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SUSTAINABILITY REPORT2011
Working to
RETHINK, REINVENT & REWIRE
our impact on society and the planet
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Introduction 01
Letter from CEO 02
Letter from VP of Sustainability 04
Organizational Prole 06
Sustainability at Cognizant 10
Commitment to Customers 16
CONTENTS
Educating for the Future 20
Stewards of the Environment 32
Responsibility at Work 40
Governance and Ethics 50
Appendices
Appendix A: About this Report 58
Appendix B: Disclosures on
Management Approach 60
Appendix C: GRI Indicators 64
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SUSTAINABILITY REPORT 2011 Cognizant Technology Solutions 1
WORKING TORETHINK, REINVENT& REWIREOUR IMPACT ON SOCIETY AND THE PLANET
Progressive companies continually reimagine their
business models or a changing world. As a global IT
services and consulting frm, Cognizant makes itpossible or clients to do thatby bringing our extensive
resources and our understanding o technology, business
processes and industries to help them drive innovation,
growth and eectiveness.
Its the same with our approach to sustainability. We believe it is our responsibility
to apply our collective knowledge, talent and energy to the challenges aced
by ourselves and all o our stakeholdersin society, the environment, the
workplace and corporate governance. Today, Cognizant is working to rethink
our role in improving education in our communities, to rewire our operations
to lessen our environmental impact, and to reinvent our workplace to meet the
needs o clients and associates now and in the uture.
In this, our second annual Sustainability Report, we employ the sustainability
reporting ramework o the Global Reporting Initiative (GRI) to describe our goals
and our perormance in these and other critical areas. We hope you careully
read our 2011 report, and let us know what you think by emailing us at
At Cognizant, we continually envision new solutions to sustainability challenges
and work to make that vision a reality or our clients, associates, shareholders,
partners and the communities in which we live and work.
RETHINK
REINVENT
REWIRE
COGNIZANT SUSTAINABILITY REPORT 201
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Cognizant Technology Solutions SUSTAINABILITY REPORT 20112
At Cognizant, our commitmentindeed our passionis to help our clients respond to
and meet the challenges and opportunities o a business environment that is
undergoing dramatic change. We innovate or many o the worlds leading companiesas they adapt to a uture o work that is being transormed by globalization,
virtualization, the millennial demographic shit, and disruptive new technologies.
Yet we cannot prepare any business (our clients or our own) or the uture o work
without considering the uture o our society and our planet. This realization inspires
us to be responsible global citizens and play a positive role in our communities.
The main thrust o our sustainability eorts includes: maintaining high standards o
business conduct; improving education in our communities; reducing environmental
impact; providing a sae workplace while promoting proessional development;
and delivering on commitments to clients, investors, associates and other stakeholders.
LETTER FROMCEOFRANCISCODSOUZA
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SUSTAINABILITY REPORT 2011 Cognizant Technology Solutions 3
IN THE PAST YEAR, WE MADE PROGRESS ON A NUMBER OF FRONTS:
We expanded our eorts to rethink our role in education. In the U.S., we launched
our Making the Futureprogram to stimulate hands-on learning and interest in
mission-critical science, technology, engineering and math (STEM) disciplines.
Globally, we harnessed the power o more than 18,000 o our associates, who
volunteered over 100,000 hours through our Outreach program to teach, mentor,improve school acilities, and provide learning materials.
We continued to reinvent our workplace to attract, retain and nurture the talented
people we need to serve our clients and society, and to grow our value. We oer not
only a sae and healthy workplace, but also extensive proessional development
opportunities through Cognizant Academy and other programs. The success o these
eorts is reected in our record high employee satisaction scores and declining
attrition levels.
We worked to rewire our operations to become more environmentally sensitive,
advancing aggressively on our targets to reduce carbon emissions, water, paper,
and waste. Our eorts are embodied in our Go Green program, including extensivegrassroots activities by associates, which helped Cognizant rise to #16 in Newsweeks
U.S. Green rankings, as well as #51 in NewsweeksGlobal Green rankings.
While sustainability has been an integral part o our business or many years, in 2011
we adopted a ormal policy on sustainability and corporate responsibility, as well as
a supplier code o conduct, to ensure that our priorities and commitments are clear,
concrete, and unmistakable. We also embrace relevant GRI guidelines and perormance
indicators and our results are disclosed in this annual sustainability report.
There is much more we can do to advance sustainability. You can be assured that we
will continue to approach these eorts with determination, innovation, and passion.
Sincerely,
Francisco DSouza
Chie Executive Ofcer
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Cognizant Technology Solutions SUSTAINABILITY REPORT 20114
As you will see in this report, we made tremendous progress during 2011 in our journey
to be a more sustainable and responsible company. Im very proud o our progress,
particularly since this is only my second year leading Cognizants Sustainability
Ofce ater previously serving as our Chie Inormation Ofcer.
We believe sustainability should be woven into our business and cannot be an
independent, ancillary unction. To that end, our mission is to raise awareness on
sustainable practices across all o our business units and corporate unctions, then
help them set goals, monitor progress, and report perormance. With more than
137,000 associates, and operations across 14 countries, its a big ship, so to speak,
and progress towards sustainable development occurs at dierent rates in dierent
parts o the organization. Thats why we continually evaluate our perormance,
critically assess where we can do better, and constantly raise the bar to meet or exceed
industry benchmarks or sustainable and responsible business practices. On our
journey, we continue to learn every day rom our NGO partners, peer companies,
employees, customers, investors, and other stakeholders.
LETTER FROMVICE PRESIDENT OFSUSTAINABILITYMARKGREENLAW
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SUSTAINABILITY REPORT 2011 Cognizant Technology Solutions 5
A credible sustainability report should not only disclose all the positive things a
company accomplishes, but should also candidly discuss some o the challenges we
ace in evolving our business practices. With that in mind, Id like to share some
commentary on our perormance in 2011 and how it has shaped our goals or 2012.
We made good progress in working to drive sustainability through our supply chain.
Youll read that we adopted an over-arching sustainability policy which includes oursupply chain, introduced a supplier code o conduct, and began surveying our suppliers.
However, we did not get as ar as we had hoped in gathering perormance data rom
our suppliers, so this will continue to be a major ocus in 2012.
We did not achieve our target o implementing a global injury tracking ramework in
2011. We have relatively ew injuries at Cognizant, due to the nature o the work in
a knowledge-based industry, and we compile country specifc data that meets local
laws and regulations. Nonetheless, we dont yet have a global injury reporting
platorm. This goal will continue to be a priority in 2012.
Additionally, in 2012 we will continue to build on the progress we made in 2011 to rethink
our role in education, rewire our operations to preserve the environment, and reinventour workplace to be as diverse, collaborative, and proessionally rewarding as possible.
Our goals for the coming year include:
Achieving 200,000 volunteer hours by employees.
Launching 10 pilot Making the FutureAterschool and Summer Programs in the U.S.
Continuing to make progress toward our 2015 carbon emissions reduction targets.
Launching a world-class Diversity Program leveraging the success o our Women
Empowered (WE) initiative.
We remain committed to investing our inancial and human capital in things that
matter to society, to ensuring that uture generations have opportunities or proessional
and personal growth, and to making a positive impact on our world. I hope you fnd
our 2012 Sustainability Report on these eorts inormative and enjoyable to read.
Sincerely,
Mark Greenlaw
Vice President, Sustainability & Educational Aairs
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6 06 Cognizant Technology Solutions CORPORATE SUSTAINABILITY REPORT 2011
ORGANIZATIONAL
PROFILECognizant is a leading provider o custom inormation
technology, strategic consulting services, and business process
outsourcing. Headquartered in Teaneck, New Jersey (U.S.), the
Company is publicly traded on The NASDAQ Stock Market (CTSH).
Cognizant joined the Fortune 500 or the frst time in 2011
(at No. 484), and also is ranked among FortunesWorlds Most
Admired Companies (No. 3 in the IT industry).
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SUSTAINABILITY REPORT 2011 Cognizant Technology Solutions 7
We serve clients in the United States, Europe and, increasingly in other international
markets such as Asia-Pacifc and South America. To serve our clients needs, we have
more than 50 delivery centers in 14 countries and we are continuously adding or
expanding global delivery capacity. We utilize a seamless global sourcing model that
combines technical and account management teams located on-site at the customer
location and at dedicated near-shore and oshore development and delivery centers.
