intuition®
engineered

ESG Report 2021

Messagefrom our Chief
Executive OfficerTo stay relevant to our multiple stakeholders,Cognizant evolves continually. We strive to coevolvewith our associates, clients, partners, suppliers andinvestors, and with the shared natural resources andhuman communities on which we all depend.
Guiding our evolution is Cognizant’s purpose: we engineer
modern businesses to improve everyday life. This statement
clarifies why we are in business and conveys that our workwith our clients, who are among the world’s largest global
enterprises, helps to improve life for people globally.
To live our purpose requires that we deliberate about ourrole in society and take a broad view of how our business
affects people’s lives economically, environmentally, sociallyand technologically. That’s why we, the more than 330,000
associates of Cognizant, are passionately committed toembedding sustainability and ESG (environmental, social,governance) into our thinking, decisions and actions.
We recognize that ESG encompasses such a breadth of
considerations that we must be focused if we are to beeffective. Therefore, we’ve researched the aspects of ESG
of greatest importance to our stakeholders, which led us toestablish three priorities to maximize our impact:●●●

Our environmental focus emphasizes the applicationof digital technologies and other approaches to reducegreenhouse gas emissions
Our social focus is to attract, hire, develop and engage
diverse talent, and build a workplace and workforce that isinclusive and welcoming to all
Our governance focus is on ethical compliance, data
privacy and data security, along with Board oversight ofthe company’s financial reporting, risk management andtransparent communication with investors

Capitalizing on our strengths as a leading technology services
supplier, we’re applying our knowledge, portfolio and partnerships
to engineer new levels of environmental and social benefits for ourcompany, clients and communities. Sustainability is an urgent callfor transitioning to a low-carbon and more inclusive and equitableeconomy. Meaningful, measurable progress toward this outcome
is what growing numbers of stakeholders, including clients,
investors and governmental bodies, expect of corporations. As a
2021 Signatory of the United Nations Global Compact (UNGC),
we are incorporating UNGC’s Ten Principles into our company’s
ESG strategy.
1Introduction  Environment  Social  Governance  Appendix“

Message from our Chief Executive Officer   ESG at Cognizant   About our business   Our approach to ESG

This ESG Report details our strategy and progress
integrating ESG into our business. I’m pleased to say thatwe’ve made demonstrable progress on several fronts
since the publication of our prior ESG Report.
I can underscore this progress with a few examples.
In support of our environmental priority, we’ve set
public measurable goals for reducing greenhouse gas
emissions. In 2021, we announced the goal of reaching
net zero emissions. This commitment is shaping ourculture, facilities management, energy sourcing, supply
chain and travel policy, along with the equipment andtechnologies we use in our offices and data centers. In
our drive to net zero, we set a near-term target in April
2022 of sourcing 100% renewable energy for all our global
offices and facilities by 2026.
In support of our social priority, we have, since the onsetof the COVID-19 pandemic, activated a range of global
measures to protect our associates, offices, clientsand communities. We covered the cost for more than
300,000 vaccinations for associates, their dependents
and contingent staff. Having pledged, at the start of thepandemic, $10 million to help communities respond totheir immediate and long term needs, we awarded morethan $2.5 million1 in 2021 to support global communities
impacted by natural disasters and COVID-19, includinga $2 million contribution to UNICEF to aid emergency
response efforts in India.
We compete on our knowledge and therefore place
an especially high value on professional development,
enabled through opportunities for continuous upskilling.
In 2021, we trained more than 150,000 associates acrossa range of digital skills. All associates have accessto on-demand learning platforms, and in 2021, they
completed over 20 million hours of learning.

12

Grants were administered through the Cognizant Technology
Solutions Charitable Fund, a donor-advised fund.

Cognizant ESG Report 2021

Sustainability is an urgent call for transitioning toa low-carbon and more inclusive and equitableeconomy. Meaningful, measurable progress
toward this outcome is what growing numbersof stakeholders, including clients, investors andgovernmental bodies, expect of corporations.

We also extend the power of skilling to the wider
community through, for example, internships.
In 2021, our India operations provided nearly 13,000
internships, offering mentoring and skills-development
to prospective associates. This is roughly double thenumber of internships we provided the prior year, and we
aim to double this number again.
To serve the diverse ecosystem of our clients andpartners, we rely on a diversity of experiences, views andperspectives within Cognizant. Through “Completely
Cognizant,” we celebrate and embrace diversity andinclusion. We want Cognizant to be the most diverse
and inclusive environment possible, where all people feelempowered to exercise their imagination and do theirbest work.
Diversifying our associate population starts with ourtalent pipeline. So, we’ve implemented programs thatare improving our hiring initiatives, including establishing
more diverse hiring panels and creating gender-neutral
job descriptions for our recruitment process. We’ve
also sharpened our focus on global gender diversity in
our leadership pipeline, and pledged to put 1,000 highperforming women through our leadership program
Propel by the end of 2021. We exceeded that goal.

Introduction

Environment

Message from our Chief Executive Officer

SocialGovernance

ESG at Cognizant

Appendix

About our businessWe approach governance from several angles such as
ethics and compliance, supply chain management, data
security, privacy and transparency to inspire trust fromour stakeholders.
We bring governance, which is essential to building anenvironment of trust, transparency and accountability, tolife and set the tone at the top through our core values,
one of which is to do the right thing, the right way.
We expect our leadership, including our Board, and ourassociates, to uphold high standards of ethical conduct
by following our Code of Ethics. This expectation
applies to our business partners as well because of how
interwoven we and our clients are with one another’s

Our approach to ESG

supply chains. As a technology innovator, we are sharply
focused on safeguarding data security and privacy
through effective cybersecurity policies. We process
a wide range of personal information on behalf ofassociates, clients and third parties, and are continually
improving technologies and processes to protect data
ethically and lawfully.

3Introduction

Environment

Message from our Chief Executive Officer

SocialGovernance

ESG at Cognizant

Appendix

About our businessOur approach to ESG

While we are early on our journey to becoming an
ESG-integrated organization, we have signaled
our resolve to achieve this goal and hold ourselves
accountable for making demonstrable progress. We
take seriously our responsibility to use our knowledge
and resources to serve the global public good and help
address the effects of climate change. You can expect
us to deepen our environmental, social and governanceprograms and report regularly on our progress toward
their achievement.
As the Dutch strategist and author Arie de Geus has
written: “Business is a living system and, like all others,
it must continually adapt to be in harmony with achanging environment.” We are evolving continually tobest serve the needs of our many stakeholders.

Brian Humphries
Chief Executive Officer
June 6, 2022

4

Cognizant ESG Report 2021

Introduction  Environment  Social  Governance  Appendix
Message from our Chief Executive Officer   ESG at Cognizant   About our business   Our approach to ESG

ESG at Cognizant
Welcome to our Environmental, Social and Governance (ESG) Report. The following outlines our strategy,
progress and ongoing commitment to integrate ESG throughout our business.
Our company is here to engineer modern businesses to improve everyday life. This is our purpose and it
inspires our perspective on the promise of technology in an interdependent and complex world. ESG iscore to that purpose and a priority for our organization.

With over 330,000 associates around the world, our scale has impact.
Our ESG platform reflects the diversity of our workforce, the goals of ourclients, the interests of our investors and the well-being of the international
community. We seek to multiply our positive impact in three focus areas:

Environment

SocialGovernancereduce our greenhouse gas(GHG) emissions throughtechnology, our culture
and internal changemanagement

engage, train, hire andinclude diverse talent in our
workforce and communities

focus on ESG oversight andtransparency, including
supply chain management,
health and safety, ethics,
data privacy and security

We take action in each of these areas through leadership, oversightand processes.

5Introduction  Environment  Social  Governance  Appendix
Message from our Chief Executive Officer   ESG at Cognizant   About our business   Our approach to ESG

Our standards

Our global context

We detail our ESG progress using globally
recognized frameworks:

In 2021, Cognizant joined the United Nations Global
Compact (UNGC). As a UNGC Participant, it is our role
to show how and where technology can help drive
the outcomes of the United Nations’ 17 Sustainable
Development Goals (SDGs). As an employer of morethan 330,000 people and strategic partner to many of
the world’s largest technology companies, we believe wecan generate inclusive economic growth and advancesustainable solutions. As a result of our size and thebreadth of industries we work with globally, we believe
we foster the following SDGs:

●

●

●

Sustainability Accounting Standards Board(SASB) standards
Task Force on Climate-related Financial Disclosures(TCFD) recommendations
Global Reporting Initiative (GRI) - referenced

To hold our ESG reporting to high standards, we:●●Commissioned an external third party to perform
attestation procedures over our GHG emissions(See Report of Independent Accountants)
Leverage the COSO2 framework to support our goal oftransparent, accurate and complete reporting

Our reporting approach consists of identifying risks
and controls, performing gap analyses, developing an
improvement plan and validating future state controls.

All of which support the SDG of:

Topics addressed and terms used in this Report may
be different from those terms as used in the context offilings with the US Securities and Exchange Commission(SEC). Issues deemed relevant for the purpose of thisReport or our ESG stakeholder assessment may not be
deemed material for SEC filings.

We engineer modern businesses
to improve everyday life

2 The COSO Framework is a globally recognized system businesses use to establish internal controls to promote data accuracy andcompleteness. (COSO, as it is most commonly known, or the Committee of Sponsoring Organizations, was developed to help companies
ensure accurate public financial reporting.)

6

Cognizant ESG Report 2021

Introduction  Environment  Social  Governance  Appendix
Message from our Chief Executive Officer   ESG at Cognizant   About our business   Our approach to ESG

About our business
Cognizant is a leading professional services company that helps organizations modernize technology,
reimagine processes and transform experiences so they stay ahead in a fast-changing world.
During 2021, we meaningfully enhanced our digital portfolio, strengthened our international presence,advanced our brand and continued to invest in our talent while helping our clients to be successful.

2021 Company snapshot
Our global footprint$18.5B

330,600

Revenue

Employees
UK

$1.7

North
America

B
Revenue$13.6 B

8,100

Revenue

Employees

40,900Rest of world

Continental Europe$1.3 B$1.9B

Revenue

Revenue

15,700

Employees

Employees

India

25,900

Employees

240,000
Employees

Our business segments
Financialservices

includingbanking andinsurance

33%

Revenue

Healthcare
including life
sciences

29%

Revenue

Products and resources

including retail and consumer goods,
manufacturing, logistics, energy andutilities, and travel and hospitality

23%

Revenue

Communications,media andtechnology

15%

Revenue7

Introduction  Environment  Social  Governance  Appendix
Message from our Chief Executive Officer   ESG at Cognizant   About our business   Our approach to ESG

Our approach to ESG
Our ESG vision outlines our plan for a sustainable future:

Use our technologies, knowledge and partnerships to engineer new levels ofenvironmental and social benefits for our clients and communities.
Our vision supports the transition to the more sustainable future our stakeholders desire.

For our clients
Through our work, we strive to enable our clients to create more sustainable business outcomes and help
them meet their own ESG commitments.

With our associates
Our diversity commitments and social impact programs aim to engage associates, contribute to ourcompany culture and help associates amplify their personal impact in the world.

For our investors
We seek to actively demonstrate how ESG can be integrated with our business, and will seek to address
stakeholders’ expectations with diversity progress and time-bound climate commitments.

In our communities
We aspire to leverage our technology expertise and local partnership programs to help strengthen thecommunities in which we operate.

Our ripple effect
The impact of the climate crisis and the shifting relationship between companies and society have already created a new
business environment — think of it as “the perpetually new normal.” We help our clients act on the changes we see now andalso prepare for new realities that arise as a result of these changes.
Our clients use our capabilities to realize efficiencies that improve their business and, in certain cases, their environmental
profiles. Examples include transitioning energy-intensive data centers to public cloud use; designing IoT-enabled smart
buildings that manage electricity, heating, cooling and water consumption more efficiently to reduce power needs; andusing IoT and cloud solutions in transportation and supply chain applications for real-time vessel emissions monitoring to
improve shipping route planning and increase fuel efficiency. The breadth of industries we serve, combined with our intimate
knowledge of our clients’ pain points, positions us well to support sustainability initiatives.

8

Cognizant ESG Report 2021

Introduction  Environment  Social  Governance  Appendix
Message from our Chief Executive Officer   ESG at Cognizant   About our business   Our approach to ESG

ESG oversight andgovernance
Our ESG program is led by our Chief Sustainability
Officer and reviewed by our Board of Directors (Board)
through its committees.
In 2021, the Governance and Sustainability Committeeof the Board actively engaged in the oversight of the
ESG program.

Stakeholder priorities
We assessed our ESG priorities in 2021 to help ensure
they served our business. We used a third party togauge which ESG issues are most relevant to Cognizant,gathering responses from internal representatives who
work closely with our associates, clients, investors,
external partners and suppliers.
This stakeholder assessment helps inform our
ESG priorities:

The Audit Committee of the Board is responsible forthe oversight of the Enterprise Risk Management (ERM)
program, which tracks and reports on areas of theorganization including ESG, data security (including
cybersecurity), data privacy, ethics and compliance,
as well as business continuity management. The ERM
program identifies, assesses, prioritizes and facilitates
the management of our most significant risks.

Environment with an emphasis on reducing
GHG emissions

Social with an emphasis on engaging diverse
talent in our workforce and communities

The Board’s Compensation and Human CapitalCommittee oversees key human capital matters such as
diversity and inclusion and general talent engagement,
retention, development and training.

Governance with an emphasis on supply
chain management, health and safety,
human rights, ethics, data privacy
and security

See pp. 16-17  for more details on how our Board andmanagement oversee climate risk.

“

A modern business is a sustainable one. Where to
start? Look to your ecosystem – partners, clients,
vendors that have sustainability projects underway – to identify where your organization canhave impact.
Sophia Mendelsohn
Chief Sustainability Officer

9

Environment

10

Cognizant ESG Report 2021

Cognizant priorities align with the following SDGs:

Cognizant’s adoption of a net zero
goal and measuring GHG emissionsalign with SDG 13.

