ESG compliance is making IT firms compete to be greener

Stocks

ESG considerations are playing an important role in customer evaluation of IT vendors. ESG champs can get more business and generate better returns for investors.

ESG compliance is making IT firms compete to be greener

IT services companies are not associated with polluting industries. Operations of these companies are generally located in pristine environs and do not generate industrial waste or particulate emissions. Nor are these companies dependent on debt markets, where environmental, social, and corporate governance (ESG) metrics are increasingly making a difference to funding costs. Yet, the companies are stepping up their ESG compliance. Infosys turned carbon neutral in 2020 and has set a new ESG targets for 2030. Tata Consultancy Services (TCS) aims to achieve net-zero emissions…