HCLTech has accelerated its sustainability strategy by reducing absolute Scope 1 and Scope 2 greenhouse gas emissions by 55.84 percent from its FY20 baseline, achieving its Science Based Targets initiative-validated FY30 goal four years ahead of schedule.
HCLTech Sustainability Report 2025-26 indicated that the early achievement strengthens HCLTech’s commitment to reach net-zero greenhouse gas emissions across its value chain by 2040. The technology services company is now expected to place greater emphasis on Scope 3 emissions, renewable energy, operational efficiency and value-chain transformation.
HCLTech had initially targeted a 50 percent reduction in absolute Scope 1 and Scope 2 emissions by FY30 from the FY20 baseline. It is also working toward a 42 percent reduction in absolute Scope 3 emissions by FY30.
Both its near-term and long-term climate targets have been validated by the Science Based Targets initiative.
HCLTech Scope 1 and Scope 2 Emissions Decline in FY26
HCLTech’s Scope 1 emissions declined to 12,084.58 metric tonnes of CO2 equivalent in FY26, from 12,900.50 tonnes in FY25.
Market-based Scope 2 emissions fell to 86,864.44 metric tonnes of CO2 equivalent, compared with 109,074.02 tonnes in the previous financial year.
Combined Scope 1 and Scope 2 emissions consequently decreased to 98,949.02 metric tonnes of CO2 equivalent, from 121,974.52 tonnes in FY25.
The company’s combined Scope 1 and Scope 2 emissions intensity improved to 0.076 metric tonnes of CO2 equivalent per Rs 1 million of turnover, from 0.10 tonnes.
Emissions intensity adjusted for purchasing power parity declined to 1.55 metric tonnes of CO2 equivalent per US$1 million of turnover, from 2.13 tonnes. Annual emissions intensity per capita improved to 0.42 metric tonnes of CO2 equivalent, compared with 0.52 tonnes in FY25.
Scope 3 Emissions Remain the Next Decarbonization Challenge
Scope 3 emissions reached 314,411.11 metric tonnes of CO2 equivalent in FY26, up from 269,567.38 tonnes in FY25.
Scope 3 emissions intensity increased to 0.24 metric tonnes of CO2 equivalent per Rs 1 million of turnover, from 0.23 tonnes. Annual Scope 3 emissions intensity per capita also increased to 1.33 metric tonnes of CO2 equivalent, compared with 1.14 tonnes.
Despite the year-on-year increase, HCLTech reported that its absolute Scope 3 emissions were 9.56 percent below the FY20 baseline. The company aims to extend this reduction to 42 percent by FY30.
The contrast between falling operational emissions and rising annual Scope 3 emissions highlights the complexity of decarbonizing HCLTech’s wider supply chain, employee travel, procurement and other indirect activities.
Renewable Energy Share Rises to 49.79 Percent
Renewable energy accounted for 49.79 percent of HCLTech’s total global energy consumption in FY26, rising sharply from 34.38 percent in FY25.
The company aims to source 80 percent of its electricity from renewable energy by 2030. Renewable sources already supplied 89.65 percent of the energy used by HCLTech’s data centres, indicating strong clean-energy adoption across one of the company’s most energy-intensive operational areas.
Renewable energy consumption increased to 456,327.52 gigajoules in FY26, from 323,444.62 gigajoules in the previous year.
HCLTech sourced 125,208.82 MWh of renewable energy globally. Its facilities in India accounted for 69,896.43 MWh, including 3,023.87 MWh generated by onsite solar plants. International operations sourced another 56,861.22 MWh.
Renewable-energy adoption helped HCLTech avoid 61,738.38 metric tonnes of CO2 equivalent emissions. India accounted for 49,626.446 tonnes of avoided emissions, while international operations contributed 12,111.93 tonnes.
HCLTech Cuts Total and Non-Renewable Energy Consumption
Total energy consumption declined to 916,465.19 gigajoules in FY26, from 940,692.98 gigajoules in FY25.
