Climate Change Data

Environmental Metrics

ESG Focus Areas

• Diversity at workplace
• Digitization
• Cyber/IT System Security and Resilience
• Customer centricity/satisfaction
• Talent attraction and retention
• Energy and emissions management

Environmental Achievements

• Reduced Scope 1 and Scope 2 emissions per rupee of turnover from 19,061 in FY 2020-21 to 18,085 in FY 2021-22
• Reduced total electricity consumption from 23,199.91 MWh in FY 2020-21 to 21,692.92 MWh in FY 2021-22
• Reduced total energy consumption from 23,380.30 MWh in FY 2020-21 to 21,807 MWh in FY 2021-22
• Achieved a more balanced gender ratio (35:65 F:M) compared to the previous year.
• Zero bribery and corruption cases.
• Zero cybersecurity breaches.

Social Achievements

• Improved gender balance in the workforce.
• Multi-pronged approach towards workforce retention including upskilling opportunities, promotions, benefits, rewards, and long-term incentives.

Governance Achievements

• Implemented an anti-bribery and anti-corruption policy and training.
• ISO certifications: ISO 22301, ISO 37001, ISO 31000, and compliance with the Indian Prevention of Corruption Act (PCA).

Climate Goals & Targets

Environmental Challenges

• Cyber/IT system security and resilience risks due to the IT services sector being a highly targeted sector.
• Customer centricity/satisfaction risks due to the importance of transparency, accuracy, and comprehensibility of marketing statements and service descriptions.
• Talent attraction and retention challenges due to high attrition rates in the IT/tech sector.
• Energy and emissions management challenges due to significant resource consumption and carbon emissions from digital infrastructure.

Mitigation Strategies

• Data Privacy Officer (DPO) to address data subject access requests (DSAR) and stakeholder grievances.
• Periodic independent audits to validate data privacy controls.
• Annual training for employees on data security.
• Proactive measuring mechanisms to gauge customer satisfaction and obtain feedback.
• Categorization of employees into risk profiles with mitigation plans.
• Investment in employee development and remuneration policies to attract and retain talent.
• Investment in renewable energy portfolio (solar plants), energy-saving interventions, and phasing out ozone-depleting pollutants.

Supply Chain Management

Supplier Audits: 100% of suppliers undergo sustainable procurement procedure.

Responsible Procurement

• Vendor diversity
• MSMED status
• Yearly revenue
• Quality certification
• POSH policies
• ISO certification
• Policy on anti-slavery and human trafficking
• Environmental management
• Policy on the prohibition of child labour

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, NGBRC

Certifications: ISO 9001, ISO 14001, ISO 22301, ISO 27001, ISO 31000, ISO 37001, ISO 45001

Environmental Metrics

ESG Focus Areas

• Data privacy/Cyber/IT System Security and Resilience
• Business ethics
• Customer centricity/satisfaction
• Protection of human rights
• Emissions reduction and energy management
• Diversity, equity & inclusion
• Customer satisfaction
• Community involvement

Environmental Achievements

• Extension of ISO 14001-2015 certificate (GTP Tower B & E Bangalore, Pritech Bangalore, Parin & Laurel Bangalore, Chennai DLF , Pune CC4 and Pune EON Phase I & Phase II facilities)
• One Bengaluru office LEED Gold/Platinum certified
• Installation of water aerators to reduce water consumption
• Ban on single-use plastics and procurement of single-use bottles at all offices

Social Achievements

• Various strategies implemented to maintain workforce, including upskilling, promotions, benefits, and rewards
• Gender-neutral bathrooms, health insurance for same-gender couples and women in technology
• Grievance redressal mechanism in place for employees and workers

Governance Achievements

• Board of Directors and Chief Ethics and Compliance Officer provide oversight and promote responsible governance practices
• Risk Governance and Management Committee (RGMC) oversees ESG-related initiatives
• Company complies with existing regulations

Climate Goals & Targets

Environmental Challenges

• Data breaches
• Cyberattacks
• Maintaining customer satisfaction
• Protecting human rights across multiple geographies
• Scope 1 and 2 emissions increased
• Increased carbon footprint
• Increased energy consumption

Mitigation Strategies

• Appointed Data Privacy Officer (DPO)
• Data Privacy Office conducts internal and external audits
• Annual training on data security and privacy practices
• Board of Directors and Chief Ethics and Compliance Officer oversight
• Internal policies on responsible business conduct (CoBC, Anti-bribery and Anti-corruption Policy, Anti-Slavery Policy, Whistleblower Policy)
• Proactive measurement of customer satisfaction and feedback
• Defined process to improve CSAT scores
• Publicly available CoBC, Anti-bribery and Anti-corruption Policy, Anti-Slavery Policy, and POSH policy
• Grievance redressal mechanism
• Replacement of old AC units, energy consumption monitoring and reduction
• Maintaining BEE 4/5 star rating on energy efficiency

