Tech Mahindra Sustainability Overview Report 2017-18 (GHG Assured)

 
Tech Mahindra Sustainability Overview Report 2017-18 (GHG Assured)
Tech Mahindra Sustainability Overview Report 2017-18
(GHG Assured)

Copyright © 2018, Tech Mahindra. All rights reserved.   1
Tech Mahindra Sustainability Overview Report 2017-18 (GHG Assured)
Contents

1.      About the Report..................................................................................................................... 5
     1.1   Report Boundary and Scope ..................................................................................................... 5

     1.2       External Assurance................................................................................................................... 6

2.      About Tech Mahindra .......................................................................................................... 8
     2.1   Acquisitions.............................................................................................................................. 9

3.      Materiality & Stakeholder Relationship .............................................................................. 10
     3.1   Process for Materiality Assessment ........................................................................................ 10

     3.2       Stakeholder Relationships ...................................................................................................... 10

     3.3       Engaging with our stakeholders.............................................................................................. 11

     3.4       Identification of Material Issues ............................................................................................. 13

     3.5       Engagement with Stakeholders & Management..................................................................... 13

     3.6       Prioritization of Material Issues.............................................................................................. 14

     3.7       Materiality Matrix .................................................................................................................. 15

     3.8       Highest Priority Material Topics and why they are material .................................................... 15

     3.9       Target Definition .................................................................................................................... 16

        3.9.1         Employee Engagement ................................................................................................... 17
        3.9.2         Customer Engagement ................................................................................................... 17
        3.9.3         Community Engagement ................................................................................................ 18
4.       Sustainability Roadmap ........................................................................................................ 18
5.      Governance ........................................................................................................................... 20
     5.1   Board Level Committees ........................................................................................................ 20

6.      Governance Policies .............................................................................................................. 23
     6.1   Code of Ethical Business Conduct ........................................................................................... 23

     6.2       Non-Alliance with Political Parties .......................................................................................... 24

     6.3       Whistle Blower Policy............................................................................................................. 24

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Tech Mahindra Sustainability Overview Report 2017-18 (GHG Assured)
6.4       Anti-Corruption and Anti-Bribery ........................................................................................... 24

     6.5       Anti-Sexual Harassment Policy ............................................................................................... 24

     6.6       Human Rights......................................................................................................................... 24

7.      Opportunities and Risks ....................................................................................................... 25
     7.1   Risks And Opportunities Arising From Climate Change ........................................................... 26

     7.2       Risk Spectrums....................................................................................................................... 27

8.      Our Strategy for Delivering Value ....................................................................................... 33
     8.1   Industries moving towards Digitization................................................................................... 34

     8.2       Network of things to become Crucial...................................................................................... 34

9.      FutuRise ................................................................................................................................ 35
     9.1    Our Strategic focus................................................................................................................. 35

     9.2       Our Organization Design ........................................................................................................ 35

     9.3       Our Focused Execution & Operations ..................................................................................... 35

     9.4       3-4-3 THE GROWTH STRATEGY ............................................................................................... 36

     9.5       Blue Marble - Cloud Based Business Services Integration Platform ......................................... 37

10. Value Creation for Customers .............................................................................................. 38
  10.1 Customer Centric Services and Solutions ................................................................................ 38

     10.2      Customer Centricity a Core Value........................................................................................... 38

     10.3      Measuring Customer Satisfaction ........................................................................................... 40

     10.4      Online Strategy and analysis................................................................................................... 41

11. Supply Chain Management .................................................................................................. 43
12. Intellectual Capital................................................................................................................ 45
  12.1 Strategy and Approach........................................................................................................... 45

     12.2      KNOWLEDGE MANAGEMENT THROUGH DELIVERY EXCELLENCE ASSURANCE......................... 46

     12.3      RESEARCH & DEVELOPMENT .................................................................................................. 46

     12.4      Alliances and Partnerships...................................................................................................... 48

     12.5      Our Licenses, Trademarks and Patents ................................................................................... 51

13. Natural Capital ..................................................................................................................... 53

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Tech Mahindra Sustainability Overview Report 2017-18 (GHG Assured)
13.1      Strategy and Approach........................................................................................................... 53

   13.2      Environment Management..................................................................................................... 54

   13.3      Environmental Policy.............................................................................................................. 55

   13.4      Air Quality.............................................................................................................................. 55

   13.5      Sustainability Highlights: ........................................................................................................ 55

   13.6      Energy Management.............................................................................................................. 57

   13.7      Carbon Pricing........................................................................................................................ 57

   13.8      Strategy for achieving Carbon Neutrality ................................................................................ 58

   13.9      GHG Emissions ....................................................................................................................... 59

   13.10        Energy Management .......................................................................................................... 61

   13.11        Towards Water Security ..................................................................................................... 63

   13.12        Making Sustainability Personal ........................................................................................... 66

14. Enhancing Human Capital ................................................................................................... 70
  14.1 Strategy & Approach .............................................................................................................. 70

   14.2      Talent Acquisition .................................................................................................................. 73

   14.3      Workplace Benefits ................................................................................................................ 73

   14.4      Training and Skill Development .............................................................................................. 74

   14.5      Employee turnover during reporting period ........................................................................... 74

   14.6      Associate Engagement ........................................................................................................... 77

15. Social & Relationship Capital............................................................................................... 86
16. Manufactured Capital........................................................................................................... 92

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Copyright © 2018, Tech Mahindra. All rights reserved.
Tech Mahindra Sustainability Overview Report 2017-18 (GHG Assured)
1.        About the Report

1.1     Report Boundary and Scope

The scope of the Report is limited to India operations for the following entities:
      Tech Mahindra Limited
      Tech Mahindra Business Services Limited
      Tech Mahindra Foundation (Section 8 Company)
       Tech Mahindra BPO Limited (Earlier a wholly owned subsidiary of Tech Mahindra Limited, which
       merged with Tech Mahindra Limited in April 2015).

