Industry Focus — Information Technology

ESG for India's Information Technology Sector

From data centre carbon footprint and Scope 3 Category 11 (software products in use) to responsible AI governance and BRSR Core assurance — we help Indian IT companies build ESG programmes that satisfy global clients, SEBI and institutional investors simultaneously.

BRSR CoreGHG ProtocolRE100SBTi ICTISO 27001EU CSRD

₹11.4L Cr

India IT & BPM sector revenue FY24 — ESG data now a top-10 client requirement

43%

of Fortune 500 IT procurement RFPs now include ESG criteria as an evaluation factor

82%

of India IT companies' Scope 2 is from purchased electricity — highest leverage decarbonisation point

2030

net zero commitment deadline for 78% of top 20 Indian IT companies — most lack credible pathways

Material Topics

What ESG topics are most material?

Based on SASB Industrials, GRI standards and our proprietary materiality database across 200+ clients.

D
Critical

Data Centre Energy & Carbon Footprint

IT company Scope 2 emissions are overwhelmingly from data centre electricity. Power Usage Effectiveness (PUE), renewable energy share and Scope 2 market-based vs location-based disclosure are the top investor questions in IT ESG due diligence.

InvestorsGlobal ClientsSEBI
C
Critical

Client ESG Requirements in RFP / MSA

Global technology buyers (BFSI, pharma, retail) embed ESG clauses in master service agreements — requiring verified GHG data, BRSR disclosures and responsible AI policies as contract conditions. IT companies failing ESG RFP criteria are losing deals.

Global ClientsInvestorsProcurement
R
High

Responsible AI & Algorithmic Accountability

Investor ESG frameworks (MSCI, Sustainalytics) are developing AI governance metrics — bias audits, explainability, data privacy and algorithmic impact assessments. SEBI BRSR and EU AI Act both create disclosure obligations.

InvestorsRegulatorsClients
D
High

Diversity, Equity & Inclusion (DEI)

Gender pay gap, women in leadership, PWD hiring ratios and LGBTQ+ inclusion policies are BRSR Core mandatory disclosures — and among the top social metrics weighted by institutional ESG investors in IT.

InvestorsEmployeesClients
S
High

Supply Chain & E-Waste (EPR)

E-Waste Management Rules require IT companies to register as producers and meet Extended Producer Responsibility collection targets. BRSR Core mandates waste generation, recycled content and EPR compliance disclosures.

MoEFCCRegulatorsInvestors
D
Medium

Data Privacy & Cybersecurity Governance

India's DPDP Act 2023 and ISO 27001 alignment are governance KPIs in BRSR and investor ESG scoring. Cybersecurity incidents are classified as G-pillar governance failures — triggering rating agency scrutiny.

MeitYClientsInvestors
Regulatory Landscape

Every regulation that applies to your operations

Framework

BRSR Core (SEBI)

Securities & Exchange Board of India

TypeMandatory
Scope

Listed IT companies in NIFTY 1000. Assured GHG, energy, DEI and governance KPIs — 49 total.

Effective

FY 2023–24

Framework

Digital Personal Data Protection Act (DPDP)

Ministry of Electronics & IT (MeitY)

TypeMandatory
Scope

All digital businesses processing Indian personal data. Consent, data localisation and breach notification obligations.

Effective

2024–25 Active

Framework

E-Waste Management Rules 2022

MoEFCC

TypeMandatory
Scope

IT equipment producers, importers and bulk consumers. EPR collection targets and CPCB registration.

Effective

Active

Framework

EU CSRD — IT Service Providers

European Commission

TypeMandatory
Scope

Indian IT companies with EU subsidiaries or large EU revenue exposure. ESRS double materiality reporting.

Effective

2025–2026

Framework

SBTi ICT Sector Science-Based Targets

SBTi Coalition

TypeVoluntary
Scope

GHG reduction targets aligned to 1.5°C covering Scope 1, 2 & 3 Cat. 11 (products in use). Required by CDP.

Effective

Investor-Driven

Framework

RE100 — 100% Renewable Electricity

Climate Group / CDP

TypeVoluntary
Scope

Corporate commitment to 100% renewable electricity by target year. Required by some global procurement programmes.

Effective

Client-Driven

Framework

EU AI Act

European Commission

TypeEmerging
Scope

Risk-based AI governance obligations for high-risk AI systems sold or deployed in EU. Affects Indian IT and AI companies.

Effective

2025–2026

Framework

NASSCOM ESG Framework

NASSCOM

TypeVoluntary
Scope

Industry ESG reporting framework for IT & BPM sector. Used by small/mid-cap IT companies as BRSR foundation.

Effective

Voluntary

Mandatory — legal obligation
Voluntary — investor / buyer expectation
Emerging — regulatory pipeline
Our Approach

How we work with IT companies

A four-phase programme designed for multi-campus IT operations — from data centre carbon metering to client RFP ESG responses, BRSR Core assurance and responsible AI governance.

