Tata Consultancy Services

Carbon per million dollars of revenue. The legacy industry-standard reference (CDP, MSCI). Useful for cross-sector context, but distorted by margin — high-margin firms appear artificially efficient. Read alongside the operational and asset intensities for the full picture.

OpEx (operating expenditure) is the running cost of the business — staff, services, energy, materials. This shows how carbon-intensive operations are per million dollars of spend. Removes the margin distortion that revenue-based ratios introduce.

EVIC (Enterprise Value Including Cash) is the firm's total capital footprint — equity + debt + cash + minority interest. The EU's standard intensity measure (SFDR PAI 3) — answers: how much carbon does each million of capital deployed in this business produce?

PP&E (Property, Plant & Equipment) plus leased real-estate assets is the firm's physical infrastructure on the balance sheet. This shows the carbon intensity of that physical footprint — uses Scope 1+2+3 for consistency with the other headline intensities. Surfaces stranded-asset risk for asset-heavy firms.

Carbon per FTE (full-time-equivalent employee) — the diagnostic measure for people-leveraged businesses where headcount, not capital, drives delivery. Captures the office, energy and travel footprint per person.

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Renewable energy consumption reached 74% of total energy in FY 2024 (up from 55.2% in FY 2023 and 15.6% in FY 2021). Sources include 10.2 MWp rooftop solar PV across TCS campuses (contributing 3% of total electricity), green tariff procurement (added Ahmedabad, Kolkata, Chennai, Kochi, Trivandrum branches), and Power Purchase Agreements (PPA) for renewable energy. Two PPAs in Chennai (Ambattur and Chennai One, Magnum) added ~6.5 million green units. Additional 260 KWp rooftop solar planned for FY 2025. In certain overseas geographies, Energy Attribute Certificates (EAC) procured to meet carbon neutrality. Achieved carbon neutrality across Scope 1+2 in North America, UK & Ireland, Europe, Asia Pacific (incl Japan), Latin America, and Middle East & Africa in FY 2024.

TCS's net-zero pathway prioritises absolute emission reduction over offsetting. The Company has not detailed a removals or offsets program. Internal carbon price of ₹2,365 per tonne is currently used for capital allocation evaluation rather than offset purchasing. The Company may consider applying carbon tax to business travel and employee commuting (Scope 3 cat 6 & 7) in future to fund offsets, but this is not yet implemented. SBTi commitment from June 2022 implies that any future offsets would target the residual emissions after deep reduction.

• Green buildings and energy efficiency in owned campuses

  67.3% of TCS India office space is certified to IGBC Green Building standards (39 offices, 25.74M sq ft). FY24 added 2 new platinum-certified buildings (Sholinganallur Chennai, Deccan Park Hyderabad). Energy efficiency initiatives saved 16,301 MWh equivalent to 11,671 tCO2e via HVAC upgrades (VRF inverter tech), modular UPS systems, VFD-based chillers, life-cycle replacement of cooling towers/pumps, and IoT-based Clever Energy real-time monitoring across all offices.

• Business travel reduction via collaboration tools and sustainable aviation fuel

  Business travel emissions (Scope 3 Cat 6) rose to 117,310 tCO2e in FY24 from 89,907 in FY23 due to resumption of travel and RTO. TCS strategy: reduce business travel through use of collaborative tools and technology, and use of flights with sustainable aviation fuel (SAF) or other options as commercially available. May apply internal carbon tax to business travel in the future to drive reductions.

• Employee commute electrification — EV fleet transition

  Plan to transition transport fleet of cabs and buses to EVs; install EV charging facility for private vehicles of employees; engagement to encourage use of public transport. Employee commuting (Scope 3 cat 7) was 307,149 tCO2e in FY 2024 — the single largest Scope 3 category — driven by increased return-to-office post-pandemic.

• Green buildings + IGBC certified real estate

  67.3% of TCS office space in India is IGBC green-certified, covering 39 offices and over 25.74 million sq.ft. New campuses designed per green building standards with energy efficiency, roof underdeck insulation, CTI-certified cooling towers, LED luminaires. Two additional existing buildings (Sholinganallur Chennai and Deccan Park Hyderabad) got IGBC Platinum certification in FY 2024. Result: 6.63 Mn kWh annual energy savings from green buildings.

