Cognizant Sustainability Report 2012
 

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The world of the future will pose many challenges. Meeting those challenges will require people who are educated, skilled in advanced technologies, and inspired by intellectual curiosity. ...

The world of the future will pose many challenges. Meeting those challenges will require people who are educated, skilled in advanced technologies, and inspired by intellectual curiosity.

At Cognizant, we have made education one of the top priorities of our sustainability efforts, along with preserving the environment and creating the best place to work for our employees. As a business that has grown from 175 associates 19 years ago to nearly 157,000 at the end of 2012, and that produces over $7.3 billion in annual revenues, our progress has been powered by a well-educated and motivated team. We think the best way to sustain that success, and to share it with our employees, clients, partners and society, is by investing in learning and leadership.

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Cognizant Sustainability Report 2012 Document Transcript

  • 1. Leadership for a BRIGHTER Future sustainability report 2012
  • 2. 3 l Cognizant sustainability report 2012 ABOUT THE COVER: A young maker proudly shows off the hydroponic garden he made at the World Maker Faire at the New York Hall of Science during a workshop led by the Creation Station, of Middletown, RI, a recipient of one of Cognizant’s Making the Future afterschool and summer program grants. TABLE OF CONTENTS Introduction 1 Letter from OUR CEO 2 SUSTAINABILITY AT COGNIZANT 4 EDUCATIONAL OPPORTUNITY 6 EnvironmentAL STEWARDSHIP 14 Employee DEVELOPMENT 20 Policies, practices & performance 29 gri content index 51
  • 3. sustainability report 2012 Cognizant l 1 The world of the future will pose many challenges. Meeting those challenges will require people who are educated, skilled in advanced technologies, and inspired by intellectual curiosity. They will invent solutions that one day may rebuild failing economies, raise populations out of poverty, cure devastating diseases, power our energy needs, rescue our environment, lead thriving businesses and institutions, and educate the next generation that follows in their footsteps. The young people we teach today are the innovators of tomorrow—but only if we provide educational opportunities that are high quality, widely accessible, continually relevant, and stimulating. Where will we find future generations of thinkers, makers, doers— and leaders? At Cognizant, we have made education one of the top priorities of our sustainability efforts, along with preserving the environment and creating the best place to work for our employees. As a business that has grown from 175 associates 19 years ago to nearly 157,000 at the end of 2012, and that produces over $7.3 billion in annual revenues, our progress has been powered by a well-educated and motivated team. We think the best way to sustain that success, and to share it with our employees, clients, partners and society, is by investing in learning and leadership.
  • 4. 2 l Cognizant sustainability report 2012 LETTER FROM OUR CEO At Cognizant, our perspective on sustainability is uniquely informed by the critical role we play in our clients’ success WE HELP SUCCESSFUL GLOBAL ENTERPRISES to stay that way, by meeting the dual challenges of operating more efficiently today and inspiring innovation-driven growth for tomorrow. Mastering these challenges requires us to look beyond the narrow scope of businesses, industries and markets. Our sustainability efforts are propelled by the knowledge that we and our clients must cultivate the resources that will be relevant to the challenges of the future: an educated population, a stable environment, and a talented and highly motivated employee base. These are the pillars of Cognizant’s sustainability effort, and we actively apply our enterprising spirit, passion for innovation, and can-do attitude to make a difference in these vital areas. Of these three pillars, we view access to a quality education as the most essential. It is no over-statement to say that education is the fundamental sustainability issue of our time. Investments in education are needed to support business growth, to be sure. More importantly, we must endow future generations with the knowledge, skill and intellectual curiosity to address worldwide problems of poverty, energy demand, climate change, disease, and human rights. Cognizant’s education initiatives are aligned with the needs of each region within our global network. In the U.S., our Making the Future program focuses on inspiring children to pursue learning in science, technology, engineering and math (STEM), which will drive the nation’s long-term ability to compete in the world economy. In India, where disparities in educational access can be based on region, economic level or gender, our Outreach program engages employee volunteers in teaching and mentoring, building and equipping schools and learning centers, and related activities. Increasingly, we are applying our intellectual and human capital to educational needs in other regions, as well. Another important contributor to our sustainability initiatives is the Cognizant Foundation, which since 2005 has invested in education and healthcare programs in India— ranging from bridging the digital divide in rural schools; to supporting Learning Centers for Girls; to the Lifeline Express, a hospital on a train. At the same time, we pursue a range of efforts to preserve the environment in order to protect the resources needed for our growth, better manage climate change risks, and enhance the quality of life for our employees, clients and partners. A combination of corporate efforts and our
  • 5. broad-scale Go Green volunteer effort have led to significant reductions in carbon emissions, energy consumption and waste across the Company. We are proud that Cognizant ranked 13th on Newsweek’s U.S. Green rankings for 2012. We are committed to extensive professional development and training programs, such as Cognizant Academy, that expand the opportunities of our employees while enabling them to better serve clients. Our increasing emphasis on diversity initiatives has included the successful Women Empowered program, which involves not only our own employees, but also clients, as well as a new initiative launched in 2013 called Completely Cognizant. And we have an active focus on providing safe and healthy workplaces. For Cognizant, sustainability also entails the highest standards of business conduct and concern for human rights, both at the Company and across our supply chain. I would like to take this opportunity to thank all of the Cognizant employees who have embraced and engaged in our sustainability efforts—helping to make our world a better place by contributing over 200,000 hours of their time and, most importantly, their hearts and minds. A focus on sustainability is critical to Cognizant’s position as a valued business partner, an employer of choice, a sound investment for shareholders, and a global corporate citizen. We will continue to apply our spirit and passion to the challenges and opportunities of sustainability. LETTER FROM OUR CEO Francisco D'Souza Chief Executive Officer “Our sustainability efforts are propelled by the knowledge that we must cultivate the resources that will be relevant to the challenges of the future.”
  • 6. 4 l Cognizant sustainability report 2012 OUR JOB IS HELPING CLIENTS REMAIN RELEVANT as their future is transformed by globalization, new technologies and changing economic imperatives. We know there can be no meaningful plans for the future unless we address the sustainability issues that confront all individuals, communities and businesses. We have adopted a Policy on Sustainability and Corporate Responsibility, key elements of which include: • Maintaining high standards of honest, ethical and legal business behaviors at all times. • Providing a workplace free from discrimination, harassment or any type of abuse. • Ensuring that child labor or forced labor is not used in any operations. • Providing safe working conditions for all employees. • Complying with all applicable environmental laws, regulations and standards, and tracking and reducing negative environmental impact. • Engaging with our suppliers to ensure they follow our supplier code of conduct and are striving to improve the sustainability of their businesses. SUSTAINABILITY AT COGNIZANT Cognizant’s deep commitment to sustainability is the result of nearly two decades of work with leading businesses While investing in education is one of the most critical areas in which we are making a positive impact, our sustainability efforts also focus on preserving the environment, while providing a safe workplace and promising careers for our employees.
  • 7. sustainability report 2012 Cognizant l 5 SUSTAINABILITY AT COGNIZANT The full text of our Sustainability Policy, including the complete scope of our commitments to corporate responsibility, can be found at http://www.cognizant.com/ OurApproach/Sustainability%20Policy.pdf. The 2012 Sustainability Report describes how we have put our policy into practice over the past year. While investing in education is one of the most critical areas in which we are making a positive impact, our sustainability efforts also focus on preserving the environment, and providing a safe workplace and promising careers for our employees. This year’s Sustainability Report is in two sections: Program Highlights, describing some key activities in the areas of education, the environment and employee development, and a review of Policies, Practices & Performance, written in accordance with the Global Reporting Initiative (GRI) sustainability reporting framework, touching on all aspects of our sustainability mission. Cognizant remains dedicated to making a sustainable future for our clients, employees, shareholders, partners and the communities in which we live and work. Please help us by letting us know what you think of this report, and our overall efforts, by emailing us at sustainability@cognizant.com.
  • 8. 6 l Cognizant sustainability report 2012 EDUCATIONAL OPPORTUNITY
  • 9. sustainability report 2012 Cognizant l 7 Around the globe, providing a quality education for all is not only vital to advancing personal development—it is also the key to society’s long-term ability to grow businesses, create jobs, and solve pressing problems in healthcare, poverty, the environment, and human rights. Cognizant’s educational initiatives are tailored to the specific needs of our communities around the world, but the driving principle is the same: to promote learning opportunities that are widely accessible, stimulating, enriching—and fun. In the U.S., the main focus of our education initiatives is to expand and enhance science, technology, engineering and math (STEM) education by increasing exposure to, and interest in, STEM learning activities. The need for more young people to pursue STEM studies is critical. Testimony in April 2013 before the U.S. House of Representatives Committee on Education and the Workforce noted that the number of STEM jobs grew three times faster than non- STEM jobs in the past ten years, and the U.S. is expected to create 9.2 million new jobs in STEM fields in the next decade. Yet, the supply of graduates capable of serving in these new positions is running well behind demand. According to a 2010 National Academies Report, the U.S. ranks 27th among developed countries in the proportion of college students earning bachelor’s degrees in science or engineering. In addition to concerns about the competitive position of the U.S. vis-à-vis the global talent pool, the nation also faces an “achievement gap” that is keeping under-served children from reaching their potential. To remedy both situations, we strive to inspire learners in the STEM disciplines at an early age by creating fun, hands-on learning opportunities. Access to educational opportunity is the fundamental sustainability issue of our time
  • 10. 8 l Cognizant sustainability report 2012 Making the Future Cognizant’s key educational initiative in the U.S. is Making the Future, which seeks to inspire young learners in the STEM disciplines. The key to the program is its emphasis on “inspiration”, since interest in STEM, rather than proficiency, has been shown to be a stronger predicator of whether students will pursue STEM careers. Toward that end, Making the Future focuses on fun, hands-on learning opportunities, which not only provide inspiration, but also help develop essential 21st century learning skills such as creativity, communication, and collaboration. Our Making the Future effort is built around four key components: STEM education advocacy We work with organizations such as Change the Equation, a consortium of over 100 companies dedicated to improving the quality of STEM education in the U.S. Partnerships Collaborating with like-minded education non-profits, we provide financial, in-kind, and volunteer support to organizations like the New York Hall of Science, Citizen Schools, and the Engineering is Elementary curriculum created by the Boston Museum of Science. And we partner with other corporate leaders and non-governmental organizations on key initiatives. U.S. college scholarships program Launched in the fall of 2012, Cognizant’s program offered $5,000 college scholarships to students pursuing STEM fields. To win a scholarship, students had to submit a 3-minute video of something they designed, engineered, and built. After-school and summer programs Beginning in 2012, we funded 10 after-school and summer programs around the U.S. In the 2013 grant cycle we received 250 applications and have selected 20+ outstanding programs to fund this year across 18 states. Cognizant’s Making the Future program was sparked by the growing Maker Movement. In the Maker Movement, and at Maker Faires around the country, adults and children engage in do-it-yourself projects around electronics, robotics, 3D modeling, 3D printing, open source hardware and software, e-textiles, and many other fun, cool activities. Exposing children to these kinds of creative, hands-on projects will spark their abiding interest in STEM. EDUCATIONAL OPPORTUNITY In India, our education initiatives are focused on helping to fill the void in basic education in remote communities, as well as to improve the disparities in educational opportunities due to income level and gender. The Annual Status of Education Report (ASER) by Pratham, a non- governmental organization dedicated to educational issues, found that in 2012 more than 53% of India’s fifth graders could not read at a second grade level, and 52% of seventh graders could not do division. Although enrollment in school is relatively high in India, 10% of the girls in some provinces are not attending school. The Times of India has reported that the country lacks 1.2 million teachers and that some 16% of all villages do not have primary schooling facilities. Thus, our efforts in India are designed to increase access to quality education through volunteer teaching and talent enrichment programs, contributions of learning materials, and assistance in improving school facilities and resources. our efforts in India are designed to increase access to quality education 28,000+ 216,000+ Project Outreach volunteers volunteer hours
  • 11. sustainability report 2012 Cognizant l 9 EDUCATIONAL OPPORTUNITY “We are excited to have Cognizant’s support in launching Maker Corps. Projects led by Maker Corps members will not only create new opportunities for children to develop teamwork, creative, technical and problem solving skills, but also expand the capacity of organizations to reach children in meaningful ways.” Paloma Garcia-Lopez, Executive Director—Maker Education Initiative Maker Corps With support from Cognizant, Maker Corps aims to hire more than 1,000 college students over the next three years to help mentor and inspire children in summer and after-school programs. Our involvement in Maker Corps was announced by President Clinton at the June 2012 meeting of the Clinton Global Initiative. Maker Corps participants will work with science centers, children’s museums, schools and similar organizations to engage children in creative activities that foster problem-solving and team-building skills. Makers themselves, Maker Corps members will apply their passion and energy to make science and technology fun. The New York Hall of Science, Children’s Museum of Houston, Children’s Museum of Pittsburgh, Science Museum of Minnesota, Exploratorium, the Henry Ford, and Science City at Union Station, Kansas City, amongst others, have agreed to collaborate on the Maker Corps program. Maker Corps is part of the Maker Education Initiative (“Maker Ed”), a non-profit co-founded by Cognizant along with Intel, Pixar, the MacArthur Foundation and Maker Media. MakerEd aims to create more opportunities for young people to make, and, by making, to build confidence, foster creativity, and spark interest in STEM disciplines and learning as a whole.