Currently, our delivery centers are located primarily in India, China, the United States,
Canada, Argentina, Hungary and the Philippines. All o our operations across the globe
are linked via our Cognizant 2.0 knowledge-sharing and project-management platorm.
Our primary customers are Global 2000 companies and our business is organized
around our vertically-oriented business segments: Financial Services; Healthcare;
Manuacturing, Retail and Logistics; and Other, which includes Communications,
Inormation, Media and Entertainment and High Technology.
COGNIZANTS 7 CULTURAL VALUE DRIVERS
Open - providing an environment o open doors and open minds.
Transparent - our communications, whether positive or negative, are alwaysproactive, direct and honest, and we view transparency as critical to the health
o our company.
Driven - with a can do approach ocused on delivering excellence at all times,
and we expect and reward personal and team initiative.
Empowered - our associates have the reedom to ind the best way to meet
a customers needs within the structure o our Code o Conduct.
Opportunity - focused - presenting excellent potential or career growth.
Flexible - able to adapt in real time to each new marketplace challenge.
Collaborative - predicating the growth o individuals on their contributionsto their teams success in delivering exceptional customer experiences.
OUR ECONOMIC PERFORMANCE
As a U.S. publicly traded company, Cognizant is committed to providing maximum
returns to its shareholders, while providing fnancial success or our employees,
suppliers, and the communities in which we operate. (For our GRI Disclosure on our
Economic Management Approach, please reer to Appendix B.)
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Cognizant Technology Solutions SUSTAINABILITY REPORT 20118
Below is a summary o our Consolidated Statements o Operations, taken rom our
2011 Annual Report.
Year Ended December 31
In thousands, except per share data 2011 2010
Revenues $ 6,121,156 $ 4,592,389
Operating expenses:
Cost o revenues (exclusive o depreciation and
amortization expense shown separately below)
3,538,622 2,654,569
Selling, general and administrative expenses 1,328,665 972,093
Depreciation and amortization expense 117,401 103,875
Income rom operations 1,136,468 861,852
Total other income (expense), net 32,681 16,728
Income beore provision or income taxes 1,169,149 878,580
Provision or income taxes 285,531 145,040
Net income $ 883,618 $ 733,540
Basic earnings per share $ 2.91 $ 2.44
Diluted earnings per share $ 2.85 $ 2.37
Cognizant donated over $8 million in 2011 to education, inrastructure and other such
investments across the globe.
Through our more than 50 development centers on fve continents, we contribute
to skilled labor markets and stimulate economies in developing nations, particularly
India, by helping approximately 785 clients worldwide grow their businesses and run
them efciently and eectively.
Proportion of Senior Managers and Above Hiredfrom the Local Community (As o December 31, 2011)
Region Local Hires %
Asia-Pacifc 66%
Europe 71%
India 97%
Americas 71%
Total 83%
Total workforce by region (Dec.31, 2011)
Region Employees
APAC 2,350
Europe 4,300
India 109,250
Americas 21,800
Total 137,700
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SUSTAINABILITY REPORT 2011 Cognizant Technology Solutions 9
On the hiring ront, 83% o our senior managers are local hires, meaning they live
locally and are citizens or legally authorized to work within the country in which they
are hired. While we do not have explicit procedures or local hiring, actors considered
include skill availability in the marketplace, migration regulations, geography,
and local customs.
AWARDS AND RECOGNITION
While awards cannot truly measure a companys contribution either to the corporate worl
or broader society, they can serve to reect its commitment to responsibility and trust
We are especially pleased that Cognizant has been ranked among the Top 500 in the
NewsweekGreen Rankings since 2009. We have improved our position each year, and
ranked #16 among the 500 largest publicly traded companies in the U.S., up rom #138
in 2010 and #449 in 2009. We also stand as #51 in NewsweeksGlobal Green rankings
Within the IT industry, Cognizant had the #1 environmental impact score in 2011, up
rom #25 in 2010 and #49 in 2009.
Global Rankings
IN NEWSWEEKS U.S. GREEN RANKINGSand has the #1ENVIRONMENTALIMPACT SCORE
in the IT INDUSTRY.
COGNIZANT IS #16
FORTUNE 500 LISTmoved up rom Fortune 1000 in 2011
Fortunes WORLDS MOSTADMIREDCOMPANIESlist or the third year in a row
BARRONS 500,ranking theS&P 500 based on sales growth and
cash ow return on investment
FT GLOBAL 500,compiled by the Financial Times,RANKINGWORLDSLARGEST COMPANIESbased on market capitalization
Fortunes All-Star List o
100 FASTESTGROWING COMPANIES
FIRST PLACE in EquaTerrasPerormance and Client Satisaction
Rankings in Europe
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Cognizant Technology Solutions SUSTAINABILITY REPORT 201110
SUSTAINABILITY
AT COGNIZANTSTRATEGY AND ANALYSIS
Cognizants strategy is to be a partner with our clientsapplying
the talent o our people, global delivery network, deep industry
expertise, and profciency in technology and consulting to helpmake their businesses stronger. Helping our clients succeed and
prosper has produced strong growth or our company, as well.
Since our ounding in 1994, we have grown rom a start-up with
175 employees, to over 137,000 associates worldwide and annual
revenues o more than $6.1 billion in 2011.
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SUSTAINABILITY REPORT 2011 Cognizant Technology Solutions 11
THE RELEVANCE OF SUSTAINABILITY
We believe our competitive edge in serving our clients needs derives rom our
commitment to helping them identiy, anticipate and embrace changes in technology and
business processes that will impact the ways in which they engage with their customers,
markets, employees, supply chain and other constituencies. Simply stated, our job is
to help clients seeand prepare orthe Future o Work.
It is in this context that we approach sustainability. There can be no meaningul plans
or the uture without taking into account the ways in which society and business are
aected by sustainability. Along with all global enterprises, we must ask ourselves
the big questions: How could we and our clients be aected by scarcity or price
volatility o natural resources? What impact would a shortage o qualifed employees
have on our growth? Could our reputation, and thus our relationships with clients, be
damaged by lapses in corporate governance? How will our working and living conditions
be aected by climate change?
SUSTAINABILITY POLICY AND COMMITMENTS
The answers to these and similar questions impact all o usand our amilies,
communities, colleagues, clients and our business overall. For this reason, in 2011
Cognizant adopted a Policy on Sustainability and Corporate Responsibility that sets
orth our priorities and commitments in this area.
Our Sustainability Policy can be ound on our website at
http://www.cognizant.com/OurApproach/Sustainability%20Policy.pdf
There can be no
meaningful plansfor the futurewithout takinginto account theways in whichsociety andbusiness areaffected by
sustainability.
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Cognizant Technology Solutions SUSTAINABILITY REPORT 201112
COGNIZANT POLICY ON
SUSTAINABILITY AND
CORPORATE RESPONSIBILITY
At Cognizant Technology Solutions Corporation,sustainability is vital to our success.
Our internal performance and client satisfaction
depend on how we:
Provide whats best or people and theenvironment.
Conduct our business aairs, employingthe highest standards o personal andcorporate conduct.
Serve and satisy our customers; thus shapingour ability to sustain our own uture.
It also concerns how we support our employees, ourbusiness partners, the communities where wework and the next generation o proessionals.We recognize that acting in a responsible andsustainable manner creates new opportunities,increases shareholder value, and enhances ourbrand and reputation with multiple stakeholdersgroups while protecting the environment andnatural resources.
This policy outlines Cognizants overallcommitment to corporate responsibility andsustainability, and guides our activities acrossall global operations. It is an integral part oour core business strategy and is supportedby a range o global and regional policies: CoreValues and Standards o Business Conduct,Environmental Policy, Occupational Health andSaety Policy, Anticorruption Policy, SupplierCode o Conduct, and many other internalpolicies, procedures, and programs. These policiesare based on internationally recognized standardsand rameworks such as the United NationsGlobal Compact, International Labour Organiza-tion (ILO) and the Global Reporting Initiative (GRI).
Cognizant is committed to: Maintaining high standards o honest, ethical
and legal business behaviors at all times andcomplying with all applicable laws andregulations o the countries and locales inwhich we operate.
Competing ethically or our business withoutpaying bribes, kickbacks or giving anythingo material value to secure an advantage.
Providing a workplace ree rom discrimination,harassment or any type o abuse.
Ensuring that child labor is not used in anyoperations.