This includes our facilities across the following cities:

       Bangalore                Bhubaneswar             Chandigarh      Chennai

       Delhi NCR                Gandhinagar             Hyderabad       Kolkata

                                                                          Vizag
        Mumbai                      Nagpur                  Pune
                                                                     (Visakhapatnam)

Wholly owned subsidiaries outside India and subsidiaries that are not wholly owned by Tech Mahindra are
excluded from the scope of the report.

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Tech Mahindra Sustainability Overview Report 2017-18 (GHG Assured)
1.2     External Assurance
This report has been externally assured by DNV GL. The assurance process is described in the Independent
Assurance Statement issued by DNV GL. No other relationship exists between Tech Mahindra and DNV GL.

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Tech Mahindra Sustainability Overview Report 2017-18 (GHG Assured)
*This is Scope 1, 2 and 3 assurance statement.

Annual report assurance is awaited.

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Tech Mahindra Sustainability Overview Report 2017-18 (GHG Assured)
2. About Tech Mahindra

WHO WE ARE
Tech Mahindra Limited (Tech M) is a specialist in digital
transformation, consulting and business re-engineering
solutions and is a part of the USD 20.7 billion Mahindra Group;
a global federation of companies divided into 20 business
sectors. Tech Mahindra represents the connected world,
offering innovative and customer-centric information
technology experiences, enabling Enterprises, Associates
and the Society to Rise™. It’s a USD 4.77 billion
company with 112800+ professionals across 90
countries, delivering value to over 910+ global customers
including Fortune 500 Companies. Our company has a
leading presence in the fast-paced information
technology (IT) industry. With global expertise and
seamless cross-platform functionality, Tech Mahindra
creates IT solutions that empower companies to focus on,
and enhance their core businesses. Leveraging nearly three
decades of experience. The Group has an operational
presence in over 100 countries and employs more than 200,000
people. And though it operates across vast geographies, governing
spirit of "Rise" which binds as one Mahindra
Tech Mahindra’s revenue was at 307,729 Million (USD 4,771 Million) for the
financial year ended March 31, 2018, registering a growth of 9.6% in USD on a YoY basis. The
company’s Profit After Tax (PAT) was at USD 588 Million registering a growth of 40% on a YoY basis
for financial year 2017-18. Tech Mahindra is a Public Listed Company, incorporated and domiciled
in India and has its registered office in Mumbai, Maharashtra, India. It has a primary listing on the
National Stock Exchange of India Limited (NSE) and The Bombay Stock Exchange Limited (BSE).

WHAT WE DO
Tech Mahindra offer innovative solutions that integrate technology with business for several Fortune
100 and 500 companies. Befitting its size, Mahindra Group operates in 20 key industries, providing
insightful and ingenious solutions that are global in th eir ramifications. The companies act as a
federation, with an optimum balance of entrepreneurial independence and synergy. From Mobility to
Rural Prosperity and Information Technology (IT), from Financial Services to Clean Energy and
Business Productivity, headquartered in Mumbai, India,
The Company offers a bouquet of services which includes IT Outsourcing Services, Consulting, Next
Generation Solutions, Application Outsourcing, Network Services, Infrastructure Management
Services, Integrated Engineering Solutions, BPO, Platform Solutions and Mobile Value Added
Services. The Company’s innovation platforms and reusable assets connect across a number of
technologies to deliver tangible business value to its stakeholders.
Tech Mahindra is poised at the tipping point of the next industrial revolution where man and machine
will work together connected to achieve higher business efficiencies. Automation along with a set of
disruptive approaches and technologies like Robotic Process Automation (RPA), Autonomics and
Cognitive computing are fast maturing and getting to be mainstream in every realm of technology
and business transformation. At Tech Mahindra, we believe that driving intelligent automation use -
cases using technologies such as RPA, Autonomics, Natural Language Processing, Machine
Learning and Predictive Analytics will be the key to address the needs of our customers and lead
them to the digital age. We help businesses thrive in a connected world and ensure our customers
at the forefront of the digital revolution, through transformational digital initiatives like digital banking,
smart cities and big data analytics.

OUR VISION & MISSION
We will Rise to be among the top three leaders in each of the chosen market segment while fostering
innovation and inclusion.
We will consistently achieve top quartile growth by contributing to our customers’ success, by
enabling our employees to realize their potential and by creating value for all our stakeholders.
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Tech Mahindra Sustainability Overview Report 2017-18 (GHG Assured)
2.1     Acquisitions
CJS Solutions Group, LLC (HCI), USA:
The Company, on May 4, 2017, through its wholly owned subsidiary Tech Mahindra (Americas) Inc. acquired
84.7% stake in CJS Solutions Group, LLC (doing business as HCI) for an initial consideration of
5742 Million (USD 89.5 Million). The HCI Group works with some of the world’s most prestigious Tier-I
healthcare service providers, primarily in the US and UK, focusing on providing end-to-end implementation
of Electronic Health Record (EHR) and Electronic Medical Record (EMR) software, training and support
services. This will help scale up Healthcare revenue, as provider sub vertical is a key element of Healthcare
and Life Sciences (HLS) strategy. The Company offers innovative and end-to-end integrated solutions for
healthcare providers. Its solutions enhance the efficiency of physicians, hospitals, ancillary facilities, clinics,
governmental health bodies and public health organizations.

Altiostar Inc:
Tech Mahindra, through its wholly owned subsidiary Tech Mahindra Americas Inc. has invested an amount
of US$ 15 Million in return for a 23.5% shareholding in Altiostar. Altiostar is a telecom software development
Company, which is the mobile broadband industry’s first provider of vRAN (virtualized Radio Access
Networks) solution for LTE technology.