  • 12. 10 l Cognizant sustainability report 2012 EDUCATIONAL OPPORTUNITY After-School and Summer Programs In 2012, hundreds of children participated in 10 after-school and summer programs sponsored by Cognizant and operated by children’s and science museums, Boys and Girls Clubs, 4H Clubs, schools, and other organizations. The programs enable boys and girls, primarily in the upper elementary to middle school age range, to engage in Maker-oriented, Do-It-Yourself activities. Children may learn to use 2D and 3D design software and digital fabrication tools, or work with circuits, electronics, and open source microcontrollers. Other projects include robotics; creating digital or mechanical musical instruments; hydroponics, agricultural and food related projects; or sewing and e-textiles. We plan to more than double the number of after-school and summer programs we fund, to 20+ in 2013. Citizen Schools Cognizant fielded 130 volunteers to serve as Citizen Teachers in 2012 through the Citizen Schools program. Citizen Schools is a national nonprofit organization that recruits professionals to work with students at middle schools in low-income areas. The Citizen Teachers’ talent and enthusiasm help to expand the learning experiences available to the students during 11-week hands-on courses. Our Citizen Teachers have taught robotics at Eagle Academy in Newark, N.J.; Mobile Application Design at Cesar E. Chavez Multicultural Academic Center in Chicago, IL; and an e-textiles apprenticeship at the Patrick Henry Middle School in Houston, TX, which involved lighting up LEDs using open source microcontrollers sewn into fabric using conductive thread. “I've been able to experience and experiment with many things thanks to the Making the Future program at the Newark Museum; it even changed my outlook on life. Before, when I looked at things I saw the uses, now I also see the designs and the flaws that could be improved upon. I am considering a career in industrial design. I have no doubt that my experience at Makerspace has improved my life.” Anthony Rodriguez, Age 15, Newark, N.J.
  • 13. sustainability report 2012 Cognizant l 11 EDUCATIONAL OPPORTUNITY PROJECT OUTREACH The focus of Project Outreach is to channel the energy, passion and expertise of Cognizant employees toward volunteer activities that improve the quality of life— especially educational opportunities—in India and, increasingly, in other regions. Outreach is entirely led by our associates, who are organized into Outreach Councils by business unit or location. Each Council sets the tone of its volunteers’ activities, encourages associates to participate, and solicits employees’ suggestions as to schools and programs that might benefit from our efforts. The Councils receive corporate support for their selected programs and monitor outcomes. In 2012, more than 28,000 Outreach volunteers dedicated over 216,600 hours and participated in over 7,000 activities. Today, Outreach Councils are operating not only in India, but also in the Philippines, Singapore, Australia, Hungary, UK and North America. Consider the impact of the following Outreach activities: Schools supported In India, Outreach supported over 60 urban schools, more than 100 rural schools, and nearly 500 children from marginalized communities during 2012. Infrastructure and supplies Outreach volunteers, with help from Cognizant corporate, donated furniture, lab equipment, library books, athletic equipment, and other resources to their chosen schools. For example, some 50,000 associates have given over $300,000 since 2008 to purchase notebooks for nearly 200,000 children. Academic teaching The “Be A Teacher” program enables associates to volunteer to teach English, Math or Science in local schools, and to help with extra-curricular activities, resulting in a noticeable increase in students’ academic scores. Scholarships Employee contributions, as well as corporate giving, have provided financial support for students who otherwise could not have continued their post-high school education. In 2012, there were 128 scholarship recipients: 97% were first generation graduates and 71% were girls. Project Outreach volunteers participate in a wide variety of grassroots activities. Our goal is to significantly increase the participation in high-value volunteer efforts that can positively impact students’ performance, in areas such as classroom teaching, career counseling, interschool competition coaching, and leading educational trips. We placed #2 in the Give India corporate giving challenge for 2012, based on the donations contributed by our employees. PLACED #2 IN THE GIVE INDIA CORPORATE GIVING CHALLENGE
  • 14. 12 l Cognizant sustainability report 2012 EDUCATIONAL OPPORTUNITY The strong support for Outreach among our employees can be seen in the fact that our Outreach App has had over 100,000 hits and the Outreach Facebook page has had more than 25,000 likes as of December 2012. In Chennai, we're helping educate students on the environment. Third Eye Donations provided by Cognizant employees have helped Third Eye to print non-curricular books in Braille for visually challenged students at 17 schools for the blind in India. To-date, our contributions have enabled publishers to produce some 21 titles, bringing the joy of reading to visually challenged students. Vanavil Trust Outreach volunteers adopted a residential school created by Vanavil Trust for children of nomadic tribes in India’s Tamil Nadu state. Our employees set up a computer lab and conduct English and Computer Science classes for the students, to help them escape from a cycle of begging that has afflicted many of their families. DEAR INDIA Cognizant volunteers have traveled to remote villages to provide enrichment for children at study centers set up by the Dear India organization. The study centers are places where children can sit and study peacefully, under the guidance of one or two teachers. The students do their homework and studies at the centers, but also partake in fun. Our employees have taught computer and math sessions, but also organized games and play activities. TalHunt We helped more than 50,000 children participate in the TalHunt interschool cultural competition in 2012. TalHunt enables students from 160 schools to compete in programs that showcase their creative abilities. Winning schools receive financial aid to help improve their facilities. Getting to Know Asia Building cultural bridges, Cognizant supported a project called “Getting to Know Asia”, in which children from the Netherlands interacted via Skype with children in Chennai, India. Through the program, the Dutch children created handicrafts, which they sold to raise funds to help set up a small library at an under-resourced school in India. PRINCE'S TRUST In the UK, Outreach volunteers help support the Prince’s Trust, whose programs combat youth unemployment by building young people’s skills, confidence and motivation. We fielded 20 entrants in four teams for the “Wild UK Challenge,” in which participants hike, bike and kayak 100 miles to raise funds for the Trust. For this effort, Cognizant was named a joint winner of the Trust’s Technology Leadership Group Superstars Award.
  • 15. sustainability report 2012 Cognizant l 13 EDUCATIONAL OPPORTUNITY COGNIZANT FOUNDATION In 2005, we launched Cognizant Foundation as an independent entity to support our philanthropic initiatives in India. Established with the objective of improving, guiding, and inspiring the lives of underprivileged people, Cognizant Foundation focuses primarily on the areas of education and healthcare. The prime objective of Cognizant Foundation Engineering Scholarship Program Cognizant Foundation has provided merit-based scholarships to economically underprivileged students pursuing engineering education at more than 20 higher education institutions across India. Under this program, 66 new students are presently offered scholarships every year, which they can then receive for all four years of their undergraduate study. Mobile Science Laboratory Vidyan Vahini is a non-profit organization that provides science education for students in rural villages in the State of Maharashtra. A Cognizant Foundation grant has helped Vidyan Vahini to create a Mobile Science Laboratory, which offers hands-on learning for children who otherwise would not have access to a science lab. Digital Equalizer Program Students and teachers alike have access to computer-aided learning thanks to the American India Foundation (AIF). Cognizant Foundation support is helping AIF to bring computer training to 11 under- resourced government schools in the State of Andhra Pradesh, serving over 4,800 students and more than 180 teachers. is to reach out to economically and socially disadvantaged sections of society across India and to make a meaningful impact in their lives and in their quest for a better future. Education-related activities include support for computer and science centers and reading rooms in rural schools, vocational training, and a range of other programs. Learning Centers for Girls Cognizant Foundation grants enabled IIMPACT, a non- governmental organization, to set up five Learning Centers providing primary education for young girls in rural areas of the State of West Bengal. The Centers provide meaningful and stimulating education up to grade five and then guide the girls’ entry into mainstream education. Digital Audio Library Support from Cognizant Foundation has helped the LV Prasad Eye Institute to produce digital books for visually-challenged students in colleges and other higher education institutions in Andhra Pradesh. Each year over 14,000 digital books will be distributed free of cost through this Digital Audio Library. Healthcare Initiatives Cognizant Foundation has also invested in local programs that extend access to healthcare to remote communities and under-served populations. Among the programs supported are Lifeline Express Hospital on a Train and Cancer Screening for Women. This focus complements Cognizant Foundation’s education mandate, as education and healthcare are two of the most significant factors that can have a positive impact on India’s progress.
  • 16. 14 l Cognizant sustainability report 2012 ENVIRONMENTAL STEWARDSHIP
  • 17. sustainability report 2012 Cognizant l 15 ENVIRONMENTAL RESPONSIBILITY IS A BUSINESS IMPERATIVE that is essential to ensure a long-term and cost-effective supply of the resources needed to support our business, and a means of reducing potential future risks to our operations from climate change. For these reasons, sound stewardship of natural resources is another pillar of our responsibility program. Toward that end, we have executed strategies to conserve energy and reduce waste through disciplined management practices, improved facilities design, and reengineered business processes. At the same time, we recognize the potential for significant cost savings arising from greater energy efficiency and reductions in waste. In addition, we see potential business opportunities in sharing our environmental and energy management practices with clients. Future generations of thinkers, doers and leaders can’t thrive unless we protect the environment in which they will live and work
  • 18. 16 l Cognizant sustainability report 2012 ENVIRONMENTAL STEWARDSHIP GO GREEN Cognizant’s environmental initiatives are organized under the auspices of our Go Green program, which works to engage our associates worldwide in improving environmental practices. Launched in 2009, Go Green focuses primarily on the following objectives: • Organizational change management and associate engagement • Energy and carbon management • Waste management • Process optimization • Environmental management system design and implementation • External reporting on our progress In the past year, we have scaled up Go Green involvement through the use of social media, including blogging, a Go Green Facebook page and sharing photos of employees’ “green acts”. Associates also developed Eco-Check, Cognizant’s Carbon Footprint Calculator, an App that allows employees to keep track of their personal carbon use and identify initiatives they can take in their daily lives to reduce their carbon footprint. Such efforts to use the latest technology keep the environmental discussion relevant and have helped the Go Green program mobilize more than 85,000 Cognizant employees around the world. Progress toward Environmental Targets Through the efforts of the Go Green program we have made meaningful progress toward our ambitious targets for reducing carbon emissions, water, paper and waste as compared to the 2008 baseline. The majority of our efforts are focused on reducing energy use and emissions. In fact, we have already attained our 2015 per capita emissions reduction goal of 40%. We also have taken the first steps to diversify our energy sources by buying bio-mass energy and signing an agreement for significant wind energy. In addition, we have a Company-wide focus on waste management, working across the organization to reduce waste, recycle and re-use. Per Capita Carbon Emissions MT of CO2-E per employee Among our key achievements are the following: • Per capita energy consumption has been reduced by 47% from 2008 through 2012, to 172 kWh per person per month. • Scope 1 and Scope 2 per capita carbon emissions have been cut by 40%. The principal contributors to this improvement included enhancements to the efficiency of diesel generators and a decrease in purchased electricity due to lower energy needs. • We have made a start toward procuring green energy for our operations. We started buying bio-mass energy for three of our facilities and we signed a long-term deal for buying wind energy for six of our facilities. 2.50 2.00 1.50 1.00 0.50 1.97 1.60 1.45 1.26 1.18 2008 2009 2010 2011 2012
  • 19. sustainability report 2012 Cognizant l 17 ENVIRONMENTAL STEWARDSHIP GREEN BRIGADIERS Through Go Green, we actively engage our associates to promote learning about environmental impacts and sustainable development, and to stimulate hands-on innovations that can be shared across our global network. Many of our most successful initiatives were inspired by Pedal Wise Cycle Club Employees in Chennai organized the Pedal Wise cycle club to encourage their colleagues to bicycle to work every Friday and reduce emissions. Now, the Pedal Wise phenomenon has spread to campuses in Bangalore, Coimbatore, Kochi and beyond. the efforts of Cognizant’s Green Brigadiers. Employees are actively involved in programs such as clean-up efforts, recycling, and teaching activities that raise the environmental awareness of residents in their communities. Soles for Souls The Cognizant U.S. Green Brigade launched shoe collection campaigns around the country to reuse footwear that would otherwise have been discarded. This program was initiated by our associates in Minot, ND, who joined Cognizant through our relationship with ING, but it quickly spread to other locations, including Teaneck, N.J.; Bentonville, AR; Tampa, FL; Holliston, MA; and Phoenix, AZ. They amassed more than 300 pairs of shoes, which were donated to victims of disasters such as Hurricane Sandy. Pedal Wise cycle club
  • 20. 18 l Cognizant sustainability report 2012 ENVIRONMENTAL STEWARDSHIP Technology Innovations Employees have pioneered such leading-edge technologies as the Dynapod, a stationary cycle that allows the user to generate electricity while also enjoying a good exercise workout. Dynapod, which was made entirely from scrap materials, can generate about 12 watts of power per minute, while also enabling the user to burn off 24 calories at the same time. The invention won a Confederation of Indian Industry (CII) Award for Best Kaizen. Teach Reuse Our volunteers organized and taught sessions for over 150 associates and 400 school children in Pune, to raise awareness of the importance of reusing items that would otherwise go to waste. Creative projects included making useful and decorative objects from waste. Starting early, Associates at Chennai, India dedicate their time to cleaning up Elliot's Beach. “I am happy to be a part of the Go Green initiatives at Cognizant, where I get a chance to bring out my creativity and come up with ideas that can be taught for sustainable living. The Teach Reuse initiative has helped educate our colleagues as well as school kids on simple waste management techniques that can  be used in our daily lives.” Sheetal Kondhare—Cognizant, Pune Recycling in Australia Associates in Australia organized a week-long recycling campaign to celebrate National Recycling Week in November 2012. The event was promoted on the Go Green blog and focused on encouraging employees to recycle printer cartridges, mobile phones, batteries and plastic bags. Cleaning Up In various communities across India, Cognizant employees have been active in clean-up campaigns. Green Brigadiers have helped pick up trash from a beach at Chennai. They reclaimed a hillock in Pune by cleaning as well as planting and adopting saplings with the help of local residents. In Hyderabad, our employees cleaned up a neighborhood and took part in a Green Walk in June 2012.
