We consider our stakeholders as our partners in our success and we remain committed to maximising stakeholder value, be it shareholders, employees,

suppliers, customers, investors, communities or policy makers. Business background The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues are in excess of US$ 58 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India. Reliance is a big presence in the Indian economy, with annual sales of US$20 billion, a net worth of US$11 billion, and total assets of US$21 billion. Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of backward vertical integration - in polyester, fibre intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production - to be fully integrated along the materials and energy value chain. The Group's activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fiber intermediates, plastics and chemicals), textiles, retail, infotel and special economic zones. Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fiber producer in the world and among the top five to ten producers in the world in major petrochemical products. Major Group Companies are Reliance Industries Limited, including its subsidiaries and Reliance Industrial Infrastructure Limited. Reliance Industries Limited is Indias largest private enterprise, with businesses straddling several sectors and a workforce of 25,000 employees. Its large workforce and extensive operations give it a big stake in the fight against HIV and AIDS. The companys HIV and AIDS program is unusual among those initiated by private companies in India in that it not only promotes awareness of HIV and AIDS but also provides treatment. Another unique feature of the program is its broad coverage: it provides antiretroviral therapy to anyone in the community who is HIVpositive, whether or not that person is an employee of the company. The program began by establishing a wellequipped health center at Hazira, in Gujarat, to provide tuberculosis treatment based on the strategy recommended by the World Health Organization (WHO), known as DOTS (Directly Observed Treatment, Short-course). The center, which also offered information on HIV prevention, later expanded to treatment and other services for AIDS patients. It also provides counseling, education, and training and disseminates information on nutrition.

SUSTAINABLE GROWTH "We have embraced sustainability as our core business strategy. We believe sustainability is the very foundation of lasting success. We will use sustainability principles to drive process innovation, new product development, improving manufacturing efficiencies and reducing material and energy consumption. This commitment is backed by active initiatives on the ground.

Mukesh D. Ambani Vision mission and values for sustainable growth Vision Mission Value Our growth and success are based on the ten core values of Care, Citizenship, Fairness, Honesty, Integrity, Purposefulness, Respect, Responsibility, Safety and Trust SUSTAINABLE DEVELOPMENT In our Company, we have always believed in structured growth and have established Management Systems to guide our progress. Systems are deployed to steer our efforts in various aspects, be it quality management, risk management or environment and safety management. Globally recognized benchmarks in each of these areas are utilised to develop our internal standards and we have taken resolute steps to improve our performance each year. Some of the systems, structures, processes and standards that drive our operations are: Create value for all stakeholders Grow through innovation Lead in good governance practices Use sustainability to drive product development and enhance operational efficiencies Ensure energy security of the nation Foster rural prosperity

Through sustainable measures, create value for the nation, enhance quality of life across the entire socio-economic spectrum and help spearhead India as a global leader in the domains where we operate

Code of Conduct and Values Our code of conduct and values is a reflection of our commitment towards business ethics, transparency and legal compliance. Risk Management Our Companys internal control systems are commensurate with the nature of our business and the size and complexity of our operations. These systems are designed to ensure that all the assets of our Company are safeguarded and protected against any loss and that all the transactions are properly authorised, recorded and reported. We have an internal audit function, which is empowered to examine the adequacy and compliance with policies, plans and other statutory requirements. It is also responsible for assessing and improving the effectiveness of risk management, control and governance process. The internal audit function team comprises well-qualified, experienced professionals who conduct regular audits across our Companys operations. The management duly considers and takes appropriate actions on the recommendations made by the 19 MGI/ASQ certified Black Belts are currently working in different sites. Based on the effective deployment of Six Sigma methodology by the first wave, a new batch for Reliance Certified Black Belt - Wave 2 (RCBB-2) has been launched in January 2011, for which 11 employees have been identified across manufacturing divisions. In all, 354 Black Belts and Green Belts are associated with Six Sigma projects at different sites. To ensure the success of various Six Sigma projects, 1892 team members and supervisory personnel provided active support. As a part of the standardisation of the training and development needs, a web-based examination module has been developed for the certification of Six Sigma Green Belts. In FY 2010-11, 8 employees were certified as Reliance Certified Green Belt (RCGB). SAFETY

In FY 2010-11, our Companys HSE Management System (HSE-MS) has been further strengthened with new initiatives. The HSE-MS have been institutionalized to establish Company-wide safety management objectives, guiding principles and processes. We continue to pursue world-class operational excellence through the HSE Management System initiatives, in strategic partnership with M/s DuPont Sustainable Solutions. In FY 2010-11, our Company implemented the operational discipline framework of 11 characteristics to embed operational discipline in the organisation in 6 major manufacturing sites. Our Companys manufacturing divisions undertook a rigorous selfassessment of operational discipline and are in the process of implementing improvement measures through total employee engagement. In order to ingrain safety culture, a set of Life Protection Rules (LPR) have been introduced in FY 2010-11. The LPR focuses on 10 high risk activities. Complying with the LPR is mandatory for all our employees and for the employees of contractors too. LPR complements our Safety Best Practices and Safety Procedures to be followed at all locations. One of the focus areas was to conduct self-assurance studies for the safety of the community through Process Hazard Analysis (PHA) and Quantitative Risk Assessment (QRA) in plants prioritized on risk basis. Our Companys Central HSE audit programme is a critical component of the HSE governance process, which has been specifically designed to ensure that stakeholder expectations, HSE Policy and HSE Management Standards are being effectively implemented across the Group. The HSE Audit Protocol is based on the HSE Management Standards and systems and performance management principles. The process provides assurance to the Group and the Board that the HSE Management Standards are being implemented and it also identifies best practices that can be shared across our Group. Our Companys HSE systems are aligned with recognized management systems and global best practices. Most of our manufacturing divisions have been ISO 14001:2004 certified for Environmental Management Systems and OHSAS 18001:2007 certified for Safety Management Systems. At the E&P operations, we have adopted the HSE Management System and use the Safety Case approach for the onshore and offshore facilities, to demonstrate high levels of safety integrated into the design and operations through several risk and hazard assessment studies. We have established emergency management systems and regularly check and improve its efficacy through periodic mock drills at various facilities across the entire KG-D6 assets, as well as drilling and CBM operations. Our Companys KG-D6 assets, comprising the Onshore Terminal, Supply Bases and Off-shore facilities, were certified with ISO-9001:2008; ISO 14001:2004 and OHSAS 18001:2007 certification by M/s DNV in April 2010 ENVIRONMENT In our pursuit of excellence in environmental management towards sustainable business development, our Company continues to be committed to develop and implement Environmental Management System (EMS) throughout the Group to measure, control and reduce the environmental impact. In this context, during FY 2010-11, Gadimoga and Jamnagar SEZ manufacturing divisions have instituted ISO 14001:2004. With this, the international environmental accreditation- based management system covers Companys all manufacturing divisions. The management framework is further strengthened with defined structures, roles and responsibilities, group standards, audits and training. Our Company is fully compliant with various environmental protection and health and safety laws and regulations. Prior to the implementation of new projects, the potential environmental impacts are always assessed. The environment impact assessment and risk analysis are performed for all new and major expansion projects and necessary measures are incorporated to mitigate adverse environmental impacts at the planning stage of the project. In our Companys improvement efforts, audits play an important role. The Company has developed three-tier audit systems. Trained and qualified internal auditors perform internally or first party environmental audits of our environment management system at regular intervals. In FY 2010-11, we developed an environment second party audit protocol for our Companys Environmental Standards. The high level environmental audit by the external agency or third party is performed for all manufacturing divisions which include annual audit by Gujarat Pollution Control Board (GPCB) recognized auditors in the State of Gujarat and ISO-14001:2004, audits by the accreditation agencies also at regular frequency. Economic Indicators The direct and indirect economic impacts of our operations cut across geographies. Through our operations, products and services, and community development initiatives, we have emerged as a significant contributor to India's economic development. We continue to generate employment opportunities for thousands across our operations and businesses. Internally, we adopt robust business planning and risk management processes with stringent controls. These processes help us maintain operational stability and ensure regulatory compliance. We ensure reliable and effective financial reporting through integrated financial accounting systems with in-built controls. Our Board of Directors, through a board-constituted Audit Committee, regularly reviews the audit