Increase in stake in Comviva Technologies Limited:
The Company, in accordance with the shareholders agreement, acquired an additional 32.07% stake in
Comviva Technologies Limited from Bharati Group and Westbridge Ventures II Investment holdings for a
total consideration of 36,186 Lakhs. The Company also acquired 0.68% from some shareholders for a total
consideration of 842.93 Lakhs. As a result of this, the Company now holds 99.85% stake in Comviva
Technologies. Comviva is among the leaders of mobility solutions providers. With an increasing suite of
portfolio products and solutions, it caters to over two billion mobile users globally. Comviva’s solutions are
deployed for more than 130 service providers and banks in over 90 countries across Asia, Africa, Middle
East, Latin America and Europe, and power services to more than two billion mobile subscribers.
  Questions regarding the Report                          Location of the Organizations Headquarters

 We value your feedback, suggestions and views on          Tech Mahindra Limited
 the report. Email us at                                   2nd Floor, Corporate Block,
 Corporatesustainability@techmahindra.com.                 Rajiv Gandhi Infotech Park, Hinjewadi,
                                                           Phase III, Pune – 411 057,
                                                           Maharashtra, India.

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Copyright © 2018, Tech Mahindra. All rights reserved.
Tech Mahindra Sustainability Overview Report 2017-18 (GHG Assured)
3. Materiality & Stakeholder Relationship

At Tech Mahindra, we use materiality assessment as a strategic business tool that ensures our strategy
takes in account social, economic and environmental indicators. We use materiality assessment an
opportunity to reflect upon various stakeholders, importance of certain parameters/aspects to them,
integrate that with our strategy to create positive impact on triple bottom line.

Materiality assessment enables us to identify those topics, which can substantially affect our ability to create
value over the short, medium and long term. A structured materiality assessment enables us to focus on
the things that matter - increasing positive impacts and minimizing negative impacts of our activities and
operations.

As the external environment undergoes transformation and the stakeholder priorities keep shifting, we
review our materiality assessment from time to time. In 2016-17, we carried out a materiality assessment
for developing Tech Mahindra’s Sustainability Roadmap 2021.

We also continually enhance our materiality identification process to ensure organization can get most
benefit from materiality process. W e have also created following 7 step process to identify areas relevant
to each stakeholder and function across the organization.

3.1     Process for Materiality Assessment

3.2     Stakeholder Relationships
The nature and quality of relationships with our key stakeholders has a direct linkage with business growth
and sustainability. We are in business because of our customers, employees and investors. Local
communities and regulators provide us a license to operate. Internal and external systems and processes,
organizational facilities and the right suppliers and NGO partners enable us to carry out our activities in
alignment with our core values. Partners and collaborators and academia provide future growth areas. We
view each of them as relevant stakeholders.

These relationships facilitate the development and enhancement of our Human, Intellectual, Social and
Relationship, Natural and Manufactured Capitals and assure the development of our Financial Capital.
Material topics identified by the various stakeholders groups represented below.

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3.3     Engaging with our stakeholders

Tech Mahindra understands the relevance of maintaining strong relations with stakeholders. W e identified
stakeholders based on the criticality of each stakeholder for the business. Engagement with stakeholders
is on a periodic, continuous and ad-hoc basis depending on need and purpose - sharing relevant
information, gaining feedback, responding to inputs; identifying risks & opportunities and synergies for
collaboration and co-creation. Multiple channels are used for engagement.

  Stakeholder               Key                Engagement                 Feedback                  Frequency
  Groups                    Concerns           Mechanism                  Mechanism                 of
                                                                                                    Engagement
  Customers                 Customer           Meetings, interviews,        Ongoing client visits   Monthly,
                            satisfaction       personnel visits,             and meetings           Quarterly, Bi-
                                               interaction with top         Social media            annually, As
                                               management,                  Mailers, brochures      and when
                                               publications, media &         and news letters       required
                                               communications,              Annual Customer
                                               feedback camps,               Satisfaction Survey
                                               customer visits and          Bi Annual
                                               support programmes,           Satisfaction Survey
                                               conferences and               Collaborations for
                                               seminars, public events       co-creation
                                               and forums
  Associates                Employee           Conferences &                UVO – The HR            Daily, Weekly,
                            satisfaction,      workshops, publications,      Chatbot                Monthly,
                            Interaction        newsletters & reports,       HR Flipbooks            Annually, As
                            with               online portals,              Simulation Games        and when
                            management         performance reviews,          for learning           Required
                                               team meetings, town hall     Online portals
                                               meetings, Senior             Feedback Surveys
                                               Management interactions,     One-to-one
                                               CSR and volunteering          interactions
                                               events, recreational

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activities, feedback
                                               surveys, one-to-one
                                               interactions.
  Shareholders              Meeting the        Annual report,                    Annual meetings,       Monthly,
  & Investors               interests  of      sustainability report, press      AGM                    Quarterly, Bi-
                            stakeholders       releases, investor                Submission of online   annually,
                                               presentations, corporate           queries,              Annually
                                               website, quarterly and            One-to-one
                                               annual results, earnings           interactions,
                                               calls post results, Investor      Online portals
                                               meet, Investor                    Feedback Surveys
                                               Conferences, Non-deal
                                               roadshows, disclosures on
                                               sustainability platforms,
                                               HR Flipbooks
                                               Simulation Games for
                                               learning
  Academic                  Industry           Strategic tie-ups on           Online surveys and        Bi-annual,
  Institutions              interaction        innovations and capacity       meetings                  Annually, As
                                               building of associates, to                               and When
                                               identify young talent pool                               Required
  Partners              &   Maintaining        Partner meets, workshops       Partner Conferences,      Bi-annual,
  Collaborators             the quality of     & training, Strategic          surveys                   Annually, As
                            products           Ongoing for development                                  and When
                                               of platforms and solutions                               Required
  Regulatory Bodies         Public             Conferences and                Online surveys            Bi-annually,
                            advocacy           seminars, Working                                        Annually, As
                                               Committee Meetings,                                      and when
                                               Meetings, Disclosures at                                 required
                                               sustainability platforms,
                                               Conferences & Summits
  Government            &   Responsible        CSR programs in aspects        Meetings and              Quarterly, Bi-
  Local Bodies              corporate          of education &                 interactions, personal    annually,
                            Governance,        employability, Annual          interviews, surveys       Annually,
                            development        report, sustainability                                   As and when
                            al activities      report, press releases,                                  required
                                               investor presentations,
                                               corporate website,
                                               quarterly and annual
                                               results
  NGO’s                     Public             Conferences and                Online surveys            Bi-annually,
                            advocacy           seminars, Working                                        Annually, As
                                               Committee Meetings,                                      and when
                                               Meetings, Disclosures at                                 required
                                               sustainability platforms,
                                               Conferences & Summits
  Internal – External       Sustainable        All the internal and           Process executions,       Continuous,
  (Systems         &        systems     &      external supporting            changes & upgrades        multiple times
  Processes)                processes          processes & systems,                                     a day, change
                                               Change request &                                         in policy,
                                               upgradation, policy                                      external
                                               changes, risks related                                   environments,
                                               changes                                                  As and when
                                                                                                        required
  Suppliers             &   Satisfaction       Supplier & vendor meets,       Vendor engagement         Annually
  Vendors                   of     internal    workshops & training,          meet
                            customers          policies, Strategic
                                               Ongoing for development
                                               of platforms and solutions
  Organization              Safe, Secure       Emission Controls,             Employee feedbacks        Annually
  Facility / Location       &     healthy      Emission Reduction
                            workplace          initiatives & plans, New

