Tech Mahindra’s approach to environmental responsibility demonstrates how businesses can contribute to sustainability through innovation and collaboration.
This article is based on the Tech Mahindra ESG Report 2023-24, which provides a comprehensive overview of the company’s sustainability efforts.
Tech Mahindra integrates Environmental, Social, and Governance (ESG) principles into its core business strategy. The company is included in the Dow Jones Sustainability Index (DJSI) World Index 2023 in the Software & Services category. In this article, we explore Tech Mahindra’s environmental initiatives, its climate strategy, waste management efforts, water conservation measures, and sustainable supply chain practices.
Climate Strategy
Tech Mahindra’s climate strategy focuses on minimizing its greenhouse gas (GHG) emissions and adopting renewable energy solutions. The company aims to achieve Net Zero emissions by 2035. It aims to reduce Scope 1 and 2 GHG emissions by 22% by 2030 and 50% by 2050, as part of its commitment to the Science Based Targets initiative (SBTi).
Tech Mahindra leverages technology and energy-efficient practices to reduce emissions. Investments have been made in solar panels across 11 facilities, totaling 4 MW. Additionally, Power Purchase Agreements (PPAs) for renewable energy have been established in Bangalore, Noida, and Pune. The company has also implemented an internal carbon pricing mechanism set at USD 12 per metric ton of CO2 equivalent (MTCO2e) to promote green investments.
Tech Mahindra has IGBC/LEED-certified campuses and ISO 14001-certified facilities as part of its sustainable infrastructure efforts. Furthermore, initiatives like the planting of 113,240 trees over the past eight years have helped sequester 2,800 MTCO2e.
Energy Management
Energy efficiency is a major focus for Tech Mahindra. The company has set a target to reduce energy consumption by 20% by FY 2029-30 compared to the base year FY 2020-21. This includes deploying solar LED lights, upgrading HVAC systems, and automating energy-saving processes in its offices. By FY24, Tech Mahindra achieved a 31% renewable energy mix for its owned locations and 22.96% globally, showing significant progress towards its goal of 90% renewable energy by 2030.
To enhance operational efficiency, Tech Mahindra has modernized its HVAC systems, installed motion sensors, and adopted green building standards. Through these efforts, the company has improved the efficiency of its data centers, which account for a significant portion of energy usage.
Waste Management
Tech Mahindra follows a circular economy approach to waste management, emphasizing reduce, reuse, repurpose, and recycle. The company diverted 97% of waste from landfills through recycling programs. In FY24, Tech Mahindra diverted 344.21 metric tonnes of waste, representing a 97% diversion rate. The company also conducts regular waste audits and training programs for employees to educate them on responsible waste management.
Eight of Tech Mahindra’s 13 owned facilities are certified as Zero Waste to Landfill, with the company aiming for all facilities to be certified by FY 2025-26. The company collaborates with authorized waste management vendors to ensure the proper recycling and disposal of waste materials, further contributing to its sustainability goals.
Water Conservation
Tech Mahindra has implemented measures to conserve and reuse water, aiming to reduce water withdrawal intensity by 20% by FY 2025-26. As of FY24, the company reduced total water consumption to 0.24 million cubic meters. Tech Mahindra has also upgraded its Sewage Treatment Plants (STPs) to enhance wastewater treatment, ensuring zero untreated discharge into the environment.
The installation of water restrictors and sensors has reduced water wastage by 25%, while the deployment of advanced STPs has made all Tech Mahindra-owned facilities Zero Liquid Discharge (ZLD) sites. The company also conducts water risk assessments using tools like Ecolab’s Water Risk Monetizer to identify potential risks and areas for improvement.
Biodiversity Initiatives
Tech Mahindra conducts biodiversity assessments before starting new projects to minimize harm to natural habitats. Over 113,240 trees have been planted over the past eight years, helping preserve and enhance biodiversity.
The company has also banned single-use plastics across its campuses and installed bottle crushers to reduce plastic waste. Additionally, Tech Mahindra holds events like biodiversity quizzes and photography contests to raise awareness about ecosystem preservation among its employees and their families.
Sustainable Supply Chain
Tech Mahindra aims to make its supply chain more sustainable by assessing its top suppliers based on their adherence to ESG principles, encouraging them to adopt practices that minimize their carbon footprint. The company gives preference to suppliers who offer environmentally friendly products and services.
Tech Mahindra also collaborates closely with suppliers to improve their environmental and social impacts. It conducts capacity-building workshops and provides guidelines to ensure all suppliers meet its social, ethical, and environmental standards. As of FY24, 77% of Tech Mahindra’s top suppliers have been assessed for their environmental and social impacts, and 28% of the company’s global spending is with certified diverse suppliers.
Green Commute and Employee Engagement
Tech Mahindra encourages its employees to adopt sustainable commuting practices. Electric vehicles (EVs) are used for employee transportation at the Noida campus, and EV charging infrastructure has been installed at all owned campuses. The company also promotes virtual meetings to reduce travel emissions.
Tech Mahindra conducts awareness campaigns and training sessions on green practices as part of its sustainability efforts. Employees participate in initiatives like the ‘Green Marshals,’ which collaborates with Greenpeace India to promote sustainable behaviors. In FY24, employees contributed over 3,504 hours to various sustainability activities.
Low Carbon Products and Services
Tech Mahindra offers low-carbon solutions to its clients, helping them reduce their environmental footprints. Green Data Centers and server virtualization services have allowed clients to save up to 15% in capital expenditures and improve energy efficiency. The company’s cloud services have also contributed significantly to reducing emissions, representing 74.06% of Tech Mahindra’s green revenue.
In the energy and utilities sector, Tech Mahindra has developed solutions like IoT-enabled Microgrid-as-a-Service, which helps clients improve energy savings and create sustainable work environments. Smart meters provided by the company have reduced emissions by 25-30% and saved up to 25% of energy usage.
Net Zero Roadmap
Tech Mahindra has a roadmap to achieve Net Zero emissions across Scope 1, 2, and 3 by 2035. The company plans to reduce 90% of these emissions and offset the remaining emissions through carbon credits and tree planting initiatives. It is also focusing on carbon sequestration projects to help offset its emissions, including investments in renewable energy and carbon credits.
The company continuously monitors its progress through internal and external audits. Tech Mahindra’s dedication to transparency is evident in its regular reporting of environmental data, verified by third-party auditors like DNV.
(Disclaimer: The details and data provided in this article are derived from Tech Mahindra’s ESG Report 2023-24, which reflects the company’s ongoing commitment to environmental responsibility.
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