Credit: PixabayEPAM Systems is a global software engineering services company headquartered in Princeton, New Jersey. It originated in Belarus in 1993 and is now on the New York Stock Exchange, listed as EPAM. In 2004, it acquired Fathom Technology, a Budapest-based software development services company, before it expanded globally. In May 2021, Forbes listed EPAM number 1,804 on its top 2000 list.
EPAM’s mission is to conserve and protect the environment by creating innovative solutions to offset the current footprint. Its goal is carbon neutrality. To that end, it is partnering with Carbon Footprint UK to reduce the effect of its carbon emissions by 50% by 2025.
“Since 1993, we’ve relied on our engineering DNA to underpin our work with clients, leading to major innovations, digital transformations, and business results. In that time, we’ve expanded geographically and extended our core engineering capabilities to include business consulting, design, and physical product development. We’ve been at the forefront of some of the most exciting technology-led transformations in the industry, and our story continues into today’s modern age of agile delivery, big data, machine learning, and artificial intelligence,” the company says.
Beyond mitigating its CO2 releases, the company commits to the circular economy — to reuse and recall its end-of-life electronics and computers. It uses recycled materials at its offices, all complemented by energy-efficient technologies at its office buildings. For example, its complex in Hyderabad, India, has been recognized with a Gold LEED because of its use of sensor-based LED lighting and air conditioning, its emphasis on natural light, and the elimination of paper.
“Our offices highlight recycling and energy-efficiency initiatives at the local level, and we are seeking ways to reduce carbon contributions from corporate travel and other sources as we work towards carbon neutrality,” the company says.
Simply, the company is reducing its environmental footprint by deploying energy-efficient technologies and running its operations with cleaner fuels.
EPAM believes deeply in environmental, social, and governance principles. The market is led by companies that have broadened their missions from just centering on shareholders to including communities and employees. It’s called the “triple bottom line” that considers the planet, people, and profits. A myopic focus, conversely, may risk the well-being of an enterprise.
The correlation, of course, is that national policy must also embrace a holistic approach. Both corporate and political evolution is occurring because activists, regulators, and investors have united in motivating companies to live up to higher standards. Major U.S. firms, including Walmart, General Electric, and Dow Chemical, have championed the cause of sustainability.
“The triple bottom line is more powerful than policymaking at the highest levels,” says Paul Michael Dekker, with the Global Energy Network Institute.
To that end, Barons has named EPAM among its 100 most sustainable companies. It says that shares of the 100 companies on its list returned 34.4%, on average, in 2021, “besting the S&P 500 SPX-0.31% index’s 28.7%. Overall, 47 of the companies beat the index.”
EPAM is Baron’s ‘top IT Services Company’ on the list. It is ranked 100th among the top 100 most sustainable.
So, what drives sustainability? The research shows that compliance, corporate mission, business performance, employee satisfaction, and industry recognition are significant factors. Free markets move sustainability -- a race to achieve positive brands. Regulatory policies follow that. Indeed, customers are demanding action, and businesses are responding. Importantly, companies must practice what they preach. Otherwise, the strategy backfires. EPAM may be model for others to follow.
“We believe that all of our stakeholders, including our shareholders, benefit from pursuing a responsible Environmental, Social, and Governance (ESG) agenda,” says EPAM Systems. “It is important that our employees, clients, partners, and investors know we will speak up for our principles and work to bring about a more equal and sustainable world. The goal is carbon neutrality.”