  • 21. sustainability report 2012 Cognizant l 19 ENVIRONMENTAL STEWARDSHIP NOTE: For additional information about our environmental stewardship activities and results, please refer to the Policies, Practices and Performance section beginning on page 29. Wealth out of Waste Our procurement team partnered with ITC, an India- based maker of paper products, that has conducted the Wealth out of Waste (WOW) program across many cities in India. We are collecting and recycling used paper sheets at our offices in Tamil Nadu, and Cognizant has been recognized as the top recycler of paper through the WOW program. E-Waste Recycling Across the Company, we now have bins to collect used electronic items such as mobile phones, batteries, and other forms of personal e-waste. Our Mumbai office also participated in the Nokia Take Back campaign organized by the mobile device manufacturer in December 2012, turning in used cell phones for recycling. Client Projects Project teams also extend their environmental stewardship efforts to clients. For example, a team in our London office helped a leading UK retailer build a Spool File Converter that turns reports into digital copies and sends emails rather than circulating printed reports. Working with a major insurance client, another project team developed a program to encourage insurance customers to switch to soft copies from printed policy documents. Cognizant achieved the #13 position in Newsweek’s U.S. Green rankings for 2012—improving on our #16 standing from 2011, and a significant advance from #138 in 2010. In 2012, and again in 2013, we were included in the FTSE4Good Index, representing companies traded in Global, European, U.S., Japan and U.K. markets that meet certain responsibility criteria. The Company won the FE-EVI 2011–12 Green Business Leadership Award for the IT segment. The award is given annually by The Financial Express publication of India. Recognition for Environmental Efforts We are proud that our team’s environmental conservation efforts have been recognized by independent parties.
  • 22. 20 l Cognizant sustainability report 2012 EMPLOYEE DEVELOPMENT
  • 23. sustainability report 2012 Cognizant l 21 As a knowledge-based business, Cognizant must depend on the talent, motivation and energy of our people to drive customer solutions, business performance and shareholder value. To that end, we strive to employ the best and brightest in our industry: employees who can think strategically about our clients’ needs, work collaboratively, and feel empowered to make a difference for customers and for our Company. Our employee development efforts are focused on attracting and retaining top talent, building a diverse workforce, and offering effective talent management programs to bring out the best in our people and cultivate successful careers. We are committed to providing attractive compensation, benefits and working conditions. In all geographies, Cognizant complies with local norms, employment laws and best practices. Additionally, we aim to foster a strong client-first work ethic, in which employees understand that Cognizant stands for professionalism, integrity and a devotion to excellence. Cognizant’s laser-like focus on education extends to our own employees, and to the skills they need to be valued partners for our clients
  • 24. 22 l Cognizant sustainability report 2012 Our programs encourage the development of talented employees with a passion for client service. EMPLOYEE SATISFACTION SURVEY PERCENTAGE OF FAVORABLE RESPONSES 2012: 73% The effectiveness of our employee development efforts is shown by the fact that we attracted 19,000 new associates in 2012 and maintained an attrition rate among the lowest in our industry. In addition, Cognizant received record high scores for the second consecutive year on our annual, independently conducted employee satisfaction survey. Known as the Business Effectiveness Survey (BES), conducted by the Hay Group management consulting firm, the survey yielded an all-time high of 73% favorable responses (bettering the record of 72% set in 2011), with improvements across 14 of 15 dimensions surveyed.
  • 25. sustainability report 2012 Cognizant l 23 EMPLOYEE DEVELOPMENT DIVERSITY AND INCLUSION We recognize that diversity and inclusion must be keystones of the way we do business. As the world around us is transformed by globalization, virtualization, breakthrough technologies, and a millennial generation of employees, we must embrace diversity as a core principle. Thus, diversity is essential to operating in a new world of business, with a new generation of workers, and new technologies that connect employees across the globe in new ways of working. We must embrace these changes to solidify our position in the industry by fostering a high-energy workforce and a culture driven by diverse experiences that point the way to innovative, market-leading ideas. Diversity and inclusion are also essential elements of our relationships with clients. As a leading, global company, we operate across cultures and serve a broadly diverse client base. Our clients have a right to expect us to share their corporate values of diversity and inclusion. We firmly believe that building the principles of diversity and inclusion into every facet of our organization will lend sharpness and a competitive edge to Cognizant. Continuing to build a dynamic culture founded on these principles will lead us to greater success. Completely Cognizant Over the past year we developed a comprehensive diversity and inclusion program, known as Completely Cognizant, which officially launched in early 2013. Our approach to diversity and inclusion champions our dynamic workforce, our culture of entrepreneurship, and strengthens our client and community partnerships. We recognize and embrace the uniqueness of our associates which will cultivate the success of our business. Strategic Pillars Our Completely Cognizant initiatives are built upon four strategic pillars to create a strong base for diversity and inclusion efforts among our associates, clients, and the marketplace: • People Our associates are ambassadors of diversity where their individual and cultural differences make Cognizant a dynamic workforce. • Culture Our corporate culture encourages and empowers our associates to become catalysts of change for diversity. • Clients Our strong client partnerships are built upon innovation, knowledge sharing, and networking in which diversity is a leading principle. • Community Our commitment is to create educational opportunities that strengthen and develop a diverse workforce for the future. A commitment to diversity and inclusion is vital to our sustainability efforts. Affinity Groups Cognizant is working to establish several affinity groups, which will consist of employee-led associations designed to further their members’ personal and professional development, promote diversity within the Company, and strengthen networking. In the U.S., for example, the affinity groups currently consist of Veterans, members of the Asian, African-American and Hispanic/Latino cultures, and Women Empowered.
  • 26. 24 l Cognizant sustainability report 2012 EMPLOYEE DEVELOPMENT WOMEN EMPOWERED Women Empowered was our first affinity group and is the successful model for our evolving affinity group initiatives. The emphasis of Women Empowered has been on increasing the number of women in management and senior leadership roles at Cognizant globally, and to strengthen the connections between our female employees and their counterparts in the client universe. We have established regional committees in North America, Europe and India to help organize events targeted toward the needs of female employees in local communities. The five main pillars of Women Empowered, which are designed to provide a collaborative and supportive environment for female associates, are: • Attract women as employees through active recruitment and diversity interview training for managers. • Retain female associates by ensuring that newly hired women are acclimated to the organization and that we address areas of importance, such as flexible work schedules and maternity benefits. • Develop talent through executive coaching, mentor programs and alignment with global career and leadership development efforts. • Communicate by building awareness of Women Empowered programs, establishing a community of female employees, and connecting through social media (such as our proprietary C2.0 platform, as well as LinkedIn and Facebook). • Network to enable female associates globally to share information. In this regard, volunteers help develop and execute events, such as breakfasts, “lunch and learns”, focus groups, webinars and panel discussions. Cognizant Community for Women Through Women Empowered, we have organized a special series of our signature Cognizant Community events for female clients. Topics of the three client events held around the U.S. during the past year were: “Future of Work: The Next Generation” (focusing on STEM Education for Girls, Dallas, April 2012); “Future of Work: The Female Effect” (covering how women leaders deliver competitive advantage, New York-New Jersey, July 2012); and “Shaping the Future of Work” (addressing women and social media, San Francisco, October 2012). Our Cognizant Community for Women program in Dallas in April 2012 is a prime example of the reach and impact of the format and its popularity with clients. The event was attended by a number of clients and prospects, drawn not only from Texas, but also from California, Colorado, Ohio, Michigan, Georgia and Arkansas. Attendees represented a cross-section of industries. Our tweet regarding the program was re-tweeted a number of times, advancing our goal of improving awareness of the role of STEM education and its relevance to female professionals. “ I discovered a new side of Cognizant—a company  that invests in the community and is very forward- leaning in their investments. In this case, the event was focused on STEM education.” Financial Services Client Executive
  • 27. sustainability report 2012 Cognizant l 25 TALENT MANAGEMENT Cognizant makes a significant investment each year to attract, retain and develop the potential of those talented people who will be essential to our continued success. We are committed to recruiting the best graduates, providing a range of education and training opportunities to further enhance their functional skills and leadership qualities, and effectively measuring and assessing their performance. That means providing training at every stage of an associate’s career, from entry level through their progress across the organization. We believe in providing clear job descriptions and measurable performance indicators, so that employees understand what is expected—and what is needed to succeed. Career Architecture As an organization growing at an accelerated rate, it is crucial to develop leadership talent to best serve our clients and manage our large and expanding business. We provide individualized career development tracks to empower our people to reach their full potential. Associates are encouraged to succeed in a variety of challenging roles over time. We build periodic job rotation into our employment guidelines. Internal job-posting programs inform associates as to opportunities available. Fast-track growth opportunities are offered to high performers, and the ability to shift tracks is encouraged to avoid an associate being limited to just one discipline. Because many of our employees work remotely at client sites, we also engage our client partners in evaluating the performance of our people. Cognizant Community for Women is an extremely popular program with our clients.
  • 28. 26 l Cognizant sustainability report 2012 EMPLOYEE DEVELOPMENT Cognizant Academy Our in-house learning and development organization, Cognizant Academy, offers a broad portfolio of knowledge, skill and personal development programs to help employees unlock their potential, perform to their full capabilities, better serve clients and grow as professionals. In addition to formal classes, programs also include self-study through video-based training and distance learning. Committed to excellence in workplace learning, Cognizant Academy offers educational programs for employees at all levels, with a structured approach that traverses the four critical stages of an employee’s life cycle: • Engage and Explore (Campus Hires): Focus on skill development and work-readiness with hands-on experience. • Specialize and Grow (Employees in Client Projects): Aid in up-skilling through role-based learning solutions and capability assurance mechanisms. • Manage and Evolve (First Time Leads and Managers): Focus on developing manager capabilities using an integrated talent management approach. • Succeed and Lead (Performing and Emerging Leaders): Foster the practice of leaders developing leaders, while providing both formal and informal leadership development solutions. Through its multi-modal formal and virtual learning solutions, Cognizant Academy provided over 17 million hours of training in 2012, with the average employee receiving 112 hours of training. With 47 learning hubs in Asia, the Americas and the UK, as well as 1,328 internal trainers and 238 external trainers, Cognizant Academy impacts associates across the globe. OCCUPATIONAL HEALTH AND SAFETY The most important thing we can do for our employees and their families is to ensure a safe working environment for everyone. We are proud that two new facilities, comprising about 15,000 employees, have been certified under the OHSAS 18001 occupational health and safety management system specification, bringing the coverage of certification to more than 50% of our operations in India. We also believe the Company must work with associates, suppliers, partners, customers, and governmental, non-governmental and community organizations to protect and enhance the health, safety and well-being of our employees. We strive to foster an open dialogue with our stakeholders to share relevant information, and contribute to the development of sound public policies and business initiatives. OVER 17 MILLION HOURS OF TRAINING (OVERALL) TRAINING HOURS (2012) 112 HOURS OF TRAINING (AVERAGE EMPLOYEE) Cognizant Health Day 2012 at our Sydney office.
