Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Installed 220KW Rooftop solar system in its Siruseri Campus, generating 3,17,061 Units and avoiding 190 tons of CO2 emission. Saved 7920KL of water per annum.
• Wind energy to the tune of 84 lakh units is availed in year 2017 through 3rd party Private power agency. About 3 lakh Units are saved in year 2017 by running low capacity air cooled screw chillers instead of high capacity water cooled centrifugal chillers.
• Sewage Treatment Plant water is treated and used for gardening @160KL per day (working day). In year 2017, 46694KL STP treated water is recycled and reused.

Social Achievements

• Added 1,590 employees during FY 17, taking the company’s employee strength to 13,705, with 26.85% of the workforce being women.
• Launched an exclusive High Performers Club (HPC) programme during FY 17.
• Over 4,384 employees participated in ‘Brainbox’ to post nearly 1096 ideas for helping the company save time and money.
• Various CSR initiatives including Smile Twin e-Learning Programme, V-Excel Trust Vocational Training Programme, Rainbow Home, Apne Aap Women’s Collective (AAWC), Pankh–Vocation Training for People with Disability, Space Kidz India, Antar Bharti Balgram Yojna, Yuva–Evolution, Fulfil a Kid’s Wish, HexaRun-For Greener Tomorrow, Tree Plantation, Hexaware – Scholarship for School and College students, Portable Ventilator, Clean and Safe Neighbourhood.

Governance Achievements

• Won various awards and recognitions including UXINDIA’s Gold DesignX 2017 Award, GSA Awards UK 2017, Whitelane Research and PA Consulting Group, Everest Group PEAK Matrix™, Nelson Hall’s Cloud-based HR Services NEAT Report 2017, Nelson Hall NEAT Report for RPA & AI in Banking 2017, Information Services Group (ISG), Kamikaze Media’s Customer Loyalty Awards.

Climate Goals & Targets

Environmental Challenges

• Regulatory and Compliance Risk (H1B visas, regulatory changes)
• Information and Cyber Security Risk (sophisticated attacks, ransomware)
• Competition from peers
• Talent unavailability
• Data Privacy Risk
• HR Related Risk (attrition)
• Technology Risks (obsolescence)
• Industry risk (sectorial downturn)
• Revenue concentration risk (geography, clients)
• Foreign currency risks
• Disaster Recovery/Business Continuity
• Liquidity risk
• Credit risk

Mitigation Strategies

• Well-defined regulatory compliance framework, global offices, nearshore delivery centers (Mexico), focus on local workforce, management trainees from US universities, expansion in Europe.
• Matured Information Security Management System, investment in security technologies, ISO 27001 certification, external audits, Business Continuity Plan.
• Strengthening strategic partnerships, global service capabilities, long-standing client relationships, expansion of onsite presence, differentiated services.
• Processes and tools for resource monitoring, upskilling/reskilling, centralized resource forecasting, targeted hiring.
• Robust data protection measures, privacy impact assessments, training, data mapping, incident management.
• Effective people management systems, low attrition rate (13.1%), robust training framework.
• Competencies in various technologies, platforms, continuous technology review and upgrade, investment in new-age technologies.
• Diversified business verticals, balanced revenue concentration (43.5% BFSI, 56.5% other verticals), differentiated solutions within verticals.
• Expansion of onsite presence, new centers in Europe, focus on markets other than US, dedicated sales teams.
• Close monitoring of currency movements, structured hedging program.
• Structured business continuity management plan, recovery sites, intra-city redundancies, work from home.
• Zero-debt company, efficient cash conversion ratio (above 70%), high cash and bank balances.
• Effective receivable management system, low DSO (50 days), focused review of unbilled revenue, diverse client portfolio.

Supply Chain Management

Responsible Procurement

• Priority given to local and small producers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Ind AS

Certifications: ISO 9001-2015, ISO 27001:2013, ISO 20000-1:2011, CMMI - DEV & SVC Version 1.3 - Level 5, ISAE3402, SSAE16 SOC-2 Type II

Third-party Assurance: Price Waterhouse Chartered Accountants LLP

Awards & Recognition

• Golden Peacock Award for excellence in Corporate Governance (2011, 2015)
• World HRD Congress award (Organization with Innovative HR Practices, CSR, Dream Company to Work For, Fun at work)

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility
• Corporate Governance
• Employee Well-being
• Environmental Sustainability

Environmental Achievements

• Installed 421KW Roof Top solar system in Siruseri campus and 114KW at Mumbai MBP, avoiding 279 tons of CO2 emission.
• 85% of energy consumed at Chennai campus is from Green Power.
• Sewage and wastewater treated and reused for gardening.

