Cognizant Sustainability Online

SUSTAINABILITY REPORT 2011
Working to RETHINK, REINVENT & REWIRE our impact on society and the planet
CONTENTS
Introduction Letter from CEO Letter from VP of Sustainability Organizational Profile Sustainability at Cognizant Commitment to Customers
01 02 04 06 10 16
Educating for the Future Stewards of the Environment Responsibility at Work Governance and Ethics Appendices Appendix A: About this Report Appendix B: Disclosures on Management Approach Appendix C: GRI Indicators
20 32 40 50
58 60 64
COGNIZANT SUSTAINABILITY REPORT 2011
WORKING TO RETHINK, REINVENT & REWIRE

OUR IMPACT ON SOCIETY AND THE PLANET Progressive companies continually reimagine their business models for a changing world. As a global IT services and consulting firm, Cognizant makes it possible for clients to do thatby bringing our extensive resources and our understanding of technology, business processes and industries to help them drive innovation, growth and effectiveness.
Its the same with our approach to sustainability. We believe it is our responsibility to apply our collective knowledge, talent and energy to the challenges faced by ourselves and all of our stakeholdersin society, the environment, the workplace and corporate governance. Today, Cognizant is working to rethink our role in improving education in our communities, to rewire our operations to lessen our environmental impact, and to reinvent our workplace to meet the needs of clients and associates now and in the future. In this, our second annual Sustainability Report, we employ the sustainability reporting framework of the Global Reporting Initiative (GRI) to describe our goals and our performance in these and other critical areas. We hope you carefully read our 2011 report, and let us know what you think by emailing us at sustainability@cognizant.com At Cognizant, we continually envision new solutions to sustainability challenges and work to make that vision a reality for our clients, associates, shareholders, partners and the communities in which we live and work.
RETHINK
REINVENT REWIRE
SUSTAINABILITY REPORT 2011 Cognizant Technology Solutions
LETTER FROM CEO FRANCISCO DSOUZA

At Cognizant, our commitmentindeed our passionis to help our clients respond to and meet the challenges and opportunities of a business environment that is undergoing dramatic change. We innovate for many of the worlds leading companies as they adapt to a future of work that is being transformed by globalization, virtualization, the millennial demographic shift, and disruptive new technologies. Yet we cannot prepare any business (our clients or our own) for the future of work without considering the future of our society and our planet. This realization inspires us to be responsible global citizens and play a positive role in our communities. The main thrust of our sustainability efforts includes: maintaining high standards of business conduct; improving education in our communities; reducing environmental impact; providing a safe workplace while promoting professional development; and delivering on commitments to clients, investors, associates and other stakeholders.
Cognizant Technology Solutions SUSTAINABILITY REPORT 2011
IN THE PAST YEAR, WE MADE PROGRESS ON A NUMBER OF FRONTS: We expanded our efforts to rethink our role in education. In the U.S., we launched our Making the Future program to stimulate hands-on learning and interest in mission-critical science, technology, engineering and math (STEM) disciplines. Globally, we harnessed the power of more than 18,000 of our associates, who volunteered over 100,000 hours through our Outreach program to teach, mentor, improve school facilities, and provide learning materials. We continued to reinvent our workplace to attract, retain and nurture the talented people we need to serve our clients and society, and to grow our value. We offer not only a safe and healthy workplace, but also extensive professional development opportunities through Cognizant Academy and other programs. The success of these efforts is reflected in our record high employee satisfaction scores and declining attrition levels. We worked to rewire our operations to become more environmentally sensitive, advancing aggressively on our targets to reduce carbon emissions, water, paper, and waste. Our efforts are embodied in our Go Green program, including extensive grassroots activities by associates, which helped Cognizant rise to #16 in Newsweeks U.S. Green rankings, as well as #51 in Newsweeks Global Green rankings. While sustainability has been an integral part of our business for many years, in 2011 we adopted a formal policy on sustainability and corporate responsibility, as well as a supplier code of conduct, to ensure that our priorities and commitments are clear, concrete, and unmistakable. We also embrace relevant GRI guidelines and performance indicators and our results are disclosed in this annual sustainability report. There is much more we can do to advance sustainability. You can be assured that we will continue to approach these efforts with determination, innovation, and passion. Sincerely,
Francisco DSouza Chief Executive Officer
LETTER FROM VICE PRESIDENT OF SUSTAINABILITY MARK GREENLAW

As you will see in this report, we made tremendous progress during 2011 in our journey to be a more sustainable and responsible company. Im very proud of our progress, particularly since this is only my second year leading Cognizants Sustainability Office after previously serving as our Chief Information Officer. We believe sustainability should be woven into our business and cannot be an independent, ancillary function. To that end, our mission is to raise awareness on sustainable practices across all of our business units and corporate functions, then help them set goals, monitor progress, and report performance. With more than 137,000 associates, and operations across 14 countries, its a big ship, so to speak, and progress towards sustainable development occurs at different rates in different parts of the organization. Thats why we continually evaluate our performance, critically assess where we can do better, and constantly raise the bar to meet or exceed industry benchmarks for sustainable and responsible business practices. On our journey, we continue to learn every day from our NGO partners, peer companies, employees, customers, investors, and other stakeholders.
A credible sustainability report should not only disclose all the positive things a company accomplishes, but should also candidly discuss some of the challenges we face in evolving our business practices. With that in mind, Id like to share some commentary on our performance in 2011 and how it has shaped our goals for 2012. We made good progress in working to drive sustainability through our supply chain. Youll read that we adopted an over-arching sustainability policy which includes our supply chain, introduced a supplier code of conduct, and began surveying our suppliers. However, we did not get as far as we had hoped in gathering performance data from our suppliers, so this will continue to be a major focus in 2012. We did not achieve our target of implementing a global injury tracking framework in 2011. We have relatively few injuries at Cognizant, due to the nature of the work in a knowledge-based industry, and we compile country specific data that meets local laws and regulations. Nonetheless, we dont yet have a global injury reporting platform. This goal will continue to be a priority in 2012. Additionally, in 2012 we will continue to build on the progress we made in 2011 to rethink our role in education, rewire our operations to preserve the environment, and reinvent our workplace to be as diverse, collaborative, and professionally rewarding as possible. Our goals for the coming year include: Achieving 200,000 volunteer hours by employees. Launching 10 pilot Making the Future Afterschool and Summer Programs in the U.S. Continuing to make progress toward our 2015 carbon emissions reduction targets. Launching a world-class Diversity Program leveraging the success of our Women Empowered (WE) initiative. We remain committed to investing our financial and human capital in things that matter to society, to ensuring that future generations have opportunities for professional and personal growth, and to making a positive impact on our world. I hope you find our 2012 Sustainability Report on these efforts informative and enjoyable to read. Sincerely,
Mark Greenlaw Vice President, Sustainability & Educational Affairs
ORGANIZATIONAL PROFILE
Cognizant is a leading provider of custom information technology, strategic consulting services, and business process outsourcing. Headquartered in Teaneck, New Jersey (U.S.), the Company is publicly traded on The NASDAQ Stock Market (CTSH). Cognizant joined the Fortune 500 for the first time in 2011 (at No. 484), and also is ranked among Fortunes Worlds Most Admired Companies (No. 3 in the IT industry).
6 06
Cognizant Technology Solutions CORPORATE SUSTAINABILITY REPORT 2011
We serve clients in the United States, Europe and, increasingly in other international markets such as Asia-Pacific and South America. 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. 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. Currently, our delivery centers are located primarily in India, China, the United States, Canada, Argentina, Hungary and the Philippines. All of our operations across the globe are linked via our Cognizant 2.0 knowledge-sharing and project-management platform. 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. COGNIZANTS 7 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 customers 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 teams success in delivering exceptional customer experiences.
OUR ECONOMIC PERFORMANCE

As a U.S. publicly traded company, Cognizant is committed to providing maximum returns to its shareholders, while providing financial success for our employees, suppliers, and the communities in which we operate. (For our GRI Disclosure on our Economic Management Approach, please refer to Appendix B.)
Below is a summary of our Consolidated Statements of Operations, taken from our 2011 Annual Report.
Year Ended December 31 In thousands, except per share data Revenues Operating expenses: Cost of revenues (exclusive of depreciation and amortization expense shown separately below) Selling, general and administrative expenses Depreciation and amortization expense Income from operations Total other income (expense), net Income before provision for income taxes Provision for income taxes Net income Basic earnings per share Diluted earnings per share 3,538,622 2,654,569 2011 $ 6,121,156 2010 $ 4,592,389
1,328,665 117,401 1,136,468 32,681 1,169,149 285,531 $ 883,618 $ 2.91 $ 2.85
972,093 103,875 861,852 16,728 878,580 145,040 $ 733,540 $ 2.44 $ 2.37
Cognizant donated over $8 million in 2011 to education, infrastructure and other such investments across the globe. 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.
Region Asia-Pacific Europe India Americas Total
Local Hires % 66% 71% 97% 71% 83%
Region APAC Europe India Americas Total Total workforce by region (Dec.31, 2011)
Employees 2,350 4,300 109,250 21,800 137,700
Proportion of Senior Managers and Above Hired from the Local Community (As of December 31, 2011)
On the hiring front, 83% 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.
AWARDS AND RECOGNITION

While awards cannot truly measure a companys contribution either to the corporate world or broader society, they can serve to reflect its commitment to responsibility and trust. We are especially 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 #16 among the 500 largest publicly traded companies in the U.S., up from #138 in 2010 and #449 in 2009. We also stand as #51 in Newsweeks Global Green rankings. Within the IT industry, Cognizant had the #1 environmental impact score in 2011, up from #25 in 2010 and #49 in 2009.
Global Rankings
COGNIZANT IS #16
IN NEWSWEEKS U.S. GREEN RANKINGS
and has the
1 IMPACT SCORE
in the IT INDUSTRY. FIRST PLACE in EquaTerras FORTUNE 500 LIST
ENVIRONMENTAL
Fortunes All-Star List of
GROWING COMPANIES BARRONS 500, ranking the