Ensuring that all orms o orced or compulsorylabor are orbidden in any operations.
Providing sae working conditions or allemployees and complying with all local laws withrespect to wages, hours and benefts.
Complying with all applicable environmentallaws, regulations and standards and tracking
and reducing negative environmental impact. Enhancing the communities in which we live and
work through outreach programs to improvethe quality and accessibility o education orchildren across the globe.
Engaging with our suppliers to ensure theyollow our supplier code o conduct and arestriving to improve the sustainability otheir businesses.
Utilizing the Global Reporting Initiativesguidelines to establish perormance targetsor material sustainability perormanceindicators, tracking our perormanceagainst these indicators, and disclosingour perormance publicly in an annualSustainability Report.
In addition, Cognizant seeks to anticipate uture
sustainability risks and opportunities, newregulations, and market trends to ensure theresponsible development o our businessinto the uture.
AccountabilityThe responsibility or operating in a sustainableand responsible manner must be embedded intoall o Cognizants business units and corporateunctions. To ensure this is the case, CognizantsVice President o Sustainability leads a globalcommittee that is responsible or developingand driving implementation o the corporateresponsibility and sustainability strategy andtargets guided by this policy. Cognizants Presidentis responsible or reviewing the committeesperormance against this policy on an annualbasis and reporting the results o this review with
our Board o Directors or a Committee o theBoard o Directors.
This policy will be reviewed annually andupdated as required to maintain Cognizantsposition as a leader in sustainability andcorporate responsibility.
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STRATEGIC PRIORITIES.
We believe it is essential to our business, as well as to society as a whole, to promote and
achieve sustainability in the ollowing areas, which we have identifed as our priorities:
Commitment to customers We strive to deliver superior service and tangible
business advantages to our clients in order to sustain the operational and inancial
perormance o our business as the oundation o all our activities.
Educating for the future Given our growth, we expect to continue to need increasing
numbers o talented, technologically adept employees, leading to our strong support
o education initiatives in science, technology, engineering and math (STEM) disciplines.
Stewardship of the environment We believe that reducing our impact on the
environment is not only a responsible endeavor, but is essential to ensure a
long-term and cost-eective supply o the resources needed to support our business.
Responsibility at work Supporting the proessional development o our employees,
ensuring the diversity o our workorce, and providing appealing working conditions
are all essential to our productivity, excellence and competiveness.
Sound corporate governance Operating in an ethical and transparent mannerthat goes beyond mere letter o the law compliance is essential to maintaining our
corporate reputation and thus our credibility with customers, employees, shareholders
business partners and others.
Our activities in each o the above areas are discussed in detail in this Report.
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Cognizant Technology Solutions SUSTAINABILITY REPORT 201114
OUR SUSTAINABILITY CONTEXT:IMPACTS, RISKS AND OPPORTUNITIES
As a company whose product is inormation services and consulting advice, our
supply chain is essentially knowledge based. We are a people-intensive company.
Thus, our operations are not signifcant consumers o raw materials, nor do we sell
a product that requires packaging or shipping. Our primary impact on society and
the environment is the care and wellbeing o our more than 137,000 employees.
Our acilities do consume natural resources and energy or the physical premises and
systems, and to provide employees with proper working conditions.
Our employee base grew by 32% in 2011, as we have expanded to serve the increasingly
complex needs o a growing number o clients. We rank #68 on HR Executivemagazines
2011 roster o the 100 largest U.S.-based non-government employers. We view our
employee base as a signifcant resource in contributing to society, and have an active
program known as Outreach to solicit, coordinate and support volunteer eorts.
One area in which we have a signiicant and positive economic impact is the
compensation we pay our employees. We also provide solid global career opportunities
with rapid advancement, primarily because we have always ocused on building
a global team and accessing top talent rom leading universities and the lateral
market. We believe this emphasis on talent, coupled with our unique global
culture, rank among our key dierentiators.
We believe thatimprovingeducation is one
of the mostsignicant ways inwhich we can havea long termpositive impacton sustainabilityacross the globe.
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We believe our ocus on the Future o Workwith its orces o globalization,
virtualization, millennials and technologyputs us at the oreront o the new economy.
It is changing the way in which businesses, consumers, employees and others relate
to and interact with each other. It is also driving businesses to be more transparent
and more accountable or the positive and negative impacts they have on society.
To the extent that our services enable clients to operate more productively, eectively
and cost-efciently, we may have an indirect positive impact on simulating growth
and economic opportunity, while helping clients reduce their resource consumption.
In addition, we believe that improving education is one o the most signifcant ways
in which we can have a long term positive impact on sustainability across the globe
This belie drives our intense commitment to help people gain the education necessary
to participate in the global economy. Our support also underlines the critical business
case to meet the increasing demand or highly educated workers. At the same time
we recognize that improved education can bring more people out o poverty and
give them the knowledge necessary to solve some o our worlds biggest social and
environmental challenges.
Further, we strive to be an extremely well-managed company, with strong governance,
ethics and a track record o providing rewarding careers to our associates. In addition
to robust economic and social perormance, we are working pragmatically to improve
how we manage our environmental impact. We are committed to lead our industry in
conserving energy, reducing and disposing o waste, and recycling. Cognizant actively
supports national and international climate-change policies, protocols and initiatives.
Further, we proactively teach our associates best practices or conserving energy and
shrinking individual carbon ootprintsall in an eort to operate in an environmentally
riendly manner and drive sustainable economic growth.
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Cognizant Technology Solutions SUSTAINABILITY REPORT 201116
COMMITMENT
TO CUSTOMERSSustainability at Cognizant starts with our customer relationships,
which lie at the root o our ability to build and grow a business that
can contribute to the needs o society, employees, shareholders,
and others. We do not sell a physical product, but instead provide
high-value services to our clients, and are oten embedded deeply
within our client organizations, working together over a period
o months or years.
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SUSTAINABILITY REPORT 2011 Cognizant Technology Solutions 17
We view each client relationship as a true partnership, as our unique global delivery
model allows our teams to be tightly integrated into a clients organization.
Together, we strive to achieve shared perormance objectives that will generate
tangible returns or our clients in terms o innovation, growth, increased efciencies,
and enhanced competitive advantage. (For our GRI Disclosure on our Product
Responsibility Management Approach, please reer to Appendix B.)
PARTNERING WITH CLIENTSPutting customers frst is embedded in our culture. We place a very experienced
employee onsite with a client team to ensure awless alignment. This Client Partner
is the teams leader and by working onsite, absorbs a clients culture, operational
processes, challenges and business goals. The Client Partner, who oten has an
advanced degree and at least a decade o experience, pairs with a senior Cognizant
Delivery Director as part o what we term our two-in-a-box client-engagement model.
This approach lets us provide superior service to help each customer reduce IT operational
costs, embrace best practices, and undergo sustainable business transormation.
Many o our senior associates originate rom the industries we serve, so we are able
to oer deep experience across nearly all major industries. Our advanced technologyalso helps us serve clients better. Built on the latest Web 2.0 technologies, our Cognizant
2.0 global delivery platorm lets our associates, business partners and clients worldwide
work as one. This osters sharing o experience and insights, and collaborating more
in real time to achieve superior results.
Our customers entrust us to solve some o their more pressing business and
technology problems, and in so doing they grant us access to sensitive, confdential
data and inormation. To ensure that we protect this inormation, Cognizant has
appropriate operational and technological processes and procedures designed to
saeguard against unauthorized access, loss, destruction, thet, use or disclosure o
data. We take extraordinary care to ensure the security o our data and inormation.
We house our servers in secure data centers and use a wide range o industry leadingtools or scrambling test data provided by clients, as well as sanitizing and shredding
fles on old computers we redeploy. We also use an extensive set o fltering and data
loss-prevention tools designed to ensure that sensitive inormation does not leave
our network without authorization.
We partner withour clients toachieve sharedperformanceobjectives thatwill drive tangibleresults andbusiness
transformation.
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Cognizant Technology Solutions SUSTAINABILITY REPORT 201118
MEASURING CUSTOMER SATISFACTION
We put our commitment to client satisaction to the test by soliciting regular client
eedback. Since customer satisaction is one measure o an organizations sensitivity
to its customers needs, rom an organizational perspective, it is essential or
long-term success. Every year, we conduct a customer-satisaction study, employing
both quantitative and qualitative methodologies. Customers within client organizationsare nominated or inclusion in the study and vetted by the client organizations.
