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HCL: Annual GHG Emissions (2020 – 2021, Tonnes CO2 Equivalent)

  • In 2021, HCL’s total GHG emissions decreased by 42% on an annual basis
  • HCL’s Scope 3 emissions accounted for 6.3% of its total GHG emissions in 2021
  • HCL made an operational investment of INR 2.5 million which helped to reduce its carbon footprint

Global warming places life on earth in danger, posing a threat to fresh water, food, and energy supplies. Greenhouse gas (GHG) emissions are the primary cause of global warming. Carbon dioxide (CO2), methane (CH4), and nitrogen oxides (NOx) are GHGs produced by the combustion of oil, fossil fuels, and other sources.

Approximately 2% to 3% of worldwide greenhouse gas emissions is generated by the technology and communication industry. GHG emissions are produced by industry operations such as energy consumption, product manufacture, and product use. According to the International Telecommunication Union, digital technology has the potential to reduce world carbon emissions by roughly 17%. Technology companies can help other industries improve their operational efficiency by cutting GHG emissions.

HCL Technologies Ltd (HCL) is a provider of a range of software services and IT infrastructure services. The company offers a wide range of solutions in enterprise application services, IT infrastructure management, custom application services, next generation SaaS application services, and engineering and R&D services. In 2021, the technology company reported total GHG emissions of around 0.16 million tonnes CO2 equivalents (MtCO2eq), down 42% from 2020.

Scope 1, 2, and 3 emissions are the three categories of GHG emissions. Scope 1 emissions for HCL include emissions from combustion of diesel fuel in generator sets and boilers used to power the campuses and fugitive emissions. Indirect GHG emissions from the generation of purchased energy, such as the electricity needed to power the company's facilities, are referred to as Scope 2. Scope 3 emissions refer to the company's other indirect emissions beyond the company’s direct operations and occur in the company’s value chain, such as emissions from business travel.

Scope 2 emissions account for most of HCL’s overall GHG emissions, accounting for 80.9% of total GHG emissions (0.13 MtCO2eq) in 2021. In 2021, the company's Scope 1 emissions fell by 8%, and Scope 3 emissions fell by 87%.

During FY 2020-2021, HCL made an operational investment of INR 2.5 million which helped to reduce its carbon footprint by estimated 300 tCO2eq. The company has also invested INR 3.2 million on water conservation initiatives. 

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