According to a study by market intelligence firm UnearthInsight, India’s technology outsourcing industry has seen an 85 percent drop in carbon emissions during FY21 at about 0.3 million tonnes. Previously in FY20, it was about 2 million tonnes. This FY2021 study included more than 2,000 technology outsourcing companies in India, which included engineering, IT, ITeS, global capability centres, and startups.

As per the UnearthInsight estimates, only USD 750 million was spent on travel costs in FY21 by the outsourcing industry. In FY20, USD 2.9 billion had been spent on the same travel costs. If we look at the top five IT services companies that include Tata Consultancy Services (TCS) Ltd, Infosys Ltd, HCL Technologies Ltd, Wipro Ltd, and Tech Mahindra Ltd, their combined travel costs was around $370 million on travel FY21, which is 75 percent lower if compared with  USD 1.4 billion in FY20. This significantly has reduced carbon emission resulting from commuting to work; domestic and international travel.

“The outsourcing Industry was on track for the adoption of hybrid working models, electric mobility even before Covid-19 pandemic however the pandemic and quick adoption of digital tools/technology has dramatically changed the scenario and today carbon emission reduction looks sustainable over a longer period of time," said Gaurav Vasu, founder & CEO, UnearthInsight. “Covid-19 disruption also made the largest industry players move from pilot to large-scale deployment of technologies like digital campus hiring platforms which helped significantly reduce carbon emission earlier generated by travel to over 1000+ campuses across the country," UnearthInsight added.

Furthermore, the report estimates that about 70,000-75,000 freshers got hired through end-to-end digital platforms of top two IT companies namely TCS and Infosys. Moreover, it is also expected that by 2025, 75 percent of campus hiring for the tech industry will be done through advanced end-to-end digital platforms and tools.

Climate-friendly posture 

Many businesses, irrespective of industry vertical have been taking steps on reducing greenhouse gas emissions that warm the atmosphere and contribute to climate change. Companies in the oil and gas, automotive, financial sectors, and electricity generation are realizing that the need to act on reducing carbon footprint is not only good for the world, but also a smart business strategy. For instance, a corporate business council is organized by C2ES which includes numerous companies striding their way forward with ambitious emissions targets and innovative strategies. These companies have been strictly supporting climate-friendly policies. This group of 35 businesses has the members of the C2ES Business Environmental Leadership Council (BELC). Be it operations or supply chains, these diverse businesses have committed to implementing strategies to reduce emissions going forward.    

“Every company that manufactures something is causing some damage either to the soil or water or air. Most companies treat these as externalities. But the growing movement of sustainability calls for companies to internalize these costs. Once companies do this, they will have a strong incentive to reduce their carbon footprint,” Philip Kotler, American marketing author, consultant, and professor.

Some of the companies are focusing significantly on investing in renewable energy, such as wind and solar power. The rest are focusing on producing their goods and services more efficiently and sustainably.

A Case in Point

If we look at the players in the Oil and gas industry, they are also taking steps to reduce their negative impact on the climate. One such company named Shell had launched a program in 2017 to reduce its net carbon footprint. This initiative will help in reducing not only operational emissions but also encourage those associated with the use of its products as well. Furthermore, the power providers are also looking to reduce emissions in other areas and also changing the fuels they use to generate electricity. Utilities such as National Grid are constantly educating their consumers the importance of energy reduction for a sustainable future ahead. National Grid also launched an energy efficiency and solar marketplace which allowed its consumers to receive rebates when installing energy-efficient heating and cooling equipment. Also, they would receive free quotes and financing options for solar installations.

Various auto manufacturers have also vowed to produce more electric vehicles and improve efficiency of their product manufacturing. The dawn of EV vehicles has been really helping the world to control and reduce carbon footprint.  One of such companies is General Motors who has committed to utilize 100 percent renewable energy by the year 2050. This will include investing in solutions to reduce emissions associated with its thermal load. Furthermore, Toyota is also planning to eliminate CO2 emissions in its operations and supply chain as part of its Environmental Challenge 2050. Also, they are looking forward to integrating recycled materials into the production of new vehicles.

By investing in environmental programs and at the same time leveraging its own industry to enable financing of clean energy solutions, the financial sector is also setting some of its own climate goals.  The players in the space are continuously financing low-carbon and sustainable business activities, while also helping encourage positive environmental actions among its workforce. Goldman Sachs & Co. is one such company that has been carbon neutral since 2015. They are still looking for ways to reduce water usage and limit waste products. Also, they have been investing in companies which specialize in up-cycling clothing and shoes; thus helping significantly in eliminating carbon dioxide emissions from production lines and shipping.

Challenges in Reducing Carbon Emissions

Contrary to popular belief, reducing carbon emissions would be much more difficult without voluntary business action. As we all know that businesses play a crucial role in a proper functioning of society, creating their own policies makes them key players in fighting the climate crisis. Today, it has become imperative to capitalize on the low-carbon economy which is also benefiting the customers and the world as a whole. Various Industry players are still reluctant to understand the need of the hour to bring in the needed sustainable approach is the way to a better future. Hence, the resistance to change has been the major challenge in paving a way towards reducing carbon footprints today.

“Pollution from human activities is changing the Earth's climate. We see the damage that a disrupted climate can do: on our coasts, our farms, forests, mountains, and cities. Those impacts will grow more severe unless we start reducing global warming pollution now,” stated Frances G. Beinecke, Environmental Activist and Politician.