mechanism. Our audit function is entrusted with responsibilities of ensuring and periodically reviewing control compliance with legal and regulatory requirements including detecting frauds and negligence. Environmental Indicators We pursue excellence in Health, Safety and Environment (HSE) management. The overall responsibility for reviewing and monitoring the implementation of HSE management systems lies with the board constituted HSE committee. We strive for the highest standards of HSE management across our operations while meeting our legal and regulatory compliance obligations. During the year, we undertook a major initiative and developed a 'RILEnvironment Management Process'. The processes include work streams, roles and responsibilities, matrices and performance indicators to monitor our environmental performance. Labour Practices and Work Indicators We strive to provide our workforce with a safe and challenging work environment, enabling them to achieve their potential. Our learning and development efforts are directed towards developing talent for the future. We have specialised career development and succession planning systems and amply reward employees through performance incentives and recognition. We accord highest priority to the safety of our people. Our Process Safety Management (PSM) approach has enabled us to adopt best-in-class safety practices and management systems. We have also established consistent audit protocols for our safety management. Human Rights Indicators We respect the dignity of every individual and our code of conduct guides us in matters such as bribery and corruption, fraud, insider trading, human rights and discrimination. We believe in conducting our business in an ethical manner with due regard to the interests of our stakeholders and the environment. We comply with all regulatory norms and follow international practices for aspects pertaining to freedom of association, prohibition of child labour, protection of indigenous peoples rights and prohibition of forced and compulsory labour. Society Indicators Our contributions to community development are in areas of health, education, infrastructure development (drinking water, improving village infrastructure, construction of schools etc.), environment, relief and assistance in the event of a natural disaster, and miscellaneous activities such as contribution to other social development organisations. We provide and support health services to communities surrounding our operations and work with multiple organisations in combating diseases such as Tuberculosis (TB) and HIV/AIDS. On the education front, our major manufacturing locations provide quality education to the children of all employees and also cater to the needs of surrounding villages. We also proactively work towards developing rural infrastructure. We have undertaken several transformational projects in rural areas including construction of roads, anganwadis (kindergarten schools) panchayat offices and community halls. Reliance Foundation, envisioned to become one of the foremost professional philanthropic organisations in the world, was incorporated in 2010. The Foundation has corporate systems and is a process-driven organisation operating on a not-for-profit basis, with the aim of creating and supporting meaningful and innovative activities that will address some of India's most pressing development challenges. Product Responsibility Indicators We strive to minimize health, safety and environmental impact of our products across our supply chain. We partner with various agencies to promote end-of-life recycling and reuse of our products. Our R&D efforts are directed towards developing cleaner and safer products and alternatives. We adhere to all Indian laws related to marketing communications, including advertising, promotion and sponsorship. OUR STRATEGY ROADMAP Our short-term and long-term plans of achieving excellence in sustainability initiatives are as below: Embed life cycle and systems thinking in all business processes. Reduce environmental footprint by deploying appropriate systems and technologies. Move towards a low carbon business enterprise. Strengthen the talent pool to cater to our diverse and integrated nature of business. Create a triple bottom-line accounting system.

SUSTAINABILITY STRATEGY At Reliance, we have made sustainable development a cornerstone of our business strategy to achieve sustainable and profitable growth. We adopted principle of materiality and prioritized key issues after collective deliberation by management and key stakeholders. These issues include; Our sustainable development strategy draws on our proven technology and risk management framework and evolves from the materiality analysis that we have been performing over the years. The focus areas under our sustainability development strategy include the following: Energy Security, Health & Safety, Corporate Governance and Transparency, Product Responsibility, Climate Change and Waste Management. As a company involved in the energy and materials value chain, we are committed to responsible use of energy. Our systems and processes ensure optimum energy usage by continuous monitoring of all forms of energy and increasing the efficiency of operations. Our endeavour in exploration & production of oil & gas is to ensure energy availability for India, minimise dependence on imported crude oil and reduce exposure to vagaries of crude oil prices. Our contribution will increase Indias indigenous production of hydro carbons by over 40 percent in the next 18 months. Natural gas - a low-carbon, low polluting green fuel that will flow from our fields will create value and be beneficial to a large section of our society. We are building transformational initiatives to promote use of alternative energy. OUR STRATEGIC PILLARS OUR PERFORMANCE Energy Security We firmly believe that growth through innovation will give us a big competitive advantage and will be a key differentiator. Our goal is to make RIL one of the most innovative companies in the world and to achieve breakthrough growth in revenues and profits by creating and implementing sustainable solutions. We are developing an innovative ecosystem that builds on organizational systems and processes, talent management, open innovation and world class R&D facilities. With five oil discoveries in the Cambay basin, one gas discovery in the Krishna Godavari basin and entry into the unconventional gas business, we continue to deliver on our promise of securing energy supplies Growth through Innovation Innovation forms the core of our sustainability strategy and Reliance Innovation Council drives our innovation agenda along with the Reliance Technology Group and Group Manufacturing Services Health and Safety Safety overrides all production targets this vision drives us to continuously look for ways to achieve zero accident at workplace. Our vision is to develop a dedicated pool of safety professionals and lead in safety performance across our operations by focusing on process safety and behavioral safety. Environment Protecting the environment and preserving natural resources is a high priority area. Through annual environment plan and business targets, we identify projects and take action to reduce water consumption and become carbon neutral and achieve maximum possible recycling and reuse of wastes. We set targets for key environment-related performance indicators such as material intensity, GHG emissions, air quality, water consumption, effluent discharge, waste generation and disposal, and conservation of bio-diversity. For us, product responsibility is to offer efficient and reliable product and services with minimum environmental impact throughout the life cycle of the product fromthe cradle to the grave. Our product and services are designed, manufactured and delivered with principle consideration of customer safety. Product Responsibility Social welfare and community development is at the core of our Corporate Social Responsibility (CSR) philosophy. Our strategy is to have close and continuous interaction with the people and communities around our manufacturing divisions to bring qualitative changes and support the underprivileged. We contribute in the area of health, education, infrastructure development (drinking water, improving village infrastructure, construction of schools etc.), relief and assistance in the event of a natural disaster and other social initiatives. Our aim is to provide comprehensive health services covering preventive, promotive, and curative and community health care services.

