Sustainability Report 2012-13 About this report

Mindtree’s approach to sustainability is built on the principles Report profile of the triple bottom line: people, the planet and profit. This This report extends to all operations of Mindtree, including framework enables us to adopt an expanded spectrum global operations. The environmental performance and social of values that will lead the way to measure traditional programs cover primarily the India operations. economic parameters along with environmental and social dimensions. Sustainability report for the year 2012-13 is our The principle of materiality has been deployed throughout first public domain report based on the AA1000 framework the report. Organising the report as per topics relevant and the Global Reporting Initiative(GRI) guidelines. to different stakeholders makes it more comprehensible. As a reporting organization, the disclosure of the This report adheres to the GRI’s G3.1 guidelines. The report sustainability efforts as a valuable platform that will expand follows the ‘ten principles of the United Nations Global the reach and facilitate richer engagements with the Compact (UNGC)’ and ‘the National Voluntary Guidelines stakeholders. on Social, Environmental and Economic Responsibilities of Business (NVG-SEE)’ issued by the Ministry of Corporate Going forward it is intended to publish this report annually. Affairs, Government of India. The GRI application table is KPMG, an independent agency has verified and provided available in the annexure, at the end of the report. assurance to this report. We have achieved A+ application level as per the GRI guidelines.

Theme The theme is inspired by the possibilities that the future holds. It re-iterates the fact that how the future turns out is entirely in our hands.

2 Contents

Message from the Chairman and the CEO 05

Performance highlights of 2012-13 07

Mindtree’s approach to sustainability 11

Governance and advocacy 14

Mindtree and our stakeholders 21

Mindtree and our people 32

Mindtree and the environment 58

Mindtree and our customers 71

Mindtree and our shareholders 78

Mindtree and the community 86

Mindtree and our suppliers 94

Assurance statement 101

3 Welcome to possible

Mindtree is a global information technology solutions competitive advantage through flexible and company with revenues of USD 436 million. global delivery models, agile methodologies and expert frameworks. Our 11,591 experts engineer meaningful technology solutions to help businesses and societies flourish. Mindtree’s ability to devise solutions is equally matched by our ability to execute them. Our Mindtree’s consulting-driven approach makes differentiation stems from a unique balance of human us the ideal strategic partner to over 40 Fortune perspective and with deep strategic thinking. 500 enterprises. Our values – collaborative spirit, unrelenting Our domain expertise, technical excellence and dedication and expert thinking – help us see unique culture help businesses thrive and be possibilities where others see a full stop. future-ready. We enable our customers achieve

4 Message from the Chairman and the CEO

Sustainability has been integral part of what we do at Environment Mindtree since inception. We consider sustainability Mindtree’s ‘Green Community’ has been a passionate as a business imperative that helps our clients and advocate of change and eco-friendliness within the societies to thrive. organization. The community, championed by several volunteers, is spearheading several worthy initiatives. We It is our pleasure to present our first public domain have several metrics in place to measure our ecological sustainability report. This report is an opportunity to impact and targets to reduce our footprint across the areas review our performance financially, environmentally of energy usage, Greenhouse Gas (GHG) emissions, water and socially. usage and waste disposal.

Here are a few highlights of FY 2012-13: Community Our social commitment is driven by the Mindtree Foundation. Financial We are dedicated in the pursuit of better living for the The global economic recovery has been slow and differently-abled along with providing enhancement in the FY 2012-13 posed some serious concerns to organizations quality of primary education. in their technology investment plans. Despite this, we adopted a back-to-basics strategy and stayed significant We are confident that this report will help us take stock to our clients. This helped us deliver outstanding results and steer the organization’s sustainability journey in the and enabled our clients to win in their businesses. As a right direction. result our revenues and profits grew by 23% and 55% in INR, respectively over FY 2011-12. Welcome to possible

Leadership Subroto Bagchi Krishnakumar Natarajan Mindtree Minds are the key to our growing success. We Chairman CEO & Managing Director need able leaders to lead the globally expanding team. We have proactively taken steps in identifying, mentoring and nurturing our next-generation leaders. Successful enterprise have a strong ‘next level’ leadership and a development approach that keeps it going. We are continuously assessing and training the leadership that will help clients to trust Mindtree as an expert in chosen areas.

Brand We revealed the new Mindtree brand to transform our positioning from the best mid-sized organization to an expertise-led and culture-backed enterprise. Our new mission, values, voice and visual identity are a reflection of the new Mindtree.

5 Message from the sustainability team

We are very happy to present you Mindtree’s first public Please take the time to review our report and send us domain sustainability report. It marks the culmination your feedback. This will help us make Mindtree a of our efforts to institutionalize sustainability within sustainable workplace and play our part as a corporate Mindtree. For us, sustainability is about how people and citizen to create a better world for the future. systems endure, remain diverse and be productive. Welcome to possible We assessed our current performance with clear and measurable goals that will be continuously tracked. Chitra Byregowda The data presented in this report will be the benchmark for Head – Sustainability & Diversity us to improve further.

We approach sustainability with three key goals: 1. Enhance supplier sustainability - Suppliers are an integral part of our value chain and we collaborate with our suppliers to enhance their sustainability and to extend the reach of our efforts. 2. Improve people diversity - We focus on increasing the people diversity at Mindtree above industry average and enhance inclusion by creating more career roles for the differently-abled individuals. 3. Reduce carbon footprint – We set ambitious goals to reduce the footprint in the areas of energy, water, green house gas emissions and waste. We plan to reduce energy, water and emissions by 5%year-on-year and increase the percentage of waste recycling from 65% to 85%.

6 Performance highlights of 2012-13

Economic sustainability

Revenue: USD 436 million

Customer satisfaction score: 5.29 / 7

$ Ecological sustainability

Specific energy consumption of 201 kWh per employee per month (pepm)

Specific water consumption of 1.053 m per employee per month (pepm)

Specific emissions of 3.38 tCO2 e per employee per annum

Workplace sustainability

Number of Mindtree Minds: 11,591

Diversity figures:28% women, 31 Mindtree Minds with disabilities

Training hours: 276,365 hours at the rate of 24 hours of training per Mindtree Mind, annually

Impact on community: USD 0.439 million spent on community initiatives

7

Mindtree’s approach to sustainability Governance and advocacy

Workplace sustainability

Ecological sustainability

Sustainability framework Mindtree approach to sustainability Mindtree envisions an ecosystem where people, the planet well-being, diversity and inclusion. With an occupational and business profit can productively coexist, fulfilling health and safety management in place we encourage the social, economic and environmental requirements of and maintain a safe work environment by providing fair present and future generations. Mindtree intends to adopt working conditions to all Mindtree Minds. an expanded sustainability framework to meet this vision. Mindtree recognizes social responsibility as an integral Mindtree’s sustainability framework is designed to part of its corporate citizenship. We commit to support and promote transparency, accountability, sound nurture societies through innovative solutions environmental practices and social responsibility. to satisfy evolving needs of the society. The framework is built on three pillars: The corporate sustainability policy and targets for the Governance and advocacy coming years have been articulated to systematically address the sustainability challenges. We conduct ourselves with the highest standards of integrity and are transparent in our professional transactions Ecological sustainability and dealings that may impact the place of work. We comply with all applicable _ local, national and international laws, With a comprehensive Environmental Management regulations, codes of practice and directives and conduct System (EMS) in place, Mindtree aims to minimize the our business operations with honesty and integrity. environmental impact of our business operations by engaging Mindtree Minds as evangelists and leveraging a comprehensive EMS.

Mindtree pledges itself to be transparent about our progress on sustainability and our stated goals with all stakeholders through various reporting forums.

Workplace sustainability This includes resource conservation practices, Greenhouse Gas (GHG) emissions reduction, efficient Mindtree believes in a non-discriminatory environment energy management, water efficiency and sustainable that promotes equal employment practices, health, waste management.

11

Governance and advocacy Governance and advocacy

Sustainability permeates our value structure. Our framework promotes transparency, accountability, sound environmental practices and social responsibility. We believe ethical conduct is necessary to drive constructive and sustainable development.

Mindtree believes good corporate governance is a key driver Governance structure of sustainable corporate growth and long-term shareholder The three-tier corporate governance structure at value creation. It is about enhancing value for all our Mindtree includes: stakeholders. We are committed to adopting global best ƒƒ Shareholders appoint and authorize the Board of practices in corporate governance and disclosure. Directors (BOD) to conduct business with objectivity and ensure accountability. Ethical business conduct, integrity and commitment to ƒƒ The BOD lead the strategic management of the values, which enhance and retain stakeholders’ trust are the organization on behalf of the shareholders. It exercises hallmarks of good corporate governance. supervision through direction and controls and appoints various committees to handle specific areas of Mindtree and Mindtree Minds are guided by values: responsibilities. Collaborative Spirit, Unrelenting Dedication and ƒƒ The committees of the BOD and executive management Expert Thinking. appointed by the BOD take up specific responsibilities and day-to-day tasks to ensure that the activities of the These values are core to us and integral to every aspect of our organization run according to the strategies set by work. We adhere to the highest standard of integrity and have the BOD. a clearly articulated integrity policy. Every Mindtree Mind, irrespective of level, role and location are bound by it.

In the conduct of Mindtree’s business and our dealings, we abide by the principles of honesty, openness and doing what is right and fair.

The following are the salient features of our corporate governance philosophy: ƒƒ Act in the spirit of law and not just the letter of law ƒƒ Do what is right and not what is convenient ƒƒ Provide complete transparency on our operations ƒƒ Follow openness in our communication with all our stakeholders

14 Board of directors

Subroto Bagchi Prof. David B. Yoffie Executive Chairman Independent Director

Krishnakumar Natarajan Prof. Pankaj Chandra CEO & Managing Director Independent Director

S. Janakiraman Ramesh Ramanathan Executive Director Independent Director

Dr. Albert Hieronimus Anjan Lahiri Vice Chairman & Independent Director Executive Director*

R. Srinivasan N.S. Parthasarathy Independent Director Alternate Director to Mr. S Janakiraman

V.G. Siddhartha *resigned with effect from May 6, 2013 Non-Executive Director

Board committees

Strategic Initiatives Committee Audit Committee Krishnakumar Natarajan R. Srinivasan Chairperson Dr. Albert Hieronimus Dr. Albert Hieronimus V. G. Siddhartha V. G. Siddhartha Ramesh Ramanathan Prof. David B. Yoffie Investor Grievance Committee Administrative Committee Dr. Albert Hieronimus Krishnakumar Natarajan Chairperson Chairperson S. Janakiraman Subroto Bagchi S. Janakiraman Nomination and Corporate V. G. Siddhartha Governance Committee Dr. Albert Hieronimus Compensation Committee Chairperson Prof. David B. Yoffie Chairperson V. G. Siddhartha V. G. Siddhartha Subroto Bagchi R. Srinivasan

15 Governance committees

The Board has constituted the governance committees and assigned their terms of reference. The agenda, frequency and duration of each meeting of these committees is decided by the Chairman of each committee along with other committee members and if required, other members of the Board. Currently, there are six governance committees.

1. Audit committee 5. Strategic initiatives committee The audit committee reports to the Board and is primarily This committee handles merger and acquisition responsible for appointment and changes of the opportunities for the organization apart from other statutory auditors and internal auditors. It assesses the key strategic activities. This committee is also responsible independence and objectivity of the auditors and ensures for the approval of entry into new business areas and that they are not impaired by the nature and amount of setting up new delivery centers outside India. Investment non-audit work. in the equity or warrants of other organization, (other than routine investments in mutual funds), bank deposits or the 2. Investor grievances committee like are handled by them. This committee is responsible for investor relations and of addressing shareholders’ grievances in general. It 6. Nominations and corporate includes those related to non-receipt of dividends, governance committee interest, non-receipt of balance sheet and other matters. The Board has constituted this committee to: Identify potential candidates to become 3. Compensation committee Board members The compensation committee assists the Board Recommend nominees to various committees of in ensuring that an affordable, fair and effective the Board compensation philosophy and policies are implemented. It Recommend remuneration for non-executive approves and makes recommendations to the Board with Directors respect to the Directors’ fee, salary structure and actual Ensure that appropriate procedures are in place to compensation (inclusive of performance-based incentives assess the Board’s effectiveness and benefits) of the Executive Directors, including Develop an annual evaluation process of the Board the Chief Executive Officer. Currently, sustainability and its committees performance does not influence compensation for the Board or senior management.

4. Administrative committee This committee authorizes and manages day-to-day business transactions, which would then be ratified by the Board.

16 Avoiding conflict of interests workplace etiquette. The code of conduct bears linkage to During the reporting period 2012-13, no significant three other policies, as described herewith. transaction of material nature has been entered into by the organization with the Directors, the management or Integrity policy their relatives that might have conflicted with the potential Our shareholders appoint and authorize the Board of interests of the organization. Directors to conduct business with objectivity and ensure accountability. Each Mindtree Mind is issued a booklet on Board performance and evaluation the integrity policy. Every Mindtree Mind, irrespective of Each year, prior to the BOD evaluation, the Board specified level, role and location are bound by it. its performance, the goals for itself and the individual directors. Performance standards clearly state the Anti-bribery and anti-corruption policy expected output and behaviour. These standards help We are committed to the prevention, deterrence and eliminate or reduce non-productive behaviour, such as detection of fraud, bribery and all other corrupt and opposing the management or not contributing enough unethical business practices. It is our policy to conduct to the Board discussions. Through performance standards, our business activities with honesty, integrity and with a Director’s enthusiasm can be channelized into a the highest possible ethical standards. We vigorously constructive and / or productive outcome. enforce our business practice of not engaging in bribery or corruption across our operations. The Board needs to set high expectations with the management and hold them accountable for results. Whistleblower policy Expectation of high governance standards, contribution A robust whistleblower policy establishes mechanisms to strategy and improvement of operational efficiency that allow secure disclosures of incidents related to should be established. Sensitivity to and understanding corporate governance, related party transactions, of industry forces and competitors’ moves should be siphoning of funds, non-compliance of the law of the land, expected. The Board evaluation, among other activities, concealing legal mandatory disclosures, breach of fiduciary looks at the Board composition and skill mix. The Board responsibilities, financial irregularities, sexual harassment, also assesses dynamism between the Directors, their misuse of intellectual property, breach of integrity and responsiveness to stakeholders’ interests, as well as the any suspicious activity / event which indicates a potential committee structure and effectiveness. It also decides threat to the security of Mindtree’s assets and people. the meeting format and frequency. The whistleblower enterprise is governed by the Culture Ethics and compliance Protection Committee (CPC) that is responsible for case Mindtree’s values have been integrated into every system investigation, case closure and provision of adequate and process. To us, sustainability begins with integrity. We safeguards for whistleblowers. conduct ourselves with the highest standards of integrity and are transparent in our professional transactions and Transparency and communication dealings that may impact the place of work. Mindtree The 95:95:95 principle has a zero tolerance threshold to bribery of / by any Our open door policy encourages accessibility, openness business partner, government agency or public authority. and transparency in communication. People can reach out Business strategic planning at Mindtree takes appropriate to anyone, including the Chairman of the organization, to measures to integrate sustainability views and programs address concerns at any point in time. with our business strategy. This helps us identify, assess and manage business risks. In the conduct of Mindtree’s Mindtree believes in the principle of 95:95:95. 95% of business and our dealings, we abide by the principles of Mindtree Minds to have access to 95% communication, honesty and transparency. Mindtree has a comprehensive 95% of the time. There is a conscious attempt to practice code of conduct policy that sets broad direction for all this in everything Mindtree does. Each business head business dealings. This encompasses specific guidelines and industry group head, share their industry group on information security, third party relationships, equal growth and sales wins with their respective teams. Mails opportunity, human rights, breach in discipline and are regularly sent from the CEO’s

17 desk providing information on everything from quarterly performance to major recognitions.

Keeping scalability and geographical reach in mind, our virtual ‘All Mindtree Minds Meet’ gives Mindtree Minds across the world an opportunity to come together. The senior management team answers questions through a live webcast. The CEO conducts a quarterly ’All Mindtree Minds Meet’ physically, at various locations across the globe.

Compliance In 2012-13, Mindtree followed all the necessary guidelines as per the Indian Companies Act, 1956 and other necessary regulatory bodies. No cases of legal action for anti- competitive behavior, anti-trust and monopoly practices or violations of regulations and voluntary codes concerning marketing communications, including advertising, promotion and sponsorship, were reported.

Memberships and associations Collaboration with business sectors and networks is essential for meeting growth related challenges. Mindtree has active partnerships with industry networks such as NASSCOM and CII, in areas of business excellence, strategic reviews and social responsibility.

18 Sustainability and Enterprise Risk Management (ERM)– Mindtree’s perspective and strategy

Mindtree has implemented a comprehensive Enterprise opportunity where the identified risks could be exploited Risk Management (ERM) program. The ERM framework has in favor of the enterprise, with ensuing benefits shared been designed by reviewing the frameworks / standards with the client or partner. Additional investments might be of COSO 2004, ISO 31000: 2009 and the IRM Risk required to exploit the risk. Management Standard and customizing the best of the elements of these frameworks. 2. Market / environment risks: Identifying potential risks early and alerting business units through industry and ERM in Mindtree involves looking at practices around peer monitoring. The slowdown in the U.S. and Europe identification, assessment, treatment, monitoring and is one of the biggest risks to mid-sized IT enterprises. reporting of risks which may impact the achievement of Specific strategies, adopted to ensure that growth key business objectives. continues, partially addresses this risk.

Mindtree ERM approach is such that risk awareness gets 3. Contractual and counterparty risks: Evaluating and embedded as part of every business leader and is part of reviewing the Master Services Agreements with our every critical business process embedded as part of every customers helps identify critical risks. Once identified, business leader so that the enterprise is evaluating and these risks are discussed with the account and delivery treating risks continuously as part of its normal process. managers. Adequate treatment measures are taken to avoid or mitigate these risks. Our process ensures 1. Strategic risks: The strategic risks are identified after that adequate reviews also address critical risks in the looking at the organization and the business unit strategies. Statement of Works agreed with our customers. The mitigation strategies for these risks are then tested for effectiveness. Strategic risks are also considered an

19 4. Operational risks: Critical support functions such out of new client acquisitions. A new credit score card has as travel, immigration, information systems, talent been put in place to evaluate the credit worthiness of new acquisition, facilities and administration are assessed to customers. Any new prospect is evaluated for credit risk identify the top risks which could impact the enterprises. before we decide to work with the prospect. Operational metrics are built around the risks for reporting on a periodic basis and to keep a tab on the risks 6. Compliance and internal controls: The ERM team works identified. Operational risks also include evaluation of with functions like legal, immigration and administration risks related to climate change and sustainability. to manage risks. A compliance risk status dashboard is maintained and internal audit verifies compliance levels in 5. Financial performance risks: Assess gaps / risks in key risk areas. enterprise and business unit plans to achieve their revenue and profit goals. We also assess credit risks arising

Market & Contractual Financial Compliance Strategic Operational environment & counter performance & internal risks risks risks party risks risks control risks

identify Key Business Goals

Risk Reporting Management treatment Process

risk risk IdenTIfication AssesSment

20 Mindtree and our stakeholders

Our dream for a sustainable world is driven by awareness We collaboratively partner and engage with our and action. To achieve stable long-term growth we follow stakeholders to achieve a significant sustainable change. the triple bottom line principles of processes, practices This provides us valuable insights and and services. Our vision for the future extends beyond catalyzes continuous improvement. Mindtree’s Mindtree Minds and their families to our customers, stakeholders include our people, customers, current and partners, suppliers and vendors. Thus, it becomes a real future generations, communities and NGOs, partners and critical part of every decision. and suppliers, investors and shareholders, regulators and public policy makers and the environment. Our We strive to extend our sphere of influence beyond stakeholder based engagement models act as a value base Mindtree Minds and their families, to our customers, for inputs and feedbacks, on our sustainability programs. partners, suppliers and vendors, to make sustainability a critical aspect of decision-making. We seek to The stakeholder feedback is a crucial input to our collaborate with our stakeholders to make an impact strategy setting process and defines our future actions. which is substantial. The following table determines the stakeholder engagement mechanisms: Our approach towards our key stakeholders is driven by following the highest standards of customer orientation, Frequent ongoing engagements are used to connect with ecological protection, corporate governance and our stakeholders daily or monthly. Periodic engagements community development. We look to collaboratively that are very structured is conducted every quarterly, partner with our stakeholders such as, customers, biannually and/or annually. suppliers, sub-contractors, NGOs, government, academia and communities to imbibe the sustainability culture.

