We abide by environmental regulations wherever we operate, resulting in zero non-compliances or incidents. Recognising the urgent challenge posed by climate change, we are committed to adopting sustainable practices in our operations. We aim for optimal resource utilisation, and our water and waste management strategies embrace the 3R principle of reduce, reuse and recycle.
Apart from driving energy and carbon emission reduction projects for over a decade, we are focused on creating socioeconomic value for all stakeholders, including our clients, business partners, communities and so on. With a robust climate change strategy in place, we have emerged as industry leaders in mitigating the risks of energy transitions as well as capitalising on the opportunities that they offer. We strive to achieve Net Zero emissions, thereby minimising our environmental footprint and contributing to global climate action.
Improve energy intensities for our facilities and data centres through energy efficiency improvements
Improve emission intensities by switching to renewable sources of energy
Develop low-carbon products and solutions for our customers
Develop community based carbon offset programmes
Reduce upstream, downstream and supply chain-based emissions
Reduce employee and business commute related- emissions by introducing EV’s and other cleaner fuel options
Decarbonise Scope 1 (Diesel-based) emissions
Take an active and constructive role in evolving climate change policy and solutions with governments, industry associations and communities
Tata Communications prioritises energy efficiency by streamlining operations, exploring IoT usage, and switching to LED lighting. The Indian operations team enhances HVAC, SMPS, and UPS effectiveness, reducing costs and energy consumption. Best practices include setting the air conditioner to 24 degrees and installing grill tiles in front of the Active Equipment Rack. These efforts are a reflection of our sustained commitment to optimising energy efficiency and raising sustainability awareness across all our global operations.
In FY23, 130 energy-saving opportunities were identified. Projects on Heating, Ventilation and Air Conditioning (‘HVAC’), Switched-Mode Power Supply (‘SMPS’) and Uninterruptible Power Supply (‘UPS’) efficiency enhancement / optimisation and consolidation, Smart Lighting (Conversion of conventional lighting into LED), and usage of IoT. Facilities Infrastructure Management (FIM), India completed 118 out of 130 projects, which resulted in 6.56 million kWh in energy savings (cumulative) and 794,125 USD (INR 6.38 crore) in energy cost savings.
Our Metro Access Network (MAN) and National Long Distance (NLD) teams completed 23 energy efficiency projects, resulting in an energy savings of 103,200 kWH and a cost savings of ~ 10,331 USD (INR 8.3 lakh).
Energy efficiency opportunities identified in FY23
of energy savings
energy efficiency project completed
(6.46 crore)Cost savings
We installed Passive Infrared (PIR) sensors in meeting and conference rooms to automate the control of lighting and HVAC systems, thus reducing energy consumption. These sensors detect occupancy, enabling automatic adjustments, eliminating manual intervention and improving equipment efficiency. The process involved site analysis, BOQ preparation, vendor technical evaluation, installation and monitoring. The initiative yielded substantial energy savings. At our Tata Communications Dighi Pune location, PIR sensors led to a monthly power savings of 150 kWH, resulting in an annual cost savings of USD 230.7 (INR 18,540) and an ROI of 3.87 months. We addressed challenges like the sensor’s sensitivity to movement through careful installation and monitoring, showcasing the cost-effectiveness of this sustainable solution.
Annual power saving
(INR 18,540) yearly savings
*For FIM operations, the reduction is calculated based on the actual performance of initiatives. The projects implemented on the ground are monitored through energy meters, which then give the difference between the consumption figure with the project and without the project.
In the case of MAN and NLD savings calculations, assumptions have been made on the average savings provided by the energy-efficient equipment over the current ones, which are then multiplied by the capacity of the equipment.
#Revenue considered for calculations of Energy and GHG intensity is US $2,040 million which excludes the subsidiaries businesses of Tata Communications
To address high power consumption, we implemented light motion sensors to optimise energy consumption and improve overall efficiency. By installing these sensors in workspaces, we automated light switching to conserve energy and enhance operational excellence.
The installation of 550 sensors resulted in a monthly power savings of 32.73% and an individual sensor power savings of 26.24%. This initiative not only reduces electricity consumption but also aids in cost savings. The implementation of light motion sensors has led to user-friendly, energy-efficient and cost-effective solutions that reduce our environmental footprint.