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infra development plans,
                                               Upgradation plans
  Society At Large          Economic           CSR programs in aspects    Meetings and             Quarterly, Bi-
                            Development        of education &             interactions, personal   annually,
                            with               employability, Annual      interviews, surveys      Annually,
                            environment        report, sustainability                              As and when
                            sustenance         report, press releases,                             required
                                               investor presentations,
                                               corporate website,
                                               quarterly and annual
                                               results

Continued engagement with stakeholders help gain perspectives on their perception of value creation and
expectations from Tech Mahindra. It also help us identify risks and opportunities and even collaborate to
develop solutions and opportunities arising from risks and the external environment.

Engagement with Regulators is on an ongoing basis to report compliance. Feedback from the beneficiaries
of the CSR program is on an ongoing basis and for specific purposes like Impact Assessments and need
identification.

3.4     Identification of Material Issues
In the identification of material matters to be disclosed, we have been able to capture stakeholder inputs
and priorities. Through various formal and informal engagement mechanisms, we arrived at the list of
material topics for each stakeholder group. The material matters were used to develop Tech M’s
Sustainability Roadmap and their performance is reported in our reports.

Inputs across the material aspects have been provided through various means like –
       Interaction with identified stake holders via different channels
       Materiality shared were based on interactions further with internal and external stakeholders
       Inputs from auditors, quality teams and customers
       Benchmark practices of the industry helped us in assessing key material issues

3.5     Engagement with Stakeholders & Management
Our materiality assessment exercise began with identification and prioritization of key stakeholder groups
and engagement mechanism and feedback mechanism with each one of them. Detailed interactions with
various stakeholders were conducted, through dedicated interview, to determine importance of each
material issue. Various functions and departments with Tech Mahindra also interact with various
stakeholders throughout the year and the feedback from such ongoing engagements is used in determining
important issues from business and stakeholder perspective.

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3.6     Prioritization of Material Issues
The key sustainability issues were then prioritized taking inputs from both internal and external stakeholders
in a systematic manner. The prioritization activity served to highlight the issues, which are important from
the business perspective and are high on stakeholder concerns. These high priority issues then became a
starting point for our sustainability roadmap formation. We also referred to industry best practices

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In addition, public information available in journals and publications for understanding the key sustainability
issues for the business and incorporated those in our prioritization exercise.

The Materiality Matrix represents the material aspects, which were identified from our materiality exercise.
The top corner of the matrix lists down the material issues critical to our business operations. The material
issues identified are in alignment with our core sustainable business strategy. For all material aspects, we
have defined the reporting boundary to be within the organization.

3.7     Materiality Matrix

The material topics for the Company are in the broad spectrum of Social, Economic and Environment
Management. This year, we have included Digitization as a new material topic since this year businesses
have significant impact from digitization both internal and external. It was earlier covered under Innovation.

3.8     Highest Priority Material Topics and why they are material

                                                                                  Envirnoment
      Human Capital                                Innovation
                                                                                  Management

  The associates are the                    Innovation is critical for the   Robust management of
  Company’s biggest assets.                 company for business growth      environmental aspects is
  Continuous engagement with                and competitiveness in face      important for the company,
  them enables retention. Their             of the external environment.     customers and regulators.
  career development helps                  It is driven by the changing     Climate change and water
  them to meet the changing                 Customer needs,                  scarcity pose various risks to
  customer needs and                        expectations, and the            the business.
  expectations.                             external environment.
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3.9     Target Definition
Tech Mahindra nurtures a business philosophy of alternative thinking, strategically leveraging sustainability
as our competitive advantage. This ideology of Sustainability is reflected in our rigor and strategic thinking
across the organization. Connectedness with each of our stakeholders is crucial and paramount to us and
we have identified and taken targets against high impact material issues, concentrating individually on each
one of them with the sole purpose of developing a sustainable business model. We ensure that we not only
transparent in our disclosures but also go beyond in our efforts to create a better ecosystem for our
stakeholders.

                                         Mahindra Sustainability Framework

We aligned our Materiality Matrix with the Mahindra Sustainability Framework and updated some of the
stakeholder priorities.

                                            Build a Great Place to Work       Attrition Reduction
           Enabling                         Foster Inclusive                  Associate Development
           Stakeholders                     Development                       Career Development
           to Rise                          Make Sustainability               Health and Safety
                                            Personal                          Social Responsibility
                                                                              Volunteer Activity
                                            Achieve Carbon Neutrality         Environment Management
           Rejuvenating                     Become Water Positive             Climate Change
           the                              Ensure no waste to Landfill       Water
           Environment                      Promote Biodiversity              Waste
                                                                              Biodiversity
                                            Grow Green Revenue                Strategic Initiatives
                                            Mitigate Risks including          Climate Change
           Building                         Climate Risk                      Supply Chain
           Enduring                         Make Supply Chain                 Innovation
           Business                         Sustainable                       Governance
                                            Embrace Technology and            Economic Disclosures
                                            Innovation
                                            Enhance Brand Equity

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3.9.1     Employee Engagement
Tech Mahindra recognizes that associates are the most valuable part of the organization and understands
that people have to be encouraged, recognized and rewarded to create, grow and sustain a world-class
organization. The organization also promotes an open feedback culture and empowers associates to act
as agents of change in their own domains. The company believes in giving back to the society and motivates
associates to regularly engage in volunteering services.