We remain committed to producing products that meet international standards and communicating the key aspects of these to our customers. We comply with EUREACH requirements of enhanced protection of human health and environment

Social Institution Building Made significant investments in E&P of O&G to secure energy supplies Implemented systems to monitor and measure sustainability performance Introduced sustainability awareness programmes in the intranet Formed the Reliance Innovation Council Sustainability report assured by an independent assurance provider We aim to transform lives of the underprivileged sections of our society through our efforts in the following areas: rural development, livelihood programmes, education. RTG is involved in developing cutting-edge technologies such as fuel cells, carbon fibers, bio-fuels, and gasification of several types of feedstock Some of these projects include: Selection of FCC catalysts and additives for improved conversion and yields Processing of cheaper and heavier crudes to widen the crude blends window Propylene yield improvements and benzene reduction in refining De-salter operation improvements Development of high performance additives for poly olefins Development of clarifiers for PP grades We have developed a health improvement index and recorded a 2% drop on the illness index We have achieved 0.09 loss time injury frequency rate at our manufacturing divisions We have introduced life protection rules focusing on 10 high risk areas Implemented 85 six-sigma projects during the year resulting in financial savings worth INR 261.1 million 38 registrations with EU-REACH We are catering to the educational needs of over 13,000 students through a network of nine schools across India and benefitting thousands of students from under previledged sections of society We have performed over 9,000 free corneal graft surgeries through Project Drishti Reliance Foundation has launched Mission BIJ (Bharat India Jodo), with the aim to make farming a profession of first choice by empowering farmers with small land holdings Environment To our Company, sustainable development implies the need to identify and act upon environmental risks and opportunities. Our efforts aim towards integration of environmental aspects into our business processes. Produced 7.95 Million Barrels of crude oil and 720 BCF of natural gas from KG D6 Produced 9.3 MMBL of crude oil and 52.1 BCF of natural gas from Panna-Mukta Produced 1.2 MMBL of condensate and 95.2 BCF of natural gas from Tapti Jamnagar achieved 110% capacity utilisation at our new SEZ refinery All our manufacturing units and upstream facility at KG D6 have received certification for adherence to ISO 14001 management systems During the year, our Company developed its Environmental Management Process that includes work streams, roles and responsibilities matrix and performance indicators to monitor progress We have developed a second party audit protocol for Companys environmental standards We have joined the Indian Coast Guard and the State Pollution Control Board's initiative of beach cleaning at Kakinada in October 2010 We achieved COD of 75 mg/l in ETP effluent through in house research and used effluent sludge to generate biogas at Hazira Manufacturing Division STRATEGY MILESTONES Sustainability underpins our business approach and our strategy is aligned with the principles of materiality. It involves understanding the linkages amongst people, processes and resources. The strategy includes ensuring, through a robust governance mechanism, energy security, development of cleaner products and a safe environment for our people. We are selectively entering into strategic partnerships to ensure our sustainability objectives are

achieved and so that we remain leaders in the energy space. Our sustainability strategy aims at eliminating risks and creating new business opportunities, and our strategic objectives are aligned with the principles of Responsible Care. Our strategic pillars include: Energy Security, Health & Safety, Corporate Governance & Transparency, Product Responsibility, Climate Change and Waste Management. RIL'S SUSTAINABILITY REPORTING INITIATIVE

Reliance commenced its sustainability reporting in FY 2004 05 and has made significant progress since, in expanding the scope enhancing our mode of engagement and planning the path forward. This report, the seventh in our journey, presents the performance of our Company across all three bottom lines and showcases the implementation of our sustainability strategy. Report Boundary This sustainability report aims to provide information on our performance for FY 2010 11. The scope of the report includes our plants at the following locations: Allahabad, Barabanki, Dahej, Gadimoga, Hazira, Hoshiarpur, Jamnagar, Nagothane, Nagpur, Naroda, Patalganga, Silvassa and Vadodara. It also covers our various businesses and entities, such as Exploration and Production of Oil & Gas, Refining and Marketing, Petrochemicals including Polymers, Chemicals, Fibre Intermediates and Polyesters, the Dhirubhai Ambani Foundation, the Reliance Rural Development Trust and the Reliance Foundation. Standards and Guidelines used to develop this report This report has been developed according to GRI G3 guidelines and is aligned with six strategic pillars, which form the core of our sustainability strategy. The materiality of specific topics and indicators has been determined by using internal and external conventions, including: United Nations Global Compact Principles on Environment, Human Rights and Corruption. American Petroleum Institute / International Petroleum Industry Environmental Conservation Association (API / IPIECA) Voluntary Sustainability Reporting Guidelines. World Business Council for Sustainable Developments Focus Areas. Sustainability challenges facing our business identified through our risk management processes. RILs core values and internal management systems.

Global Reporting Initiative Guidelines (GRI) The report confirms to GRI G3 A+ application level criteria. The report has been independently assured by M/s. KPMG, India. Our Company features as an organisational stakeholder of the Global Reporting Initiative. Our Company intends to use the GRI G3.1 United Nations Global Compact (UNGC) principles on Human Rights, Environment and Corruption Although we are not signatories to the UNGC principles, we consistently report on our Communication on Progress (COP) in promoting and implementing UNGC principles in our sustainability report. American Petroleum Institute / International Petroleum Industry Environmental Conservation Association (API / IPIECA) guidelines We continue to present the linkages to API /IPIECA 2005 guidelines in our report, which provide guidance on voluntary disclosures on sustainability parameters for the oil and gas sector. In our future reports, we plan to provide linkages to the API/IPIECA 2010 guidelines. World Business Council for Sustainable Developments (WBCSD) Development Focus Areas We are a member of the WBCSD, pursuing our commitment towards playing an active role in transforming business and shaping society. We represent on the governing council of WBCSD, and in November 2010, our CMD Mr. Mukesh D. Ambani was re elected as the Vice Chairman of WBCSD's executive committee. Our mantra for transformation and growth mirrors WBCSD's position: "Business is good for development and development is good for business." Our endeavour in this report is to provide a comprehensive performance review of our Company, enabling diverse stakeholders to assess the health of the Company.