  • 29. sustainability report 2012 Cognizant l 27 EMPLOYEE DEVELOPMENT Women’s Wellness To provide for the needs of our female employees, we have a number of Working Women Wellness initiatives, including opportunities to meet and chat on our campuses with doctors and other experts in women’s health. LEADERSHIP FOR A SUSTAINABLE FUTURE At Cognizant, we strive to provide solutions that are relevant to our clients and to their roles as global business leaders. This motivates us to address not only the needs of our customers, but also the broader issues facing our society now and in the years to come. We believe the answers lie in how we educate and inspire the next generation of leaders, protect their environment, and provide a workplace that encourages employees to reach their full potential. We are proud of our sustainability initiatives, and we will work unceasingly to lead the way toward a sustainable future. In 2008 Cognizant established a Health and Safety Policy to benchmark ourselves against the best in health and safety management practices. Among a number of recent activities to implement our Health and Safety Policy are the following: • Awareness campaigns In 2012 we launched several initiatives or campaigns around occupational health and safety covering associates and vendors. • Tracking We started tracking lost-time injuries in operations and initiated implementation of a global enterprise-wide injury tracking system. • Supply chain engagement We began sensitizing the supply chain on EHS risks and started introducing specific terms in vendor contracts on human rights, occupational health and safety. We maintain access to such health and safety resources as medical personnel (either permanently on-site or visiting) at most offices, as well as an Employee Assistance Program. We also have focused on ensuring healthful workplace conditions, through measures such as providing ergonomically designed chairs and locating temperature sensors in a manner that promotes a comfortable environment for associates. Programs have been organized around events such as "World No Tobacco Day" and "World Heart Day." Wellness First Cognizant initiated the Wellness First campaign, aimed at increasing awareness of important health, food and safety habits and proactive steps to keep well. Given the knowledge-based work done by our employees, and the demanding pace of work, wrist injury, eye- strain, and stress levels are frequent occupational issues. Accordingly, the Wellness First campaign dealt with such topics as coping with stress, work-life balance, ergonomics, wrist posture, proper diet, and other relevant issues. Road Safety Recognizing that the daily commute to and from work exposes employees to particular risks, we have engaged in a number of initiatives to promote road safety. Through the “It Can Wait!” campaign, employees were urged to take a formal pledge against texting and driving. For Global Road Safety Week, we organized programs on safety measures and arranged for the sale of bicycle helmets at a discounted price for employees. As a result of our numerous safety measures, Cognizant has received several independent awards and industry recognition. For example, we earned the Confederation of Indian Industry (CII) Employee Health and Safety Excellence Award, achieving the third highest performance among more than 60 companies. NOTE: For additional information about our employee development and diversity activities and results, please refer to the Policies, Practices and Performance section beginning on page 29.
  • 30. 28 l Cognizant sustainability report 2012 REDUCTION IN PER CAPITA PAPER CONSUMPTION, 2008–12 RAPIDLY IMPROVED OUR REPUTATION IN NEWSWEEK’S GREEN RANKINGS, 2009–12 RANKED # 13RANKED # 449 reduction in per capita emissions, 2008–12 40% 60% increase in Annual volunteer hours, 2010–12 hours 216,000+ hours 19,000+
  • 31. sustainability report 2012 Cognizant l 29 About this Section Our third annual Sustainability Report documents the year ended December 31, 2012, a period in which Cognizant’s revenue increased 20%. This section is written in compliance with the Global Reporting Initiative (GRI) G3.1 sustainability reporting framework and the organization of this report mirror’s the GRI’s structure. This report covers all the GRI elements including: Economic (EC), Environmental (EN), Human Rights (HR), Labor (LA), Society (SO), and Product Responsibility (PR) performance indicators, as well as Disclosures on Management Approach (DMA) to these topics. References are made to Cognizant Annual Report 2012, Form 10-K and the Sustainability Report 2012 to avoid repetition. Part I: Profile Disclosures 1. Strategy & Analysis 1.1 Statement from the most senior decision-maker of the organization. Refer to page 2 in Cognizant Sustainability Report 2012. 1.2 Key impacts, risks, and opportunities. As a company whose “product” is information services and consulting advice, our supply chain is essentially knowledge- based. We are a people-intensive company. Thus, our operations are not significant consumers of raw materials, nor do we sell a product that requires packaging or shipping. Our primary impact on society and the environment is the care and well- being of our nearly 157,000 employees. Our facilities do consume natural resources and energy for the physical premises and systems, and to provide employees with proper working conditions. Our employee base grew by 14% in 2012, as we have expanded to serve the increasingly complex needs of a growing number of clients. We rank # 53 (up from #68 in 2011) on HR Executive magazine’s 2012 roster of the 100 largest U.S.-based non-government employers. We view our employee base as a significant resource in contributing to society, and have an active program known as Outreach to solicit, coordinate and support volunteer efforts. With respect to our key sustainability priorities, we believe that improving education is one of the most significant ways in which we can have a long-term positive impact on sustainability across the globe. This belief drives our intense commitment to help people gain the education necessary to participate in the global economy. Our support also underlines the critical need among businesses worldwide to meet the increasing demand for highly educated workers. At the same time, we recognize that improved education can bring more people out of poverty and give them the knowledge necessary to solve some of our world’s pressing social and environmental challenges. Cognizant Sustainability Report 2012 Policies, Practices & Performance
  • 32. POLICIES, PRACTICES & PERFORMANCE 30 l Cognizant sustainability report 2012 In addition, we are working pragmatically to improve the management of our environmental impact. We are committed to lead our industry in conserving energy, reducing and disposing of waste, and recycling. Cognizant actively supports national and international climate-change policies, protocols and initiatives. Further, we proactively teach our associates best practices for conserving energy and shrinking individual carbon footprints—all in an effort to operate in an environmentally friendly manner and drive sustainable economic growth. Another area in which we have a significant and positive impact is in providing opportunities to our employees. In addition to competitive compensation and benefits, we also provide solid global career opportunities with rapid advancement, primarily because we have always focused on building a global team and accessing top talent from leading universities and other companies in our market. Another vital aspect of our employment practices is the cultivation of a diverse workforce, supported by an increasing emphasis on initiatives such as our Women Empowered and Completely Cognizant programs. We believe that our emphasis on talent, coupled with our unique global culture, rank among our key differentiators. Also, to the extent that our services enable clients to operate more productively, effectively and cost-efficiently, we may have an indirect positive impact on stimulating growth and economic opportunity, while helping clients reduce their resource consumption. We believe our focus on the Future of Work—with its forces of globalization, virtualization, millennials and technology—puts us at the forefront of the new economy. It is changing the ways in which businesses, consumers, employees and others relate to and interact with each other. It is also driving businesses to be more transparent and more accountable for the positive and negative impacts they have on society. Finally, we strive to be an extremely well-managed company, with strong governance, a high standard of ethics, robust financial performance and a track record of providing rewarding careers to our associates. We believe this commitment has an indirect positive impact on the value and growth prospects of the Company over the long-term. 2. Organizational Profile 2.1 Name of the organization. Cognizant Technology Solutions Corporation 2.2 Primary brands, products, and/or services. Refer to pages 4 & 5 in Annual Report 2012 and page 6 to 12 in Form 10-K 2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures. Cognizant is publicly traded on The NASDAQ Stock Market (CTSH). Cognizant is a member of the NASDAQ-100, the S&P 500, the Forbes Global 2000, and the Fortune 500 and is ranked among the top performing and fastest growing companies in the world. We serve clients in the United States, Europe, and increasingly in other international markets such as Asia- Pacific and South America. We utilize a seamless global sourcing model that combines technical and account management teams located on-site at the customer location and at dedicated near-shore and offshore development and delivery centers. For more information refer to Form 10-K — Exhibit 21.1 (List of subsidiaries of the Company) 2.4 Location of organization's headquarters. Headquartered in Teaneck, New Jersey (U.S.) 2.5 Number of countries where the organization operates. To serve our clients’ needs, we have more than 50 delivery centers in 14 countries and we are continuously adding or expanding global delivery capacity. Currently, our delivery centers are located primarily in India, China, the United States, Canada, Argentina, Hungary and the Philippines.
  • 33. POLICIES, PRACTICES & PERFORMANCE sustainability report 2012 Cognizant l 31 2.6 Nature of ownership and legal form. Publicly held U.S. corporation 2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries). Our primary customers are Global 2000 companies and our business is organized around four vertically-oriented business segments: Financial Services; Healthcare; Manufacturing, Retail and Logistics; and Other, which includes Communications, Information, Media and Entertainment and High Technology. 2.8 Scale of the reporting organization. Revenues: $7.35 billion; Employees: nearly 157,000 as of December 31, 2012 2.9 Significant changes during the reporting period regarding size, structure, or ownership. There were no substantial changes except for several small acquisitions. 2.10 Awards received in the reporting period. We are pleased that Cognizant has been ranked among the Top 500 in the Newsweek Green Rankings since 2009. We have improved our position each year, and ranked #13 among the 500 largest publicly traded companies in the U.S., up from #16 in 2011 and #449 in 2009. We also stand as #51 in Newsweek’s Global Green rankings. Additionally, Cognizant was recognized with the following awards: • Ranked among the Fortune 500 as well as Fortune’s lists of both the “World’s Most Admired” and “Fastest Growing Companies.” • Won FE-EVI Green Business Leadership Award 2011-12. • Cognizant Coimbatore won the CII EHS Award (III Place) in Large Scale Category. • Baghmane Tech Park (Bangalore) won the first prize in the Service (Large Scale) Category of the 5S Excellence Award 2012 from CII. • Listed in 2013 IDC MarketScape report for leadership in life science drug safety services. • Featured in The Everest Group list of leaders in capital markets BPO. • Named to the “InformationWeek 500” list of top technology innovators across America. • Received the top rating in a survey by KPMG for client satisfaction across Europe. 3. Report Parameters 3.1 Reporting Period for information provided. January 1, 2012 to December 31, 2012 3.2 Date of most recent previous report. June 2012 3.3. Reporting cycle. Annual 3.4 Contact point for questions regarding the report or its contents. Mark Greenlaw — Vice President, Sustainability & Educational Affairs E-mail: sustainability@cognizant.com 3.5 Process for defining report content. To determine this report’s content, we formed a Sustainability Reporting Committee, led by our VP of Sustainability. The committee included executives from the areas that regularly interact with our stakeholders: Investor Relations; Public Policy; Compliance; Finance; Human Resources; Environment; Facilities & Procurement; Marketing; and Social Programs. This committee reviewed all GRI indicators to determine which were most material, based on their interactions with
  • 34. POLICIES, PRACTICES & PERFORMANCE 32 l Cognizant sustainability report 2012 constituent stakeholder groups. This resulted in tagging each indicator as “High,” “Medium,” “Low,” or “No” materiality. As we are a knowledge-based company that provides services rather than products, our greatest assets are our employees and the trust of our clients. Given this nature, we deemed the following areas as highly important to our stakeholders: • Governance, ethics and protection of customer privacy and data. • Overall quality of service delivery and mechanisms for gathering customer feedback. • Labor practices, including investing in employees through training, measuring employee satisfaction and ensuring a safe and rewarding workplace. • Our commitment to communities, particularly our global efforts to improve education. • Our environmental performance, especially initiatives to track and reduce greenhouse gas emissions. 3.6 Boundary of the report. The report covers a global scope, which includes all countries and operating units of the Company, leased and owned facilities, and all functions and business units under operational control. 3.7 Limitations on the scope or boundary of the report. There were no limitations on the boundary of the report. 3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations. The report covers a global scope, which includes all countries and operating units of the Company, leased and owned facilities, and all functions and business units under operational control. There were no limitations on the boundary of the report. Outsourced operations such as food and beverage operations and transport operations are excluded from this report. 3.9 Data measurement techniques and the bases of calculations. We have followed the GRI Indicator Protocols for data measurement. Additionally, we have used published standards for data measurement such as The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition) for carbon emission calculations and the World Resources Institute’s toolkit for calculating air travel emissions. In all cases, we are reporting actual data and not estimates. 3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement. None 3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report. Our last sustainability report was for the year 2011. We have not had any significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report. Going forward, we will continue to report on an annual cycle for all our operations. 3.13 Policy and current practice with regard to seeking external assurance for the report. At this point in time, we have not chosen to pursue third party assurance of our sustainability report. 4. Governance, Commitments, and Engagement 4.1 Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight. Our Board of Directors includes an independent, non-executive chairman and eight of our ten directors are “independent” under rules of The NASDAQ Stock Market, where Cognizant is listed. Directors are required to complete an extensive annual survey to guard against conflicts of interest that could interfere with the exercise of independent judgment.