Social Achievements

• Employee engagement survey (EMPOOWER) showed an increase in overall rating to 3.74 from 3.66 in 2017.
• Launched several employee development programs (Catapult, Challenger, Distinguished Engineers, EVOLVE, Brainbox, Yuva).
• Invested ` 90.46 Million towards CSR activities.

Governance Achievements

• Won the Golden Peacock Award for Excellence in Corporate Governance.
• Implemented a well-defined Enterprise-wide Risk Management (ERM) framework.
• Maintained high levels of corporate governance compliance.

Climate Goals & Targets

Environmental Challenges

• Regulatory and compliance risks (H1B visas, etc.)
• Information and cyber security risks
• Competition from peers
• Talent unavailability
• Data protection and privacy risks
• Increased cost of services
• Technology risks/business model changes
• Industry risks
• Revenue concentration risks (geographic and client)
• Foreign currency risks
• Disaster recovery/business continuity
• Liquidity risks
• Credit risks
• Reputation risks

Mitigation Strategies

• Established several offices abroad, hiring local workforce, nearshore projects.
• Matured Information Security Management System, ISO 27001 certified.
• Strengthened strategic partnerships with clients, expanded global presence.
• Processes and tools for resource monitoring, upskilling/reskilling, automated recruitment.
• Strategies to ensure Privacy & Data Protection Framework.
• Improved operating efficiency (cost control, employee mentoring, etc.)
• Continuous technology upgrades, investment in new technologies, employee training.
• Diversified revenue streams across sectors.
• Expanded onsite presence, increased focus on non-US markets.
• Structured hedging program.
• Structured business continuity management plan.
• Maintained efficient cash conversion ratio, zero-debt company.
• Effective receivable management system.
• Regular media monitoring, proactive communication with stakeholders.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Ind AS

Certifications: ISO 9001-2015, ISO 27001:2013, ISO 20000-1:2011, CMMI - DEV & SVC Version 1.3 - Level 5, ISAE3402, SSAE16 SOC-2 Type II

Third-party Assurance: BSR & Co. LLP

Awards & Recognition

• Golden Peacock Award for Excellence in Corporate Governance (2011, 2015, 2018)
• Various other awards mentioned on page 24

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Governance

Environmental Achievements

• Reduced energy consumption by 43%
• Reduced water consumption by 34%
• GHG emission reduced by 3,613 MTCO2e

Social Achievements

• Employee Delight Score hit an all-time industry high of 84.3
• Certified as a Great Place to Work
• 822 ideas implemented through Brainbox, generating savings of over US$ 31.04 million and saving around 427,803 hours of effort

Governance Achievements

• Highest revenue, EBITDA and cash flow conversion to date
• Strict compliance with corporate governance laws, regulations and policies
• Separation between the role of the Chairman of the Board and the Chief Executive Officer

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting business operations
• Talent availability
• Increased service cost
• Competition
• Technology change
• Revenue concentration
• Disaster recovery/business continuity
• Data protection and privacy
• Regulatory and compliance
• Information and cyber security
• Human resource related

Mitigation Strategies

• Activated Business Continuity Policy and Crisis Management Standards
• Formed a cross-functional taskforce
• Maintained regular communication with clients and partners
• Engaged with employees to provide emotional support and health guidance
• Robust risk management policy
• Mitigation plans for key risks

Supply Chain Management

Responsible Procurement

• Sustainable sourcing
• Preference to local vendors
• Supplier risk management guidelines

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards – The Core Option

Certifications: ISO 14001, ISO 9001-2015, ISO 27001:2013, ISO 20000-1:2018, CMMI - DEV Ver 1.3 - Level 5, ISAE3402, SSAE16 SOC-2 Type II, ISO 22301

UN Sustainable Development Goals

• SDG 7
• SDG 13

Awards & Recognition

• HKVCA ESG Award of Excellence (2019)
• Golden Peacock Award for Excellence in Corporate Governance (2018)
• Platinum LEED Rating (Pune Campus, 2018)
• 4 World HRD Congress awards (2017)
• Honours at the Global Training & Development Leadership Awards 2021
• Rank No. 1 for ‘Business Understanding’, Cloud Capability & Account Management Quality and for Contractual Flexibility in Whitelane’s latest IT Sourcing Study
• Outsourcing Innovation & Strategic Enabler of the Year 2020
• World HRD Congress 2021 awards
• Learning & Development Influencer Summit & Awards 2021 awards