RIL'S SUSTAINABILITY REPORT RIL commenced reporting, annually, on its triple-bottom line performance, from FY 2004-05. All its sustainability reports are externally assured and are GRI checked. The maiden report received in-accordance status from GRI and all subsequent reports are GRI Checked A+ application level reports. RILs maiden sustainability report, titled Life, is the first sustainability report from the Indian Oil & Gas sector and was based on the internationally accepted Global Reporting Initiative's (GRI) Guidelines 2002. Subsequent reports are based on G-3 guidelines - the new set of sustainability reporting guidelines launched by GRI in October 2006. Further, from FY 2006-07, in addition to referring GRI G3 guidelines, RIL refers The American Petroleum Institute / The International Petroleum Industry Environmental Conservation Associations (API/ IPIECA) guidelines and The United Nations Global Compact (UNGC) principles and have aligned the sustainable development activities with the Focus Areas of The World Business Council for Sustainable Development (WBCSD). RIL articulates its Sustainability Vision, Mission & Values, the Sustainability Strategy and Road Map in its report for FY 2007-08. Financial Year 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 Title of the Sustainability Report New Businesses. New Technologies. New Partnerships. Think Sustainability, Think Transformation, Think Reliance Transforming Tomorrow, Today. Transforming Life, Redefining Tomorrow. Small Acts, Big Impact. My Reliance, My Life. Life GRI Application Levels GRI Checked A+ GRI Checked A+ GRI Checked A+ GRI Checked A+ GRI Checked A+ GRI Checked A+ In-Accordance

Commitment : RIL is an organisational stakeholder of GRI since 2007. On invitation to Shri Mukesh Ambani, Reliance Industries Limited became a Council Member of World Business Council for Sustainable Development (WBCSD) in 2007. Shri Mukesh Ambani has been reelected as Vice Chairman of WBCSD's Executive Committee for a second consecutive term in 2010.

Recognition : Amongst 'India's 10 largest companies by market capitalisation', International Finance Corporation (IFC) [Word Bank Group] has rated RIL's Sustainability Report's reporting quality as "good" - the highest rating given in this report, in 2009. RIL is the only Indian company to get a perfect score from CLSA Asia-Pacific Markets (CLSA) in a list of Asia's best companies in terms of CSR and termed the Company as the region's 'corporate good guy'. In its 'Ethical Asia' 2010 report, CLSA has named RIL among its top picks for providing very good data and going well beyond required disclosure.

Feedback :

RIL value peoples suggestions and invite feedback on RIL's Sustainability Reports

THETATAGROUP

The Tata Group comprises operating companies in seven business sectors: Materials, Engineering, Information Technology and Communications, Energy, Services, Consumer Products and Chemicals. The Group was founded in the last quarter of the 19th century in India when the country had just set out on the road to gaining independence from British rule. Consequently, the founders of the Group aligned business opportunities with nation building. This approach remains ingrained into the Groups ethos even today even as it spreads its operations to other geographies. The Tata Group is today Indias largest conglomerate with revenues of $67.4 bn in the fi nancial year ending March 31, 2010. The Group companies had 396,517 people on their rolls on March 31, 2010. Its 28 publicly listed companies have a combined market capitalization which is one of the highest among all business houses in India and a shareholder base of over 3.5 million. Group companies export products and services to over 85 countries and have operations in over 80 countries. The Tata companies share a set of five core values derived from the Groups early beliefs which even today drive all business decisions. These values are : Integrity, Understanding, Excellence, Unity and Responsibility. The Group and its companies have been distinctive in their adherence to business ethics and their commitment to corporate social responsibility. This legacy has earned the trust of the Groups stakeholders in a measure few business houses can match.

The Tata group has emerged as the "top corporate leader" in sustainable development among Indian companies, according to the Sustainable Development Index that was launched by UK telecommunication major British Telecom. TCS recommends that Tata Group (Tata): Refine its internal definition of sustainability,

Create a separate subsidiary to coordinate, manage, communicate, and expand sustainability efforts across every business unit, and Establish a market-specific global strategy tailored to the unique challenges and opportunities of each country and business.

These changes will allow Tata to optimally position its economic, social, and environmental sustainability efforts while addressing the companys growing global presence, the evolving definitions of sustainability, and the increasing demand from stakeholders for measurement and transparency. Internally, the company will develop a concise definition of sustainability and a Sustainability Credo to guide corporate innovation and evaluation efforts. A key element of the ten year sustainability strategy recommendation is the creation of Tata Sustainable Solutions (TSS), a wholly-owned subsidiary that will allow the company to centralize disparate initiatives and provide role clarity, financial and measurement transparency for all Tata companies. While the structure of TSS will allow the company to raise additional capital and expand its sustainability efforts, TSS will be closely integrated with every Tata company, ensuring that the culture of corporate social responsibility continues and that the unique perspective and innovations from each company are nurtured and strengthened. This subsidiary will allow Tata to formalize specific initiatives and goals, putting a formal framework in place for leadership and organizational continuity. The organizational structure and operating processes of TSS will be outlined in detail in our recommendations. The sustainability strategy includes a number of voluntary initiatives tailored to the unique circumstances of Tatas diverse businesses and its global areas of focus. Our recommendations include a ten year timeline, valuations, and specific implementation strategies for Tatas core lines of business. Key elements of the strategy include entry into sustainability software consulting, coordination between the Chemical, International, and Motor companies to create End of Life Vehicles (ELV) and Cradle to Cradle (C2C) processes, and expanded and increased measurement of company efficiency efforts. SUSTAINABILITY STRATEGY Known as progressive and forward thinking in its Corporate Social Responsibility (CSR) initiatives for over 140 years, the Tata Groups past CSR initiatives have fallen under four pillars: 1) Philanthropy, 2) Emergency Response, 3) Specific Community Initiatives, and 4) Quality Management Practices. Supporting these pillars are a variety of programs that have organically developed over the years to create an internal structure for executing the organizations sustainability efforts. This situation occasionally creates challenges in measuring effectiveness and economic benefits of CSR, which obscures the return on investment (ROI) and could diminish future funding. The ten year sustainability strategy is designed to complement the business growth of the organization. This global growth will focus on the following industries: hotels, automobile, steel, software consulting, energy, chemicals, tea, engineering, and communications. It will target the following markets: Brazil, Canada, China, Gulf Cooperation Council (United Arab Emirates, Saudi Arabia, Oman, Bahrain, Kuwait, and Qatar), Germany, the Netherlands, South Africa, Sri Lanka, Thailand, the United Kingdom, United States, and Vietnam. To continue its global growth while maintaining its practiced sustainability, Tata needs to address creating and capturing value, while addressing uncertainty in its global sustainability strategy. Defining Sustainability for Tatas Future In order for the ten year strategy to be developed, the definition of sustainability itself needs to be refinement. Tatas current definition of sustainability was developed as part of a series of group-wide meetings. Although Tata has had a great deal of success in preserving a culture of sustainability, the rapid global expansion of the company threatened to dilute the power of this working definition. Our team proposes a refined definition of sustainability: Corporate Sustainability is a local, national, and global endeavor for creating long-term economic, social and financial growth for the enterprise and its stakeholders. This definition would be easier for Tata