HR engagements in Tech Mahindra have been developed based on the feedback given by associates
through formal surveys. Tech Mahindra launched an online survey TECH MAHINDRA CARES which
measures associate experience across key engagement dimensions like Career, Alignment, Recognition,
Empowerment and Strive. The Action Planning feature post the survey is a step towards collaborative
decision making that influence aspects such as jobs, work environment, or the direction of company as a
whole. This not only help gauge associate engagement levels and their needs, but also help learn about
workplace strengths and weaknesses.

Tech Mahindra recognizes the right to freedom of association & encourages associates to connect, discuss
ideas and raise issues through readily available internal tools and platforms. Some of the avenues like
Freevoice (a portal where associates can air their issues), IRIS (our Idea bank), All hands Meets and
Redressal committee offer an opportunity for associates to interact with the management, raise concerns
and resolve issues/ conflicts in a fair and transparent manner. There was no operation identified in which
the right to exercise freedom of association and collective bargaining was at significant risk.

3.9.2     Customer Engagement
The business functions at various touch points across customer lifecycle; reach out to customers to
understand their needs; deliver services exceeding the customer's expectations. At the same time due to
the power and support of the Talent team and the Innovation management team, the organization has scaled
itself to be future ready with an array of services in digital age.

Tech Mahindra as a Consulting, Digital Transformation, Integrated Engineering, Business Services and
Solutions provider, has helped customers across the globe achieve business goals. In a dynamic world of
challenges it is imperative to understand the needs of customers and excel on customer expectations.
Hence, Tech Mahindra has maintained a constant dialogue with customer channels to ensure a close
relationship with our customers. This mutually benefits as the organization continues to understand the
needs of the customers better and at the same time helps customers understand the products and services
offerings better. Such platforms of interaction also enable us in capturing the pulse of the industry and
understand the future landscape; at the same time helping the company adapt to these changes.

We conduct an annual survey to evaluate the needs and feedback of the customers. The Customer as
Promotor Score is computed from the response of the customers to one pointed question, also known
as, the ultimate question, “How likely is it that you would recommend this organization to a
friend or colleague?” This survey provides us an excellent opportunity to gauge customers and understand
their key issues.

For the fiscal year of 2017-18, no grievances on breach of customer privacy or security were filed through
company’s grievance mechanisms. There were no monetary fines/penalties against the company on
basis of any non-compliance of laws and regulations concerning the use of its products and
services.

Tech Mahindra has implemented a strong and robust IT security system in place. There have been no
incidents to our IT infrastructure this year and we did not pay any penalties or suffer any revenue
losses.

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3.9.3     Community Engagement
Being a responsible corporate citizen, Tech Mahindra has always been committed to work towards
betterment of the socially and economically disadvantaged amongst the society. Tech Mahindra Foundation (

TMF) has been playing an active role in reaching out to the communities and engaging with them in order
to understand their needs and expectations. This has led to designing of social projects which address the
requirements of communities and empower them in the best manner.

It has been TMF’s endeavor to promote quality education and employability for vulnerable sections of
society through novel and collaborative partnerships with Government, NGO’s and other organizations
across India. To achieve this objective, several programmes aimed at access to education and
empowerment of communities has been initiated.

Persistent interactions and follow-ups have enabled TMF to determine the impact and effectiveness of its
initiatives. Engagements at the grass-root level have enabled us to forge long-lasting relationship with
society.

4. Sustainability Roadmap

 REJUVENATING THE ENVIRONMENT

 Aspect            Mahindra              Target                    Baseline    Progress    Progress    Target
                   Sustainability                                  2015-16
                   Framework                                                   2016-17     2017-18     2020-
                                                                                                       2021

                                         Reduction in Scope 1 -2
 GHG               Achieve Carbon
 Emissions         Neutrality            GHG emissions in          114309      122697      125486.63   15%
                                         MTCO2
 PUE               Achieve Carbon        Reduction in Power        1.76        1.78        1.79        2%
                   Neutrality            Usage Effectiveness of
                                         Data Centers (%)
 Renewable         Achieve Carbon        Renewable energy as       1.77%       2.1%        2.87%       10 %
 energy            Neutrality            percentage of total
                                         electricity used
 Water             Becoming water        Reduction in per capita   13.73       18.28       13.16       5%
                   positive              fresh water consumption
                                         (kl/employee)
                   Becoming water        Number of rain water      2           4           4           6
                   positive              harvesting units
 Waste             Ensure no             Reduction in Paper        93.37 ton   86.17 ton   70.15 ton   15%
 Management        waste to landfill     Consumption
                   Ensure no             Composting food waste     2           3           4           9
                   waste to landfill     at owned locations        locations   locations   locations   locations
 BUILDING ENDURING BUSINESS

 Aspect            Mahindra              Target                    Baseline    Progress    Progress    Target
                   Sustainability                                  Year                                Year
                   Framework                                       2015-16     2016-17     2017-18     2020-
                                                                                                       2021

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Copyright © 2018, Tech Mahindra. All rights reserved.
Promote            Embrace                Number of Innovation            18             48              68               24
   Innovation         technology and         contests and events per
                      Innovation             year
                      Embrace                Number of ideas                 2              4               6                8
                      technology and         incubated in Labs per
                      Innovation             year
   Realization of     Embrace                Revenues from                   40             42              110              100
   opportunities      technology and         Innovative Solutions
   from               Innovation             (USD in Million)
   Innovation
   Connecting         Enhance Brand          Customers connected             8              46              80               30
   with               equity
   Customers
   Supply Chain       Make supply            Number of top Suppliers         2              4               6                10
                      chain                  to be audited yearly on
                      sustainable            Sustainability
                                             parameters
   Reducing           Make supply            Engaging with IT                -              1               2                5
   Carbon             chain                  suppliers to estimate
   Footprint in       sustainable            GHG emission from
   Supply Chain                              products manufactured
                                             for TechM
   ENABLING STAKEHOLDERS TO RISE