A minimum o 45% o the nominees participate in the quantitative portion.
In our most recent annual customer-satisaction survey, and or the ourth year in
a row, more than 85% o our clients expressed a high degree o satisaction, which is
considered extraordinary in our industry. Also, or the last fve years, over 65% o our
customers indicated that their overall experience with our services was better or much
better compared to similar service providers. Each o our business units develops an action
plan to address any issues that may rise with its scores on customer-satisaction surveys.
In the context o sustainability, customer satisaction provides insight into how the
organization approaches its relationship with this key stakeholder group. It can also beused in combination with other sustainability measures. Customer satisaction can
provide insights into the degree to which an organization considers the needs o
other stakeholders. Our clients tell us that we truly excel at partnering closely and
that we go to extraordinary lengths to solve problems, or just help out. Our associates
have a can-do attitude, fnding exibility beyond the contractual terms o our client
relationships. A testament to this act is our strong repeat business and customer
retention: approximately 97% o our revenues or the year ended December 31, 2011
were derived rom customers who had been using our services at the end o 2010.
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SUSTAINABILITY REPORT 2011 Cognizant Technology Solutions 19
LOOKING FORWARD
Cognizant has a very customer-ocused culture that drives us to provide solutions
to enhance our customers business success and thereby sustain very high levels o
customer satisaction and loyalty.
Looking forward to 2012: We expect to selectively increase the number o Strategic Customers, which are
deined as those with annual revenue potential o at least $5 million to $50 million
or more. As o December 31st, 2011, we had 191 Strategic Customers.
We will continue to monitor our customers satisaction with our services and seek
to maintain the high perormance reported on the customer satisaction survey.
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Cognizant Technology Solutions SUSTAINABILITY REPORT 201120
EDUCATING
FOR THE FUTURECognizant is working to rethink our role in improving education
in our communities. We are committed to helping clients address
uture challenges and opportunities, and thus many o our
sustainability activities are ocused on ensuring that our
educational system can produce the talented and motivated IT
proessionals needed to meet the demands o the 21st century.
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SUSTAINABILITY REPORT 2011 Cognizant Technology Solutions 21
Our educational eorts are guided by the realization that the Future o Work is being
transormed by a convergence o powerul orces, specifcally globalization, virtualization,
the emergence o millennials as a majority o the workorce and consumer market,
and disruptive technologies, such as cloud computing, social networks, mobile devices
and advanced analytics. These orces are prooundly reshaping markets, business
models, the way work is conducted, and the manner in which businesses innovate,
collaborate and create value.
Adapting to the Future o Work will require that businesses and organizationsand
those service frms like Cognizant who partner with themhave an ample supply o
talented, well-educated knowledge workers. Yet, by most accounts, a signifcant talent
shortage exists in many parts o the world.
We work toensure thatour educationalsystem canproduce thetalented andmotivated ITprofessionalsneeded to meetthe demands ofthe 21st century.
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MAKING THE FUTURE: STEM EDUCATION IN THE U.S.
In the U.S., it is estimated that the 30 astest growing occupations in the next decade
will require at least some background in science, technology, engineering or math
(STEM). Yet, the country is alling behind in STEM education, relative to other countries.
Consider these statistics:
U.S. high school students ranked behind 17 other industrialized nations in math and
behind 13 nations in science.1
Only 30% o U.S. high school graduates are ready or college-level work in science
and 45% were ready in math.1
It is projected that the U.S. will have a shortage o 3 million workers with college
degrees by 2018.2
1U.S. Department o Education; National Center or Education Statistics, Dec. 2010.
2Change the Equation (CTEq), March 2012.
Thereore, improving the eectiveness o educational programs, increasing access to
academic opportunity, and stimulating an interest in STEM studies in the countriesin which we operate is a chie priority o Cognizants sustainability and corporate
responsibility eorts.
Our eorts to reinvigorate a passion or STEM learning in the U.S. are embodied in
an initiative that we call Making the Future. We created this initiative to spark the interest
o young people in STEM disciplines by creating un, hands-on learning opportunities.
Making the Futuredraws inspiration rom the Maker Movement, a broad based
community that celebrates the art o designing and building really cool things, either
doing it yoursel (DIY) or with others (DIWO). In addition to inspiring young people
toward careers in science, technology, engineering and math, we seek to develop
21st century skills such as creativity, innovation, and collaboration that will create
a brighter uture or our children, preparing them to be tomorrows leaders in our
global economy.
There are four key components to our Making the Futureinitiative:
Our lagship program, the Making the FutureAter-School and Summer Program.
Financial, in-kind, and volunteer support or non-proit organizations that inspire
children through hands-on learning opportunities, such as the New York Hall
o Science, Citizen Schools and the Museum o Science, Boston, Engineering is
Elementary program.
College scholarships or students interested in pursuing STEM degrees.
Advocacy or change in the way STEM education is delivered, working with groupslike the Business Roundtable and Change the Equation, a CEO-led initiative to cultivate
widespread STEM literacy.
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Making the Future through STEM Education
AFTER-SCHOOL AND SUMMER PROGRAM. Our agship Making the Futureinitiative is the After-School and Summer
Program, designed in conjunction with the New York Hall o Science, Maker Faire and Make Magazine. Community-based
organizations, such as youth service organizations, science and childrens museums, will run the programs nationwide.
With help rom acilitators and mentors, participants will make projects o their choosing, such as electronic gadgets,
robots, sotware programs, crats, music, or technology-enhanced clothing. We expect to launch 10 Ater-School and
Summer Program locations around the U.S. during 2012 and plan to grow the program over the next fve years.
NON-PROFIT PARTNERSHIPS: Cognizant is partnering with major educational nonprofts to create and expand
programs that emphasize hands-on, project-based learning to help children. Our eorts include providing fnancial and
technological support and volunteer assistance or the ollowing organizations:
- NEW YORK HALL OF SCIENCE. We established the Cognizant Maker Space at the New York Hall o Science (NYSCI)
in March 2012. This space consists o a permanent 1,200 square-oot area located inside the NYSCI main hall, where
children o all ages can experience the joy o making things, testing them, and displaying them using a mix o abrication,
digital, and everyday tools and objects. The Cognizant Maker Space will add a new dimension to NYSCIs ability to create
engaging and innovative learning experiences or school groups, visitors, and amilies.
- CITIZEN SCHOOLS. Citizen Schools is a national nonproft organization that works with middle schools in low-income
areas to expand the learning day or students and connects scientists, engineers, and other proessionals with students.
We joined Citizen Schools eorts as a National Leadership Partner, with a substantial grant and a commitment
o talent and organizational capacity. Cognizant associates also create and teach apprenticeships, 11-week
hands-on courses or middle school students.
- ENGINEERING IS ELEMENTARY. Engineering is Elementary (EiE) , a Museum o Science, Boston, program provides
basic engineering curriculum or use by teachers in kindergarten through fth grade. Cognizant is providing EiE with
substantial fnancial support, which will help to und the creation and collection o video training resources or elementary
school teachers and support expanded and deeper implementation o the EiE curriculum. The three-year project willexpand EiEs reach to educators anywhere at any time, especially those who cannot attend ace-to-ace proessional
development workshops. The videos will be available online and in DVD ormat.
ADVOCACY THROUGH CHANGE THE EQUATION. Cognizant also is a member o Change the Equation (CTEq), a CEO-ledinitiative to cultivate STEM literacy. Change the Equation is bringing together companies like Cognizant across multiple
sectors, all o which are dedicated to preparing students or STEM-related careers as an investment in their business, the
economy and our democracy. Through innovative and eective company-led programs, Cognizant and CTEq aim to fll
the opportunity gap with capable and enthusiastic STEM-literate young people.
For more inormation on our Making the Future initiative, reer to www.cognizant.com/makingthefuture
COGNIZANT FIELDED90 VOLUNTEERS
or Citizen Schools programsthe 2nd largest volunteer groupo any company.
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A call to action mobilized over 90 Cognizant associates to become Citizen
Teachers in classrooms across the U.S. to inspire inner-city youth to succeed.
By partnering with Citizen Schools, a national non-proft that expands the learning
day or middle school students in low-income areas, associates inspire students to
learn STEM disciplines as well as other 21st century skills teaching apprenticeships
such as designing solar cars, programming robots, producing flm documentaries,
and becoming more creative thinkers in the process.