Environment topics
Our environmental strategy

12

Net zero

13

Climate

16

Water

24

E-waste24

Sustainability engagement

25

11Introduction  Environment  Social  Governance  Appendix
Our environmental strategy  Net zero  Climate  Water  E-waste  Sustainability engagement

Our environmental strategy
We believe a modern business is a sustainable one – and technology can be a tool that supports
sustainability efforts. As an engaged member of the international community, we understand that our
future success is intertwined with the health of our environment.
Climate change is a global crisis and an urgent call for business leadership. As a result, we are focusedon reducing GHG emissions, using water more efficiently in India – where our footprint is largest – andputting our technology and talent to work, helping our clients meet their own resource reduction goals.
In 2021, we announced our Net Zero Goal, a science‑based approach to eliminating or offsetting our GHG emissions. This
goal brings Cognizant’s emissions reduction plans in line with the need to ensure global average temperature increases
do not exceed 1.5 degrees Celsius in accordance with the Paris Agreement.
In addition, we have the opportunity to help our clients use our insights and tools—including data, digital engineering,
cloud migration services and IoT capabilities—to meet their own environmental goals. We are helping them implement
and improve data management and tracking systems so they can better measure, manage and reduce their operational
footprints.

“

AwardsMy job - and my passion - is to drive meaningful
climate action. We are taking concrete steps
to create impactful changes and significantly
reduce GHG emissions.

Confederation of Indian Industry Water Management
Awards (Southern Region, various awards)

12

Cognizant ESG Report 2021

Stuart Poore
Global Environment Lead

Introduction

Environment

Our environmental strategy

Net zeroSocialGovernanceAppendix

Climate

Water

Sustainability engagement

E-wasteNet zero
To reduce our contribution to climate change we set
a global, public goal of reaching net zero emissions
compared to our 2019 emissions baseline. In order toachieve our Net Zero Goal, we will address emissions in
our operations, including our offices and facilities, aswell as from our supply chain and business travel. The
commitment will shape our real estate management,
energy sourcing, supply chain and travel philosophy inaddition to the equipment and technologies we use in
our offices and data centers.

Our Net Zero Goal
2026

Source100%

renewable energy, or derivatives
thereof, for all our global offices
and facilities

Key elements of our
Net Zero Goal
●

●

●

2030

Reduce absolute emissions by

50%

●

●

in our global operations andsupply chain, offsetting the rest

2040

Reduce absolute emissions by90%

in our global operations andsupply chain, offsetting theremaining, unavoidable emissions

Focuses on absolute emissions reductions
through operational efficiencies and renewableenergy use, before the use of carbon offsets
Measures reductions from a recent,pre-COVID-19 emissions baseline (2019)
Includes a near-term renewable energy target
Includes often-hidden emissions, from travelto supply chain to associate commuting, in
Scope 33
Aligns with the need to keep global averagetemperature increases to 1.5 degrees Celsius

Key elements of our Net Zero
Goal governance●●●

Submitted for third party validation with the
Science Based Targets Initiative (SBTi)*
Periodically reviewed by the Board’s
Governance and Sustainability Committee
Commissioned an external third party to perform
attestation procedures over our GHG emissions(See Report of Independent Accountants)* We have submitted a near-term science-based target
as defined by the SBTi’s Corporate Net-Zero Standard
Version 1.0.
3 According to the United States Environmental Protection
Agency, Scope 3 emissions are the result of activities
from assets not owned or controlled by the reportingorganization, but that the organization indirectly
impacts in its value chain.

13

Introduction  Environment  Social  Governance  Appendix
Our environmental strategy  Net zero  Climate  Water  E-waste  Sustainability engagement

We plan to achieve our Net Zero Goal through six main levers:

1 Renewable energy

2 Green buildings

Renewable energy is an important part of our Net Zero
Goal. Renewable energy creates absolute emissions
reductions without the use of carbon offsets. By obtaining
renewable energy directly and indirectly, we seek to create
new demand and stimulate the market’s growth.

Our large campuses in India are a major driver of ourenergy use and therefore a key focus for reducing ourabsolute emissions.

In April 2022, we announced our objective to source 100%of our energy needs for our offices and facilities fromrenewable sources, solar and wind, by the end of 2026.
We initially focused our renewable energy strategy inIndia, where we have a significant physical footprint andwhere our energy consumption is highest. In India, ouractivities include renewable energy projects like:●●

The majority of our buildings on these campuses
are Leadership in Energy and Environmental Design(LEED) certified.
Beyond this standard, we also specifically address energy
efficiency through:●Using photovoltaics (PV) to harness solar power
Expanding renewable energy sources through newPower Purchase Agreements (PPAs) with clean
energy developers

By the end of 2021, nearly half of the energy used in ourbuildings in India came from wind and solar sources.
We plan to rely on energy attribute certificates whererenewable energy cannot be obtained due to supply
constraints, energy needs being below the threshold of
PPAs or other constraining factors.

Operational control: we monitor power consumption
through our building management systems. We
analyze trends in the use of:—Lighting—

Heating—

Ventilation—

Air conditioning

We look to implement corrective actions if we identify
inefficiencies.
●●

Capacity optimization: we analyze consumption fromour Uninterrupted Power Supply, the power needsof associates’ computers and other areas of energy
demand, and optimize the use of our power modules thereby minimizing energy losses
Technological upgradation: we have collaborated
with a chiller manufacturer to leverage a chiller
performance analytical tool to monitor chiller
performance and correct inefficiencies

Data centers have very high energy demand and we have
implemented a specific Power Usage Efficiency (PUE)governance dashboard to monitor energy performanceand deliver efficiencies on a real-time basis in addition toother data center efficiency efforts (see p. 16 ).

14

Cognizant ESG Report 2021

Environment

Our environmental strategy

Net zeroSocialGovernanceAppendix

Climate

Water

Sustainability engagement

E-waste3 Travel reduction
With many of our over 330,000 associates directly
supporting clients around the world, we understandthe need to address Scope 3 emissions from travel. Our
efforts to reduce emissions associated with businesstravel are also dependent on client demands and theairline industry’s ability to decarbonize.
We are:●●●Proactively evaluating our travel frequency to support
business outcomes with efficient movement
Videoconferencing to better support continued
remote working
Engaging associates to promote greener travel
choices, including alternative commuting options for
associates in India

4 Green information technology (IT)and data centers

As one of the world’s foremost global technology service
providers, we know that digital transformation can help
the world achieve sustainability transformation.
However, digital transformation will draw on the world’s
limited energy budget and must consider efficiency
and renewable energy. We aim to execute thesetransformations with thoughtful energy sourcing andusage – and that includes our IT.

We are optimizing energy consumption across our
IT infrastructure, implementing smart and efficient
strategies to manage our energy demands and lowering
the carbon footprint of our organization.
We are adopting a cloud-first approach, migrating ourworkloads to the cloud and partnering with key data
infrastructure providers, all of which support our global
data center footprint optimization.
We are doing this through:Cloud migration
Our cloud-first strategy allows us to reduce our footprintin our own data centers and enables us to capitalize on
cloud efficiency and the significant investments made by
our strategic cloud partners to power their data centerswith renewable energy.

“

Companies that power the global economy
must leverage their digital transformation
for sustainable outcomes. Sustainability
transformation requires the optimizationof energy across the spectrum of IT – fromleveraging the public cloud to consolidating
data centers – to ensure we can lower energy
consumption while meeting the technology
needs of modern business.
Neal Ramasamy
Chief Information Officer“

Introduction

15

Introduction  Environment  Social  Governance  Appendix
Our environmental strategy   Net zero   Climate  Water  E-waste  Sustainability engagement

Data center consolidation●●

We are consolidating and optimizing our data centers,
which includes transitioning from individual servers,
storage and networks to bundled software-driven
solutions
In 2021, we were recognized by Schneider & CORE
Media for drastically improving our PUE acrossdata centers through enhancements to ouroperational infrastructure

Efficient IT resource management●

We are continually optimizing the efficiency of our IT
infrastructure. This includes striving to use:
—
—

—

—

●

Efficient software applications
Efficient computer hardware for our offices andour data centers
Data center infra monitoring tools that manage
power and cooling efficiently
Intelligent power distribution units that remotely
monitor power cooling consumption

As our technology nears its end-of-life, we will work to
replace such equipment with energy efficient modern
alternatives wherever feasible

5 Supply chain engagement
We aim to reduce the Scope 3 emissions associated with
our supply chain. We are engaging our top4 150 suppliers(covering nearly 60% of our spend5) to help them set theirown net zero emissions reduction targets.
Our plans include:
●

●

●
●

Conducting supplier interviews, surveys and net
zero training
Integrating our Net Zero Goal into supplier requests
for proposals, contracts, procurement policies andtarget reporting
Educating teams involved in the procurement process
Implementing an automated platform for ongoingdata capture and reporting of supplier emissions

4

Highest spend.

5

Calculated based on 2019 spend.

16

Cognizant ESG Report 2021

6 Carbon offsets
We will continually aim for absolute emissions reductions
before the purchase of carbon offsets. As much as
we desire and strive for absolute reductions, we also
recognize the physical and economic barriers to anear‑term zero-carbon economy.
Our goal is rapid decarbonization that allows for thecontinued growth and prosperity of our associates,
communities and clients. To achieve this, we believe
quality offsets have a place in the global transition to a
low-carbon economy and we plan to use them where
absolute emissions reductions are not physically or
financially viable.
We are building an offsetting strategy to determine
the standards and project types we will use, along withstarting to engage with potential offsetting partners.

Climate change and
TCFD reporting
In line with the Task Force on Climate-related Financial
Disclosures (TCFD), the premier standard for climate
reporting transparency, we share climate-related
details on:●

Governance (p. 16 )●

Risk management (p. 17 )●Strategy (p. 18 )●

Opportunity (p. 22 )

TCFD: governance
The Board discharges its oversight responsibility throughthe following committees:●

Governance and Sustainability Committee:
responsible for overseeing Cognizant’s approach
to broad ESG matters. In 2021, members of theGovernance and Sustainability Committee met toreview ESG strategy and performance, including our
Net Zero Goal, physical climate risk and ESG reporting.

Introduction  Environment  Social  Governance  Appendix
Our environmental strategy   Net zero   Climate  Water  E-waste  Sustainability engagement●

Audit Committee: the Audit Committee supports theBoard in its monitoring of risk management for risks
identified by the company, including ESG risk overall.
In addition, the Audit Committee monitors Cognizant’s
Global Business Resiliency (GBR) program, part of how
we respond to extreme weather, including weather
events made more likely by climate change.

At the executive level, overall responsibility for addressing
climate risk and facilitating climate-related opportunity
sits with our CEO. Day-to-day responsibility sits with theChief Sustainability Officer (CSO), who reports to theGeneral Counsel, Chief Corporate Affairs Officer. The
CSO and ESG team are responsible for embedding
climate considerations throughout Cognizant’s businessand orchestrating the execution of our ambitious
emissions reduction targets (see p. 13 ), working
cross-functionally with many leaders, including:●

The Chief Audit Executive, Internal Audit andEnterprise Risk Management (ERM)●

The Chief Security Officer●

The Chief Administrative Officer

2 Prioritization: we considered the significance ofidentified climate risks and opportunities and leveraged
our Cognizant ERM framework to prioritize themaccording to:●●●Process
1 Identification: we identified potential climate-relatedrisks and opportunities by engaging key internal
stakeholders and a third party expert who reviewed:●●●

Velocity: how rapidly the risk’s impact is likely tomaterialize
Impact: the cost of the risk if it does occur

3 Scenario analysis6: we considered how the identified
priorities could be relevant to Cognizant over7 the:●Short term: up to 5 years●

Medium term: 6-15 years●

Long term: 16-30 years

For each time frame, we considered possible impacts to
Cognizant under varying degrees of heating8 and global
responses to the impacts of that heating. Scenarios
selected to consider:●

Orderly transition to Net Zero 2050 (1.5°C)9:a high degree of policy ambition and implementationof the Paris Agreement

TCFD: risk management
Per TCFD recommendations, we considered potential
climate-related risks and opportunities that may occur
between the current reporting year and 2050 through athree-step process.

Likelihood: the chance of the risk occurring●

Disorderly and delayed transition (1.8°C):
rapid, disruptive transition over a short time horizon●

Hothouse World (3°C):
limited or no action taken to transition, thereby
presenting the greatest stress test of physicalclimate risks

Scientific climate change publications and data
Literature outlining the potential impacts of climatechange on our industry
Cognizant’s routine corporate operations and strategicrisk identification

6 Scenario analysis does not provide precise or exact calculations due to the nature of the modeling and the number of assumptions andparameters used.
7 Cognizant selected time frames in line with the TCFD recommendations.
8 Cognizant used scenarios from The Network for Greening Financial System, a group of 91 central banks and supervisors and 14 observers
committed to sharing best practices, contributing to the development of climate –and environment– related risk management.
9 Meets the TCFD recommendation for selection of a below 2°C scenario.

17Introduction  Environment  Social  Governance  Appendix
Our environmental strategy   Net zero   Climate  Water  E-waste  Sustainability engagement

TCFD: strategy
We strive to consider the impacts of climate change to our business. We undertook this exercise to put structure arounda range of plausible future states under varying degrees of climate disruption, with the ultimate goal of integratingclimate considerations into the universe of possible risks we consider and analyze.

Identified climate-related risks and opportunities for scenario-planning exercise:Type of risk

Description

Time frame

Acute

Extreme weather events causing damage to property that
render it unusable

Short-long term

Acute/chronic

Extreme weather events and trends affecting delivery capability

Short-long term

Chronic

Rising sea levels leading to disruption in operations

Long term

Technology

Power outages leading to disruption in operations

Medium-long term

Technology

Increased costs of transitioning to lower-emission technology

Medium-long termMarketChanging client behavior demanding greater commitment
to climate strategy

Short-medium termMarketIncreasing energy costs

Short-medium term

Reputation

Poor sustainability reputation leading to inability to attract/
retain talent

Short-medium term

Reputation

Failure to meet climate commitments leading to negative
media coverage and reputational damage

Short-medium term

New and increasing client demand for climate solutions

Short-medium term

Use of new climate technologies

Short-medium term

More efficient facilities

Short-medium term

Physical risks

Transition risks

Opportunities
Services
Resource efficiency

18

Cognizant ESG Report 2021

Introduction  Environment  Social  Governance  Appendix
Our environmental strategy   Net zero   Climate  Water  E-waste  Sustainability engagement

Physical risk scenarios and mitigation
Cognizant’s physical risk profile is dependent on (1) our
ability to globalize and diversify the geographies fromwhich we deliver and (2) the timing and extent to whichclimate change impacts those geographies.
System failures, outages and operational disruptions
may be caused by factors outside of our control, such as
natural disasters (including events that may be caused
or exacerbated by climate change) and public healthemergencies affecting the geographies where ourpeople, equipment and clients are located.