S&P 500 based on sales growth and cash flow return on investment
100 FASTEST
Performance and Client Satisfaction Rankings in Europe
moved up from Fortune 1000 in 2011
Fortunes
WORLDS MOST ADMIRED COMPANIES
FT GLOBAL 500,
compiled by the Financial Times,
list for the third year in a row
RANKING WORLDS LARGEST COMPANIES

based on market capitalization
SUSTAINABILITY AT COGNIZANT
STRATEGY AND ANALYSIS Cognizants strategy is to be a partner with our clientsapplying the talent of our people, global delivery network, deep industry expertise, and proficiency in technology and consulting to help make their businesses stronger. Helping our clients succeed and prosper has produced strong growth for our company, as well. Since our founding in 1994, we have grown from a start-up with 175 employees, to over 137,000 associates worldwide and annual revenues of more than $6.1 billion in 2011.
10
THE RELEVANCE OF SUSTAINABILITY We believe our competitive edge in serving our clients needs derives from our commitment to helping them identify, anticipate and embrace changes in technology and business processes that will impact the ways in which they engage with their customers, markets, employees, supply chain and other constituencies. Simply stated, our job is to help clients seeand prepare for the Future of Work. It is in this context that we approach sustainability. There can be no meaningful plans for the future without taking into account the ways in which society and business are affected by sustainability. Along with all global enterprises, we must ask ourselves the big questions: How could we and our clients be affected by scarcity or price volatility of natural resources? What impact would a shortage of qualified employees have on our growth? Could our reputation, and thus our relationships with clients, be damaged by lapses in corporate governance? How will our working and living conditions be affected by climate change?
There can be no meaningful plans for the future without taking into account the ways in which society and business are affected by sustainability.
SUSTAINABILITY POLICY AND COMMITMENTS The answers to these and similar questions impact all of usand our families, communities, colleagues, clients and our business overall. For this reason, in 2011 Cognizant adopted a Policy on Sustainability and Corporate Responsibility that sets forth our priorities and commitments in this area. Our Sustainability Policy can be found on our website at http://www.cognizant.com/OurApproach/Sustainability%20Policy.pdf
11
COGNIZANT POLICY ON SUSTAINABILITY AND CORPORATE RESPONSIBILITY

At Cognizant Technology Solutions Corporation, sustainability is vital to our success. Our internal performance and client satisfaction depend on how we: Provide whats best for people and the environment. Conduct our business affairs, employing the highest standards of personal and corporate conduct. Serve and satisfy our customers; thus shaping our ability to sustain our own future. It also concerns how we support our employees, our business partners, the communities where we work and the next generation of professionals. We recognize that acting in a responsible and sustainable manner creates new opportunities, increases shareholder value, and enhances our brand and reputation with multiple stakeholders groups while protecting the environment and natural resources. This policy outlines Cognizants overall commitment to corporate responsibility and sustainability, and guides our activities across all global operations. It is an integral part of our core business strategy and is supported by a range of global and regional policies: Core Values and Standards of Business Conduct, Environmental Policy, Occupational Health and Safety Policy, Anticorruption Policy, Supplier Code of Conduct, and many other internal policies, procedures, and programs. These 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). Cognizant is committed to: Maintaining high standards of honest, ethical and legal business behaviors 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. 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. Providing safe working conditions for all employees and complying with all local laws with respect to wages, hours and benefits. Complying with all applicable environmental laws, regulations and standards and tracking and reducing negative environmental impact. Enhancing the communities in which we live and work through outreach programs to improve the quality and accessibility of education for children across the globe. Engaging with our suppliers to ensure they follow our supplier code of conduct and are striving to improve the sustainability of their businesses. Utilizing the Global Reporting Initiatives guidelines to establish performance targets for material sustainability performance indicators, tracking our performance against these indicators, and disclosing our performance publicly in an annual Sustainability Report. In addition, Cognizant seeks to anticipate future sustainability risks and opportunities, new regulations, and market trends to ensure the responsible development of our business into the future. Accountability The responsibility for operating in a sustainable and responsible manner must be embedded into all of Cognizants business units and corporate functions. To ensure this is the case, Cognizants 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 this policy. Cognizants President is responsible for reviewing the committees performance against this policy on an annual basis and reporting the results of this review with our Board of Directors or a Committee of the Board of Directors. This policy will be reviewed annually and updated as required to maintain Cognizants position as a leader in sustainability and corporate responsibility.
12
STRATEGIC PRIORITIES. We believe it is essential to our business, as well as to society as a whole, to promote and achieve sustainability in the following areas, which we have identified as our priorities: Commitment to customers We strive to deliver superior service and tangible business advantages to our clients in order to sustain the operational and financial performance of our business as the foundation of all our activities. Educating for the future Given our growth, we expect to continue to need increasing numbers of talented, technologically adept employees, leading to our strong support of education initiatives in science, technology, engineering and math (STEM) disciplines. Stewardship of the environment We believe that reducing our impact on the environment is not only a responsible endeavor, but is essential to ensure a long-term and cost-effective supply of the resources needed to support our business. Responsibility at work Supporting the professional development of our employees, ensuring the diversity of our workforce, and providing appealing working conditions are all essential to our productivity, excellence and competiveness. Sound corporate governance Operating in an ethical and transparent manner that goes beyond mere letter of the law compliance is essential to maintaining our corporate reputation and thus our credibility with customers, employees, shareholders, business partners and others. Our activities in each of the above areas are discussed in detail in this Report.
13
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.
OUR SUSTAINABILITY CONTEXT: 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 wellbeing of our more than 137,000 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 32% in 2011, as we have expanded to serve the increasingly complex needs of a growing number of clients. We rank #68 on HR Executive magazines 2011 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. One area in which we have a significant and positive economic impact is the compensation we pay our employees. 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 the lateral market. We believe this emphasis on talent, coupled with our unique global culture, rank among our key differentiators.
14
We believe our focus on the Future of Workwith its forces of globalization, virtualization, millennials and technologyputs us at the forefront of the new economy. It is changing the way 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. To the extent that our services enable clients to operate more productively, effectively and cost-efficiently, we may have an indirect positive impact on simulating growth and economic opportunity, while helping clients reduce their resource consumption. In addition, 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 business case 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 worlds biggest social and environmental challenges. Further, we strive to be an extremely well-managed company, with strong governance, ethics and a track record of providing rewarding careers to our associates. In addition to robust economic and social performance, we are working pragmatically to improve how we manage 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 footprintsall in an effort to operate in an environmentally friendly manner and drive sustainable economic growth.
15
COMMITMENT TO CUSTOMERS
Sustainability at Cognizant starts with our customer relationships, which lie at the root of our ability to build and grow a business that can contribute to the needs of society, employees, shareholders, and others. We do not sell a physical product, but instead provide high-value services to our clients, and are often embedded deeply within our client organizations, working together over a period of months or years.
16
We view each client relationship as a true partnership, as our unique global delivery model allows our teams to be tightly integrated into a clients organization. Together, we strive to achieve shared performance objectives that will generate tangible returns for our clients in terms of innovation, growth, increased efficiencies, and enhanced competitive advantage. (For our GRI Disclosure on our Product Responsibility Management Approach, please refer to Appendix B.)
PARTNERING WITH CLIENTS

Putting customers first is embedded in our culture. We place a very experienced employee onsite with a client team to ensure flawless alignment. This Client Partner is the teams leader and by working onsite, absorbs a clients culture, operational processes, challenges and business goals. The Client Partner, who often has an advanced degree and at least a decade of experience, pairs with a senior Cognizant Delivery Director as part of what we term our two-in-a-box client-engagement model. This approach lets us provide superior service to help each customer reduce IT operational costs, embrace best practices, and undergo sustainable business transformation. Many of our senior associates originate from the industries we serve, so we are able to offer deep experience across nearly all major industries. Our advanced technology also helps us serve clients better. Built on the latest Web 2.0 technologies, our Cognizant 2.0 global delivery platform lets our associates, business partners and clients worldwide work as one. This fosters sharing of experience and insights, and collaborating more in real time to achieve superior results. Our customers entrust us to solve some of their more pressing business and technology problems, and in so doing they grant us access to sensitive, confidential data and information. To ensure that we protect this information, Cognizant has appropriate operational and technological processes and procedures designed to safeguard against unauthorized access, loss, destruction, theft, use or disclosure of data. We take extraordinary care to ensure the security of our data and information. We house our servers in secure data centers and use a wide range of industry leading tools for scrambling test data provided by clients, as well as sanitizing and shredding files on old computers we redeploy. We also use an extensive set of filtering and data loss-prevention tools designed to ensure that sensitive information does not leave our network without authorization.
We partner with our clients to achieve shared performance objectives that will drive tangible results and business transformation.
17
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 organizations 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. 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 rise with its scores on customer-satisfaction surveys. In the context of sustainability, customer satisfaction provides insight into how the organization approaches its relationship with this key stakeholder group. It can also be used in combination with other sustainability measures. Customer satisfaction can provide insights into the degree to which an organization considers the needs of other stakeholders. Our clients tell us that we truly excel at partnering closely and that we go to extraordinary lengths to solve problems, or just help out. Our associates have a can-do attitude, finding flexibility beyond the contractual terms of our client relationships. A testament to this fact is our strong repeat business and customer retention: approximately 97% of our revenues for the year ended December 31, 2011 were derived from customers who had been using our services at the end of 2010.
18
LOOKING FORWARD
Cognizant has a very customer-focused culture that drives us to provide solutions to enhance our customers business success and thereby sustain very high levels of customer satisfaction and loyalty. Looking forward to 2012: We expect to selectively increase the number of Strategic Customers, which are defined as those with annual revenue potential of at least $5 million to $50 million or more. As of December 31st, 2011, we had 191 Strategic Customers. We will continue to monitor our customers satisfaction with our services and seek to maintain the high performance reported on the customer satisfaction survey.
19
EDUCATING FOR THE FUTURE

Cognizant is working to rethink our role in improving education in our communities. We are committed to helping clients address future challenges and opportunities, and thus many of our sustainability activities are focused on ensuring that our educational system can produce the talented and motivated IT professionals needed to meet the demands of the 21st century.
20
Our educational efforts are guided by the realization that the Future of Work is being transformed by a convergence of powerful forces, specifically globalization, virtualization, the emergence of millennials as a majority of the workforce and consumer market, and disruptive technologies, such as cloud computing, social networks, mobile devices and advanced analytics. These forces are profoundly reshaping markets, business models, the way work is conducted, and the manner in which businesses innovate, collaborate and create value. Adapting to the Future of Work will require that businesses and organizationsand those service firms like Cognizant who partner with themhave an ample supply of talented, well-educated knowledge workers. Yet, by most accounts, a significant talent shortage exists in many parts of the world.
We work to ensure that our educational system can produce the talented and motivated IT professionals needed to meet the demands of the 21st century.
21
MAKING THE FUTURE: STEM EDUCATION IN THE U.S.

