Leading the Charge: Business, Climate Action, and Sustainability

The Climate Crisis – A Defining Challenge Today

Climate change is no longer a distant threat. It is an unfolding crisis, demanding urgent action. Despite the long-standing warnings from climate scientists and environmental advocates, our global response remains inadequate. The United Nations Environment Programme (UNEP), highlights a triple planetary crisis – climate change, biodiversity loss, and pollution threatening our planet, its ecosystems, economies, and human survival.

The data is alarming. 2024, being the hottest year on record, has shattered all records with greenhouse gas emissions, air temperatures, and sea surface temperatures at unprecedented levels. Extreme weather events such as wildfires, heatwaves, and floods have become frequent. The rapid melting of glaciers and ice sheets threatens global water security and contributes to rising sea levels, endangering millions of lives. Recognizing this crisis, the United Nations has designated 2025 as the International Year of Glaciers, emphasizing the need for immediate conservation efforts.

This World Economic Forum Global Risks Report states that environmental risks now top the list of global risks for the next decade. The most pressing concerns include extreme weather, biodiversity loss, and depletion of natural resources. These risks are not just statistics, they have profound economic and social consequences and are also a reflection of the deeper, systemic challenges we must address.  

All reports indicate that we are at a tipping point. If we do not act decisively, we risk irreversible damage to our planet. This is not just a call to action for governments; businesses must also play a crucial role. It is time for every sector, every leader, and every individual to step up and take bold steps to mitigate the devastating effects of environmental degradation and safeguard the future of the planet and its people. 

“Restoring Our Planet” - A Call to Action

Organizations play a pivotal role in tackling climate change. For businesses, this is a critical moment to embrace sustainability, making it a core principle rather than an afterthought. Sustainability must be integrated into every aspect of the business - from supply chain management to product development to customer engagement. Companies must prioritize reducing their carbon footprints, improving energy efficiency, and adopting sustainable sourcing practices. Through this, businesses can help mitigate environmental damage while simultaneously improving efficiency, cutting costs, and building resilience against future disruptions caused by environmental crises. 

Equally important is setting clear and measurable sustainability targets. Organizations need to establish detailed roadmaps that outline the specific goals they intend to achieve, such as reaching net-zero carbon emissions or reducing water usage. These targets must be time-bound, specific, and aligned with global sustainability standards. Monitoring progress and ensuring transparency are crucial to keeping all stakeholders informed and engaged. Regular reporting on sustainability efforts helps maintain accountability and ensures that organizations stay on track to meet their goals. 

Investing in green technologies is another essential step for organizations looking to build a sustainable future, especially for tech organizations. From renewable energy solutions to carbon capture technologies, businesses must allocate resources toward innovations that help reduce environmental impacts. Green technology not only provides long-term environmental benefits but also creates new business opportunities in the rapidly growing low-carbon economy.

Furthermore, organizations must stay ahead of evolving environmental regulations and ensure compliance with local, national, and international laws. This is not just about meeting the baseline requirements; it is about proactively preparing for future regulatory changes related to emissions, waste management, and resource conservation. Companies must also adopt sustainability frameworks such as the GRI, SASB, or TNFD to ensure they provide accurate, transparent, and comprehensive information on their sustainability efforts.

In addition to compliance, organizations must adopt robust ESG disclosures to maintain transparency with all stakeholders. Reporting through established ESG platforms like CDP and DJSI, ensures that investors, customers, and the public can effectively assess how businesses are addressing environmental, social, and governance challenges. Clear, detailed ESG reporting builds trust, helps attract conscientious investors, and allows organizations to showcase their efforts toward a sustainable future. 

Finally, organizations should commit to Science-Based Targets Initiative  (SBTi). These targets align a company’s emissions reductions with the latest climate science and global climate goals, in accordance with the Paris Agreement goals which aims to limit global warming to 1.5°C. By adopting SBTi, companies can demonstrate leadership in climate action, ensure their sustainability goals are scientifically grounded, and future-proof their operations against emerging regulatory standards.

Driving Green Initiatives for a Better Tomorrow

At Tech Mahindra, sustainability has been a core focus long before it became a global priority. Our journey toward a carbon-neutral future began over 17 years ago, driven by the foresight that sustainability would be critical in the years to come. The Terra Carta Seal awarded by HRH King Charles (November 2021), SBTi-approved Net Zero emission reduction targets, reflects our ongoing dedication to sustainability.

