Environmental Performance of IT Sector in India: A Comparative Study between Infosys and TCS

Abstract

This study investigates the sustainability performance of two leading Indian IT companies, Infosys and TCS, concentrating on four main environmental factors: energy usage (GJ), water usage (kl), waste production (metric tonnes), and greenhouse gas (GHG) emissions (MTCO2e). The research seeks to evaluate inter-firm and intrafirm trends from 2021 to 2024, offering a comparative examination of their environmental effects and resource management approaches.

The approach includes a detailed quantitative assessment of yearly data, monitoring shifts in each parameter on a yearly basis. The research reveals that although both companies show an overall increase in energy and water usage, Infosys has significantly improved in minimizing waste production and greenhouse gas emissions. On the Contrary, TCS has shown a consistent growth in waste production and a sharp increase in Scope 3 emissions, even though it has been successful in lowering its Scope 1 emissions. 

A comparison between these firms shows that TCS continually utilized more energy and water than Infosys during the period of study, with the difference increasing annually. Infosys, conversely, excelled beyond TCS in waste management, demonstrating a 32% decrease in waste production by 2024, while TCS's waste output shot up by 209%. Furthermore, Trends in GHG emissions reaffirm Infosys's success in bringing down both direct (Scope 1) and indirect (Scope 3) emissions, whereas TCS faced difficulties, especially with Scope 3 emissions, which almost tripled by 2024. The results serve as an alarming call for TCS to tackle its increasing Scope 3 emissions and adopt better, efficient waste management practices. Infosys's noteworthy achievement in these sectors indicates the possiblebenefits of investing in sustainable methods and resource-efficient technologies. Ultimately, this research contributes to the broader discussion on corporate sustainability within the Indian IT industry, providing practical insights for firms aiming to harmonize growth with environmental accountability. The comparative analysis not only highlights the most efficient practices but also pinpoints key areas for improvement, intending to drive policy formulation and corporate strategies toward a more sustainable future.