Monthly power saving
The successful implementation of Variable Frequency Drives (VFD) in the Air Handling Unit (AHU) of a CMB building aimed to improve the workplace environment, reduce energy consumption and automate the HVAC system to achieve operational excellence. Prior to the project, the building’s AHU system lacked a VFD and an automatic temperature controller, leading to temperature disruption, increased energy consumption and higher equipment maintenance requirements.
Monthly energy saving
The plan of action included installing a VFD-based pump, automating the HVAC system and continuously monitoring and regulating the process to ensure optimal performance. The project was executed in a phased manner with regular assessments and reviews.
As a result, the VFD implementation facilitated effective AHU control, such as smooth starting, acceleration and deceleration time, motor reversal, harmonic reduction and increased power factor. This led to a significant reduction in energy consumption and costs. Comparing energy consumption before and after VFD implementation resulted in exceptional monthly savings, equating to an 83.6% reduction in energy usage, highlighting the effectiveness of the VFD-based pump and HVAC automation solution.
We launched an initiative to identify and remove underutilised server racks in our International Transmission Management Centre (ITMC) across five locations in North India, emphasising our commitment to energy efficiency. This led to the removal of 60 racks, reducing daily energy consumption by 413 kWH and saving INR 1,44,000 monthly. By navigating challenges like missing cable tags and tracing cables, our FIM, India and active infra teams executed this energy-saving strategy effectively. This strategic approach, apart from reinforcing our dedication to environmental sustainability, freed space and resources for new equipment and lowered the operation of precision air conditioning units, further decreasing energy consumption and costs.
Energy saved per day
Tata Communications has upgraded its data centres to improve Power Unit Effectiveness (PUE) due to rising computational ability demand. The facilities infrastructure management team oversees 25 critical networks and business locations, while the international operations team works to achieve optimal PUE benchmarks. Notable progress has been made by renovating the building management systems, adopting energyefficient cooling solutions and achieving a 3% reduction in power consumption compared to the previous year.
Average PUE in 22-23
A significant portion of our global electricity requirement is derived from renewable energy sources. This is in line with our commitment to reducing carbon emissions and promoting sustainable practices. In the years ahead, we will continue to focus on exploring new avenues to increase the share of renewable energy in our energy mix.
Of the electricity used in FY23 came from renewable sources
In the fiscal year 2023, we successfully procured 8.4 million units of solar power for our Dighi, Pune campus, marking another milestone in our journey to operate sustainably. On the international front, we signed a contract to purchase renewable energy certificates from Portland General Electric Company for our Portland and Hillsboro facilities, totalling around 6 million units. Moreover, we recently completed the first solar power operating expense (OPEX) model project in Seixal, Portugal, where solar energy power generation is equivalent to approximately 44% of the site capacity. We expect to finish its implementation in the first quarter of FY 2024.
We understand the potential consequences of climate change caused by GHG emissions. Our operational carbon footprint is closely linked to energy consumption and the source of energy. We are continuously working towards reducing our carbon footprint at the operational level, and have significantly improved our GHG intensity to 40.72 (metric tonnes of CO2 per million US$ revenue), a 10% improvement from FY 2022.
We have an accounting mechanism to calculate our GHG emissions i.e., Scope 1 (emissions from DG sets, energy, and emissions from refrigerant gases, waste treatment in own facilities) and Scope 2 (emissions from purchased electricity) data, in accordance with the GHG Protocol Corporate Accounting and Reporting Standard.
For FY 22-23, our Scope 3 emissions amount to 128,251 metric tonnes of CO2e* from business travel, employee commute, waste water, treated in municipal facilities, waste recycling, purchased and capital goods, downstream transportation and distribution, fuel related activities, and upstream leased assets.
Reduction in Scope 1 and Scope 2 emission from Base year 2020
We emphasise developing innovative, low-carbon products and solutions that connect our business, the environment and society seamlessly. By offering green solutions to our clients, we assist them in becoming more competitive and sustainable in their supply chains. Our low-carbon products and solutions have the potential to significantly reduce GHG emissions.