In the U.S., it is estimated that the 30 fastest growing occupations in the next decade will require at least some background in science, technology, engineering or math (STEM). Yet, the country is falling behind in STEM education, relative to other countries. Consider these statistics: U.S. high school students ranked behind 17 other industrialized nations in math and behind 13 nations in science.1 Only 30% of U.S. high school graduates are ready for college-level work in science and 45% were ready in math.1 It is projected that the U.S. will have a shortage of 3 million workers with college degrees by 2018.2
1 2
U.S. Department of Education; National Center for Education Statistics, Dec. 2010. Change the Equation (CTEq), March 2012.
Therefore, improving the effectiveness of educational programs, increasing access to academic opportunity, and stimulating an interest in STEM studies in the countries in which we operate is a chief priority of Cognizants sustainability and corporate responsibility efforts. Our efforts to reinvigorate a passion for STEM learning in the U.S. are embodied in an initiative that we call Making the Future. We created this initiative to spark the interest of young people in STEM disciplines by creating fun, hands-on learning opportunities. Making the Future draws inspiration from the Maker Movement, a broad based community that celebrates the art of designing and building really cool things, either doing it yourself (DIY) or with others (DIWO). In addition to inspiring young people toward careers in science, technology, engineering and math, we seek to develop 21st century skills such as creativity, innovation, and collaboration that will create a brighter future for our children, preparing them to be tomorrows leaders in our global economy. There are four key components to our Making the Future initiative: Our flagship program, the Making the Future After-School and Summer Program. Financial, in-kind, and volunteer support for non-profit organizations that inspire children through hands-on learning opportunities, such as the New York Hall of Science, Citizen Schools and the Museum of Science, Boston, Engineering is Elementary program. College scholarships for students interested in pursuing STEM degrees. Advocacy for change in the way STEM education is delivered, working with groups like the Business Roundtable and Change the Equation, a CEO-led initiative to cultivate widespread STEM literacy.
22
Making the Future through STEM Education

AFTER-SCHOOL AND SUMMER PROGRAM. Our flagship Making the Future initiative is the After-School and Summer Program, designed in conjunction with the New York Hall of Science, Maker Faire and Make Magazine. Community-based organizations, such as youth service organizations, science and childrens museums, will run the programs nationwide. With help from facilitators and mentors, participants will make projects of their choosing, such as electronic gadgets, robots, software programs, crafts, music, or technology-enhanced clothing. We expect to launch 10 After-School and Summer Program locations around the U.S. during 2012 and plan to grow the program over the next five years. NON-PROFIT PARTNERSHIPS: Cognizant is partnering with major educational nonprofits to create and expand programs that emphasize hands-on, project-based learning to help children. Our efforts include providing financial and technological support and volunteer assistance for the following organizations: - NEW YORK HALL OF SCIENCE. We established the Cognizant Maker Space at the New York Hall of Science (NYSCI) in March 2012. This space consists of a permanent 1,200 square-foot area located inside the NYSCI main hall, where children of all ages can experience the joy of making things, testing them, and displaying them using a mix of fabrication, digital, and everyday tools and objects. The Cognizant Maker Space will add a new dimension to NYSCIs ability to create engaging and innovative learning experiences for school groups, visitors, and families. - CITIZEN SCHOOLS. Citizen Schools is a national nonprofit organization that works with middle schools in low-income areas to expand the learning day for students and connects scientists, engineers, and other professionals with students. We joined Citizen Schools efforts as a National Leadership Partner, with a substantial grant and a commitment of talent and organizational capacity. Cognizant associates also create and teach apprenticeships, 11-week hands-on courses for middle school students. - ENGINEERING IS ELEMENTARY. Engineering is Elementary (EiE) , a Museum of Science, Boston, program provides basic engineering curriculum for use by teachers in kindergarten through fifth grade. Cognizant is providing EiE with substantial financial support, which will help to fund the creation and collection of video training resources for elementary school teachers and support expanded and deeper implementation of the EiE curriculum. The three-year project will expand EiEs reach to educators anywhere at any time, especially those who cannot attend face-to-face professional development workshops. The videos will be available online and in DVD format.
90 VOLUNTEERS
COGNIZANT FIELDED
for Citizen Schools programs the 2nd largest volunteer group of any company.
ADVOCACY THROUGH CHANGE THE EQUATION. Cognizant also is a member of Change the Equation (CTEq), a CEO-led initiative to cultivate STEM literacy. Change the Equation is bringing together companies like Cognizant across multiple sectors, all of which are dedicated to preparing students for STEM-related careers as an investment in their business, the economy and our democracy. Through innovative and effective company-led programs, Cognizant and CTEq aim to fill the opportunity gap with capable and enthusiastic STEM-literate young people. For more information on our Making the Future initiative, refer to www.cognizant.com/makingthefuture
23
PARTNERING WITH CITIZEN SCHOOLS
Citizen Teachers Make a Difference
A call to action mobilized over 90 Cognizant associates to become Citizen Teachers in classrooms across the U.S. to inspire inner-city youth to succeed. By partnering with Citizen Schools, a national non-profit that expands the learning day for middle school students in low-income areas, associates inspire students to learn STEM disciplines as well as other 21st century skills teaching apprenticeships such as designing solar cars, programming robots, producing film documentaries, and becoming more creative thinkers in the process. At the Bronx School of Science Inquiry and Investigation in New York, students learned about alternative energy, electricity and magnetism, and velocity and aerodynamics while building solar cars and gearing up for the solar sprint race. At the Martin Luther King School in North Carolina, students programmed robots to perform rescue missions in a simulation exercise. Cognizant associates Joelle Quilla and Young Lee made a lasting impression on students in Newark, New Jersey by leading a documentary film apprenticeship called Lights! Camera! Action! Change! The project also provided an opportunity to address a real issue facing teens today: violence. The Newark community faced a tragedy in 2007, when a senseless shooting took the lives of three college bound teens in the parking lot of a local school. The film project allowed students to explore community issues and interview stakeholders, inspiring them to make better choices and recognize education as the gateway to personal success. Cognizant associates are the role models who are working with students to develop critical thinking, collaboration, creativity and innovation. One student was overheard saying, When learning is this much fun, I want to learn more.
24 24
Cognizant Technology Solutions SUSTAINABILITY REPORT 2011 Cognizant Technology Solutions SUSTAINABILITY REPORT 2011
ADDRESSING INDIAS ACADEMIC CHALLENGES

As a company with significant operations in India, Cognizant is well aware of the opportunities and challenges of the countrys educational system. India has the third largest higher education system in the world, behind only the U.S. and China, and its graduates have found opportunities in a dynamic IT industry that continues to fuel economic growth and lift millions out of poverty. Yet, there are serious challenges within Indias public education system. The proportion of children in grammar school able to read a Standard 2 level text declined from 54% in 2010 to 48% in 2011, and similar declines also have been found in basic arithmetic (source: Pratham, Annual Status of Education Report, Jan. 2012). At the college level, many employers find that curriculums can be outdated, requiring them to send recent university graduates to finishing schools. Despite government and NGO action on these issues, much remains to be done to improve Indias educational opportunity at all levels.
25
OUTREACH: CHANNELING THE POWER OF VOLUNTEERS

Cognizants Outreach program channels the enthusiasm and energy of our associates, backed by corporate financial and administrative support, into volunteer activities in the education area, many of which are focused on India. Outreach is entirely led by our volunteers, who are organized into Outreach Councils by business unit or location. Each Council sets the tone of its volunteers activities, encourages associates to participate, solicits suggestions from employees as to schools and programs that might benefit from our efforts, applies for the necessary corporate support, and monitors outcomes. In 2011, Outreach volunteers participated in over 1,700 projects. Successful programs and best practices are shared among Councils.
>18,200
ASSOCIATES VOLUNTEERED IN SCHOOLS AND ORPHANAGES
in local communities to improve learning opportunities for underprivileged children (a 235% increase over 2010).
VOLUNTEERS
CLOCKED
hours (up 400% year-over-year) impacting an estimated 265,000 lives (a 112% increase from 2010).
100K
PROJECTS AND EVENTS
3,000
26
associates have participated in since Outreach was launched in 2007, reaching out to over 400,000 children.
Outreach: Embracing the Volunteer Spirit

BE A TEACHER recruits volunteers to teach classes at neighborhood schools. Some 120 volunteers are teaching in 10 schools, reaching 1,200 students. Through efforts such as targeted coaching for students with poor test scores, rewards for improved performance, summer coaching and a Neuro Linguistic program, volunteers have increased pass rates by 10-30% at 5 schools in India. EDUCATE A VILLAGE is a partnership between Cognizant and AID India to set up study centers in 25 villages in Tamil Nadu. Outreach will sponsor a village once associates raise 50% of the amount needed to run a study center for one year (US$1,100), or 20 associates commit to volunteer for a specific village. Some 700 associates have volunteered or contributed to villages through this program. DICTIONARY TRAINING is an Outreach service offering that introduces the use of dictionaries to students in a fun yet effective way. Specially trained Cognizant volunteers visit schools referred by our associates and take sessions for students from Class 7 to Class 10. Children in most of these schools are from impoverished backgrounds and these sessions are the first time that they have been able to use a dictionary. STREET CHILDREN EMPOWERMENT PROGRAM volunteers visit with homeless children at 3 centers in Chennai to take students on field trips and lead story telling, math puzzle, and hygiene sessions. Since June 2011, volunteers have made more than 100 visits to these centers and clocked 550 volunteer hours. TALHUNT is an interschool cultural competition. In 2011, some 18,000 students from 59 schools competed to showcase their creative abilities. Winning schools receive financial aid to help improve their facilities. INFRASTRUCTURE PROJECTS, such as renovating classrooms and building libraries, computer labs, science labs, and sports facilities, have been completed at schools and other locations, through a combination of volunteer labor and Cognizant donations. We have sponsored 146 such infrastructure projects in India in 2011. NOTEBOOK DRIVES conducted by Outreach volunteers distributed free notebooks to over 66,000 children in 2011 and 120,000 children in the past three years. SOCIAL AUDIT SHOWS OUTREACH RESULTS*
89%
of the parents credited their childrens improved academic performance to Outreach volunteers.
78%
of students developed an interest in reading after a library was set up or revamped at their school.
82%
of volunteers feel volunteering helps increase their awareness of social issues and desire to help society.
* Social audit of Outreach activities in India conducted for 2010 by the Centre for Social Initiatives & Management.
27
PROJECT GREEN BOOKS
Project Green Books Improves the Educational Environment
A dilapidated single-room residential middle school with a leaky roof and a single teacher who taught 120 students from grades 18 is now transformed. The school, located in Topslip, a wildlife sanctuary in the Anamalai mountain range, caters to the children of a tribal society residing in hamlets inside the Sathyamangalam forest. Volunteers of the Wild Wings Society (WWS), a grassroots group started by Saravanan Chandrasekaran, a Cognizant employee and environment enthusiast, have supported this school through their Project Green Books initiative from June 2011. While the projects main mission is developing more environmental awareness among tribal communities, they made it a priority to upgrade the educational experience of the Topslip students. Each week, WWSs team of 10-15 volunteers plans weekend activities for the children and logistics for volunteers visits to the school. A two hour journey through hilly terrain and forests brings volunteers to the school. When the volunteers arrived at the school for their first visit, all grades met in the same classroom, many students did not even know which class they were studying in. The volunteers started with Orientation programs for students and placed them in grades based on their age. Volunteers cleaned and renovated the school with the support of youth from the neighboring village and set up a childrens park. Inspired by their work, the government has now allotted an additional staff for the school. The WWS team says that this is just the beginning a beginning of a better future.
28 28
GRASSROOTS AND OTHER EDUCATION ACTIVITIES