Effective stakeholder engagement is an integral component of an expertise-led organization.

21 Feedback fortnight is an annual event which happens in the month of December - January A platform to interact with management,the senior ask questions and voice opinions. (quarterly) interactionCEO with middle management and above levels (biannual) Performance appraisal Performance appraisal (Biannual) discussions Employee satisfaction survey (annual) Periodic engagement Feedback fortnightFeedback All Mindtree Minds meet session Open COMPASS - Performance Management (PMS) System MiVoice Mindtree’s social Mindtree’s _ Idea Management System(IMS) Idea through which Mindtree Minds suggestions share and make ideas on various topics and issues wallCEO – direct communication from CEO Konnect Konnect platform New changes within the are addressedorganization senior by sessions open at management An online resolution & interaction platform any for queries The Intranet houses comprehensive organization’s wide information, accessible by Mindtree Minds, across the globe. All policies, practices, programs, people systems and applications on available are PeopleHub. Ongoing engagement Ongoing Neuron Mindspace Blogs & discussion groups Senior managementSenior interactions & webcast Genie PeopleHub – Content rich intranet portal Stakeholder Employees

22 Stakeholder Ongoing engagement Periodic engagement Mindspeak A platform for promoting equity at the workplace, where Mindtree Minds can raise a dialogue on issues relating to career progression & promotion, favoritism / discrimination at the workplace & performance management. All dialogues raised are attended to by the concerned people function representative, involving the respective stakeholders and brought to closure to ensure satisfaction and redress.

Whistleblower Mindtree’s platform ensuring a ‘Fair and Equitable Workplace’ by providing an opportunity to blow a whistle against anyone who bypasses the integrity norms of the organization Open door policy Encourages accessibility, openness and transparency in communication. One can reach out to anyone, including the Chairman of the Company, to address concerns at any point in time. Skip level meetings To help sort out concerns that one might not be comfortable discussing with the immediate manager. Stakeholder Ongoing engagement Periodic engagement Project feedback through surveys (PLES) Customer satisfaction survey – CXO operational (annual) Customers Customer visits Steering committee meetings for larger customers (quarterly) Operational reviews Communities & NGOs Interaction with communities and NGOs through Mindtree Foundation such as specific donation drives and disaster relief programs Partners & suppliers Operational reviews & vendor meets Supplier / vendor evaluation (annual) Dedicated email id for investors & investor grievance committee Annual report Annual General Meeting Investors & shareholders Newsletters on Mindtree website Investor meets Analyst meets Regulators & public policy Workshops makers Panel discussions Participation in NASSCOM & CII events Steering committees Avenues to express and share

Rich communication medium Genie _ online resolution _ all Mindtree Minds meet and system for any queries and open sessions Konnect - social platform

Neuron _ online MiVoice - Employee management system for satisfaction survey sharing and contributing

Equity at workplace through Customer satisfaction Mindspeak and whistle blower survey and project level feedback survey

25 Materiality analysis 2. Mindtree performance: Based on interviews with senior management, a study of ƒƒ Good: The issue has been addressed and has no / low the external environment and reviews of CES and MiVoice residual financial, regulatory, strategic or reputational surveys, 17 material issues were identified. 9 out of 17 impact on Mindtree. material issues were ranked as the highest priority on ƒƒ Adequate: The issue has been adequately addressed two axes: and has medium residual financial, regulatory, strategic 1. Stakeholder interest: or reputational impact on Mindtree. ƒƒ Low: Stakeholders are not concerned with / impacted ƒƒ Needs improvement: The issue needs to be focused by this issue. upon because it has high financial, regulatory, strategic ƒƒ Medium: Stakeholders are moderately concerned with or reputational impact. this issue. ƒƒ High: Stakeholders are very concerned with this issue or The resultant materiality matrix is depicted below: are negatively impacted by it and demand transparency.

Mindtree performance Good Adequate Needs improvement

High ƒƒ Transparency & disclosure ƒƒ Growth ƒƒ Diversity & inclusion ƒƒ Service stewardship ƒƒ Domain expertise ƒƒ Environment stewardship ƒƒ Customer privacy & ƒƒ Employee engagement data security ƒƒ Fair business practices ƒƒ Social innovation ƒƒ Talent development Medium ƒƒ Economic environment ƒƒ Employee retention ƒƒ Vendor engagement ƒƒ Safe & healthy work ƒƒ Climate change Stakeholder interestStakeholder environment Low ƒƒ Advocacy

High priority – nine issues Medium – four issues Low priority – four issues

The table below depicts nine high priority issues relevant to each stakeholder and our short term and long term goals.

Material issue Stakeholders Long-term goal Short-term goal Growth ƒƒ Investors & shareholders Percentage of revenue To win higher revenue ƒƒ Customers contributed by top projects from existing customers to be increased customers Domain expertise ƒƒ Investors & shareholders To be recognized as experts To win higher revenue ƒƒ Customers in its chosen domains projects from existing ƒƒ Employees customers Employee engagement Employees To increase employee To strengthen engagement satisfaction and reduce and alignment of middle attrition managers to implement programs like ‘fun@work’ and ‘proud to be a Mindtree Mind’

26 Material issue Stakeholders Long-term goal Short-term goal Fair business practices ƒƒ Customers To build a culture of non- To address employee ƒƒ Employees discrimination & fairness concerns about fair pay & ƒƒ Investors & profit sharing to eliminate shareholders partiality or favoritism Diversity and inclusion Employees To encourage diversity To improve gender along several axes: Gender, ratios at middle & senior nationality, culture & management levels disabilities Talent development Employees Learning initiatives to be ƒƒ To align leadership / strategically aligned to behavioral programs to organization objectives & competency levels career path development ƒƒ To invest in domain certification programs ƒƒ To manage increased volumes while maintaining quality when it comes to role-based technical certification programs

Environmental stewardship Current & future ƒƒ To achieve overall per ƒƒ To institutionalize generations (impact on the capita energy & water resource efficiency environment) consumption reduction processes internally. ƒƒ To achieve reduction in ƒƒ To target low hanging carbon emissions fruit for energy efficiency ƒƒ To minimize carbon emissions and cost by: Reducing overall energy usage and diesel consumption Climate change Making employee commute and transport more efficient Reducing travel through video conferencing

Vendor engagement Partners & suppliers To drive sustainability as a ƒƒ To incorporate key agenda point with the sustainability supply chain partners considerations into the existing procurement manual ƒƒ To launch a vendor management portal

27 The way forward 2013-14

Value addition

Supplier code of conduct

30%

D S y disseminated with 100% i u v n gender t e p i io p il r s l b of contract agreements sit u diversification ie a y & Incl r Sustain

Footprint reduction

of waste 72% recycled 3.22 tCO 2 e per employee per annum GH n WASTE G Emissio

1.00 m3 191 kWh per employee per per employee per month (pepm) month (pepm)

WATER ENERGY

28

3 2 30% gender diversity Specific job roles identified for PWD’s Ensure the supplier code of conduct is disseminated along with 100% of the agreements.contract kWh pepm191 New building in Bhubaneswar to follow LEED Gold rating. 1.00 m per employee per month Rain Water Harvesting system (RWH) to be implemented at owned campuses. of waste72% recycled Three waste vendor audits to be conducted. Goals 2013-14 for ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ 3.22 tCO e per employee per annum ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ

2 2 3 Per capita water Per consumption 1.05 m /month Water Rain Harvesting system(RWH) in implemented Campus Bangalore Performance in 2012-13 ƒ ƒ 28% women workforce (3309) of code Supplier conduct in place kWh201 pepm 3.38 tCO e / employee / annum ƒ ƒ 65% of waste65% recycled

Reduce water consumption per capita year by 5% on year. harvesting water rain Implement ground water or recharge systems at all owned campuses. across Mindtree’s supply chain. evaluation supplier implement and Develop engagement an model of terms in process in line with Mindtree’s supplier code of conduct. Enforce the supplier code of conduct Reduce energy consumption per capita by 5% year on year by the implementation of energy efficiencymeasures. Ensure all new buildings follow at minimum, LEED Gold standards of construction. Reduce GHG emissions (Scope per 1 + 2 3) capita year by 5% on year. Increase gender diversity in (women) by 3% totality by 2014-15. Identify job roles suitable for individuals with different forms of disabilities. Increase percentage of waste recycled from 65% by 2014-15. to 85% Targets ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ Where we see ourselves in the future years

Area

Water Supplier sustainability Energy Greenhouse Gas Emissions (GHG) Diversity & inclusion Waste

Value addition Value Footprint reduction Footprint Where we are now.

29

Mindtree and our people ‘To be successful, an To be successful, an organization needs to be organization needs to greater than the sum of its parts. This is achievable only through a workforce of highly ambitious and be greater than the enthusiastic people. We try our best to inculcate sum of its parts. This this through our people processes. is achievable only There is a reason we call our people as Mindtree through a workforce of Minds and our human resource function as People highly ambitious and Function. Just as a beehive is nothing without the enthusiastic people. We collective effort of the thousands of hardworking try our best to inculcate bees, likewise Mindtree Minds are the synthesis of thousands of energized people. To be successful, this through our people an organization needs to be greater than the sum processes.’ of its parts. This is achievable only through highly ambitious and enthusiastic people.

We try our best to inculcate this through our people processes. From training programs that span the breadth of a Mindtree Mind’s career path to engagement activities that enthuse them, we make sure it happens. That being said we do not rest on our laurels. In the spirit of continuous improvement we have a sustainability goal of diversity and inclusion. We have concrete targets to improve gender diversity. We also identify job roles for differently abled people. This creates an environment of acceptance and well-being that will further encourage our people to give their best.

Welcome to possible

Ravi Shankar Executive Vice President Chief People Officer Workplace sustainability

At Mindtree we recognize every individual and refer to our recognized standards. They are prime factors in building a fair people as ‘Mindtree Minds’. Recognizing Mindtree Minds and free workplace. as people and not merely as resources is our first step towards building a culture that advocates appreciation and Fair work practices recognition. At Mindtree, the Human Resource team is known Mindtree strongly believes in fair work practices, our as ‘People Function’, as our people are our key strength. efforts in this area align themselves to those stated in the human rights section of this report. Our initiatives include: Mindtree believes in the power of its people. This belief is ƒƒ An open session by the CEO conducted twice a year incorporated by our strategic drivers that shape the people, ƒƒ A direct communication wall known as KK’s Wall, where practices and processes. Mindtree’s values create a global people can post questions for the CEO that is visible foundation for context drivers such as engagement, learning to everyone and empowerment, which are led by the People Function ƒƒ Communication: Regular communication on a series of throughout an people’s life cycle _ from candidate internal job openings, coaching and instrument based selection to the exit interview. sessions that explain the need for transparency

The practices at Mindtree create a culture of openness We ensure equity and fairness at the workplace through and fairness. Our practices in performance management, MindSpeak, an issue redressal forum, with regard to compensation models, diversity and inclusion, learning fairness in performance, career progressions, promotions and development, health and wellbeing, embrace globally and so forth.

Talent acquisition

Separation & alumni Induction

People life-cycle Retention Training

People engagement

33 Talent acquisition its challenges. Through this, they also imbibe qualities Mindtree’s aspirations are driven by the quality of people like dedication, commitment, sincerity and timeliness as hired. A good talent mix is acquired by sourcing from demonstrated by the administrative staff. institutes of repute and from the industry (lateral hires). The recruitment process follows well-defined hiring Induction – Mindtree Minds guidelines across all roles at Mindtree and includes Buddy program: Our talent acquisition team assigns a technical and cultural evaluation. buddy to every shortlisted candidate. The buddy connects with the candidate regularly till the latter joins, through Mindtree believes that, values drive behavior and behavior phone, emails, one-on-one meetings to answer queries drives results. The candidate selection criteria are defined related to the organization and the role of the candidate. as per the role requirement. The attributes of an Mindtree Mind’s role under the competency mapping model are core Orchard - campus induction program: Orchard goes far skills, such as technical / functional, domain, behavioral beyond skill building for Campus Minds. Orchard aims to and organization skills. make a Campus Mind better skilled, differentiated and emotionally attached to the organization. This is a 12-14 Recruitment sources are people referrals, recruitment weeks program and aims to transform a Campus Mind into portals and strategic vendors. Mindtree now has an a Mindtree Mind. increased presence across social networks, such as Facebook, Twitter and LinkedIn, to connect with potential Mindtree has been inducting Campus Minds since 2001 Mindtree Minds. Campus hiring remains a priority, with and has moved away from a faculty-centric model to a engineers and graduates contributing to 30% of learner-led model. This enables a Campus Mind to imbibe annual hires. qualities of collaboration, teamwork, self-dependence and responsibility at an individual, grass roots-level. While this Talent acquisition practices model is focused on honing technical skills, our behavioral Talent Connect is a people referral portal for Mindtree skills enhancement program, ‘COLORS’ focuses on the Minds to refer friends and family into the Mindtree family. personal development of a Campus Mind. All open roles can be viewed and referrals tracked by the referring Mindtree Mind. Arboretum: The vision of Arboretum is to drive scalable processes for effective assimilation of lateral hires while Campus Minds (sourced from colleges) bring technical retaining the human touch. knowledge, positive energy and a fresh perspective to the organization. They also keep the Mindtree culture young Arboretum is aimed to assimilate laterally hired Mindtree and vibrant. Minds into the Mindtree culture, before they are 1. Mindtree recruits Campus Minds by assessing their assigned to a project. This is done through self-learning potential and skill readiness so that they can create and opportunities on behavioral and leadership skills. sustain long careers in the IT Industry. 2. Mindtree engages with Campus Minds through various Arboretum is involved in all stages of assimilation, from the channels including social media platforms such as time of selection to project allocation. Facebook. Mindtree’s pre-joining engagement program consists of elements related to technical learning, An intensive two-day assimilation program is an organization connect and career appreciation. introduction to Mindtree systems and processes. Arboretum also facilitates meetings between new Shadowing is a Culture and Competence (C2) team Mindtree Minds and the senior management. This is a great initiative for Campus Minds. They spend a full day with the opportunity for new Mindtree Minds to get to know leaders support staff from various administrative functions such and understand their vision, motivation and likewise. as pantry, housekeeping, security, gardening, facilities and reception, to understand the nature of the work and

34 Training – nurturing competence The key focus in 2012-13 has been to build and develop The Culture and Competence initiative (C2) domain expertise. This will help us partner with our Learning and development at Mindtree is a strategic customers in their business transformation initiatives. priority that is part of our Culture and Competence (C2) The C2 team develops competence through certifications framework. The C2 initiative is conceptualized with and training programs. During 2012-13, Mindtree Minds the objective of facilitating learning and development across levels benefited from over 1470 programs. Our within the organization. Learning plans are structured to certifications are rigorous and cover aspects related to cater to a variety of learning opportunities through diverse one’s role. They impart essential technology, domain, channels that ensure a natural learning channel. The leadership and behavioral skills that extend over an foundation of the learning culture in Mindtree is built with individual’s career map. For engineers with zero to four the current realities in mind. years of experience, we offer a domain knowledge training program called Archers. Furthermore, an emerging leaders program has been developed to build leaders for current and future roles.

Assignments e-learning, individuals video & URLs groups

Learner

Experiential learning, projects Coaching & unusual sources

Discussions & Books & connect Handouts

Assessments Classroom talks

35 Current realities are the foundation for Mindtree’s learning culture. Five learning disciplines have been created to impact Mindtree business goals:

Management Teaming & Need of Core skills skill relationship Innovation balance

An assortment of training methods are used, keeping in mind the lack of time, role expectations and business needs. Many of the learning objectives are met using multiple methods.

1. Expert-led learning: classroom, workshops, 4. Learn by sharing: communities, forums and tests and certification conferences, learn by teaching and team learning 2. Mentored learning: stand-alone or used in 5. Self-learning: books, online and conferences conjunction with other forms of learning 6. Learning from unusual sources 3. Technology-aided learning: e-learning, learning online or with a remote tutor

36 Summary of learning and certifications have a blended learning approach, development programs combining the best of traditional and contemporary learning concepts and leverage platforms provided by the Certification programs innovative learning management system. Certification programs extend over an individual’s career roadmap and Mindtree has its own internal certifications for building impart essential technology, domain and leadership skills. competence. These are rigorous in scope and cover Processes and tools required to perform these roles with aspects directly related to Mindtree Minds role. Most excellence are also embedded in this program.

Technical certification Project Manager Business Analyst Technical Leader

Mindtree certified Mindtree certified Mindtree certified Project Manager Business Analyst Technical Leader

Senior Software Engineer Software Engineer

Mindtree certified Software Engineer Mindtree Certified Engineer

Soft skills certification Senior leaders Mid-level leaders First time leaders

iLead vLead nuLead

Training data for the year 2012-13 Category / level / Average hours of training per year per Number of hours of training per category grade Mindtree Mind Male Female Total Male Female Total Associates 183,690 70,031 253,721 29.17 24.86 27.84

Middle management 19,483 2,446 21,930 13.21 11.93 13.05 Senior management 353 8 361 3.76 1.60 3.65 Top management 5 5 0.26 0.25 Subcontractors 293 56 348 0.68 0.33 0.58 Total 203,824 72,541 276,365 24.50 22.70 24.00

Percentage of Permanent : 76% Mindtree Minds Contract : 11% who received skills Lady Minds : 80% training People with disability : 81%

37 Pillars program Mindtree’s Pillars program aims to nurture and retain star The theme of the program motivates high achievers. The performers and build a leadership pipeline, which can following programs are slated to be launched: be showcased to our customers. Mindtree Minds aspire ƒƒ Growth and development, a sense of progress – to be a part of this elite club. To be considered for this career progression program, a Mindtree Mind must consecutively achieve ƒƒ Recognition – being valued and recognized high performance ratings in appraisals. Once the annual ƒƒ Organization connect – value alignment and a sense of performance cycle is complete, a formal invitation is being together in the journey extended to invite eligible members to be a part of this club. Membership gets renewed every year. While new members are added, old members drop out depending on their eligibility.