  • 35. POLICIES, PRACTICES & PERFORMANCE sustainability report 2012 Cognizant l 33 We also have had great continuity with our Board, with four independent directors serving at least 10 years and the other two independents serving two years and four years, respectively. Our Audit Committee, whose members are in regular communication with the chief financial officer (CFO), controller, general counsel and heads of compliance and internal audit, consists of four independent directors, one of whom serves as chairman and who is an audit committee financial expert, having served as CFO at Paine Webber and Pan American Airways. Our nominating and corporate governance committee develops and recommends corporate governance policies and oversees the evaluation of the board’s effectiveness. Sustainability performance is also reviewed at the Board level. Cognizant’s Vice President of Sustainability leads a global committee that is responsible for developing and driving implementation of the corporate responsibility and sustainability strategy and targets guided by our global policy, described previously. Cognizant’s President is responsible for reviewing the committee’s performance against this policy on an annual basis and reporting the results of this review to our Board of Directors or a Committee of the Board of Directors. 4.2 Indicate whether the Chair of the highest governance body is also an executive officer. The Chairman of the Board is an independent director and not an executive officer in the Company. 4.3 For organizations that have a unitary board structure, state the number and gender of members of the highest governance body that are independent and/or non-executive members. Our Board of Directors includes an independent, non-executive chairman and eight of our ten directors are “independent” under rules of The NASDAQ Stock Market, where Cognizant is listed. One of the directors is a woman (non-executive). 4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body. We formally engage with our shareholders every year in our annual shareholder meeting. We also brief shareholders through public conference calls every quarter on our performance and business outlook. Meetings with substantial shareholders are held regularly to explain our performance and plans and to solicit feedback. We have a whistleblower hotline, called the Compliance Helpline, which serves as a vehicle for employees, clients, vendors and others to report concerns anonymously about ethical behavior. Our dedicated compliance resources include our General Counsel, Compliance Office, Enterprise Risk Management Office and Chief Security Officer. Complaints are routed jointly to the Compliance Office and General Counsel with a detailed account of all reported incidents sent monthly to the audit committee chairman and to executive management. We conduct an annual survey of associates to monitor employee satisfaction levels and solicit feedback on leadership, management and other concerns, including on ethics and business conduct. An outside party tabulates the survey results and they are reviewed annually by management to determine if any actions need to be taken. In addition, we offer exit interviews to all terminated associates and the results of those interviews are communicated to the Compliance Office and the General Counsel if they contain allegations of fraud or unethical conduct. 4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives and the organization's performance. Refer to Proxy Statement for the 2013 Annual Meeting of Stockholders (Form DEF 14A) Pages 42–69. 4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided. Directors are required to complete an extensive annual survey to guard against conflicts of interest that could interfere with the exercise of independent judgment. We also have an optimal mix of long-serving and newer directors on our Board, with four independent directors serving at least 10 years and the other independents serving between one and five years, respectively. 4.7 Process for determining the composition, qualifications, and expertise of the members of the highest governance body and its committees, including any consideration of gender and other indicators of diversity. Refer to Form 10-K: Page 29
  • 36. POLICIES, PRACTICES & PERFORMANCE 34 l Cognizant sustainability report 2012 4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation. Cognizant has established numerous internally developed statements around values, codes of conduct, and principles related to economic, environmental, and social performance. These include our Cultural Value Drivers, our Code of Ethics, and our Sustainability Policy. Cognizant’s Seven Cultural Value Drivers: • Open — providing an environment of open doors and open minds. • Transparent — our communications, whether positive or negative, are always proactive, direct and honest, and we view transparency as critical to the health of our Company. • Driven — with a “can do” approach focused on delivering excellence at all times, and we expect and reward personal and team initiative. • Empowered — our associates have the freedom to find the best way to meet a customer’s needs within the structure of our Code of Conduct. • Opportunity-focused — presenting excellent potential for career growth. • Flexible — able to adapt in real time to each new marketplace challenge. • Collaborative — predicating the growth of individuals on their contributions to their team’s success in delivering exceptional customer experiences. Code of Ethics Our Code of Ethics reaffirms our core values and standards of conduct that is designed to: • Communicate the basic principles of policies, business ethics and legal requirements. • Protect Cognizant’s reputation and ensure that all associates understand the rules of the game. • Assist in making decisions to make sure our business is conducted with integrity and honesty as well as in accordance with legal requirements. • Instill trust and confidence in the minds of our associates, customers, shareholders, vendors and other stakeholders. The Code contains our policies and procedures on a broad range of issues, including: the acceptable use of Cognizant and client assets; accuracy of books, records and public reports; honest and fair competition; compliance with laws, rules and regulations; confidential information and intellectual property protection; conflicts of interest; insider trading; political activities; respectful treatment of associates, customers and business partners; and responsible use of social networking. The Code also serves as an aid to associates and managers when making decisions. It contains industry-specific examples, frequently asked questions, key contacts and links to internal policies, among other things. The code can be found at: http://www.cognizant.com/OurApproach/CodeofEthics.pdf Sustainability Policy We have adopted a Policy on Sustainability and Corporate Responsibility, key elements of which include: • Maintaining high standards of honest, ethical and legal business behaviors at all times. • Providing a workplace free from discrimination, harassment or any type of abuse. • Ensuring that child labor or forced labor is not used in any operations. • Providing safe working conditions for all employees. • Complying with all applicable environmental laws, regulations and standards and tracking and reducing negative environmental impact. • Engaging with our suppliers to ensure they follow our supplier code of conduct and are striving to improve the sustainability of their businesses. The full text of our Sustainability Policy, including the complete scope of our commitments to corporate responsibility, can be found at http://www.cognizant.com/OurApproach/Sustainability%20Policy.pdf
  • 37. POLICIES, PRACTICES & PERFORMANCE sustainability report 2012 Cognizant l 35 4.9 Procedures of the highest governance body for overseeing the organization's identification and management of economic, environmental, and social performance. Sustainability performance is reviewed at the Board Level. Cognizant’s Vice President of Sustainability leads a global committee that is responsible for developing and driving implementation of the corporate responsibility and sustainability strategy and targets guided by our global policy, described previously. Cognizant’s President is responsible for reviewing the committee’s performance against this policy on an annual basis and reporting the results of this review to our Board of Directors or a Committee of the Board of Directors. 4.10 Processes for evaluating the highest governance body's own performance, particularly with respect to economic, environmental, and social performance. Refer to Proxy Statement for the 2013 Annual Meeting of Stockholders (FORM DEF 14A ) Pages 42–69. 4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization. We take a precautionary approach as defined by Article 15 of the Rio Principles and have implemented significant programs to reduce our carbon emissions. 4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses. Our policies are based on internationally recognized standards and frameworks such as the United Nations Global Compact, International Labour Organization (ILO) and the Global Reporting Initiative (GRI). We have implemented an Environment Management System, as defined by ISO 14001 standards in our India and UK offices, which allows us to identify and control the environmental impact of our activities; continually improve our environmental performance; and implement a systematic approach to setting, achieving and measuring environmental objectives and targets. This system has been certified at six of our facilities. 4.13 Memberships in associations and/or national/international advocacy organizations. We have memberships in the following industry associations and national/international advocacy organizations: U.S.-based organizations • U.S. India Business Council (our CEO is part of the Leadership Council) • U.S. Chamber of Commerce • Business Roundtable • Information Technology Industry Council • Trans-Atlantic Business Council • TechAmerica India-based organizations • NASSCOM (our Group Chief Executive—Technology and Operations chairs the Quality Forum) • American Chamber of Commerce, India (our Senior Vice President—Marketing serves as the Chairman of the Chennai Chapter and is on the national Executive Board) • Confederation of Indian Industry (our Group Chief Executive—Technology and Operations serves on the Board of the Southern Regional Council, and our Director of Sustainability serves in the Regional Corporate Sustainability Initiative Forum) European-based organizations • Intellect • American Chamber of Commerce/European Union • Swiss-American Chamber of Commerce
  • 38. POLICIES, PRACTICES & PERFORMANCE 36 l Cognizant sustainability report 2012 4.14 List of stakeholder groups engaged by the organization. We engage with: • Customers • Stockholders • Employees • Governments • NGOs • Suppliers 4.15 Basis for identification and selection of stakeholders with whom to engage. Since Cognizant was founded in 1994, we have been engaging with multiple stakeholders to address key areas of our business that will impact our long-term growth and success. The stakeholder groups with which we have engaged since that time include customers, stockholders, employees, governments, NGOs and suppliers. Should a new stakeholder group wish to engage with us, our management team assesses the impact the stakeholder group has on our long-term success, the degree to which their priorities intersect with ours, our ability to productively engage with them, and the legitimacy of the stakeholder group in the context of other stakeholders. 4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group. Customers While all stakeholder groups are important to Cognizant, we see our customers as the stakeholder group having the greatest impact on our long-term success. We have a customer-focused business model, in which our client partners and account managers are typically embedded at the customer location and constantly monitor customer satisfaction and areas for improvement. Many customers also have regular interaction with our top management through structured account reviews every quarter. We also invite our key customers to an annual customer community meeting where we share ideas and industry best practices, and solicit feedback as to how we can best meet their needs. We conduct an annual independently- administered customer satisfaction survey to formally assess how well we are meeting their needs. Finally, we participate in regular customer-initiated surveys and reviews of our performance across multiple dimensions of sustainability. Often, in these reviews, our customers will ask to see our public disclosures on sustainability, and in response, we provide a copy of this report. Of primary interest to our customers is our ability to solve their business and technology problems, scale our business to meet their future needs, and maintain competitive pricing. Additionally, they expect us to operate in a highly ethical manner, minimize our impact on the environment, and uphold the highest standards for labor practices and human rights. Our customers also expect us to ensure that our suppliers conform to similarly high standards, and as a result of engagement on this topic we have invested in improving our supplier sustainability processes and reporting. Stockholders As a publicly-traded company, our stockholders are our owners and therefore constitute another extremely important stakeholder group. We formally engage with our stockholders every year in our annual stockholder meeting. We also brief stockholders through public conference calls every quarter on our performance and business outlook. Meetings with substantial stockholders are held regularly to explain our performance and plans and to solicit feedback. Our investors are primarily concerned about revenue growth, profit margins, business risks, and our overall reputation. These issues are primarily addressed through our financial reporting and disclosures. Our policies with respect to Governance and Ethics also take the interests of our stockholders into account. Employees As a people-based business, our employees are the key to our success. We have frequent and deep opportunities to engage with them, both formally and informally. Our open and transparent management culture encourages instant and spontaneous feedback on issues that are material to employees by way of blog posts and comments, e-mails, participative committee meetings, and town hall meetings. We also conduct an annual formal independently-administered employee satisfaction survey, using the survey results to create action plans to address any issues identified. Our employees
  • 39. POLICIES, PRACTICES & PERFORMANCE sustainability report 2012 Cognizant l 37 are primarily interested in their professional development and advancement, compensation and benefits, and working conditions. They wish to work for a responsible and ethical company that provides opportunities to give back to the communities in which they live and work. We are extremely proud of the way our employees serve not only our clients, but also our communities. One of the goals of this report is to highlight and recognize the important work our employees do through volunteer programs such as Outreach and Go Green. Governments Government stakeholders are primarily interested in our compliance with laws and regulations and our ability to provide economic benefit through employment, wages paid to their constituents, and taxes paid to the government. They are also interested in the size and nature of investments we make in local communities, in areas such as education. For example, our U.S. STEM Education program, Making the Future, was developed in part due to our desire to address an important issue to the U.S. Government: the pipeline of U.S. STEM workers. We work directly and through industry associations to engage with governments at national and local levels on a frequent, regular basis. Government agencies regularly inspect/audit our operations and we also regularly report on our financial, environmental and labor compliance. NGOs We engage with NGOs to work on issues of mutual interest facing the community, such as access to primary education, STEM education and primary health care access. We work with global NGOs such as the Carbon Disclosure Project and the Global Reporting Initiative that are shaping the emerging issues of sustainability and the triple bottom line. We work with education-oriented NGOs such as Change the Equation and Citizen Schools on U.S. education issues; our Making the Future program, discussed in this report, was developed around our engagement with these two NGOs. The frequency of these engagements varies with each NGO and issue; with some NGOs we engage weekly, whereas with others it may be on an ad hoc or annual basis. Suppliers Suppliers are another important stakeholder group. Our suppliers are primarily interested in long-term beneficial relationships with Cognizant. We engage with them through regular business meetings and formal requests for proposal. In 2011, we began surveying our suppliers to understand their perception of our relationship, and also introduced a new Sustainable Procurement Policy that includes Supplier Standards of Conduct and a supplier sustainability survey, as described in the “Supply Chain Integrity” section. Our goal is to engage deeply with our top 50 suppliers. 4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. See 4.16 above PART II: Disclosures on Management Approach (DMA) ECONOMIC Goals and Performance As a U.S. publicly traded company, Cognizant is committed to providing maximum long-term returns to its shareholders. Cognizant’s economic goals and financial performance are extensively documented in our annual report and other regulatory filings which can be found on our investor relations website at www.investors.cognizant.com. Our industry-leading performance provides substantial financial reward to our investors. Our nearly 157,000 employees benefit by having high-paying knowledge-worker jobs, with excellent working conditions, interesting and rewarding work, and ample career growth. We seek to build a strong and positive market presence in the communities in which we work. We hire a vast majority of our employees in the local geography and provide highly competitive compensation. We work to use suppliers based in the local community to the extent possible.