employees to internalize and will allow for interpretational flexibility, as there are continually evolving worldwide definitions of sustainability.1 Beyond a basic corporate definition, we recommend Tata promote the continuity of sustainability innovation through a set of guiding principles, a Sustainability Credo, that provides employees with a roadmap for evaluating social business practices. The Credo below provides a concrete, measureable way to define the operation and implementation of sustainability initiatives. Tata must first seek parity and sustainable best practices across their collective group of companies. Points of parity must be established to measure the success of sustainability efforts over the next ten years. The Tata Group must leverage its areas of expertise across all businesses going forward to enable the sustainable development of the entire group. These efforts include consistent employee equality and management training programs, centralized innovation practices that look at all major businesses, formalized water and waste conservation policies for companies operating in particular regions, Leadership in Energy and Environmental Design (LEED) certification for all new construction, and energy efficiency initiatives for all existing buildings.

Figure 1: Tata Group Sustainability Credo

1) Everything we do within Tata can be re-examined through a sustainability lens. 2) Sustainable initiatives strive to add value to Tata's enterprise and shareholders over a reasonable time frame. 3) Social philanthropy and development initiatives are a core competency and should be treated as an essential output of the organization. 4) Sustainable creativity and knowledge should be shared across all Tata organizations and outside of our company. 5) Tata's sustainability development should be managed with the same rigor, focus, and precision as other Tata business.

6) All sustainable initiatives should be transparent, measurable, and auditable to all stakeholders. 7) Our businesses should inspire new sustainable ideas, and our sustainability efforts should inspire new business ideas. 8) Sustainable thinking and implementation is a key skill that every future Tata manager should possess. 9) Tata's companies will encourage their business partners and stakeholders to achieve sustainable business practices. 10) Our initiatives should lead environmental, economic, and social development in India and the world. Our efforts go beyond a "compliance" mindset and accomplish what was once thought impossible.

Creation of Tata Sustainability Solutions (TSS) Tata currently has four pillars of sustainability within the organization Tata Trusts, Tata Relief Committee (TRC), Tata Council for Community Initiatives (TCCI), and Tata Quality Management Services (TQMS). Tata also has individual think tanks (such as the Tata Chemicals Innovation Center) and initiatives each business silo, with annual groupwide meetings devoted to sharing best practices. The individual responsibilities of TCCI and TQMS overlap, although TCCIs functions are more organic and less rigid than the TQMS process. This organizational structure can be rightly credited with maintaining Tatas cultural core values. However, much of Tatas sustainability measurement is ad hoc. An all-encompassing sustainability report is not currently being produced, leaving uncertainty around the funding and returns of Tatas sustainable investments. Finally, this loose four pillar structure is likely to become harder difficult to maintain and navigate as the companys global growth continues. One solution that would allow Tata to continue sustainability in its rapidly-expanding operations is the creation of a company subsidiary devoted to social and environmental stewardship. This subsidiary, TSS, would function like any other Tata business unit (Tata Motors, Tata Chemical), except that it would operate at first as a cost center/ support function rather than a profit center. TSS would centralize a number of company functions, including educational trusts, TRC, and TCCI. Local Sensitivity with Global Reach Once the new companys sustainability support structure is in place, business unit management (in collaboration with TSS) can begin exploring initiatives that reflect each units target market need, their unique business expertise, and the future direction of sustainability within the community. Although these initiatives will be tracked in aggregate by TSS, the vast majority of the initiatives (with the exception of certain Social Works projects) will reside on the books of each business and must pass the same EVA analysis as any other project. The determination of what constitutes and EVA-supported initiative versus traditional social philanthropy will be determined by the TQMS process. Our group has several project proposals for Tata management to consider when implementing the ten year plan. These projects resulted from a global opportunity analysis of Tatas twelve target markets. The unique sustainability needs of each region were considered in our proposals; for instance, the US and Europe already have numerous social welfare programs in place, so the focus in those areas was placed on environmental opportunities.

Leveraging Tatas CSR core competency into a sustainability software consulting practice,

Increase Tata Teas competitiveness by formalizing sustainability efforts through Rainforest Alliance Certification, Efforts to reduce energy usage through conservation efforts in the hotel chain and through supply chain management, and ELV initiatives for Tata Motors.

The framework needed for successful sustainable expansion will include the new Sustainability Credo, the creation and staffing of TSS, and management of internal sustainability practices in Tata offices and businesses across the Tata Group. Our action plan to implement the ten year sustainability strategy includes short and long term steps to reach our goals (see Exhibit 3 in Appendix for assumptions, additional sources, and financial projection). CORPORATE SUSTAINABILITY Established in 1932, the Sir Dorabji Tata Trust is one of Indias oldest, non-sectarian and philanthropic organisations. With its Allied Trusts, it forms the largest single private sector donor entity in the country. Devoted to working on the twin goals of providing succour to the needy and building up the best, it operates in a dynamic environment promoting excellence and relevance in areas of human endeavour. The Allied Trusts administered by the Sir Dorabji Tata Trust are the JN Tata Endowment for the Higher Education of Indians, Lady Tata Memorial Trust, JRD Tata Trust, Jamsetji Tata Trust, RD Tata Trust, Tata Education Trust, Tata Social Welfare Trust and JRD and Thelma J Tata Trust. The Trusts make three types of grants: Grants to Institutions set up or supported by the Group Grants to Non-Government Organisation (NGO) Individual grants In most of the thematic areas, the Trust focuses its grants on well-defi ned initiatives. Some of its key initiatives are mentioned below : Central India Initiative (CInI) : CInI involves a series of livelihood projects across the central India region, addressing core issues aimed at alleviating poverty amongst tribals in a sustainable manner. Himmothan Pariyojana : The initiative addresses some of the key rural development issues confronting the inhabitants of the Himalayas, on a systematic basis. Kharash Vistarotthan Yojana (KVY) : This tackles issues related to sea water ingress on the Gujarat coastline through fi eld projects and coordination with the state government. Drought Proofi ng in West Rajasthan : The objective is to develop replicable models for drought proofi ng in the desert regions of Rajasthan. Reviving the Green Revolution : The initiative involves a series of interventions encouraging crop diversifi cation in Punjab and Tamil Nadu to tackle the negative impact of the rice-wheat cropping system, whilst also focusing on Integrated Pest Management in various crops to enhance productivity. North East Initiative (NEI) : The initiative addresses livelihood issues of the North-eastern states. Currently, the NEI focuses on the three hill States of Arunachal Pradesh, Mizoram and Nagaland and opportunities for partnerships with state governments and local organizations are being explored in these States. Sukhi Baliraja Initiative (SBI) : The initiative aims to promote a holistic livelihood promotion strategy for the Vidharbha region of Maharashtra, with the key objective of reducing distress among the farming community by enhancing livelihoods of 25,000 households across 300 villages.