Certifications and assignments ƒƒ Company sponsored certifications Growth and development, a ƒƒ Delivery task group, PF and C2 working on the certifications and tie-up with sense of progress the vendors ƒƒ Continuous learning ƒƒ Career enrichment Experiential learning ƒƒ Empowerment ƒƒ Quarterly sessions with successful leaders (internal and external) ƒƒ Shadowing the CXO ƒƒ Special view on Internal Job Portal (IJP)

Being valued and recognized Social recognition ƒƒ Public recognition (respect ƒƒ Thanksgiving day for the family & appreciation) ƒƒ Recognition on various public forums – corporate social media ƒƒ Personalized rewards ƒƒ Feeling heard (platforms Organizational recognition where they share their ƒƒ Real estate on PeopleHub & Konnect views / ideas)

Organization connect Mentoring ƒƒ Sense of creating the story ƒƒ Pillars are mentored by senior leaders in the organization to groom them as of success together future leaders ƒƒ Pride of working in a high ƒƒ Leadership connect performing environment ƒƒ Platforms such as blogs, discussion forums between the leadership team and Mindtree Pillars team

38 The Emerging Leaders Program (ELP) People engagement This is a holistic engagement and leadership development Mindtree’s culture consists of a foundation of leadership, experience targeted at emerging leaders, keeping their vision, values, effective communication, strategic dynamic needs in mind. The program is an umbrella plans and people policies that are focused on Mindtree initiative with two objectives: Minds. We believe that commitment, cooperation and ƒƒ Enabling continuous engagement with responsibility are the foundations of engagement. One emerging leaders that provides an empowering platform that connects ƒƒ Creating value for the target audience through specific Mindtree Minds with different levels of the organization. and periodic interventions Drivers such as communication, performance clarity The awareness sessions were initiated in March. The ELP and feedback, organization culture, rewards and has three segments: recognition, relationships with managers and peers, Connect: This enables multiple points of interaction with career development opportunities and knowledge Mindtree leaders, with an emphasis on interactive and of the organization goals and vision are some of the experiential learning. It includes the ‘Leader Talk Series’, factors that facilitate Mindtree’s people with external leaders addressing the emerging leaders. engagement practices. Reverse Learning / Avant Garde is a program focused on innovation for our emerging leaders. This program is led Mindtree’s engagement forums such as MiVoice, by an external innovation coach and provides Mindspace, Fundo Club, Shadowing and mentoring opportunities for our emerging leaders to display their programs, Emerging Leaders Programs and informal innovative capabilities. engagement programs such as Konnect act as information sharing and interactive platforms. They facilitate a Careers: This focuses on an emerging leader’s need for regular channel of engagement at various levels of the career development. Career-scape provides a landscape organisation. We participate in the ‘Great Places’ to work of careers at Mindtree. ‘Managers as Coaches’, an exclusive survey to externally validate our processes. program prepares emerging leaders to hold effective career conversations. One noteworthy source of Mindtree Minds feedback and opinion, globally, is the MiVoice survey. This survey is a Learning: E-learning is incorporated to suit individual key input to our materiality matrix. MiVoice evaluates pace and time. Open learning programs focus on the aspects such as great workplace relationships, differences personal branding of an emerging leader. Specific in perception across dimensions and demographics, programs on cross-culture and high end conversations understanding people experiences, effectiveness of are in the pipeline. people practices and connects and disconnects between people practices and perception. Transformational Leadership is yet another unique program, with a graded approach to self, team, The Fun@Work charter brings lighter moments to organization, business and social transformation. We the work place by establishing fun events under have two programs, one of six months and the other, one global umbrella. Our rewards and recognition charter four months. The emphasis here is on self-awareness. enables us to encourage a spirit of gratitude and build a This program blends classroom, experiential and action- culture of rewards for performance. This is an important oriented learning methods, with a focus on workplace exercise in both engagement and retention. We have application of acquired skills. The learning principles several programs to recognize great efforts as well as a for this program are aligned to the four attributes of a range of awards for exceptional work performance. Mindtree leader: change, mental, results and people.

39 The table below highlights various forms of people engagement.

Ongoing engagement People Hub – Content rich intranet The Mindtree intranet houses comprehensive organization’s wide information, portal accessible by Mindtree Minds across the globe. All policies, practices, programs, people systems and applications are available on People Hub. Genie An online resolution and interaction platform for any queries. It not only front- ends all functional related communication but also serves as a handy query handling mechanism for Mindtree Minds. Senior management interactions, town New changes within the organization are addressed at town halls by the halls & webcast senior management Blogs & discussion groups Konnect _ Mindtree’s social platform Neuron Neuron is an idea management system where ideas and suggestions solicited from Mindtree Minds reside. These ideas are then nurtured by inputs form fellow Mindtree Minds through brainstorming. Once the feasibility of an idea is defined and analyzed, the idea is taken to the design phase, followed by implementation. Mindspace CEO wall – direct communication from the CEO Mindspeak A platform for promoting equity at the workplace, where Mindtree Minds can raise a dialogue on issues relating to career progression and promotion, favoritism / discrimination at the workplace, performance management. All dialogues raised are attended to by the concerned People Function representative, involving the respective stakeholders. They are then brought to closure to ensure satisfaction and redress. Whistleblower Mindtree’s platform ensures a fair and equitable workplace providing an opportunity to blow the whistle against anyone who bypasses the integrity norms of the organization. Open door policy This encourages accessibility, openness and transparency in communication. One can reach out to anyone, including the Chairman of the organization, to address concerns at any point in time.

Periodic engagement COMPASS - Performance Management Performance appraisal discussions (biannual) System (PMS) All minds meet A platform to interact with the senior management, ask questions and voice opinions (quarterly) Open session CEO interaction with middle management and above (biannual)

40 Feedback mechanism Mindtree believes in a holistic approach towards KM. It’s There are three governance mechanisms to ensure that an emergent phenomenon where people are naturally Mindtree Minds get enough opportunities to discuss motivated to share, learn and where change is enabled not concerns related to their projects and people. forced. Our organization culture and environment largely supports this phenomenon. 1. Weekly Status Review (WSR) meetings: The primary focus of this meeting is to review project deliverables and KM processes and systems at Mindtree influences the understand the risks and issues faced by the team. This organization in enabling its offshore delivery teams meeting is between team members and their respective achieve better quality, higher productivity, innovative reporting manager. solutions, faster response times and shorter learning curves which in turn results in higher customer and people 2. Monthly Project Management Review(PMR) meetings: satisfaction. This review meeting is anchored by the project manager. It involves the delivery manager and the respective KM’s charter is carefully structured to continuously program team. Every month, a planned project review nurture and build upon the human capital, intellectual meeting is organized for team members to talk to capital and relational capital, which holds the key to their account managers or group managers and escalate our knowledge retention strategy. Aptly KMs charter issues pertaining to the project and people. consists of the following three broad areas: 1. Kernel 3. Monthly Project Performance Review (PPR) meetings: 2. Communities This meeting is convened by the delivery head of the 3. Value add and innovation Industry Group (IG), to discuss people issues and project health across the entire IG. Similarly, ‘post-harvest Knowledge centric project execution meetings’ is another forum for people to discuss their We thoroughly understand that knowledge is core to concerns. It happens at the end of projects. business in an IT services industry, hence it becomes very much necessary for us to engage closely with offshore

In addition to the organization processes explained above, delivery teams to mitigate their KM pain points which there are practices that capture issues at a micro project include but are not limited to reducing dependency on level under these surveys: key people, faster onboarding of new resources, optimizing 1. Project Level Satisfaction Surveys (PLSS): It is intended knowledge processes, knowledge retention in event to assess the health of the projects and the comfort level of attrition, addressing inter track dependencies in large of the team members. multi-track engagements and so on. 2. Skip Level meetings: It caters to and addresses team dynamics issues. Issues with managers or expectation The key purpose of the initiative is to enhance both inequalities are also discussed. productivity and innovation in project teams and we have 3. Feedback fortnight: Feedback fortnight is an annual seen very positive results. Knowledge centric project event which happens in the months of December execution has already established itself as a differentiator and January. in project execution in Mindtree. Our delivery teams have 4. MiVoice: An annual people perception survey is witnessed how collaboration through a set of knowledge conducted in association with the ‘Great Places to practices and effective use of collaboration platforms has Work’ institute. impacted project-level performance.

Knowledge Management (KM) and innovation Communities Knowledge management in Mindtree is a world-renowned Mindtree communities provide an informal and non- practice that has won many accolades from different hierarchical structure to groom and nurture Mindtree industry quarters. We take immense pride in being part Minds. In communities, groups of like-minded individuals of a Knowledge ecosystem that thrives within the gather to share their experience with others, hear organization. Our KM mission is to establish systems, alternative viewpoints, help minds find solutions to processes and culture that helps us continuously build our problems, test out their ideas / screen them, further build Intellectual Capital. on their own capabilities, bond and build relationships

41 and innovate and create knowledge. information systems team constantly work towards what There are over 50+ active communities constantly we call a ‘social experiment’. An experiment targeted at working on diverse knowledge areas ranging from creating a whole new social experience around our KM building depth in domain, to achieving technical maturity, efforts. Our organization wide collaboration platform to building capability and even in some cases building ‘Konnect’ has won accolades from different industry thought leadership in a core area. An average of three quarters and has been specially recognized and promoted events per day translating to over 60 events a month is by none other than our technology partner Microsoft driven by these bodies. That all these events are driven corporation. Another platform worth mentioning here voluntarily by community members indicate the vibrancy is ‘Project Space’ which is tailored specifically for the of community movement. Proactive and energetic people collaboration needs of delivery teams in Off-shore who form the fabric of this community movement are Development Centre (ODC). With its rich feature set and another facet of the thriving knowledge ecosystem in brilliant user experience we are able to create the ‘pull’ Mindtree. As you are reading this our communities are that is expected out of a delivery collaboration platform. expanding their envelope and taking this phenomenon Presently there are around 1500+ projects using this to the next level with externalization and reaching out to platform for their collaboration needs. the larger communities out there in business world. Just another step in our endeavor towards ensuring success to We feel that even our customers form an integral part of our customers by serving them with the best of IT world. our knowledge ecosystem in true sense of collaboration in business. Hence we have provisioned special access Innovation and value add to our customers into these platforms, where they can Mindtree value add program is designed to be one experience the social culture of Mindtree. the key differentiators to deliver ‘Open Innovation’ and accelerate ‘Internal Collaboration’ within teams Osmosis to address new generation of business challenges for Osmosis is a month long event that celebrates Mindtree’s customers. Mindtree value add framework is an achievements and innovations in technology through inventive model that encompasses systematic innovation collaborative discussions, knowledge exchange and techniques and problem definition / solving approaches contests. This event invites people across levels to support to help facilitate ideas resulting into perceptible outcomes various forms of creative expression and celebrate the for customers. ‘geeks and nerds’ at Mindtree.

Benefits perceived by the customers Every year Osmosis is different, but 2013 truly held Since its inception, the Mindtree value add program has something unique. This month-long event enthused, been assisting customers perceive value by enabling engaged and brought out the expert within us. During the collaborative innovation for delivering the following: month, Mindtree Minds were introduced to a variety of ƒƒ Helping customer envision tangible outcome via POC, Osmosis tracks. Some were familiar, while others were new demo, working prototype model before resulting into like Techathlon, Architectalk and ExpertSpeak – interesting actual solutions. events that took the event a notch higher. The tracks ƒƒ Improving customer’s go-to-market time by celebrated technology to address business issues. the six aligning value add ideas to customer’s goals and diverse tracks designed in synergy with the chosen theme business priorities. are TechWorks, Techathlon, Knowledge Safari, Architectalk ƒƒ Mitigating risk in deploying futuristic solutions on and PM Conference. emerging and disruptive technologies. ƒƒ Demonstrating Mindtree’s collaborative energies by ExpertSpeak engaging with internal communities and external ‘Reach’ was an important factor we kept on mind while ecosystem to co-Innovate with and for the customer. designing Osmosis 2013. We wanted the event to touch Mindtree Minds globally, across multiple geographies. Social collaboration platforms A live streaming of Architectalk, PM Conference and ExpertSpeak was enabled. The entire Techathlon and Supporting all our KM engagements is a very Techworks was run through virtual channels which helped interesting array of collaboration platforms. Our team us connect with our global colleagues. We also established of KM practitioners and thought leaders together with

42 our presence through social media channels like Facebook units brought together to provide a common platform for and Internet. The icing on the cake was when Osmosis was the redressal and retention of Mindtree Minds. Members broadcast ‘Live on Air’ (radio) on the final day. are senior managers who are viewed and widely accepted as trusted leaders of the organization and they operate on With Osmosis, we showed the world that we are truly an a rotation basis. People who have a positive influence over expertise led organization—in deed and in spirit. Mindtree Minds and who possess excellent negotiation Retention practices capabilities have been carefully handpicked for this. Mindtree has a robust retention council that supports Members engage in a meaningful dialogue with the business by improving retention levels. The council resigned Mindtree Mind, using their negotiation skills and fosters an open and reliable culture that creates models of appropriate intervention to retain them. They also work best retention practices and strategies. in collaboration with the industry group / practice heads and People Function to work out possible short-term The retention council was formed as a neutral and trusted and long-term retention alternatives. The council meets body within the organization, to support the business on a biweekly basis to assess trends and formulate best by increasing retention levels. It covers all voluntary practices. The council has driven a decreasing pattern in resignation cases up to middle management level. The our attrition levels in comparison to previous years. Our council helps foster an open, reliable culture and creates attrition levels reduced from 24% to 18% . We hope to models of best retention practices and strategies. reduce this further next year. We have also revamped our It comprises esteemed members from various business rewards and recognition system to motivateour people.

People demographics

Total workforce by employment type, employment contract and region, broken down by gender 2012-13 2011-12 2010-11 Categorization Male Female Total Male Female Total Male Female Total By people category Associates 6,587 3,083 9,670 6,358 2,884 9,242 5,389 2,379 7,768 Middle management 1,581 219 1,800 1,454 186 1,640 1,478 183 1,661 Senior management 94 6 108 93 5 98 91 4 95 Top management 20 1 13 19 1 20 22 1 23 By people type Permanent 8,282 3,309 11,591 7,924 3,076 11,000 6,980 2,567 9,547 Contract 543 180 723 486 158 644 480 144 624 By region India 7,140 3,174 10,314 6,973 2,976 9,949 6,156 2,471 8,627 UK 126 20 146 111 22 133 87 14 101 US 767 86 853 634 57 691 571 62 633 Others 249 29 278 206 21 227 166 20 186 By age <30 4,565 2,481 7,046 4,592 2,375 6,967 3,811 1,944 5,755 30-50 3,660 824 4,484 3,290 698 3,988 3,134 617 3,751 >50 57 4 61 42 3 45 35 6 41 Total 8,282 3,309 11,591 7,924 3,076 11,000 6,980 2,567 9,547

Note: The people demographics by region and age only include permanent Mindtree Minds.

43 Local hiring Expansion and overseas growth makes it important to issue, while providing local skill sets and seamless maintain diversity in nationality. Mindtree aims to generate communication to our customers. All this helps in winning employment wherever it operates. Setting up the local more contracts. delivery centre in Florida helped solve the visa shortage

Mindtree’s sales force are locals and 77% of the overseas senior management hires are also locals.

Region Number of senior and top management who are locally hired* Local hires Total number Percentage of locals India 83 83 100% UK 0 5 0% USA 10 29 34% Others 0 4 0% Total 93 121 77%

*Figures are not just newly hired Mindtree Minds.

Total number of new hires leaving the organization in the reporting period by category, region, age and gender 2012-13 2011-12 2010-11 Categorization Male Female Total Male Female Total Male Female Total By people category Associates 128 49 177 309 105 414 411 132 543 Middle management 3 10 13 13 1 14 29 2 31 Senior management 0 0 0 0 0 0 7 0 7 Top management 0 0 0 0 0 0 1 0 1 By region India 122 48 170 319 103 422 439 131 570 UK 1 0 1 3 3 6 0 1 1 US 14 4 18 0 0 0 6 2 8 Others 1 0 1 0 0 0 3 2 5 By age <30 85 41 126 244 88 332 308 118 426 30-50 53 9 62 78 18 96 138 16 154 >50 0 2 2 0 0 0 2 0 2 Total 138 52 190 322 106 428 448 134 582

44 Total attrition by category, region, age and gender 2012-13 2011-12 2010-11 Categorisation Male Female Total Male Female Total Male Female Total By people category Associates 1,265 535 1,800 1,613 622 2,235 2,068 711 2,779 Middle management 247 25 272 330 41 371 225 25 250 Senior management 21 1 22 23 0 23 24 1 25 Top management 1 0 1 7 0 7 4 0 4 By region India 1,423 534 1,957 1,867 646 2,513 2,242 720 2,962 UK 6 5 11 8 0 8 4 2 6 US 78 17 95 79 15 94 53 12 65 Others 27 5 32 19 2 21 22 3 25 By age <30 733 369 1,102 984 453 1,437 1,316 531 1,847 30-50 788 188 976 974 206 1,180 996 204 1,200 >50 13 4 17 15 4 19 9 2 11 Total 1,534 561 2,095 1,973 663 2,636 2,321 737 3,058

Mindtree Mind compensation and benefits Mindtree Minds. In the case of the Chairman, Managing The Mindtree remuneration policy is driven by the Director and other Executive Director, any changes in success and performance of individual Mindtree Minds compensation as well as the variable compensation that is and the organization. Through the compensation program, paid is as approved by the Board. our organization attempts to attract, retain, develop and motivate a high performance workforce. We offer The people satisfaction survey highlighted a few of a compensation mix of fixed pay, benefits and the concerns of Mindtree Minds, such as fairness and performance-based variable pay. Individual performance equity to performance, as well as related compensation. pay is determined by the business performance of the The performance management system, COMPASS, organization compensation at all levels is a combination addresses one part of this concern and an evolved of base salary, allowances, retiral and other benefits, compensation model addresses the other. perquisites and performance based variable. The performance based variable is determined by performance The Mindtree compensation philosophy is driven by parameters which are relevant to the role of the Mindtree three principles: Mind. The annual compensation revision is decided 1. Pay for performance based on market benchmarking and performance level of 2. Pay competitively 3. Inclusive meritocracy

45 Grievance resolution or violation of the integrity policy, breach of security, A fair and equitable workplace is a prerequisite to ensure harassment and more, to the management, irrespective high people satisfaction and engagement. of the designation of the violator. It also ensures that adequate defense is provided to whistleblowers against To build a workplace that does not tolerate favoritism, any victimization or vindictive practices like retaliation, politics and any form of harassment, Mindtree has threat or any adverse (direct or indirect) action on their constituted several grievance redressal mechanisms – key employment or growth in the organization. The resolution amongst them the whistleblower policy and Mindspeak. of concerns related to equity vs. fairness is addressed through a structured system known as MindSpeak. This The whistleblower policy empowers every Mindtree Mind system provides a platform to Mindtree Minds to voice to report unethical behavior, actual or suspected fraud their concerns.

Culture protection committee (CPC): committee periodically reports to the chairman of the The CPC governs the whistleblower of the enterprise. It audit committee and the executive chairman of Mindtree. is responsible for case investigation, case closure and provision of adequate safeguards for whistleblowers. The

The table below represents the type of cases reported and closed in 2012-13 with specific action taken:

Type of complaints Action taken Corporate governance 2 Separation 1 Financial irregularities Warning Sexual harassment 1 Counseling 2 Misuse of intellectual property Process / policy changes Breach of integrity 1 Minor issue / clarification 1 Threat to security Others

Diversity and inclusion Being a global organization, talent and workforce diversity encourages employment as well as a stable career path. is critical to business success. As an equal opportunity Our inclusion framework is driven by our reasonable employer, Mindtree works with non-discriminatory accommodation policy. In addition to this, we support practices that respect and value the workforce and our accessible infrastructure at all our facilities and provide business partners. Embracing a diverse and inclusive accessible technology and information systems. We look workforce gives the organization an innovative, creative, to identify job roles suitable to persons with varied forms competitive and more productive edge. This focus has of disabilities to facilitate the individual’s career stability gathered significant momentum in 2012-13, owing to and growth. Our overseas growth and expansion provides the development of the charter which is focusing on us with a platform to generate local employment and four pillars called ‘EDGES’, which represents Ethnicity, capitalize on a talent pool of diverse nationals. Disability, GEnder and Sexual orientation. The integrity policy clearly spells out that no individual shall be discriminated against on the grounds of race, gender, nationality, disability or sexual orientation. Mindtree is an equal opportunity employer and ensures that the gender pay ratio is 1:1.