Physical risk scenarios
Like many companies, we perceive our lowest levelsof physical risk under an Orderly transition scenario.
Under this scenario, institutions would replace carbonoriented fuel sources and infrastructure with low-carbon
alternatives, reducing GHG emissions and therefore
physical risk as quickly as possible. Globally, society
would adapt infrastructure (such as transportation,
flood barriers, national grid resiliency) to become morerobust against any potential climate disasters. This

Very High

Illustrative risk example: risk of extreme weather
events causing damage to property that render
it unusable
LT

ImpactMT

Under the Disorderly scenario, the climate could reachtipping points, leading to increased irreversible extreme
weather. This possible dramatic uptick in extreme weather
could then make climate an even more importantconsideration to our clients and the talent we seek toattract and retain. This could then fuel a new rush ofinterest in corporate mitigation and an increased need
not only to track, report and reduce emissions, but also toadapt operations to help ensure business resiliency.
Under the Hothouse World scenario, we perceive ourhighest level of physical risks and greatest level of
uncertainty. Under this degree of heating, climate models
predict extreme weather and the rise in sea levels to
intensify. For example, we have substantial global delivery
operations in Chennai, India, a city that has experienced
severe rains and flooding and could see more inassociation with climate change.
This could have a number of effects. For example,
insurance premiums could increase as assets become
exposed to more risk, and maintenance costs could
increase from short term to long term as assets are
exposed to increasingly extreme weather.

Physical risk mitigation
Physical climate risk can be far-ranging and long term.
As a technology services provider, our mitigation efforts
focus on the impacts to our people and facilities, with afocus on service continuity.

MT

ST
LT

transformation could directly and indirectly dampen
possible negative impacts on our business. As time
progresses, from medium to long term, the benefits ofthese investments could become more pronounced.

LT
ST

Very Low

MT
ST

Key
Very Unlikely

Likelihood

Very Likely

Orderly
Transition

Disorderly
Transition

HothouseWorld

ST - Short term

MT - Medium term

LT - Long term

19

Introduction

Environment

Our environmental strategy

Net zeroSocialGovernanceAppendix

Climate

Water

Sustainability engagement

E-wasteMonitoring
We monitor global physical risk through our ERM
program, which aims to identify, assess, prioritize andfacilitate our management of our most significant risks.
Our ESG and ERM departments partner closely together
to monitor physical and transition risks.
On a location-based level, our GBR department also
monitors physical climate risk. GBR runs a global risk
assessment program and we have developed a processdriven approach that identifies, assesses and prioritizes
risks. As we deepen and expand our footprint acrossexisting and new geographies, we become exposed
to multiple country-specific climate risks. Country risk
frameworks help us understand and illustrate the risk
exposure of doing business in certain countries acrossdimensions like natural disasters and regulatory regimes.
Beyond monitoring, the GBR department also hasreactive and proactive controls in place to enhance ourresilience throughout natural disasters. For example, our
Facilities Risk Assessment Plan (FRAP) scores the risk
profile of each individual Cognizant facility and we havewarnings and processes in place to respond to weather

20

Cognizant ESG Report 2021

events at facilities. Our FRAP process also determines
the criticality of a particular facility and identifies key
vulnerable nodes to help ensure we have the appropriate
resilience plans in place. Alongside this, we haveincident response plans in place that undergo annual
resiliency testing.

Responding to physical climate-related events
Beyond monitoring for extreme weather, we must also
respond to it. At Cognizant, physical risk response ismanaged by our GBR department, which reports to our
Chief Security Officer. Our Chief Security Officer, in turn,reports to our Chief Strategy and Technology Officer.
Our GBR department’s incident response planning has
one major goal: increase confidence in infrastructure
resilience so we can continue doing what we do, while
keeping our people safe. GBR’s controls are designed to
predict and prepare the business for acute and chronic
physical shocks, including hurricanes, floods, heatwaves
and droughts. GBR’s tools also consider regional risks
such as unusual monsoons and seasonality – which isvaluable to our regional leads in locations such as India.

Introduction  Environment  Social  Governance  Appendix
Our environmental strategy   Net zero   Climate  Water  E-waste  Sustainability engagement

We follow ISO standard 22301, globally recognized
for aiding business continuity management during
unexpected disasters, and have achieved certification for
our India, North America (US & Canada), Latin America,
European Union and Asia-Pacific regions covering our
Global / Regional Delivery Center operations.

Transition risk scenarios and mitigation
As the shift toward a greener economy gains speed,transitional risks faced by Cognizant could include policy,
legal and reputational risks. Clients and communities are
increasingly focused on ESG issues, especially climatechange, which has already resulted in secondary effects.
Governmental bodies, investors, clients and businesses
are increasingly focused on ESG issues, which has
resulted, and may in the future continue to result in,
the adoption of new laws and regulations, reporting
requirements and changing buying practices.

Very High

Illustrative risk example: risk of failure to meetclimate commitments leading to negative media
coverage and reputational damage.
LT
LT

Impact

ST

LT
MT

MT

MT

ST

Very Low

ST

Very Unlikely

Likelihood

Very Likely

Transition risk scenarios
We perceive the least exposure to transition risk undera Hothouse World scenario, especially in the shortand medium term. In this case, public opinion doesn’t
center around climate change and clients and investors
are less concerned with climate targets, achieved or
missed. Climate change is likely to remain relatively low
on the agenda for clients, and would not become abig enough driver to actually affect relationships withbusiness partners. In the long term, client demand forclimate solutions may be forced back to the table by the
implications of a lagging transition.
In a Disorderly transition scenario, transitional risks would
start low and increase in the medium term as regulation
increases over time. Clients and investors would use
regulation and policy as a baseline expectation forcompanies’ reporting and transparency requirements.
However, once climate legislation is passed into law and is
imposed in the long term, the reputational damage could
be more severe. If Cognizant is not ready for a suddentransition, we risk losing clients to better prepared peers.
We perceive the most transition risk under an Orderlytransition scenario. This is particularly true in the shortterm as stakeholders, like clients and communities,
embrace a low-carbon economy on multiple fronts. In
this scenario, governmental bodies, investors, clientsand businesses are the most focused on ESG issues. If
we fail to comply with new laws, regulations, reporting
requirements or keep pace with ESG trends anddevelopments and fail to meet the expectations of ourclients and investors, our reputation and business could
be adversely impacted. For example, we could face
increased competition to highlight our ESG platform andclimate solutions as businesses across the globe improvetheir brand reputation through similar actions. Moreover,the public will be increasingly aware of and concerned
about climate change’s impact over the long term. This
includes our associate body, who, under this scenario,
would be most likely to change employers based on
how a company addresses climate change internallyand externally.

Key

Orderly
Transition

Disorderly
Transition

HothouseWorld

ST - Short term

MT - Medium term

LT - Long term

21

Introduction  Environment  Social  Governance  Appendix
Our environmental strategy   Net zero   Climate  Water  E-waste  Sustainability engagement

Transition risk mitigation
Transition risks are complex and constantly evolving. At
Cognizant, we seek to prepare for a low-carbon economy
through our change-management processes to reduce
our GHG footprint and carbon-based fuels exposure.
These same efforts will also bring us to our Net Zero Goal
(see p. 13 ).
As a client-centric business, perception is important.
Through our ERM program, we also monitor our scoringon third party ESG indices to track external perceptionsof our climate reputation over time. We consider
appropriate responses and program adjustments toaddress perception and actively engage with clients andinvestors who may have questions.
In 2021, we also established a client-facing team toprovide Sustainable Solutions, which builds our ability
to add new services that support our clients in their own
ESG journeys. For more on mitigation, see climate-related
opportunities below.

TCFD: opportunity
Companies should respond to the unfolding crisis ofclimate change for the sake of their stakeholders. In
this response, we also see opportunity in our ability
to offer technologies to facilitate a transition to a
low-carbon economy.
These opportunities are greatest for Cognizant – andcan be captured sooner and most effectively – under
the Orderly transition scenario. In this scenario, where
regulations increase and pressure to reach emissionscommitments grows, our clients will require more help tonavigate a fast-transitioning world. The impact will begreatest in the short and medium term as there will bea clear commercial interest for businesses to adopt newtechnologies that help lower their emissions. Government
funding directed toward developing new climate

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Cognizant ESG Report 2021

solutions could help boost green innovation, which could
increase the pace of new technological advancements
and therefore increase the possible opportunities for
Cognizant to act as a climate technology advisor. This
may lessen in the long term as the market for climate
solutions becomes more saturated.
Under the Disorderly transition scenario, our ability to
fully recognize opportunities would be moderate in the
short term when the development of climate technology
will likely be slow, and mature in the medium term. In
the medium to long term, commercial opportunities
could rise as the transition becomes more rapid, climate
policy becomes more developed and there are greaterpressures on businesses to take drastic measures
to cut their emissions, which technology can help
them achieve.
Finally, under the Hothouse World scenario, Cognizant
would have a comparatively smaller opportunity asclients would likely lack incentive to evolve, creating lessdemand for a new suite of climate offerings.
As a partner in transformation, we are well-positioned
to help our clients enhance their capabilities and reach
their own environmental goals. To help us capture
opportunities, we developed an assessment frameworkthat maps technological maturity to the sustainability
value chain in different sectors. We use this mapping toorient our clients to where their business and particular
pain points sit on the maturity curve. The objective is tohelp clients build a sustainable enterprise by investingin technology that helps them mature, whatever
their starting point. For example, we helped a water
pump manufacturer use IoT sensors to monitor pumpconditions to help increase the pump’s longevity. With
data derived from IoT-connected pumps, we then helped
the manufacturer transition from selling pumps to selling
value-added services.

Introduction  Environment  Social  Governance  Appendix
Our environmental strategy   Net zero   Climate  Water  E-waste  Sustainability engagement

Based on our current processes, we have calculated our emissions as follows:
Carbon dioxide equivalent(metric tons) Reporting Year 2021

Scope 1
Total Scope 1

10,600*

Scope 2
Location-based

97,882*Market-based

62,903*

Total Scope 2 (referencing market-based)

62,903*

Scope 3Purchased goods and services

804,834*

Capital goods

220,137*

Fuel and energy related activities (FERA)

40,533*Business travel

38,353*

Employee commuting

57,232*

Upstream leased assets

26,998*

Upstream transportation and distribution

1,467*

Waste generated in operations
Investments

Total Scope 3
Total Scope 1 and 2 (referencing market-based)

Total Scope 1, 2 and 3 (referencing market-based)
Outside of scopes (R22 refrigerant)
Total energy consumption in gigajoules (for Scope 1 and 2 activities)% electricity from renewable sources (India)

162*
1,235*

1,190,951
73,503

1,264,454
1,589
645,162*47%** We commissioned an external third party to perform attestation procedures with respect to this metric for the year ended December 31, 2021.
Full details and data methodology are available in the Report of Independent Accountants.

We will continue to consider evolving best practices for measuring and reporting our future emissions. In 2021, our activities
resulting in emissions continued to be affected by COVID-19. See p. 88  for emissions disclosure coverage details.
Subsequent to the original issuance of Cognizant’s 2020 metrics, we retrospectively expanded the scope of our measured
and reported 2020 GHG emissions and energy consumption metrics. We refined the criteria and measurement methods
used to calculate our Scope 1, Scope 2 and Scope 3 GHG emissions and total energy consumption resulting in higher GHG
emissions and energy consumption. See our Supplement to 2020 ESG Report (which supplement is dated June 6, 2022)
for details.

23

Introduction  Environment  Social  Governance  Appendix
Our environmental strategy  Net zero  Climate  Water  E-waste  Sustainability engagement

Water stewardship

E-wasteAs a company whose product is information, we are
not significant consumers of water compared toother industries. Nonetheless, we aim to consume
water responsibly. In 2021, we expanded our awardwinning water management efforts in India where risks
associated with water scarcity and quality are prevalent.

Our focus for e-waste management is to maximize thereuse of our computers. Our CEO, Brian Humphries,
launched a global commitment in 2021 to keep
80,000 computers out of landfills by the end of 2022.

We have undertaken a number of initiatives in India toimprove the efficiency of our water use, including:●●●

Harvesting rainwater: most of our owned facilities
in India contain groundwater recharging pits forrainwater harvesting
Condensate recovery: we have completed a pilot
project to recover condensate water from air handlingunits and use for cooling towers. We hope to expand
this project to other owned facilities
Recycled water: we use recycled water from sewage
treatment plants in our toilets, cooling towers
and irrigation

We are deepening our approach to global water risk
management and increasing our measurement of ourwater consumption in water-stressed areas, like India.
We recognize that water availability and climate change
are linked. In pursuing our climate goals (see p. 13 ),
we also address water protection.

“

Water stewardship and climate action go handin-hand as focus areas for our environmental
sustainability strategy. We have adopted anumber of actions across water-stressed areas inIndia – from harvesting rainwater to using recycledwater from sewage treatment plants – to improve
our stewardship of water resources. This holistic
view of sustainability is what powers our results.
Tracey Lange
VP, Corporate
Real Estate

24

Cognizant ESG Report 2021

While we do not manufacture products, we maintaina significant inventory of electronic equipment usedby our associates. We upcycle, and not simply recycle,
these devices and donate them to schools, colleges andcharities globally to increase access to digital technology
for underserved populations.
Extending the use of a single laptop by just two years
can save about 440 pounds, or 200 kilograms, of carbon
dioxide equivalents (CO2e), according to the Global
E-Waste Monitor. According to the US Environmental
Protection Agency, that’s similar to avoiding driving
about 500 miles, or 800 kilometers, in an average
passenger vehicle. By the end of 2021, we had donatedover 50,000 computers.
This effort is connected to Cognizant Outreach, ourassociate volunteering program. Our associates
volunteer their expertise and enthusiasm to advancetechnology education, training and inclusion and to help
prepare communities globally with the knowledge andskills needed for current and future technology careers.
Data security and privacy are paramount(see pp. 51 and 53 ) and an important part of oure-waste program. We engage across our entire
enterprise to clear data from computers before adonation takes place and always seek to ensure data
safety.

