Tech Mahindra Sustainability Overview Report 2017-18 (GHG Assured)
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Tech Mahindra Sustainability Overview Report 2017-18 (GHG Assured) Copyright © 2018, Tech Mahindra. All rights reserved. 1
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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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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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.
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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Copyright © 2018, Tech Mahindra. All rights reserved.
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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Copyright © 2018, Tech Mahindra. All rights reserved.
*This is Scope 1, 2 and 3 assurance statement.
Annual report assurance is awaited.
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Copyright © 2018, Tech Mahindra. All rights reserved.
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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Copyright © 2018, Tech Mahindra. All rights reserved.
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.
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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Copyright © 2018, Tech Mahindra. All rights reserved.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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Copyright © 2018, Tech Mahindra. All rights reserved.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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Copyright © 2018, Tech Mahindra. All rights reserved.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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Copyright © 2018, Tech Mahindra. All rights reserved.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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Copyright © 2018, Tech Mahindra. All rights reserved.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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Copyright © 2018, Tech Mahindra. All rights reserved.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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Copyright © 2018, Tech Mahindra. All rights reserved.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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Copyright © 2018, Tech Mahindra. All rights reserved.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.
20
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
21
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.
22
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.
23
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
26
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