Tech Mahindra’s commitment to sustainability is further demonstrated by the following:

As part of this foresight, we established a solid foundation for sustainability by forming an ESG Governance framework. This framework has been integral in guiding our efforts, ensuring that sustainability is embedded into the very fabric of our operations and decision-making processes. By aligning our objectives with global sustainability standards and frameworks, we ensure that we are not only compliant with current regulations but also proactive in setting our own ambitious targets for the future. In addition, we continually enhance our sustainability practices by integrating emerging standards such as the UK's Credible Transition Plan, the EU Taxonomy for Sustainable Finance, and guidelines from the Taskforce on Nature-related Financial Disclosures (TNFD), ensuring our approach remains future-proof and aligned with evolving global benchmarks.

In line with the saying, “You can’t manage what you can’t measure”, i.e., we’ve made sustainability a key pillar of our strategy. We implemented advanced monitoring systems to track and analyze KPIs across environmental, social and governance metrics. By measuring them, we make data-driven decisions, ensuring that every action we make contributes to our sustainability goals. We also transparently track and report our progress annually through our integrated annual report, which undergoes third-party assurance.

At Tech Mahindra, we have made it our mission to reduce our carbon footprint across all business functions. From optimizing energy consumption to transitioning to renewable energy sources, we are committed to minimizing our environmental impact. We also focus on sustainable practices in our supply chain, sourcing materials responsibly and working closely with suppliers to ensure they meet our sustainability standards. In addition, we have invested in technologies such as green data centers and cloud solutions that enhance energy efficiency. 

One of our key sustainability initiatives is our commitment to achieving net-zero emissions. Tech Mahindra has committed to aligning its climate action with the Science-Based Targets Initiative (SBTi) to ensure that our goals are in line with the latest climate science.

Beyond our internal sustainability efforts, we actively support and encourage our clients to drive sustainable transformation. Many industries including the financial services industry are currently navigating a complex sustainability landscape marked by evolving regulatory pressures, rising stakeholder expectations, and the inherent challenge of managing climate-related risks. Institutions in this sector face significant hurdles, including ensuring data integrity and transparency in ESG reporting, accurately measuring and mitigating supply chain emissions, and integrating sustainability into core business functions—all while meeting stringent regulatory standards. Moreover, financial institutions face the additional challenge of managing financed emissions—the indirect carbon footprint associated with the investments and loans they support. Our innovative sustainability solutions enable our clients to not only accurately measure and report these emissions but also to exceed industry benchmarks, transforming compliance into a strategic advantage. Through our innovative solutions like Green CodeRefiner & our in-house ESG platforms like i.Riskman and i.Sustain, we empower organizations to reduce their carbon footprints, improve energy efficiency, and adopt green technologies. For instance, recognizing the growing need for financial systems that support green initiatives, we’ve recently developed, i.Greenfinance, a revolutionary platform designed to simplify and automate green lending. This platform streamlines loan origination, ESG scoring and compliance monitoring, making it easier for businesses to support eco-conscious projects and access green financing.

Tech Mahindra’s sustainability impact is driven in accordance with prominent global frameworks and initiatives dedicated to advancing sustainability goals including GRI, SASB, TCFD, the Paris Agreement, UNGC and UNSDGs. We also participate in various ESG disclosure platforms like CDP, DJSI, and EcoVadis, ensuring that our efforts are recognized globally and that we continue to improve our ESG performance.

In addition to our environmental initiatives, we take a holistic approach to sustainability by addressing social and governance factors. We focus on ensuring diversity and inclusion within our workforce, empowering communities through social initiatives, and maintaining the highest standards of governance and ethical business practices. By doing so, we contribute not only to the environment but also to the social fabric of the communities in which we operate. 

At Tech Mahindra, we believe that true sustainability is achieved when we not only measure and manage our impact but also inspire others to do the same. 

Conclusion

Driven by the core philosophy of “Purpose Beyond Profits,” Tech Mahindra’s sustainability approach is not just about compliance, it is about leadership and responsibility. We have seen firsthand how investing in sustainable technologies yields tangible results. For instance, our data center virtualization efforts have already avoided 64,569 MTCO2e emissions, demonstrating the direct impact of our initiatives. This is not just about environmental responsibility; it is also about smart business growth.

Our commitment is further validated by external recognition, including our inclusion in the DJSI World Index 2023, where we are the only Indian Software and Services company and ranked #2 globally.

As businesses, leaders, and individuals, we have a collective responsibility to restore our planet, mitigate climate risks, and inspire change. At Tech Mahindra, we are leveraging modern technologies and collaborating with our stakeholders to drive meaningful change and build a sustainable tomorrow.