   Aspect             Mahindra               Target                          Baseline       Progress        Progress         Target
                      Sustainability                                         Year                                            Year
                      Framework                                              2015-16        2016-17         2017-18          2020-
                                                                                                                             2021

   Employee           Build a great          Employee Engagement             3.7            3.78            3.76             3.9
   Engagement         place to work          Score
   and
   Retention
   Gender             Foster inclusive       Women in Senior                 8%             8.4%            7.32%            12%
   Diversity          development            Management
   Integrating        Make                   Sustainability training of      25%            27%             27%              100%
   Sustainability     Sustainability         total associates
   into Business      Personal
   Talent             Build a great          IT Attrition rate               20%            17%             18%              17%
   Retention          place to work
   Learning and       Build a great          Continuous Learning for         40             40              39.11            40
   Development        place to work          all Associates (Hours
                                             Per Person Per Year)
   Health &           Build a great          Health, Safety and              83% (10        11              100%( 12         100%( 12
   Safety             place to work          Ergonomics Trainings at         locations)     locations       locations)       locations)
                                             locations
                      Build a great          Telephonic and Face to          58%            8               100%( 12         100%
                      place to work          face Counselling facility       7                              locations)       (12
                                                                             locations                                       locations)
   CSR                Foster inclusive       Direct & indirect               3.85           2.50             4.90            5.39
                      development            beneficiaries of Tech
                                             Mahindra Foundation
                                             (Figures in Lakh)
                      Foster inclusive       Tech M Foundation               75             80              100              130
                      development            SMART Vocational
                                             Training centers across
                                             all locations of
                                             operations with 80%
                                             placement
*We have developed our new short-term intensity target for 2021 to reduce by 13.25%, medium term intensity target for 2030 to reduce by 39.75%,
Long-term intensity target for 2050 to reduce by 74% in-line with SBT target sent for validation.

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 Copyright © 2018, Tech Mahindra. All rights reserved.
5. Governance
The Company’s Governance systems are robust and adaptable to ensure adherence to high standards of
corporate governance, ethical business conduct, transparency and accountability. The governance
practices, procedures and systems includes monitoring and review of our strategy, risks and opportunities;
deployment of our capitals in addressing key societal risks like Climate Change and Cyber security and
delivering on opportunities like innovations using Technology.

              Name                            Board Structure                                 Tenure(years)
    Mr. Anand G. Mahindra                     Non – executive Chairman
                                                                                                  23
    Mr. Anupam Puri                           Independent Director
                                                                                                  16
    Mr. CP Gurnani                            Managing Director
                                                                                                   6
    Mr. M. Damodaran                          Independent Director
                                                                                                  10
    Mrs. M. Rajyalakshmi Rao                  Independent Director
                                                                                                   5
    Mr. Ravindra Kulkarni                     Independent Director
                                                                                                   9
    Mr. T. N. Manoharan                       Independent Director
                                                                                                   5
    Mr. Ulhas N. Yargop                       Non – executive Director
                                                                                                  19
    Mr. Vineet Nayyar                         Non – executive Vice Chairman
                                                                                                   3
    Mr. V S Parthasarathy                     Non – executive Director
                                                                                                   3

5.1      Board Level Committees
           Audit Committee                   Risk Management Committee                CSR Committee

      Oversight of the Company’s           The Board of Directors on July 31,   Formulate and recommend to
       financial reporting process and     2014. The Board approved a            the Board, a CSR policy
       the disclosure of its financial     detailed framework on Risk            indicating the activities.
       information.                        Management, which inter alia         Recommend the amount of
      Review and monitor the auditor’s     covers the roles and                  expenditure to be incurred for
       independence and                    responsibilities of the Risk          the chosen activities;
       performance; and effectiveness      Management Committee. The              Monitor the CSR Policy and
       of audit process                    Board delegated the monitoring        activities from time to time;
      Evaluation of internal financial     and reviewing of the risk            Review Sustainability initiatives
       controls and risk management        management plan to the                of the company.
       systems                             Committee. The risk management
      Review the functioning of the        function was earlier being taken
       Whistle Blower mechanism            care by the Audit Committee.

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Copyright © 2018, Tech Mahindra. All rights reserved.
Nomination & Remuneration              Securities Allotment Committee           Investment Committee
            Committee
                                              Enable allotment of shares upon   Consideration and approval of
           Formulation of criteria for         exercise of options under         investment proposals,
           evaluation of Independent           ESOP and allotment of             approving loans and Corporate
           Directors, Committees of            securities as may be delegated    Guarantees within the limits
           Board and the Board;                by the Board of Directors from    delegated by the Board of
           The Committee will                  time to time for any specific     Directors in compliance with
           develop and review                  issues of securities.             the provisions of the
           induction procedures for                                              Companies Act, 2013.
           new appointees to the
           Board to enable them to
           become aware of and
           understand the
           Company’s policies and
           procedures and to
           effectively discharge their
           duties.
                                         Stakeholder Relationship Committee

          Look into the redressing of the shareholders complaints and queries and to focus on the
           strengthening of investor relations;
          To monitor and review the performance and service standards of the Registrar and Transfer Agents
           (RTA) of the Company and provides continuous guidance to improve the service levels for investors;
          Monitor and review any investor complaints received by the Company or through SEBI, SCORES and
           ensure its timely and speedy resolution, in consultation with the Company Secretary and Compliance
           Officer and RTA of the Company.
          Formulate policies and procedures in line with the statutory and regulatory requirements to ensure
           speedy disposal of various requests received from security holders/other stakeholders from time to
           time;
          Review Company’s obligation towards meeting environment, health and safety obligations towards all
           stakeholders.
          Review reports on employee, vendor and customer satisfaction surveys
          Review the complaints/queries received from other stakeholders’ such as vendors, suppliers, service
           providers, customers, etc.
          Consult other committees of the Board while discharging its responsibilities.
          Obtain professional advice and assistance from Company’s external legal advisors and accountants
           and also internal resources.
          Oversee the Investor relations function in the Company and suggest appropriate means to strengthen
           Investor relations of the Company.