Cognizant also provides support for Grassroots activities in India that are not part of the formal Outreach program, but are championed by individual associates. One such program, Third Eye, produces books in Braille in non-curriculum subjects. Donations raised by our associates have enabled nine publishers to produce some 250 titles, bringing the joy of reading to visually challenged students. Another Grassroots program, Green Star, uses techniques developed in our Business Process Outsourcing (BPO) practice to track students performance. Green Star has led to a 17% increase in attendance and 40% increase in homework completion over the last year. As a global organization, we are committed to promoting educational initiatives at many of Cognizants locations around the world. For example, in the U.K., we have joined with other leading companies to support the Princes Trust, which develops programs to combat youth unemployment. Our financial and operational support enables young people to participate in programs that give them the skills, confidence and motivation to move into work, education or training. In December 2011, we were one of the recipients of the Trusts Superstars Award, given in recognition of the 17 Cognizant associates who took part in the Wild UK Challenge, a strenuous event in which participants raise funds for the Trust by hiking, cycling and kayaking 100 miles in three days.
29
LOOKING FORWARD
2012 U.S. STEM EDUCATION GOALS Launch 10 pilot Making the Future After-School and Summer Programs. Launch a US college scholarship program for students wishing to pursue STEM degrees. Fund a micro-grant program to bring Engineering is Elementary curriculum to 50 teachers. Provide additional education-oriented volunteer opportunities for associates.
2012 GLOBAL OUTREACH GOALS Clock 200,000 volunteer hours. Encourage 1 in every 5 associates to volunteer.
30
WHITE HOUSE SCIENCE FAIR
Young Inventor Aims for Success
As a result of our commitment to STEM education, Cognizant was invited to participate in the second annual White House Science Fair held on February 7, 2012. Mark Greenlaw, who leads our Making the Future program, represented Cognizant at the event. For the Cognizant family, a highlight of the White House Science Fair was the involvement of Joey Hudy, the 14-year-old son of Victor Hudy, a Cognizant employee. Joey attended the Fair with his parents and his Extreme Marshmallow Cannon, which he designed to fire marshmallows up to 175 feet using pressurized air. He demonstrated the invention for President Obama, who took the opportunity to shoot a marshmallow across the State Dining Room. Joeys story demonstrates the impact of our efforts to advance STEM education in the U.S. as we support programs to inspire young learners to pursue science, technology, engineering, and math disciplines by creating fun, hands-on learning opportunities. In a speech following the White House Science Fair, President Obama saluted the innovative spirit embodied in the motto on Joeys business card: Dont be Bored, Make Something!
31
STEWARDSHIP OF THE ENVIRONMENT

Cognizant is working to rewire our operations to lessen our environmental impact. We are 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, and not merely a reaction to compliance requirements or current popular interests.
32
While some may deny or dispute the risk of climate change, we take a precautionary approach as defined by Article 15 of the Rio Principles and have implemented significant programs to reduce our carbon emissions. 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. (For our GRI Disclosure on our Environmental Management Approach, please refer to Appendix B.) Consequently, we have established a greenhouse gas policy that is reducing emissions across our global delivery network. In addition, we are working with our employees to put into effect best practices for conserving energy and shrinking individual carbon footprints. Collectively, these measures ensure that we operate in an environmentally friendly manner and drive sustainable economic growth. With more than 137,000 associates and more than 50 delivery centers worldwide, we work to better manage our offices environmental impact. For example, in Cognizants annual Carbon Disclosure Project declaration, we reported a 32% per capita reduction in 2011, compared to 2008.
Concern over climate change has provided an opportunity to reassess our energy dependence and energy productivity.
33
GO GREEN
Our commitment to achieve measurable reductions in our environmental impact is embodied in a company-wide effort that we call Go Green. Launched in 2009, Go Green uses sophisticated organizational change-management practices to engage associates actively in Cognizants environmental programs. 2011 GO GREEN ACCOMPLISHMENTS*
CARBON EMISSIONS BY
Average Monthly Per Capita Electricity Consumption (in kWh)
400 350 300 250 200 150 100 50 0 2008 2009 2010 2011
REDUCED PER CAPITA
32% REDUCED PER CAPITA 34% REDUCED PAPER CONSUMPTION BY 60%

