From renewable energy adoption to Scope 4 innovation, the IT major aims for a fully decarbonised, climate-resilient value chain well before India’s 2070 goal says Sandeep Chandna, Chief Sustainability Officer, Tech Mahindra

As India works toward its Net Zero 2070 ambition, Tech Mahindra has set a far more aggressive target—achieving net-zero emissions across its operations and value chain by 2035. In an interview with BW Businessworld, Sandeep Chandna, Chief Sustainability Officer at Tech Mahindra, outlined the company’s science-based, measurable pathway to deep decarbonisation, including a 90 per cent cut in Scope 1, 2, and 3 emissions, 90 per cent renewable energy sourcing, and a shift toward regenerative, circular business models. From embedding green technologies like AI-enabled energy optimisation and blockchain-based emissions tracking to preparing for India’s upcoming carbon market in 2026, Chandna detailed how the IT major is positioning itself as a sustainability leader in a rapidly evolving climate economy.

Edited Excerpts’

As Net Zero 2070 sets the national ambition, what concrete milestones is your company setting for 2047 to ensure your net-zero journey is credible, measurable, and aligned with global climate benchmarks?
Tech Mahindra is aligning with India’s Net Zero 2070 vision by setting an ambitious goal to achieve net-zero emissions by 2035. This commitment is grounded in science and validated by the Science-Based Targets initiative (SBTi), ensuring alignment with the 1.5°C climate pathway. We have laid out a clear and actionable roadmap, which includes plans to reduce Scope 1 and 2 emissions by 58.8 per cent (from the base year, FY16) and source 90 per cent of its electricity from renewable energy. The goal extends further to achieve a 90 per cent reduction in emissions (based on FY16 for Scope 1 and 2, and FY20 for Scope 3) across the entire value chain by 2035. We continue to invest in green technologies, advancing sustainable tech platforms, enhancing energy efficiency, and working closely with partners and suppliers to drive system-wide change to enable this transition. Looking ahead to 2047, the company envisions a fully decarbonised and climate-resilient value chain, supported by zero-emission mobility, supplier engagement, and circular economy practices.

In a future where regenerative business will be the benchmark for resilience and competitiveness, what systemic shifts is industry making today to lead that transformation by 2047?
We are seeing a vast systematic shift across all industries. The IT sector, for instance, is laying the groundwork for this transformation today with its convergence of sustainability and technology, from viewing sustainability as a compliance requirement to positioning it as a core driver of innovation and long-term value. Companies are re-architecting digital infrastructures to be energy-efficient, circular, and climate-responsive. Technologies like green cloud, responsible AI, and blockchain-based emissions tracking are being embedded into solutions that help not only reduce impact but also regenerate environmental and social systems.

Momentum is gaining across various industries. However, there is still a considerable journey ahead. Nonetheless, it is essential to recognize the progress made and celebrate how far we have come since the start of this journey.

With Scope 4 emissions gaining traction as a way to quantify positive climate impact, how is your company innovating products or services that enable downstream emissions reductions, and do you think that industry as a whole is prepared to track and report these benefits in the next decade?
We are actively exploring and working on how our technology solutions can help clients reduce their emissions. Through innovations in smart infrastructure, energy-efficient green data centres, sustainable digital transformation, and the creation of our own ESG platforms, we are designing offerings that enhance operational performance and enable measurable climate benefits for our customers. While Scope 4 remains an emerging concept, we recognise its growing importance in capturing the positive climate impact of enabling technologies.

As the broader industry moves toward more mature sustainability practices, consistently tracking and reporting avoided emissions will require robust methodologies, collaborative frameworks, and harmonised metrics. Encouragingly, industry progress on Scope 1, 2, and 3 reporting has accelerated; around 60 per cent of companies now disclose their Scope 1 and 2 emissions, and over 40 per cent report at least some Scope 3 categories. Although Scope 3 reporting is complex due to the breadth across 15 categories, established guidance such as the GHG Protocol is helping companies navigate this space. With further standardisation and alignment, the industry will be well-positioned in the next decade to account for value chain emissions and quantify and communicate the avoided emissions.

With ESG 2.0 redefining credibility through measurable impact and regulatory compliance, what strategic shifts might organizations make to move beyond disclosure towards demonstrable outcomes in environment, social, and governance metrics?
ESG 2.0 is a phase where credibility is defined by disclosure, measurable impact, and regulatory alignment. This evolution demands that companies embed ESG into their culture, strategy, and decision-making processes, transforming sustainability from a reporting exercise to a strategic driver of innovation and competitive advantage.

As we reach the midpoint of this decade, we are already witnessing significant shifts: the rise of mandatory disclosure frameworks, increased transparency and investor scrutiny, growth in ESG-related data, and more substantial alignment with global commitments like the Paris Agreement. .

At Tech Mahindra, we are embracing this transformation by operationalising low-carbon and energy-efficient solutions, accelerating renewable energy adoption, promoting circularity, and leveraging green technology to innovate solutions for both ourselves and our clients. On the social front, we are advancing inclusive hiring, investing in digital skilling, and driving community-centric programs with clearly defined KPIs. From a governance perspective, we follow an ESG governance framework where ESG oversight is integrated at the highest levels.

With growing pressure to tackle Scope 3 and imported carbon, how is your company planning to trace and cut embedded emissions across its global value chain by 2047?
We recognises that tackling Scope 3 and embedded emissions across the value chain is essential to achieving long-term climate goals. We have committed to reducing our Scope 3 GHG emissions by 90 per cent by FY35, a target validated by the SBTi, reaffirming our alignment with global climate ambitions.

To realize this, we proactively engage with our supply chain through sustainable procurement practices, regular ESG audits, and supplier capacity-building programs. The Carbon Disclosure Project (CDP) has acknowledged our leadership in this area for supplier engagement, highlighting our climate action beyond direct operations.

We are also addressing primary Scope 3 categories such as business travel and employee commuting through increased adoption of electric vehicles, promotion of virtual collaboration, and incentivization of low-carbon commuting alternatives. On the waste front, we are working towards Zero Waste to landfill certification across all owned locations by 2026, alongside enhancing circularity and recycling efforts.

As India rolls out its formal carbon market in 2026, how do you envision it driving meaningful emissions reductions within your sector, and what safeguards are needed to ensure it doesn’t simply become a regulatory burden without climate gains?
India’s formal carbon market, set to launch in 2026, marks a significant step toward achieving the country’s net-zero ambition by 2070. While the initial phase focuses on emissions intensity targets for nine hard-to-abate sectors, it lays the foundation for broader sectoral inclusion in the years ahead, including IT.

We view this as a strategic opportunity to drive long-term transformation and is well-positioned to respond proactively as the framework evolves. Given the IT industry’s focus on margins and scalability, the carbon market could accelerate the development of green software, AI-enabled energy optimisation, sustainable data centres, and increased adoption of renewable energy. It introduces financial accountability that supports climate-aligned decision-making by enabling the monetisation of surplus emissions reductions and applying penalties for excess emissions.

However, to ensure meaningful impact and prevent the mechanism from becoming a mere compliance obligation, critical safeguards must be established, including rigorous Monitoring, Reporting, and Verification (MRV) protocols, high-integrity carbon credits focused on additionality and permanence, and sector-specific baselines that reflect operational realities.