At the Bronx School o Science Inquiry and Investigation in New York, students
learned about alternative energy, electricity and magnetism, and velocity andaerodynamics while building solar cars and gearing up or the solar sprint race.
At the Martin Luther King School in North Carolina, students programmed robots
to perorm rescue missions in a simulation exercise.
Cognizant associates Joelle Quilla and Young Lee made a lasting impression on
students in Newark, New Jersey by leading a documentary flm apprenticeship
called Lights! Camera! Action! Change! The project also provided an opportunity
to address a real issue acing teens today: violence. The Newark community aced
a tragedy in 2007, when a senseless shooting took the lives o three college bound
teens in the parking lot o a local school. The flm project allowed students to explore
community issues and interview stakeholders, inspiring them to make better choices
and recognize education as the gateway to personal success.
Cognizant associates are the role models who are working with students to
develop critical thinking, collaboration, creativity and innovation. One student
was overheard saying, When learning is this much un, I want to learn more.
PARTNERING WITH CITIZEN SCHOOLS
24 Cognizant Technology Solutions SUSTAINABILITY REPORT 2011
Citizen TeachersMake a Difference
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ADDRESSING INDIAS ACADEMIC CHALLENGES
As a company with signiicant operations in India, Cognizant is well aware o the
opportunities and challenges o the countrys educational system. India has the third
largest higher education system in the world, behind only the U.S. and China, and its
graduates have ound opportunities in a dynamic IT industry that continues to uel
economic growth and lit millions out o poverty.
Yet, there are serious challenges within Indias public education system. The proportion
o children in grammar school able to read a Standard 2 level text declined rom 54%
in 2010 to 48% in 2011, and similar declines also have been ound in basic arithmetic
(source: Pratham, Annual Status of Education Report, Jan. 2012). At the college level
many employers fnd that curriculums can be outdated, requiring them to send recent
university graduates to fnishing schools. Despite government and NGO action on these
issues, much remains to be done to improve Indias educational opportunity at all levels.
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OUTREACH: CHANNELING THE POWER OF VOLUNTEERS
Cognizants Outreach program channels the enthusiasm and energy o our associates,
backed by corporate fnancial and administrative support, into volunteer activities
in the education area, many o which are ocused on India. Outreach is entirely led
by our volunteers, who are organized into Outreach Councils by business unit or
location. Each Council sets the tone o its volunteers activities, encourages associatesto participate, solicits suggestions rom employees as to schools and programs that
might beneft rom our eorts, applies or the necessary corporate support, and
monitors outcomes. In 2011, Outreach volunteers participated in over 1,700 projects.
Successul programs and best practices are shared among Councils.
>18,200ASSOCIATES VOLUNTEERED INSCHOOLS AND ORPHANAGES
in local communitiesto improve learningopportunities orunderprivilegedchildren (a 235%increase over 2010).
VOLUNTEERS
CLOCKED
PROJECTSAND EVENTS
hours (up 400% year-over-year) impacting an
estimated 265,000 lives (a 112% increase rom 2010).
associates have participated in since Outreach waslaunched in 2007, reaching out to over 400,000 children.
100K
3,000
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Outreach: Embracing the Volunteer Spirit
BE A TEACHER recruits volunteers to teach classes at neighborhood schools. Some 120 volunteers are teaching in 10
schools, reaching 1,200 students. Through eorts such as targeted coaching or students with poor test scores, rewards
or improved perormance, summer coaching and a Neuro Linguistic program, volunteers have increased pass rates by10-30% at 5 schools in India.
EDUCATE A VILLAGE is a partnership between Cognizant and AID India to set up study centers in 25 villages in Tamil
Nadu. Outreach will sponsor a village once associates raise 50% o the amount needed to run a study center or one
year (US$1,100), or 20 associates commit to volunteer or a specifc village. Some 700 associates have volunteered or
contributed to villages through this program.
DICTIONARY TRAINING is an Outreach service oering that introduces the use o dictionaries to students in a un yet
eective way. Specially trained Cognizant volunteers visit schools reerred by our associates and take sessions or students
rom Class 7 to Class 10. Children in most o these schools are rom impoverished backgrounds and these sessions are
the frst time that they have been able to use a dictionary.
STREET CHILDREN EMPOWERMENT PROGRAM volunteers visit with homeless children at 3 centers in Chennai to
take students on feld trips and lead story telling, math puzzle, and hygiene sessions. Since June 2011, volunteers have
made more than 100 visits to these centers and clocked 550 volunteer hours.
TALHUNT is an interschool cultural competition. In 2011, some 18,000 students rom 59 schools competed to showcase
their creative abilities. Winning schools receive fnancial aid to help improve their acilities.
INFRASTRUCTURE PROJECTS, such as renovating classrooms and building libraries, computer labs, science labs,
and sports acilities, have been completed at schools and other locations, through a combination o volunteer labor and
Cognizant donations. We have sponsored 146 such inrastructure projects in India in 2011.
NOTEBOOK DRIVES conducted by Outreach volunteers distributed ree notebooks to over 66,000 children in 2011
and 120,000 children in the past three years.
SOCIAL AUDIT SHOWS OUTREACH RESULTS*
* Social audit o Outreach activities in India conducted or 2010 by the Centre or Social Initiatives & Management.
o the parents creditedtheir childrensimprovedacademic performancetoOutreach volunteers.
89%o students developed aninterest in readingatera library was set up orrevamped at their school.
78% 82%o volunteers eel volunteeringhelps increase theirawarenessof social issuesanddesire tohelp society.
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A dilapidated single-room residential middle school with a leaky roo
and a single teacher who taught 120 students rom grades 18 is now
transormed. The school, located in Topslip, a wildlie sanctuary in the
Anamalai mountain range, caters to the children o a tribal society
residing in hamlets inside the Sathyamangalam orest. Volunteers o
the Wild Wings Society (WWS), a grassroots group started by SaravananChandrasekaran, a Cognizant employee and environment enthusiast,
have supported this school through their Project Green Books initiative
rom June 2011. While the projects main mission is developing more
environmental awareness among tribal communities, they made it a
priority to upgrade the educational experience o the Topslip students.
Each week, WWSs team o 10-15 volunteers plans weekend activities
or the children and logistics or volunteers visits to the school. A two
hour journey through hilly terrain and orests brings volunteers to the
school. When the volunteers arrived at the school or their frst visit, all
grades met in the same classroom, many students did not even know
which class they were studying in.
The volunteers started with Orientation programs or students and
placed them in grades based on their age. Volunteers cleaned and
renovated the school with the support o youth rom the neighboring
village and set up a childrens park. Inspired by their work, the government
has now allotted an additional sta or the school. The WWS team says
that this is just the beginninga beginning o a better uture.
PROJECT GREEN BOOKS
Project Green BooksImproves the EducationalEnvironment
28 Cognizant Technology Solutions SUSTAINABILITY REPORT 2011
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GRASSROOTS AND OTHER EDUCATION ACTIVITIES
Cognizant also provides support or Grassrootsactivities in India that are not part o
the ormal Outreach program, but are championed by individual associates. One such
program, Third Eye, produces books in Braille in non-curriculum subjects. Donationsraised by our associates have enabled nine publishers to produce some 250 titles,
bringing the joy o reading to visually challenged students. Another Grassroots program,
Green Star, uses techniques developed in our Business Process Outsourcing (BPO)
practice to track students perormance. Green Starhas led to a 17% increase in
attendance and 40% increase in homework completion over the last year.
As a global organization, we are committed to promoting educational initiatives at many
o Cognizants locations around the world. For example, in the U.K., we have joined with
other leading companies to support the Princes Trust, which develops programs to
combat youth unemployment. Our fnancial and operational support enables young
people to participate in programs that give them the skills, confdence and motivation to
move into work, education or training. In December 2011, we were one o the recipients
o the Trusts Superstars Award, given in recognition o the 17 Cognizant associates
who took part in the Wild UK Challenge, a strenuous event in which participants raise
unds or the Trust by hiking, cycling and kayaking 100 miles in three days.
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LOOKING FORWARD
2012 U.S. STEM EDUCATION GOALS
Launch 10 pilot Making the Future Ater-School and Summer Programs.
Launch a US college scholarship program or students wishing to
pursue STEM degrees.
Fund a micro-grant program to bring Engineering is Elementary
curriculum to 50 teachers.
Provide additional education-oriented volunteer opportunities
or associates.
2012 GLOBAL OUTREACH GOALS
Clock 200,000 volunteer hours.