ENERGY CONSUMPTION BY
* 2011 compared to 2008.
Energy Optimization
We embarked on an energy efficiency improvement project using Six Sigma and Lean techniques. The project covered all aspects of our infrastructure office space, utilities, desktop hardware and data centersas we identified operational levers to optimize energy usage and reduce waste. We formed teams focused on key energy consuming equipment and ran Six Sigma Green Belt Projects for HVAC, Uninterruptable Power Supplies, Lighting and Generators. First we focused on operational efficiency, sharing best practices across locations, tracking and reporting progress, and recognizing the most efficient locations through a reward and recognition program. We then focused on design efficiency, measuring total cost of ownership of equipment and fine-tuning our design requirements. Finally, we focused on equipment efficiency by tracking key efficiency metrics and building internal expertise to improve problem solving. Through our energy optimization efforts, over the last three years we have achieved 40% reduction in per capita energy consumption in our India facilities.
Energy Handbook
Our energy optimization efforts culminated in the publication of an Energy Handbook, which collected all of the best practices developed across our global facilities. The Handbook has been distributed to all of our facilities management and infrastructure teams to serve as a ready-reference in energy management and design.
34
EXTERNAL RECOGNITION
Winning Awards for Environmental Commitment
We are proud that our efforts to reduce Cognizants environmental impact have been recognized by well-respected external sources. We ranked #16 in Newsweeks 2011 Green Rankings of the 500 largest publicly traded companies in the U.S. and #51 in their Global Green Rankings. Cognizant earned Newsweeks #1 environmental impact score for the IT industry in 2011, up from #25 in 2010 and #49 in 2009, largely due to our low per-capita emissions. Cognizant was recognized in 2011 for Exceptional Leadership in Internal Measures in the IT segment in the Parivartan Sustainability Leadership Awards, organized by India Carbon Outlook, which recognizes Indian companies that have embraced sustainability in their business operations. Our Golf View Campus in Bangalore won the Indian Bureau of Energy Efficiencys National Energy Conservation Award for 2011 in the Office Buildings category. Cognizants offices at the Bagmane Tech Park in Bangalore received the Energy Efficiency Award bestowed by the Karnataka Renewal Energy Department. Our Smart Metering Management Platform (SMMP) won the 2011 Smart Grid Excellence Award from SmartGrid.TMCnet.com, a website dedicated to technologies that enable and harness smart grids. Cognizant was a winner in the U.S. EPAs Apps for the Environment awards program, for CGSearch, our mobile Green IT application that enables users across the U.S. to compare the air quality index, air pollutant levels and energy consumption of various cities.
35
Grassroots Green
TREE PLANTING PROGRAM. We made a commitment to plant a tree for every associate in 2010, to celebrate reaching the 100,000 employee mark, and we are on track to exceed that goal. In Chennai, India, we have partnered with TIST to plant 100,000 saplings. Because trees planted under such programs often die of neglect, this program pays subsistence farmers to care for the saplings for 10 years. Similarly, we have partnered with the New Jersey Tree Foundation in the U.S., Carbon Managers in the U.K., and Natuurmonumenten in the Netherlands to plant trees in these geographies.
Planting 100,000 trees was an unforgettable experience. When we went and saw the grown up trees four months later it was wonderful. I really enjoyed the day. - Manoj Kumar CS
EARTH DAY CAMPAIGN. The Go Green program went social with our Earth Day campaign, A billion acts of green via Facebook and Twitter, which encouraged associates across Cognizant to share their green acts and inspire others using social media. GREEN QUOTIENT. We held a quiz on environmental issues for engineering graduates, in which over 700 students from engineering schools participated. CARBON SCORE. Organized by one of our campus HR teams, this program gave business school students an opportunity to address industry-specific environmental challenges with innovative business plans. WORLD ENVIRONMENT DAY. The day was celebrated across Cognizant with music concerts, street plays and games themed on the environment. BIRD HABITATS. The hundreds of trees planted on our campuses over the last three years attract a lively bird population. We provide bird feeders and bird baths, and two of our offices have bird watching binoculars so associates can observe rare migratory birds.
36
ENVIRONMENT MANAGEMENT SYSTEM. We have implemented an Environment Management System, as defined by ISO 14001 standards, 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, four of which were certified in the past year. WATER USAGE. 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 918,876 kiloliters of utility water, the average associate uses about 554 liters per month at the office. Similarly, based on total consumption of 27,076 kiloliters of drinking water, the average associate drinks 196 liters per month at the office. Our operations did not affect any local water body significantly. We recycled and reused over 210,509 liters of water (22% of utility water reused). We have piloted a series of measures in key facilities to reduce our per capita water utilization (excluding drinking water). Initiatives include re-using treated water for flushing, using bio-blocks for waterless urinals and re-using water from air conditioners. We will be setting a reduction target shortly. REDUCING TRAVEL IMPACT. 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. PAPERLESS OFFICES. We have made great strides in reducing paper usage at our offices through online submission of expense reports, medical bills and tax documents. Our Cognizant Academy training organization has drastically reduced paper by offering courses via webinars and e-Learning, saving time, energy and cost spent on travel and logistics. Paper feedback forms were replaced with email to collect training feedback eliminating 189,000 sheets of paper.
37
R&D ON GREEN IT
We are conducting research and development on a number of IT applications that can help organizations to go green. For example, CG Live is a program that monitors PCs and collects data from sensors to analyze and decide on a course of action (such as Hibernate/Sleep/Log-off). It also provides real-time energy consumption details of PCs. Cnap is an SMS-based mobile application to hibernate/wake-up PCs, whereby users can remotely manage their PCs to save energy. Gboard, an extension of Cnap, detects whether the user of a PC is logged off/hibernated and sends this information to the server to switch off lights near the idle PC.
LOOKING FORWARD
We achieved significant emissions intensity reduction with relentless focus on energy usage. After addressing the demand side we are now focusing on the supply side where we are looking to source green energy from a mix of wind, bio-mass and solar projects. We are also focused on reducing our per capita water consumption and recycling our considerable food waste to produce bio-fertilizers and bio-gas. Specifically we are working towards achieving the following objectives over the next several years: Reduction of scope 1 & 2 per capita carbon emissions by 40% from 2008 levels by 2015 Energy Efficiency @ 1.2 kwh/sqft/mo Zero water discharge at all campuses 100% recycling of paper in all major offices Recycling of food waste in our major campuses Sunset of ODS refrigerants
Energy Consumption Direct Energy Consumption (in Mega Joules) - 100% from use of nonrenewable diesel fuel Indirect Energy Consumption (in Mega Joules) - 100% from purchase of nonrenewable electricity Total Energy Consumption (in Mega Joules)
Mega Joules 97,719,156
690,057,180
787,776,336
Energy saved due to conservation and efficiency improvements - 13,781 MWh
38
GHG Performance SCOPE 1 Emissions SCOPE 2 Emissions SCOPE 3 Emissions Total GHG Emissions SCOPE 1 Intensity SCOPE 2 Intensity SCOPE 3 Intensity GHG Intensity
2008
2009
2010
2011
2011-2010 Change -3% 18% 39% 20% -26% -13% 6% -9%
2011-2008 Change 21% 46% 79% 50% -45% -36% -19% -32%
22,981 98,784 35,964 157,729 0.37 1.60 0.58 2.56
21,567 103,377 27,738 152,681 0.28 1.33 0.36 1.96
28,647 122,187 46,270 197,104 0.28 1.17 0.44 1.90
27,829 144,629 64,487 236,945 0.20 1.06 0.47 1.73
The emissions data for 2008 to 2010 have been restated using recently published regional India grid emission factors.
Waste E-waste Used oil Used bulbs Used batteries Other waste
Quantity 5,163 PCs 13,185 Liters 19,914 nos 5,831 nos 1,611 Kgs
Hazardous Yes Yes No Yes No
Disposal Method Recycled with authorized vendors Disposed through authorized recyclers Disposed through various vendors Disposed through authorized recyclers Disposed through various vendors Gas Weight CH4 3.42MT N2O 0.21MT HFC-134a 1.22MT 407C 0.52MT
Waste Data Weight of transported, imported, exported, or treated waste deemed hazardous
Emissions of ozone-depleting substances by weight NO, SO, and other significant air emissions by type and weight
39
RESPONSIBILITY AT WORK
Cognizant is working to reinvent our workplace to meet the needs of clients and associates now and in the future. Helping businesses adapt to a rapidly changing technological and competitive landscape requires ever greater numbers of talented and highly motivated people. Therefore, our relationships with our associates are an integral part of Cognizants sustainability efforts.
40
We focus on attracting and retaining the best talent to help clients adapt to and benefit from a rapidly changing business landscape.
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 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. In addition, we aim to foster a culture of service, characterized by a passionate commitment to partnering with clients and achieving exceptional results. (For our GRI Disclosure on our Labor Management Approach, please refer to Appendix B.) The effectiveness of our efforts to make Cognizant a great place to work and build a career can be measured in several waysincluding our ongoing ability to attract qualified people, our low and declining attrition rate, and high employee satisfaction scores. We added over 33,000 employees in 2011. We believe our attrition rate stands among the lowest in our industry: attrition for 2011 as a whole was 13%, more than 5 percentage points lower than for the corresponding period in 2010, and our attrition rate reached a low of 10% in the 2011 fourth quarter on an annualized basis. We also received record high scores on our most recent annual, independently conducted employee satisfaction survey. The Business Effectiveness Survey (BES) conducted annually through Hay Management Consultants returned the best BES score (72% favorable responses) in our history, with improvements across all dimensions surveyed.
41
DIVERSITY INITIATIVES
The diversity of our workforce is an important area that we have targeted for focus and improvement. Increasing the number of women in management and senior leadership roles globally has been an important area of emphasis. In general, the IT industry, as with many of the STEM-oriented industries, attracts a lower percentage of women than men. Women represented 32% of the Companys associates overall, and 16% of management, as of December 31, 2011. Women represented 44% of our global campus hiring last year.
% of Women by level (Dec.31, 2011) Level Management Associates Overall Overall 16% 38% 32%
Summary: Women constitute 32% of the total workforce of Cognizant, up 1% from 2010. Over 80% of the women returned from maternity leave, considering 1 in 12 women availed of the leave.
Ratio of basic salary of men to women (Dec.31, 2011) Level Senior Mgmt Middle Mgmt Associates Overall APAC 0.99 1.39 1.22 1.27 Europe 1.05 0.93 1.13 1.00 India 1.08 1.04 1.03 1.03 The Americas 1.01 1.00 0.99 1.00 Overall 1.04 1.03 1.03 1.03
Summary: For work of similar nature, Cognizant pays equal pay to men and women of its work force. The ratio of the basic salary of women to men in 2011 was 1. (Note: Where ratios do not equal 1, differences are on account of variations in work experience and nature of skills)
WOMEN EMPOWERED. The cornerstone of our efforts to attract, develop and retain qualified female employees is a program we call Women Empowered. It is the first of many future employee resource groups Cognizant plans under our overall Diversity program. This initiative emphasizes communications and networking to provide a collaborative and supportive environment for female associates. Using our Cognizant 2.0 global collaboration platform and social media sites such as LinkedIn and Facebook, female employees can communicate and get to know one another by sharing career information and providing resources and advice.
42
2011 was a year of immense growth for Women Empowered as it began to gain traction globally. By December 2011, Women Empowered had over 100 volunteers across North American, India and Europe. Our volunteers are critical in the development and execution of Women Empowereds five main pillars of focus: attract, retain, develop, communicate and network. In 2011 Women Empowered hosted over 20 events that comprised of breakfasts, lunch and learns, focus groups, webinars and panel discussions. Volunteers within our Attract team became individual members of Women in Technology International and were successful in hiring significantly more women into our business consulting practice. Along the way we developed the C2.0 platform and LinkedIn page to enable our female associates around the world to network and share information. We also initiated the development of a flexible work arrangement policy and identified a select group of high-potential female leaders to participate in a formal mentoring program through Women Unlimited, Inc. Over the next several years, we expect the initiatives described above, and others to be added as our programs evolve and we expand the number of women in leadership roles around the globe. In particular, Women Empowered is working on several initiatives for 2012 including Sabbatical and Extended Personal Leave policies to offer associates better work-life balance, formal mentoring programs for junior to mid-level manager staff, and more regional based networking events. Leveraging what we have learned through the development of Women Empowered, Cognizant will start its second employee resource group by the end of 2012.
43
WOMEN EMPOWERED
Cognizant Community for Women Powers Opportunity
Women Empowered organized a special edition of Cognizant Community for female clients in 2011. Community is our annual event for clients, partners and employees, and provides an important forum for networking and discussions of IT issues and their impact on business. In November, our Cognizant Community for Women was held in Hartford, Conn. and brought together over 42 clients to talk about How Women Will Shape the Future of Work. Among the highlights was a keynote speech by Ilene Lang, President and Chief Executive Officer of Catalyst, the leading nonprofit membership organization dedicated to expanding opportunities for women in business. Following Ilenes speech, we hosted an insightful panel discussion that was moderated by Malcolm Frank, then Senior Vice President and currently, as of February 8, 2012, Executive Vice President of Strategy and Marketing at Cognizant. Our Panelists comprised four senior female clients and Cognizants Karen McLoughlin, then Senior Vice President for the Enterprise Transformation Group. Karen has since been promoted to Chief Financial Officer at Cognizant, representing a significant milestone for Women Empowered and Cognizants overall Diversity mission. Because of the success of this Cognizant Community event, Women Empowered plans to host three more events in 2012 beginning with one in Dallas, Texas in April that will focus on how todays women executives are encouraging STEM education and careers for tomorrows female executives.
44 44
TRAINING AND PROFESSIONAL DEVELOPMENT

We are committed to continuous learning, giving our associates opportunities to stay current with leading-edge technologies and to develop communication skills so they can perform their roles effectively and efficiently. In addition to the formal learning in classrooms, Cognizant Academy brings learning to our employees desktops. We use multi-modal methods, such as content-management systems, blogging, Wikipedia, video-based training and distance education/higher education, as well as Technology-Based Training. Nearly 14.2 million hours of training were provided in 2011, with the average employee receiving 116 hours of training. The first year at Cognizant is the most formative period of a strong career. Our Campus Associate Training Program (CATP) is our flagship, mission critical training program that helps recent graduates acquire the disciplines and mind-set to transition from college to corporate life. In 2011, CATP was launched for Americas and Europe. More than 100 graduates recruited from over 14 universities across the Americas and Europe graduated from this program. We will be extending the CATP program to the U.K. and Middle East in 2012.
Our Life-Cycle Intervention Series comprises programs exclusively for associates who step into a supervisory/managerial role for the very first time. Role-specific and business-aligned, these programs equip associates to meet the highest standards of delivery excellence and people management.
Senior executives have three dedicated learning tracks called Executive Essentials, Executive Excellence and MPower that cater to over 7,000 emerging leaders. MPower is a complete suite of on-line resources including courses, books, videos and guest speaker sessions covering a broad range of topical areas.
14.2
NEARLY
MILLION HOURS
of training were provided in 2011, with the average employee receiving 116 HOURS of training.
45
CAREER DEVELOPMENT
We provide individualized career-development tracks to empower our people to reach their full potential and enable the Company and our clients to gain the benefits of enthusiastic, motivated, and highly-skilled employees. Employees 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 across the Company. Fast-track growth opportunities are offered to high performers, and opportunities to shift tracks also are encouraged to avoid an associate being pigeon-holed in one discipline. In addition to providing opportunities for role and lateral career changes, we actively create promotion and leadership opportunities. As an organization growing at an accelerated rate compared with our competition, it becomes crucial to develop and acquire leadership talent to manage our large and growing business. Last year, one-third of our associates moved up the career chain to take on higher responsibilities.
PERFORMANCE MANAGEMENT
All employees undergo regular performance assessments at least once a year. These reviews are designed to assess their performance against goals and competencies, which are documented in a goal-setting document and are based upon the associates chosen career track. Our process is to provide associates with developmental feedback both during and at the end of the year. Assessment includes a performance score card for senior management employees. 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.
46
COMPENSATION AND BENEFITS