To help our clients save energy and lower their GHG emissions, we offer a variety of low-carbon products and services, including our network, the Internet of Things (IoT), the Manufacturing Execution System (MES), the cloud and business collaboration streams. In FY 2023, the potential GHG emission reductions through our Company’s low carbon products and solutions were around [33,54,004 ] metric tonnes of CO2e. This works out to an estimated carbon savings of 16 times the emissions produced by the operations of Tata Communications in FY 2022-2023.
Reduces through low carbon products and solutions in FY 2023
We remain steadfast in our commitment to mitigating the risks of climate change and kindling a positive change within the communities in which we operate. We have undertaken an extensive baseline and community needs assessment to identify viable carbon offset projects. Through this approach, we have identified projects that have been evaluated on a financial and operational level and are aimed at improving cook stoves and plantations. Our unwavering focus on these initiatives underscores our role as a socially conscious corporate entity.
Household pollution from traditional chulhas in India is mitigated through improved cook stoves distributed in Meghalaya, Odisha and Jharkhand. Implemented in collaboration with local partners, these projects aim to reduce greenhouse gas emissions and improve cooking solutions. We plan to generate 95,000 tonnes of Community based Carbon Credits by FY 2030.
Cookstoves were distributed in FY23
This is an afforestation/reforestation project to restore degraded and fallow land in Maharashtra, India. The project also aims to improve farmers’ living conditions, conserve biodiversity, sequester atmospheric carbon dioxide, and mitigate climate change. The registration of these projects under Verified Carbon Standards (VCS) will be completed in FY 2024. We plan to generate 95,000 tonnes of community based Carbon Credits by FY 2030.
Trees planted in FY23
Land covered
As part of our Scope 3 emissions accounting, we have assessed that emissions from our suppliers constitute a significant portion of our carbon footprint. Our top suppliers, who account for 60% of our procurement budget, have been identified as key contributors to these emissions. To address this concern, we have developed a Sustainable Supply Chain Framework and are currently exploring additional avenues to engage with our suppliers. For more information, refer to the Sustainable Supply Chain section.
CDP supplier engagement rating, 2022
We are considering several strategies to reduce emissions from our suppliers, such as campaigns to educate them about climate change and the measures they can implement to reduce their carbon footprint. Additionally, we intend to drive innovation that can lessen the carbon footprint of our suppliers and urge them to respond to the yearly CDP questionnaire. We collaborate with our suppliers to create new products, processes and technologies that can contribute to our shared objective of achieving net-zero emissions.
Recognising the environmental impact of our diesel-based vehicle fleet, we are actively transitioning towards cleaner travel alternatives such as electric and CNG vehicles to reduce our Scope 3 emissions. We have introduced electric vehicles for business travel in India, leading to a 64% reduction in GHG emissions. To further support this, we are working on installing more charging stations at our facilities. Moreover, we are trategizing to cut short-haul flight emissions in the UK and EU by promoting rail travel, which can decrease emissions by 97%. Additionally, we are collaborating with partner airlines to purchase Sustainable Aviation Fuel (SAF) to contribute towards cleaner aviation fuel usage.
We use diesel generators as power backup to ensure a continuous supply of energy in case of grid energy outages, which contributes to these emissions. To fulfil our objectives of decarbonisation, we are seeking alternatives that are both energy efficient and emission-free. Alternatives include battery energy storage systems, supporting decarbonisation objectives by eliminating diesel usage and enabling on-site grid energy storage, reducing environmental impact and supporting facilities. This approach assists us in accomplishing our ambition of providing a better and more efficient energy source for operating our facilities and supporting infrastructure while also reducing our environmental impact.
We nurture our advocacy relationships to successfully address regulatory and institutional challenges, particularly those affecting the renewable energy sector. At Tata Communications, our climate action teams have envisaged comprehensive roadmaps and have several initiatives in the pipeline. We are actively seeking partnerships and expert opinions to bolster our endeavours. These interventions will undoubtedly augment the capabilities of our internal teams, resulting in the expansion of our climate action pursuits.
As a Company committed to addressing climate change, we recognise the significance of honest voluntary disclosures and the reporting of our climate response. We comply with various forums and reporting standards, such as the Global Reporting Initiative (GRI), International Integrated Reporting Framework (IIRF), Business Responsibility and Sustainability Report (BRSR), Carbon Disclosure Project (CDP) and EcoVadis. This enables us to publicly interact with our stakeholders and inform them about our performance in a more transparent way.