Compared with its FY20 baseline, HCLTech has reduced total energy consumption by 31 percent and non-renewable energy use by 56 percent.
Non-renewable energy consumption fell to 460,137.67 gigajoules, from 617,248.36 gigajoules in the previous year.
Energy intensity improved to 0.70 gigajoules per Rs 1 million of turnover, compared with 0.80 gigajoules. Energy intensity adjusted for purchasing power parity declined to 14.32 gigajoules per US$1 million of turnover, from 16.42 gigajoules.
Annual energy consumption per capita decreased to 3.87 gigajoules, from 4.01 gigajoules.
Solar Projects Expand HCLTech’s Renewable-Energy Portfolio
HCLTech is expanding onsite renewable generation through rooftop solar installations at multiple campuses.
An 80 kWp rooftop solar plant at Vijayawada SEZ is expected to generate 116.8 MWh of electricity annually. A 350 kWp rooftop facility at the Bengaluru Jigani campus is projected to generate 500 MWh annually.
The company has also installed a 73 kWp rooftop solar plant at its Madurai campus, with estimated annual generation of 25 MWh to 30 MWh.
These projects complement HCLTech’s renewable-energy procurement through power purchase agreements and open-access group captive arrangements.
Energy-Efficiency Projects Deliver Measurable Emissions Savings
Operational efficiency initiatives across HCLTech campuses generated additional energy and carbon savings during FY26.
Chiller performance improvements saved 323.57 MWh of energy and avoided 229.73 metric tonnes of CO2 equivalent emissions.
HVAC efficiency upgrades delivered energy savings of 856.99 MWh and reduced emissions by 608.46 metric tonnes of CO2 equivalent.
Energy-efficient lighting, motion sensors and daylight-harvesting measures saved 175.32 MWh, avoiding 124.47 metric tonnes of CO2 equivalent emissions.
Air-handling unit and cooling-system optimisation delivered the largest disclosed project-level energy saving at 1,076.82 MWh, while reducing emissions by 764.54 metric tonnes of CO2 equivalent.
Optimising the use of uninterruptible power supply systems saved another 573.96 MWh and avoided 407.51 metric tonnes of CO2 equivalent emissions.
Water Replenishment Reaches 47.57 Billion Litres
HCLTech’s environmental strategy also covers water conservation, replenishment and ecosystem resilience.
The company replenished 47.57 billion litres of water in FY26, equivalent to 51 times its operational water consumption. The scale of the programme demonstrates an approach extending beyond internal water-efficiency measures to community and watershed restoration.
HCLTech also reported water consumption of 10.68 litres per capita per day, which it described as the lowest level in the industry.
More Than 99 Percent of Waste Diverted from Landfills
HCLTech diverted more than 99 percent of generated waste from landfills, supporting its circularity and resource-efficiency objectives.
All company-owned campuses in India maintained 100 percent Zero Waste to Landfill Platinum Certification. The programme covers waste reduction, segregation, recycling, recovery and reuse across HCLTech facilities.
HCLTech Shifts Focus From Operational Emissions to Value-Chain Decarbonization
HCLTech’s 55.84 percent reduction in Scope 1 and Scope 2 emissions and early achievement of its FY30 target represent significant progress toward its 2040 net-zero goal.
The company has simultaneously increased renewable energy to 49.79 percent of global energy use, powered 89.65 percent of its data-centre energy requirements with renewable sources, replenished 47.57 billion litres of water and diverted more than 99 percent of waste from landfills.
However, the increase in annual Scope 3 emissions to 314,411.11 metric tonnes of CO2 equivalent shows that value-chain decarbonization will be critical to the next phase of HCLTech’s climate strategy.
Achieving a 42 percent Scope 3 emissions reduction by FY30, an 80 percent renewable-electricity share by 2030 and value-chain-wide net zero by 2040 will require deeper supplier engagement, clean-energy expansion, energy-efficient infrastructure and low-carbon operational practices.
SHAFANA FAZAL