  • 40. POLICIES, PRACTICES & PERFORMANCE 38 l Cognizant sustainability report 2012 ENVIRONMENT Goals and Performance Cognizant is committed to leading our industry in energy conservation, waste reduction and recycling. Taking a responsible stance with respect to the environment is a business imperative. We have set organization-wide goals with respect to energy and carbon emissions. Our goal was to reduce energy consumption and emissions by 40% per capita by 2015 versus our 2008 baseline. We achieved our goal ahead of time. We have focused on energy conservation, energy efficiency and energy productivity, which included reducing energy waste, improving energy efficiency, and generating higher productivity from a unit of energy, all of which helped us reduce per capita energy consumption by 47%. We believe in reducing our impact on the environment by managing our waste in an efficient and sustainable manner. In order to help our associates contribute towards this organizational objective, we took a first step of installing e-waste recycling bins across our facilities in India and we encourage associates to dispose their e-waste responsibly. E-waste is then recycled through Cognizant authorized recycling partners. Similar recycling campaigns also took place in Australia, where we participated in the National Recycling Week and encouraged associates to recycle their waste responsibly. Policy We have a series of policies that govern our environmental impact. Our Sustainability Policy outlines our overall commitment to “Complying with all applicable environmental laws, regulations and standards, and tracking and reducing negative environmental impact”. Additionally, we have an Environmental Policy which further guides our actions in this area. Organizational Responsibility We have a VP of Sustainability, reporting to our President, who oversees performance across all aspects of sustainability. Reporting to our VP Sustainability is our Senior Director of Sustainability who oversees our “Go Green” team which focuses specifically on our environment, health and safety performance. This team manages our annual Carbon Disclosure Project data gathering and reporting, our ISO14001 and OHSAS 18001 certification processes, works with facilities management on energy efficiency and water conservation programs, and also organizes our “Green Brigades” across the globe, which are grass-roots groups of employees who wish to become involved in projects to benefit the environment in the communities in which they live and work. Training and Awareness The Go Green team provides frequent Company-wide communications on topics ranging from energy and resource conservation to personal conservation. We provide environmental training via e-learning and specific training with resources, such as our Energy Handbook, to our facilities management teams to ensure they are trained in best practices around energy management and conservation. As part of our ISO14001 certification process, we provide facility management teams with information about hazardous materials and proper disposal procedures. We leverage social media tools such as Facebook, Twitter and internal blogging tools. More than 100,000 employees are engaged on the blogging platform with over 350 blog posts on the environment. Monitoring and Follow-Up The Go Green team gathers data on both a monthly and annual basis. We follow industry standard protocols to gather and report environmental performance information, such as the Greenhouse Gas Protocol. In key areas such as energy use, we produce a monthly dashboard on energy consumption, and use Six Sigma and lean techniques to work with managers at under-performing facilities to learn from the best practices employed by the top-performing facilities. Other areas are monitored on a quarterly or annual basis. As outlined in our Sustainability Policy, we conduct annual sustainability reviews with our President, who then reports the results to our Board of Directors or a Committee of the Board.
  • 41. POLICIES, PRACTICES & PERFORMANCE sustainability report 2012 Cognizant l 39 LABOR Goals and Performance Meeting the needs of a growing customer base and helping clients adapt to a rapidly changing technological and competitive landscape requires ever greater numbers of talented and highly motivated people. Therefore, our Labor practices are an integral part of Cognizant’s sustainability efforts. We focus on attracting and retaining the best talent; building an increasingly diverse workforce; enhancing the skills and career potential of our associates; and providing attractive compensation, benefits and working conditions. In addition, we aim to foster a culture of service, characterized by a passionate commitment to partnering with clients and achieving exceptional results. We finished the year with nearly 157,000 employees, which is an increase of approximately 19,000 over the prior year. Annualized turnover, including both voluntary and involuntary, was approximately 11% for 2012. For the second year in a row, we received record high scores on our annual, independently conducted employee satisfaction survey. The Business Effectiveness Survey (BES) conducted annually through Hay Group, a management consulting firm, returned a new all-time high score of 73% favorable responses (bettering the record score of 72% set last year), with improvements across 14 out of 15 dimensions surveyed. For one dimension, the score remained the same compared to last year. We also launched the Women Empowered (WE) program across Cognizant. The program was launched to mark Women’s Day on March 8, 2012 and aims at empowering Cognizant’s women associates and fostering a gender just workplace. We comply with all local laws and regulations regarding labor practices and in many countries are required to report information to government organizations, such as the U.S. Department of Labor. Like others in our industry, Cognizant is regularly subject to random immigration audits by the Department of Homeland Security. These audits are designed to verify the status and identity of foreign workers in the United States and ensure compliance with appropriate H-1B visa laws and regulations. After hundreds of such DHS audits, Cognizant maintains a nearly 100% compliance rate. Policy Since we are a people-driven company, we have numerous internal policies which guide labor practices, such as hiring, performance management, compensation, training and development. Additionally, our Sustainability Policy (found online at http://www.cognizant.com/OurApproach/Sustainability%20Policy.pdf) outlines the fact that our internal policies are based on internationally recognized standards and frameworks such as the United Nations Global Compact, International Labour Organization (ILO) and the Global Reporting Initiative (GRI). Specifically, in the area of labor practice, we are committed to: • Providing a workplace free from discrimination, harassment or any type of abuse. • Providing safe working conditions for all employees, and complying with all local laws with respect to wages, hours and benefits. Additionally, our Code of Conduct (found at http://www.cognizant.com/OurApproach/CodeofEthics.pdf) outlines many additional policies regarding our commitment to being an equal opportunity employer and providing a workplace free of discrimination and harassment. As part of our efforts to certify our facilities using OHSAS 18001, we also have a formal policy on Occupational Health and Safety and strive to provide a healthy and safe work place. Many of our facilities have been built within the last 10 years; three of our recently built facilities are LEED® (Leadership in Energy and Environmental Design) certified. We focused on workplace sustainability: • Extended the OHSAS 18001 certification to two more large facilities. • Launched Wellness First program—a health and well-being program which covers nutrition, ergonomics and general well-being. • Maintained a 1 to 1 help assistance program, a 24x7 accessible employee support program.
  • 42. POLICIES, PRACTICES & PERFORMANCE 40 l Cognizant sustainability report 2012 Organizational responsibility Our Chief People Officer (CPO), reporting to our President, has global responsibility for all labor practices at Cognizant. Reporting to the CPO are country-specific HR leaders who apply the goals and targets set by our CPO within the context of each of the countries in which we operate. Additionally, groups exist to focus on specific human resources areas, such as training (Cognizant Academy), career development and performance management, compensation, benefits, and compliance. Also, our Director of Sustainability supports the CPO in pursuing OHSAS 18001 certifications for Occupational Health and Safety. We also have a designated leader of our Women Empowered and diversity initiatives. As an organization, Cognizant has been committed to providing associates with a best-in-class, healthy and safe work environment. The year 2012 saw the Administration and HR teams play host to various campaigns like the Emergency Response Training sessions, medical check-ups, eye-screening camps, and sessions to encourage and promote workplace health and safety. HUMAN RIGHTS Goals and Performance Cognizant is deeply committed to ensuring the basic human rights of all people. Cognizant has extensive policies in place to prevent against discrimination, and Cognizant employs no child or forced labor within its operations. Newly implemented procedures are also in effect to ensure that human rights violations are not occurring in our supply chain. Policy Our Sustainability Policy, Core Values and Standards of Business Conduct, and Supplier Code of Conduct guide Cognizant’s actions in the area of Human Rights. These policies are based on internationally recognized standards and frameworks such as the United Nations Global Compact and International Labour Organization (ILO). Our Sustainability Policy (found online at http://www.cognizant.com/OurApproach/Sustainability%20Policy.pdf) outlines Cognizant’s commitment to: • Maintaining high standards of honest, ethical and legal business behavior at all times and complying with all applicable laws and regulations of the countries and locales in which we operate. • Providing a workplace free from discrimination, harassment or any type of abuse. • Ensuring that child labor is not used in any operations. • Ensuring that all forms of forced or compulsory labor are forbidden in any operations. • Engaging with our suppliers to ensure they follow our Supplier Code of Conduct and are striving to improve the sustainability of their businesses. We recognize the right of employees around freedom of association, in line with the Universal Declaration of Human Rights issued by the United Nations in 1948. Our Supplier Code of Conduct (found at http://www.cognizant.com/RecentHighlights/Supplier_Standards_Conduct.pdf) was implemented in 2011 to ensure human rights violations are not occurring within our supply chain. Our Standards of Business Conduct (found at http://www.cognizant.com/OurApproach/CodeofEthics.pdf) provides guidance to all employees on holding ourselves to the highest ethical standards and complying with all laws in the countries in which we operate. Organizational Risk Assessment We have a cross-functional risk assessment process that includes members of our risk management, compliance, legal, human resources, finance, procurement and sustainability functions. We attend industry conferences and stay abreast of current trends on all types of sustainable development issues including human rights, ethics and sustainable supply chain. We raise and track risks at the Company level, and we analyze our business for risk across both geographical and topical dimensions. Impact Assessment
  • 43. POLICIES, PRACTICES & PERFORMANCE sustainability report 2012 Cognizant l 41 Due to the nature of our business, we have very minimal risk of human rights violations. While the risk is low, our analysis has identified our supply chain as the highest risk area, particularly within our labor subcontractor vendor base (such as our facilities maintenance vendors, food service vendors, transportation vendors, security providers, and other similar service vendors). We have identified that vendors providing services in some countries have higher risks than others, and prioritize our monitoring activities accordingly. We work closely with these vendors to communicate our policies around ethical behavior and human rights, require them to accept our Supplier Code of Conduct, and monitor them for adherence to the code. Organizational Responsibility Responsibility for the Human Rights aspect is shared across our Chief People Officer, General Counsel, Director of Risk Management, Director of Compliance, Director of Procurement and VP of Sustainability. Our performance on Human Rights is reviewed annually by our President pursuant to our Sustainability Policy, who then reports into our Board of Directors or Committee of the Board. Training and Awareness Basic Human Rights training and awareness for all employees is accomplished through our mandatory training on our code of ethics. Leaders of areas such as Procurement and Sustainability attend industry conferences and stay abreast of current literature on human rights issues. Monitoring, Follow-Up and Remediation With the support of the executives identified above under the Organizational Responsibility section, our Director of Compliance monitors ongoing performance against aspects relating to Human Rights and works with business unit and functional heads to address any weaknesses or performance deficiencies. Any material issues are then reported to the Board Audit Committee. Cognizant encourages its suppliers to publicly disclose their performance on environmental, social, and governance measures. SOCIETY Goals and Performance We take our governance responsibilities very seriously at Cognizant and have gained a reputation as an ethical company with strong governance policies and practices. We consider ethical behavior the cornerstone of our long-term business success. An indication of this commitment is that since our inception in 1994, Cognizant has never experienced a material weakness in this aspect. Policy Our Sustainability Policy, Core Values and Standards of Business Conduct, and Supplier Code of Conduct guide Cognizant’s actions in the aspects that relate to Society. These policies are based on internationally recognized standards and frameworks such as the United Nations Global Compact and International Labour Organization (ILO). Our Sustainability Policy (found online at http://www.cognizant.com/OurApproach/Sustainability%20Policy.pdf) outlines Cognizant’s commitment to: • Maintaining high standards of honest, ethical and legal business behavior at all times and complying with all applicable laws and regulations of the countries and locales in which we operate. • Competing ethically for our business without paying bribes, kickbacks or giving anything of material value to secure an advantage. • Engaging with our suppliers to ensure they follow our Supplier Code of Conduct and are striving to improve the sustainability of their businesses. More detailed guidance on ethical behavior is outlined in our Core Values and Standards of Business Conduct (found at http://www.cognizant.com/OurApproach/CodeofEthics.pdf), which is designed to: • Communicate the basic principles of policies, business ethics and legal requirements.
  • 44. POLICIES, PRACTICES & PERFORMANCE 42 l Cognizant sustainability report 2012 • Protect Cognizant’s reputation and ensure that all associates understand the rules of the game. • Assist in making decisions to make sure our business is conducted with integrity and honesty as well as in accordance with legal requirements. • Instill trust and confidence in the minds of our associates, customers, shareholders, vendors and other stakeholders. The Code contains our policies and procedures on a broad range of issues, including: the acceptable use of Cognizant and client assets; accuracy of books, records and public reports; honest and fair competition; compliance with laws, rules and regulations; confidential information and intellectual property protection; conflicts of interest; insider trading; political activities; respectful treatment of associates, customers and business partners; and responsible use of social networking. Organizational Responsibility Responsibility for aspects relating to Society is shared across our General Counsel, Director of Compliance and Chief Security Officer. They ensure that management and associates comply with all internal policies and external laws and regulations. As for professional guidance, we retain both outside legal counsel and independent accountants to ensure that good governance practices and regulations are followed. Additionally, our Head of Procurement is responsible for monitoring the performance of suppliers with respect to both Human Rights and Society aspects. Training and Awareness All associates are required to complete annual ethics training and vice presidents and above must certify their compliance with the Code’s provisions annually. Monthly reports are provided to managers to identify those employees who have not completed the mandatory training. Monitoring and Follow-Up Our Director of Compliance monitors ongoing performance against aspects relating to Society and works with business unit and functional heads to address any weaknesses or performance deficiencies. Any material issues are then reported to the Board Audit Committee. We also have an independent internal audit capability that includes audit teams in the United States, India and Europe. They have direct access to the Board’s Audit Committee and their scope is set annually based upon risk assessments, e.g., finance, compliance and security. PRODUCT RESPONSIBILITY Goals and Performance Cognizant is a service-based business and provides IT services to leading companies across the globe. Because we may be working with sensitive and private client information, Cognizant has extensive processes to ensure customer privacy. Our goal is to have no material breaches of customer privacy. With respect to advertising and marketing communications, we strive to employ the highest standards in all advertising and marketing communications. Marketing is not targeted to individual consumers, but rather to business executives in the target industries we serve. We conduct an annual customer satisfaction survey to get feedback from our customers on the quality of our services and the way in which we conduct business. Given the nature of our service, the GRI Aspects of Customer Health and Safety, and Product and Service Labeling aspects are not material in our business. Policy Our Core Values and Standards of Business Conduct and Acceptable Use Policies (found at http://www.cognizant.com/ OurApproach/CodeofEthics.pdf) cover aspects relating to Customer Privacy. We have no written policies in place regarding Marketing Communications but strive to adhere to industry standard practices. Organizational Responsibility Our Chief Security Officer and Global Information Security team track and report on security measures with respect to customer privacy. Our VP of Marketing ensures the integrity of all advertising and marketing communications.