Encourage 1 in every 5 associates to volunteer.
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As a result o our commitment to STEM education, Cognizant was invited to
participate in the second annual White House Science Fair held on February 7,
2012. Mark Greenlaw, who leads our Making the Futureprogram, represented
Cognizant at the event. For the Cognizant amily, a highlight o the White
House Science Fair was the involvement o Joey Hudy, the 14-year-old son o
Victor Hudy, a Cognizant employee. Joey attended the Fair with his parents
and his Extreme Marshmallow Cannon, which he designed to ire
marshmallows up to 175 eet using pressurized air. He demonstrated the
invention or President Obama, who took the opportunity to shoot
a marshmallow across the State Dining Room.
Joeys story demonstrates the impact o our eorts to advance STEM education
in the U.S.as we support programs to inspire young learners to pursue
science, technology, engineering, and math disciplines by creating un,
hands-on learning opportunities. In a speech ollowing the White House
Science Fair, President Obama saluted the innovative spirit embodied in the
motto on Joeys business card: Dont be Bored, Make Something!
WHITE HOUSE SCIENCE FAIR
Young InventorAims for Success
SUSTAINABILITY REPORT 2011Cognizant Technology Solutions 31
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STEWARDSHIP OF
THE ENVIRONMENTCognizant is working to rewire our operations to lessen our
environmental impact. We are committed to leading our industry
in energy conservation, waste reduction, and recycling. Taking a
responsible stance with respect to the environment is a business
imperative, and not merely a reaction to compliance requirements
or current popular interests.
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While some may deny or dispute the risk o climate change, we take a precautionary
approach as defned by Article 15 o the Rio Principles and have implemented signifcant
programs to reduce our carbon emissions. We recognize that climate change may
pose operational risk to our acilities located in coastal cities around the world.
It could also cause disruptions to our operations i severe weather caused by climate
change impacts goods and services in our supplier chain. Unchecked growth in the
consumption o resources could also lead to escalating electricity and transportation
costs or uncertainty o supply, which could also impact our business.
At the same time, concern over climate change has provided an opportunity to reassess
our energy dependence and energy productivity. We have identifed opportunities to
conserve energy through disciplined energy management practices, improved acilities
design and reengineered business processes. The result is not only enhanced energy
efciency and productivity, but also the potential or signifcant cost savings. (For ou
GRI Disclosure on our Environmental Management Approach, please reer to Appendix B.)
Consequently, we have established a greenhouse gas policy that is reducing emissions
across our global delivery network. In addition, we are working with our employees to
put into eect best practices or conserving energy and shrinking individual carbon
ootprints. Collectively, these measures ensure that we operate in an environmentally
riendly manner and drive sustainable economic growth. With more than 137,000
associates and more than 50 delivery centers worldwide, we work to better manage
our ofces environmental impact. For example, in Cognizants annual Carbon Disclosure
Project declaration, we reported a 32% per capita reduction in 2011, compared to 2008.
Concern overclimate change
has provided anopportunity toreassess ourenergy dependenceand energyproductivity.
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GO GREEN
Our commitment to achieve measurable reductions in our environmental impact is
embodied in a company-wide eort that we call Go Green. Launched in 2009,
Go Green uses sophisticated organizational change-management practices to engage
associates actively in Cognizants environmental programs.
2011 GO GREEN ACCOMPLISHMENTS*
*2011 compared to 2008.
Energy Optimization
We embarked on an energy efciency improvement project using Six Sigma and Lean techniques. The project covered
all aspects o our inrastructureofce space, utilities, desktop hardware and data centersas we identifed operational
levers to optimize energy usage and reduce waste. We ormed teams ocused on key energy consuming equipment
and ran Six Sigma Green Belt Projects or HVAC, Uninterruptable Power Supplies, Lighting and Generators. First we
ocused on operational efciency, sharing best practices across locations, tracking and reporting progress, and recognizing
the most efcient locations through a reward and recognition program. We then ocused on design efciency, measuring
total cost o ownership o equipment and fne-tuning our design requirements. Finally, we ocused on equipment
efciency by tracking key efciency metrics and building internal expertise to improve problem solving.
Through our energy optimization eorts, over the last three years we have achieved 40% reduction in per capita
energy consumption in our India acilities.
Energy Handbook
Our energy optimization eorts culminated in the publication o an Energy Handbook, which
collected all o the best practices developed across our global acilities.
The Handbook has been distributed to all o our acilities management and inrastructure teams
to serve as a ready-reerence in energy management and design.
34%32%
60%
REDUCED PER CAPITAENERGY CONSUMPTION BY
REDUCED PER CAPITACARBON EMISSIONS BY
REDUCED PAPERCONSUMPTION BY
Average Monthly Per Capita ElectricityConsumption (in kWh)
2008 2009 2010 2011
400
350
300
250
200
150
100
50
0
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We are proud that our eorts to reduce Cognizants environmental impact
have been recognized by well-respected external sources.
We ranked #16 in Newsweeks2011 Green Rankings o the 500 largest publicly
traded companies in the U.S. and #51 in their Global Green Rankings.
Cognizant earned Newsweeks#1 environmental impact score or the IT
industry in 2011, up rom #25 in 2010 and #49 in 2009, largely due to our
low per-capita emissions.
Cognizant was recognized in 2011 or Exceptional Leadership in Internal
Measures in the IT segment in the Parivartan Sustainability Leadership
Awards, organized by India Carbon Outlook, which recognizes Indian
companies that have embraced sustainability in their business operations.
Our Gol View Campus in Bangalore won the Indian Bureau o Energy
Eiciencys National Energy Conservation Award or 2011 in the Oice
Buildings category.
Cognizants oices at the Bagmane Tech Park in Bangalore received
the Energy Eiciency Award bestowed by the Karnataka Renewal
Energy Department.
Our Smart Metering Management Platorm (SMMP) won the 2011 Smart
Grid Excellence Award rom SmartGrid.TMCnet.com, a website dedicated
to technologies that enable and harness smart grids.
Cognizant was a winner in the U.S. EPAs Apps or the Environment
awards program, or CGSearch, our mobile Green IT application that enables
users across the U.S. to compare the air quality index, air pollutant levelsand energy consumption o various cities.
EXTERNAL RECOGNITION
Winning Awards for
EnvironmentalCommitment
SUSTAINABILITY REPORT 2011Cognizant Technology Solutions 35
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Grassroots Green
TREE PLANTING PROGRAM. We made a commitment to plant a tree or every associate in 2010, to celebrate reaching
the 100,000 employee mark, and we are on track to exceed that goal. In Chennai, India, we have partnered with TIST to
plant 100,000 saplings. Because trees planted under such programs oten die o neglect, this program pays subsistence
armers to care or the saplings or 10 years. Similarly, we have partnered with the New Jersey Tree Foundation in the
U.S., Carbon Managers in the U.K., and Natuurmonumenten in the Netherlands to plant trees in these geographies.
Planting 100,000 trees was an unorgettable experience. When we wentand saw the grown up trees our months later it was wonderul. I reallyenjoyed the day. - Manoj Kumar CS
EARTH DAY CAMPAIGN. The Go Green program went social with our Earth Day campaign, A billion acts o green via
Facebook and Twitter, which encouraged associates across Cognizant to share their green acts and inspire others
using social media.
GREEN QUOTIENT. We held a quiz on environmental issues or engineering graduates, in which over 700 students rom
engineering schools participated.
CARBON SCORE. Organized by one o our campus HR teams, this program gave business school students an opportunity
to address industry-specifc environmental challenges with innovative business plans.
WORLD ENVIRONMENT DAY. The day was celebrated across Cognizant with music concerts, street plays and games
themed on the environment.
BIRD HABITATS. The hundreds o trees planted on our campuses over the last three years attract a lively bird population.
We provide bird eeders and bird baths, and two o our ofces have bird watching binoculars so associates can observe
rare migratory birds.
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ENVIRONMENT MANAGEMENT SYSTEM.
We have implemented an Environment Management System, as defned by ISO 14001
standards, which allows us to identiy and control the environmental impact o our
activities; continually improve our environmental perormance; and implement a
systematic approach to setting, achieving and measuring environmental objectives
and targets. This system has been certifed at six o our acilities, our o which werecertifed in the past year.
WATER USAGE.