Mindtree has a comprehensive framework designed to aid inclusion. We believe that an inclusive environment

46 Ethnicity / People with Sexual Nationality disabilities Gender orientation

EDGES _ the diversity charter 1. Benefits for people with disabilities: This includes Our Mindtree Minds represent a talented and diverse monetary benefits such as special medical relief loans workforce which doesn’t accept discrimination of any kind. as well as fringe benefits (transport, motorized wheel Our focus is on four pillars called EDGES through which we chairs and so on). aim at fostering a culture that embraces differences and celebrates unique ideas, perspectives and experiences. 2. Reasonable accommodation policy: Allows any change or adjustment to a job or work environment that Ethnicity (E) permits a qualified Mindtree Mind with special needs, Ethnicity, age, religion, multi-cultural backgrounds, to participate in the job application process, to perform minorities or nationalities are never criteria for the essential functions of a job or to enjoy benefits discrimination in terms of salary and or any other and privileges of employment equal to those enjoyed benefits. by Minds without disabilities. Some examples are providing readers and interpreters, Job restructuring, People with disabilities (D) acquiring or modifying equipment or devices. Hiring people with disabilities has been high on the diversity agenda. Technical competence and cultural Sensitization programs are conducted as part of the fitment is considered at the time of recruitment. In cases induction program. Additionally, our supervisors conduct where some limitations due to disabilities are seen, an one-on-one sessions to ensure comfort both in the assessment is done to check if these limitations can be work allocation and the surrounding environment. addressed and the Mindtree Mind be made productive Mindtree appreciates and encourages the benefits that through specific arrangements. technology can deliver to people with disabilities. These assistive technologies are envisioned to help people Today, 31 Mindtree Minds with disabilities are proudly with disabilities interact better with their environment. associated with Mindtree for over nine years and hold Mindtree initiatives in this space are listed in the esteemed positions in the organization. We are proud of community section of this report. our diverse culture. Gender (Ge) The campus has been designed for people with We are committed towards building a sustainable and disabilities. They have specially-built restrooms on every growing social business network that mentors women floor and ramps are available at all entrances. Motorised leaders, enables a culture of environmental sensitivity wheelchairs are provided for Mindtree Minds who need and contributes towards business growth and them. The facility interiors are decorated with paintings development of society. by children from the Spastics Society of Karnataka (SSK) or from SPASTN (Spastics Society of Tamil Nadu). Gender diversity Over the years, the percentage of women at Mindtree has To ensure people with special needs can enjoy the almost doubled, from 16% in 2004 to 28% in 2012-13. benefits and privileges of employment equal to those Mindtree follows a multidisciplinary approach to gender enjoyed by similarly situated people without inclusion, being aware of the dual role played by women disabilities we have introduced two policies: and the additional social responsibilities they undertake.

47 We have defined policies that go a long way towards further, take time off for social work, family care, personal retaining lady Minds. These are: special needs leave, value addition through teaching assignments and so forth. maternity leave, sabbatical, work from home policy, This would provide them with the flexibility to attend to flexible working hours, equal opportunity policy, their personal needs and pursue a career at the same time. reasonable accommodation policy and prevention of Mindtree plans to extend the special needs leave to all harassment policy. Infrastructure arrangements such Mindtree Minds. as baby’s day out and day care centers at the Bangalore offices assist greatly in promoting a healthy Baby’s Day Out work-life balance. New mothers often face the difficult situation of leaving their newborns at home or in a crèche while they go to work. To Work-life balance help young mothers, Mindtree offers them an innovative Work-life balance has been inculcated into the Mindtree facility called ‘Baby’s Day Out’. This is a special room that culture and is not just a mere policy. enables mothers to work even as they keep a watchful eye on their kids. New mothers can also avail the option of reduced Numerous avenues to enable work-life balance have been work hours, half day / half work week. introduced including a baby’s day out facility, toddler’s park / crèche, special needs leave, flexible working hours, Little Critters compensatory off’s, part-time work hours and work from Mindtree’s crèche, Little Critters, is a day care facility home options for all Mindtree Minds. Mindtree Minds are within the campus, run by a professional team and a caring encouraged to avail leave on a regular basis and this is staff. This helps Mindtree Minds with children to balance their ensured by the lapse of 1/3rd of the leave entitlement the responsibilities between work and dependent child / children. following year if not availed of in the stipulated period. Employee network group Special needs leave Dhriti _ Mindtree’s Women’s Network, serves as a platform A one-of-a-kind benefit offered by Mindtree: A maximum for lady Mindtree Minds to voice their concerns, share and of 365 days of leave without pay, can be availed of, after learn from experiences. It spearheads awareness programs a minimum tenure of one year within a block period of six on gender sensitivity and inclusivity. Dhriti also defines years. This needs to be availed for a minimum duration of women-friendly policies, career development programs 90 calendar days. and various e-learning and self-development initiatives. It also serves as a grievances forum. Mindtree understands that work-life balance can be a challenge, specially for women. So they have the option to Sexual orientation (S) avail a special needs leave. There has been a move, over We provide an inclusive environment for lesbian, gay, the past few years, to extend this benefit to everyone. This bisexual and transgender (LGBT) individuals across the globe. could encompass specific needs, such as a desire to study

Gender diversity ƒƒ Lady minds constitute 28% of our total workforce ƒƒ Dhriti _ a community built to empower women realize their true potential has 500 members and 11 champions among them.

People with disabilities ƒƒ 31 across various roles

Targets ƒƒ Increase diversity (women) by 3% in totality by 2014-15 ƒƒ Identify job roles suitable for individual with different forms of disabilities

Currently there is no female representation in the Board of Directors. While the Board may not be gender diverse, Mindtree is consciously creating positions to promote gender diversity at middle and senior management levels.

48 Performance management The performance management philosophy of Mindtree stands on four strong pillars, each resting on a core tenet: the power of feedback.

Performance management

0 100

Input & leadership Personal potential Input on performance competencies maximisation Career alignment through through 3600 through & planning performance feedback mentoring appraisal

Mindtree’s performance management philosophy of an activity and send a customized feedback form to has been translated through the internally developed their internal network. application, COMPASS. Besides their defined project goals, COMPASS encourages COMPASS starts with an objective-setting process at the Mindtree Minds to contribute to organization-wide beginning of every financial year. Every Mindtree Mind is initiatives during the year. A unique feature of COMPASS is required to have a dialogue with managers before setting that when Mindtree Minds contribute to organization-wide objectives on COMPASS. Apart from this, Mindtree Minds initiatives it provides additional weightage to the overall are prompted to complete appraisals at the end of a performance score. project and set objectives at the start of a new project, within defined timelines. The application also allows for The annual performance management system objectively role-based customization with four templates based on identifies those performers who are below average. user profiles in the organization. Mindtree has a Performance Improvement Program (PIP) that helps these people to improve. As part of the PIP The ‘my diary’ feature in COMPASS enables Mindtree program, individuals are assigned to a mentor in their area Minds to maintain performance logs and track progress. of work. They are assigned a separate set of objectives The conversations feature encourages feedback sessions and are evaluated on them every fortnight for 90 days. and documentation of feedback by Mindtree Minds and Several Mindtree Minds who have undergone this program managers alike. To obtain feedback, Mindtree Minds can have emerged successful and today perform significantly initiate a pulse check (a self-development tool) at the end above expectations.

49 Professional wellness program In a nutshell, the process focuses on: The Mindtree professional wellness program focuses ƒƒ The present and the future on providing a forum for open dialogue. Here Mindtree ƒƒ Personal challenges and opportunities Minds may reflect on aspirations and alignment, talk about ƒƒ Aspirations and their alignment to current career path personal and professional development and recollect time ƒƒ Behaviors / habits spent on wellness. ƒƒ Wellness and work-life balance

Professional wellness process overview

Self Manager

ƒƒ Submission of my ƒƒ Submission of my reflections team reflections

Discussion Discussion Panel

ƒƒ Discussion by central panel ƒƒ Discussion by the manager ƒƒ Effectiveness ƒƒ Cross pollination ƒƒ Updating IDP (individual ƒƒ Program survey development plan)

360 degree feedback 360 degree feedback program has been a part of Mindtree’s performance management system since 2008. Up until 2012, the 360 degree feedback program evaluated Mindtree Minds on behaviors pertaining to the Mindtree values and leadership traits which was a values based behavioral assessment instrument common to all.

50 MentorMe Rewards and Recognition (R&R) Mentoring is an ‘experiential learning process’ between Rewarding and recognizing the Mindtree Minds is an two motivated Mindtree Minds. It enables transfer of important exercise for both, engagement and retention. specific competencies by focusing on both; the career There are several programs for recognizing excellent and the individual potential of the mentee. It provides efforts, as well as a range of awards for exceptional work. ‘anchors’ to connect with. Our mentorship program, As a part of the Rewards and Recognition programs, ‘MentorMe’, was formally rolled out in March 2008. the awards carry incentives like certificates signed by The program caters to the internal learning needs of members of the leadership team, along with a citation a Mindtree Mind and fits into a learning space that cannot personally written by the nominator, personalized plaques be classroom-led. It aims at holistic development of a / trophies, monetary awards and so on. Mindtree Mind at both, the professional and the personal level. There are also non-monetary benefits like participation in mentoring and career growth programs. Winners of the The program provides a platform for one-on-one or a Pillars Program and the Chairman’s award can also go on two-way experiential learning platform for the mentor a sabbatical to complete a program that meets their career and the mentee. MentorMe has two key objectives – desire in universities that have a tie-up with Mindtree. creating a platform for experiential learning and enabling To celebrate the spirit of gratitude and build a vibrant a connect among Mindtree Minds across levels. The focus culture of recognition, we launched Gloria, the one-stop is on reducing the learning curve of the mentee using the hub for recognizing and appreciating the work of fellow experiences of the mentor. Mindtree Minds. A true recognition culture cannot be built by a unidirectional push of recognition by the senior MentorMe is a critical offering in the Pillars program, which management only. It has to penetrate to every team, every is proudly represented by members who are consistent individual where the feeling of appreciation and telling high performers over the years. The members of this the world about one’s accomplishment is encouraged. prestigious club have the opportunity to be associated To facilitate this, we created a platform in Gloria that as mentees to leaders in Mindtree. The program is also shares the winning moments of Mindtree Minds with their integrated with the first-time managers program pictures and award won. A Service Level Agreement (SLA) called NuLead. driven system ensures instantaneous appreciation for the job well done, thus creating what is called as the ‘culture of recognition’.

51 Reward programs

Chairman’s award Pat on the back Role model managers

The highest award in Mindtree, this An instant recognition for a Recognizes managers who have award is given to Mindtree Minds noteworthy action or contribution helped nurture and grow their for upholding and spreading our while performing a task or working teams professionally. values, as well as exemplifying on a project. delivery excellence.

Outstanding performers award Pillars program Send a smile

Minds are chosen based on Platforms where high achievers An instant recognition platform their performance for the last and performers are rewarded. that encourages a Mind to select, year and are recognized in a Members of this club go through a personalize and send a card very special way. comprehensive 12 month program. of appreciation.

Shining star Mindtree citizen award 10 / 10 (ten on ten)

A peer award that recognizes An award given to individuals who Rewards exceptional performance the efforts, contributions and display delivery excellence in at a primary level beyond the call achievements of a fellow Mind. various roles such as manager role, of duty and is result based. enabling function role, lead role and so on.

Technical appreciation award Team spot award Half yearly team awards

A specialized award for an A platform for recognition of a Biannual award that shares and individual demonstrating team’s exceptional performance at showcases best practices across outstanding technical capability a primary level, beyond the call of projects. Project teams are and achievement. duty and is result based. evaluated for their contribution under different categories.

Anniversary completion awards Other awards

Mindtree Minds are given A host of other awards recognizing anniversary completion gifts innovation and creativity through on completing three years, six patent generation, innovation years and ten years, gifts on their & creativity awards, community birthdays and wedding dates. awards and so on.

52 Health and safety Our India locations are all OHSAS 18001:2007 certified. At Mindtree, the health and wellbeing of Mindtree Minds is With this certification as our backbone, we drive a of prime importance. Mindtree strives to achieve a positive comprehensive health and safety policy that entails balance in all aspects governing the life of Mindtree workplace hazard identification, risk assessment Minds and promote an approach that encompasses programs and security measures. Our practices physical, mental and emotional wellbeing. The flagship promote safety, health, emergency response and corporate wellness program at Mindtree is Healthy Mind overall wellness. They are frequently revised based Healthy Body (HMHB). It focuses on offering education on regulations, industry trends and feedback from and opportunities to improve the physical and mental Mindtree Minds. health of Mindtree Minds. HMHB is built on four pillars: Health benefits, physical Mindtree has B+ve, an Employee Assistance Program (EAP), wellbeing, psychological wellbeing and education where Mindtree Minds have a platform to get neutral awareness. A detailed list of health and wellbeing and objective professional assistance from qualified programs is provided in the following table. counselors, with complete anonymity and confidentiality. Additionally, we have a health portal, a one-stop shop for all health related queries, with a host of health related articles, online chat sessions with dieticians and exercise finders.

ƒƒ Healthy Mind Healthy Body ƒƒ Medical insurance ƒƒ First aid centers ƒƒ Group term life ƒƒ Ergonomic consulting insurance & evaluations ƒƒ Leave policies Health Physical ƒƒ Fitness Camps benefits wellbeing ƒƒ Baby’s day out & day care centers

_ Psychological Safety and Awareness ƒƒ B+ve wellbeing security Employee ƒƒ Talks by experts Assistance ƒƒ Safety and and workshops Program(EAP) security training ƒƒ Health camps ƒƒ Emergency ƒƒ Process response teams improvement plans

At present the injury and illness rate is not captured and analyzed, going forward we intend to do so.

53 Human rights conformance to employment norms like minimum wage Mindtree represents a talented and diverse workforce. We standards, statutory benefits and timely wage payment. strongly believe in a free and fair workplace without any There have been no defaults in this regard. We respect form of discrimination. This fosters a culture that embraces right to freedom of association. At present, none of our differences and celebrates unique ideas, perspectives people are part of registered trade unions. and experiences. Promoting human rights across our Mindtree respects and values equal opportunities among value chain our workforce and those with whom we do business. Mindtree’s suppliers undergo human rights screening as Our code of conduct defines our actions as an ethical evinced by the contract signed containing the principles employer. We do not discriminate on grounds of race, of Mindtree’s supplier code of conduct. Our supplier ethnicity, gender, gender-identity, language, age, sexual code of conduct as well as the Leadership in Energy and orientation, religion, socio-economic status, physical Environmental Design (LEED) principles, to which we and mental ability, for salary and or any other benefits. adhere, extends the responsibility of transparency and Mindtree’s position on equal opportunity is strong in all integrity to our suppliers and furthermore facilitates aspects of employment, including recruitment, training sustainable sourcing. conditions of service, career progression, termination or retirement. Contracted labor and vendors are required to abide by the norms of Mindtree’s code of conduct while working on Our focus on human rights is tailored into our compliance our premises. To imbibe our culture of integrity across the systems. We ensure compliance with labor norms such as value chain, we conduct integrity sessions for vendors and prevention of child labor, forced or involuntary labor and contract staff. There have been no incidences of code of conduct violations or complaints for the reporting period.

54 55

Mindtree and the environment ‘At Mindtree we align As responsible corporate citizens we our technology, believe we have a vital role to play towards maintaining our environment. At Mindtree we business strategies and align our technology, business strategies and environment to our main environment to our main goal of reducing goal of reducing our our footprint. footprint. Only when Only when we continue to grow as an we continue to grow as organization without increasing the impact an organization without on our environment can we claim to be increasing the impact environmentally responsible. This is the objective behind our footprint reduction targets on our environment for this year. We have a goal to reduce our can we claim to be energy, water and emissions by 5% year on year. environmentally We also aim to increase the percentage of waste that is recycled. responsible’

While this is certainly challenging, we are confident to achieve this with out-of-box initiatives and by encouraging Mindtree Minds to contribute towards environmental sustainability.

A case in point is the solid waste management initiative at Rajarajeshwari Nagar Bangalore where Mindtree Minds were able to recycle 13 tonnes of dry waste. By channelizing the passion of Mindtree Minds and by keeping an eagle eye on our energy, water and emissions metrics, we are sure to achieve our sustainability goals.

Welcome to possible

Shrish Kulkarni Vice President Operations

58 Ecological sustainability

Measures for current and future generations The green initiatives are led by the Mindtree Green Council Ecological sustainability is one of the key pillars of (MGC), an overarching governance body that supports Mindtree’s sustainability framework. With the increasing alignment of business objectives with green initiatives. centrality of issues such as climate change, energy These are largely run by the green communities. Our security and water stress, we recognize environmental green community has been a passionate advocate for risks and the importance of managing our impact on the change and eco-friendliness within and outside Mindtree, environment. We aim to minimize the environmental spearheading initiatives in the fields of energy, water impact of our business operations through resource and waste. conservation practices, GHG emissions reduction, efficient energy management, water efficiency, sustainable waste Mindtree’s approach to environmental management and by engaging Mindtree Minds stewardship as evangelists. The four aspects of ecological sustainability are 1. Energy efficiency Scope of the report 2. Water management The environmental performance covers only India 3. GHG emissions locations which represents 89% of our workforce, 4. Waste management therefore the data is well represented. Mindtree is in a people-intensive business, with energy Environmental Management System (EMS) and water consumption forming a major part of the The EMS framework is the backbone of our environmental ecological footprint. charter. It helps us identify key aspects and impacts on the environment, based on which goals are set. It also ensures In the following pages, Mindtree discloses the energy, regulatory compliance and enables effective management water, waste and carbon emissions data for the year 2012- review. All our India offices are ISO 14001: 2004 certified. 13, for India operations only. A process is currently being set up to track the footprint at a global level. Mindtree started its green journey in 2009 determined to reduce its carbon footprint through initiatives to conserve energy and water. The four aspects of Ecological sustainability

Energy Water chg emissions Waste efficiency management management

59 Energy efficiency carbon emissions. Energy availability itself is a concern, Energy efficiency is a core area of our resource considering that the major operational footprint is conservation efforts. Mindtree recognizes being a business in Indian cities. Frequent power shortages increase that is dependent on people and IT infrastructure, dependency on diesel generators to power offices and IT energy impacts business directly and indirectly. It systems, in turn increasing not just operational costs, but increases operational expenses and is a major cause for more importantly, carbon emissions.

Direct & indirect consumption 2012-13 in GJ

Indirect energy _ purchased electricity: 76,681

Direct energy _ diesel: 46,960

Direct energy _ LPG: 741

Over the years we have implemented a variety of energy conservation and energy efficiency measures as listed Targets: below. The implementation of energy efficiency measures ƒƒ Reduce energy consumption per capita by 5% in the areas of IT infrastructure, cooling, lighting and year-on-year by the implementation of energy general operations has resulted in a savings of 782 MWh in efficiency measures. the year 2012-13. Our employee energy intensity stands at ƒƒ Ensure all new buildings follow at minimum, LEED 201 kWh pepm. Our specific energy consumption is 0.89 Gold standards of construction. GJ / capita / month or 11 GJ / capita / annum.