Supply Chain Management

Supplier Audits: 100% of suppliers undergo sustainable procurement procedure

Responsible Procurement

• Sustainable procurement procedure assessing vendor diversity, MSME status, quality certification, POSH policies, ISO certification, anti-slavery and human trafficking policies, environmental management, and child labor policies

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, NGBRC principles

Certifications: ISO 22301, ISO 37001, ISO 31000, ISO 9001, ISO 45001, ISO 14001:2015, ISO 27001

Environmental Metrics

ESG Focus Areas

• Data privacy/Cyber/IT System Security and Resilience
• Business ethics
• Customer centricity/satisfaction
• Protection of human rights
• Climate Change

Environmental Achievements

• In FY 2024 Scope 1 emissions decreased by 2.28%
• 48% of total energy needs fulfilled through renewable energy
• 3.3% reduction in total energy used in data centers
• 148.69% increase in total waste recycled in 2023
• Recycled 100% of wastewater across all our campuses in India

Social Achievements

• Gender ratio in FY 2024 was 35:65 (F: M)
• Representation of Women Board of Directors in FY 2024 is 25%
• 18.8% of suppliers belong to the diverse supplier category
• % of persons with disability in the workforce in FY 2024 is 0.41%
• CSAT score in FY 2024 is 4.42/5

Governance Achievements

• Nil fines / penalties /punishment/ award/ compounding fees/ settlement amount paid in proceedings

Climate Goals & Targets

Environmental Challenges

• Improper data and systems management can have a major reputational impact
• Data breaches can have significant financial impacts
• Likelihood of costly litigation, fines, and reputational damage
• Extreme weather events can potentially damage Mphasis infrastructure and cause disruptions to operations and the company’s supply chain
• Human rights violations can be a business risk

Mitigation Strategies

• Data Privacy Officer (DPO) is appointed
• Data Privacy Office conducts internal audits at least annually
• Annual training is made available to all the employees
• The Board of Directors along with the Chief Ethics and Compliance Officer provides oversight and promotes responsible governance practices
• Our publicly available CoBC, Anti-bribery and Anti-corruption Policy and Anti-Slavery Policy encourage our people to conduct business lawfully, ethically and in the best interest of Mphasis

Supply Chain Management

Supplier Audits: 100% of our suppliers undergo the sustainable procurement procedure of Mphasis

Responsible Procurement

• Sustainable Supply Chain Management Policy
• Supplier Code of Conduct
• Code of Business Conduct (CoBC)
• Anti Bribery and Corruption policy
• Anti-Slavery Policy
• Human Rights statement

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of climate/carbon-linked solutions to its customers

Reporting Standards

Frameworks Used: GRI, NGBRC

Certifications: ISO 14001:2015, ISO 50001, ISO 22301, ISO 27001, ISO 45001, ISO 9001, ISO 37001, ISO 31000

Third-party Assurance: Not Applicable

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Labor and Human Rights
• Governance
• Ethics
• Climate Strategy

Environmental Achievements

• Partnered with United Way of Bengaluru and launched an initiative on World Wetlands Day dedicated to the restoration of mangroves.

Social Achievements

• Partnered with The Akanksha Foundation to impact over 11,100 children from underserved communities through two schools operating under the School Projects in Pune, as well as the Tech Vision program spanning across Pune, Mumbai and Nagpur. Supported The/Nudge Institute, which launched a development action institute with three impact streams. These streams include programs for incubation, startup acceleration and a fellowship program placing senior executives with government officials for 18 months. Partnered with AVAS to launch the ‘Universal Design and Accessibility Walk for Arcause 4.0’.
• Signed the UN Women’s Empowerment Principles as a patron membership of ASSOCHAM
• Certified with the ‘Disability Confident Committed’ Level 1 certificate (United Kingdom)
• Member of the Global DEI Alliance, facilitated by The Times Group

Governance Achievements

• Achieved top quartile across several global industry rankings and assessments in ESG in FY24. Acknowledged by S&P Global, EcoVadis Sustainability Rating and CRISIL ESG Score for its ongoing commitment to upholding standards in Environment, Labor and Human Rights, Governance, Ethics and Climate Strategy.