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. Benefit plans vary by geography, depending on local customs and regulations. For example, benefit options for U.S. associates include medical and dental plans, flexible health care and day-care spending accounts, a 401(k) plan, employee stock purchase plan, life and disability insurance, a confidential employee assistance plan, a wellness resource center, prepaid legal services, and discounts on merchandise and services. We also have recognition programs that reward associates for activities ranging from excellence in technology to significant contributions at the team, business unit or organizational level. 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.
EMPLOYEE SATISFACTION AND WORKING CONDITIONS

Cognizant strives to provide excellent working conditions for its associates across the globe. As a knowledge-based company, the majority of our employees work in very pleasant office environments. 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. Additionally, we began pursuing OHSAS 18001 certification of our facilities in 2010 and have achieved certification of eight of our largest facilities in India.
Accidents with injury cases Total number of injury cases Total number of Lost Time cases Total number of fatalities
India 18 3 None
We provide individualized career-development tracks to empower our people to reach their full potential.
47
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. We track injuries in different systems in accordance with local requirements. We are working to implement a global injury tracking system to enable global reporting of injuries in the work place. In Continental Europe (CE), we are working to set up policies, committees and a full injury tracking processes. We expect to have completed this by year-end 2012 in the Netherlands, Switzerland, France, Germany and the Nordic countries. 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.
COLLECTIVE BARGAINING
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 the right of employees to freedom of association, in line with the Universal Declaration of Human Rights issued by the United Nations in 1948. As of December 31, 2011, 140 of our employees (0.1%) were covered by Collective Bargaining Agreements.
48
HUMAN CAPITAL AWARDS

We are proud that Cognizant has won accolades in 2011 from external forums and industry bodies as a good place to work, as well as for our training and career development programs. Vault.com ranked Cognizant #6 among the 25 Best Places to Work in IT consulting in October 2011, based on 16 quality of life indicators. Cognizant was named to the prestigious Training Top 125 rankings compiled by Training magazine, the leading business publication for learning and development professionals. Our Career Compass program received the Gold Award for Integrated Talent Management from the Brandon Hall Group, a leading research firm devoted to organizational performance. In 2011, for the first time, Cognizant joined the Top 100 U.S. Employers list, an annual ranking by HR Executive Magazine of the largest U.S.-based, non-government employers based on total number of employees.
LOOKING FORWARD
A key objective is to expand our OHSAS certification program to more facilities in different geographies. Steps that we intend to take in that regard include: We will move to a global injury tracking system to provide a global view of workplace injuries, rather than the current practice of tracking injuries in different systems per local requirements. We are working to set up policies, committees and full injury tracking processes in all countries across Continental Europe (CE). We expect our main CE countries, Netherlands, Switzerland, France, Germany and the Nordic countries, to have completed this by year-end 2012. In addition, we are working towards achieving the following objectives over the next few years: Cognizant Europe will launch Women Empowered for Europe March 2012 a committee has been appointed to support the initiative and the program will start with networking events. Establish a second employee resource group under our diversity initiative. Achieve Zero workplace accidents causing lost time. Reduce Ergonomic ailments to an absolute minimum (10% reduction year-on-year). Implement transportation automation ensuring better safety and security of associates.
49
GOVERNANCE AND ETHICS

We take our governance responsibilities very seriously at Cognizant and have built a reputation as a highly ethical company with strong governance policies and practices. We consider ethical behavior the cornerstone of our long-term business success. As our CEO emphasizes in our Core Values and Standards of Business Conduct (Code), Our winning mentality isnt just about doing great things. Its about doing great things the right way. Thats how we continue to build trust with our customers and protect the valuable asset that is Cognizant.
50
(For our GRI Disclosures on our Society and Human Rights Management Approaches, please refer to Appendix B.)
ETHICS TRAINING
Ethical behavior is critical to building trust with our stakeholders and protecting the valuable asset that is Cognizants reputation.
All associates are required to complete annual ethics training and vice presidents and above must certify their compliance with the Codes provisions annually. Our employees spent over 97,000 hours on ethics training in 2011, compared to 37,000 hours in 2010. The substantial increase in hours was due in part to tracking time spent taking a second ethics course. However, the percentage of employees taking ethics training dropped to 82% in 2011 from 91% in 2010. In 2012, we introduced an improved system for tracking the amount of ethics training our employees received. Our formal learning was supplemented in 2011 by education campaigns featuring games, quizzes and prizes. 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. Our Code of Ethics can be found on our website at http://www.cognizant.com/OurApproach/CodeofEthics.pdf
WE LIVE BY A CODE OF ETHICS THAT REAFFIRMS OUR CORE VALUES AND STANDARDS OF CONDUCT THAT IS DESIGNED TO: Communicate the basic principles of policies, business ethics and legal requirements. Protect Cognizants 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 industryspecific examples, frequently asked questions, key contacts and links to internal policies, among other things.
51
RIGOROUS CONTROLS
Like all U.S. publicly traded companies, Cognizant is subject to the Sarbanes-Oxley Act of 2002, which covers financial disclosure and addresses controls over financial reporting, audit committees, external auditors, codes of ethics, whistleblower protection and attorney conduct. Since it went into effect, we have complied with all of Sarbanes-Oxleys provisions and have never reported a material weakness in controls over financial reporting. Our compliance is tested independently by our external auditors. Additionally, we have had no legal actions for anticompetitive behavior, anti-trust, or monopoly practices. Nor have we had any significant claims against us regarding the use of our products or services. Our Board of Directors includes an independent, non-executive chairman and six of our eight directors are independent under rules of The NASDAQ Stock Market, where Cognizant is listed. One of the directors is a woman (non-executive). 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 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 boards effectiveness. Sustainability performance is also reviewed at the Board Level. Cognizants 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. Cognizants President is responsible for reviewing the committees 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. 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. Complaints are routed jointly to the compliance director and general counsel with a detailed account of all reported incidents sent monthly to the audit committee chairman and to executive management.
52
REGULATORY COMPLIANCE
Our partners and customers expect and deserve nothing less than our full commitment to all applicable laws and regulations.
Like many knowledge-driven, U.S.-based global companies, we depend on a global workforce of talented professionals. Our partners and customers expect and deserve nothing less than our full commitment to all applicable laws and regulations on the immigration front and in all other parts of our business. Our success depends on our adherence to both the spirit and the letter of U.S. visa laws and indeed to laws of all types in all the countries around the world in which we operate. In 2011, in an effort to ensure that we continually operate with the highest ethical standards, we voluntarily asked a highly-regarded international immigration law firm to undertake a comprehensive audit of our entire immigration practice and compliance with all relevant U.S. immigration laws. Their report, issued just a few months ago, found that Cognizant is in compliance with U.S. immigration laws, actively promotes and requires full compliance with legal requirements, and supports an overall atmosphere of compliance. 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.
COMPLIANCE RESOURCES
Our dedicated compliance resources include our general counsel, compliance director and chief security officer. They work to 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. We may consult with these professionals regarding, among other things, board approval of acquisitions and related-party transactions; complete and accurate disclosures in public filings such as our annual report; and the performance of annual audits of our financial statements. Our internal audit capabilities include audit teams in the United States, India and the United Kingdom/Europe. They have direct access to the boards audit committee and their scope is set annually based upon risk assessments, e.g., finance, compliance and security. The internal audit teams perform reviews of Sarbanes-Oxley section 404; compliance with laws and regulations, such as immigration statutes; control reviews at entities that are not covered by Sarbanes-Oxley; compliance with internal policies that cover banking, travel and expenses; accounting processes; and payroll. Cognizant has established a stringent policy covering insider trading and black-out periods for stock transactions. This policy is designed to prevent the occurrence or appearance of improper trading in our stock by associates and directors. It assures shareholders, analysts and others that the market for our stock is a fair one and not influenced improperly by those that may possess non-public information. The black-out period that covers all associates extends from 15 days before each quarter ends to the third business day after we release earnings.
53
ANNUAL ASSOCIATE SURVEY

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 director and the general counsel if they contain allegations of fraud or unethical conduct.
SUPPLY CHAIN INTEGRITY
We strive to ensure that the vendors who participate in our supply chain employ the highest ethical standards.
We strive to ensure that the vendors who participate in our supply chain employ the highest ethical standards within their own business and we investigate and respond to any allegation of bribery or corruption. Cognizant introduced a Sustainable Procurement Policy in 2011 that includes a Supplier Standards of Conduct, as well as a supplier survey based on the GRI G3.1 guidelines. The Supplier Standards of Conduct includes (but is not limited to) such areas as compliance with applicable laws, ethical competition, non-discrimination against employees, prohibitions against child and forced labor, safe working conditions, compliance with environmental laws, accuracy of financial records, and avoidance of conflicts of interest. Cognizant encourages its suppliers to publicly disclose their performance on environmental, social, and governance measures. We are also working with our procurement team to embed corporate responsibility clauses into our contracts. The supplier survey is an important mechanism to ensure these clauses are followed. Our Supplier Standards of Conduct can be found on our website at http://www.cognizant.com/RecentHighlights/Supplier_Standards_Conduct.pdf In 2011, we had two claims of corruption involving employees and vendors in our supply chain. After conducting thorough investigations, we found fault in both cases and both employees were terminated and we no longer do business with the vendors. Additional remedies may be pursued to the extent allowable under local laws. As a result of these issues, new controls were implemented for the creation of new vendors in certain higher risk procurement areas. Cognizant also recognizes the critical importance of fundamental human rights, such as the prohibition of child labor and forced labor. Cognizant does not use child or 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. In our daily operations, we adhere to all International Labor Organization standards and are studying our supply-chain policies and procedures to ensure that all our suppliers conform to the same high standards as we do. As for political activities, we encourage participation in the political process on an individual basis and not on behalf of the Company. Regarding policy advocacy activities, our associates are prohibited from lobbying the government or other policy-making organizations on Cognizants behalf unless it is explicitly part of their job to do so. Those engaged in policy advocacy on behalf of Cognizant comply with all applicable laws, rules and regulations, and our Standards of Business Conduct.
54
PUBLIC POLICY ADVOCACY