We have adopted the LEED green building design for our infrastructure. Three of our offices in India are certified LEED gold standards.

Water management Targets: Water scarcity is a growing reality in the world now. ƒƒ Reduce water consumption per capita by 5% year At Mindtree, water conservation has gained increased on year. importance over the last few years. Tracking the ƒƒ Implement rain water harvesting or ground water water usage started in 2011-12, through a ‘Water recharge systems in all owned campuses. Footprint’ exercise. purchase. We have put in place rainwater harvesting At Mindtree, water is drawn from three sources – systems to capitalize on water harvesting from monsoons. ground water, municipal water supplies and private

60 Water consumption per employee is 1.05 m 3 per month. Similar plans to implement environmental friendly taps We are constantly exploring better methods to monitor, and waterless urinals at restrooms in other locations are in measure and conserve water. progress. ƒƒ Implementing waterless urinals in Bangalore Global village campus led to a saving of 200 m 3 of water per Water discharge: Waste water is not discharged into any month subsurface water. The water from these sewage treatment ƒƒ Installing new water filters in all washroom taps in plants is tested and is in conformance to the control Chennai operations, reduced water consumption by 15 parameters as specified by the local Pollution Control m 3 , per month Board. Mindtree facilities do not generate any process effluents that need specialized treatment plants.

Water withdrawal by source in m3 2012-13

Purchased from private suppliers: 87,463

Ground water: 18,061

Municipal water supplies or other water utilities: 33,363

100% of the outlet water from Mindtree facilities is premises (other locations). The recycled water is used treated using Sewage Treatment Plants (STPs) at the internally for flushing and landscaping purposes. premises (Bangalore Whitefield and Pune campus) and Common Effluent Treatment Plants (CETPs) at the builders’

Domestic sewage discharge to in-house STP vs CETP

Number of locations discharging to CETP: 71%

Number of locations discharging to STP: 29%

61 Water consumption vs water recycled in m3 - 2012-13

Fresh water consumption: 92%

Volume of recycled / reused water in m3: 8%

Percentage and total volume Volume of recycled / reused water in m3 : 11,616 of water recycled and reused Total volume of water withdrawn in m3 : 138,886 in 2012-13 Percentage of water recycled and reused : 8%

Greenhouse Gas (GHG) emissions Since 2009, Mindtree has been measuring its carbon emissions and has actively taken steps in the reduction of its GHG 43% emissions. Our GHG mitigation strategy works on a three 45% pronged approach – energy conservation practices, resource efficiency and sustainable waste management. The bulk of GHG emissions at Mindtree are due to resource consumption – both direct and indirect.

The chart provides a summary of our overall carbon Scope 1 Scope 2 Scope 3 emissions – categorized under: Scope 1 Emission from direct energy consumption, like fuel Scope 2 Emissions from purchased electricity Scope 3 Emissions from other indirect sources 12% Our emission intensity stands at 3.38 tCO 2 e / employee per annum. In addition to our energy efficiency practices, we made a concerted effort to reduce the GHG emissions of our scope three emissions. Implementation of transportation initiatives Target: such as common bus systems, carpooling and cab route ƒƒ Reduce GHG footprint per capita by 5% optimization have contributed significantly in the reduction of year-on-year GHG emissions.

62 CO2 emissions in tonnes - 2012-13

Electricity / energy purchased: 16,082

Employee commute: 9,546

Business travel: 6,932

Waste: 97

Freight: 33

Fuel usage / energy generated (diesel): 4,179

Fuel usage (LPG): 48

Owned vehicles: 8

45% 36% Air emissions in tonnes - 2012-13

SOx (Oxides of sulphur) : 0.47

SPM (Suspended particulate matter): 0.90

NOx (Oxides of nitrogen): 1.15

19%

63 95% Ozone depleting substances in kg’s - 2012-13

CFC Equivalent: 16

R22 (Refrigerant): 290

5%

Business travel and commute facilities in the Bangalore, Chennai and Hyderabad Apart from electricity consumed, a major source of GHG campuses are already certified gold interiors. emissions is business travel and employee commute. Several measures as listed below have been taken to Pollution prevention and waste reduce emissions. management At Mindtree, we are diligent about tracking and managing Mindtree’s global village facility in Bangalore has initiated our waste levels. We continually assess the operational the Common Bus System (CBS). This system not only risks to the environment and take care to recycle our helps people commute more easily, it also reduces cab waste wherever possible. 65% of the waste generated at transportation and hence environmental impact. This our facilities is recycled through authorized vendors. A system is facilitated by Bangalore Metropolitan Transport majority of the balance mixed solid waste and tissue paper Corporation (BMTC) buses that ply 37 routes. Having is also handled through vendors. However, the final fate succeeded in the global village campus, we plan to extend of the waste is not clearly understood. We are continuously it to the Pune facility as well. exploring better monitoring of our waste management practices. A significant proportion of the waste data is Cab usage has been reduced to a large extent by based on derivations. rationalizing shifts from 32 to 12 in December 2012, eliminating ad-hoc cab requests and encouraging the The likelihood of spillage is rare, given the nature of use of CBS. Cabs are provided after eight pm as per work at Mindtree. One spill was recorded during 2012-13, statutory requirements. where 120 litres of fuel spillage resulted in land contamination at Bangalore Global village campus. To Video-conferencing facilities at Bangalore, Chennai, mitigate such instances, proper training is given to the Pune and the U.S. have reduced business air travel. technicians handling fuel filling with necessary safety The ’work from home’ initiative has been rebranded, controls. No fines levied with respect to environmental providing greater flexibility through telecommuting. laws and regulations during the reporting period.

Green buildings Mindtree plans to have all new facilities to be energy Target: efficient, environment friendly and LEED certified. Existing ƒƒ Increase percentage of solid waste recycled from 65% to 85% by 2014-15.

64 The following graph shows different types of waste generated and their final result.

Quantity of waste by category in tonnes - 2012-13

120

100

80

60

40

20

0 E-waste Bio-medical Hazardous Inorganic Organic Packaging Other waste waste waste waste waste waste

Recycle Incineration Landfill

Inorganic waste disposed in tonnes 2012-13

Tissue paper: 67 (88%)

Newspaper: 2 (3%)

Office stationery: 3 (5%)

Magazine: 0.41 (0%)

Paper: 3 (4%)

65 Organic waste disposed in tonnes - 2012-13

STP sludge: 18 (18%)

Food waste: 84 (82%)

Wood: 0.18 (0%)

Hazardous and e-waste disposed in tonnes - 2012-13

Batteries: 11.16 (59%)

Used oil : 5.08 (27%)

e-waste: 2.18 (12%)

CFL’s : 0.24 (1%)

Ink cartridges: 0.19 (1%)

Waste by disposal methods in tonnes - 2012-13

Recycle: 168 (65%)

Landfill: 92 (35%)

Incineration: Nil

66 Biodiversity be posted, existing routes can be traced and finding Biodiversity loss is one of the least understood ecological ‘poolers’ to the same route made easy. The portal risks; yet it is the most critical as it is inextricably linked to generated a lot of interest with more than 350 global warming, water scarcity and livelihood loss. None of registrations in the first few days itself. the current facilities is proximate to biodiversity-sensitive fields (protected or of high value). Mindtree business ƒƒ Solid waste management initiatives at Rajarajeshwari operations pose zero risk to any endangered species, plant Nagar, Bangalore (Jul ’12) or animal. The city of Bengaluru is going through urban overpopulation and development, resulting in many While the operations may not have an impact on issues and hazards, chief among them being waste biodiversity, there is awareness for all to protect management and disposal. With the solid waste biodiversity. The efforts therefore centers on creating management systems of the city on the verge of environmental conservation awareness among collapse, there is an urgent need for the citizens of the the people. city to understand waste management and learn the benefits of reduction in waste disposal. Adopting best Green community initiatives practices of waste management at Mindtree, the green The Mindtree green community consists of passionate community launched a pilot initiative on Solid Waste Mindtree Minds, who volunteer and organize activities Management (SWM). They encouraged the community related to the environment and society. Important events residing in the neighboring locality of Rajarajeshwari such as World Environment Day, World Water Day, Earth Nagar to participate and initiate SWM in their homes Day and Earth Hour are celebrated to bring awareness. We and neighborhoods. This model is now being expanded regularly conduct ‘Expert talks’ sessions on afforestation, to cover the rest of Rajarajeshwari Nagar over the next rain water harvesting, biodiversity conservation, waste few months. management and eco-architecture. Green community initiatives Apart from celebrating events the green community has ƒƒ Green Community cyclothon to Turahalli hills (Sep ’12) also spearheaded initiatives like creating a green portal, ƒƒ Live chat with rain water harvesting experts (Apr ’12) a carpooling portal and a go-green e-learning module. ƒƒ Eco-friendly initiatives in the cottage industry (Nov ’12) The efforts of the green council and the 750+ member ƒƒ Ex-Mindtree Mind, Vivek Shrivastava, delivered a green community have also been appreciated externally. talk on his social venture Kalavilasa, which provides market access to artisans and NGOs, on fair terms. The Since its launch in 2009, the green communities have highlights of the talk were: conducted several activities, including: The environmental and social implications of selecting ƒƒ Screening movies and documentaries on green topics crafts and weaves Waste by disposal methods in tonnes ƒƒ Organizing lectures by experts on specific topics like Mass manufacturing affecting the livelihood of the - 2012-13 compost recycling, green living, green homes, water artisan community in India harvesting and the like. ƒƒ Enablers to identify and promote genuine eco-friendly ƒƒ Celebrations to encourage a certain behavior like Bus Day, crafts and so on. Vehicle Free Day, Apna Bag to reduce plastic bag usage to ƒƒ Movie show ‘Tiger – The Death Chronicles’ (Jan’13 name a few. ƒƒ Awareness booth / session by Green Peace ƒƒ Competitions like slogan writing, poster making, India (Feb’13). drawing, Green Idol and more. ƒƒ Events like World Water Day, Earth Hour and the like. Mindtree was second runner-up in the People’s Green Award category as part of the TCS World 10K Marathon held Events conducted during the reporting period are in Bangalore, in July 2012. The award is for organization and as follows: corporate foundations contributing to environmental causes Celebrations without seeking any monetary gains. We also received a ƒƒ World Environment Day (Jun ’12) ‘Certificate of Merit’ award as part of SHRM’12 Excellence in On World Environment Day, a new carpooling initiative Community Impact category. was rolled out. Through this, carpool requests can

67

Mindtree and our customers ‘Our clients expect us to be domain experts. The in-depth industry and Client satisfaction is at the core of everything technology expertise we do at Mindtree including our work in gives our client access sustainability. Mindtree believes in collaborative to meaningful solutions partnerships with our clients and has and helps them consistently helped our clients build value by engineering meaningful technology solutions succeed. At the core of and delivering high quality services. our rebranding exercise is our move away from Our clients expect us to be domain experts. Our in-depth industry and technology expertise being a culture-led gives our clients access to meaningful solutions organization to an and helps them succeed. At the core of our expertise led one.’ rebranding exercise is our move away from being a culture-led organization to an expertise led one. Our learning function has ably put in place training programs to help the Mindtree Minds gain expertise in our chosen areas. We also have several mechanisms in place to measure client satisfaction. We gather feedback regularly through project surveys and steering committee meetings.

Welcome to possible

Ramachandran Narayanaswamy Vice President Head - Delivery Enablement

70 Mindtree and our customers

Customer satisfaction engagement with the customer, such as consulting, An organization eventually aims for a delighted and development, Infrastructure Management and Technical engaged customer. Openness to listen to a customers’ Support (IMTS), maintenance, augmentation and testing. feedback and expectations and deliver value accordingly to their businesses is the key to Mindtree success. The actions emanating from the survey, drive customer engagement and service delivery improvement initiatives. There are several mechanisms in place to measure These actions are at organization, business unit, account customer experience. The Customer Experience Survey and project levels and are tracked regularly. Everyone (CES) process is an annual check on the health of the including the senior management has CES linked Key relationship. It focuses on the customer disposition and Result Areas (KRAs) and compensation (relationship level). helps progress as a trusted business partner. For the past To improve the customer satisfaction levels, several 11-12 years, an annual CES is rolled out to solicit feedback improvements initiatives have been kicked-off. from active customers. The survey is targeted at various levels – CXO, senior management and operating level. Results of survey conducted in Jan 2012 / 2013: The CES process is driven with a structured questionnaire Mindtree has an all-time high response of 56.2% customized to the recipient, i.e. separate questions which is in line with the industry standard. There is an designed for the CXO, senior and middle management. improvement in scores across most parameters. Key At the operating level (middle management) Mindtree results are presented in the graph below: has different variants depending on type of project /

7.00 2012 2013

6.00

5.00 5.29 5.28 5.17 5.16 5.24 5.18 4.87 4.00 4.79

3.00

2.00

1.00

Satisfaction Loyality Advocacy VFM

71 Other customer feedback mechanisms As for physical security, access to an associated offshore Apart from annual survey, there are other mechanisms development center is extended only to people working such as project feedback which are triggered as and when for a customer process in that particular center. There is key milestones are met or conducted quarterly in a project. also a strong network security infrastructure, managed by These mainly focus on operational management feedback a Chief Information Security Officer (CISO), for course correction. as well an Information Security (infoSec) council that meets once a quarter. At each of the locations, there is an Steering committee meetings are another form of infosec officer. Any security violations are reviewed and connecting with the customer. These meetings consist escalated. During 2012-13, no data privacy or security of sponsors from the customer and Mindtree, the breaches occurred. Account Manager and the Relationship Manager. The committee meets once a quarter, to prioritize and The Information Security (InfoSec) council pedal certain initiatives. This council is a high-level body that sponsors and drives the security initiatives within Mindtree. This Apart from the above, members of the senior management team comprises of representation from the Senior visit the customers location for a meet and greet, as well as Management (the sponsor), Security Advisory (internal for an informal session of gathering feedback. experts or external consultants) and the Chief Information Security Officer. Data privacy and security mechanisms The responsibility of this forum is to: In a business where the privacy of customer data is ƒƒ Review and approve the security policy of critical, stringent data privacy and security mechanisms the organization are administered and monitored. Mindtree was ISO ƒƒ Participate in management security review meetings 27001 certificated in April 2012 and has implemented ƒƒ Assess if the security implementation meets the the Information Security Management System (ISMS) set objectives framework based on the globally recognized standard. ƒƒ Continuously improve the ISMS (Information Security This covers network controls, network privacy, internet Management System) security, patch management system and controls against ƒƒ Monitor implementation of ISMS within the organization malicious software.

72 Business Continuity Planning (BCP) of the plan. While designing the Disaster Recovery Mindtree understands the impact of operational disruption Plans (DRP) for Mindtree, the following interruption to the organization and the customer’s business. Several scenarios have been considered. Prevention and recovery steps have been taken to ensure continuity of service. A mechanisms are outlined at each level. detailed BCP has been created at the corporate level to ensure business continuity and uninterrupted service, The requirement of BCP and DRP, in terms of the recovery in case of any eventuality affecting partial / complete time objective, permissible data loss and the performance operations of Mindtree. The plan undergoes a yearly level during the disaster, vary from customer to customer. review and action plans are developed if deficiencies are This depends on the nature of the services provided by found. In addition, every component of this plan is tested Mindtree, the level of criticality of these services and the as per the test plans in order to demonstrate the reliability delivery model followed. Hence, a customized BCP and DRP is discussed and finalized for each customer.

Country

City

Site Cost Probability Impact

Connectivity

Hardware / equipment

Content (data)

Innovation and value add program Benefits perceived by the customers The Mindtree value add program delivers open innovation Mindtree’s VA program delivers value by enabling and accelerates internal collaboration within teams, to collaborative innovation for delivering the following: address a new generation of business challenges for ƒƒ Helping customers envision tangible outcome via POC, Mindtree’s customers. Mindtree VA framework is an demos and working prototype models before resulting inventive model that encompasses systematic innovation into actual solutions. techniques and problem definition / solving approaches ƒƒ Improving the customer’s go-to-market time by aligning to help facilitate ideas resulting into perceptible outcomes VA ideas to the customer’s goals and business priorities. for customers. ƒƒ Mitigating risk in deploying futuristic solutions on emerging and disruptive technologies. ƒƒ Demonstrating Mindtree’s collaborative energies by engaging with internal communities and the external ecosystem to co-innovate with and for the customer.

73 Mindtree’s commitment to quality

Mindtree endeavors to deliver predictably with high to the customers consistently and improve internal quality to its customers and has certifications in some efficiencies. This re-iterates the organization capability to of the globally recognized standards and models such as always deliver expertise-led, superior quality solutions CMMI, ISO 14001, ISO 20000 and ISO 27001. Mindtree and services to the customers. It also emphasizes that a adopted the Capability Maturity Model (CMM) in early high level of rigor in data is followed, backed by metrics- 2002. Mindtree is compliant to the Capability Maturity driven practices. Use of statistical methods during Model Integration (CMMI) DEV 1.3 Level five, the highest the project life cycle to improve individual and team maturity level for all strategic projects, currently being performance is also an output of this compliance. executed from Bangalore and Chennai. International Organization for Standardization (ISO) Mindtree’s association with CMM has strengthened the Mindtree follows multiple ISO standards such as ability to deliver high quality solutions and services ISO 27001, ISO 20000 and ISO 14001.

ISO 27001 ISO 20000 ISO 14001 ƒƒ Certification in compliance ƒƒ Certification for design, ƒƒ Certification for compliance to to Information Security transition, delivery and environmental management Management Systems (ISMS) improvement of services systems ƒƒ Certified in April 2012 across ƒƒ Certified in December 2010 for ƒƒ Certified in September 2010 all location Bangalore and Chennai locations across all India location

74 75 76 Mindtree and our shareholders

77 ‘Many of our clients are currently undertaking their own sustainability As a listed organization we have a responsibility journeys. Depending to our investors and shareholders. Our strategy is now to be an expertise-led organization on their maturity levels with a laser sharp focus on the areas that we and their industry do business in. Simply put, sustainability is our needs they too are way of stepping back and looking at the larger picture. It involves taking stock of the planet and formulating goals. people while not losing sight of profit. Given this situation it makes practical Many of our clients are currently undertaking business sense for us to their own sustainability journeys. Depending on their maturity levels and their industry align ourselves to their needs they too are formulating goals. Given this sustainability needs’. situation it makes practical business sense for us to align ourselves to their sustainability needs.

Going forward I see our sustainability performance to be a critical component when bidding for projects. I also see us, as a key partner in helping our clients achieve their sustainability goals. Therefore sustainability is not orthogonal to our business goals – it is part and parcel of it.

