TCS aims to reduce emissions by 70% in 2025, bring down to zero by 2030

IT services major, Tata Consultancy Services (TCS) announced plans to reduce its absolute greenhouse gas emissions across Scope 1 and Scope 2 by 70 per cent by 2025 (over 2016 base year), and to achieve net zero emissions by 2030.

In its recently published Integrated Annual Report 2020-21, the company has set forth this new carbon reduction goal after having achieved the previous target of reducing its specific carbon footprint by half by 2020 (versus baseline year FY 2008), ahead of schedule. In FY 2021, TCS’ specific carbon footprint across Scope 1 and Scope 2 was lower by 61.6 per cent compared to baseline year FY 2008.

According to the leading GHG Protocol corporate standard,a company’s greenhouse gas emissions are classified in three scopes. Scope 1 and 2 are mandatory to report, whereas scope 3 is voluntary and the hardest to monitor. Scope 1 emissions are direct emissions from company owned and controlled resources. Scope 2 emissions are indirect emissions that emanate from purchased energy from a power utility.

“Our net zero goal underlines our renewed commitment to environmental stewardship. To curb emissions and limit global warming to well below 2, preferably to 1.5 degrees Celsius, compared to pre-industrial levels, all organizations will have to reimagine existing business models and aim for sustainable growth. We are in a unique position to combine our purpose-driven world view with digital innovation to not only drive our own sustainability, but also partner with customers, civil society and governments to lead and shape solutions for a sustainable future,” said N G Subramaniam, COO & Executive Director, TCS.  

At the core of TCS’ strategy to reduce its carbon footprint is improved energy efficiency through the addition of more green buildings to the company’s real estate portfolio, reduction of IT system power usage, and the use of TCS Clever Energy which leverages IoT, machine learning and AI to optimize energy consumption across campuses.

TCS’ Vision 25x25 is a strategic lever that delinks TCS’ business growth from campus expansion, and brings down emissions related to employee commutes and business travel. Other elements of its net zero aspiration include greater use of renewable sources of energy and carbon removal offsets.

TCS’ environmental footprint was significantly reduced in FY 2021 due to the large-scale switch to remote working, enabled by its Secure Borderless Workspaces operating model. With over 97% of employees working from home throughout the year, resource consumption, emissions and wastes were significantly lower. During the year, the company’s absolute energy consumption came down by 46.6% over the prior year, and absolute carbon footprint (Scope 1 + Scope 2) by 48.8%.

TCS will also continue its efforts in water conservation and waste management through reduction and recycling initiatives. All its campuses ensure zero biodegradable waste to landfill and zero water discharge. TCS has also eliminated the use of single-use plastics across campuses and ensured the recycling of all recyclable plastic waste.