Drinking Water Initiative : The initiative aims to provide potable water and promote sanitation in order to enhance the health of rural communities. Notably, community and individual based drinking water interventions are dovetailed with sanitation and hygiene education. Currently, the Trust supports drinking water and sanitation projects in around 450 villages across the country, including salinity affected villages in coastal areas of Gujarat, fl uoride affected villages in Andhra Pradesh, Himalayan regions of Uttarakhand, etc. Sakh Se Vikas : This initiative consolidates and expands community-based microfi nance in Rajasthan by strengthening livelihoods and reducing vulnerabilities. Whilst strengthening linkages between microfi nance and development, the Trust is also supporting a large community-based microfi nance programme in South India. Institution Building (IB) Initiative - Roopantaran : This initiative focuses on creating a cadre of people to augment IB practices in development organisations; creating a community of IB practitioners for knowledge building and facilitating IB services to select organisations, preferably existing partners, in transition. Youth & Civil Society : Within this initiative, a clutch of youth-focused grants initiate discussion and refl ection on roles of civil society, poverty and deprivation, create avenues to explore and know more about the development sector, while building their own livelihoods. An effort is also made to encourage wider mainstreaming of youth development as an approach to community development. Parag : This is the Trusts Publications Initiative and focuses on publication of books in various Indian languages, supporting professional development among illustrators, writers and publishers and dissemination of professional writing, besides supporting networking among publishers and educationists. District Education Initiative : This focuses on improving the quality of elementary teaching-learning at block or district levels through close collaborations with government functionaries, community members and government schools. Districts selected for this intervention are : (i) Chamrajanagar and Yadgir in Karnataka; (ii) Nandurbar in Maharashtra; and (iii) Khunti in Jharkhand. Teacher Resource Centres Initiative : Recognising the importance of robust professional development of teachers for sustaining lasting changes in elementary education, the Trust focuses on strengthening of teacher education programmes, besides sustaining development of teachers through supporting Teacher Resource Centres. Institutional Grants The Sir Dorabji Tata Trust and the Allied Trusts have pioneered several leading institutions, the first of their kind, in India, and in doing so have created centres of excellence in several fi elds particularly medicine, science and education. Institutions supported from the trusts include : Indian Institute of Science, Karnataka Tata Institute of Social Sciences, Maharashtra Tata Memorial Centre, Maharashtra Tata Institute of Fundamental Research, Maharashtra The Tata Agricultural and Rural Training Centre for the Blind, Gujarat National Centre for the Performing Arts, Maharashtra National Institute of Advanced Studies, Karnataka Foundation for Revitalisation of Local Health Traditions, Karnataka Centre for Study of Science, Technology & Policy, Karnataka Tata Medical Centre Trust, West Bengal Tata Education and Development Trusts, Maharashtra Non-Government Organisation (NGO) Grants The pattern of grant making support extended to NGOs is in accordance with the chosen strategy. The grants are made in six thematic areas : Natural Resource Management and Rural Livelihoods Urban Poverty and Livelihoods Education Health Civil Society, Governance and Human Rights Media, Art and Culture

INDIVIDUAL GRANTS The Trusts provide merit and need-based educational assistance as well as medical grants to deserving individuals. Medical The increasing costs of medical treatment places a huge burden, especially on those from the economically weaker sections of society. The Sir Dorabji Tata Trust and JRD Tata Trust extend fi nancial assistance to meet the cost of medical treatment, with the JRD Tata Trust mainly focussing on the relatively younger age group, who with such medical assistance can go on to live a better quality of life. Education and Travel The Sir Dorabji Tata Trust gives fi nancial assistance for education by way of : General education grants for studies in India after taking into account factors such as academic record, fees and the economic background of the family Scholarships for undergraduate studies in India Study in Urban and Rural Community Development Scholarships by the JRD Tata Trust are given with a view to fi nancially assist promising young students pursuing their graduation and post graduation courses, subject to the eligibility criteria set out on merit basis. The JN Tata Endowment for the Higher Education of Indians (established in 1892 by the founder, Jamsetji Tata) selects candidates of exceptional merit and assists them by way of loan scholarships, to pursue higher education at some of the best institutions in the world. The Jamsetji Tata Trust support JN Tata scholars by way of gift awards

SPORTS
The Tata Group was the fi rst industrial house to encourage sporting talent in India. The Groups interest in sports traces its roots to its founder, Jamsetji Tata. When the city of Jamshedpur was being planned in the early 1900s, he had the vision to realise that sports is an integral part of any city plan and wrote to his sons to ensure that the city had wide streets, lots of trees, and grounds for cricket, hockey and football. JRD Tata encouraged sportspersons in the Group, enabling several Tata employees to play a sport and excel in it and earn laurels for the group. It was under his charge that the Tata Sports Club came up (in 1937) as the channel for sportsmen in the group to fi nd their expression. The Club, a Group effort involving employees from different companies, was supported by people who were either employees or on contract with a Tata Group company. The Tata Group has considered a range of sport as worthy of support. The Tata Football Academy, the Tata Archery Academy and the Tata Steel Adventure Foundation are some initiatives promoted by the Group engaged in identifying and inducting talented youth and providing coaching and training facilities. Over the years, the support of the Group has been instrumental in the rise of several international sports stars in virtually every game including cricket, hockey, badminton and athletics. In its honours list, the Group includes 43 Olympians, fi ve world champions, 38 Asian Games and Asian Championships winners, eight Commonwealth Games winners, eight Padma Shree awardees and 28 Arjuna awardees. THE TATA COUNCIL FOR COMMUNITY INITIATIVES Tata Index for Sustainable Human Development Taxonomy The Tata Council for Community Initiatives (TCCI) is a unique initiative that lends structure to the Tata group's approach of sustainable development while driving its community engagement and improvement programmes. It is a centrally administered agency whose purpose is to help Tata companies and employees engage in developing the community through specific processes. TATA have adopted a business model to drive social responsibility efforts within the group because that way you ensure a huge network. Also, the emphasis on measuring the impact of these programmes is greater now than ever before. The Index will help structure our efforts and quantity their effect on the communities and