Welcome to possible

Rostow Ravanan Executive Vice President Chief Financial Officer

78 Economy and IT services industry The future of the IT services industry shall be defined by Uncertainty pervaded the global economy leading to ‘Consumerisation of IT’ and organization will be focusing a slower recovery in 2012 (3.2% growth in world GDP on IT as a key differentiator to their businesses. Service in 2012 compared to 4% in 2011, as per the IMF), with providers will be investing in a combination of services, continued strains in Europe and a drag on growth in products and platforms to create ‘transformative’ emerging economies, specifically China. The year 2013 business value for customers. Organization’s are likely is expected to see an improving global economy (3.3% to invest significantly in ecosystems built around SMAC growth), led by a strong US economy, an easing Europe and technologies (Social media, Mobility, Big Data / Analytics a stabilizing China. Emerging economies are expected to and Cloud services). As these disruptive technology trends grow by 5.3%; the US by 1.9% and the euro area likely to increasingly gain mainstream adoption, they are expected contract by 0.3%. Downside risks include drag on the US to offer a definitive fillip to global IT spending. growth due to excessive near-term fiscal consolidation and prolonged stagnation in the euro area, both of which could Indian IT service providers have been increasingly have negative spillovers on the global economy. On the focusing on: positive front, there are key economic tailwinds in the US ƒƒ Strengthening customer-facing teams and mining and emerging economies, which offer hope for a promising focus accounts 2013. Overall, macroeconomic factors indicate a gradual ƒƒ Deepening vertical specialization and building deep recovery and a cautious positive outlook for 2013; primarily domain expertise fuelled by consumption growth and private sector spending ƒƒ Broadening services portfolio in the US towards the second half of 2013 domestic demand ƒƒ Evolving newer business models, building non linear growth in China; marginally offset by fiscal consolidation revenue streams issues in the US and eurozone setbacks. ƒƒ Augmenting global delivery models

Global IT services spending is set to recover, driven Financial performance by improvements in macroeconomic fundamentals. Income Uncertainties around IT budgets and technology Revenue for the year in USD grew by 8.2% to USD 435.7 investments are expected to clear to a large extent in million. In rupee terms, revenue for the year is INR 23,618 2013. Gartner research predicts that the worldwide million signifying a growth of 23.32%. spending on IT services shall accelerate by 4.5% to USD 918 billion in 2013 compared to 1.5% growth in 2012. Fee revenue growth in USD was driven mainly by a volume growth of 6.4%. Price realization improved by 2%. As per NASSCOM, the worldwide IT-BPO outsourcing market is valued at USD 124-130 billion in 2012. India We analyse our revenue based on various parameters. continues to be the leader in the IT-BPO outsourcing The factors which are driving our revenue growth (in USD market, with a significant cost-advantage and a 52% terms) are as follows: market share. The Indian IT industry continues on its 1. Revenue by business: ITS revenue grew by 14.7% in the growth path, although growth has been a tad slower in current year from USD 264 million to USD 303 million. 2012-13 due to global economic uncertainties. NASSCOM 2. Revenue by geography: Europe revenue grew by 21.6% estimates that Indian IT-BPO services exports shall grow followed by US revenue which grew by 6%. by 12- 14% to USD 84-87billion in 2013-14, compared to 3. Revenue by service offering: Our revenue from 10% growth in 2012-13. infrastructure management and technical support grew by 41.1% year-on-year. This was followed by development With the market releasing its pent-up demand in 2013, revenue which grew by 24% in the current year. the traditional application development and maintenance 4. Revenue by vertical: Among the verticals, ITS _ others services shall dominate in terms of dollar spend. However, mainly comprising of telecom grew 32.2% in the current emerging service segments such as Infrastructure year followed by manufacturing and retail which grew Management Services, Business Intelligence / analytics by 15.6% and BFSI which grew by 14.2%. services and testing services shall grow much faster over 5. Revenue by mix: Our onsite revenue grew by 21% in the next few years. the current year as compared to a growth of 1.7% in offshore revenue.

79 6. Customers contribution to revenue: Revenue from our Strength and opportunities: top ten customers grew by 17% in the current year. Customer-focused growth strategies Our customer-focused ‘account mining’ strategy has Our active customers list as on 31, March 2013 stands yielded good results, with our top ten customers emerging at 232. as our major growth engines.

Profitability and Margins Our top ten customers have grown at over 17% in FY ƒƒ EBITDA margins are at 20.58% as compared to 15.3% 2012-13, compared to the organizational growth of 8% in in the previous year. The main reason for the increase the same period. We will continue investing in our account in EBITDA margin is rupee depreciation of about 14% management teams to extend our farming successes during the year. beyond our top 10 customers. ƒƒ Our effective tax rate has increased from 16.4% in the previous year to 20% in the current year. This is mainly During FY 2012-13, USD 5 million customers increased by because of two SEZ units which have moved from a 3 to 20; USD 10 million customers increased by 2 100% tax benefit on profits to 50% tax benefit on to 9; USD 20, million customers increased by 1 to 5. Over profits in the current year (net of foreign tax credit of 98% of our revenues in the past several quarters have INR 97 million in the current year). come from repeat business (existing customers). Revenue ƒƒ PAT has increased by 55.3% to INR 3,393 million mainly per customer has been on the rise, signaling our success in because of the reasons explained above. mining focus accounts.

Market capitalisation A key component of our ability to scale and grow with our Market capitalisation has increased from ` 8,019 million customers is our focus on building global delivery centers to ` 37,986 million i.e. by more than four fold in the last 5 to serve our customers. During FY 2012-13, we opened years. (Based on NSE closing rate as on March 31). two onshore delivery centers; one at Gainesville (Florida, US) and another at Diegem (Belgium).

One of the most promising indicators of our customer -focused growth approach is the fact that our customers have rated us better on all key parameters (satisfaction, loyalty and advocacy) in 2013, as part of our annual customer experience survey. Over 86% of our customers participated in this survey.

80 Our strategy Our execution continues to be guided by the following four strategy pillars, enabling us to grow faster and generate higher returns to our stakeholders.

Non-linear Growth revenue models

ƒƒ Focused account mining ƒƒ Platform, IP & products (Bluetooth) ƒƒ Pursue large deals ƒƒ Managed transaction services ƒƒ Deepen domain expertise] (‘as a service’ offerings) ƒƒ High impact client-facing teams ƒƒ Strengthening fixed price projects

Customer Operational Centricity Excellence

ƒƒ Account management practices ƒƒ Talent management ƒƒ Focus on quality ƒƒ Seamless global delivery ƒƒ Domestic development ƒƒ Next generation delivery platform centers (Onshore) ƒƒ World class infrastructure

Mindtree strategy pillars

81 Outlook Our IT services business is on a positive momentum, has bottomed out and is expected to see positive growth having grown at more than 25% CAGR between FY11 going forward. Mindtree is confident of delivering broad- and FY13. Our product engineering services business based growth in FY14, higher than in FY13.

Financial performance

(INR in million) Direct economic value generated (A) 2012-13 2011-12 2010-11 Revenue (through core business segments) 23,618 19,152 15,090 Other income 350 385 242 Total 23,968 19,537 15,332 Economic value distributed (B) Operating cost 4,938 4,059 3,545 Personnel expenses (wages + benefits) 14,138 12,160 9,767 Interest charges 10 5 4 Taxes and royalties (given to various governments, wherever business 847 430 288 units are located) – Tax expenses Taxes and royalties (given to various governments., wherever business 81 26 17 units are located) – Dividend tax paid Dividends (payments to capital providers) 497 162 100 Donations (political parties / politicians)* - - - Community development / CSR Investments – paid to 18 3 - Mindtree Foundation Total 20,529 16,845 13,721 Economic value added (A-B) 3,439 2,692 1,611

* No monetary contributions were made to any political parties.

Financial assistance Mindtree received financial assistance of INR 57 million workforce training and the non-monetary grant was for the from the State of Florida, USA, towards reimbursement renovation of the project facility. In addition, the following of rent. The monetary grant was provided to facilitate benefits have been received:

Financial assistance received (in INR million) 2012-13 2011-12 2010-11 IT exemption 1,656 1,478 1,181 Other Income (Customs and excise duties waived) 47 39 75 Total 1,703 1,517 1,256

For more details refer Mindtree annual report: http://www.mindtree.com/company/investors/annual-report-2012-13

82 83

Mindtree and the community ‘Through Mindtree Foundation we take part in outreach programs where we work with NGOs to promote education We are a technology organization and we look and relief from poverty’. at assistive technology as a key tool to achieve our community related goal of social innovation. Through Mindtree foundation we take part in outreach programs where we work with NGOs to promote education and relief from poverty.

Employee volunteering is another key aspect of our community involvement. The following section describes our programs in detail.

Welcome to possible

Abraham Moses General Manager & Good Samaritan – Mindtree Foundation

86 Mindtree and the community

Social responsibility is an integral part of our corporate citizenship. Mindtree is driven by its value system and Abraham Moses, Head of Mindtree Foundation, was commits to support and nurture societies by delivering awarded Forbes 2012 Philanthropy award under innovative solutions to meet evolving needs of the society. the category ‘Good Samaritan’ for his combined Mindtree strives to foster a socially responsible corporate efforts in looking after administration and the culture by introducing a balanced approach to business. personal welfare of Mindtree Minds. This is done by addressing social and environmental challenges through required investments, necessary Below is a snapshot of such activities. resource allocation and engaging with the stakeholders. Mindtree Foundation plays the role of a catalyst in Outreach programs bringing this change, step by step. Outreach programs at Mindtree are in the form of grants or donations that help in the infrastructure development and Our social transformation initiatives, led by Mindtree poverty alleviation. Financial assistance is provided for Foundation, are now nearly 6 years old. Over the years, medical care, shelter, food, education and clothing. our approach has been to engage in social issues with ƒƒ Missionaries of Charity (MOC) sensitivity, rigor and responsibility. Mindtree Foundation Mindtree has been associated with Mother Teresa’s lays the platform for Mindtree’s value system. Missionaries of Charity (MOC) for the past 13 years, through financial assistance as well as infrastructure Mindtree is committed to the pursuit of better living for development assistance. Mindtree foundation helped people with disabilities and enhancement in the quality of rebuild a home for 200 residents, earlier demolished by primary education. Our people, assistive technologies and the Highway authorities of India. This home was built associations with NGOs help us to: with a budget of INR 200 lakhs to accommodate ƒƒ promote education to underprivileged children with a 100 residents. special emphasis on people with disability ƒƒ provide relief from poverty by way of assistance to INR 7 lakhs is being spent to install a 63 KVA electrical food, shelter and clothing transformer at a leprosy home, in the MOC in Janla, ƒƒ provide relief of distress caused by calamities of nature Odisha.

Mindtree Foundation strives to achieve these charters ƒƒ Spastics Society of Karnataka (SSK) through its outreach programs, voluntary programs, Mindtree has a long-term relationship with The Spastic organization development programs and technical Society of Karnataka (SSK). Mindtree buys bakery consultancy programs. products from SSK to feed the residents of the MOC in Yelahanka, Bangalore. Mindtree Foundation is proud to be associated with: ƒƒ Missionaries of Charity (M.O.C.) The Mindtree Foundation recently donated INR 25 lakhs ƒƒ Gandhiji Shanti Nivas Leprosy Rehabilitation Centre for a lift at the extended wing of SSK at Indira Gandhi ƒƒ Sparsh Foundation Institute of Child Health (IGICH). ƒƒ Spastics Society of Karnataka (SSK) ƒƒ Sikshana Educational Development program for Rural ƒƒ Sikshana Government School Children Mindtree donated INR 5 lakhs to the Sikshana ƒƒ AMBA Centers for Economic Empowerment of the Foundation, an NGO, through which 12 schools are Intellectually Challenged (AMBA-CEEIC) supported in the Kanakapura District of Karnataka. This ƒƒ Goonj initiative aimed to improve the standard of education. 1005 children benefit from the program. In addition, a two-day life skills training program was conducted for Sikshana’s prospective teachers.

87 The quantitative indicator, based on the Annual Status in the far-flung villages of rural India. A special winter of Education Report (ASER) (www.asercentre.org) clothes collection drive was held in Dec ’12 and half a assessment, has indicated that the schools supported truckload of clothes collected was sent to various Goonj by Mindtree have produced exemplary results, much locations across India. above state and national averages. ƒƒ Technologists for Social Action (TSA): Regular TSA programs are conducted at Missionaries of Charity ƒƒ eDonation (MOC) for Mindtree Minds _ along with their families and Mindtree has donated 100+ computers and a file server friends, in all the Mindtree India campuses in Bangalore. to AMBA Foundation. Additional 200+ computers have In 2013, the program was revamped to add hands-on been donated to various other NGOs and schools in activities like cleaning the floors, ceilings, kitchen and nearby villages and townships. toilets, changing beds and spreads, feeding the MOC residents and the like. 623 volunteers participated in ƒƒ Other grants the program. INR 20 lakhs was donated to Sparsh hospitals for ƒƒ Dream-to-reality (D2R): With the help of Mindtree corrective surgeries for underprivileged children. Leaders, the higher education of 14 children continues Dr. Nasreen (a person with disability from Freedom to be sponsored. Two of these children are now in Unlimited, an NGO) was sponsored by Mindtree to engineering colleges. participate in the 13th international conference on ƒƒ Life skills programs: A three-day special Life Skills ‘Mobility for transport for elderly and disabled persons’. training program was organized by Dr. Meena Jain, Sambhav Foundation (CWC member), for 60 dedicated Volunteering programs volunteers in Bangalore. Subsequently, the volunteers Mindtree believes that participation in various social conducted a 12-week training program for nearby causes foster a culture of social responsibility and Government schools. Additionally, a one-day Life Skills humanity. Mindtree is planning to intensify corporate training and briefing program was conducted for 80 volunteering by deploying an individual social teachers from Ramnagar for Sikshana Foundation. responsibility program called ‘One Good Deed’ (OGD). ƒƒ Joy of giving: This year, six big project teams participated in Joy of Giving activities through Sikshana Some of the volunteering programs that Mindtree Minds Foundation. 800 Mindtree Minds volunteered to buy participated in 2012-13 are: and present gifts to children from six neighboring ƒƒ TTK Blood Bank: A total of 1083 bottles of blood was government schools in Bangalore. The volunteers donated by the Mindtree Minds across all locations distributed the gifts to about 643 underprivileged in India. children. At the Joy of Giving program in Chennai ƒƒ GOONJ: Over three and half truckloads of old clothes Mindtree Minds bought gifts for the children of the were collected and sent to Goonj, an NGO which support staff. mobilizes clothes and other basic amenities to millions

88 Technical consultancy programs Some of these solutions provided were: Assistive technology: Mindtree aims to use its expertise ƒƒ KAVI-PTS: Based on a request from IIT-M, KAVI-PTS in technology to support society through innovative was conceptualized and technical solutions were solutions driven by The Mindtree foundation. Affordable provided. Additionally, a technical paper was presented and indigenous sustainable assistive technologies are on KAVI-PTS to IIT-M for the IEEE Global Humanitarian being developed to facilitate an easier life for people with Technology Conference, South Asia Satellite (GHTC disabilities. Two successful products currently in use are; SAS 2013) under the Inclusive Technologies for the ƒƒ Analog and Digital Theremin Interface (ADITI): Differently-abled track. IIT-M plans to take this solution ADITI is a device that when connected to a computer to Google market. gets recognized as a human interface device or a mouse and assists people with musculoskeletal disabilities. ƒƒ Finger-Switch: Mindtree delivered Finger-Switch POCs ADITI works on the capacitive principle; if a human body for cerebral palsy affected kids to IIT-M. This has been comes close to the antenna plate of ADITI, it will initiate demonstrated to National Trust Laboratories, Delhi and a click on the computer. Mindtree has donated 200 to Perkins, US. ADITI units to IIT-M. ƒƒ Suction balls: 45 suction balls, a device to help children ƒƒ Kommunicator Audio-Visual Interface device (KAVI): with Attention Deficit Hyperactive Disorder (ADHD), KAVI assists children and adults suffering from speech cerebral palsy and autism disabilities, have been impairments, mainly due to conditions such as cerebral delivered to SPASTN. palsy and autism. Supporting people with disabilities Assistive technology consultancy Mindtree encourages and provides all support to Mindtree Based on requirements as specified by enterprise like IIT-M, Minds with disabilities by providing infrastructural support SSK and SPASTN Mindtree provided technical solutions. such as accessible building infrastructure, JAWS screen

89 reading software, cab facilities, health insurance and Self-development programs through powered wheelchairs. volunteerism ƒƒ Lead-by-service: Mindtree has a slightly different ƒƒ Spastics Society of Tamil Nadu (SPASTN) approach to orient new Campus Minds. As part of the SPASTN identified 32 types of solutions required for regular orientation programs, new Campus Minds are children with disabilities. Mindtree’s volunteer team has encouraged to shadow the support staff and learn identified 20 solutions for which deployment are from them. in progress. ƒƒ Learn-from-unusual-resources: Interactive sessions for the Campus Minds, from ‘differently-abled’ sources ƒƒ Perkins International School for the Blind, USA such as Ms. Sheeba of Spastics Society of Karnataka, a Perkins, USA, contacted Mindtree Foundation world-renowned artist and teacher, who didn’t allow a through IIT-M to explore the development of assistive debilitating condition called post rickets deter her. technology solutions. Mindtree took the lead role to bring Mindtree’s Project Engineering and Services One-day outdoor learning: A one-day plastics-cleaning- delivery wing and development teams together to drive program at Bannerghatta National Park was work on this opportunity. ADITI was demonstrated to conducted for campus minds to do their bit for society Mr. Steven M. Rothstein, President of Perkins School for the Blind, USA and Mr. David Morgan, Vice President Customer-partner engagement programs and General Manager, Perkins Products USA. Their Mindtree volunteers organized a four-day social service team plans to evaluate the product and will approach learning program for children of the leading Dutch their partner on a new low vision learning technology organization, KPN’s executives. Every morning, the children product that may be able to take advantage of ADITI. along with the volunteers visited Missionaries of Charities (MOC) and helped the sisters in their daily work ƒƒ National Association for the Blind (NAB) chores including making beds, cleaning vessels and NAB School was guided by Mindtree to develop feeding children. Android-based free screen reader software for visually impaired people. External participation and accolades Mindtree Foundation was presented to the awards panel ƒƒ Bangalore project guide committee of Society of Human Resource Management Mindtree is guiding Ms. Emilene Zitkus a PhD researcher (SHRM), Mumbai. Mindtree won at the SHRM India HR from the Engineering Design Centre at University of Awards ’12 in the category ‘Excellence in Community Cambridge, London in her research on inclusive design Impact’, where the activities implemented by Mindtree for people with disabilities. Foundation were presented.

Mindtree Foundation also participated in the ‘India Inclusion Summit – 2012’ in Bangalore and represented Mindtree at ‘Skills to Succeed for a High Performance Nation: Empowering People with Disabilities’.

90 91 92 Mindtree and our suppliers

93 Mindtree and our suppliers

Supply chain sustainability and of Mindtree’s supplier code of conduct. Our supplier vendor management code of conduct as well as the LEED principles, to which Mindtree encourages a work environment that thrives on we adhere, extends the responsibility of transparency integrity and values. We are committed to an ethical and and integrity to our suppliers and furthermore facilitates sustainable relationship with our supply chain and our sustainable sourcing. outsourced services. Contracted labor and vendors are required to abide by

Mindtree supply chain consists of approximately 1650 the norms of Mindtree’s code of conduct while working on vendors, ranging from small vendors to established names. our premises. To imbibe our culture of integrity across the Among these Mindtree has also empanelled and works value chain, we conduct integrity sessions for vendors and with Fortune 500 organization’s to meet its supply contract staff. There have been no incidences of Code of chain requirements. Conduct violations or complaints for the reporting period.