Introduction

Environment

Our environmental strategy

Net zeroSocialGovernanceAppendix

Climate

Water

Sustainability engagement

E-wasteEngaging associates on
climate and sustainability
In our 2020 ESG Report, we laid out how we activate our
purpose – to engineer modern businesses to improve
everyday life – by engaging associates in Cognizant
sustainability, initiating a ripple of behavioral change
through our associate body and beyond. This supports
the culture shift needed to meet our climate goals.
We offer continuous global sustainability trainings
and provide free environmental education throughpartnerships with local non-profit organizations (NGOs).
We actively encourage associates to bring their families,
particularly younger generations, to these trainings,
webinars and (virtual) gatherings.

The impact is multiplied by our scale:32

number of countries
where associates took
zero waste training
in 202128,000+

number of associates
who completed zerowaste training in 2021

50,000+

number of computers
saved from landfills in2020 and 2021

80,000our goal for total
computers saved fromlandfills by end of 2022
(see p. 24 )“

We help our associates approach climatechange in a fun and meaningful way. For
example, we partnered with the UN and
AWorld (a smartphone app) to provide ourassociates with tools to lower their personalcarbon footprints. Our efforts weave knowledgeof climate, waste and Cognizant ESG into
our culture.
Manmeet Nagpal
Outreach Leader

25

Social26

Cognizant ESG Report 2021

Cognizant priorities align with the following SDGs:

Proliferating STEM education and fillingthe skills gap by investing in training fortalented individuals from underserved andunderrepresented communities.

Increasing Board diversity and diverse talent inour pipeline; and fostering a sense of belonging
in our associate body.

Partnering with charities, technology partners
and government agencies to serve communities
we operate in through technology andvolunteer work.
Directly employing hundreds of thousands of people
in the jobs of today and preparing them – andothers – for jobs of the future. Above all, we believe
fair immigration policy, good training and a senseof belonging lead to better jobs that fuel economic
growth globally.

Social topics
Our social strategy

29

Skilling

30

Diversity and inclusion

32

Engineering impact for good

38

Cognizant foundations

41

27

Introduction  Environment  Social  Governance  Appendix
Our social strategy   Skilling   Diversity and inclusion (D&I)   Engineering impact for good   Cognizant foundations

Responding and adapting
to COVID-19
As the world continues to grapple with the ongoing COVID-19 pandemic, we remain
unwavering in our support for our associates and the communities where we live and work.

Philanthropy
At the start of the pandemic, we pledged $10
million to help communities address the immediateand long term needs faced during the pandemic.
In 2021, Cognizant awarded $2.5 million to support
global communities impacted by natural disasters
and COVID-19, including a $2 million contribution
to UNICEF to support emergency relief efforts
in India. Grants were administered through the
Cognizant Technology Solutions Charitable Fund,a donor-advised fund.

Volunteering
Our uniquely skilled and highly trained associates
make impactful volunteers.
In the UK, our volunteers created a COVID-19
mobile application, Cognizant Assist, which brings
beneficiaries, donors, charities and volunteers
together. Our application designers volunteered
thousands of hours to develop the platform, which
was then used by hundreds of volunteers andbeneficiaries. The platform has now been adopted
globally by more than 10 charities.
In India, our COVID-19 Relief Fund supported 36
NGOs with establishing digital classrooms tofacilitate continued learning.

Vaccination
We covered the cost for more than 300,000
vaccinations for associates, their dependents andcontingent staff, including contract and security
personnel and their families. During the first phaseof the vaccine rollout in India, we administered

28

Cognizant ESG Report 2021

more than 240,000 doses to our associates andtheir dependents during 330 drives held at 19
locations across multiple states.
Over the past few years, the COVID-19 pandemic
has been a sobering reminder that we only thrive
when we work as one and that each associate
plays a critical role in protecting the health andsafety of our global community.
Cognizant believes in and strongly encourages
vaccination against COVID-19 as it is the mosteffective means to keep ourselves, our families
and our clients safe. Where allowed by local law,
Cognizant requires associates of all Cognizant
entities and subsidiaries, including contractors,
to be fully vaccinated with a World HealthOrganization approved vaccine if or when theirrole requires them to report to or enter a Cognizant
office; attend any company in-person meetingor event; or travel on Cognizant business to a
destination where vaccination is required. In
accordance with local law, vaccination also will
be required when mandated by a client or thegovernment, regardless of work location.
How we ensure that these requirements are met
varies by country, their respective laws and client
requirements. To support this comprehensive
company health and safety effort, some examples
have included implementing paid vacation leavein a number of regions, coordinating access to
COVID-19 vaccination centers for associates andtheir families and funding critical supplies in somecountries where we operate.

Introduction  Environment  Social  Governance  Appendix
Our social strategy  Skilling  Diversity and inclusion (D&I)  Engineering impact for good  Cognizant foundations

Our social strategy
With a diverse and talented workforce of hundreds ofthousands of individuals, the size of our organizationand the capabilities of our people position us to initiate aripple of positive change.

That is why we:●●

Although skill sets of tomorrow are not yet universal, weare committed to addressing the skills gap between what
people can do today versus expectations for the jobs of
tomorrow. That this gap is widening and skewed toward
historically disadvantaged communities and genders is
unacceptable from a business and ethical standpoint.

●

Provide our associates with continuous training andleadership development
Close the skills gap with training, especially for those inunderserved and underrepresented communities
Work to increase the diversity of associates throughinclusive hiring practices and enhance inclusion
through a welcoming environment

In addition to our workforce, we also see it as our
responsibility to prepare our wider communities for the
future of work. We train underrepresented people in
the tech-enabled workforce through global skill-based
volunteering and philanthropy.

Building on our longstanding investments
in corporate social responsibility, we
announced a new, five‑year $250 million
initiative in 2021 to advance economic
mobility, educational opportunity, diversity
and inclusion, as well as health and wellbeing in communities around the world.

Awards“World’s Best Employers” and “America’s Best Employers
for Diversity”

Microsoft APAC Partner of the Year 2021, Inclusion
Changemaker – Social Impact category

Brandon Hall Group Excellence Awards(various awards)

Achieved a top score of 100 from the HRC’s Corporate
Equality Index and the designation as one of the “Best
Places to Work for LGBTQ+ Equality”

29Introduction  Environment  Social  Governance  Appendix
Our social strategy   Skilling   Diversity and inclusion (D&I)   Engineering impact for good   Cognizant foundations

Skilling
As a knowledge-based business, we place a particularlyhigh value on professional development. We create aculture of learning through a rich ecosystem of tools,
platforms and environments.

Leadership development
Our dedicated leadership programs focus on
enabling individual contributors to become emerging
leaders. In 2021, 130,000 associates benefited fromleadership courses.
●

Within our workforce
Cognizant hosts an in-house Learning & Development
function that offers a learning ecosystem for associatesof all levels. We provide role-based and business skills
learning for continuous upskilling aimed at continued
professional relevance. We also offer leadershipdevelopment opportunities for our current and future
leaders.
We are proud to share that we have trained
approximately 150,000 associates across digital skills in
2021. All associates have access to on-demand learning
platforms — clocking in over 20 million learning hours.

●

In the last 24 months, nearly 75% of our senior
executives on the Executive Leadership Team
(ELT) participated in external forums, Board / CEO
exposures, 360-degree feedback, coaching, executive
education and other development andengagement programs
In North America, our leadership team partnered with
Harvard University to focus on furthering a corporate
culture of trust

Associate learning & development●●

Entry-level associates partake in multi-month,role-specific skills training
Maturing associates are provided Global Leadership
Development programs to hone skills needed
throughout the leadership pipeline

Beyond our walls, associates can also tap into ourpartner resources. We have partnerships with:●

In 2021, we launched a cloud lab to giveassociates on-demand, hands-on
learning and MyLearningStudio.

●

Adobe, Amazon Web Services, Google Cloud,Microsoft, Oracle, Salesforce, SAP and ServiceNow,among others. In 2021, 26,600 associates became
certified through various alliances
Several world-class vendor partners and universities
help us develop our leaders:

We reached

5.8 million views

across 190,000+ learning resourcesin 2021.

Harvard University

Duke University

Chicago Business School

30

Cognizant ESG Report 2021

INSEAD

Indian School of BusinessIntroduction  Environment  Social  Governance  Appendix
Our social strategy   Skilling   Diversity and inclusion (D&I)   Engineering impact for good   Cognizant foundations

Within our wider community
Job Moves Program
Internal role movement is an important part oftalent engagement and retention. In 2021, nearly
14,000 associates moved to new roles internallythrough our Job Moves program, helping meet ourassociate value proposition of career exploration
opportunities.
Through the help of programs like this, we haveincreased our promotion rate

9% (2020)  15% (2021)

The World Economic Forum estimates thatapproximately 1 billion people need to be reskilled by
2030. We believe that providing digital capabilities
across key areas like cloud architecture, data
modernization, IoT, artificial intelligence, cybersecurity
and experience-driven engineering can contribute toa new age of equitably paid jobs with benefits and an
improved quality of life.
Theory turns to action through programs.
Examples include:●

across all grades.
For Cognizant, this generates a predictable androbust talent pipeline that reduces dependency
on external hiring. For associates, it enables
exploration of an array of career opportunities torealize their evolving aspirations.

Our Career Accelerator Pilot program helps us recruit
talent through a 14-week technology training programfor non-STEM majors on US college campuses:—●

Internships provide a special type of skilling. In
2021, our India operations provided almost 13,000
internships - more than double the previous year.
Interns have access to unique programs including:——●Sessions to facilitate interns’ cultural welcome
and onboarding

We provided mentoring and skills development toprospective associates

We expanded our Pre-Employment program to include
apprenticeships and became a National Sponsor
of Registered Apprentice Programs with the US
Department of Labor:—●

Career@Cognizant series provided by seniorleaders who offer industry perspectives andCognizant growth trajectory to inspire fresh talent

Sponsored Pre-Employment program to train potential
candidates in local communities on high-demand skills
leading to tech job opportunities—●

In 2021, this program helped us recruit over ahundred talented individuals, making a meaningful
difference in their lives

We rolled out a pilot cohort of this program inCharlotte, North Carolina in partnership with
Central Piedmont Community College

We signed up with self-paced content service
providers such as Udacity, in order for the Train &Hire program to reach more individuals interested inlearning essential foundational programming skills
such as JAVA and Python

31

Introduction  Environment  Social  Governance  Appendix
Our social strategy  Skilling  Diversity and inclusion (D&I)   Engineering impact for good   Cognizant foundations

Diversity and inclusion (D&I)

Driven from the top

Our D&I program — “Completely Cognizant” — helps
us build a diverse and inclusive workforce and promotea culture of belonging. We believe this will deliver astronger and more satisfied workforce.

In 2022, Executive Leadership compensation will include
a metric focused on gender diversity globally, anddeveloping and retaining talent.

To achieve a thriving, multi-cultural, multi-generationaland multi-talented workforce, we are:
●

●

●

●

Building a diverse talent pipeline: We are focusing ourrecruitment engine on diverse populations
Training: We are equipping our associates with inclusive
leadership training to help leaders build inter-culturalcompetence and lead with an inclusive mindset
Setting the tone at the top: Members of Cognizant’s
Executive Committee and ELT are personally working
toward creating an environment where everyone feels
welcome, heard and equal by holding themselves
accountable and calling out instances of bias when
they witness it

Since 2020, every leader at the level of director andabove has had a target, relative to their business area,for hiring and retaining women at the senior manager
level and above.

“

Achieving gender equality in the workplace
will only happen when each of us makes it our
responsibility to challenge current norms.
Shameka Young
Head of Diversity & Inclusion

Gathering: Our dedicated affinity groups attract,
welcome onboard and support diverse candidates as
they become engaged in Cognizant’s communities,
and promote a sense of belonging within thework environment. All affinity groups are open
to all associates. Executive Committee memberssponsor each of our affinity groups. Affinity groups
also partner with the D&I team to host events thatrecognize and celebrate diversity and inclusion, andpositively engage with clients

Affinity groups celebrate inclusion and advance diversity within our workforce:

32

Cognizant ESG Report 2021

Introduction  Environment  Social  Governance  Appendix
Our social strategy  Skilling  Diversity and inclusion (D&I)   Engineering impact for good   Cognizant foundations

International context
As a global enterprise operating across many cultures,
our views on diversity embrace unique national andlocal realities. To Cognizant, diversity is a celebrationof experiences, views and perspectives arising fromdifferences in age, gender, race, ethnicity, belief, religion,
sexual orientation, marital status, disability status orveteran status.
We recognize individual countries have unique needs. For
instance, we are putting special focus on showcasing our
support for LGBTQ+ associates in locations that may beless welcoming. We equipped many of our India facilities
with gender neutral restrooms and appointed an India
lead for D&I as a full-time role to reaffirm our intent andfocus on inclusion in a local context.

Building a diverse talent pipeline
Diversifying our associate body means starting with ourtalent pipeline.
To diversify our talent pipeline and associate body, we’ve
implemented intentional programs that have improved
our hiring initiatives, and augmented our diverse
partnerships with organizations like the National BlackMBA Association (NBMBAA).

Recruitment
In line with our Equal Employment Opportunity Policyin the United States, we are committed to building adiverse and inclusive team. When addressing diversity,
we consider gender, race and geography, among
other things.
Last year we launched the Diversity Candidate Pipeline
program within the North American Sales Organization
and began to expand it globally. The initiative includes
hiring manager training focused on understanding
unconscious bias, enabling diversity within our hiring
panels and creating gender‑neutral job descriptions
for our recruitment process. The Diversity Candidate
Pipeline helps ensure that interviews have a more diverse
composition of candidates and interviewers.