All risks related to climate change like business disruption, changing regulatory landscape and acute
physical stress are identified and prioritized by the Enterprise Risk Management Council and reported each
quarter to the Risk Management Committee and presented to the Board of Directors.

Each quarter Climate change associated risks and opportunities are reviewed by the Risk Management
Committee at the Board Level. The company manages the risks of Climate change because of its own
activities by taking Science Based Targets; assigning a Carbon Pricing mechanism and other organization
level initiatives like carpooling, green procurement and making sustainability personal. The CSR Committee
reviews the progress on Sustainability performance (Climate Change, People, and Profit) each quarter.

We have adopted all-inclusive approach towards green with carbon pricing approach and, inculcating green
as spirit and in our actions across the company. To ensure creation of defined and measurable results from
our green initiatives, we have charted sustainability roadmap. Roadmap’s defined goals and targets are

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Copyright © 2018, Tech Mahindra. All rights reserved.
also distributed across management, employees, various functions and departments. The performance of
relevant stakeholders and management is also linked to Green and their Balance Score Cards (used for
performance measure) is linked to green targets and KRI’s. This ensures the focus for Green is adopted in
terms of actions and that direct us for operating this company with the intent of sustainable people, profit
and climate.

Climate Change is aligned to the balanced score card of the ‘CEO & MD’ and senior leader of the
organization. Cybersecurity risks are growing, both in prevalence and their disruptive potential. With the
proliferation of technology in day to day life and business, data security and data privacy become
paramount. Tech Mahindra has collaborated with the state government of Andhra Pradesh to establish
country’s first Cyber Security Operations Centre (APCSOC) in the city of Vijayawada. The establishment of
APCSOC is a manifestation of Tech Mahindra’s strategy to deliver excellence and value in the cybersecurity
space, as part of the TechMNxt charter.

The Sustainability performance of the company is administered through the Tech Mahindra Sustainability
Council.

Composition of TechM Sustainability Council
 Departments and Designation                            Name
 Chief Financial Officer (CFO)                          Mr. Milind Kulkarni
 Deputy CFO                                             Mr. Manoj Bhat
 Chief People Officer                                   Mr. Rakesh Soni
 Chief Sustainability Officer                           Mr. Sandeep Chandna
 Head of Corporate Services                             Mr. Shivanand Raja
 Head of Legal Services                                 Mr. Atanu Sarkar

The Sustainability Council has a direct reporting to the Corporate Social Responsibility (CSR) Committee.
Corporate Social Responsibility (CSR) Committee is the committee comprising of Board of Directors of
Tech Mahindra. This Committee comprises of Board members who looks into Sustainability and CSR
strategies and initiatives of the Company. Vineet Nayyar, Non-Executive Vice-Chairman, is the Chairman
and M. Rajyalakshmi Rao and Ulhas Yargop are other members of the Committee. It apprises board on
Sustainability in quarterly board meetings.

Tech Mahindra Sustainability Council also consults with the Mahindra Group Sustainability Council, which
comprise of TechM Board member Ulhas Yargop and Group Sustainability Head. Sustainability Council is
responsible for approving and overseeing all the sustainability initiatives within the Company.

Sandeep Chandna, the Chief Sustainability Officer of the Company is responsible for driving integrated
sustainability thinking across the organization.

In addition to the responsibilities listed in the organization structure, Tech Mahindra Sustainability Council
also reviews key risks, overall performance and provides vital insights on the climate strategy once every
quarter. Sustainability is driven across the Organization through the Sustainability Policy. It provides
guidance on impacts, risks and opportunities in the context of value creation.

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Copyright © 2018, Tech Mahindra. All rights reserved.
GOVERNANCE STRUCTURE - SUSTAINABILITY AND CLIMATE CHANGE

                                       Tech M Board
                                                                                     Location
                                                                                      Council

                   TechM Corporate Social Responsibility CommitteeCorporate            Green
                                                                      Sustainabil
                         Vision & Sustainability strategy for the company.            Marshal

                               TechM Sustainability Council

                        Formulating sustainability vision and strategy,             Corporate
                         Identifying risks, approving new initiatives and
                         monitoring ESG and Sustainability.
                                                                                      Service

                           TechM Corporate Sustainability Cell

                        Driving sustainability Agenda and execute                       HR
                         sustainability Roadmap and initiatives

                                 Sustainability Champions

                        Executing and Monitoring Sustainability
                         Initiatives; Collection, monitoring and review of
                         Sustainability Cell in non-financial disclosures.

6. Governance Policies
6.1     Code of Ethical Business Conduct
All the Directors and Senior Managerial Personnel have affirmed compliance with the Code of Ethical
Business Conduct (CEBC) as approved and adopted by the Board of Directors and a declaration to that
effect is signed by the Managing Director. The CEBC training programs & certifications are mandatory for
all associates, and aims to apprise employees on various fundamental risks related to corruption, bribery,
conduct and mechanisms to report any such cases to the corporate ombudsman. The CEBC Policy can be
accessed here.

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Copyright © 2018, Tech Mahindra. All rights reserved.
6.2     Non-Alliance with Political Parties
Tech Mahindra as a company complies with the applicable laws and the governance systems of the country
in which it operates. The company does not campaign for, support or offer any funds or property as a
donation or otherwise to any political part of any independent candidate for the political office. The company
strives to preclude any activity or conduct which could be interpreted as a favor to and from any political
party or person.

The company does not make contributions to political parties to influence any decision or gain a business
advantage. The company makes donations that are legal and ethical under local laws and practices.

