Prioritizing Sustainability: How Organizations Are Making it a Key Component of Product and Service Strategies

As the world continues to scrimmage with climate change, economic crisis, and other environmental challenges, sustainability is at the forefront of business decisions. Consumers are now more aware of the impact of consumption of products and services on the environment and are exploring greener alternatives. The circular economy is starting to become an important factor in the buying behavior.

The shift to a net-zero economy is necessitating the widespread adoption of new business models, technologies, strategies, and operational procedures. From increased investment in renewable energies to the transition towards electric vehicles, energy-efficient gadgets, green data centers, sustainable technology is rapidly gaining traction.

Use cases across sectors in sustainable technology

As the demand for environmental accountability is emphasized, businesses are continuing to focus on sustainability measures and innovative ideas that result in new products and business models. To say, sustainable technology can be applied to a variety of sectors such as:

• Transportation (electric vehicles, renewable fuels, and intelligent transport systems),
• Construction (green building, energy-efficient pipes and glass materials),
• IT (green cloud computing, green data centers, stimulators), and
• Energy (renewable energy sources, energy efficiency measures, smart grid technology).

With the rising energy crisis, every industry - be it automotive, telecom or manufacturing, wants to focus on saving energy and consider it a primary KPI.

The sustainable adoption needs to be looked at holistically, going beyond environmental benefits. Sustainability from a technology lens is a framework of digital solutions which spans across all critical business operations. From optimizing costs, energy performance, and asset utilization to facilitating new business models and tech-enabled products, we can adopt sustainable technology.

Global net zero elevation plans:

There is increased commitments from all stakeholders i.e. US and European government initiatives as well as India’s updated nationally determined contribution (NDC) under Paris agreement and the mandatory business responsibility and sustainability report (BRSR) by Securities and Exchange Board of India (SEBI) whichare strengthening green technology and sustainability sales. Additionally, increased support for grid solutions, carbon capture and storage, and energy storage will drive the market.

Adoption of sustainability by key industry players:

• One of the leading transportation companies added more than 6,000 compressed natural gas vehicles to their fleet.
• A Swiss multinational food and drink processing company reduces greenhouse gas emissions by using 100% renewable electricity.
• A venerable clothing brand intends to eliminate plastic lamination from its retail bags and poly bags for garment covers.
• Global search engine giants utilize artificial intelligence (AI) and global mapping systems to optimize and protect forests.

In the Asia Pacific region, including India, Japan, Taiwan, China, and South Korea, the rapid shift towards a sustainable future through renewable energy is fueling a drive towards greater adoption of environmentally friendly practices. With the region accounting for a significant proportion of global hydrogen demand, the increasing focus on Green Hydrogen has the potential to improve the region's economic standing while also achieving its ambitious net-zero goals by 2070.

Committed to maintain a balance between a 100% green portfolio and business profitability, Tech Mahindra is adopting and developing solutions that are embedded with environmental, social, and governance (ESG) principles and driven by new age technologies.

TechM enabling organizations to achieve their sustainability goals:

The Tech Mahindra ESG offerings in the critical areas of materiality and business strategy is helping businesses to circumvent challenges and inefficiencies that continue to stifle business growth.

Apart from assisting business in achieving the first level of adherence maturity, TechM ESG consultation standardizes ESG metrics through ESG reporting and aid in implementing ESG practices to manage risks and create high-value by incorporating sustainability and taking necessary actions throughout enterprise activities. TechM is the only company in the world (till Feb 2023) which has adopted and now offering sustainability reporting for our clients on 5 frameworks i.e.,

• Task Force on Climate-related Financial Disclosures (TCFD),
• Dow Jones Sustainability Index (DJSI),
• Sustainable Development Goals (SDGs or UN SDGs),
• Integrated Reporting (IR) Framework,
• Streamlined Energy and Carbon Reporting (SECR).

Delivering and leading sustainability transformation through process improvements, innovations, and disruption, Tech Mahindra is actively engaged in various projects like building sustainable portfolio for a leading American bank and energy management for a government railway company to undertake a modernization drive. The company is also providing IoT based solution like energy management, renewable energy management in focus with social and governance aspect.

TechM sustainability portfolio recognition

From being featured in 2022 to being ranked 1 in the S&P Global Sustainability Yearbook 2023, Tech Mahindra is establishing a decarbonization roadmap to be net-zero by 2035. TechM is the only Indian company listed in the 2022 Carbon Clean 200 List which reflects the amazing strides taken by a strong leadership and an expert team which is putting TechM at the forefront of the sustainability landscape

In 2021, TechM was recognized by the Dow Jones Sustainability Index as the world’s most sustainable IT company and was also awarded by HRH The Prince of Wales’ Terra Carta Seal.

The Tech Mahindra environment, social, governance (ESG) portfolio will contribute towards sustainability goals while maintaining and creating business value. That said, TechM is increasing the renewable energy consumption by adopting PPA’s, efficiently managing the resources through motion sensors instead of phase wise LED’s and achieving carbon sequestration by plantation and deforestation through drones and many others.

The future of sustainable technologies

The development of sustainable technology is an important part of the global effort to reduce carbon emissions and combat the effects of climate change.

The adoption of advanced analytics, digitization, electrification, and process efficiencies reduces business costs, improves reputation, and brings in new customers. With the help of new technologies and a robust partner ecosystem, businesses can renovate operations, supply chains, and processes more eco-efficiently.

If the prioritization of sustainable technology continues at the rate which is being expected, we are likely to see proliferation of use cases such as zero-carbon cities, self-charging motorways and many others.