Industry needs to set long-term sustainability goals that are viable, achievable, measurable, and science-backed with scope for improvisation: May Yang, Managing Director, Synechron

May Yang serves as the Managing Director for Synechron. She is currently spearheading Synechron’s Diversity, Equity, and Inclusion Program – Same Difference, which was launched to foster an inclusive culture in Synechron globally.

An alumnus of three prestigious institutions - Columbia Business School, London Business School, and Indian Institute of Technology, Bombay, she incorporates global ideologies and perspectives in her work at Synechron.

In this interview with TheCSRUniverse, May extensively talks about Syncheron's Net Zero goals by 2035, and how the FinTech company plans to reach its target by striking the right balance between its ESG goals while creating shareholders' value creation and maintaining market competitiveness.

Ms Yang also shares insights on the need for growing collaboration between corporates and their NGO partners as a crucial step to expedite CSR initiatives. Scroll down to read the full interview.

Q: Synechron aims at Net Zero goal by 2035. What kind of interventions have you made to achieve this goal and what has been the result so far?

A: At the recent COP26 climate change conference, Honorable Prime Minister Narendra Modi committed that India would achieve ‘Net Zero’ emissions by 2070 and boosted the country’s 2030 commitments. While this seems far-fetched under current circumstances, a cumulative effort by the public and private sectors can pave the way to reaching this target.

A significant part of this responsibility lies on the shoulders of the corporate sector. Most companies today have pledged their commitment towards lowering their carbon footprints. Hopping on this bandwagon, we aim to reach Net Zero emission by 2035. We have already laid the framework and have initiated tracking our Co2 emissions, building an energy-efficient campus, and transforming all our premises into a green building (LEED certified, IGBC certified). Additionally, we have set up an independent sustainable governance wing across all our offices who are dedicated to working towards reaching our green goal.

Being a tech company, our roadmap involves deploying tech tools to achieve this goal. Our sustainable governance champions monitor the process round the clock and improvise it whenever necessary. To create awareness around the cause and our responsibility towards it among our employees, we have special awareness programs in place such as usage of reusable products, moving towards a paperless office environment (limited to Compliance and HR Dept), generating reports in e-paper mode, and ensuring goals and objectives spread across functions, employees, business groups, third-party employees, vendors, concerned empaneled, and other interested parties are met. Our efforts have resulted in successful YoY reduction in our carbon footprint.

*Scope 1: Direct GHG Emissions (Direct GHG emissions occur from sources that are owned or controlled by the company)

*Scope 2: Electricity Indirect GHG Emissions (GHG emissions from the generation of purchased electricity consumed by a company.)

*Scope 3: Other Indirect GHG Emissions (Emissions that are consequence of the activities of the company, but occur from sources not owned or controlled by the company)

Q: What are the other key areas and themes of your CSR activities?  Please elaborate on the various CSR initiatives that the company has undertaken so far and the outcome for the same in terms of geographical reach and communities.

A: Synechron has consciously been involved in diverse CSR activities that comply with our vision and mission. These activities cater to a list of diverse sectors. Depending on the opportunity, we are open to exploring newer avenues as well. At present, we have twenty-four empaneled NGOs across India including:

• 12 NGOs in Pune that have helped us distribute 200+ desktops and connect with 1500+ children and 50 + teachers
• 4 NGOs in Bengaluru, these associations helped us reach out to 150 intellectually disabled children and 350 blind students
• 5 NGOs in Hyderabad aided us in helping around sixty-five old-age citizens and 690 underprivileged children
• 2 NGO partners in Chennai helped us to connect with one hundred families who lost their family members to Covid-19 and 150 blind children. Along with distributing groceries and daily use items, we also undertook skill development programs for thirty members of these NGOs
• 1 NGO in Mumbai through whom we were able to aid under privileged children by providing education and health & medical support

Along with extending support to orphanages and old age homes, our focus areas include:

