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Using Supply Chains To Achieve Sustainability Targets

Tech Mahindra’s data-driven approach towards sustainability, impacting positive change in communities through leveraging its business capabilities and robust supply chain integration, makes it a top performer this year

Photo Credit : Canva


Tech Mahindra is the IT services arm of the Mahindra Group that employs 1,21,000 people across more than 90 countries and owns 2.7 per cent of market share in India. It earned revenues of Rs 378,551 million, achieving a 2.7 per cent growth over the previous year. EBITDA margins increased 2.6 per cent and the company closed the year with $2.2 billion worth of deal wins.  

Sustainability strategy 

The CSR Committee of the Board is the apex body responsible for oversight and decision making on economic, environmental and social aspects of CSR and sustainability and is chaired by the MD and CEO. The sustainability goals of Tech Mahindra include targets for greenhouse gas (GHG) emission reductions, operational eco-efficiency, water and waste management, green value chain, community and associate development and training workshops. Its investments in low carbon technology are being funded by internal carbon pricing.

C.P. Gurnani, Managing Director and Chief Executive Officer said, “The thrust on people, planet and then profits is the most bankable strategy for any business. Our roadmap to become carbon neutral by 2030 is based on our science-based targets to reduce GHG (greenhouse gases) emissions. We will achieve this by reducing the absolute intensity of our Scope 2 emissions from purchased electricity, using more renewable sources of energy and reducing our Scope 1 direct emissions from fuels used across our organisation.”  

The company reported a 38 per cent reduction in GHG emissions across Scopes 1, Scope 2 and Scope 3 in FY21 compared to the previous year. It consumed 34.05 per cent lower energy over FY20 and clocked energy savings of nearly 31 million units year on year. The share of renewable energy in Tech Mahindra’s energy mix was 17.6 per cent.

Working the supply chain 
Tech Mahindra engages with suppliers through platforms like supplier meets, audits, workshops and ESG trainings. The company follows a three-step process which includes audits and assessments, capacity building and improvement programmes on climate risk evaluation. The ESG audits are conducted periodically to measure the environmental impact of suppliers. The company also conducts environmental surveys across the supply chain each year to check for disaster recovery and business continuity policies at the supplier level. At the time of procurement, preference is given to suppliers with robust sustainability practices.  

Social footprint through business and CSR 
The Tech Mahindra Foundation supported healthcare workers, security personnel, migrant workers and underprivileged households impacted by the pandemic. Through 355 Covid relief programmes that included meals, PPEs and mask distribution drives, it benefited 20 lakh lives. The company also developed an AI-enabled chabot and a mobile application to assist the government and the citizens during Covid-19.  

Tech Mahindra has created smart city offerings like SMART Grid, Micro-Grid as a Service, Intelligent Electric Vehicle Charging System, Community Action Platform for Energy, smart energy management, smart traffic management, smart lightening management, smart waste management systems and command and control centres. Notable projects delivered by Maker’s Lab, the company’s in-house innovation centre, include Darpan, Atmanirbhar Krishi and BHAML.