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, Cognizants 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. Cognizants 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. Todays 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.
55
Industry Bodies. We have memberships in following industry associations and national/international advocacy organizations: U.S.-based organizations US India Business Council (our CEO is part of the Leadership Council) US Chamber of Commerce Business Roundtable Information Technology Industry Council European-American 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 PresidentMarketing serves as the Chairman of the Chennai Chapter and is on the national Executive Board) Confederation of Indian Industry (our Group Chief ExecutiveTechnology 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
LOOKING FORWARD
In 2012, our Goals are to: Achieve 90% compliance rate on mandatory ethics training. Include our new Supplier Standards of Conduct in new vendor contracts. Initiate our new Supply Chain Survey with at least 50 of our top vendors and obtain a response rate of 80% or better.
56
APPENDICES
57
APPENDIX A: ABOUT THIS REPORT

This is our second annual Sustainability Report and documents the year ended December 31, 2011, a period in which Cognizants revenue increased 33%. 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.
STAKEHOLDER ENGAGEMENT
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, shareholders, 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. 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, as described in the section Commitment to Customers, 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 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 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. Shareholders As a publicly-traded company, our shareholders are our owners and therefore constitute another extremely important stakeholder group. 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. 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. The section of this report on Governance and Ethics is also written with the interests of our shareholders in mind.
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. Many of these mechanisms are described in the section Responsibility at Work. 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 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 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 great work our employees do on 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 the governments at national and local levels on a very frequent, regular basis. We engage in public policy discussions as described in our section on Governance and Ethics. 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.
58
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. This report was developed specifically with these stakeholder groups in mind. However, we did not specifically involve any groups in the report development process, other than a team of about 20 employees who were directly involved in providing or developing report content. In determining what to report, we formed a Sustainability Reporting Committee led by our VP of Sustainability, which included executives from the areas which 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 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 global efforts to improve education. Our environmental performance, especially initiatives to track and reduce greenhouse gas emissions.
These stakeholder issues, and the ways in which Cognizant has responded to them, have been addressed throughout this report. Subsequently we examined each indicator that was deemed to have high or medium stakeholder materiality to determine if we had the necessary data to report. This resulted in the final set of indicators we chose to disclose. For the high materiality indicators where we did not have the necessary data, we determined what processes would need to be implemented in order to gather and report on the information in future years. In terms of data measurement techniques, in all cases and to the best of our knowledge, 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 Institutes toolkit for calculating air travel emissions. In all cases, we are reporting actual data and not estimates. At this point in time, we have not chosen to pursue third party assurance of our sustainability report. Our last sustainability report was for the year 2010. We have not had any significant changes from previous reporting period in the scope, boundary, or measurement methods applied in the report, other than the change in emissions factors noted on page 39. If you have any questions or comments please write to Mark GreenlawVice President, Sustainability & Educational Affairs or send an email to sustainability@cognizant.com
59
APPENDIX B: DISCLOSURES ON MANAGEMENT APPROACH

This section provides detailed information regarding our management approach as required by the GRI G3.1 guidelines. Disclosures are provided for the Economic, Environmental, and Social categories. The Social category is further broken down into Labor, Human Rights, Society, and Product Responsibility categories.
DISCLOSURE ON MANAGEMENT APPROACH: ECONOMIC ASPECT
Goals and Performance As a U.S. publicly traded company, Cognizant is committed to providing maximum long-term returns to its shareholders. Cognizants 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. This section will discuss our management approach with respect to Economic Performance, Market Presence, and Indirect Economic aspects of sustainable development. We believe we provide substantial economic value to society. We work with our clients to optimize their business performance and use of technology, and in turn help them achieve economic, social, and environmental objectives. Our industry leading performance provides substantial financial reward to our investors. Our more than 137,000 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. We seek to provide strong indirect economic benefits by building local infrastructure that will benefit the communities in which we operate. Our primary area of investment is in the education of children in our communities. These programs are extensively described in the section of the report Educating for the Future. Policy We have numerous internal policies and practices that drive us to achieving strong financial and economic performance. We do not have specific policies around the local hiring or use of local hires. Our Sustainability Policy (found at http:// www.cognizant.com/OurApproach/Sustainability%20 Policy.pdf) describes our commitment to Enhancing the communities in which we live and work through outreach programs to improve the quality and accessibility of education for children across the globe.
DISCLOSURE ON MANAGEMENT APPROACH: ENVIRONMENTAL ASPECT
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, and not merely a reaction to compliance requirements or current popular interests. We have set organization-wide goals in around energy and carbon emissions. Our goal is to reduce energy consumption and emissions by 40% per capita by 2015 versus our 2008 baseline. We have made excellent progress against these goals, as outlined in this report. Because we do not have a physical supply chain, we are not a heavy consumer of natural resources. We do use paper in our operations, so have also set goals around paper use. We operate within office buildings and the issue of biodiversity is generally addressed by the landlords who own our facilities. In cases where Cognizant is engaged in constructing new facilities, we conduct environmental impact assessments and follow all local laws and regulation in terms of protecting natural habitats. We strive to reduce our emissions from transport of our employees, both when traveling on business or for local commuting. We have implemented a global Telepresence platform to reduce the need for employee business travel. We work with our transportation providers to reduce their energy consumption. Additional environmental goals can be found in the section Stewardship of the Environment within this report. Policy We have a series of policies that govern our environmental impact. Our Sustainability Policy (found online at http:// www.cognizant.com/OurApproach/Sustainability%20Policy. pdf) 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 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 engage our associates to participate in events such as Earth Hour, World Water Day, and local events and competitions that educate our associates and raise awareness (See Grassroots Green section earlier in this report). 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. 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 technique 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.
60
DISCLOSURE ON MANAGEMENT APPROACH: LABOR ASPECT
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 Cognizants 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. The effectiveness of our efforts to make Cognizant a great place to work and build a career can be measured in several waysincluding our ongoing ability to attract qualified people, our low and declining attrition rate, and high employee satisfaction scores. We believe our attrition rate stands among the lowest in our industry: attrition for 2011 as a whole was 13%, at least 5% points lower than for the corresponding period in 2010, and attrition reached a low of 10% in the 2011 fourth quarter. 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. Many of these processes our outlined in the Responsibility at Work section of this report. Additionally, our Sustainability Policy (found online at http://www.cognizant.com/OurApproach/Sustainability%20 Policy.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.
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. Training and Awareness Our global Talent Management teams provide extensive training and awareness across all aspects of our business, including topics such basic human resource management, conducting effective performance appraisals, managing career development, and opportunities for training. Our Touchstone team provides regular educational communications on various topics related to occupational health and safety, healthy living, and work-life balance. Additionally, our mandatory ethics training covers topic such as ensuring our workplace is free of discrimination and harassment. Our Womens Initiative is also raising awareness on gender issues. Monitoring and Follow-Up Our global Talent Management team gathers information and monitors our internal performance at various intervals throughout the year. One essential input is feedback from our annual employee satisfaction survey, described in more detail in the Responsibility at Work section of this report. Extensive analysis is done on the results of this survey and plans are put in place each year to address any areas for improvement. We gather data using exit interviews and surveys from employee leaving the company. Additionally, as part of our compliance process we run a whistle-blower hotline to enable employees, vendors, and other stakeholder to anonymously report any violations of fair labor practices. 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.
61
DISCLOSURE ON MANAGEMENT APPROACH: HUMAN RIGHTS ASPECT
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 affect 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 Cognizants 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 Cognizants commitment to: Maintaining high standards of honest, ethical and legal business behaviors 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 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 annual 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.
62
DISCLOSURE ON MANAGEMENT APPROACH: SOCIETY ASPECT
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 Cognizants 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 Cognizants commitment to: Maintaining high standards of honest, ethical and legal business behaviors 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. Protect Cognizants 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 Codes 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 the United Kingdom/ Europe. They have direct access to the boards audit committee and their scope is set annually based upon risk assessments, e.g., finance, compliance and security.
DISCLOSURE ON MANAGEMENT APPROACH: PRODUCT RESPONSIBILITY ASPECT
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, as described earlier in this report. 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. The customer satisfaction survey is described in more detailed in the section Commitment to Customers. 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. 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 Director, and Human Resources teams to take corrective action.
63
APPENDIX C: GRI INDICATORS

STANDARD DISCLOSURES PART I: Profile Disclosures
1. STRATEGY AND ANALYSIS

Profile Disclosures Description
Statement from the most senior decision-maker of the organization. Description of key impacts, risks, and opportunities.
Reported
Fully Fully
Page
2 13, 14
1.1 1.2
2. ORGANIZATIONAL PROFILE
Name of the organization. Primary brands, products, and/or services. Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures. Location of organizations headquarters. 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. Nature of ownership and legal form. Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries). Scale of the reporting organization. Significant changes during the reporting period regarding size, structure, or ownership. Awards received in the reporting period.
Reported
Fully Fully Fully Fully
Page
6 6 7 6
2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10
Fully
Fully Fully Fully Fully Fully
6 7 14 14 9
64
3. REPORT PARAMETERS
Reporting period Date of most recent previous report (if any). Reporting cycle Contact point for questions regarding the report or its contents. Process for defining report content. Boundary of the report State any specific limitations on the scope or boundary of the report 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. 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. 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). Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report. Table identifying the location of the Standard Disclosures in the report. 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).
Reported
Fully Fully Fully Fully Fully Fully Fully Fully
Page
58 59 58 59 58, 59 58 58 58
3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13
Fully
59
Fully
59
Fully Fully
59 64-71
Fully
59
65
4. GOVERNANCE, COMMITMENTS, AND ENGAGEMENT

Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight. Indicate whether the Chair of the highest governance body is also an executive officer. 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. Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body. Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organizations performance (including social and environmental performance). Processes in place for the highest governance body to ensure conflicts of interest are avoided. 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. 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. Procedures of the highest governance body for overseeing the organizations 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. Processes for evaluating the highest governance bodys own performance, particularly with respect to economic, environmental, and social performance. Explanation of whether and how the precautionary approach or principle is addressed by the organization. Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses. 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. List of stakeholder groups engaged by the organization. Basis for identification and selection of stakeholders with whom to engage. Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body. 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.
Reported
Fully
Page
52
4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8
Fully
52
Fully
52
Fully
52, 54
2012 Proxy Statement Pages 4050 and Compensation Committee Charter
Fully
Fully
52 52 Annual Report: Page 17 50, 51
Fully
Fully
4.9 4.10 4.11 4.12
Fully
51
Fully Fully Fully
Annual Report: Page 46 33 37, 47, 60, 61, 62
4.13
Fully
56
4.14 4.15 4.16 4.17
Fully Fully Fully
58 58 58
Fully
59
66
STANDARD DISCLOSURES PART II: Performance Indicators ECONOMIC

Profile Disclosure Description
Disclosure on Management Approach
Reported
Fully
Page
60
DMA
ECONOMIC PERFORMANCE
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. Financial implications and other risks and opportunities for the organization's activities due to climate change. Coverage of the organizations defined benefit plan obligations. 8 Annual Report: Page 45 33 Annual Report: Page F-18 Annual Report: Pages F-18 & F-19
EC1
Fully
EC2 EC3
Fully
Fully
EC4
Significant financial assistance received from government.
Fully
MARKET PRESENCE
EC7
Procedures for local hiring and proportion of senior management hired from the local community at locations of significant operation.
Fully
8, 9
INDIRECT ECONOMIC IMPACTS
EC8 EC9
Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in kind, or pro bono engagement. Understanding and describing significant indirect economic impacts, including the extent of impacts.
Fully Fully
8, 20-30 7, 8
67
ENVIRONMENTAL
Reported
Fully
Page
60
DMA
ENERGY
EN3 EN4 EN5 EN7

WATER
Direct energy consumption by primary energy source. Indirect energy consumption by primary source. Energy saved due to conservation and efficiency improvements. Initiatives to reduce indirect energy consumption and reductions achieved.
Fully Fully Fully Fully
38 38 38 34
EN8 EN9 EN10 EN16 EN17 EN18 EN19 EN20 EN22 EN24
Transport
Total water withdrawal by source. Water sources significantly affected by withdrawal of water. Percentage and total volume of water recycled and reused.
Fully Fully Fully
37 37 37
EMISSIONS, EFFLUENTS AND WASTE

Total direct and indirect greenhouse gas emissions by weight. Other relevant indirect greenhouse gas emissions by weight. Initiatives to reduce greenhouse gas emissions and reductions achieved. Emissions of ozone-depleting substances by weight. NO, SO, and other significant air emissions by type and weight. Total weight of waste by type and disposal method. 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. Fully Fully Fully Fully Fully Partially 39 39 33 39 39 39
Partially
39
EN29
Significant environmental impacts of transporting products and other goods and materials used for the organizations operations, and transporting members of the workforce.
Fully
37
68
LABOR
Reported
Fully
Page
61
DMA
Employment
LA1 LA2
LA3 LA15
Total workforce by employment type, employment contract, and region. Total number and rate of employee turnover by age group, gender, and region. Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations. Return to work and retention rates after parental leave, by gender.
Partially Partially Fully Fully
8 41 47 42
LABOR/MANAGEMENT RELATIONS
LA4
LA5
Percentage of employees covered by collective bargaining agreements. Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements.
Fully Fully
48 41
OCCUPATIONAL HEALTH AND SAFETY
LA6
LA7 LA8
Percentage of total workforce represented in formal joint managementworker health and safety committees that help monitor and advise on occupational health and safety programs. Rates of injury, occupational diseases, lost days, and absenteeism, and number of work related fatalities by region. Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.
Fully
47, 48
Fully
48
Fully
48
TRAINING AND EDUCATION
LA10
LA11 LA12
Average hours of training per year per employee by employee category. Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings. Percentage of employees receiving regular performance and career development reviews.
Fully Fully Fully
45 45 46
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.
Partially
42
EQUAL REMUNERATION FOR WOMEN & MEN
LA14
Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation.
Fully
42
69
HUMAN RIGHTS
Reported
Fully
Page
62
DMA
INVESTMENT AND PROCUREMENT PRACTICES
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.
Fully
51
FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING
HR5
CHILD LABOR
Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights.
Fully
54
HR6
Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination of child labor.
Fully
54
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.
Fully
54
70
SOCIETY
Reported
Fully
Page
63
DMA
LOCAL COMMUNITIES
SO1
CORRUPTION
Percentage of operations with implemented local community engagement, impact assessments, and development programs.
Fully
27
SO2
S03 SO4
PUBLIC POLICY
Percentage and total number of business units analyzed for risks related to corruption. Percentage of employees trained in organizations anti-corruption policies and procedures.. Actions taken in response to incidents of corruption.
Fully Fully Fully
51 51 54
SO5
Public policy positions and participation in public policy development and lobbying.
Fully
54, 55
ANTI-COMPETITIVE BEHAVIOR
SO7
Total number of legal actions for anticompetitive behavior, anti-trust, and monopoly practices and their outcomes.
Fully
52
PRODUCT RESPONSIBILITY
Reported
Fully
Page
63
DMA PR5
COMPLIANCE
PRODUCT AND SERVICE LABELING

Practices related to customer satisfaction, including results of surveys measuring customer satisfaction. Fully 18
PR9
Monetary value of significant fines for noncompliance with laws and regulations concerning the provision and use of products and services.
Fully
52
71
72
For the printing for the 2011 Cognizant Sustainability Report we saved the following resources by using Mohawk Options 100% PCW recycled fiber paper. 1
Trees 55 fully grown Solid waste 2,608 pounds

1
Water 23,571 gallons Greenhouse gases2 7,742 pounds net
Energy 39 millions BTU Fuel oil2 3 barrels
Calculations to demonstrate the environmental benefits of using recycled fiber in lieu of virgin fiber are provided by Mohawk Fine Papers. FSC is not responsible for any calculations on saving resources by choosing this paper. includes additional savings derived from manufacturing with windpower
WORLD HEADQUARTERS
Glenpointe Centre West 500 Frank W. Burr Blvd. Teaneck, NJ 07666 PHONE: 201.801.0233 TOLL FREE: 888.937.3277 www.cognizant.com

Cognizant Sustainability Online

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Cognizant Sustainability Online

Uploaded by

Copyright:

Available Formats

SUSTAINABILITY REPORT 2011

COGNIZANT SUSTAINABILITY REPORT 2011

WORKING TO RETHINK, REINVENT & REWIRE

SUSTAINABILITY REPORT 2011 Cognizant Technology Solutions

LETTER FROM CEO FRANCISCO DSOUZA

Cognizant Technology Solutions SUSTAINABILITY REPORT 2011

Francisco DSouza Chief Executive Officer

SUSTAINABILITY REPORT 2011 Cognizant Technology Solutions

LETTER FROM VICE PRESIDENT OF SUSTAINABILITY MARK GREENLAW

Cognizant Technology Solutions SUSTAINABILITY REPORT 2011

Mark Greenlaw Vice President, Sustainability & Educational Affairs

SUSTAINABILITY REPORT 2011 Cognizant Technology Solutions

Cognizant Technology Solutions CORPORATE SUSTAINABILITY REPORT 2011

OUR ECONOMIC PERFORMANCE

SUSTAINABILITY REPORT 2011 Cognizant Technology Solutions

1,328,665 117,401 1,136,468 32,681 1,169,149 285,531 $ 883,618 $ 2.91 $ 2.85

972,093 103,875 861,852 16,728 878,580 145,040 $ 733,540 $ 2.44 $ 2.37

Region Asia-Pacific Europe India Americas Total

Local Hires % 66% 71% 97% 71% 83%

Employees 2,350 4,300 109,250 21,800 137,700

Cognizant Technology Solutions SUSTAINABILITY REPORT 2011

AWARDS AND RECOGNITION

and has the

Fortunes All-Star List of

GROWING COMPANIES BARRONS 500, ranking the

Performance and Client Satisfaction Rankings in Europe

moved up from Fortune 1000 in 2011

WORLDS MOST ADMIRED COMPANIES

list for the third year in a row

RANKING WORLDS LARGEST COMPANIES

SUSTAINABILITY REPORT 2011 Cognizant Technology Solutions

Cognizant Technology Solutions SUSTAINABILITY REPORT 2011

SUSTAINABILITY REPORT 2011 Cognizant Technology Solutions

COGNIZANT POLICY ON SUSTAINABILITY AND CORPORATE RESPONSIBILITY

Cognizant Technology Solutions SUSTAINABILITY REPORT 2011

SUSTAINABILITY REPORT 2011 Cognizant Technology Solutions

Cognizant Technology Solutions SUSTAINABILITY REPORT 2011

SUSTAINABILITY REPORT 2011 Cognizant Technology Solutions

Cognizant Technology Solutions SUSTAINABILITY REPORT 2011

PARTNERING WITH CLIENTS

SUSTAINABILITY REPORT 2011 Cognizant Technology Solutions

MEASURING CUSTOMER SATISFACTION

Cognizant Technology Solutions SUSTAINABILITY REPORT 2011

SUSTAINABILITY REPORT 2011 Cognizant Technology Solutions

EDUCATING FOR THE FUTURE

Cognizant Technology Solutions SUSTAINABILITY REPORT 2011

SUSTAINABILITY REPORT 2011 Cognizant Technology Solutions

MAKING THE FUTURE: STEM EDUCATION IN THE U.S.

Cognizant Technology Solutions SUSTAINABILITY REPORT 2011

Making the Future through STEM Education

SUSTAINABILITY REPORT 2011 Cognizant Technology Solutions

PARTNERING WITH CITIZEN SCHOOLS

Citizen Teachers Make a Difference

ADDRESSING INDIAS ACADEMIC CHALLENGES

SUSTAINABILITY REPORT 2011 Cognizant Technology Solutions

OUTREACH: CHANNELING THE POWER OF VOLUNTEERS

Outreach: Embracing the Volunteer Spirit

SUSTAINABILITY REPORT 2011 Cognizant Technology Solutions

PROJECT GREEN BOOKS

Project Green Books Improves the Educational Environment

GRASSROOTS AND OTHER EDUCATION ACTIVITIES

SUSTAINABILITY REPORT 2011 Cognizant Technology Solutions

Cognizant Technology Solutions SUSTAINABILITY REPORT 2011

WHITE HOUSE SCIENCE FAIR