01
Step-01

IT-Specific ESG Baseline & Materiality

Full ESG baseline across all campuses and data centres — PUE measurement, energy source mapping, Scope 2 market-based accounting, BRSR Core gap analysis and DPDP / CSRD scope determination.

4–6 Weeks
02
Step-02

GHG Inventory & RE100 / SBTi Target-Setting

ISO 14064-3 verified Scope 1, 2 & 3 inventory. Scope 2 market-based vs location-based, renewable energy certificate (REC) strategy, SBTi ICT target validation and net zero pathway modelling.

6–8 Weeks
03
Step-03

Decarbonisation & DEI Programme Implementation

Solar/wind PPA structuring, REC procurement, data centre energy efficiency audit, DEI programme design with quantified targets and e-waste EPR registration and collection network.

Ongoing
04
Step-04

BRSR Assurance & Client ESG Reporting

Annual BRSR Core assured disclosure with simultaneous client RFP ESG response pack, EU CSRD data set and CDP submission — from a single verified data infrastructure.

Annual Cycle

Typical ESG Maturity Uplift

Renewable Energy Share86%
BRSR Core Score89%
GHG Intensity Reduction↓34%
DEI Score78%
Client ESG RFP Win Rate92%

Certifications We Deliver

ISO 14001ISO 27001RE100SBTi ICTBRSR AssuredCDP A-List
Our Services

What we deliver for information technology

Pulled from all three practice areas — Strategy & Advisory, Finance & Risk, and Governance & Social — filtered for information technology priority.

Priority

GHG Inventory & Data Centre Decarbonisation

ISO 14064-3 verified Scope 1, 2 & 3 inventory with campus-by-campus PUE measurement and renewable energy gap analysis. SBTi ICT target validation and PPA/REC procurement strategy.

Priority

BRSR Core Assurance for IT Companies

End-to-end BRSR Core data collection, KPI calculation (GHG intensity per employee, DEI ratios, e-waste EPR, data privacy governance), narrative drafting and third-party assurance.

Client ESG RFP & MSA Compliance Package

Comprehensive ESG response pack for client RFPs and MSA ESG clauses — verified GHG data, BRSR excerpts, renewable energy certificates and responsible AI policy documentation.

Responsible AI Governance Framework

AI ethics policy drafting, algorithmic impact assessment methodology, bias audit framework and EU AI Act risk classification for high-risk AI systems — aligned to SEBI BRSR governance disclosures.

DEI Programme Design & BRSR Social Compliance

Gender pay gap analysis, women in leadership target-setting, PWD hiring programme design and POSH audit — with quantified DEI KPIs aligned to BRSR Core social disclosures.

Green Data Centre Finance & ESG-Linked Capex

Structuring of sustainability-linked credit for green data centre construction, on-site solar and energy efficiency capex — with KPI ratchets on PUE improvement and renewable energy share.

ESG Benchmarking

Where do information technology companies stand on key ESG metrics?

IT Sector ESG Performance Index

Renewable Energy Share
24%
96%
82%
GHG Disclosure Quality
38%
94%
87%
DEI Reporting Completeness
29%
91%
84%
Client ESG RFP Pass Rate
31%
88%
91%
India Average
Global Best Practice
ESG Astraa Clients

ESG is now a revenue driver, not just a compliance cost

ESG Astraa analysis shows that Indian IT companies with investor-grade ESG programmes are winning 18–26% more enterprise RFPs where ESG criteria are evaluation factors. This is a direct top-line impact.

RE100 targets are now a client procurement condition

Large BFSI and pharma clients are requiring IT suppliers to commit to 100% renewable electricity by 2030. IT companies without a credible RE100 roadmap are being removed from preferred vendor lists.

EU CSRD is arriving for Indian IT via subsidiaries

Indian IT companies with EU subsidiaries above €40M revenue are subject to full ESRS reporting from FY2025. Many are unaware their EU entity triggers the parent company ESG reporting cascade.

DPDP Act creates governance risk equal to GDPR

Non-compliance with India's DPDP Act is classified as a governance failure by ESG rating agencies — equivalent to GDPR violations in severity scoring. Data breach incidents now materially impact BRSR governance scores.

Free Resource

IT Sector ESG Readiness Guide for Indian IT Companies

A practical guide to BRSR Core assurance, GHG inventory, renewable energy strategy and client ESG RFP compliance — with a 12-month implementation calendar for mid-size and large IT companies.

What's Inside

  • BRSR Core KPIs for IT — all 49 data collection templates
  • GHG inventory guide for IT — data centre, campus and Scope 3
  • SBTi ICT pathway — what targets Indian IT companies need to set
  • Client ESG RFP pack — what Fortune 500 buyers measure
  • EU CSRD vs BRSR Core — overlap map to eliminate duplication

Information Technology Checklist

PDF Document

Key Areas Covered
Environment Social Governance

Get your IT Sector ESG Assessment

Our IT ESG team will assess your BRSR Core readiness, data centre carbon footprint and client ESG RFP gaps — and give you a clear priority action plan within 2 weeks.

No commitment · SBTi ICT & CSRD specialists · 2-week turnaround