  • 45. POLICIES, PRACTICES & PERFORMANCE sustainability report 2012 Cognizant l 43 Training and Awareness We do extensive organization-wide training on customer privacy. This training is part of our mandatory training on our Standards of Business Conduct. There is no specific training relating to Marketing Communications. Monitoring and Follow-Up Our Global Information Security team monitors all potential breaches to customer privacy and reports them to our Chief Security Officer (CSO). Our CSO will then engage our business unit heads, General Counsel, Compliance Office and Human Resources teams to take corrective action. PART III: Performance Indicators ECONOMIC EC1 Direct Economic Value. Year Ended December 31, (in thousands, except per share data) 2012 2011  2010   Revenues $ 7,346,472 $ 6,121,156 $ 4,592,389 Operating expenses: Cost of revenues (exclusive of depreciation and amortization expense shown separately below) 4,278,241 3,538,622 2,654,569 Selling, general and administrative expenses 1,557,646 1,328,665 972,093 Depreciation and amortization expense 149,089 117,401 103,875 Income from operations 1,361,496 1,136,468 861,852 Total other income (expense), net 26,100 32,681 16,728 Income before provision for income taxes 1,387,596 1,169,149 878,580 Provision for income taxes 336,333 285,531 145,040 Net income $ 1,051,263 $ 883,618 $ 733,540 Basic earnings per share $ 3.49 $ 2.91 $ 2.44 Diluted earnings per share $ 3.44 $ 2.85 $ 2.37 EC2 Financial implications and other risks and opportunities for the organization's activities due to climate change. We recognize that climate change may pose operational risk to our facilities located in coastal cities around the world. It could also cause disruptions to our operations if severe weather caused by climate change impacts goods and services in our supplier chain. Unchecked growth in the consumption of resources could also lead to escalating electricity and transportation costs or uncertainty of supply, which could also impact our business. At the same time, concern over climate change has provided an opportunity to reassess our energy dependence and energy productivity. We have identified opportunities to conserve energy through disciplined energy management practices, improved facilities design and reengineered business processes. The result is not only enhanced energy efficiency and productivity, but also the potential for significant cost savings. EC3 Coverage of the organization's defined benefit plan obligations. Refer to Form 10-K: Page F-18, F-19 EC4 Significant financial assistance received from government. Refer to Form 10-K: Page F-19, F-20
  • 46. POLICIES, PRACTICES & PERFORMANCE 44 l Cognizant sustainability report 2012 EC7 Local Hiring. 71% of our senior managers are local hires, meaning they live locally and are citizens or legally authorized to work within the country in which they are hired. While we do not have explicit procedures for local hiring, factors considered include skill availability in the marketplace, migration regulations, geography, and local customs. Proportion of Senior Managers and Above Hired from the Local Community (As of December 31, 2012) Region Local Hires Transfers Total Local % APAC 85 106 191 45% Europe 324 120 444 73% India 614 62 676 91% Americas 758 438 1196 63% Total 1781 726 2507 71% EC8 Investments for public benefit. Our 2012 global Charitable Contributions were US$4.5 million, most of which went to education-oriented non-profits serving children across the globe. An additional US$1.5 million was provided to charitable organizations through pro-bono services or donor-advised grants from our charitable foundation. Extensive details on these investments are covered under “Educational Opportunity” in the Program Highlights section of this report. EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts. Several of our social programs, including our Making the Future, Outreach, and Cognizant Foundation programs, are covered under "Educational Opportunity" in the Program Highlights section of this report. ENVIRONMENT Energy 2012 2011 2010 EN3 Direct energy consumption by primary energy source. (in MWh) 100% from use of non–renewable diesel fuel 47,750 27,144 26,961 EN4 Indirect energy consumption by primary source. (in MWh) 100% from purchase of non–renewable electricity 182,392 191,682 193,161 EN5 Energy saved due to conservation and efficiency improvements. (in MWh) 34,120 13,781 9,386 Our Energy Management program aims to conserve power by maintaining equipment properly, powering down desktops when not in use, providing air conditioning to the workspace based on occupancy levels, etc. This program helped us stay energy efficient while also ensuring we do not compromise on associate comfort levels. Water 2012 2011 2010 EN8 Total water withdrawal by source. (in Kilo Liters) 1,590,853 945,952 809,851 EN9 Water sources significantly affected by withdrawal of water. 0 0 0 EN10 Percentage and total volume of water recycled and reused. 34% 22% N/A
  • 47. POLICIES, PRACTICES & PERFORMANCE sustainability report 2012 Cognizant l 45 As a service business, we do not use water in our supply chain. Accordingly, while we do not see significant opportunity for reducing water use, we do compile and study water usage data and look for opportunities to conserve water. We have measured consumption of water procured from external sources for the majority of our India operations. We chiefly use water for air conditioning, personal hygiene, cleaning, landscaping, drinking and cafeteria operations. Based on a total consumption of about 1,590,853 kiloliters of utility water, the average associate uses about 554 liters per month at the office. Our operations did not affect any local water body significantly. Emissions, Effluents, and Waste 2012 2011 2010 EN16 Total direct and indirect greenhouse gas emissions by weight. 184,394 MT 172,458 MT 150,834 MT EN17 Other relevant indirect greenhouse gas emissions by weight. 70,930 MT 64,487 MT 46,270 MT EN19 Emissions of ozone-depleting substances by weight. 7.31 MT 7.09 MT 6.82 MT EN20 NO and other significant air emissions by type and weight. 0.35 MT 0.21 MT 0.20 MT EN22 Total weight of waste by type and disposal method. Description Generated Disposed Paper waste 231,684 Kg 227,346 Kg Food waste 635,452 Kg 593,431 Kg Plastic waste 19,578 Kg 19,409 Kg Metal waste 6,957 Kg 4,486 Kg EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention. Description Generated Disposed Used oil 32,962 Liters 27,247 Liters Waste oil 19,680 Liters 2,970 Liters Oil filters 2,213 Kg 1,472 Kg Oil soaked cotton waste 696 Kg 509 Kg E waste 75,751 Kg 78,015 Kg Batteries 35,950 Kg 27,363 Kg
  • 48. POLICIES, PRACTICES & PERFORMANCE 46 l Cognizant sustainability report 2012 EN29 Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce. As a global company, travel is a major part of our environmental footprint. We have placed a significant corporate emphasis on video conferencing and telepresence facilities, using this technology to reduce travel to meetings and other business-related sessions. To date, with environmental impact in mind, we have deployed over 1,000 telepresence and high-definition video units, reduced our air travel and, in the process, improved our associates’ work-life balance and our collaboration with customers. Along with reducing our environmental impact by optimizing our transport commute, we also established bicycle bays for our associates across our facilities at Bangalore, Pune, Chennai-MEPZ and Pallikaranai to make it easier for associates to cycle to work. LABOR LA1 Total workforce by region. Employees by region (Dec. 31, 2012) Region Headcount (FTE) APAC 4,512 Europe 5,250 India 119,648 Americas 27,312 Total 156,722 LA2 Total number of new employee hires and employee turnover region. Attrition for the year 2012 was 11%—at least 2% lower than that for the corresponding period in 2011. (Cognizant calculates attrition as the percentage of workforce exited / Average workforce size for the period. This includes our BPO business as well. Many of our competitors report attrition on a LTM—Last Twelve Months—basis). LA3 Benefits provided. Cognizant offers an attractive employment package that includes a highly competitive salary and benefits package tailored to each geography, as well as additional financial incentives and performance rewards. We also reward personal achievement and contribution, financially and through public recognition. Our operations in other countries have compensation and benefit programs that are at or above local statutory requirements and are specifically designed to attract, retain and reward our employees. LA4 Percentage of employees covered by collective bargaining agreements. In the IT industry in general, and across our Company, collective bargaining is not a common practice, with the exception of Belgium, Sweden and France, where we have collective agreements in place. We recognize employees’ freedom of association, in line with the Universal Declaration of Human Rights issued by the United Nations in 1948. As of December 31, 2012, 307 of our employees (0.1%) were covered by Collective Bargaining Agreements. LA5 Minimum notice period(s). In all geographies, Cognizant complies with local norms, employment laws and best practices, including but not limited to regulations that relate to minimum notice periods in relation to operational changes.
  • 49. POLICIES, PRACTICES & PERFORMANCE sustainability report 2012 Cognizant l 47 LA6 Formal joint management-worker health and safety committees. We began pursuing OHSAS 18001 certification of our facilities in 2010 and have achieved certification of ten of our largest facilities in India. We have health and safety committees in all our large facilities that focus on areas such as ergonomics, transportation and the cafeteria. The committees meet every month to discuss opportunities for improvement and how to make changes to ensure a healthier and safer workplace. Because we are a knowledge-based industry and do not have a physical manufacturing process, injury rates in our business are extremely low and generally fall into the category of repetitive strain from computer or keyboard use and long sitting hours. LA7 Injury Rates. We track injuries in accordance with local requirements. We have begun implementing a global injury tracking system. Our Lost Time Injury rate for 2012 was 0.1. Accidents with injury cases 2012 Total number of injury cases 353 Total number of Lost Time cases 15 Total number of fatalities 0 LA8 Education, training, counseling, prevention, and risk-control programs. We inform and educate our workforce on safety at the workplace and offer online training on Occupational Health & Safety. We have a systematic risk assessment system to identify occupational diseases and implement control measures to mitigate these risks. We also offer counseling to our associates via anonymous helplines. Through our more than 50 development centers on five continents, we contribute to skilled labor markets and stimulate economies in developing nations, particularly India, by helping approximately 785 clients worldwide grow their businesses and run them efficiently and effectively. LA10 Training and Awareness. Our global Talent Management teams provide extensive training and awareness across all aspects of our business, including topics such as basic human resource management, conducting effective performance appraisals, managing career development, and opportunities for training. Over 17 million hours of training were provided in 2012, with the average employee receiving 112 hours of training. Average training hours per employee (Y 2012) Grade/Level Total Training Hours Average Headcount Y2012 Average Training hours per employee Y2012 Senior Management 191,297 11,016 17 Middle Management 1,329,533 37,653 35 Associates 15,892,459 124,642 128 Overall 17,413,289 155,592 112 LA12 Percentage of Employees receiving regular performance and career development reviews. Our global Talent Management team gathers information and monitors our internal performance at various intervals throughout the year. Virtually all of our employees are covered under this performance management process. Performance is directly linked to all forms of reward and recognition, both monetary and otherwise.
  • 50. POLICIES, PRACTICES & PERFORMANCE 48 l Cognizant sustainability report 2012 LA13 Diversity. Women represented 32% of the Company’s employees overall, and 16% of management, as of December 31, 2012. Women represented 44% of our global campus hiring last year. % of Women by level (Dec. 31, 2012) Level Overall Management 16% Associates 39% Overall 32% LA14 Ratio of basic salary of men to women. Ratio of basic salary of men to women (Dec. 31, 2012) Level APAC Europe India The Americas Overall Senior Management 1.09 1.04 1.07 0.99 1.04 Middle Management 1.06 1.04 1.05 1.01 1.03 Associates 1.42 1.07 1.03 1.04 1.04 Overall 1.26 1.05 1.04 1.02 1.04 HUMAN RIGHTS HR3 Training on Human Rights. All associates are required to complete annual ethics training and vice presidents and above must certify their compliance with the Code’s provisions annually. Our employees spent an aggregate of over 332,000 hours on ethics training in 2012, compared to 97,000 hours in 2011. We placed substantial effort into delivering live ethics and compliance training to supplement electronic courses and address the needs of associates sitting in high security locations behind client firewalls. HR6 Child labor. Cognizant recognizes the critical importance of fundamental human rights, such as the prohibition of child labor. Cognizant does not use child labor in any of our operations. As a technology services company, such issues are not a significant risk factor in our business operations. HR7 Forced or Compulsory Labor. Cognizant recognizes the critical importance of fundamental human rights, such as the prohibition of forced labor. Cognizant does not use forced labor or bonded labor in any of our operations. As a technology services company, such issues are not a significant risk factor in our business operations. SOCIETY SO3 Training on Anti-Corruption. In 2012, we introduced an improved system for tracking the amount of ethics training our employees received. The percentage of employees taking ethics training increased to 87% in 2012 from 82% in 2011. Our formal learning was supplemented in 2012 by education campaigns featuring games, quizzes and prizes such as the China Compliance campaign created in the local language. At the beginning of 2013, we launched a poster campaign in eight local languages in our Indian facilities along with live workshops to provide ethics training for non-English speaking contractors.
