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Home Sustainability

Tech Mahindra’s Climate Strategy to Reach Net Zero Emissions

Commitment to Sustainability Through Green Initiatives and Emission Reductions

India CSR by India CSR
in Sustainability
Reading Time: 5 mins read
Tech Mahindra’s Climate Strategy to Reach Net Zero Emissions

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Tech Mahindra’s roadmap to net zero aligns with the SBTi Net Zero Standard and climate science.

NEW DELHI (India CSR): Tech Mahindra, a leader in the IT services and consulting sector, has unveiled its latest climate strategy to achieve net zero emissions by 2050. With a multifaceted approach targeting various aspects of emissions reduction and green energy initiatives, Tech Mahindra continues to showcase its commitment to sustainability. The company aims to reduce Scope 1, 2, and 3 emissions, emphasizing technological solutions, renewable energy, and partnerships to address climate change, the latest sustainability report revealed.

Climate Strategy and Emission Reduction Initiatives

Tech Mahindra is actively working towards reducing its carbon footprint with a focus on leveraging technology and energy-efficient practices. The company has set ambitious targets to cut emissions across Scope 1, 2, and 3 categories, which encompass emissions from direct operations, energy consumption, and supply chain activities. As part of its strategy, Tech Mahindra has implemented internal carbon pricing at USD 12 per metric ton of CO2 equivalent (MTCO2e) to promote green investments within the organization.

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In FY24, Tech Mahindra successfully reduced its Scope 1 emissions to 10,574 MTCO2e and Scope 2 emissions to 68,088 MTCO2e, surpassing its target for the year. The company has committed to a Science Based Targets initiative (SBTi) approved near-term goal of reducing 22% of Scope 1 and Scope 2 emissions by FY 2029-30 from the base year FY 2015-16.

For Scope 3 emissions, which encompass emissions from upstream and downstream activities, Tech Mahindra aims to reduce 90% by FY 2034-35 from a baseline of FY 2019-20, with an interim target of reducing 20% by FY 2025-26. In FY24, the company achieved Scope 3 emissions of 33,277 MTCO2e, meeting the set target for the year.

Renewable Energy Investments and Green Facilities

Tech Mahindra has made significant investments in renewable energy to power its operations sustainably. The company has installed solar panels with a capacity of 4 MW across 11 facilities, as well as entered into Power Purchase Agreements (PPAs) at Bangalore (10 MW), Noida (1.5 MW), and Pune (5 MW) to ensure access to renewable energy.

Additionally, Tech Mahindra’s campuses in Chennai, Pune, Bengaluru, and Hyderabad have received IGBC/LEED certifications, demonstrating their commitment to green building standards. The Bengaluru and Hyderabad facilities are also ISO 14001 and ISO 45001 certified, underscoring the company’s adherence to environmental management and occupational health standards.

Carbon Sequestration and Community Engagement

In line with its carbon reduction efforts, Tech Mahindra has also focused on carbon sequestration by planting over 113,240 trees over the past eight years, aiming to offset 5% of the company’s emissions. This initiative has helped save an estimated 2,800 MTCO2e, leading to cost savings of over USD 7,440.

To foster sustainability among its employees, Tech Mahindra has launched initiatives such as the Green Marshals program, which logged 3,504 hours in FY24. The company has collaborated with Greenpeace India for training sessions and conducts monthly green quizzes to engage employees in environmental topics.

Low Carbon Products and Services

Tech Mahindra is also focused on offering low-carbon solutions to its customers. The company’s green data center solutions, which include server virtualization and energy-efficient data center designs, have allowed clients to save up to 15% in capital expenditure (CAPEX) over three years and increased productivity by 10% year-on-year. Tech Mahindra has virtualized 13,602 servers to date, significantly contributing to the reduction of emissions.

Green data centers and server virtualization account for 4.78% of Tech Mahindra’s total revenue, while cloud services contribute 17.52% of total revenue and represent 74.06% of their green revenue. The company’s cloud services use modular, energy-efficient equipment to help customers reduce their emissions.

Smart City Solutions and Energy Savings

Tech Mahindra has also developed smart city solutions to contribute to emission reductions for third-party stakeholders. These include smart street lighting, smart IoT-based waste management, geo-intelligent platforms, and environmental monitoring systems. The company’s smart meters have reduced emissions by 25-30% and saved up to 25% in energy usage.

The energy and utilities solutions provided by Tech Mahindra help clients improve energy savings, enhance asset management, and create sustainable work environments. Through initiatives such as Smart Lighting and CAPE, Tech Mahindra has avoided an estimated 5,031.32 MTCO2e in emissions per year.

The Roadmap to Net Zero

Tech Mahindra’s roadmap to net zero aligns with the SBTi Net Zero Standard and climate science. The company has set ambitious goals to reduce 90% of its Scope 1, 2, and 3 emissions by 2034-35, with a base year of FY16 for Scope 1 and 2 emissions and FY20 for Scope 3 emissions. The remaining unavoidable emissions will be offset through investments in carbon credits and sequestration projects, including tree planting.

Tech Mahindra remains committed to leveraging its resources, expertise, and strategic partnerships to play a significant role in creating a sustainable and resilient future. By focusing on reducing emissions, enhancing energy efficiency, and fostering community engagement, the company aims to be a leader in the global fight against climate change.

(India CSR)


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Tags: Climate StrategyNet Zero Emissions
India CSR

India CSR

India CSR is the largest media on CSR and sustainability offering diverse content across multisectoral issues on business responsibility. It covers Sustainable Development, Corporate Social Responsibility (CSR), Sustainability, and related issues in India. Founded in 2009, the organisation aspires to become a globally admired media that offers valuable information to its readers through responsible reporting.

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