As a service business, we do not use water in our supply chain. Accordingly, while we
do not see signifcant opportunity or reducing water use, we do compile and study
water usage data and look or opportunities to conserve water. We have measured
consumption o water procured rom external sources or the majority o our India
operations. We chiey use water or air conditioning, personal hygiene, cleaning,
landscaping, drinking, and caeteria operations.
Based on a total consumption o about 918,876 kiloliters o utility water, the average
associate uses about 554 liters per month at the oice. Similarly, based on totalconsumption o 27,076 kiloliters o drinking water, the average associate drinks 196
liters per month at the ofce. Our operations did not aect any local water body
signifcantly. We recycled and reused over 210,509 liters o water (22% o utility
water reused).
We have piloted a series o measures in key acilities to reduce our per capita water
utilization (excluding drinking water). Initiatives include re-using treated water or
ushing, using bio-blocks or waterless urinals and re-using water rom air conditioners.
We will be setting a reduction target shortly.
REDUCING TRAVEL IMPACT.
As a global company, travel is a major part o our environmental ootprint. We have
placed a signifcant corporate emphasis on video conerencing and telepresence
acilities, using this technology to reduce travel to meetings and other business-related
sessions. To date, with environmental impact in mind, we have deployed over 1,000
telepresence and high-defnition video units, reduced our air travel and, in the process,
improved our associates work-lie balance and our collaboration with customers.
PAPERLESS OFFICES.
We have made great strides in reducing paper usage at our ofces through online
submission o expense reports, medical bills and tax documents. Our Cognizant
Academy training organization has drastically reduced paper by oering courses via
webinars and e-Learning, saving time, energy and cost spent on travel and logistics.
Paper eedback orms were replaced with email to collect training eedback eliminating
189,000 sheets o paper.
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R&D ON GREEN IT
We are conducting research and development on a number o IT applications that
can help organizations to go green. For example, CG Liveis a program that monitors
PCs and collects data rom sensors to analyze and decide on a course o action
(such as Hibernate/Sleep/Log-o). It also provides real-time energy consumption
details o PCs. Cnapis an SMS-based mobile application to hibernate/wake-up PCs,whereby users can remotely manage their PCs to save energy. Gboard, an extension
o Cnap, detects whether the user o a PC is logged o/hibernated and sends this
inormation to the server to switch o lights near the idle PC.
LOOKING FORWARD
We achieved signifcant emissions intensity reduction with relentless ocus on energy
usage. Ater addressing the demand side we are now ocusing on the supply side
where we are looking to source green energy rom a mix o wind, bio-mass and solar
projects. We are also ocused on reducing our per capita water consumption and
recycling our considerable ood waste to produce bio-ertilizers and bio-gas.
Specifcally we are working towards achieving the ollowing objectives over the next
several years:
Reduction o scope 1 & 2 per capita carbon emissions by 40% rom 2008 levels by 2015
Energy Eiciency @ 1.2 kwh/sqt/mo
Zero water discharge at all campuses
100% recycling o paper in all major oices
Recycling o ood waste in our major campuses
Sunset o ODS rerigerants
Energy Consumption Mega Joules
Direct Energy Consumption (in
Mega Joules) - 100% rom use o
nonrenewable diesel uel
97,719,156
Indirect Energy Consumption
(in Mega Joules) - 100% rom
purchase o nonrenewable
electricity
690,057,180
Total Energy Consumption (in
Mega Joules)
787,776,336
Energy saved due to conservation andefciency improvements - 13,781 MWh
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SUSTAINABILITY REPORT 2011 Cognizant Technology Solutions 39
GHG
Performance
2008 2009 2010 2011 2011-2010
Change
2011-2008
Change
SCOPE 1 Emissions 22,981 21,567 28,647 27,829 -3% 21%
SCOPE 2 Emissions 98,784 103,377 122,187 144,629 18% 46%
SCOPE 3 Emissions 35,964 27,738 46,270 64,487 39% 79%
Total GHG Emissions 157,729 152,681 197,104 236,945 20% 50%
SCOPE 1 Intensity 0.37 0.28 0.28 0.20 -26% -45%
SCOPE 2 Intensity 1.60 1.33 1.17 1.06 -13% -36%
SCOPE 3 Intensity 0.58 0.36 0.44 0.47 6% -19%
GHG Intensity 2.56 1.96 1.90 1.73 -9% -32%
Waste Quantity Hazardous Disposal Method
E-waste 5,163 PCs Yes Recycled with authorized vendors
Used oil 13,185 Liters Yes Disposed through authorized recyclers
Used bulbs 19,914 nos No Disposed through various vendors
Used batteries 5,831 nos Yes Disposed through authorized recyclers
Other waste 1,611 Kgs No Disposed through various vendors
The emissions data or 2008 to 2010 have been restated using recently published regional India grid emission actors.
Gas CH4
N2O HFC-134a 407C
Weight 3.42MT 0.21MT 1.22MT 0.52MT
Waste DataWeight o transported, imported, exported, or treated waste deemed hazardous
Emissions o ozone-depleting substances by weight NO, SO,and other signiicant air emissions by type and weight
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RESPONSIBILITY
AT WORKCognizant is working to reinvent our workplace to meet the
needs o clients and associates now and in the uture.
Helping businesses adapt to a rapidly changing technological
and competitive landscape requires ever greater numbers
o talented and highly motivated people. Thereore, our
relationships with our associates are an integral part o
Cognizants sustainability eorts.
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We ocus on attracting and retaining the best talent; building an increasingly diverse
workorce; enhancing the skills and career potential o our associates; and providing
attractive compensation, benefts and working conditions. In all geographies, Cognizant
complies with local norms, employment laws and best practices, including but not
limited to regulations that relate to minimum notice periods in relation to operational
changes. In addition, we aim to oster a culture o service, characterized by a
passionate commitment to partnering with clients and achieving exceptional results.
(For our GRI Disclosure on our Labor Management Approach, please reer to Appendix B.)
The eectiveness o our eorts to make Cognizant a great place to work and build
a career can be measured in several waysincluding our ongoing ability to attract
qualifed people, our low and declining attrition rate, and high employee satisaction
scores. We added over 33,000 employees in 2011. We believe our attrition rate stands
among the lowest in our industry: attrition or 2011 as a whole was 13%, more than 5
percentage points lower than or the corresponding period in 2010, and our attrition
rate reached a low o 10% in the 2011 ourth quarter on an annualized basis.
We also received record high scores on our most recent annual, independently
conducted employee satisaction survey. The Business Eectiveness Survey (BES)
conducted annually through Hay Management Consultants returned the bestBES score (72% avorable responses) in our history, with improvements across all
dimensions surveyed.
We focus onattracting andretaining the besttalent to helpclients adapt toand benet froma rapidlychanging businesslandscape.
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DIVERSITY INITIATIVES
The diversity o our workorce is an important area that we have targeted or ocus
and improvement. Increasing the number o women in management and senior
leadership roles globally has been an important area o emphasis. In general, the IT
industry, as with many o the STEM-oriented industries, attracts a lower percentage
o women than men.
Women represented 32% o the Companys associates overall, and 16% o management,
as o December 31, 2011. Women represented 44% o our global campus hiring last year.
WOMEN EMPOWERED.
The cornerstone o our eorts to attract, develop and retain qualifed emale employees
is a program we call Women Empowered. It is the frst o many uture employee
resource groups Cognizant plans under our overall Diversity program. This initiative
emphasizes communications and networking to provide a collaborative and supportive
environment or emale associates. Using our Cognizant 2.0 global collaboration
platorm and social media sites such as LinkedIn and Facebook, emale employees
can communicate and get to know one another by sharing career inormation and
providing resources and advice.
Level Overall
Management 16%
Associates 38%
Overall 32%
Level APAC Europe India The Americas Overall
Senior Mgmt 0.99 1.05 1.08 1.01 1.04
Middle Mgmt 1.39 0.93 1.04 1.00 1.03
Associates 1.22 1.13 1.03 0.99 1.03
Overall 1.27 1.00 1.03 1.00 1.03
% of Women by level (Dec.31, 2011)
Summary: Women constitute 32% o the total workorceo Cognizant, up 1% rom 2010. Over 80% o the women
returned rom maternity leave, considering 1 in 12women availed o the leave.