people they are aimed at." The Index is actually a set of guidelines for Tata companies looking to fulfil their social responsibilities, and it is the third set of such guidelines crafted by TCCI. TCCI was established in 1994 to bring together good practices within the Tata group in the sphere of corporate sustainability. Its charter is extensive, embracing a range of sustainable development initiatives such as community outreach, environmental management, biodiversity restoration, climate change initiatives and employee volunteering. TCCI is also involved in assisting Tata companies address sustainability reporting as per guidelines set by the Global Reporting Initiative. It is the focal point for the UN Global Compact in India, which has 42 Tata companies as signatories, the highest in the world from a single business group. In collaboration with the United Nations Development Programme (India), TCCI has crafted the Tata Index for Sustainable Human Development, a pioneering effort aimed at directing, measuring and enhancing the community work that Tata enterprises undertake. The Index provides guidelines for Tata companies looking to fulfil their social responsibilities. TCCI's participatory network is headed by Kishor Chaukar, a member of the Tata Group Corporate Centre, and includes chief executive officers of major Tata companies. The TCCI agenda is largely driven by employees. Tata executives, facilitators and volunteers provide impetus to the TCCI network through their conviction, dedication and involvement in the work that is undertaken. Tata Index for Sustainable Human Development Taxonomy The need for reporting all actions on the corporate sustainability and social responsibility dimensions of business is now recognised across industries. However, given the wide scope of the subject and the absence of any standard, objective and quantifiable way of reporting, even organisations belonging to the same sector and reporting to the same regulator tend to adopt different methods for reporting on their sustainability initiatives and their impact on society and the environment. The Tata Index for Sustainable Human Development provides a way of fixing objective coordinates of organisations on a comprehensive scale. This is done by a team of internal and external assessors who jointly analyse the impact of the organisations vision, strategies, and systems and processes on all stakeholders. The Tata Council for Community Initiatives has formed a partnership with eXtensible Business Reporting Language (XBRL) a global standard for the exchange of business information to create a social and environmental dimension and to co-create significant sustainable value to the existing form of XBRL as a special offering. The main purpose of this offering is to set business reporting and information management in the emerging triple bottom line context, as well as in the larger context of integrated business reporting. The taxonomy is specially designed for enlightened businesses, investors, governments and regulators, enabling them to make informed choices and decisions that will sustain their own and their stakeholders interests. The UNDP has termed the Index a trendsetter, and other organisations have also praised it. TCCI has been invited to make presentations on the Index by the World Business Council for Sustainable Development in Geneva and by the Federal Department of Community Services, Australia. The Confederation of Indian Industry has asked for 200 copies of the Index to send to its members. Community development is a way of life for the Tatas. "With the Index in place, we can walk the talk coherently and systematically." The challenge India faces in lifting its people on the social development

scale is immense. TCCI is playing a small part in helping the country overcome the odds in this battle. TCS SUSTAINABILITY REPORTING SUSTAINABILITY REPORTING Corporate Governance TCS upholds the Tata groups philosophy of strong corporate governance, characterized by a high level of management accountability, fiscal accountability, transparency, fairness and protection of minority shareholder rights. The Board of Directors, the various Committees of the Board and the Senior Management team comprise the Corporate Governance structure, with the Tata Business Excellence Model and the Tata Code of Conduct providing the guiding framework for good governance. The Board itself has been put together with care, the six independent Directors representing an unparalleled body of experience and thoughtleadership in managing large global corporations, in corporate governance, compliance and sustainability. The Board supervisory function is greatly strengthened through structures that minimize conflict of interest, by having independent directors head key committees and by committing sufficient time over eight sittings throughout the year to review the Companys strategies and operations in detail. Sustainability of Business Performance Demand-side Sustainability The continued growth of the global market for IT Services, ongoing shift towards more offshore outsourcing and our currently low marketshare (<0.6% of global market) leave us with considerable headroom for future growth. We continue to expand our addressable market by broadening our service offerings and geographical coverage. Importantly, we are leveraging domain expertise and higher-end selling for proactive demand creation rather than reactive demand fulfillment. TCS has built a strong foundation a global sales and delivery infrastructure, a scalable supply-chain, mature delivery processes, a best-in-class quality management system, robust information security and data privacy controls, a strong R&D program and an organization designed for agility for sustaining future growth. Our strategy for longer term sustainable growth is built around (a) customer-centricity, (b) full services capability, (c) GNDM (d) strategic acquisitions and (e) new, non-linear businesses. Financial Sustainability Ours is a strong cash-generating business with sufficient operating cashflows to cover our working capital needs. At any point in time, we hold sufficient cash to be able to tide over any financial stress and also to fund strategic acquisitions. Historically our growth has been funded mostly through internal accruals. Nevertheless, other sources of funds are readily available given our strong balance-sheet, high RoE, consistent record of delivering value to shareholders, and favorable credit ratings from international credit rating agencies. We have a robust enterprise risk management framework that identifies various financial risks that the company faces based on which TCS has been taking suitable mitigative steps. Supplyside Sustainability Our recruitment processes and training infrastructure have proven their ability to scale up in attracting sufficient talent to support our future growth. In FY2010, we recruited over 38,000 employees, half of whom were fresh graduates. Our partnerships with universities and colleges improve the quality of engineering education and thereby expand the proportion of employable graduates. An added benefit is better brand recognition. We are expanding the talent pool available to sustain future growth by encouraging diversity, local hiring, inclusive hiring and through a scalable program to hire science graduates (who constitute a much larger stream of fresh graduates than engineers). We have the best-in-industry employee retention rates (89% in FY2010), attributable to an empowering work culture, world-class facilities, structured learning and development programs, well-defined career progression roadmaps and opportunities to realize ones full potential.