• Women empowerment & Skill development programs: This includes skill development programs, providing training in self-sustainable activities, and setting up hygiene and health camps for adolescent girls
• Farmer support: This includes edifying farmers with new methodologies, assisting them in crop rotation system, educating them to migrate to organic cultivation, undertaking border removal programs to increase the cultivation areas, constructing water wells, and providing machinery support through the NGOs
• Infrastructural support: This includes everything from classroom constructions, computer lab setups, and building restrooms in hostels and schools to implanting solar panels for domestic power generation
• Rural development: This includes organizing mid-day meal programs, providing digital education for rural area children, and providing reservations for physically disabled skilled youth

In addition to lending our support to the aforementioned initiatives, we are now also focusing on widening our horizons into ESG. This will help us ensure sustainability to achieve our goal of ‘Net Zero’ by 2035. In this regard, Synechron has taken up the following initiatives and will add more in the future:

• ESG – Team formation and scaling up the skills towards optimization
• Six Sigma – Process implementation in every area of admin functions
• Go-Green Initiatives
• Recycling/enhancement of the life cycle

Q: Synechron is focusing on strengthening its collaboration with NGOs. What is the objective behind?

A: CSR is a crucial aspect of any corporate entity. As per official data from the ministry of corporate affairs, a total of 9,374 companies spent more than the prescribed amount on CSR in FY21, a 35% improvement over those who overspent in the year before. For a business to succeed in its CSR efforts, NGOs play a crucial role. They function as a catalyst for companies to strengthen their public-private partnership. By associating with NGOs, corporates are bolstering their efforts to better society. And we at Synechron are no different. We passionately believe in this partnership and take thoughtful decisions while identifying the NGOs that we want to work with. We have twenty-four empaneled NGOs across cities like Pune, Bengaluru (Bengaluru), Hyderabad, Chennai, and Mumbai, and are grateful to be able to benefit countless number of children, women, senior citizens, and farmers.

Q: How are corporates faring in terms of ensuring the reduction of carbon footprints/emissions in their work processes/culture? How is Synechron working towards that?

A: Every year, the world produces around 20-25 million tons of e-waste. When left untreated, it releases toxic chemicals and greenhouse gasses into the air damaging the atmosphere. To combat the hazardous effect of industrial waste, Companies set up distinct tools and mechanisms that follow the uniform carbon emission guidelines. Over the last few years, there is a unanimous agreement among corporations to reduce their carbon footprint. Sixty-four companies have pledged to reduce greenhouse gas (GHG) emissions under the Science-Based Target Initiative (SBTi)—a global alliance enabling businesses to establish their own climate pledges. As a rapidly growing economy, controlling carbon emissions can be a tough task for India, however, with the combined efforts of the government and private companies, it is possible. Many industries today have implemented RE projects such as incorporating solar-based power plants, replacing fossil fuels with biomass/agro-waste, and shifting to gas-based power plants.

We too have been doing a fair bit of work to comply with the environmental needs. Following the Central and State Pollution Control Board guidelines, we send our used laptops, desktops, batteries, and other IT equipment for proper disposal and recycling and have received certificates of destruction/recycling from authorized personnel. In the last fiscal year, the Synechron India offices sent 1952 of its IT assets (desktops and laptops) for recycling and 38 IT assets were donated as part of CSR activities in India. Thus, we are reducing most of the e-waste from our operations. Synechron’s ESG committee has established the road map to bring down carbon emissions. Additionally, we also follow considerable guidelines aligned with the ‘Net Zero’ targets like- establishing new office spaces in Green certified buildings, increasing the procurement of green energy, opting for energy-efficient equipment, time to time adhering to the PCB guidelines, deriving Scope – 1, 2, & 3 emissions, implementation of Six Sigma and PDCA methodologies in process/business/culture, adoption new technologies, practicing recycling, converting waste into manure, and using biodegradable packing materials.