6.3     Whistle Blower Policy
The W histle Blower Policy encourages employees to report any instance of unethical behavior, fraud,
violation of the Company’s Code of Ethical Business Conduct (CEBC) or any behavior which may otherwise
be inappropriate and harmful to the Company. The policy has been communicated to all employees and is
available on company website here. An ombudsman has been appointed along with dedicated a telephone
line to enable employees to raise their concern and report cases.
6.4     Anti-Corruption and Anti-Bribery
During the year there have been no incidents of corruption or legal actions for anti-competitive behavior,
anti-trust, and monopoly practices. Our Anti-Corruption and Bribery Policy is available here.
6.5     Anti-Sexual Harassment Policy
Tech Mahindra has zero tolerance on sexual harassment at workplace. There is an Anti-Sexual Harassment
(ASH) policy in place which is routinely communicated through mailers and town hall meetings. The policy
is strictly enforced and associates are encouraged to report all such issues which are investigated
thoroughly and confidentially. The policy is available on our public website here.
Our Code of Ethical Business Conduct (CEBC) and Anti Sexual Harassment (ASH) policies aim to reinforce
our commitment to the embodiment of ethics, good governance, values and acceptable standards of
corporate behaviors within our Organization and with all our stakeholders.
To ensure a 100% completion of this organization level mandate, we are also enhancing the module by
automating a few features, making it more stringent. Associates who have not completed the mandates are
being notified.
6.6     Human Rights
Tech Mahindra follows the International Human Rights norms and National Labour laws that protect and
empower all associates within Tech Mahindra’s scope of control and influence, who produce products or
provide services for Tech Mahindra, including associates employed by Tech Mahindra itself, as well as by
its suppliers/subcontractors, and sub-suppliers.
Tech Mahindra policies ensures non-employment of Child Labour, Forced and Compulsory Labour,
promotes Health and Safety, Freedom of Association & Right to Collective Bargaining and there is no
discrimination on the basis of caste, gender etc. within the company.

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Copyright © 2018, Tech Mahindra. All rights reserved.
7. Opportunities and Risks
                                                        “Risk  Management and compliance is integral to
                                                        Corporate Governance and Management. We view
                                                        Risk management as a precursor to opportunities
                                                        of the future. We are challenging ourselves to
                                                        identify and assess risks not just from a mitigation
                                                        and management point of view of but also as
                                                        drivers of Tech Mahindra's future growth"
                                                        Sunil Sanger,
                                                        Chief Risk Officer , Chief Internal Auditor, Data
                                                        Protection Officer & Corporate Ombudsman

The global environmental, social and political landscape are increasingly beginning to pose risks to the
company. Identification and management of these risks, in addition to the traditional enterprise risks, is
critical for continuity, growth and success.

We manage our risks through a robust risk management process which allows us to measure, mitigate and
manage risks and enable business continuity. Reporting of compliance, financial, litigation and climate
change risks helps us to integrate these risks into management decision making. It also provides
opportunities for performance improvement; internal innovation; competitive advantage and generates ideas
for new services and solutions.

TechM’s approach to Risk Management is that of early stage identification, communication and
management. The management of risks includes developing and strengthening operational controls;
business continuity and disaster recovery planning; driving internal innovation and collaborations and
identifying business opportunities. Risk Management Approach

Tech Mahindra has a defined Enterprise Risk Management (ERM) Process in place (also detailed in our
Annual Report 2017-18). Risk Management is driven by the ERM Council, which is headed by the Chief
Risk Officer and represented by the Heads of all Business functions. ERM Council reports to the Risk
Management Committee at the Board Level enabling Board’s awareness of all risk categories that directly
or indirectly have the potential to impact Tech M Business, Brand and Reputation.

The approach to risk management is that of early stage identification, communication and management.
Risk management includes focused actions like strengthening operational controls; deploying and updating
business continuity and disaster recovery; developing business resilience; driving internal awareness and
identifying business opportunities.

All business functions have designated Risk Officers who collect inputs on a monthly basis for updating the
risk register. The identified risks are assessed on the basis of outcomes, probability and magnitude of
impacts using tools like SWOT (Strength, Weakness, Opportunities, and Threat) Analysis; Event/decision
Tree Analysis; Scenario Analysis, Delphi Technique, Cause and Effect Diagram and Failure Mode Effect
Analysis (FMEA). These techniques allow early stage prediction of different scenarios and its probable
impact on Tech Mahindra’s business continuity and Growth. Basis of the risks identified, the Business
Continuity Plan is deployed. The risks, impact and strategies are reported to the Board quarterly and are
set out in the Management Discussion and Analysis Report.

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Copyright © 2018, Tech Mahindra. All rights reserved.
7.1     Risks and Opportunities Arising From Climate Change

As a part of the ERM process, Climate Change Risks are also identified. The criteria used to prioritize risks
associated with climate change are:
        Quantum of impact of climate changes on operations, changes in regulations, locations of our
        operations
       Scope of impact - regulatory impact, cost impact & stakeholder concern
       Time and resources required for implementing changes
       Potential return on sustainable investments

                              • Monthly identification and reporting to the ERM Function.
                 Risk
             Identification

                              • By using tools like SWOT Analysis; event/decision tree analysis
                Risk            and assessment of probability and magnitude of impact.
             Assessment

                              • Business Continuity and Disaster Recovery and Response
                Risk            Planning and use of response strategies.
              Response

                              • Identification of opportunities and integration into strategy for
             Opportunities
                                providing future business outlook.

Identification of opportunities is embedded within business verticals and solutions groups which have a
direct interaction with the customers. The opportunities identified are bench-marked within the industry
during regular meetings with Chief Technology Officer, Chief Operating Officer and Head of Innovation
Management Cell. Opportunities identified are prioritized based upon following parameters to provide
impetus to overall sustainable business growth:

               R&D initiatives fitment to business verticals
               Market Relevance & competition of the project
               Fitment to overall business strategy on climate change
               Feasibility of a business case for solutions related to climate change
               Size of Opportunity
               Increasing customer demand for IT-based Energy Management Solutions
               Budgeting aspects of R&D projects
               Milestones achieved on R&D Projects

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Copyright © 2018, Tech Mahindra. All rights reserved.
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