Wipro recognizes the environmental challenges that face humanity today are as critical as are economic imperatives and hence ecological sustainability is an essential part of our approach to responsible corporate citizenship.
Understanding Life Cycle Impacts
To understand the unsustainable dependency of Wipro on vulnerable natural resources, natural capital valuation exercise was conducted. This exercise helped us get an overall integrated environmental impact assessment of our operations and upstream suppliers. Details of the Natural Capital Valuation is covered under the sub section “Lifecycle impacts”.
In addition this, we continue to explore additional and specific quantitative and qualitative metrics to evaluate water (see sub section “Responsible Water Framework”) and waste management in our campuses. We also aim to baseline and set specific goals to reduce our footprint associated with key Scope 3 categories (like emissions from Business Travel and Commute), Ozone depleting refrigerants, indoor air quality and noise pollution. The outcomes of these assessments contribute our program design and stakeholder engagement.
Natural Capital Impacts
Natural capital can be defined as the world’s stocks of natural resources which make human life possible. Businesses rely on this natural capital to produce goods and deliver services. The overall objective of the project, (done in association with Trucost) is to quantity and value the natural capital impacts of Wipro’s IT Services operations and supply chain for the 2016-17 financial year. The valuation looks at our global operational footprint (from energy related emissions, water consumption, air/water pollution, waste generation and management, land use change) and upstream value chain impacts from business travel, employee commute and the embedded natural capital in all goods and services we procure. Operational data, business data and employee commute valuation is derived from on actual data, extrapolated for a few global locations and environmental categories. The natural capital embedded in goods and services is primarily based on valuation methodology that is based on Trucost’s econometric Input-Output model which takes into account spend across different sub-categories of procurement.
In the 2016-17 financial year, the natural capital valuation of the environmental impacts relating to Wipro’s operations and supply chain was equal to INR 11,476 million (2% of Wipro’s revenue and 7 % of Wipro’s profit in the same period). The largest contributions came from GHG emissions (46%), water consumption (25%) and air pollution (19%).
In terms of GHG emissions, although Scope 3 emissions increased in some areas, this was offset by a marked decrease in Scope 1 & 2 emissions, leading to a decline of nearly 10% year on year. Water consumption meanwhile showed a substantial increase year on year (26%) with most of this attributable to supply chain water consumption. The overall natural capital valuation remained flat from the 2015 -16 financial year and up 14% since 2013-14.