Sustainability is ingrained in the very essence of our identity and operations. As stewards of the environment, we acknowledge the pivotal role that businesses hold in shaping a sustainable future. Our environmental initiatives predominantly focus on addressing climate change and prompting the utilization of green energy. Our disclosures exemplify our dedication to responsible stewardship and innovative practices.
Amidst global calls for urgent action on climate change, it is imperative to recognize that climate risks could potentially affect the business growth of Happiest Minds. As a proactive measure, we are implementing various initiatives to transition to renewable energy, increase green cover, and implement carbon reduction initiatives. Recognizing the urgency to address climate change, we have set forth an ambitious goal of carbon neutrality across all our facilities and operations by 2030.
Managing climate change boils down to dealing with three overarching issues:
Human activity has precipitated swift temperature fluctuations, leading to highly unpredictable outcomes such as droughts,heat waves, and floods. At Happiest Minds, we accord strategic significance to climate change in our engagements with stakeholders.
Reducing our carbon footprint is at the core of our environmental strategy. Through a blend of energy efficiency measures, renewable energy investments, and transport optimization, we have made significant advancements in reduction in emission. Our objective is to achieve a 100% reduction in Scope 1, Scope 2 and Scope 3 compared to our baseline, and achieve carbon neutrality by 2030. Additionally, we optimize resource utilization throughout our operations to minimize waste generation and promote circular economy. We have also strengthened our supply chain to identify sustainable vendors who are eco-conscious and procure products that align with environmental considerations.
In the year 2021-22, we initiated our renewable energy journey by installing a rooftop solar energy system. This strategic move was primarily driven by the need to be 100% renewable before 2030. Also, certain internal infrastructural changes were implemented, such as transitioning from fluorescent to LED lamps. Currently, the Company utilizes about 10% renewable energy, leading to a noteworthy decrease in carbon emissions.
About 3,985 MTCO2e could be a potential offset in 10 years through nature-based solutions across locations. More initiatives are in the pipeline to reduce around 625 MTCO2e of carbon this year (considering approximately 20kg of CO2 per year, considered globally as a conservative estimate for sequestration potential of trees).
Through our rural electrification program, we are supporting communities with no access to power, thereby reducing 2.6 MTCO2e carbonemissions year-on-year.
Nature is an integral partner in our journey towards sustainability. At Happiest Minds, we prioritize biodiversity conservation across all our operations through responsible land management and habitat preservation and promote bio-diversity-friendly practices. Through collaborative efforts with conservation organizations, we are actively engaged in initiatives to enhance understanding of flora and fauna and restore habitats in Karnataka. These endeavors aim to safeguard biodiversity, preserving the richness and diversity of life on our planet.
Sustainability is a team effort that extends beyond our own operations to encompass our entire supply chain. Through responsible sourcing practices, ethical labor standards, and supplier engagement initiatives, we are promoting sustainability throughout our value chain.
At Happiest Minds, we believe that transparency is the basic building block of trust, and our vendor’s code of conduct is constructed upon this principle. It is paramount for us to procure goods and services from ethical and transparent vendors who prioritize environmental sustainability. Therefore, we diligently source from and engage with diverse suppliers to conducting thorough due diligence, supplier audits, and providing guidance on sustainability practices. Our procurement strategy is crafted to comprehensively support these initiatives end-to-end.
We are implementing various initiatives and measures with an ESG focus, particularly in sourcing sustainable materials and services. Additionally, we prioritize programs aimed at fostering the growth of our suppliers alongside us.
We strive to promote sustainability throughout our supply chain by collaborating with suppliers who share our commitment towards environmental responsibility. The subsequent phase in this endeavor involves conducting comprehensive and conscientious due diligence to identify and address on potential risks to the environment and stakeholder value. By 2028, we aim to ensure at least 50% of our suppliers adhere to our sustainability standards through continuous monitoring and audits, underscoring sustainability at every phase for resilience and enduring success.
Enhancing supplier diversity stands as a pivotal aspect of our dedication to inclusivity and equitable business practices. At Happiest Minds, we are making conscious efforts to improve diversity in the supply chain with a view to creating a robust supplier base from diverse backgrounds, including minority-owned businesses, and women-owned businesses. By fostering a diverse supplier base, we promote economic empowerment, training, innovation, and resilience within our supply chain through an seamless onboarding process.
Sustainable sourcing is fundamental to our commitment to our environmental and social responsibility. We prioritize suppliers who adhere to ethical labor practices, minimize environmental impacts, and promote transparency throughout our supply chain. Happiest Minds is currently procuring 21% of our products and services through green sourcing. By sourcing materials responsibly, we aim to preserve natural resources, support local economies and create lasting value for businesses, suppliers and communities.
Committed to upholding highest ethical standards, integrity, and environmental and social responsibility, we, at Happiest Minds, have published a mandatory code of conduct for the suppliers. The code of conduct defines the minimum standards in terms of sustainable, ethical sourcing and legal compliances a supplier is required to follow in association with the Happiest Minds. The standards encompasses ethical practices such as prohibiting child labor and forced labor, avoiding conflicts of interest, ensuring quality products and services, refraining from unfair trade practices, and demonstrating a commitment to environmental responsibility. Each vendor partnering with Happiest Minds is required to affirm their compliance with the code of conduct at the time of onboarding.
