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