• HVAC and UPS energy efficiency retrofits

  HVAC system upgrades through latest VRF inverter-based systems, high-efficiency VFD chillers, replacement of R-22 fixed-compressor equipment with inverter technology. Modular UPS consolidation providing 90-95% efficiency at lower loads. FY 2024 savings: 2.83 Mn kWh from HVAC projects + 0.801 Mn kWh from UPS optimization. Aim to reduce data centre PUE from 1.7 (FY24) to 1.65 by FY25 through UPS consolidation.

• Clever Energy IoT-based real-time energy monitoring

  TCS Clever Energy™ leverages IoT, machine learning and AI to optimize energy consumption across campuses. Real-time monitoring through Resource Optimization Centre with set-point modulation, equipment schedule changes, operational optimization, and alert-based monitoring. FY 2024 result: 6.04 Mn kWh avoided energy consumption. Same product also sold commercially to TCS clients to help their decarbonisation.

• Business travel reduction via collaboration tools and SAF

  Reduce business travel through use of collaborative tools and technology. Plan to use flights with sustainable aviation fuel (SAF) or other low-carbon options as and when commercially available. Business travel emissions (Scope 3 cat 6) were 117,310 tCO2e in FY 2024, up from 89,907 tCO2e in FY 2023 due to return-to-office and resumption of travel.

• Data center and IT infrastructure decarbonisation

  Data centers at Yantra Park (Thane) and Siruseri (Chennai) achieved weighted average PUE of 1.7. Yantra Park runs on 100% renewable energy; Siruseri on 73% RE. Initiatives include server consolidation (saved 80kW in one DC), rack/UPS consolidation, modular UPS sized for actual load (90-95% efficiency at low loads), cold aisle containment, and procurement of energy-efficient IT equipment. 54 BAU equipment rooms reduced weighted PUE from 1.88 to 1.76.

• Employee commute - EV transition for cabs/buses and EV charging

  Employee commute (Scope 3 Cat 7) is largest Scope 3 category at 307,149 tCO2e in FY24, up from 217,364 in FY23 due to RTO. Strategy: transition transport fleet of cabs and buses to EVs, install EV charging facilities for employees' private vehicles, and engage employees on public transport use. Currently ~55% of employees work from office on all working days.

• TCS Clever Energy™ IoT-based real-time energy management

  TCS leverages its own Clever Energy IoT platform for real-time monitoring and optimization of operational energy efficiency across all offices. The Resource Optimization Center delivered 3.38 Mn kWh savings through chiller optimization, AHU optimization, AC schedule changes, and elimination of non-peak hour energy wastage. Also commercially sold to clients to help them achieve sustainability goals.

• Vision 25x25 - delinking business growth from real estate expansion

  TCS' Vision 25x25 strategic lever delinks TCS' business growth from campus expansion, thereby bringing down emissions related to employee commutes and business travel. Combined with hybrid working models, this reduces both Scope 2 (office electricity) and Scope 3 Cat 6 & 7 (travel and commuting) emissions over the long term.

• Green buildings & HVAC/UPS energy efficiency

  36 TCS offices with over 23.68 million sq ft are IGBC-certified green buildings (64.6% of total India real estate). Energy efficiency initiatives delivered 4,219 MWh savings (3,016 tCO2e reduction) in FY 2023, including energy-efficient AHU fans, VRF systems, oilless centrifugal chillers, chiller plant managers, IGBT-based UPS, LED lighting, and EFF1/IE3 high-efficiency motors.

• Green IT and data center PUE optimization

  TCS data centers achieved weighted average PUE of 1.66 in FY 2023. Initiatives in Green IT focus on data center and IT device consolidation and optimization to reduce carbon footprint, including IT energy optimization in data centers and equipment rooms. Green attributes are considered in every asset procurement.

• Green buildings and IGBC certification

  36 TCS offices covering 23.68 million sq ft (64.6% of India real estate portfolio) are IGBC-certified green buildings. New campuses are designed for 50% higher water efficiency, 100% sewage treatment and recycling, and rainwater harvesting. HVAC upgrades include energy-efficient AHU fans, VRF systems, oilless centrifugal chillers and chiller plant managers, generating 505,266 kWh annual savings.