Q. Technologically speaking, India is still at a nascent stage of development, and adaptation of modern technology is still slow. How feasible is it for corporates to set early targets for achieving sustainability goals?

A: While India is still considered to be at a nascent stage when it comes to technological developments, the country is digitizing at an exceptional speed. It also shows significant potential to achieve its sustainability goals compared to developed countries which must modify/renovate/acquire or implement modern technologies by discarding the existing models. India enjoys the flexibility to adopt and absorb new methodologies and technologies to tackle climate change. Today, India might be placed at 177 in the environment index however, but by 2035, we are positive that we will make remarkable advancements while gradually shifting our rank.

Keeping in mind the ever-changing government regulations and the investment required to make a transition to a low-carbon economy, we have defined our medium-term goals. This will help us in a smooth and agile transition for providing better technology/IT services. And will also allow us to advise our sustainable financial services client in a better way keeping in mind all the mandatory government regulations.

Q. What is your opinion on the feasibility of corporates adopting sustainability goals in an ever-changing ESG landscape? What are the challenges especially when it comes to striking a balance between sustainability goals and maintaining market competitiveness?

A: Change is inevitable, so companies do not have an option but to adapt to new circumstances. The core requirement of adopting sustainable goals remains the same and has never been a challenge on individual as well as corporate level.

However, when it comes to market competitiveness, there are some challenges that a company might face in its quest to strike a balance. For example, frequent up-gradation of equipment attracts more capital investments. Capital investments marginalize the profits, complications in the supply chain management.

Q: As per your extensive knowledge and experience of the financial services industry, how do you think fintech corporations can ensure the smooth execution of its ESG goals, without undermining its shareholders' value creation and company's returns?

A: The Thumb rule for any corporate organization across sectors is to keep track of emissions and look for ways to reduce them. Another aspect to focus on is climate-related risks. Climate-related risks can cause potential disruptions to business operations due to disasters like floods, cyclones, droughts, pandemics, etc., across cities where they operate. The alignment of the climate risk management process against the requirements of leading global standards like TCFD and SASB is important. Enterprise risk management plays a vital role here.

As an IT services provider and consulting company focused on financial services, we have finalized a long-term plan of 10-30 years to adopt and bring innovation towards emerging technology that is more efficient, faster, and has less carbon footprint. Physical and transitional climate risk drivers have been kept in mind while formulating this plan. We also plan to develop a low carbon transition plan that aligns with the 1.5-degrees world target and align ourselves with the sustainable development goals. My advice to my contemporaries would also be the same.

Q: Why is Synechron focusing on giving more weightage to Agroforestry proposals? What is the agenda and planning for the same?

A: Historically, India was one of the biggest exporters of food grains to the world, with most of the Indian occupants being farmers. Even today, 42.4% of the land in India is used for agriculture. Additionally, India, with its rich biodiversity, has all forms of agroforestry systems in an ecozone that ranges from humid tropical lowlands to high-altitude and temperate biomes, from humid rainforest zones to drylands.

However, owing to multiple geo-political and social factors, such as urbanization, international market movements, lack of exports, depletion in earning rates, scarcity of seeds, pests, and natural calamities, farmers have been facing financial disparity. To free them from their plight and provide maximum support to the agriculture community, Synechron has taken up an agroforestry proposal under our CSR mandate. Agroforestry is now recognized as an important approach to ensuring food security and rebuilding resilient rural environments. India has been an all-time leader in agroforestry, and we aim to contribute whatever we can to keep this status intact.

Q: What is your word of advice and caution to corporates when setting their sustainability goals?

A: Most corporates understand their responsibilities and have a brilliant team at the back-end who is working tirelessly to help them reach their goals. However, my advice to my peers would be to practice agility and be resilient to the circumstances. Set long-term goals that are viable, achievable, measurable, and preferably science backed, and most importantly, have scope for improvisation.