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• 72% of total energy consumed in Mumbai, Chennai, and Pune locations was from renewable energy.
• 98% of total energy consumed at the Chennai campus is from green power.
• 1,563 KW total installed solar capacity at India offices.
• Avoided 1,787 tonnes of CO2 emissions due to solar energy.
• Energy consumption per employee decreased by 39%.
• Scope 2 emissions decreased by 43.48%.
• Scope 1 & Scope 2 emissions per employee decreased by 39.28%.
• Water consumption per employee decreased by 49%.
• 30% reduction in total water consumption.
• 21% of overall water used was recycled.
• Chennai and Pune campuses are zero-water discharge campuses.
• Restored six water bodies, benefiting over 30,000 people and conserving 89.30 million liters of water.
• 100% of e-waste was sent to authorized vendors.
• Recycled 1168.90 KGs of paper waste.

Social Achievements

• Certified by Great Place to Work® in India.
• Mobiquity certified by Great Place to Work® in the U.S.
• Mobiquity added two weeks to paid parental leave policy.
• 70% of employees in APAC are recruited locally.
• Average 29.22 hours of training per employee provided.
• 5000+ employees trained on AI, ML, and other emerging technologies.
• 7000+ employees participated in the Hexaware Healthy Habits Initiative.
• Received the ‘Most Inclusive Employer’ Award.

Governance Achievements

• Established a whistle-blower policy.
• Framed an anti-bribery policy.
• Held at least four board meetings each year.
• Board of Directors includes two women directors.
• Implemented a robust risk management framework aligned with ISO 31000:2018 & COSO ERM 2017.
• Information security management system and cybersecurity practices are certified for ISO 27001.
• Business continuity practices are certified with ISO 22301:2019.

Climate Goals & Targets

Environmental Challenges

• Cybersecurity threats.
• Integration of acquired entities.
• Service delivery competition.
• Increased cost of services.
• Business continuity and disaster recovery.
• Data protection and privacy.
• Revenue concentration.
• Regulatory and compliance risks.
• Talent availability and retention.

Mitigation Strategies

• Educating individuals to prevent network assaults.
• Upgrading security policies, processes, and guidelines.
• Migrating to latest EDR/XDR technology and SASE-based solution.
• Implementing a layered security approach.
• Conducting regular vulnerability assessments and penetration testing.
• Implementing a business continuity and disaster recovery management process.
• Achieving ISO 22301:2019 certification for Business Continuity Management System.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable Procurement Policy
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Opportunities

• Increased adoption of renewables

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact

Certifications: ISO 14001, ISO 27001, ISO 22301:2019

Third-party Assurance: Price Waterhouse Chartered Accountants LLP

UN Sustainable Development Goals

• 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 12, 13, 16, 17

Various initiatives contribute to these goals through education, skill development, healthcare, environment, sports, and disaster relief.

Sustainable Products & Innovation

• Amaze ESG platform

Awards & Recognition

• ISG Star of Excellence Awards™
• Golden Peacock National Training Awards
• World HRD Congress awards
• L&D Influencer Summit awards
• HCM Excellence Awards
• Sydney Hills Local Business Awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Governance
• Community Engagement
• Supplier Sustainability

Environmental Achievements

• 36% reduction in GHG emissions through renewable energy consumption
• 88% of total energy consumed at the India campus is fed from green power (wind and solar)
• 30% of the total energy consumed at the Chennai campus comes from green power (wind & solar)
• 9 LEED-certified owned office spaces in India, 1 in Philippines, 1 in Poland
• Chennai and Pune campuses are zero-water discharge campuses
• 1,748 tons of CO2 reduction

Social Achievements

• Launched employee well-being programs (Hexacare, counseling services)
• 35 hours of average training per employee
• INR 127 million spent on CSR initiatives benefiting 53,143 lives
• 33% women in the workforce
• 88% of new hires globally identify as women

Governance Achievements

• Established robust enterprise risk management framework
• Implemented a strong anti-bribery and anti-corruption program with zero reported cases
• 100% employee coverage of code of conduct training
• Zero cases of data breaches

Climate Goals & Targets

Environmental Challenges

• Cybersecurity and data privacy risks
• Talent availability and retention
• Increased cost of services
• Data protection and privacy
• Business continuity and disaster recovery
• Competition
• Service delivery
• Revenue concentration
• Complex and changing global and local regulations
• Climate risk
• Water scarcity
• Waste management

