Infosys published its ESG report 2022-23 (Click Here)
Infosys, one of the world’s leading IT services and consulting companies, has recently published its ESG report for the fiscal year 2022-23. The report showcases the company’s achievements and commitments in the areas of environment, social, and governance (ESG), and how it is creating a positive impact for its stakeholders and the society at large.
Environment: Serving the preservation of our planet
Infosys has been a pioneer in adopting, inventing, and spreading smarter ways to mitigate greenhouse gas (GHG) emissions, reduce energy consumption, manage water and waste, and make the planet stronger by embracing clean tech in its operations and client solutions.
Some of the highlights of Infosys’ environmental performance in 2022-23 are:
➡️ Infosys became a carbon-neutral organization for the fourth consecutive year and achieved a 49.92% reduction in Scope 1 and 2 GHG emissions over the business-as-usual (BAU) scenario.
➡️ Infosys sourced 57.90% of its electricity for its India operations from renewable sources and installed 60 MW of total solar capacity across its campuses.
➡️ Infosys recycled 100% of its wastewater, and created 39 lakes across its campuses, holding 426 million liters of rainwater storage capacity.
➡️ Infosys achieved an energy intensity of 10.96 MWh/US$ million, which is one of the lowest among its peers.
➡️Infosys supported various carbon offset programs that benefited over 240,000 rural families in India through improved livelihoods, health, and education.
Social: Empowering people with digital skilling
Infosys believes that digital skilling is the key to unlocking human potential and creating a more inclusive and equitable society. Infosys has been investing in various initiatives to enable digital skilling for its employees, clients, partners, and communities.
Some of the highlights of Infosys’ social performance in 2022-23 are:
➡️ Infosys provided over 5.5 million training days to its employees and achieved a high retention rate of 94.5%.
➡️ Infosys hired over 50,000 fresh graduates globally and increased the proportion of women in its workforce to 39.4%.
➡️ Infosys launched Infosys Cobalt, a set of services, solutions, and platforms to help enterprises accelerate their cloud journey and digital transformation.
➡️ Infosys enabled 8.5 million learners with digital skilling through various platforms such as InfyTQ, Lex, Wingspan, Open Source Program Office, and Infosys Meridian.
➡️ Infosys empowered over 114 million lives through its Tech for Good programs in e-governance, healthcare, and education.
Governance: Upholding the highest standards of ethics and transparency
Infosys has been committed to maintaining the highest standards of ethics, transparency, and accountability in its business conduct. Infosys has been recognized as one of the world’s most ethical companies by Ethisphere for the third year in a row. Infosys has also been rated as ‘AA’ by MSCI ESG ratings and topped the charts in the CRISIL ESG leadership rankings.
Some of the highlights of Infosys’ governance performance in 2022-23 are:
➡️ Infosys adopted the ISO 27701:2019 standard for privacy information management, becoming one of the first IT companies in India to do so.
➡️ Infosys implemented a robust framework for risk management, compliance, internal audit, and whistle-blower mechanisms.
➡️ Infosys enhanced its board diversity by appointing two new independent directors, bringing the total number of women directors to three out of ten.
➡️ Infosys increased its spending on local suppliers (in India) to 66% of its total procurement spend, supporting local businesses and communities.
➡️ Infosys disclosed its ESG performance by various global frameworks such as GRI Standards, SASB Standards, TCFD Recommendations, and UNGC Principles.
Infosys has demonstrated its leadership in ESG performance by delivering on its vision of earning the respect of its stakeholders and creating a hopeful, progressive shared future. Infosys has also set ambitious goals for 2030, such as becoming net zero carbon, achieving 50% women representation in its workforce, skilling 100 million people with digital technologies, impacting 500 million lives through Tech for Good programs, and enhancing its governance practices further. Infosys is an inspiring example of how businesses can be a force for good in the world.
Why it is important for organizations to disclose their ESG performance?
✅ Transparency and Trust:
⮚ ESG disclosure enhances transparency and trust between organizations and stakeholders.
⮚ Demonstrates commitment to sustainability and social responsibility.
⮚ Addresses environmental, social, and governance challenges.
✅ Performance and Value Creation:
⮚ ESG disclosure improves organizational performance and value creation.
⮚ Identifies strengths and weaknesses in sustainability and ethics.
⮚ Enhances operational efficiency, innovation capacity, customer loyalty, employee engagement, risk mitigation, and stakeholder relations.
⮚ Can lead to better financial outcomes.
⮚ Firms with high ESG ratings outperformed the market during the COVID-19 crisis.
✅ Regulatory and Investor Expectations:
⮚ ESG disclosure meets regulatory and investor expectations.
⮚ Compliance with existing or emerging regulations requiring ESG reporting.
⮚ Avoids penalties or sanctions for non-compliance or poor performance.
⮚ Investors increasingly incorporate ESG factors into investment decisions.
⮚ Attracts capital from socially responsible investors.
⮚ Examples of regulations: Non-Financial Reporting Directive in the EU, potential SEC rules in the US.
✅ Examples of Leading Companies:
⮚ Infosys publishes an annual ESG report.
⮚ Microsoft discloses ESG information on its website.
⮚ Unilever’s Sustainable Living Plan aims to reduce environmental footprint and improve social impact.
⮚ Tesla discloses ESG performance through its Impact Report.