All vendors are provided standard procurement guidelines. Supplier code of conduct At the time of procurement of technology-related Mindtree’s suppliers and vendors are expected to follow material, preference is given to green, energy efficient the supplier code of conduct. and Restriction of Hazardous Substances (ROHS) certified materials. Purchase order routing is done through the The provisions as set forth in the code of conduct provide procurement function, which focuses on optimizing the minimum standards expected of Mindtree’s suppliers. operational and capital expenses. Our suppliers are obligated, in all of their activities, to operate in full compliance with the laws, rules and Promoting human rights across our regulations of the countries in which they function and value chain additionally, strive to exceed both international and Mindtree’s suppliers undergo human rights screening as industry best practices. evinced by the contract signed containing the principles Human rights – supply chain All suppliers and vendors of Mindtree are screened Targets: through a due diligence process before being contracted. ƒƒ Enforce the supplier code of conduct across All vendors are expected to comply to the supplier code Mindtree’s supply chain of conduct. For all important suppliers, site audits are ƒƒ Develop and implement supplier evaluation conducted and evaluation done based on compliance process in line with Mindtree’s supplier code requirements in the code. of conduct

94 The supplier code of conduct covers the following areas:

Human rights Community engagement

Compensation, wages and benefits Suppliers are encouraged to contribute and foster socio- compliance, anti-discrimination, freedom of economic development of the communities in which association and prevention of harassment. they operate.

Environment Labour The suppliers must act responsibly towards environmental Prohibition of child, juvenile and involuntary betterment and shall have an effective environmental labor, reasonable working hours and policy that drives compliance with all applicable sustainability of contractors / sub-contractors. environmental laws and regulations.

Health & safety Ethics

Suppliers must comply with all applicable Integrity with respect to corruption, extortion and fraud, health and safety regulations and directives. protection of whistleblower cases, protection of intellectual property and information disclosure when needed.

Audit and checks are undertaken at all Mindtree ƒƒ A hotline and a mobile number directly linked to the operations, to ensure that there is no child labor on any CFO has been set up for vendor feedback. In 2012-13, of its premises. No suppliers have been identified at a risk no vendor complaints were received. of violation of collective bargaining, child labor or ƒƒ Going forward, we have a special vendor meet planned forced labor. every three years. Its objective is to recognize the supplier and service partners and familiarize them with Complete safety administration is ensured for the Mindtree’s brand identity, value system and integrity. contractor laborers at buildings construction sites. ƒƒ Mindtree plans to conduct background screening of all Mindtree conducts audits, to ensure compliance to the vendors by the end of 2014-15. Currently, onsite visits code of conduct. Non-compliance of the code of conduct to the vendor’s premises are conducted for may impact the present and future ability of the supplier / large procurements. vendor to engage with Mindtree. ƒƒ The current procurement manual is being revised to encompass changes that have occurred in the Vendor feedback procurement landscape through the past three years. Mindtree believes in that suppliers and vendors are its Mindtree is planning to have a vendor management long-term business partners and ensures that they face no portal with built-in performance management tools for difficulties when dealing with the organization. Some of the engaging with the vendors. This will also be used to rate specific vendor initiatives undertaken are: and provide feedback for vendors. ƒƒ Setting up the auto-debit payment system to ensure that a vendor gets payment on time.

95 Management team

Subroto Bagchi Parthasarathy N.S. Chairman President

Chief Operating Officer

Krishnakumar Ashutosh Shukla Natarajan Senior Vice President CEO

Managing Director Travel & Transportation

S. Janakiraman Gaurav Johri President Senior Vice President

Banking Financial Chief Technology Officer Services & Insurance

Rostow Ravanan Radha R Executive Vice President Senior Vice President

CPG, Manufacturing and Chief Financial Officer Retail

Ravi Shankar Ramesh Pillai Executive Vice President Senior Vice President

Chief People Officer Hi-Tech

96 Scott Staples Veeraraghavan RK President Executive Vice President

Sales Chief Delivery Officer

Paul Gottsegen Senior Vice President

Chief Marketing and Strategy Officer

The profiles are available at: http://www.mindtree.com/company/management-team

97 Global presence

Mindtree has a combination of sales offices and delivery centers, to service global customers.

USA EUROPE

New Jersey Arizona United Kingdom France 15 Independence blvd. 19820 N. 7th Ave. 288 Bishopsgate La Grande Arche Suite 410, Warren, Suite 135 EC2M 4QP, London Paroi Nord NJ 07059, USA Phoenix, AZ 85027-4736 United Kingdom 92044, Paris Ph: +1 908 604 8080 USA Ph: +44 20 3178 8643 France Fax: +1 908 604 7887 Ph: +1 480 499 3145 Fax: +44 20 7959 3030 Ph: +33 1 7329 4524 Ph: +1 602 535 2257 Fax: +33 1 7329 4500 Florida Toll free: 1 800 239 4110 Germany 720 SW 2nd Avenue Richmodstrasse 6 Switzerland South Tower, Gainesville, Washington 50667, Cologne C/O Paramis AG FL 32601, USA 5010 148th Ave NE Germany Muehlengasse 2 Ph: +1 352 702 4565 Suite 200, Redmond, Ph: +49 221 9204 2233 4410, Liestal Fax: +1 352 433 4080 WA 98052, USA Fax: +49 221 9204 2200 Switzerland Ph: +1 425 867 3900 Ph: +41 5 2269 1400 Illinois Fax: +1 425 861 8151 Belgium Fax: +41 5 1269 1401 1901 N. Roselle road Pegasuslaan 5 Suite 800 California 1831, Diegem Netherlands Schaumburg, IL 60195 2001 Gateway place Belgium Koningin Juliana Plein 10, USA Suite 700 W Ph: +32 2709 2055 2595 AA , Den Haag Ph: +1 847 592 7044 San Jose, CA 95110 Fax: +32 2709 2222 Netherlands Fax: +1 847 592 7043 USA Ph: +31 7 0891 8475 Ph: +1 408 986 1000 Sweden Fax: +31 7 0891 8433 Texas Fax: +1 408 986 0005 Svetsarvägen 15 2tr 320 Decker drive 17141, Solna # 100, Irving, TX 75063 Canada (Stockholm) USA Bay and Bloor Centre Sweden Ph: +1 972 422 9113 1235 Bay Street Ph: +46 8 5787 7020 Suite 400 Toronto Ontario Fax +46 8 5787 7010 M5R 3K4 Canada

98 Asia Pacific India

UAE Japan Bengaluru Chennai 423, Block A, 5W 2-21-7-703, Kiba, Global village, RVCE post TP2 / 2, CyberVale DAFZA Koto-ku, Mysore road Mahindra world city SEZ PO Box 293858 Tokyo, 135-0042 Bengaluru - 560 059 Kanchipuram district Dubai, UAE Japan Karnataka, India Chennai - 603002 Ph: +971 4260 2400 Ph: +81 3 5809 8444 Ph: +91 80 6706 4000 Tamilnadu, India Fax: +971 4260 2401 Fax: +81 3 5809 8445 Fax: +91 80 6706 4100 Ph: +91 44 6749 7000 Fax: +91 44 6749 7100 Singapore China Plot no. 150, 17 Changi Business Park Room 1503I, level 15 EPIP second phase 5th Floor, Hardy block, Central 1, Tower 2, Kerry plaza KIADB industrial area TRIL infopark ltd., #05 - 03 Honeywell No.1 Zhong Xin Si road Hoody village, Whitefield Ramanujan IT city SEZ, Building, Futian district Shenzhen Bengaluru - 560066 Rajiv Gandhi salai, Changi business Park, 518048 Karnataka, India Taramani Singapore 486073 China Chennai – 600113 Singapore Ph: +86 755 3304 3162 / 63 New Delhi Tamilnadu, India Ph: +65 6323 8135 Fax: +86 755 3304 3322 A-1, second floor Ph: +91 44 3371 1100 Fax: +65 6323 1795 Sector 10 Fax: +91 44 3371 1000 Noida - 201301 Australia Uttar Pradesh, India Level 26, 44 Market st. Ph: +91 120 244 3210 / 11 Hyderabad Sydney, NSW 2000 Divyasree orion Australia Pune B-6, Survey no-66 / 1 Ph: +61 (2) 9089 8970 / 71 Rajiv Gandhi infotech & Raidugam, RR district biotech park, Hyderabad – 500 032 Plot no.37 phase 1 Andhra Pradesh, India MIDC, Hinjewadi Ph: +91 40 6723 0000 Pune – 411 057 Fax: +91 40 6723 0100 Maharashtra, India Ph: +91 20 3915 6000 Fax: +91 20 3915 6186

99 Awards and recognitions received during 2012-13

Mindtree was recognized in many forums for its environmental practices, corporate governance, learning practices, leadership acumen and good samaritan.

Environment: the category of ‘Winning Edge in Strategy’. This is the third Second runner-up in the ‘People’s Green Award’ category year in succession that Mr. Rostow Ravanan has made it to as part of the TCS World 10K marathon, that was held in the coveted CFO100 list. Bangalore, 2012. Mr. Ravi Shankar, our Chief People Officer, was recognized Corporate governance: among the ‘40 Most Talented HR Leaders in India – 2012’, ‘Best Corporate Governance India 2013’ (second by the World HRD Congress and ET Now. consecutive year), instituted by the World Finance magazine Mr. Sudhir Kumar Reddy, our Chief Information Officer, was honored by the CIO magazine as a ‘Super League Honoree’ Asia money Corporate Governance Poll 2012 ranked us as part of the CIO 100 awards in 2012. top in the category of ‘Best for Investor Relations in India’ and also ranked us second in India (up from third in 2011) Learning practices: for overall Corporate Governance, Best for Disclosure and Awarded the bronze medal in the ‘Best Blended Learning Transparency, Best for Shareholders’ Rights and Equitable Program’ category as part of the TISS-LeapVaultCLO (Chief Treatment, Best for Responsibilities of Management and Learning Officers) awards instituted by the Tata Institute the Board of Directors. of Social Sciences and LeapVault in 2012, in recognition of the learning and development practices. Leadership acumen: Our senior management comprises some of the most Good samaritan: seasoned global leaders in the industry, from diverse Mr. Abraham Moses, Head of Mindtree Foundation, was backgrounds, geographies and with different areas of awarded Forbes 2012 Philanthropy award under the specialization in the IT services industry. category ‘Good Samaritan’ for his combined efforts in looking after administration and the personal welfare of Mr. Krishnakumar Natarajan, our CEO, was ranked 28th, Mindtree Minds. (with an employee approval rating of 90%) amongst the Top 50 CEOs across the globe in 2013, by Glassdoor _ a ‘Certificate of Merit’ award as part of SHRM’12 - excellence jobs and career community website. in community impact category.

Mr. Rostow Ravanan, our CFO, was named amongst the Top 100 CFOs in India by the CFO magazine for 2013 under

100 Assurance statement

101 102 103 Data assumptions

Data assumptions Company owned The company owns four vehicles. An assumed average of 30km per day is used. Mindtree has arrived vehicles at the average distance commuted by assuming the average round distance of Mindtree facilities from the center of the city. Thus, by multiplying the average km per day by the assumed number of working days in a year (250 days) we arrived at the total kilometers travelled. Emission factors are bifurcated into petrol and diesel based on the make of the vehicle. Fuel usage Weight of one full LPG gas cylinder is considered as 19.5kg. This figure has been utilized in the event that locations have provided the number of LPG gas cylinders being used as opposed to the kg. Refrigerant For HFC’s and PFC’s, the global warming potential of the refrigerant along with a conversion factor of 0.001 is converted into CO2e using standard conversion formulas. Employee 1. For company leased vehicles, the fuel make of the vehicle is considered to determine petrol vs. commute diesel vehicles. An average of the monthly petrol and diesel prices of all major Indian cities has been considered to compute the total litres consumed. Emissions are overstated by at least 20% as the fuel claim also includes personal travel on the part of employees. 2. Assumed an average of 30 km per passenger per day for public transport. We have arrived at the average distance commuted by assuming the average round distance of Mindtree facilities from the center of the city. Thus, by multiplying the average passenger km per day by the assumed number of working days in a year (250) and the number of employees who use the service the total kilometers travelled are computed. It is assumed that the emission factor for public transport to be that of bus (type unknown) as a majority of employees using public transport commute by bus services. 3. Public transport: We have arrived at the number of employees who use public transport by inference, i.e. by subtracting the total number of employees who use cars, two wheelers and Mindtree operated buses from the total number of employees in the India operations. 4. Mindtree uses parking lot figures to determine a factor of the employees using four and two wheelers. 5. For four and two wheelers, the emissions on account of employee commuting have been computed based on the assumption arrived from the company leased vehicles, that 70% of fuel costs assumed are to be associated with petrol and 30% of fuel costs assumed to be associated with diesel. The kilometers are calculated by assuming an average of 30 km per passenger per day – with a similar principle to that of public transport. Business travel 1. GHG protocol provides different emission factors for domestic, short haul and long haul flights. A (International & distance based classification into these categories is more appropriate. Based on an assumption domestic) and a study of available literature, Mindtree has considered the following categorisation to classify all flights as per the categorization below: Domestic: less than 463 km Short haul: between 464 and 1108 km Long haul: greater than 1108 km

With this categorization, a majority of the flights (98%) are long haul with the balance under short haul (1%) and domestic (0.2%).

104 Waste 1. Weight of one UPS battery is considered as 11.70 kg. This figure has been utilized in the event that locations have provided the number of batteries being used as opposed to the kg. 2. Weight of one litre of used oil is considered as 0.88 kgs. This figure has been utilized in the event that locations have provided the number of litres of used oil being disposed as opposed to the kg . 3. Weight of one CFL bulb is considered as 126g. This figure has been utilized in the event that locations have provided the number of CFL’s being disposed as opposed to the kg. 4. Weight of one tubelight is considered as 250g. This figure has been utilized in the event that locations have provided the number of tubelights being disposed as opposed to the kg. 5. Weight of one DG filter is considered as 1.5Kg. This figure has been utilized in the event that locations have provided the number of DG filters being disposed as opposed to the kg. 6. The average weight of municipal solid waste (wet / dry) generated is considered as 0.5 kg / person / month. 50% of this is considered as dry waste which is recycled. 7. In the event that waste (oil soaked cotton and DG filters) have been disposed but there is no record of the same, averages of the available data have been considered for those months 8. Emissions associated with waste disposed have been considered as opposed to disposed + generated + stored. 9. Since clarity on the disposal methodology is not available, more conservative emission factors are used. Freight Emission factor for domestic is used for domestic air freight and emission factor for international is that of long haul. Water 1. For smaller locations where the builder maintains the total water consumed, figures are obtained by assuming one employee consumes 65 litres of water per day. 65 litres is derived based on ratio of the total water consumed in locations with accurate measure by the total number of employees. 2. Drinking water is collected in the form of number of cans. This is multiplied by 20 litres (capacity of the bubble top) to provide the total number of litres. Air emissions Air emissions are not measured monthly and hence are extrapolated for the months not measured.

* The INR to USD conversion factor was taken at the INR to USD exchange rate of Rs. 45.60 for the year 2010-11, Rs. 47.57 for the year 2011-12 and Rs. 54.21 for the year 2012-13

105 The ten principles of the United Nations global compact

Principles Statement Page No. Human rights Principle 1 Businesses should support and respect the protection of internationally proclaimed 54, 94 human rights. Principle 2 Make sure that they are not complicit in human rights abuses. 54, 94 Labour Principle 3 Businesses should uphold the freedom of association and the effective recognition of the 54, 94 right to collective bargaining. Principle 4 The elimination of all forms of forced and compulsory labour. 54, 94 Principle 5 The effective abolition of child labour. 54, 94 Principle 6 The elimination of discrimination in respect of employment and occupation. 54, 94 Environment Principle 7 Businesses should support a precautionary approach to environmental challenges. 60-67 Principle 8 Undertake initiatives to promote greater environmental responsibility. 60-67 Principle 9 Encourage the development and diffusion of environmentally friendly technologies. 60-67 Anti-corruption Principle 10 Businesses should work against corruption in all its forms, including extortion and bribery. 17

NVG - SEE nine principles

Sub part Aspects Page no. A Part A of the report includes basic information and data about the operations of the business entity. Thus, the reading of the report becomes more contextual and comparable with other similarly placed businesses. It may be written in a free format incorporating at least the following: A-1 Basic information Name Cover page about the Nature of ownership 4 business Details of the people in top management 96-97 Location of its operations - national and international 98-99 Products and services offered 4 Markets served 98-99 Economic and Sales 82 financial data Net profit 82 Tax paid 82 Total assets 82 Market capitalisation 80 Number of employees 4 A-2 Management’s commitment statement to the ESG guidelines 5-6 Priorities in terms of the principle and the core elements 26-27

106 Sub part Aspects Page no. Reporting period / cycle 2 Whether the report is based on this framework or any other framework 2 Any significant risk that the business would like its stakeholders to know 19-20 Any goals and targets that were set by the top management for improving their performance 28-29 during the reporting period Part B of the report incorporates the basic parameters on which the business may report their performance. Efforts have been made to keep the reporting simple keeping in view the fact that this framework is equally B applicable to the small businesses as well. The report may be prepared in a free format with the basic performance indicators being included in the same. In case the business entity has chosen not to adopt or report on any of the principles, the same may be stated along with, if possible, the reasons for not doing so. Governance structure of the business, including committees under the 14-18 Board responsible for organization oversight. In case no committee is constituted, then the details of the individual responsible for the oversight. Mandate and composition (including number of independent members 14-18 and / or non-executive members) of such committee with the number of oversight review meetings held.

Principle State whether the person / committee head, responsible for oversight 15 1 – ethics, review is independent from the executive authority or not. If yes, how. transparency and Mechanisms for shareholders and employees to provide recommendations 16 accountability or direction to the Board / Chief Executive. Processes in place for the Board / Chief Executive to ensure conflicts of 17 interest are avoided. Internally developed statement on ethics, codes of conduct and details of 17 the process followed to ensure that the same are followed. Frequency with which the Board / Chief Executive assesses 17 B-1 BR performance. Statement on the use of recyclable raw materials. NA

Principle Statement on use of energy efficient technologies, designs and 60 2 – products manufacturing / service delivery processes. life cycle Statement on copyrights issues in case of the products that involve use of NA sustainability traditional knowledge and geographical indicators. Statement on use of sustainable practices used in the value chain. 94 Total number of employees and percentage of employees who are engaged 43 through contractors. Statement on non-discriminatory employment policy of the business entity. 46 Principle 3 – Percentage of employees who are women. 48 employees’ well- Number of persons with disabilities hired. 48 being Amount of the least monthly wage paid to any skilled and unskilled employee. 54 Number of training and skill upgradation programmes organized during the 37-39 reporting period for skilled and unskilled employees.

107 Sub part Aspects Page no. Number of incidents of delay in payment of wages during the 54 reporting period. Number of grievances submitted by the employees. 46 Statement on the process of identification of stakeholders and engaging 22-26 Principle 4 – with them. stakeholder Statement on significant issues on which formal dialogue has been 22-26 engagement undertaken with any of the stakeholder groups . Statement on the policy of the business entity on observance of human 54, 94 Principle 5 – rights in their operation. human rights Statement on complaints of human rights violations filed during the 46 reporting period. Percentage of materials used that are recycled (input materials). NA B-1 Total energy consumed by the business entity for its operations. 60 Statement on use of energy saving processes and the total energy saved 60 due to use of such processes. Use of renewable energy as percentage of total energy consumption. Not reported Principle 6 – Total water consumed and the percentage of water that is recycled 61-62 environment and reused. Statement on quantum of emissions of GHG and efforts made to reduce 62-63 the same. Statement on discharge of water and effluents indicating the treatment 61 done before discharge and the destination of disposal. Details of efforts made for reconstruction of bio-diversity. 67 Principle 7 – Statement on significant policy advocacy efforts undertaken with details of 25 policy advocacy the platforms used. Details of community investment and development work undertaken 87-90 indicating the financial resources deployed and the impact of this work Principle 8 – with a longer term perspective. inclusive growth Details of innovative practices, products and services that particularly 87-90 enhance access and allocation of resources to the poor and the marginalized groups of the society. Statement on whether the labelling of their products has adequate NA Principle 9 – information regarding product-related customer health & safety, method of customer value use & disposal and product & process standards observed. Details of the customer complaints on safety, labelling and safe disposal of NA the products received during the reporting period.