• Data center and IT energy optimisation (PUE 1.66)

  TCS data centers achieve weighted-average PUE of 1.66 in FY 2023. Green IT initiatives focus on data center and IT device consolidation and optimisation. The proprietary TCS Clever Energy IoT platform provides real-time energy monitoring and analytics across campuses, delivering 3.38 million kWh of energy savings through chiller optimisation, AHU optimisation, AC schedule changes and elimination of non-peak-hour wastage. Green attributes are considered in every IT asset procurement.

• Business travel and employee commute reduction

  Business travel emissions (Scope 3 Cat 6) rose from 35,043 tCO2e in FY 2022 to 89,907 tCO2e in FY 2023 as travel resumed post-pandemic. Employee commuting (Cat 7) is the largest Scope 3 category at 217,364 tCO2e, dominated by WFH emissions and India personal/public commute. TCS' Vision 25x25 strategic lever aims to delink business growth from campus expansion to reduce commute and travel emissions.

• Sustainable supply chain - supplier sustainability assessment platform

  TCS launched Supplier Sustainability Assessment Platform in FY23. In FY24, 17% of value chain partners (by spend) were successfully assessed for sustainability criteria. The platform engages suppliers on sustainability assessments, training and awareness to improve their sustainability performance. Energy efficiency is a major procurement consideration for IT assets.

• Green IT — data centre consolidation and energy-efficient procurement

  Procurement of energy-efficient IT equipment is a major consideration in all IT asset procurement. Data centre and distributed IT power management via rack consolidation, server consolidation, right-sizing UPS, cold aisle containment, blanking panels. Two main data centres at Yantra Park (Thane) and Siruseri (Chennai) with weighted average PUE 1.7. Yantra Park uses 100% renewable energy; Siruseri 73%. 54 equipment rooms weighted average PUE reduced from 1.88 (FY23) to 1.76 (FY24).

• Supply chain sustainability assessments

  Launched Supplier Sustainability Assessment Platform in FY 2023. In FY 2024, 17% of value chain partners by spend assessed for sustainability criteria. Green Procurement Policy and Sustainable Supply Chain Policy require suppliers to sign TCoC at empanelment. Supplier sustainability assessments will continue to expand year-over-year.

• Customer enablement - sustainability solutions and offerings

  TCS built a suite of 200+ offerings in sustainability services across industry verticals. Solutions include TCS Clever Energy (IoT-based real-time energy monitoring, originally internal), Envirozone, IP2 (intelligent power plant), and an ESG framework for compliance reporting. Solutions help enterprises decarbonize operations, create net-zero pathways, embed circularity in products/services. The company is investing in research on green hydrogen, biofuels, and EV-related platforms.

• Supply chain sustainability and responsible sourcing

  TCS' Green Procurement Policy and Sustainable Supply Chain Policy require all suppliers to sign the TCoC and adhere to environmental, social and governance standards. In FY 2023 TCS launched its Supplier Sustainability Assessment Platform, onboarding top supply chain partners. 100% of suppliers are covered in the responsible sourcing program; 20% of top-80%-by-spend suppliers completed environment assessment.

• Supply chain sustainability and supplier assessment

  TCS launched its Supplier Sustainability Assessment Platform in FY 2023 and initiated onboarding of top supply chain partners. Database checks and risk profiling implemented for top 80% suppliers by spend. Of these, 20% have completed sustainability assessment for environment criteria. Green Procurement Policy outlines commitment to responsible sourcing.

• Customer cloud migration enabling Scope 3 reductions

  TCS' dedicated business units for each large hyperscaler help clients migrate workloads from owned data centers to the cloud, thereby reducing the carbon footprint associated with those workloads. This is positioned as a Scope 3 enabling decarbonisation lever for client decarbonization, while also being a growth driver for TCS.

• Cloud migration enabling customer Scope 2 reductions

  TCS has dedicated business units for each hyperscaler (AWS, Azure, Google Cloud) helping clients migrate workloads from owned data centers to public cloud, significantly reducing the carbon footprint associated with those workloads. Over 110,000 hyperscaler-certified employees support this transition. This is the primary way TCS' services help customers reduce their own emissions.

• Sustainability product portfolio (Clever Energy, Envirozone, IP2, ESG Integrator)

  TCS offers a steadily expanding suite of sustainability services and IP including Clever Energy (real-time IoT energy management), Envirozone, IP2, TCS ESG Integration Solution on AWS, and the Digital Farming Initiative. These help customers measure, track and reduce GHG emissions across their value chains, supply chains and operations. Available on hyperscaler platforms (Google Cloud, AWS).