Mitigation Strategies

• Implemented critical security initiatives, vulnerability assessments, penetration testing, ISO 27001:2013 certified ISMS
• Hire Train Deploy (HTD) model, employee training and development, monitoring social platforms
• Controlling operating costs, monitoring subcontractors
• Robust data protection measures, privacy impact assessments
• ISO 22301:2019 BCMS certification, business continuity management plan
• Increased service offerings, nurturing customer relationships, restructuring business
• Customer delight surveys, project health index tracking
• Diversifying markets, monitoring revenue contribution of top customers
• Well-defined compliance framework, compliance tool
• Increased usage of renewable energy, rainwater harvesting, solar panels
• Water Management Policy, rainwater harvesting, sewage treatment plants
• 4Rs of waste management (Reduce, Reuse, Recover, Refurbish), waste segregation

Supply Chain Management

Supplier Audits: 100% critical suppliers to be screened by 2025

Responsible Procurement

• Sustainable Procurement Policy
• Supplier Code of Conduct (SCoC) based on UNGC principles
• ESG assessment of critical vendors

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and services
• Transition to low-carbon operations
• Alignment with local communities

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB for Software and IT Services industry, UNGC, UN SDGs

Certifications: ISO 14001:2015, ISO 45001, ISO 27001:2013, ISO 22301:2019, LEED

Third-party Assurance: Price Waterhouse Chartered Accountants LLP (Limited Assurance)

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 10
• Goal 11
• Goal 12
• Goal 13

Various programs align with these goals as detailed in the report

Sustainable Products & Innovation

• Amaze® ESG solution
• RapidX software engineering platform
• Tensai® platform

Awards & Recognition

• Impactful Learning Programme of the Year
• Best Talent Development Strategy of the Year
• Best Organisational Development Programme
• Digital Learning Transformation Award
• Innovation in Learning Award
• Gold Award for Best Learning Programme Supporting a Change Transformation Business Strategy
• Bronze Award for Best Advance in Senior Manager Development
• Gold Award in Talent Acquisition for Best Social Talent Acquisition Strategy
• Bronze medal from EcoVadis
• High ESG adoption scores in Neo Group’s ESG Adoption Survey

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced GHG Scope 1 and 2 emissions to 12,176.2 tCO2e in 2023
• 39% of total energy consumed was sourced from renewable sources (wind and solar)
• Solar systems generated significant power at Chennai, Mumbai, and Pune locations
• Maintained single-use plastics-free campuses

Social Achievements

• Trained 80.4% of employees in digital and new technologies
• 33% of Hexaware’s workforce in 2023 were women
• Positively impacted 63,105 lives through CSR initiatives

Governance Achievements

• All new employees completed ESG training
• Maintained zero data breaches annually
• Maintained 100% employee coverage in information security awareness/training and code of conduct training

Climate Goals & Targets

Environmental Challenges

• Cybersecurity risks due to hybrid work models and digital technologies
• Talent availability and retention in a rapidly evolving tech landscape
• Increased cost of services
• Business continuity and disaster recovery risks
• Data protection and privacy risks
• Competition from other IT services providers
• Service delivery risks due to remote work
• Regulatory risks due to global operations
• Revenue concentration risk

Mitigation Strategies

• Upgraded security policies, processes, and technologies (EDR, SASE, SIEM)
• Internal vulnerability assessments and penetration testing
• ISO 27001:2013 certified Information Security Management System
• Expanded hiring into Tier 2 cities
• Internal training programs (SONIC)
• Lowered operating costs, monitored budgeting
• Swapped subcontractors with full-time employees
• Implemented ISO 22301:2019 certified Business Continuity Management System
• Cloud computing for data retrieval and business continuity
• Comprehensive data protection framework (GDPR, HIPAA, PCIDSS)
• Security awareness training for employees
• Augmented portfolio with cutting-edge technologies
• Restructured business into service lines
• Strengthened partner ecosystem
• Daily status reporting tool for service delivery
• Clear compliance framework for regulatory norms
• Diversification of client portfolio and markets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD, UNGC

Certifications: ISO 14001:2015, ISO 45001:2018, ISO 27001:2013, ISO 22301:2019, ISO 50001:2018

Awards & Recognition

• EcoVadis Bronze medal
• Sustainalytics ranking 6th out of 1,105 software and services companies globally
• ISG Star of Excellence Award™ in the Universal Emerging Technology category