Climate Goals & Targets

Environmental Challenges

• Geopolitical Risks: Heightened geopolitical tensions and disputes pose a risk of disruption to global operations, including supply chain interruptions. Indirect impact in terms of rising costs, inflation and higher interest rates impacts company growth.
• Technology Obsolescence: Rapid technological advancements may render existing solutions obsolete.
• Business Concentration: Dependency on a few key clients or markets exposes us to the risk of revenue volatility.
• Competition and outsourcing risks: Mphasis faces a risk when the IT units or Global Innovation / Capability Centers (GICs or GCCs) of our existing and potential clients choose to build technology skills in-house instead of outsourcing to technology firms.
• Business delivery: Inefficient business delivery processes or disruptions in service delivery could lead to client dissatisfaction and reputational damage.
• Foreign currency fluctuations: Exposure to fluctuations in foreign exchange rates may impact financial performance and profitability.
• Higher for longer inflation and interest rates: A sustained period of high inflation and elevated interest rates pose a significant threat to our US mortgage loan processing business.
• M&A Risks: Integration challenges arising from mergers and acquisitions could result in operational inefficiencies and cultural mismatches.
• Limited work visas impacting talent supply: Legislative changes that limit the availability of work visas can potentially impact outsourcing.
• Risk of fraud (including bribery): Bribery or other fraudulent practices pose a significant threat to our company's ethical standing.
• Regulatory Compliance: Evolving regulatory landscapes across jurisdictions pose compliance challenges.
• Privacy: Data privacy breaches could lead to legal liability and reputational damage.
• IP Infringement: Intellectual property infringements could lead to legal liabilities and reputational damage.
• Noncompliance to Sanctions Regulations: Different countries periodically announce sanctions regulations and non-compliance to such sanctions can lead to serious risks and penalties.
• Noncompliance with Immigration laws and regulations: Changes to visa regimes can pose a risk of increased cost of operations.
• Disrupted operations: Disruptions to operations due to extreme weather events or environmental disasters may impact business continuity and productivity.
• Physical risks of extreme weather events: Physical risks posed by extreme weather events can impact direct costs and infrastructure.
• Pollution: Environmental pollution can lead to regulatory fines, legal liabilities, and reputational damage.
• Water stress: Water scarcity or stress may disrupt operations and increase costs.
• Climate action failure: Failure to adapt to climate change or contribute to climate action efforts may result in a drop in demand and revenue.
• Diminishing relevance as partner: Inadequate ESG performance may erode trust and credibility with clients.
• Chronic physical risks: Chronic physical risks, such as sealevel rise or heatwaves, may pose long-term challenges to business operations and infrastructure.
• Data and Information Security: Information and cyber security threats are growing.
• Continuity and Disaster Recovery: Increased disruptions due to manmade and natural calamities pose a risk to the enterprise Information Technology infrastructure.

Mitigation Strategies

• Closely monitors developments to ensure we minimize impact of geopolitical risks.
• Consistent investment in technology and R&D, fostering a culture of innovation and strategic partnerships to stay abreast of emerging technologies.
• Client diversification strategy, targeting faster growth in identified accounts.
• Robust project management practices, investment in tools and technology infrastructure for enhanced scalability and reliability.
• Well-established hedging policy to protect from unfavorable currency movements.
• Measures to optimize operational efficiency and implemented cost saving measures to mitigate higher inflation and interest rates.
• Detailed post-merger integration strategies to streamline operations and realize synergies.
• Leverages nearshore centers and offshore delivery to reduce dependency on work visas.
• Comprehensive Fraud Risk Management System consisting of policies and procedures, training and awareness.
• Robust compliance management solution to track compliance across jurisdictions.
• Robust Privacy Risk Management Framework to ensure compliance with relevant requirements.
• Mechanisms to detect and mitigate any infringement of IP rights.
• Comprehensive Trade Sanctions Compliance framework to ensure compliance with sanctions regulations.
• Local campus hiring and offshoring and nearshoring of onsite work to mitigate immigration risks.
• Robust business continuity plans and investment in disaster recovery infrastructure.
• Detailed climate risk assessment and commits to investing in mitigation of physical risk exposures.
• Water conservation initiatives, efficient water management practices, diversification of water sources, and investment in water-saving technologies.
• Integrating climate change considerations into business strategy and operations, investing in renewable energy and carbon reduction initiatives.
• Transparency and disclosure of ESG performance metrics to stakeholders, continuous improvement and innovation to enhance ESG performance.
• Long-term risk assessment and scenario planning to anticipate and address chronic physical risks.
• Robust IT security frameworks, Cyber Security Strategy, ISO 27001 certification, and sophisticated technology security solutions.
• Implementing Disaster Recovery for critical enterprise applications and ISO 22301 certification for Business Continuity Management System.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• extreme weather events
• floods
• hurricanes
• wildfires
• water scarcity

Transition Risks

• regulatory changes
• market shifts
• client demand for environmentally responsible partners

Reporting Standards

Frameworks Used: S&P Global ESG Score, EcoVadis Sustainability Rating, CRISIL ESG Score

Certifications: ISO 14001:2015, ISO 27001, ISO 22301, LEED Platinum, 5-star rating by BEE

Awards & Recognition

• ISG Star of Excellence™ Award in the “Emerging Tech” segment for Artificial Intelligence (AI)
• Best Tech Brands 2023
• India’s Most Sustainable Companies
• Gold Equitable Hiring Award
• Gold Candidate Experience Award
• CFO of the Year
• Transformational Partnership Award
• PeopleFirst HR Excellence Award
• India’s leading ESG companies in Dun & Bradstreet’s ‘ESG Champions of India 2024’ report
• one of the 100 Best Companies for Women in India in 2022
• KelpHR PoSH AWARD® 2022