Summary: For work o similar nature, Cognizant pays equal pay to men and women o its work orce. Theratio o the basic salary o women to men in 2011 was 1. (Note: Where ratios do not equal 1, dierences areon account o variations in work experience and nature o skills)
Ratio of basic salary of men to women (Dec.31, 2011)
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2011 was a year o immense growth or Women Empowered as it began to gain traction
globally. By December 2011, Women Empowered had over 100 volunteers across
North American, India and Europe. Our volunteers are critical in the development and
execution o Women Empowereds fve main pillars o ocus: attract, retain, develop,
communicate and network. In 2011 Women Empowered hosted over 20 events
that comprised o breakasts, lunch and learns, ocus groups, webinars and
panel discussions. Volunteers within our Attract team became individual members o
Women in Technology International and were successul in hiring signifcantly more
women into our business consulting practice. Along the way we developed the C2.0
platorm and LinkedIn page to enable our emale associates around the world to
network and share inormation. We also initiated the development o a exible work
arrangement policy and identifed a select group o high-potential emale leaders toparticipate in a ormal mentoring program through Women Unlimited, Inc.
Over the next several years, we expect the initiatives described above, and others
to be added as our programs evolve and we expand the number o women in leadership
roles around the globe. In particular, Women Empowered is working on several initiatives
or 2012 including Sabbatical and Extended Personal Leave policies to oer associates
better work-lie balance, ormal mentoring programs or junior to mid-level manager
sta, and more regional based networking events. Leveraging what we have learned
through the development o Women Empowered, Cognizant will start its second
employee resource group by the end o 2012.
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Women Empowered organized a special edition o Cognizant Community or
emale clients in 2011. Community is our annual event or clients, partners and
employees, and provides an important orum or networking and discussions o
IT issues and their impact on business. In November, our Cognizant Community
or Women was held in Hartord, Conn. and brought together over 42 clients to
talk about How Women Will Shape the Future o Work. Among the highlightswas a keynote speech by Ilene Lang, President and Chie Executive Ofcer o
Catalyst, the leading nonproft membership organization dedicated to expanding
opportunities or women in business. Following Ilenes speech, we hosted an
insightul panel discussion that was moderated by Malcolm Frank, then Senior
Vice President and currently, as o February 8, 2012, Executive Vice President o
Strategy and Marketing at Cognizant. Our Panelists comprised our senior emale
clients and Cognizants Karen McLoughlin, then Senior Vice President or the
Enterprise Transormation Group. Karen has since been promoted to Chie
Financial Ofcer at Cognizant, representing a signifcant milestone or Women
Empowered and Cognizants overall Diversity mission. Because o the success o
this Cognizant Community event, Women Empowered plans to host three more
events in 2012 beginning with one in Dallas, Texas in April that will ocus on howtodays women executives are encouraging STEM education and careers or
tomorrows emale executives.
WOMEN EMPOWERED
Cognizant Communityfor Women PowersOpportunity
44 Cognizant Technology Solutions SUSTAINABILITY REPORT 2011
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TRAINING AND PROFESSIONAL DEVELOPMENT
We are committed to continuous learning, giving our associates opportunities to stay
current with leading-edge technologies and to develop communication skills so they
can perorm their roles eectively and efciently.
In addition to the ormal learning in classrooms, Cognizant Academy brings learningto our employees desktops. We use multi-modal methods, such as content-management
systems, blogging, Wikipedia, video-based training and distance education/higher
education, as well as Technology-Based Training.
Nearly 14.2 million hours o training were provided in 2011, with the average employee
receiving 116 hours o training.
The frst year at Cognizant is the most ormative period o a strong career. Our Campu
Associate Training Program (CATP) is our agship, mission critical training program
that helps recent graduates acquire the disciplines and mind-set to transition rom
college to corporate lie. In 2011, CATP was launched or Americas and Europe.
More than 100 graduates recruited rom over 14 universities across the Americas andEurope graduated rom this program. We will be extending the CATP program to the
U.K. and Middle East in 2012.
Our Life-Cycle Intervention Seriescomprises programs exclusively or associates
who step into a supervisory/managerial role or the very frst time. Role-specifc and
business-aligned, these programs equip associates to meet the highest standards o
delivery excellence and people management.
Senior executives have three dedicated learning tracks called Executive Essentials
Executive Excellenceand MPowerthat cater to over 7,000 emerging leaders. MPowe
is a complete suite o on-line resources including courses, books, videos and guest
speaker sessions covering a broad range o topical areas.
o training were provided in 2011,with the average employee receiving116 HOURS o training.
14.2NEARLY
MILLIONHOURS
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CAREER DEVELOPMENT
We provide individualized career-development tracks to empower our people to
reach their ull potentialand enable the Company and our clients to gain the
benefts o enthusiastic, motivated, and highly-skilled employees. Employees are
encouraged to succeed in a variety o challenging roles over time. We build periodic
job rotation into our employment guidelines. Internal job-posting programs inorm
associates as to opportunities available across the Company. Fast-track growth
opportunities are oered to high perormers, and opportunities to shit tracks also
are encouraged to avoid an associate being pigeon-holed in one discipline.
In addition to providing opportunities or role and lateral career changes, we actively
create promotion and leadership opportunities. As an organization growing at an
accelerated rate compared with our competition, it becomes crucial to develop and
acquire leadership talent to manage our large and growing business. Last year,
one-third o our associates moved up the career chain to take on higher responsibilities.
PERFORMANCE MANAGEMENT
All employees undergo regular perormance assessments at least once a year.
These reviews are designed to assess their perormance against goals and competencies,
which are documented in a goal-setting document and are based upon the associates
chosen career track. Our process is to provide associates with developmental eedback
both during and at the end o the year. Assessment includes a perormance score
card or senior management employees. Virtually all o our employees are covered
under this perormance management process. Perormance is directly linked to all
orms o reward and recognition, both monetary and otherwise.
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SUSTAINABILITY REPORT 2011 Cognizant Technology Solutions 47
COMPENSATION AND BENEFITS
Cognizant oers an attractive employment package that includes a highly competitive
salary and benefts package tailored to each geography, as well as additional fnancial
incentives and perormance rewards. We also reward personal achievement and
contribution, fnancially and through public recognition.
Beneit plans vary by geography, depending on local customs and regulations.
For example, beneft options or U.S. associates include medical and dental plans,
exible health care and day-care spending accounts, a 401(k) plan, employee stock
purchase plan, lie and disability insurance, a confdential employee assistance plan,
a wellness resource center, prepaid legal services, and discounts on merchandise
and services. We also have recognition programs that reward associates or activities
ranging rom excellence in technology to signifcant contributions at the team, business
unit or organizational level. Our operations in other countries have compensation and
beneft programs that are at or above local statutory requirements and are specifcally
designed to attract, retain and reward our employees.
EMPLOYEE SATISFACTION AND WORKING CONDITIONS
Cognizant strives to provide excellent working conditions or its associates across
the globe. As a knowledge-based company, the majority o our employees work in
very pleasant ofce environments. Many o our acilities have been built within the
last 10 years; three o our recently built acilities are LEED (Leadership in Energy
and Environmental Design) certifed. Additionally, we began pursuing OHSAS 18001
certifcation o our acilities in 2010 and have achieved certifcation o eight o our
largest acilities in India.
Accidents with injury cases India
Total number o injury cases 18
Total number o Lost Time cases 3
Total number o atalities None
We provideindividualizedcareer-development
tracks to empowerour people to reachtheir full potential.
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We have health and saety committees in all our large acilities that ocus on areas
such as ergonomics, transportation and the caeteria. The committees meet every
month to discuss opportunities or improvement and how to make changes to ensure
a healthier and saer workplace. Because we are a knowledge-based industry and do
not have a physical manuacturing process, injury rates in our business are extremely
low and generally all into the category o repetitive strain rom computer or keyboard
use and long sitting hours.
We track injuries in dierent systems in accordance with local requirements. We are
working to implement a global injury tracking system to enable global reporting o injuries
in the work place. In Continental Europe (CE), we are working to set up policies,
committees and a ull injury tracking processes. We expect to have completed this by
year-end 2012 in the Netherlands, Switzerland, France, Germany and the Nordic countries.
We inorm and educate our workorce on saety at the workplace and oer online
training on Occupational Health & Saety. We have a systematic risk assessment
system to identiy occupational diseases and implement control measures to mitigate
these risks.
COLLECTIVE BARGAINING
In the IT industry in general, and across our company, collective bargaining is not
a common practice, with the exception o Belgium, Sweden, and France, where we
have collective agreements in plac