Recruiting women
Cognizant is investing in women through increased
recruitment, professional development and mentorship.
As of December 31, 2021, women accounted for 38% of
our workforce globally and 39% within India. 38% of all
new hires globally were female.
We’ve continued our sponsorship of MAKERS, anorganization focused on improving gender equality
within industry. In 2021, the company reached a critical
milestone, exceeding its pledge to put 1,000 womenleaders through the Propel program.
Since 2019, we have hired over 100 female firstgeneration college graduates as part of our initiative
to hire within India’s Economically Weaker Section.
We expanded this initiative in 2021 as part of ourcampus‑hiring program.

Recruiting diverse talent through returnshipProfessional lives aren’t always linear. For experienced
professionals who have been out of the workforce for two
or more years, we have a Returnship program. It offers
a 12-week paid, immersive experience for talented
technology professionals.
The program began in 2021 in India with a dozen
Returners taking on engineering management roles inthe Digital Engineering practice. It has since expanded
throughout India and to the US across various
business units and market delivery units. By year’s end,
72 Returners completed the program. Returners haveaccess to mentorship, training, upskilling and work with
cutting-edge technology. At the end of the program, they
are considered for full-time employment.

Recruiting racial and ethnic diversity in the US
In an effort to recruit women, Black, Latinx and otherdiverse individuals, our US recruiting team sponsorednumerous career fairs in 2021, including: the Forte, theBlack in Technology x Techqueria Virtual Career Fair,
Codepath, the National Center for Women in Information
Technology, HackerRank, NBMBAA conference and the
D&I Job Fair Event in New York City.

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The decision to put a pause on my professional
career wasn’t an easy one, but it was my chance
to experience motherhood. After a few yearsof staying home, I felt ready to return to work.
The Cognizant Returnship Program offered me
mentoring and coaching. I am grateful to thehiring and onboarding team for making the
Cognizant Returnship Program happen.
Returnship program participant

Recruiting persons with disabilities
We reported in 2021 that we joined the Valuable
500, a global collective of 500 CEOs and theircompanies innovating together for disability
inclusion. Additionally, we partnered with the National
Organization on Disability to enhance our disability
inclusion policies and further position Cognizant as adisability-friendly employer.
Once employed, we encourage associates to voluntarily
disclose their disability at any time via the company’s
self-service portal in geographies that allow them todo so. Applicants may also self-identify during theapplication process. These identification opportunities
help us maintain awareness of our ability to attract,
hire and retain associates with disabilities, with theultimate goal of making our workplace more inclusive
and welcoming.
We provide reasonable accommodations andadjustments for individuals with disabilities inaccordance with applicable laws and regulations, unlessthe accommodation would impose an undue hardshipon the organization. Further, Cognizant prohibits any
harassment or discrimination of associates on the basisof a disability or because an associate has requested areasonable accommodation.

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Cognizant ESG Report 2021

Skilled immigration: sourcing theworkforce we need today
According to a ManpowerGroup survey, talent
shortages in the US have tripled in the last ten
years, with 69% of employers struggling to fillpositions. High-skilled jobs are not only importantto the individual, but also to our clients in the
fast-paced global ecosystem. Studies show thatcreating jobs for high-skilled foreign workers
increases both employment opportunities andwages for local workers, in addition to harnessing
innovation and entrepreneurship for the country
overall. Therefore, we maintain and rely on fair
immigration policies to continue addressing theskills gaps and meeting the needs of our clients.

Cognizant is committed to the fair and equal
employment of individuals with disabilities.

Engagement survey results
Before leaders set the tone at the top, they start withlistening. Our 2021 Cognizant Engagement Survey,
conducted via third party platform, had a 65%
participation rate even during the most intense wave of
the COVID-19 pandemic, which hit India particularly hard.

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Our social strategy  Skilling  Diversity and inclusion (D&I)   Engineering impact for good   Cognizant foundations

Beyond our participation rate, which is only one metricof many, engagement is a metric we look to in order tounderstand how our associates invest their cognitive,
emotional and behavioral energies toward positive
organizational outcomes. Our engagement score of 74
shows our associates are engaged in their work. This
speaks to our associate value proposition against an
industry benchmark of 75.

Gathering
Programs to foster belonging
In 2021, we launched All Belong, an initiative thatengaged associates, improved retention, offered training
and showcased our affinity groups.
To support this, in 2021 we:●

We are proud that:●●

In our 2021 Engagement Survey, D&I continued toscore higher than external benchmarks, showing as aconsistent strength for our company
Participants were most satisfied with our open culture,learning opportunities, well-being initiatives, ethics andcompliance, management and senior leadership

After surveying, we create work streams to address
top scoring topics and report progress to our
Executive Committee.

●●

We earned a score of 100 on the Human Rights
Campaign Foundation’s 2022 Corporate Equality
Index, the nation’s foremost benchmark measuringcorporate policies and practices related to
LGBTQ+ workplace equality.

Launched Unite, our new affinity group for persons
with disabilities and caregivers, in India with themission of providing a network of people andresources to help our associates with disabilities
reach their full potential. The India chapter expanded
Unite’s global footprint, which already includes Brazil
and the US, and complements our new Accessibility
Concierge Services, which offer an exclusive help desk
for associates with disabilities
Sponsored a $50,000 endowed scholarship fundin honor of the late Steven Skinner, a long-serving
Cognizant Senior Vice President and affinity groupleader. We partnered with the NBMBAA, whichcelebrates and promotes Black economic sustenanceand empowerment
Engaged thousands of associates via diversity events,
our Diversity in Tech series and sessions featuring
renowned women, LGBTQ+ and other speakers“

Although being gay is considered scandalous
in my country, my manager has made it veryclear to everyone that intolerance is not part of
Cognizant’s culture or values. What a contrast to
the treatment I received in elementary school.
Cognizant realizes that being part of the LGBTQ+
community is not something to be ashamed of.
It’s something to be proud of.
Member of Cognizant Embrace

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Programs to take care of family
In 2021, we launched our Accessibility Concierge
Services (ACS) in India. ACS offers an exclusive
phone line and a live chat option with speciallytrained responders for associates with disabilities.
The goal of these services is to help our associates
reach their full potential through a nurturing andsupportive network of people and resources ina safe environment. The services also aim toseamlessly assist associates to acclimate to theculture of our organization. We plan to extend
the program to Europe, Middle East, Africa andNorth America.

Cognizant offers numerous region-specific benefits
to engage associates of all cultures, backgrounds
and genders.
For those shaping their family, we offer inclusive parental
leave (in addition to traditional maternity leave) thatgives time with the child, no matter how our associates
became parents:●

Paid parental leave (extended parental leave in somegeographies)●

Maternity transition program●

An adoption and surrogacy program

For those raising or caring for a family, or other personal
obligations, we offer:
Programs to support well-being
To bring associate emotional, physical and financial wellbeing to the forefront we provided resources, webinars
and events. We’ve partnered with global affinity groups
to increase associate access to well-being resources.
We’ve also enhanced benefit offerings in over a dozen
countries, including the US, Canada, Philippines, India
and others.
Mental health

Mental health is vital during these trying times. Our
Employee Assistance Program offers global confidential
counseling sessions. We observe World Mental Health
Day with events and offer resources to help promote
access to mental health care and remove stigma.
In 2021, we enhanced:●

Maternity and family support programs in the US●

Access to telehealth for more associates

●

●

36

Vacation and leave programs to encourage time off inseveral countries
Paid leave to recover and heal from COVID-19 as wellas vaccination leave

Cognizant ESG Report 2021●

Flexible Work Arrangements●

Part-time options●

Sabbatical options to focus on what matters●

Access to back-up childcare providers●

Domestic partner medical benefits●

Support for gender transition (in some geographies)

Programs to drive career growth
We complement our technical skilling and training
programs with other valuable competencies likeinterpersonal skills and on-the-job experience.
Our 1:1 Mentorship Program helps associates develop
skills and capabilities needed to shape their careers andgrow their professional networks. The program launched
for global delivery associates in 2022 in India. Associates
are matched on criteria such as capability, region andmentor availability.
Our Sponsorship Program, available at the optionof individual departments, drives the sponsoredassociate’s career vision and helps them take the next
step in their career. Sponsors provide visibility throughtheir relationships and build the network of sponsoredindividuals during a year-long relationship.

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Our Maternity Transition and Integration (MATRI)
program in India provides support for women associates
during phases of maternity to help make a seamless
transition. This program is further supported by theCare Nine Maternity Care program that includes a hostof physical and emotional wellness sessions. Mothers
receive benefits such as four months paid maternity
leave and the flexibility to take additional paid andunpaid leave. These include aspects of paid and unpaid
leave for adoption and surrogacy.

Racially/ethnicallydiverse

5/11

4/11

Worked overseas

Women

6/11

In India, we also offer benefits to help our associates
care for their families across generations, such as
enabling extension of medical insurance coverage toeligible dependents.

US associates racial / ethnic group representation13

Our Board’s demographics10
Born outside theUnited States

Additionally, our Working Parents affinity groupprovides families with resources and a place to shareexperiences for all types of families. The community is
open to all associates and helps associates effectively
manage challenges parents typically face and feel more
empowered and positive while parenting.

4/11

60% Asian
28% White
6% Black
3.8% Hispanic
2.0% 2 or more races

Global gender diversity9

0.01% Native American
0.01% Pacific Islander

Number of women11

123,138

We have detailed our efforts to improve the diversityof our associate body. Even during a period ofprogress, we are proud of all our talented associates
and determined to continue to give options to moretalented individuals from underrepresented groups.

New hires

38% Women
Gender split %12

38% Women
62% Men
Gender representation of associates
Senior Vice-President+

Senior Manager+

13.1% Women
86.9% Men

16.7% Women
83.2% Men

9 As of December 31, 2021.
10 These ratios include Stephen J. Rohleder, who was appointed to our
Board in March 2022.
11 Our Workforce Insights team tracks the hiring, development andretention of women. Data on the progress is then shared with
Cognizant’s Board of Directors as part of quarterly and annual
reporting on talent.
12 We disclose binary gender information to provide the most complete
data available at time of publication. In 2022, we began offering
associates the option to self-identify as non-binary. For Cognizant’s
larger efforts to support the LGBTQ community (see p. 33 ).
13 Outside the United States, our ability to collect racial and ethnic
information is limited by local laws and regulations.

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Engineering impact
for good

Cognizant outreachvolunteering

Our talented associates
increase inclusivity in technology“

As a knowledge-based company, some of our mostvaluable social contributions come through theunique skill sets possessed by our associates. We
partner with our associates to channel their business andtechnology talents to expand the professional horizons of
those with whom we volunteer. With tens of thousands ofvolunteers annually, our people cause a ripple effect thatis felt around the globe.
By encouraging our associates to engage inmeaningful ways, we are helping to retain our talent.
Over the last six years, our Outreach volunteers had
11% lower attrition than other associates.

As this effect radiates out from volunteers tocommunities, the corporate cultural benefits canbe three-fold. Volunteers:
1. Support their communities
2. Live and magnify our purpose
3. Are more likely to remain with Cognizant overthe long term

What the pandemic has taught is thatboundaries are irrelevant. And that applies tovirtual volunteering. Let not time or location
hold you back in pursuing your purpose andexperiencing the joy of giving.
Padmasini Dayananda

Global Head of Volunteering

We leverage the strength of a global workforce skilledin cutting-edge technologies through our Cognizant
Outreach volunteering. Cognizant Outreach delivers
tech-centric, impactful volunteering programs
implemented in a nuanced local context. Our outreachefforts help us take a leadership position and deepen
relationships through partnerships with clients,
technology partners, influential NGOs and government
agencies globally. We are proud to share that during2021, more than 35,000 volunteers devoted over
165,000 hours to volunteering.
With a view to our ESG goals, Cognizant Outreachfocuses on areas strategically aligned to our business:●●

Supporting inclusion in tech: Preparing
underrepresented populations with the skills andknowledge needed for technology careers and –ideally – a career at Cognizant
Increasing community impact: Providing digitalsolutions, environmental awareness and engagementwith and for NGOs

We host ongoing, rich, global programs frequently citedby our volunteers as a part of the value proposition ofworking at Cognizant.

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Cognizant ESG Report 2021

Introduction
Our social strategy

Environment
Skilling

SocialGovernanceDiversity and inclusion (D&I)

AppendixEngineering impact for good

Supporting inclusion in techprogramming workshops. Many of these programs
give students visibility to our most senior leaders andvalued clients:

Our belief that technology can improve livelihoods is why
we host year-round events, training sessions, camps,
mentoring, lectures and other programs that hone STEM
skills in students and youth. Examples include:

Digital Enabler,a volunteer-powered education program●

We transfer knowledge and skills of the digital
economy from our skilled volunteers to teachers andstudents through carefully curated and executed
virtual STEM fairs, digital content training, code
camps, life skills workshops and career guidance—●

In 2021, we reached nearly 9,000 students andnearly 4,000 educators

Cognizant foundations—

We engaged nearly 3,000 associates and equipped
10,500 individuals with work readiness skills

Future Accelerator,
a volunteer-powered skilling program●●

Outreach guides students on employment in thedigital economy through career fairs, industry
exposure sessions, digital literacy events andAlong with many other partner skilling programs,
we offer career advancement and technology
advancement boot camps, mentoring andscholarships for youth, adults, women, persons withdisabilities and veterans
In association with NGOs working in the disability
sector, Cognizant is preparing persons with disabilities
to compete in the job market. Workshops coverindustry insights, communication, resume writing andinterview skills

Supporting national skilling efforts

Singapore
Cognizant partnered with:

United Kingdom
Cognizant partnered with:

Infocomm and Media Development Authority to mentor womenfrom low-income families with the digital skills required to findand retain employment in tech and tech-enabled sectors●

The Foreign, Commonwealth and Development Office tochampion 12 years of quality education for girls, improving
access to education and employment●

Smart Nation and the Digital Government Office to improve techcareer awareness for professionals and equip senior citizens tobetter use smartphones, apps and more●

Clients to provide unique experiences for students that inspirethem to pursue tech-enabled careers●●

National Youth Council for Virtual Work Program to improve thecareer readiness of 200 youths across Asia, including Singapore,by providing work experiences, networks and resources

CodeVerse to provide core digital skills for youth from the Black
Minority Ethnic community to expand their career options●

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Introduction
Our social strategy

Environment
Skilling

SocialGovernanceDiversity and inclusion (D&I)

Community impact
NGOs and other charitable organizations improve
communities, yet are frequently under-resourced. Our
volunteers provide these valuable institutions withtechnology skills and solutions to enhance operations. In
2021, our volunteers completed digital solutions projects
through our digital empowerment programs. Not only
did they undertake projects such as website audits andsearch engine optimizations, but also worked to upskill
participants from over 130 NGOs.

