.png)
ESG criteria have become tremendously important for investors, stakeholders, as well as regulatory bodies. Tech Mahindra, a leading provider of digital transformation, consulting, and business re-engineering services, has become a pace-setter in ESG performance in India.
Tech Mahindra took the first spot in India on climate change and water security as among the 400 companies on the CDP A list, only they were able to secure a Double-A score. This attainment underscores the company’s perseverance in addressing climate change, improving water security, and fulfilling net zero goals. But just grabbing a position on the A list is not it, the companies need to have awareness of climate change and adopt sustainability and corporate transparency.
Tech Mahindra’s Chief Sustainability Officer, Sandeep Chandra, who has a track record in the technology industry and exhaustive expertise in sustainability, has expressed that, “such recognition reflects our unwavering dedication to addressing critical global challenges.”
Having unmatched insights and a profound understanding of the industry, Sandeep has recently been honoured with the ‘Top 100 CSOs 2023’ by Sustainability Magazine where he bagged the 14th position alongside becoming the ‘BW Sustainability World Businessperson of the Year.’
Tech Mahindra's ESG Ratings
Tech Mahindra has displayed its commitment to ESG performance as they were on the CDP A-list for transparency on climate change and water security. Their Double A score was extremely significant in the context of CDP’s scoring system which judges companies based on their environmental disclosure and actions contributing to the mitigation of climate change and ensuring water security.
As we mentioned in CDP’s scoring system, we know that A or A-list ranking is exclusive for companies which are demonstrating best practices in sustainability display awareness and thoroughly look into the management of environmental risks. Tech Mahindra’s notable achievement has set an example for others to foster strategic efforts to combat climate change and enhance water security.
CDP’s Disclosure Growth and Importance
CDP’s contribution to the promotion of environmental disclosure has been remarkable in the advancement of corporate transparency and sustainability all around the world. CDP also encourages companies to disclose their environmental impact and assists in driving meaningful action towards sustainability goals.
CDP is a global platform for environmental disclosure, pushing companies to report their climate change and water security data. Corporate transparency is essential for stakeholders including investors and regulators in order to assess and compare corporate sustainability efforts. On the brighter side, we can see a significant increase in the number of companies’ environmental disclosure data through CDP which shows a growing recognition of the importance of corporate transparency. As there is a rise in the A-grade companies, we have ascertained that more organizations are adopting best practices in sustainability and achieving high standards in environmental performance.
Tech Mahindra’s Sustainability Strategies
Tech Mahindra has implemented assorted sustainability practices to reduce its environmental footprint and promote long-term sustainability. They have put in remarkable efforts to address climate change and achieve its net zero goals. The company has established a decarbonization roadmap to reach net zero by the year 2035, and to accomplish this, they are increasing renewable energy sources to 90% by the year 2030.
As the company invested in renewable energy, with the help of solar panels and other renewable energy technologies, it reduced its greenhouse gas emissions and supported the global transition to cleaner energy sources.
Tech Mahindra deployed over 5,600 water restrictors and sensors to conserve water which resulted in a 30% reduction in water consumption, with 200,024.3 kiloliters of water recycled in FY23.
Tech Mahindra looked into their major source of Scope 3 emissions and they found out that it was employee business travel, for which they invested more in communications infrastructure like teleconferencing and Webex which provided shared transport facilities and ultimately reduced these emissions. This was a triumphant attempt as it helped in a 32% reduction in emissions from business travel. Overall in the years 2018 and 2019, Tech Mahindra had achieved total emissions reductions of more than 19,500 metric tonnes of CO2 equivalent.
Furthermore, Tech Mahindra also inculcated ways for GHG emissions reductions and implemented some sustainability policies including better water and waste management and greener value chains.
Achievements and Certifications
As Tech Mahindra contributed to a better future by being aware of climate change and adopting sustainability, they bagged various achievements and certifications which displayed gratitude and appreciation for their commitment to environmental excellence.
LEED and IGBC Certifications :
Tech Mahindra took home the LEED (Leadership in Energy and Environmental Design) and IGBC (Indian Green Building Council) certifications which recognized the company’s efforts to create environmentally sustainable and energy-efficient buildings.
Internal Carbon Pricing Strategy :
Tech Mahindra has implemented an internal carbon pricing strategy to better manage its carbon emissions and drive investment in low-carbon technologies. This strategy helped them to internalize the cost of carbon and incentivize sustainable practices to reach their net zero goals promptly.
Contributions to Client Sustainability
Tech Mahindra not only follows all the sustainability practices, they also thoroughly assist their clients in achieving their sustainability goals through ESG consulting and advisory services.
IT-Based Solutions for Clients :
Utilizing their expertise in digital transformation, Tech Mahindra offers a variety of IT-based solutions which help their clients to manage their ESG performance more effectively. These solutions include advanced analytics, IoT (Internet of Things) applications, and cloud-based platforms that help clients track, report and enhance their environmental impact.
ESG KPIs :
They offer a range of ESG consulting services designed to help clients navigate the complexities of sustainability. These services include strategic advice as well as managing ESG KPIs (Key Performance Indicators), offering climate risk assessments, and crafting tailored sustainability strategies.
Inclusion on CDP’s A-List
Being on the CDP A-list, Tech Mahindra has undoubtedly passed a significant milestone that underscores its leadership in ESG performance. The CDP A-List recognizes companies that have successfully topped in addressing sustainability and environmental disclosure and management to think about climate change and water security.
Being on the prestigious CDP A-List, it is evident that Tech Mahindra has been excellent in its sustainability practices. It reflects the company’s proactive approach to environmental disclosure and its dedication to mitigating climate change and improve water security. This makes the company a leader not just in the IT sector, but also in the corporate world where sustainability is a must.
Looking Ahead
To talk about the future, Tech Mahindra has shared its vision of expanding its sustainability initiatives which will revolve around the advanced technologies and innovative solutions to address climate change and water security. Potential areas of growth are the integration of AI and IoT for better environmental management, more investment in renewable energy projects, and the improvement in sustainable products and services that will offer a helping hand to clients to help reduce their carbon footprint.
Tech Mahindra’s leadership in sustainability has remarkable implications for the IT industry and corporate India. As the company is at the forefront based on ESG performance, Tech Mahindra sets an example for other companies to follow, encouraging an inclusive adoption of sustainable practices across the sector.
To sum up, Tech Mahindra’s dedication to being at the top in the context of ESG performance has a profound impact on the environment as well as the corporate world. By attaining inclusion on the CDP A-List, the company has demonstrated its commitment to combating climate change, ensuring water security, and securing its net zero goals through comprehensive sustainability strategies and corporate transparency.
Tech Mahindra has done and is still doing its part, which is a powerful reminder to other organizations to adopt these sustainable practices and recognize the value of integrating ESG principles into their operations as well as knowing that the collective impact of the environment and society will be substantial.
Our Directors’ Institute- World Council of Directors can help you accelerate your board journey by training you on your roles and responsibilities to be carried out in an efficient manner helping you to make a significant contribution to the board and raise corporate governance standards within the organization.
Comentários