108 Sub part Aspects Page no.

Part C of the report incorporates two important aspects on BR reporting. Part C-1 is a disclosure by the business entity on any negative consequences of its operations on the social, environmental and economic C fronts. The objective is to encourage the business to report on this aspect in a transparent manner so that it can channelize its efforts to mitigate the same. Part C-2 is aimed at encouraging the business to continuously improve its performance in the area of BR.

C-1 Brief report on any material / significant negative consequences of the operations of the None business entity. C-2 Brief on goals and targets in the area of social, environmental and economic responsibilities 28-29 that the business entity has set for itself for the next reporting period

GRI index

Application level: A+ Assured By KPMG STANDARD DISCLOSURES PART I: Profile disclosures Profile Description Reported Page no. disclosure 1. Strategy and analysis 1.1 Statement from the most senior decision-maker of the 5 organization. 1.2 Description of key impacts, risks and opportunities. 19-20 2. Organization profile 2.1 Name of the organization. 1 2.2 Primary brands, products and / or services. 4 2.3 Operational structure of the enterprise, including main divisions, 4, 98-99 operating enterprise, subsidiaries and joint ventures. 2.4 Location of organization headquarters. 98 2.5 Number of countries where the organization operates and names 98-99 of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report. 2.6 Nature of ownership and legal form. 98-99 2.7 Markets served (including geographic breakdown, sectors 4, 98-99 served and types of customer / beneficiaries). 2.8 Scale of the reporting organization. 4 2.9 Significant changes during the reporting period regarding size, 4 structure or ownership. 2.10 Awards received in the reporting period. 100

Fully reported Partially reported Not reported Not applicable

109 STANDARD DISCLOSURES PART I: Profile disclosures Profile Description Reported Page no. disclosure 3. Report parameters 3.1 Reporting period (fiscal / calendar year) for information 2 provided. 3.2 Date of most recent previous report (if any).* 2 3.3 Reporting cycle (annual, biennial and likewise) 2 3.4 Contact point for questions regarding the report or its contents. 126 3.5 Process for defining report content. 2 3.6 Boundary of the report (for example countries, divisions, 2 subsidiaries, leased facilities, joint ventures, suppliers). See GRI boundary protocol for further guidance. 3.7 State any specific limitations on the scope or boundary of the 2 report (see completeness principle for explanation of scope). 3.8 Basis for reporting on joint ventures, subsidiaries, leased 2 facilities, outsourced operations and other entities that can significantly affect comparability from period to period and / or between organization’s. 3.9 Data measurement techniques and the bases of calculations, 104-105 including assumptions and techniques. Underlying estimations applied to the compilation of the indicators and other information in the report. Explain any decisions not to apply or to substantially diverge from the GRI indicator protocols. 3.10 Explanation of the effect of any restatements of information NA provided in earlier reports and the reasons for such re- statement (for example mergers / acquisitions, change of base years / periods, nature of business, measurement methods).* 3.11 Significant changes from previous reporting periods in NA the scope, boundary or measurement methods applied in the report. * 3.12 Table identifying the location of the standard disclosures in 107 the report. 3.13 Policy and current practice with regard to seeking external 2 assurance for the report.

* No past reports

110 STANDARD DISCLOSURES PART I: Profile disclosures Profile Description Reported Page no. disclosure 4. Governance, commitments and engagement 4.1 Governance structure of the organization, including 16 committees under the highest governance body responsible for specific tasks, such as setting strategy or organization oversight. 4.2 Indicate whether the Chair of the highest governance body is 15 also an executive officer. 4.3 For organization that have a unitary board structure, state the 15 number and gender of members of the highest governance body that are independent and /or non-executive members. 4.4 Mechanisms for shareholders and employees to provide 17 recommendations or direction to the highest governance body. 4.5 Linkage between compensation for members of the highest 17-18 governance body, senior managers and executives (including departure arrangements) and the organization performance (including social and environmental performance). 4.6 Processes in place for the highest governance body to ensure 17 conflicts of interest are avoided. 4.7 Process for determining the composition, qualifications and 16-17 expertise of the members of the highest governance body and its committees, including any consideration of gender and other indicators of diversity. 4.8 Internally developed statements of mission or values, codes of 17 conduct and principles relevant to economic, environmental and social performance and the status of their implementation. 4.9 Procedures of the highest governance body for overseeing 17 the organization identification and management of economic, environmental and social performance, including relevant risks and opportunities and adherence or compliance with internationally agreed standards, codes of conduct and principles. 4.10 Processes for evaluating the highest governance body’s 17 own performance, particularly with respect to economic, environmental and social performance.

111 STANDARD DISCLOSURES PART I: Profile disclosures Profile Description Reported Page no. disclosure 3. Report parameters 4.11 Explanation of whether and how the precautionary approach or 17 principle is addressed by the organization. 4.12 Externally developed economic, environmental and social 18 charters, principles or other initiatives to which the organization subscribes or endorses. 4.13 Memberships in associations (such as industry associations) 18 and / or national / international advocacy enterprise in which the enterprise: * Has positions in governance bodies; * Participates in projects or committees; * Provides substantive funding beyond routine membership dues; or * Views membership as strategic. 4.14 List of stakeholder groups engaged by the organization. 21-24

4.15 Basis for identification and selection of stakeholders with whom 21-24 to engage. 4.16 Approaches to stakeholder engagement, including frequency of 21-24 engagement by type and by stakeholder group. 4.17 Key topics and concerns that have been raised through 26-27 stakeholder engagement and how the organization has responded to those key topics and concerns, including its reporting. STANDARD DISCLOSURES PART II: Disclosures on Management Approach (DMA) DMA Description Reported Page no.

DMA EC Disclosure on management approach EC 79-82

Economic performance 82

Aspects Market presence NA Indirect economic impacts 79-82

DMA EN Disclosure on management approach EN 59-67

Materials NA Energy 60

Water 62 Aspects Biodiversity 62-66

Emissions, effluents and waste 62-66

Products and services 4

112 Compliance 64

Aspects Transport 44

Overall 59-67 DMA LA Disclosure on management approach LA 43-54 Employment 43-45 Labor / management relations NA Occupational health & safety 53 Aspects Training and education 37-39 Diversity and equal opportunity 46-48 Equal remuneration for women and men 46 DMA HR Disclosure on management approach HR 46, 54, 94 Investment and procurement practices 54, 94 Non-discrimination 46 Freedom of association and collective bargaining 54, 94 Child labor 54, 94 Aspects Prevention of forced and compulsory labor 54, 94 Security practices 104 Indigenous rights NA Assessment 94 Remediation 94 DMA SO Disclosure on management approach SO 87-90 Local communities 87-90 Corruption 23 Public policy 18 Anti-competitive behaviour 18 Compliance 18 DMA PR Disclosure on management approach PR 18, 71-72 Customer health and safety * NA Product and service labelling 71-72 Marketing communications 71-72 Customer privacy 71-72 Compliance 18

* Mindtree is an IT / ITES enterprise

113 STANDARD DISCLOSURES PART III: Performance indicators Performance Description Reported Page no. indicator Economic Economic performance EC1 Direct economic value generated and distributed, including 82 revenues, operating costs, employee compensation, donations and other community investments, retained earnings and payments to capital providers and governments. EC2 Financial implications and other risks and opportunities for the 19 organization activities due to climate change. EC3 Coverage of the organization defined benefit plan obligations. - EC4 Significant financial assistance received from government. 82 Market presence EC5 Range of ratios of standard entry level wage by gender 54 compared to local minimum wage at significant locations of operation. EC6 Policy, practices and proportion of spending on locally based 94 suppliers at significant locations of operation.

EC7 Procedures for local hiring and proportion of senior 44 management hired from the local community at significant locations of operation. Indirect economic impact EC8 Development and impact of infrastructure investments 87-90 and services provided primarily for public benefit through commercial, in kind or pro bono engagement. EC9 Understanding and describing significant indirect economic 87-90 impact, including the extent of impact. Environmental Materials EN1 Materials used by weight or volume.* NA EN2 Percentage of materials used that are recycled input materials.* NA

* Mindtree is an IT / ITES enterprise

114 Energy EN3 Direct energy consumption by primary 60 energy source. EN4 Indirect energy consumption by primary source. 60

EN5 Energy saved due to conservation and 60 efficiency improvements. EN6 Initiatives to provide energy-efficient or 60 renewable energy based products and services and reductions in energy requirements as a result of these initiatives. EN7 Initiatives to reduce indirect energy consumption and 60 reductions achieved. Water EN8 Total water withdrawal by source. 61

EN9 Water sources significantly affected by withdrawal of water. 61

EN10 Percentage and total volume of water recycled and reused. 62

Biodiversity EN11 Location and size of land owned, leased, managed in or adjacent 67 to, protected areas and areas of high biodiversity value outside protected areas. EN12 Description of significant impact of activities, products and 67 services on biodiversity in protected areas and areas of high biodiversity value outside protected areas. * EN13 Habitats protected or restored. * 67 EN14 Strategies, current actions and future plans for managing NA impacts on biodiversity. * EN15 Number of IUCN Red List species and national conservation list NA species with habitats in areas affected by operations by level of extinction risk. * Emissions, effluents and waste EN16 Total direct and indirect greenhouse gas emissions by weight. 62-63

EN17 Other relevant indirect greenhouse gas emissions by weight. 62-63

EN18 Initiatives to reduce greenhouse gas emissions and 64 reductions achieved.

* Mindtree is not located near areas of high biodiversity value

115 EN19 Emissions of ozone-depleting substances by weight. 64

EN20 NOx, SOx and other significant air emissions by type and weight. 63

EN21 Total water discharge by quality and destination. 61

EN22 Total weight of waste by type and disposal method. 65-66

EN23 Total number and volume of significant spills. 64

EN24 Weight of transported, imported, exported or treated waste NA deemed hazardous under the terms of the Basel Convention Annex I, II, III and VIII and percentage of transported waste shipped internationally. * EN25 Identity, size, protected status and biodiversity value of 61 water bodies and related habitats significantly affected by the reporting organization discharges of water and runoff. Products and services EN26 Initiatives to mitigate environmental impact of products and 60-67 services and the extent of impact mitigation. EN27 Percentage of products sold and packaging material reclaimed NA by category. ** Compliance EN28 Monetary value of significant fines and total number of non 64 monetary sanctions for non compliance with environmental laws and regulations. Transport EN29 Significant environmental impact of transporting products and 64 other goods and materials used for the organization operations and transporting members of the workforce. Overall EN30 Total environmental protection expenditures and investments - by type. Social: labor practices and decent work Employment LA1 Total workforce by employment type, employment contract and 43 region, broken down by gender. LA2 Total number and rate of new employee hires and employee 44-45 turnover by age group, gender and region.

* Not applicable as per the Basel Convention ** Mindtree is an IT / ITES enterprise

116 LA3 Benefits provided to full-time employees that are not provided 48 to temporary or part-time employees, by major operations. Labor / management relations LA4 Percentage of employees covered by the collective bargaining NA agreements. 7 LA5 Minimum notice period(s) regarding significant operational NA changes, including whether it is specified in collective agreements. 7 Occupational health and safety LA6 Percentage of total workforce represented in formal joint NA management-worker health and safety committees that help monitor and advise on occupational health and safety programs. LA7 Rates of injury, occupational diseases, lost days and - absenteeism and number of work-related fatalities by region and by gender. LA8 Education, training, counselling, prevention and risk-control 53 programs in place to assist workforce members, their families or community members regarding serious diseases. LA9 Health and safety topics covered in formal agreements with NA trade unions. * Training and education LA10 Average hours of training per year per employee by gender and 37 by employee category. LA11 Programs for skills management and lifelong learning that support 37-39 the continued employability of employees and assist them in managing career endings. LA12 Percentage of employees receiving regular performance and career 49 development reviews, by gender. Diversity and equal opportunity LA13 Composition of governance bodies and breakdown of 47 employees as per employee category, according to gender, age group, minority group membership and other indicators of diversity. Equal remuneration for women and men LA14 Ratio of basic salary and remuneration of women to men by 46 employee category, by significant locations of operation.

* Employees not part of trade unions

117 Social: human rights Investment and procurement practices HR1 Percentage and total number of significant investment - agreements and contracts that include clauses incorporating human rights concerns or that have undergone human rights screening. HR2 Percentage of significant suppliers, contractors and other 54, 94 business partners that have undergone human rights screening and actions taken. HR3 Total hours of employee training on policies and procedures 54, 94 concerning aspects of human rights that are relevant to operations, including the percentage of employees trained. Non-discrimination HR4 Total discrimination incidents and corrective actions taken. 46

Freedom of association and collective bargaining HR5 Operations and significant suppliers identified in which the right 54, 94 to exercise freedom of association and collective bargaining may be violated or at significant risk and actions taken to support these rights. Child labor HR6 Operations and significant suppliers identified as having 54, 94 significant risk for incidents of child labor and measures taken to contribute to the effective abolition of child labor. Forced and compulsory labor HR7 Operations and significant suppliers identified 54, 94 as having a significant risk for incidents of forced or compulsory labor and measures to contribute to the elimination of all forms of forced or compulsory labor. Security practices HR8 Percentage of security personnel trained in 54, 94 the organization’s policies or procedures concerning aspects of human rights that are relevant to operations. Indigenous rights HR9 Total incidents of violations involving rights of indigenous NA people and actions taken.

118 Assessment HR10 Percentage and total number of operations that have been 54 subject to human rights reviews and / or impact assessments. Remediation HR11 Grievances related to human rights filed, addressed and 46 resolved through formal grievance mechanisms. Social: Society Local communities SO1 Percentage of operations with implemented local community 87-90 engagement, impact assessments and development programs. SO9 Operations with significant potential or actual negative impacts 87-90 on local communities. SO10 Prevention and mitigation measures implemented in 87-90 operations with significant potential or actual negative impacts on local communities. Corruption SO2 Percentage and total number of business units analyzed for 19 risks related to corruption. SO3 Percentage of employees trained in the organization’s 14 anti-corruption policies and procedures. SO4 Actions taken in response to incidents of corruption. 19

Public policy SO5 Public policy positions and participation in public policy 18 development and lobbying. SO6 Total value of financial and in-kind contributions to political 82 parties, politicians and related institutions by country. Anti-competitive behaviour SO7 Total number of legal actions for anti-competitive behaviour, 18 anti-trust & monopoly practices and their outcomes. Compliance SO8 Monetary value of significant fines and total number of 18 non-monetary sanctions for non-compliance with laws and regulations.

119 Social: Product responsibility Customer health and safety PR1 Life cycle stages in which health and safety impacts of NA products and services are assessed for improvement and the percentage of significant products and services categories subject to such procedures. * PR2 Total incidents of non-compliance with regulations and NA voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes. * Product and service labelling PR3 Type of product and service information required by NA procedures and percentage of significant products and services subject to such information requirements. * PR4 Total incidents of non-compliance with regulations and NA voluntary codes concerning product and service information and labelling, by type of outcomes. * PR5 Practices related to customer satisfaction, including results of 71 surveys measuring customer satisfaction. Marketing communications PR6 Programs for adherence to laws, standards and NA voluntary codes related to marketing communications, including advertising, promotion and sponsorship. PR7 Total incidents of non-compliance with regulations and 18 voluntary codes concerning marketing communications, including advertising, promotion and sponsorship by type of outcomes. Customer privacy PR8 Total substantiated complaints regarding breaches of customer 72 privacy and losses of customer data. Compliance PR9 Monetary value of significant fines for non-compliance with 18 laws and regulations concerning the provision and use of products and services.

* The services offered by Mindtree do not have health and safety impact

120 Acronym Expansion ADITI Analog and Digital Theremin Interface BCP Business Continuity Plan BMTC Bangalore Metropolitan Transport Corporation BOD Board of Directors BSE Bombay Stock Exchange Limited BU Business Unit C2 Culture and Competence CBS Common Bus System CETPs Common Effluent Treatment Plants CFC Chloro Fluoro Carbon CIS Corporate Information Systems CMM Capability Maturity Model CMMI Capability Maturity Model Integration CPC Cultural Protection Committee CPP Competitive Pay Point CRO Chief Risk Officer CSAT Customer Satisfaction CSR Corporate Social Responsibility D2R Dream-to-Reality DRP Disaster Recovery Plans EDGES Ethnicity, Disability, GEnder and Sexual Orientation EHS Environment, Health and Safety ELP Emerging Leaders Program EMS Environment Management System ERM Enterprise Risk Management FY Financial year GHG Greenhouse Gas GRI Global Reporting Initiative GJ Giga Joules HFC Hydro Fluoro Carbon HMHB Healthy Mind Healthy Body IGICH Indira Gandhi Institute of Child Health IMTS Infrastructure Management and Technical Support INR Indian National Rupees IP Intellectual Property ISMS Information Security Management Systems ISO International Organization for Standardization ITES Information Technology Enabled Services IT Information Technology KM Knowledge Management KRAs Key Result Areas

121 Acronym Expansion KT Knowledge Transfer Kwh Kilowatt Hour LEED Leadership in Energy and Environmental Design MSA Master Services Agreement MCPM Mindtree Certified Project Managers MGC Mindtree Green Council MOC Missionaries of Charity MPE Management Program for Executives MAKE Most Admired Knowledge Enterprise NAB National Association for the Blind NASSCOM The National Association of Software and Services Companies NOx Oxides of Nitrogen NSE National Stock Exchange of India Limited NVG-SEE National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business NGO Non Government Organization OHSAS Occupational Health and Safety Assessment Sequence pepm per employee per month PIP Performance Improvement Program PLSS Project Level Satisfaction Surveys PMR Project Management Review PPR Project Performance Review PWDs People With Disabilities ROW Rest of the World R&D team Research and Development team R&R Rewards and Recognition RAP Reasonable Accommodation Policy RWH Rain Water Harvesting SHRM Society of Human Resource Management SMAC Social media, Mobility, Big Data / Analytics and Cloud services SOW Statements of Work SOX Oxides of Sulfur SSK Spastics Society of Karnataka SPASTN Spastics Society of Tamil Nadu SPM Suspended Particulate Matter SRP Strategic Recruitment Partners SEBI Securities Exchange Board of India STPs Sewage Treatment Plants TSA Technologists for Social Action UNGC United Nations Global Compact USD United States Dollar VFM Value for Money VA Value Add

122 Feedback and communication We welcome any feedback and suggestions which will further strengthen our sustainability programs.

Contact details: Chitra Byregowda | Head – Sustainability & Diversity | [email protected]

Registered Office:Mindtree Global Village, | RVCE Post, Mysore Road | Bangalore 560 059 | Karnataka, India. Telephone: +91-80-6706 4000 | Fax: +91-80-6706 4100

The report can be downloaded at http://www.mindtree.com/sustainability/mindtree-sustainability-report.pdf

www.mindtree.com