Talent Acquisition A most critical component of sustaining the Companys growth trajectory has been the its ability to attract good talent in sufficient numbers and to successful scale up the talent acquisition process. The capacity and capability needs to meet short, medium and long-term business plans drawn up by business units and corporate functions serve as the basis for our global workforce planning. The consolidated requirements are part-fulfilled by re-skilling / up-skilling existing unallocated associates and the balance fulfilled through focused drives by the Talent Acquisition Group. Experienced professionals are recruited through online jobsites, head-hunters, recruitment agencies and through employee reference schemes. Other sources of experienced talent include strategic initiatives like M&A and In-sourcing. On-campus recruitment of fresh engineering graduates plays a very significant part in the Companys talent acquisition strategy, making up almost half of the total number of gross hires in any year. Consequently, the Company is heavily invested in building strong relationships with universities across the world and improving the quality of academic training. In FY 2010, TCS recruited 38,063 employees on a gross basis (FY 2009: 35,345 employees excluding inorganic addition), a year-on-year increase of 7.7%. Of this, 18,804 i.e. 49.4% of the gross hires were fresh graduates. Sustainable work environment TCS is committed to provide its employees a safe and comfortable work environment, going beyond accidents, injuries and occupational health hazards, to general the physical and mental health and wellbeing of associates and their families. We have implemented an Occupational Health and Safety Management System (OHSMS) and have been recommended for enterprise wide certification for OHSAS 18001:2007 and ISO 14001:2004 for 67 facilities (including 7 overseas facilities). TCS facilities located in various geographies comply with all local legal and statutory requirements related to occupational health and safety. We have a Hazard Identification and Risk Assessment process (HIRA) to identify and analyze the levels of risk associated with the various activities at each the facility. Risks related to associate activity in our facilities are low and consist of STF (slips, trips and falls), vision-related problems from staring for long at computer monitors, ergonomic issues related to long sedentary hours and work station design, illumination, thermal comfort, indoor air quality, food and water hygiene-related issues etc. Community Engagement On account of our unique ownership structure, nearly half the dividend amount paid out by TCS goes to the various philanthropic trusts that own Tata Sons Ltd, into funding the various community initiatives they support. Positive economic impact: With large-scale employment generation direct and indirect in every geography and payment of taxes in 21 countries, TCS has a positive economic impact in all the communities we touch. Putting IT in Community: We build IT solutions that address key community issues. In addition to grassroot-level e-governance solutions that greatly empower citizenry, TCS has built literacy training software, mobile-based advisory services to farmers, a helpline for children in distress, MIS systems for NGO partners etc. Corporate Social Responsibility: we undertake philanthropic work on our own and leverage a large, global group of volunteers to engage with local communities directly, or through select NGO partners, in our targeted areas of Healthcare, Education and Environment. Corporate Social Responsibility TCS supports local communities and society at large through (i) pro bono use of our core competence i.e. IT for community welfare, (ii) TCS-Maitree, our volunteer corps consisting of TCS employees and their families and (iii) the funding of philanthropic activities. Excluding the volunteering effort embodied in (ii), TCS has invested $9.4M in CSR initiatives over the last three years. The key focus areas for our CSR work are: Health, Education and Environment. The programs we launch and the communities we work with are decided based on the needs of those communities, the extent to which we can meet those needs within the framework of our CSR program, their proximity to our operations

and materiality to our operations. The effectiveness of our initiatives is judged by the satisfaction of the stakeholders and through our employee survey. Follow-up actions are planned thereafter based on the survey results. We have extended our core mission of building technology-led solutions to our customers business problems to cover community as well, proactively looking for community problems and needs which can be addressed using technology, effectively using IT for social good. TCS-Maitree has spearheaded several awareness campaigns related to environment, wildlife, and occupational health and safety. Events included beach clean-ups, adopt-a-highway, donation drives, photography contest, awareness drives, cleanup drives, online quiz, slogan competition, cycle rally, movie screening, awareness workshops and nature trails. In 2009-10, such initiatives engaged over 68,000 associates in activities designed to make them environment conscious Environmental Impact TCS environmental policy is geared towards minimizing the environmental impact of our business activities through (a) improved energy efficiency, (b) reduced ecological and carbon footprint, (c) waste reduction and judicious use of non-renewable resources. In FY2010, we largely met our environmental goals, greatly exceeding the targets on key objectives. We reduced our energy consumption by ~3%, our paper consumption by 34% and our carbon footprint by ~14%.To have a larger impact on the environment going beyond our own operations, we have built a consulting practice around Green IT to help our global clients become more energy efficient and use IT to reduce energy inefficiencies across their entire value chain. Being an IT consulting firm, our business processes dont consume non-renewable resources nor generate process wastes and emissions on the same scale as traditional smokestack industry. Nevertheless, there is an environmental impact due to the size of our global presence and in keeping with the Tata Code of Conduct, TCS is committed to measure, report and continually improve its overall environmental performance. In line with Article 15 of the Rio Declaration, TCS is actively working to reduce its carbon footprint. TCS is committed to optimize its resource consumption, minimize its ecological as well as carbon footprint with the ultimate objective of decoupling business growth and environmental impact. We adopted a new Environment Policy in December 2009 to formalize key activities designed to minimize our environmental footprint and mitigate the impact in terms of the resources consumed as well as our outputs. The policy is based on the following key pillars: Leadership, going beyond mere compliance Climate change mitigation through commitment to reduce GHG emissions and corresponding carbon footprint. Green IT Green Procurement Reduce, Reuse, Recycle Resource Efficiency Green Infrastructure Green Buildings External Assurance All TCS sites are compliant to all relevant environmental laws, acts, rules and guidelines. We have adopted the ISO 14001:2004 standard to serve as a framework to help us achieve environmental excellence, with a focus on continual improvement at every level in the organization. In 2009-10, another 12 TCS locations received certification, bringing the total number of locations certified as ISO 14001:2004 compliant to 35. Our intent is to get enterprise-wide certification under ISO 14001:2004 & OHSAS 18001:2007 in FY 201011.

Environmental Targets and Performance

Performance vis--vis the 2009-10 environmental targets is given below Sl. Objective Units Target Value No. 1. Reduction in KWh / FTE/ month 2% Electricity Consumption 2. Reduction in tCO2e/FTE/annum 2% Carbon Footprint 3. Reduction in Liters / FTE/ month 2% Water Consumption 4. Reduction in Reams /1000 FTE 5% Paper Consumption /month 5. Increase in Biogas generation Kg 2% capacity from waste 6. Increase in Waste Kg 5% Conversion to Manure 7. Reduction in Waste Generation kg / FTE / month 5% 8. Increase in Solar Water Liters Hot Water 10% Heater Capacity 9. Increase in Rainwater Kilo Liters 10% Harvesting Capacity 10. Reuse of Treated Sewage Kilo Liters 10% 11. Environment-friendly Numbers OR Kg 100% disposal of E-waste 12. Environment-friendly 100% disposal of Printer Cartridges 13. Biodiversity Management Number 4% Programs for Campuses Achieved Value* 2.92% 14.07% 0.88% 34% 0% 60% 5% 77% 48% 15% 100% 100% 4%

* Over 2008-2009 (Blue indicates outperformance, Red indicates underperformance wrt target

CONCLUSION Sustainable growth is intended to address all of the organizational, cultural, strategic, and operational considerations that a ten year sustainability strategy would necessitate. Specific sustainability initiatives need strategic support to flourish, and the creation would be useless without innovation and creativity to fuel the growth of companies. With a new definition of sustainability, a framework for growth and transparency, and specifically tailored global strategies, companies are ideally positioned for the next ten years to sustain its culture and evolve.