Cognizant Sustainability Online

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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

[email protected]

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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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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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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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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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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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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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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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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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 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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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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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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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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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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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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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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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



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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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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



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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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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

Documents

Cognizant Sustainability Online