Digital Capacity Building,a volunteer-powered engine for nonprofits●●●

We deliver workshops on data visualization software,training over 400 staff at 10 NGOs in 3 countries
We enable non-profits to use Microsoft 365 andSalesforce Cloud to improve operational efficiency,
including for an NGO operating shelters across India
We provided digitalization advisory services for nonprofit organizations in Australia, Singapore, Philippines,
Malaysia and Hong Kong

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Cognizant ESG Report 2021

AppendixEngineering impact for good

Cognizant foundations

Strategic technology partnerships
for social impact
Strategic technology partnerships are critical for growth
in cloud and SaaS markets:●●●

With Microsoft, we enabled more than 6,400
associates to complete Microsoft’s Accessibility
Fundamentals course, to support the development ofaccessible solutions
With Amazon Web Services (AWS), we equipped
hundreds of youths in Singapore, Malaysia and thePhilippines with AWS cloud skills and mentored themon building “tech for good” solutions
With Salesforce, we provided advisory andimplementation support for non-profit clouds

This work also equips our associates with skills that drive
client performance that is at once more responsive
and relevant.

Introduction  Environment  Social  Governance  Appendix
Our social strategy   Skilling   Diversity and inclusion (D&I)   Engineering impact for good   Cognizant foundations

Cognizant foundations
Cognizant Foundation India
The Cognizant Foundation India, launched in 2005,
partners with non-profit organizations across thesubcontinent to implement projects that improve the livesof the underserved populations in healthcare, educationand livelihood. In 2021, the Foundation realigned its goals
and shifted focus to promote inclusion for children, womenand persons with disabilities. The Foundation supported 65
projects in 2021 in healthcare, education and livelihood in
partnership with 35 not-for-profit organizations.
Notable 2021 contributions include:

Education●●

One of the main goals of the Foundation is to provide
access to quality education for students from underserved
communities through scholarships, opportunities for
digital learning, STEM and vocational training. Throughsome of its scholarship programs, the Foundation provides
access to quality education for visually challenged
students and supports the strengthening of the specialeducation ecosystem in the country
In 2021, the Foundation launched Blimey, acloud‑based learning platform to make digital learning
accessible for the visually impaired, in partnership with
EnAble India, a not-for-profit organization

Healthcare●●

The Foundation enables access to quality healthcare
for the underprivileged, with a focus on preventing
avoidable blindness and promoting health for womenand children. The Foundation’s “Preventing Childhood
Blindness” initiative was selected as the winner of the‘Healthcare (Large)’ Category of the 7th CSR Impact
Awards. The initiative seeks to combat childhood
blindness to prevent disability
In 2021, the Foundation’s COVID-19 relief efforts
focused on setting up care facilities and supporting
oxygenated beds in COVID-19 care centers andhospitals, as well as supplementing oxygen supplies
and critical medical equipment required for lifesaving
treatment. The Foundation also supported vaccination
for persons with disabilities against the disease

Livelihood●●

The Foundation’s initiatives in livelihood enablepeople with disabilities, women and disadvantaged
youths to gain employment through short term skills
training programs
In 2021, the Foundation launched Tech4All on
International Day of Persons with Disabilities, to skill
persons with disabilities and women for careers intechnology and tech-enabled services. In the first year,
it is intended to train hundreds of people in basic andadvanced IT skills to place them in tech-related jobs

Cognizant Foundation
The Cognizant Foundation works to inspire, educate
and prepare people of many ages to succeed in theworkforce of today and tomorrow. Since its inception in
2018, the Foundation has committed to deliver industryrelevant education, technical skills training programs
and research and thought leadership designed to ensurecommunities thrive in today’s digital economy.
The Foundation works alongside employers, educators,
policymakers and thought leaders to unlock economic
opportunity and support historically excluded andunderrepresented populations with investments in
the United States, United Kingdom, Canada, Australia
and Germany.
Notable 2021 contributions include:$20 million distributed to 50+ organizations acrossfive countries. These investments help to expand
K-12 computer science education, deliver a rangeof technology workforce training programs forunderrepresented populations and develop original
research to support education and workforce
modernization efforts.
Select Cognizant Foundation grantees include
Ada Developers Academy, Break Through Tech,
CareerTrackers, Code First Girls, CodePath, The
Marcy Lab School, National Governors Association,
Opportunity@Work, The Prince’s Trust, Social Mobility
Foundation, Teach For America and the Turing School ofSoftware and Design.
For more information, please visit the Cognizant
Foundation website.
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Cognizant ESG Report 2021

Cognizant priorities align with the following SDGs:

Our commitment to diversity and inclusion extends
from our associates to our suppliers, including how
they support their diverse employees.

We participate in international organizations alignedwith our commitment to data security, data privacy,
responsible sourcing and human rights across ourvalue chain.

Governance topics
Our governance strategy

44

Supply chain management

46

Health and safety48

Ethics and compliance49

Data security

51

Data privacy

53

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Introduction  Environment  Social  Governance  Appendix
Our governance strategy  Supply chain management  Health and safety  Ethics and compliance  Data security  Data privacy

Our governance strategy
Trust is paramount. As an employer, client partner and global business operating in an increasingly complex world,
integrity, transparency and security are essential principles for reducing risk. In this section, we introduce and detailelements of our governance strategy.

Our values
Our values are the backbone of how we create and maintain good governance over the multitude of issues a global
company faces.

Supply chain management
Starting with our supply chain, we seek to create a positive ripple effect based on our Values – we do the right thing, theright way – through standards, policies and programs to promote diversity and environmental progress.

Environment, health and safety
We seek to protect associate health and safety through our Environmental, Health & Safety management system,
policies and steps designed to prevent accidents and occupational illnesses in the workplace.

Ethics & compliance
We expect our leadership and associates to uphold high standards of ethical conduct by following our Code of Ethics.
Cognizant’s senior and seasoned global leadership team maintains a strong ethical climate.

Data security & data privacy
As a pioneering technology company, we focus on safeguarding data through effective security and privacy policies
and procedures.

AwardsTop Companies 2021, #2 in India and #33 in the US

2021 Best Overall Corporate Disclosure
14 Awarded February 2022.

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Cognizant ESG Report 2021

5th on World’s Most Admired Companies List,in the IT services sector14

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Our governance strategy  Supply chain management  Health and safety  Ethics and compliance  Data security  Data privacy

Cognizant’s values
Our values help leaders set the tone at the top and bring our governance strategy to life. These values establish relevant
expectations and standards for associates:

Start with a point of view
We apply expertise to gain trust and to lead our clients forward.

Seek data, build knowledge
We use facts to guide our actions and decisions.

Always strive, never settle
We act with agility and creativity, determined to stay one step ahead.

Work as one
We deliver solutions that draw upon the full power and scale of Cognizant.

Create conditions for everyone to thrive
We include, enable and invest in everyone around us.

Do the right thing, the right way
We always make the ethical choice.

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Our governance strategy   Supply chain management  Health and safety  Ethics and compliance  Data security  Data privacy

Supply chain
management
An important part of our value proposition is in how weparticipate in our clients’ supply chains – and we extend
that understanding of interwoven impact to our own
supply chain.
That is why we seek to work with business partners
who share our dedication to ethical business conduct
and policies. Our team of sourcing and procurement
experts works cross-functionally with the ESG, Sales,
Compliance, Corporate Security and Data Privacy teams
to find partners best able to deliver on client businessneeds and uphold our values.

Supply chain and diversity
In 2021, we launched our formal Supplier Diversity
Program in the United States. During the year, diverse
suppliers comprised 32% of our total domestic spend in
the US.
These efforts focus on providing opportunities for
qualified businesses owned by people of diverse
backgrounds to participate as suppliers of products
and services.
The primary goals of Cognizant’s Supplier Diversity
Program are to:●—

In 2021, we launched a:●●

Suppliers must also abide by our Code of Ethics andAnti-Corruption Policy.
In 2021, Cognizant conducted an ESG supply
chain assessment. As a result of that assessment,
which consisted of internal interviews and externalbenchmarking, we mapped a rolling implementationof integrated policies, due diligence, transparency andcontinuous improvement, which are designed to propel
our efforts from a baseline to a strategic to – ultimately –a leadership position.

46—

Cross-functional steering committee and working
group dedicated to improving our third party risk
management process
New Supplier Standards of Conduct which requirethat our third party representatives, suppliers, vendors
and subcontractors and their parent, subsidiary
and affiliated entities adhere to our updated humanrights, labor, health and safety, environmental andethical requirements

Cognizant ESG Report 2021

Provide opportunities to diverse suppliers, while also:

—

—

●

Satisfying our procurement standards
Creating long term value for our clients andour communities
Supplying competitively priced and reliable goods
and services
Helping us remain agile, disruptive and ahead ofthe market

Leverage our supplier diversity to meet our corporateclients’ supplier diversity requirements

Our Supplier Diversity Policy sets out our dedication to
working with historically underrepresented and diverse
businesses such as minority‑, women‑, disabled‑,
LGBTQ+‑ or veteran‑owned companies. Diverse suppliersmust be certified by a third party agency or commit
to obtaining such certification within the first year ofengagement with Cognizant.

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Our governance strategy   Supply chain management  Health and safety  Ethics and compliance  Data security  Data privacy

Supply chain andenvironmental responsibility
In 2021, we implemented a new application form that
includes ESG questions that suppliers are required
to answer. Suppliers are encouraged to improve
environmental performance in the areas of water,
chemicals, waste and emissions management.
Suppliers must comply with local environmental laws
applicable to their operations in the countries in which
they operate.

Supply chain andour net zero goal
A deep effort to reduce emissions, as embedded in our
Net Zero Goal (see p. 13 ), includes engaging suppliers
on why, how and when to reduce their own emissions,which are included in Cognizant’s Scope 3 emissions(see p. 23 ). We further recommend, at a minimum,that our suppliers establish policies and procedures
to measure and reduce their emissions and identify
potential improvements.
Data: In 2021, we completed our supply chain carbon
emissions analysis using 2019 data.

Supply chain and human rights
We do not condone human trafficking in any form,
do not make use of child labor or forced labor and weseek to never work with third parties that engage insuch practices.
Our Human Rights Policy outlines our commitment
to respecting and upholding the basic principles ofhuman rights in line with the United Nations Universal
Declaration of Human Rights and the International
Labour Organization’s Declaration on Fundamental
Principles and Rights at Work.
We operate in countries that have specific anti-slavery
requirements. Pursuant to the UK’s Modern Slavery Act
2015, we issue an annual modern slavery statement towhich our suppliers must commit. They are required
to share details of their practices and supply chainsin relation to modern slavery. Suppliers are required toprovide evidence that they have implemented modern
slavery prevention mechanisms. Should a violation
be reported to Cognizant, an escalation would takeplace via the Procurement function. A breach can bereported via our compliance hotline, which will lead to an
investigation.
We also comply with Australia’s Modern Slavery Act 2018.

Engagement: In 2022, we will begin engagement with our
top15 150 suppliers that contribute the most to our overall
emissions, while targeting these key deliverables:●●

Obtaining accurate and ongoing emissions data fromsuppliers who are able to provide it, so progress andimprovements can be tracked
Securing engagement from suppliers to commit toscience-based targets and to track and report on theirprogress against these targets

15 Highest spend.

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Our governance strategy   Supply chain management   Health and safety  Ethics and compliance  Data security  Data privacy

Health and safety (H&S)
In 2021, we published our global Environmental Healthand Safety (EHS) policy and worked to implement ourapproach to EHS by incorporating ISO 45001:2018 foroccupational health and safety management systems
and ISO 14001:2015 for environmental management
systems. We are committed to delivering on ourenvironmental, health and safety management system
across our organization by providing a healthy andsafe working environment for associates, contractors,
business associates, visitors and the community at large.

Our EHS management system
We document illnesses, injuries and hazards as part ofour Hazard Identification and Risk Assessment program.
The program covers Cognizant associates, vendors andvisitors to our leased, multi-tenanted or owned facilities.
We carry out an incident investigation and determine
root cause and precursors to incidents for every safetyrelated incident or observation, regardless of theoccurrence of injury.

Our 2021 milestones include:

74 facilities
across 23 countries

are certified to ISO 14001:2015 and ISO 45001:2018
standards.

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Cognizant ESG Report 2021

Our Health and Safety Committees are responsible for
identifying potential hazards and risks, recommending
corrective actions and iterating implemented solutions.
Associates are encouraged to provide feedback for
improvements through our EHS intranet page. The
committees are also responsible for online and in-person
H&S training. In 2021, we trained select associates onbasic safety, fire safety and safe rescue mechanisms
across our global locations.
Our EHS e-learnings are available on our intranet
and role-based modules are prepared for Corporate
Workplace Services and Human Resources related
functions through a custom skilling platform.
As of 2021, 57% of our workforce were in facilities coveredby our EHS management system. Our plan remains tohave our global operations certified to ISO 14001:2015
and ISO 45001:2018 by 2023.

Health and safety in facilities
during COVID-19
The health and safety of our associates continues
to remain paramount during the ongoing COVID-19
pandemic. We adhere to local, state and federal healthauthority guidance, including the UK Ministry of Health,
US Centers for Disease Control and Prevention and theWorld Health Organization.
Throughout 2021, we limited travel and used a mostly
remote working model.
At the beginning of 2022, we announced our global
position on COVID-19 vaccination and related policies.
Please see p. 28 .

