Tech Mahindra leads in sustainability, intertwining ESG with innovation, client collaboration, and a workforce-driven green ethos, shaping a resilient future

In the dynamic landscape of corporate sustainability, Tech Mahindra has emerged as a torchbearer, claiming the top spot in the S&P Global Sustainability Yearbook 2023. The journey to this pinnacle has spanned over a decade and a half, with sustainability at the core of the company’s ethos.

“Our journey has taken almost one and half decades, with sustainability always at the forefront of everything we do as a conscious enterprise,” shared Sandeep Chandna, Chief Sustainability Officer, Tech Mahindra. “ESG (Environment, Social, and Governance) is at the heart of our operations, and we are taking bold steps towards models that deliver sustainable business advantages with value-based impacts”, he added.

The Critical Role of ESG in Tech Mahindra’s Sustainability Strategy

The driving force behind their sustainability strategy stems from the changing expectations of their customers. Growing awareness among customers and potential clients is leading them to scrutinize the company’s ESG performance, making it a critical performance indicator for new business opportunities.

“We are being looked at negatively if we don’t have a net-zero target. Even to secure new business, we must align with ESG benchmarks,” noted Chandna.

Tech Mahindra’s sustainability strategy extends across all facets of its operations. From human resources to assets, the company meticulously assesses how each element contributes to long-term profitability. Initiatives like the Green Marshall program engage employees in green initiatives, reducing attrition and fostering a sense of purpose among the workforce.

The IT giant’s commitment to sustainability is also reflected in its approach to software development. The emphasis on green software development and encouraging eco-design and Green ID certification for employees showcase their commitment to environmental responsibility.

The company has also embraced carbon pricing, ensuring that funds for renewable energy investments are readily available. Tech Mahindra has set an ‘ambitious target’ of reaching 90 per cent renewable energy by 2030, already achieving 35-40 per cent through initiatives such as power purchase agreements for locations like Pune and Noida.

Artificial Intelligence for Sustainability

Tech Mahindra’s integration of artificial intelligence (AI) into its sustainability initiatives has further strengthened its position in the ESG space. The company recognizes the transformative power of AI in three key areas:

Resource Management – How the resources like water, energy, and raw materials be optimized?

Supply Chain – How do you reduce the carbon footprints throughout the distribution network Generative AI can improve climate modelling with predictive analytics allowing access to greater datasets for drawing correlations and help in setting net zero targets.

Sustainable Urban Planning – Capturing data from smart cities being set up can facilitate better planning and modelling of prospective smart or green cities. For example, AI can enhance waste management through the reduction or better recycling techniques.

“We’re looking at how sustainability can go hand in hand with technology. Every day, we explore new ways to integrate AI and generative AI into our sustainability efforts”, commented Chandna.

The company’s commitment to sustainability extends beyond its operations. At the group level, Tech Mahindra facilitates collaboration among Mahindra Group companies through a sustainability console, ‘i.Sustain’. This platform enables sharing of best practices and replicating successful ESG initiatives across subsidiaries.

“We are helping each other achieve sustainability milestones. For instance, we’re replicating our i.Sustain platform within the group to streamline sustainability efforts”, explained Sandeep.

 Employee Engagement for Sustainability

To engage and motivate employees, Tech Mahindra initiated the incentive-based Green Marshall program in 2008. This voluntary program encourages employees to participate in green initiatives, fostering a sense of responsibility towards sustainability. Notably, the company has planted 10,000 trees in a village near Ahmednagar district, contributing to the village’s recognition as a model village in Maharashtra.

As part of day-to-day activities, Tech Mahindra has ensured that their employees conscientiously manage resources—be it water, electricity, or food waste within the office premises. Their strong commitment extends beyond plastic, ensuring campuses remain entirely plastic-free. Vigilant gate personnel promptly replace any plastic bags with eco-friendly alternatives. This approach reflects the company’s ongoing employee engagement practices.

Challenges on the Sustainability Journey

Reflecting on the challenges faced, Sandeep highlighted the shortage of ESG talent and the evolving nature of the field. Tech Mahindra addressed this by internally upskilling its team and actively participating in industry-wide training initiatives.

“The biggest challenge was how do you manage the skill sets, how do you add the skill sets, and then how do you update your team with those skill sets. There was no training for ESG till 2017”, said Chandna.

Changing Mindsets

Sandeep concluded by saying, “The mindset towards sustainability is evolving. As we witness the impact of climate change and governance issues, there’s a growing recognition that sustainable practices not only protect our planet but also contribute to profitability. This shift in mindset is driving positive change, making sustainable products and offerings more affordable and accessible for all.”