2022, ZS received a Bronze EcoVadis rating for its environmental, labor, and human rights, ethics and sustainable procurement. We considered their guidance and in 2023, ZS achieved a “Silver” rating from them. This underscores our unwavering commitment to sustainability across four pivotal categories: environmental impact, labor and human rights standards, ethics, and procurement practices. The Silver rating indicates that we belong to the top 25% of companies in our industry in terms of sustainability practices. This is one of our recent wins and motivates us for further improvement.
Our sustainability journey will evolve as we move ahead. Beginning this year, the scoring system will be ‘graded on a curve,’ necessitating ongoing progress to maintain or advance our rating. This dynamic approach aligns with our ethos of perpetual enhancement, ensuring that we not only meet but exceed the evolving standards set by EcoVadis.
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