Introduction  Environment  Social  Governance  Appendix
Our governance strategy   Supply chain management   Health and safety   Ethics and compliance  Data security  Data privacy

We seek to distinguish ourselves in the market bymaintaining the highest standards of integrity.

Governance
Our Chief Ethics and Compliance Officer, responsible
for the operation of the Ethics and Complianceorganization, reports to our General Counsel, and isunder the direct oversight of our Audit Committee of
the Board of Directors. Our Global Compliance andEthics Committee works across operating segments to
support the compliance program. Cognizant leaders
are responsible for driving ethical behavior and we
expect our associates to uphold high standards of
ethical conduct.

7 pillars: E&C risk management modelOversight and governanceRisk assessments andexternal enforcement environment

Policies, procedures, statements

Training and communications

Discipline and incentives

Monitoring, investigation and audit

Remediation, response and prevention““

Ethics and compliance(E&C)

Every day, associates make decisions andobserve behaviors that can lift up our reputation.
My job is to make that easy for them.
Marc Levin
Chief Ethics and Compliance Officer

Tone at the top
Cognizant’s Board of Directors, CEO, Executive
Committee and ELT support a culture of ethics andcompliance by setting the tone at the top. An ethicaltone at the top requires us to provide associates withclear statements of our values, policies and processes.
The ELT promulgates the tone at the top by sharing
required ethics and compliance messaging with theirrespective teams.

E&C risk management model
The E&C team uses policies and processes designed toensure ethical behavior throughout our business. (SeeE&C risk management model.)Code of ethics
Our Code of Ethics sets forth our guiding principles andvalues that establish a standard of conduct everyone in
our organization is expected to uphold. Our corporate
policies, set to be refreshed with an emphasis on
simplification and learning from observations from thepreceding three years, reinforce that standard. The Codeintegrates Q&A scenarios and includes an interactive
format aligned with Cognizant’s focus on digital. In
addition, all associates are encouraged to follow our“Cognizant Agenda,” a set of values that establish relevant
expectations and standards. See p. 45  for our Values.
Everyone is responsible for maintaining a culture of
integrity at Cognizant. Our Code of Ethics applies
to Cognizant directors, officers and associates
around the world, as well as our business units andsubsidiaries over which we have operational control.
49

Introduction  Environment  Social  Governance  Appendix
Our governance strategy   Supply chain management   Health and safety   Ethics and compliance  Data security  Data privacy

Cognizant’s Code of Ethics training, which must becompleted annually by associates, includes a module on
diversity and preventing discrimination and harassment.
This training is supplemented with other diversity-focusedtraining and leadership-development initiatives, such ascountry-specific training, inclusive leadership training,
mentoring and sponsorship programs. Additionally,
Cognizant associates in the US, India and Latin
America must complete our Preventing Harassment andDiscrimination Training each year. This training covers
protected categories, gender identity and expression,accommodations and other significant topics related
to harassment and discrimination. Our goal is 100%
timely completion of mandatory ethics training for all
associates. All new associates are required to complete
our Code of Ethics e-learning course within 30 daysof joining.
To further our culture of integrity, in 2021 we hosted
Ethics & Compliance virtual Town Halls for associatesin over 30 countries. We communicated trends andobservations arising from investigations activity toraise awareness of the issues and their ramifications.
In addition, we enhanced and simplified the reporting
platform and process by which associates submit
gifts & entertainment approval requests and conflictof interest disclosures.
Everyone who works for Cognizant is entitled to fairwages and hours consistent with local laws, andentitled to a work environment free from discrimination,harassment and retaliation.

Anti-corruption
Our zero-tolerance approach to bribery and corruption
in all of its forms is outlined in our Anti-Corruption Policy.
The policy is accessible on our corporate website andavailable in eight languages. The document details ourcommitment to operating ethically and in compliancewith relevant anti-corruption laws in the areas in which
we operate.

Whistleblower andnon-retaliation
In line with our mission to cultivate a culture in which it issafe to speak up, our Whistleblower and Non-Retaliation
Policy encourages associates to report concerns orquestions, without fear of retaliation, whenever theyobserve potential instances of unethical behavior in
our operations.
Cognizant has publicly available methods for associates
to report grievances if they have questions or concerns
made in good faith. Among them is our ComplianceHelpline, available to all of our associates, vendors,clients and others, to anonymously report suspectedviolations of the law, our Code of Ethics or other policies.
The Helpline is accessible via telephone, our intranet
and online. Reports of suspected improper or unethicalactivity are investigated and treated with confidentiality
in compliance with local laws.
For the second consecutive year, the ethics andcompliance driver scored high in our annual
Engagement Survey – a reflection of our associates
feeling comfortable reporting a violation of theCode of Ethics, policies or the law. (See (p. 34 ) for
Engagement Survey).

50

Cognizant ESG Report 2021

Introduction  Environment  Social  Governance  Appendix
Our governance strategy   Supply chain management   Health and safety   Ethics and compliance   Data security  Data privacy

Data security

Our Program

Cybersecurity has a dual mission of protecting ourbusiness while enabling performance. Our security
program seeks to defend Cognizant’s information andnetwork, secure and protect company data, as wellas compute environments from cyber intrusions anddisruptions, while maintaining our role as a trusted
advisor and highly sought-after partner for clients.

The Corporate Security organization sets a security
agenda for the enterprise aligned with the needs of ourbusiness, clients and associates. Corporate Security also
oversees our crisis management and business continuity
functions, striving to provide business resiliency.

“

We are working toward the maturation andautomation of our vendor and issue management
processes, including standardization of internal
control testing for better visibility. We are establishingongoing data collection and a metric generation
process to track alignment of our activities with key
performance indicators.

Alicia Lynch
Chief Security Officer

In addition, social engineering testing has been
improved, including extending quarterly simulations to
associates across the enterprise and a heightened focus
on privileged users.

New challenging cyber threat landscapes are
introduced as the industry transforms digitally,
but my team remains diligent with security being
a top priority.

Management approach
Our security strategy is designed to cover the entire
lifecycle of cybersecurity and resilience:●

Identification●

Prevention●

Detection●

Response●

Recoveryacross stakeholders and environments, so that we
can educate our associates and implement effective
security solutions.
Our approach meets ISO 27001 standards and adheresto third party standards, such as the National Instituteof Standards and Technology’s (NIST) Cybersecurity
Framework and other applicable regulatory and client
control standards requirements. Cognizant has maintained
ISO27001 since 2002 and is currently ISO27001:2013
standard certified, valid through 2024.

Cognizant’s security governance model includes multiple
layers of governance and management visibility at
all levels of the organization. Our Corporate Security
department formally reports to the Board of Directors
semi-annually with security presentations and cyber
metrics. In addition, quarterly updates are made to
the Audit Committee of the Board on risk remediation,
modernization programs and metrics.
The Security and Technology (S&T) Risk Committee
meets monthly and is comprised of senior executives
within S&T as well as relevant control partners suchas members of the ERM, Internal Audit, Legal, Privacy
and Procurement departments. The Committee’s
key focus areas include trending of the cyber threat
landscape, security control testing results and key
modernization activities.

51

Introduction

Environment

Our governance strategy

SocialGovernanceSupply chain management

Appendix

Health and safety

Ethics and compliance

Data security

Data privacy

Security policies
In 2021, Cognizant further enhanced security accessprotocols and control technologies considering remote
working conditions. These include:
●

●

●
●

Upgrading firewall assets and tightening access rules
through policy enhancements
Modernizing endpoint technology and key applications
through implementation of next-generation security
tools across the enterprise
Enhancing management of privileged account details
Implementing multi-factor authentication acrossinternet-facing applications

We seek to improve risk visibility,
vulnerability management andincident response through:
●
●

●

●

Accelerated patching and compliance testing
Improved SecOps capabilities throughadvanced analytics
Data protection through encryption at rest and intransit with secured key management processes andunauthorized data exfiltration
Modernized endpoint technology and key applications

We also added new governance structures, including
the establishment of an Enterprise Data Governanceprogram and Steering Committee under our
Chief Data Officer.

52

Cognizant ESG Report 2021

Introduction  Environment  Social  Governance  Appendix
Our governance strategy   Supply chain management   Health and safety   Ethics and compliance   Data security   Data privacy

Training

Management approach

Annual security training is mandatory for all associates.
This supports the company’s security program byhelping associates understand security obligations andinformation use standards.

Our Global Privacy Team maintains a comprehensive
privacy program, which sets out our global privacy
standards. Our program is composed of multiple
components covering:

In 2021, we enhanced security awareness and expandedphishing training. This included mandatory dataprotection and new joiner courses as well as mandatory
follow-up education. We have global simulations thatcover all associates quarterly and targeted simulationsfor key risk groups including newly integrated businesses.
In addition, targeted training is available for specificclient team support and quarterly assessments areavailable via our Security Endorsement Tool.

●

Policies●

Procedures●

Training●

Tools, templates and guidance notes

Data privacy
Every day, our associates, clients and third parties entrust
us with a wide range of personal information. We arecommitted to handling personal information ethicallyand lawfully and to driving and improving technologies
and processes to protect such information.

“

We recognize that privacy is critical to our clientsand our associates. We equally recognize its
growing importance to society as a whole ina time of digitization. Our role is to safeguard
personal information and enable trust for all our
stakeholders.
Stephanie Higgins
Chief Privacy and Data Ethics Officer

The Global Privacy Team also oversees periodic reporting
to executive leadership and our Board of Directors.
Our global team of privacy professionals works with key
stakeholders, including our Corporate Security function,
to provide guidance across our business groups andfunctions, assess risks and support the implementationof privacy policies and compliance programs.

Compliance review
Our Internal Audit team uses a risk‑based approachto determine the timing and the scope by which theyassess our privacy program. If determined necessary,
Internal Audit undertakes a review of the program
against Cognizant’s policies and procedures todetermine compliance.
Systems and automation – We continually strive toimprove the efficacy of our privacy compliance program
including automating processes to drive more robust
controls, metrics and tracking. Automation helps us to
identify risk areas and gaps, and understand training
needs for different stakeholders in the organization. It alsoenables us to quickly adapt to and implement measures
to manage a changing regulatory environment.
Schrems II – In response to new requirements aroundEU data transfers following the European Court ofJustice ‘Schrems II’ decision, we continue to evaluate
the relevant legislation and practices in those countries
where we provide services to our clients. These arecontinually reviewed alongside our internal policies andcontrols to ensure we are able to meet our contractual
obligations to our clients. We have also reviewed our
procedures to manage requests from public authorities
to access personal data and will continue to maintainthese in accordance with applicable requirements.
53

Introduction  Environment  Social  Governance  Appendix
Our governance strategy   Supply chain management   Health and safety   Ethics and compliance   Data security   Data privacy

Transparency

External engagement

Our global privacy policy sets out our privacy principles
and outlines the responsibility of associates to protect
personal information. Our global privacy notices provide
information to individuals about how we collect, use,transfer and safeguard personal information and how
to exercise their privacy rights. We are committed toenhancing our transparency to third parties and review
new ways of providing information to our stakeholders.

Our Government Affairs and Regulatory teams identify
issues and engage in discussions about privacy
regulations and information-governance systems.

Training and awarenessOur training and awareness programs are designed
to help our associates understand their obligations toensure compliance with our privacy policies.
Privacy Champion Network – To drive accountability
deeper into our organization, we increased our efforts
to strengthen our Privacy Champion Network. Our
Privacy Champions are positioned within the business
units and work toward embedding a culture of privacy
and creating more awareness on this topic within theirrespective functions through trainings, summits andknowledge sharing.

54

Cognizant ESG Report 2021“

Cognizant’s Government and Regulatory Affairs
team engages with policymakers and thebroader business community to understandthe regulatory landscape and advocate forpolicies that enable the company to best serve
our clients and communities. These external
relationships are also critical to Cognizant’s role
as a responsible corporate citizen and allow us
to work toward achieving the company’s broader
ESG commitments.
Tobi Young
Chief Regulatory Attorney
responsible for Data Privacy

Appendix

GRI index

56

SASB index

84

TCFD index

86

Endnotes (GHG emissions
disclosure coverage andcalculation information)

88

55

Introduction  Environment  Social  Governance  Appendix
GRI index  SASB index  TCFD index  Endnotes

GRI Index
GRI standard GRI standard
numbertitle

Disclosure
numberDescription

Reporting requirements

GRI 102

102-1

a. Name of the organization.

100 - GENERAL DISCLOSURESGRI 102

GRI 102
GRI 102

GRI 102
GRI 102

56

GeneralDisclosures
GeneralDisclosures

GeneralDisclosures
GeneralDisclosures

GeneralDisclosures
GeneralDisclosures

102-2

102-3
102-4

102-5
102-6

Cognizant ESG Report 2021

Name of theorganization
Activities,
brands,products, andservices

Location of
headquarters
Location ofoperations

Ownership andlegal form
Markets serveda. A description of the organization’s
activities.
b. Primary brands, products, andservices, including an explanationof any products or services that arebanned in certain markets.

a. Location of the organization’s
headquarters.
a. Number of countries where theorganization operates, and the namesof countries where it has significant
operations and/or that are relevant to
the topics covered in the report.

a. Nature of ownership and legal form.

Response or
disclosure location
Cognizant Technology
Solutions Corporation
2021 ESG Report:
About our business,page 72021 Form 10-K: Item 1.
Business, pages 3-6
2022 Proxy
Statement: About
Cognizant, page 2
Teaneck, New Jersey,
United States
2021 ESG Report:
About our business,page 72021 Form 10-K: Item 2.
Properties, page 19
2022 Proxy
Statement: About
Cognizant, page 22021 Form 10-K: Cover2021 Form 10-K: Item 1.
a. Markets served, including:i. geographic locations where products Business, pages 3-4
and services are offered;ii. sectors served;
iii. types of customers and beneficiaries.