  • 51. POLICIES, PRACTICES & PERFORMANCE sustainability report 2012 Cognizant l 49 Additionally, our Enterprise Risk Management group conducts annual risk analysis surveys covering all business units and corporate functions to assess the likelihood of various risks including corruption. SO4 Actions taken in response to incidents of corruption. No incidents reported in 2012. SO5 Public policy positions and participation in public policy development and lobbying. In terms of public policy, a wide range of policies are in place or are being considered by governmental bodies in capitals from Washington to Brussels to Delhi that can and do have a material impact on our business. We consider policy advocacy on issues of importance to our business, customers, employees, shareholders and industry an essential component of our strategic planning. We work to ensure that our public policy positions complement or advance our global sustainability and citizenship objectives. Fundamentally, Cognizant’s public policy objectives are focused on issues that we consider essential to advancing innovation, competitiveness, job creation, economic growth and sustainable standards of living. Our policy agenda is centered on workforce development, education, tax, market access, and information privacy and security. Workforce Development. Cognizant’s success depends significantly on recruiting, hiring and retaining highly skilled professionals. Cognizant and its customers face near and long-term skills gaps in developed countries, which necessitate workforce development and migration policies to gain access to the skilled talent Cognizant needs to compete and innovate. Education. Building on our Public Outreach, Cognizant participates in broad-based industry associations and coalitions to support policy initiatives geared to increase curriculum quality and student participation in the science, technology, engineering and math disciplines. Tax. Tax laws have a substantial impact on capital investment and economic development. We advocate for tax policies that facilitate innovation, improve competitiveness, and fuel investment and job creation. Market Access. Trade agreements that reduce barriers and improve access to new markets are vital for improved commerce and collaboration for Cognizant, our partners and our customers. We advocate for bilateral, regional and worldwide trade agreements that facilitate trade in services, enable temporary migration of skilled professionals, increase protections on intellectual property, and allow for greater regulatory transparency. Information Privacy/Security. Today’s technology infrastructure facilitates global commerce and communication, drives the creation of new consumer products and services, and provides a foundation for governments to better serve its citizens. To protect this infrastructure, which is mostly owned and managed by the private sector, governments work with private entities to protect their citizens from cyber-attacks and data breaches. We support policies that improve cyber-security through effective information management and technological innovation. SO7 Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes. We have had no legal actions for anticompetitive behavior, anti-trust, or monopoly practices. PRODUCT RESPONSIBILITY PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction. We put our commitment to client satisfaction to the test by soliciting regular client feedback. Since customer satisfaction is one measure of an organization’s sensitivity to its customers’ needs, from an organizational perspective, it is essential for long-term success. Every year, we conduct a customer-satisfaction study, employing both quantitative and qualitative methodologies. Customers within client organizations are nominated for inclusion in the study and vetted by the client organizations. A minimum of 45% of the nominees participate in the quantitative portion.
  • 52. POLICIES, PRACTICES & PERFORMANCE 50 l Cognizant sustainability report 2012 In our most recent annual customer-satisfaction survey, and for the fourth year in a row, more than 85% of our clients expressed a high degree of satisfaction, which is considered extraordinary in our industry. Also, for the last five years, over 65% of our customers indicated that their overall experience with our services was better or much better compared to similar service providers. Each of our business units develops an action plan to address any issues that may arise with its scores on customer-satisfaction surveys. PR9 Monetary value of significant fines for noncompliance with laws and regulations concerning the provision and use of products and services Any material litigation and claims are described in Page 40 of our Annual Report.
  • 53. GRI CONTENT INDEX sustainability report 2012 Cognizant l 51 GRI content index STANDARD DISCLOSURES Part I: Profile Disclosures 1. Strategy & Analysis Profile Disclosures Reported in 1.1 Statement from the most senior decision maker of the organization. SR Page 2 1.2 Description of key impacts, risks, and opportunities. SR Page 29 2. ORGANIZATIONAL PROFILE Profile Disclosures Reported in 2.1 Name of the organization. SR Page 30 2.2 Primary brands, products, and/or services. SR Page 30, AR Pages 4 & 5, Form 10-K Pages 6–12 2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures. SR Page 30 2.4 Location of organization's headquarters. SR Page 30 2.5 Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report. SR Page 30 2.6 Nature of ownership and legal form. SR Page 31 2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries). SR Page 31 2.8 Scale of the reporting organization. SR Page 31 2.9 Significant changes during the reporting period regarding size, structure, or ownership. SR Page 31 2.10 Awards received in the reporting period. SR Page 31
  • 54. GRI CONTENT INDEX 52 l Cognizant sustainability report 2012 3. REPORT PARAMETERS Profile Disclosures Reported in 3.1 Reporting period. SR Page 31 3.2 Date of most recent previous report (if any). SR Page 31 3.3 Reporting cycle. SR Page 31 3.4 Contact point for questions regarding the report or its contents. SR Page 31 3.5 Process for defining report content. SR Page 31 3.6 Boundary of the report. SR Page 32 3.7 State any specific limitations on the scope or boundary of the report. SR Page 32 3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations. SR Page 32 3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. SR Page 32 3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g., mergers/ acquisitions, change of base years/periods, nature of business, measurement methods). SR Page 32 3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report. SR Page 32 3.12 Table identifying the location of the Standard Disclosures in the report. SR Page 51–59 3.13 Policy and current practice with regard to seeking external assurance for the report. If not included in the assurance report accompanying the sustainability report, explain the scope and basis of any external assurance provided. Also explain the relationship between the reporting organization and the assurance provider(s). SR Page 32 4. GOVERNANCE, COMMITMENTS, AND ENGAGEMENT Profile Disclosures Reported in 4.1 Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight. SR Page 32 4.2 Indicate whether the Chair of the highest governance body is also an executive officer. SR Page 33 4.3 For organizations that have a unitary board structure, state the number and gender of members of the highest governance body that are independent and/or non-executive members. SR Page 33 4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body. SR Page 33 4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization’s performance (including social and environmental performance). SR Page 33, Form DEF 14A Page 42–69
  • 55. GRI CONTENT INDEX sustainability report 2012 Cognizant l 53 4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided. SR Page 33 4.7 Process for determining the composition, qualifications, and expertise of the members of the highest governance body and its committees, including any consideration of gender and other indicators of diversity. SR Page 33, 10-K Page 29 4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation. SR Page 34 4.9 Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles. SR Page 35 4.10 Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance. SR Page 35, Form DEF 14A Page 42–69 4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization. SR Page 35 4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses. SR Page 35 4.13 Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization: • Has positions in governance bodies; • Participates in projects or committees; • Provides substantive funding beyond routine membership dues; or • Views membership as strategic. This refers primarily to memberships maintained at the organizational level. SR Page 35 4.14 List of stakeholder groups engaged by the organization. SR Page 36 4.15 Basis for identification and selection of stakeholders with whom to engage. SR Page 36 4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group. SR Page 36 4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. SR Page 37
  • 56. GRI CONTENT INDEX 54 l Cognizant sustainability report 2012 STANDARD DISCLOSURES PART II: Disclosures on Management Approach (DMA) DMA EC Disclosure on Management Approach EC Reported in Aspects Economic performance SR Page 37, AR Page 3 Market presence SR Page 30, AR Page 5 Indirect economic impacts SR Page 37, AR Page 3 DMA EN Disclosure on Management Approach EN Aspects Materials SR Page 38 (partially) Energy SR Page 38 Water SR Page 38 (partially) Biodiversity SR Page 38 Emissions, effluents and waste SR Page 38 Products and services SR Page 38 Compliance SR Page 38 Transport SR Page 38 (partially) Overall SR Page 38 (partially) DMA LA Disclosure on Management Approach LA Aspects Employment SR Page 39 Labor/management relations SR Page 39 Occupational health and safety SR Page 39 Training and education SR Page 39 Diversity and equal opportunity SR Page 39 Equal remuneration for women and men SR Page 39 (partially) DMA HR Disclosure on Management Approach HR Aspects Investment and procurement practices SR Page 40 Non-discrimination SR Page 40 Freedom of association and collective bargaining SR Page 40 (partially) Child labor SR Page 40 Prevention of forced and compulsory labor SR Page 40 Security practices SR Page 40, 41 Indigenous rights SR Page 41 (partially) Assessment SR Page 41 Remediation SR Page 41 (partially)
  • 57. GRI CONTENT INDEX sustainability report 2012 Cognizant l 55 DMA SO Disclosure on Management Approach SO Reported in Aspects Local communities SR Page 41 Corruption SR Page 42 Public policy SR Page 42 Anti-competitive behavior SR Page 42 Compliance SR Page 42 DMA PR Disclosure on Management Approach PR Aspects Customer health and safety SR Page 42 Product and service labeling SR Page 42 Marketing communications SR Page 42 Customer privacy SR Page 43 Compliance SR Page 43
  • 58. GRI CONTENT INDEX 56 l Cognizant sustainability report 2012 STANDARD DISCLOSURES PART III: Performance Indicators Economic Economic Performance Reported in EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments. SR Page 43 EC2 Financial implications and other risks and opportunities for the organization’s activities due to climate change. SR Page 43 EC3 Coverage of the organization’s defined benefit plan obligations. SR Page 43, Form 10K Page F-18 EC4 Significant financial assistance received from government. SR Page 43, Form 10K Page F-19, F-20 (partially) Market Presence EC7 Procedures for local hiring and proportion of senior management hired from the local community at locations of significant operation. SR Page 44 Indirect Economic Impacts EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in kind, or pro bono engagement. SR Page 44 EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts. SR Page 21, 43
  • 59. GRI CONTENT INDEX sustainability report 2012 Cognizant l 57 Environmental Energy Reported in EN3 Direct energy consumption by primary energy source. SR Page 44 EN4 Indirect energy consumption by primary source. SR Page 44 EN5 Energy saved due to conservation and efficiency improvements. SR Page 44 EN7 Initiatives to reduce indirect energy consumption and reductions achieved. SR Page 44 Water EN8 Total water withdrawal by source. SR Page 44 EN9 Water sources significantly affected by withdrawal of water. SR Page 44 EN10 Percentage and total volume of water recycled and reused. SR Page 44 Emissions, Effluents, and Waste EN16 Total direct and indirect greenhouse gas emissions by weight. SR Page 45 EN17 Other relevant indirect greenhouse gas emissions by weight. SR Page 45 EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. SR Page 45 EN19 Emissions of ozone-depleting substances by weight. SR Page 45 EN20 NO, SO, and other significant air emissions by type and weight. SR Page 45 EN22 Total weight of waste by type and disposal method. SR Page 45 EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.   SR Page 45  Transport EN29 Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce. SR Page 46 (partially)
  • 60. GRI CONTENT INDEX 58 l Cognizant sustainability report 2012 Labor Employment  Reported in LA1 Total workforce by employment type, employment contract, and region. SR Page 46 (partially) LA2 Total number and rate of employee turnover by age group, gender, and region. SR Page 46 LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations. SR Page 46 Labor/Management Relations  LA4 Percentage of employees covered by collective bargaining agreements. SR Page 46 LA5 Minimum notice period(s) regarding operational changes, including whether it is specified in collective agreements. SR Page 46 Occupational Health and Safety  LA6 Percentage of total workforce represented in formal joint management–worker health and safety committees that help monitor and advise on occupational health and safety programs. SR Page 47 LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work related fatalities by region. SR Page 47 LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases. SR Page 47 Training and Education  LA10 Average hours of training per year per employee by employee category. SR Page 47 (partially) LA12 Percentage of employees receiving regular performance and career development reviews. SR Page 47 Diversity and Equal Opportunity LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity. Equal Remuneration for Women & Men SR Page 48 (partially) Equal Remuneration for Women & Men LA14 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation. SR Page 48 (partially)
  • 61. GRI CONTENT INDEX sustainability report 2012 Cognizant l 59 Human Rights Investment and Procurement Practices Reported in HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained. SR Page 48 Child Labor HR6 Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination of child labor. SR Page 48 Forced and Compulsory Labor HR7 Operations identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of forced or compulsory labor. SR Page 48 Society Corruption Reported in SO3 Percentage of employees trained in organization’s anti-corruption policies and procedures. SR Page 48, 49 SO4 Actions taken in response to incidents of corruption. SR Page 49 Public Policy SO5 Public policy positions and participation in public policy development and lobbying. SR Page 49 Anti-Competitive Behavior  SO7 Total number of legal actions for anticompetitive behavior, anti-trust, and monopoly practices and their outcomes. SR Page 49 Product Responsibility Product and Service Labeling Reported in PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction. SR Page 50 Compliance PR9 Monetary value of significant fines for noncompliance with laws and regulations concerning the provision and use of products and services. SR Page 50 All indicators are reported Fully unless marked otherwise in the Reported in column of the GRI Content Index tables.
  • 62. GRI CONTENT INDEX sustainability report 2012 Cognizant l 61 For the printing for the 2012 Cognizant Sustainability Report we saved the following resources by using Neenah Environment® 100% PCW recycled fiber paper.1 1 Calculations to demonstrate the environmental benefits of using recycled fiber in lieu of virgin fiber are provided by Neenah Papers. FSC® is not responsible for any calculations on saving resources by choosing this paper. 2 Includes additional savings derived from manufacturing with windpower TREES 61 fully grown SOLID WASTE 1,683 pounds WATER 27,722 gallons GREENHOUSE GASES2 5,756 pounds net ENERGY 19 millions BTU
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