Introduction  Environment  Social  Governance  Appendix
GRI index  SASB index  TCFD index  Endnotes

GRI standard GRI standard
numbertitle
GRI 102
GeneralDisclosures

Disclosure
numberDescription
102-7
Scale of theorganization

GRI 102

GeneralDisclosures

102-8

Information on
employees andother workers

GRI 102

GeneralDisclosures102-9

Supply chain

GRI 102

GeneralDisclosures102-12External
initiatives

Reporting requirements
a. Scale of the organization, including:i. total number of employees;
ii. total number of operations;iii. net sales (for private sector
organizations) or net revenues (forpublic sector organizations);
iv. total capitalization (for private sector
organizations) broken down in terms ofdebt and equity;
v. quantity of products or services
provided.

Response or
disclosure location
Total employees:
330,600
Total net revenue:$18.5B
2021 ESG Report:
About our business,page 72021 Form 10-K: Item 1.
Business – Workforce,
pages 6-72022 Proxy
Statement: About
Cognizant, page 22021 Form 10-K: Item 1.
Business – Workforce,
pages 6-7

a. Whether a significant portion of theorganization’s activities are performed
by workers who are not employees.
If applicable, a description of thenature and scale of work performed byworkers who are not employees.
2021 ESG Report:
a. A description of the organization’s
Governance – Supply
supply chain, including its main
chain management,elements as they relate to thepages 46-47
organization’s activities, primarybrands, products, and services.
Global Reportinga. A list of externally-developed
Initiative (GRI)
economic, environmental and social
Sustainability
charters, principles, or other initiatives
to which the organization subscribes, or Accounting Standards
Board (SASB)
which it endorses.
Task Force on
Climate-related
Financial Disclosures(TCFD)
United Nations Global
Compact (UNGC) Ten
Principles
United Nations
Sustainable
Development Goals(UNSDGs)

57

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GRI index  SASB index  TCFD index  Endnotes

GRI standard GRI standard
numbertitle
GRI 102
GeneralDisclosures

Disclosure
numberDescription
102-13
Membership ofassociations

GRI 102

GeneralDisclosures102-14

Statement fromsenior decisionmakerGRI 102

GeneralDisclosures102-15Key impacts,
risks, andopportunities

Response orReporting requirements
disclosure location
United Nations Global
a. A list of the main memberships ofCompact (UNGC)
industry or other associations, andnational or international advocacy
organizations.
2021 ESG Report:
a. A statement from the most senior
Message from ourdecision-maker of the organization
Chief Executive(such as CEO, chair, or equivalentsenior position) about the relevance of Officer, pages 1-4
sustainability to the organization and its
strategy for addressing sustainability.
a. A description of key impacts, risks,
2021 ESG Report:
and opportunities.
Environment –Climate change
and TCFD reporting– TCFD: strategy– Identified climaterelated risks andopportunities for
scenario-planning
exercise, page 18
2021 Form 10-K:
Item 1A. Risk Factors,
pages 12-19

58

Cognizant ESG Report 2021

Introduction  Environment  Social  Governance  Appendix
GRI index  SASB index  TCFD index  Endnotes

GRI standard GRI standard
numbertitle
GRI 102
GeneralDisclosures

Disclosure
numberDescription
102-16
Values,principles,standards,
and norms of
behavior

Reporting requirementsa. A description of the organization’svalues, principles, standards, andnorms of behavior.

Response or
disclosure location
2021 ESG Report:
Our approach to
ESG, pages 8-9;
Governance – Ourgovernance strategy– Cognizant’s values,
page 45; Ethics andcompliance (E&C) –Code of ethics, pages
49-50
2021 Form 10-K: Item 1.
Business, page 32022 Proxy
Statement: Corporate
governance– Sustainableoutcomes – Runninga responsible
business – Ethics andcompliance, page 25

GRI 102

GeneralDisclosures102-17

Mechanisms
for advice andconcerns about
ethicsCode of Ethics
Supplier Standards ofConduct
a. A description of internal and external 2021 ESG Report:
Governance – Ethics
mechanisms for:and compliancei. seeking advice about ethical and(E&C) – Whistleblower
lawful behavior, and organizationaland non-retaliation,
integrity;
ii. reporting concerns about unethical or page 50
unlawful behavior, and organizational
Ethic & Complianceintegrity.
Helpline
Whistleblower and
Non-Retaliation Policy

59

Introduction  Environment  Social  Governance  Appendix
GRI index  SASB index  TCFD index  Endnotes

GRI standard GRI standard
numbertitle
GRI 102
GeneralDisclosures

GRI 102

GeneralDisclosures

Disclosure
numberDescription
102-18Governancestructure102-19Delegating
authority

Reporting requirements
a. Governance structure of theorganization, including committees of
the highest governance body.
b. Committees responsible for decisionmaking on economic, environmental,
and social topics.

a. Process for delegating authority foreconomic, environmental, and social
topics from the highest governancebody to senior executives and other
employees.

Response or
disclosure location
2021 ESG Report:
Our approach to
ESG – ESG oversightand governance ,page 9; Environment– Climate change
and TCFD reporting– TCFD: governance,
pages 16-17
2022 Proxy
Statement: Corporate
governance– Corporate
governance– Sustainableoutcomes, page 23
2021 ESG Report:
Our approach to
ESG – ESG oversightand governance ,page 9; Environment– Climate change
and TCFD reporting– TCFD: governance,
pages 16-17
2022 Proxy
Statement: Corporate
governance –Committees of
the Board, pages
20-21; Sustainableoutcomes, page 23

60

Cognizant ESG Report 2021

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GRI index  SASB index  TCFD index  Endnotes

GRI standard GRI standard
numbertitle
GRI 102
GeneralDisclosures

GRI 102

GRI 102

GeneralDisclosures

GeneralDisclosures

Disclosure
numberDescription
Reporting requirements
a. Whether the organization has
102-20Executive-levelappointed an executive-level position
responsibility
or positions with responsibility forfor economic,
economic, environmental, and social
environmental,
and social topics topics.
b. Whether post holders report directly
to the highest governance body.

102-21

102-22a. Processes for consultation between
Consulting
stakeholders and the highest
stakeholders
governance body on economic,
on economic,
environmental, and social topics.
environmental,
and social topics b. If consultation is delegated, describe
to whom it is delegated and how theresulting feedback is provided to thehighest governance body.
Compositionof the highest
governancebody and its
committees

a. Composition of the highest
governance body and its committees
by:i. executive or non-executive;ii. independence;iii. tenure on the governance body;iv. number of each individual’s othersignificant positions and commitments,
and the nature of the commitments;
v. gender;
vi. membership of under-representedsocial groups;vii. competencies relating to economic,
environmental, and social topics;viii. stakeholder representation.

Response or
disclosure location
2021 ESG Report:
Our approach to
ESG – ESG oversightand governance ,page 9; Environment– Climate change
and TCFD reporting– TCFD: governance,
pages 16-17
2022 Proxy Statement:
Corporate governance– Sustainableoutcomes, page 23
2021 ESG Report: Our
approach to ESG –Stakeholder priorities,
page 92022 Proxy Statement:
Corporate governance– Board engagement
activities – Shareholder
engagement, page 222021 ESG Report:
Social – Diversity
and inclusion (D&I)– Building a diverse
talent pipeline –Recruitment, 37
2022 Proxy Statement:
Corporate governance– Board overview,
pages 6-7; Director
nominees, pages 13-18;
Committees of theBoard, pages 20-21;
Sustainable outcomes– Supporting ourpeople – Board
diversity matrix,
page 2461

Introduction  Environment  Social  Governance  Appendix
GRI index  SASB index  TCFD index  Endnotes

GRI standard GRI standard
numbertitle
GRI 102
GeneralDisclosures

Disclosure
numberDescription
102-23Chair ofthe highest
governancebody

GRI 102

GeneralDisclosures102-24

Nominating
and selecting
the highest
governancebody

GRI 102

GeneralDisclosures102-25

Conflicts ofinterest

GRI 102

GeneralDisclosures102-27

Collective
knowledgeof highest
governancebody

Response orReporting requirements
disclosure location
Corporate
a. Whether the chair of the highest
Governancegovernance body is also an executive
Guidelines:
officer in the organization.
B. Directorb. If the chair is also an executive
Qualification
officer, describe his or her function
within the organization’s management Standards, pages 3-5
and the reasons for this arrangement.
a. Nomination and selection processes 2022 Proxyfor the highest governance body and its Statement: Corporate
governance –committees.
Board compositionb. Criteria used for nominating andand refreshment,
selecting highest governance bodymembers, including whether and how: pages 8-9
i. stakeholders (including shareholders)are involved;
ii. diversity is considered;iii. independence is considered;iv. expertise and experience relating toeconomic, environmental, and social
topics are considered.
a. Processes for the highest governance 2022 Proxybody to ensure conflicts of interest are Statement: Corporate
governance – Related
avoided and managed.
person transactions,b. Whether conflicts of interest are
disclosed to stakeholders, including, as page 29
a minimum:
Code of Ethics
i. Cross-board membership;
ii. Cross-shareholding with suppliers
and other stakeholders;iii. Existence of controlling shareholder;iv. Related party disclosures.
2022 Proxya. Measures taken to develop andStatement: Corporate
enhance the highest governancegovernance – Board
body’s collective knowledge of
qualifications,
economic, environmental, and social
page 10-11
topics.
Corporate
Governance
Guidelines: G: Director
Orientation andContinuing Education,
page 862

Cognizant ESG Report 2021

Introduction  Environment  Social  Governance  Appendix
GRI index  SASB index  TCFD index  Endnotes

GRI standard GRI standard
numbertitle
GRI 102
GeneralDisclosures

Disclosure
numberDescription
102-28
Evaluating
the highest
governancebody’sperformance

GRI 102

GeneralDisclosures102-29

GRI 102

GeneralDisclosures102-32

GRI 102

GeneralDisclosures102-33

Reporting requirements
a. Processes for evaluating the highest
governance body’s performance withrespect to governance of economic,
environmental, and social topics.
b. Whether such evaluation is
independent or not, and its frequency.
c. Whether such evaluation is a selfassessment.
d. Actions taken in response toevaluation of the highest governancebody’s performance with respect
to governance of economic,
environmental, and social topics,
including, as a minimum, changes
in membership and organizational
practice.

Response or
disclosure location
2022 Proxy
Statement: Corporate
governance –Board composition
and refreshment,
pages 8-9

Corporate
Governance
Guidelines: H:
Management
Evaluation andSuccession, pages
8-9; J: Annual
Performance
Evaluation of theBoard, page 102021 ESG Report: Our
a. Highest governance body’s role in
Identifying
approach to ESG –identifying and managing economic,
and managing
ESG oversight andenvironmental, and social topics andeconomic,
their impacts, risks, and opportunities – governance, page 9
environmental,
including its role in the implementationand socialof due diligence processes.
impactsb. Whether stakeholder consultation isused to support the highest governancebody’s identification and managementof economic, environmental, and social
topics and their impacts, risks, andopportunities.
Our Governancea. The highest committee or position
Highestand Sustainability
that formally reviews and approves
governanceCommittee formallythe organization’s sustainability reportbody’s role inand ensures that all material topics are reviews and approves
sustainability
our sustainability
covered.
reportingreport.
2022 Proxy
Communicating a. Process for communicating critical
Statement: Additional
critical concerns concerns to the highest governanceinformation – Proxybody.
statement andproxy solicitation –Communications
to the Board fromshareholders,pages 67-68

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GRI standard GRI standard
numbertitle
GRI 102
GeneralDisclosures

Disclosure
numberDescription
102-35
Remuneration
policies

GRI 102102-36

GeneralDisclosures

Process fordetermining
remuneration

Response orReporting requirements
disclosure location
a. Remuneration policies for the highest 2022 Proxy
governance body and senior executives Statement: Corporate
for the following types of remuneration: governance – Director
i. Fixed pay and variable pay, including compensation, pages
performance-based pay, equity-based 28-29; Compensation– Compensation
pay, bonuses, and deferred or vested
discussion andshares;analysis (CD&A),
ii. Sign-on bonuses or recruitment
pages 30-49
incentive payments;
iii. Termination payments;
Corporate
iv. Clawbacks;
Governancev. Retirement benefits, including the
Guidelines: F. Director
difference between benefit schemes
Compensation,and contribution rates for the highest
pages 7-8
governance body, senior executives,and all other employees.
b. How performance criteria in the
remuneration policies relate to thehighest governance body’s and senior
executives’ objectives for economic,
environmental, and social topics.
2022 Proxya. Process for determining
Statement: Corporate
remuneration.
governance – Directorb. Whether remuneration consultants
compensation,
are involved in determining
pages 28-29;
remuneration and whether they are
Compensation
independent of management.
– Compensationc. Any other relationships that the
remuneration consultants have with the discussion andanalysis (CD&A),
organization.
pages 30-49
Corporate
Governance
Guidelines: F. Director
Compensation,
pages 7-8

64

Cognizant ESG Report 2021

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GRI index  SASB index  TCFD index  Endnotes

GRI standard GRI standard
numbertitle
GRI 102
GeneralDisclosures

Disclosure
numberDescription
102-37
Stakeholders’involvement inremuneration

GRI 102

GeneralDisclosures102-38Annual totalcompensation
ratio

GRI 102

GeneralDisclosures

102-40

List ofstakeholder
groupsGRI 102

GeneralDisclosures

102-41

Collective
bargaining
agreements

GRI 102

GeneralDisclosures

102-43

Approach to
stakeholder
engagement

GRI 102

GeneralDisclosures

102-45

Entities
included in the
consolidated
financialstatements

Reporting requirementsa. How stakeholders’ views are sought
and taken into account regarding
remuneration.
b. If applicable, the results of votes on
remuneration policies and proposals.

a. Ratio of the annual totalcompensation for the organization’s
highest-paid individual in each countryof significant operations to the medianannual total compensation for all
employees (excluding the highest-paid
individual) in the same country.
a. A list of stakeholder groups engaged
by the organization.

a. Percentage of total employees
covered by collective bargaining
agreements.

Response or
disclosure location
2022 Proxy Statement:
Compensation– Compensation
discussion andanalysis (CD&A) –Compensation setting
process – Shareholder
engagement and theimpact of COVID‑19,
page 322022 Proxy Statement:
Compensation – CEOpay ratio, page 59

2021 ESG Report: Our
approach to ESG –Stakeholder priorities,
page 9We are not party
to any significant
collective bargaining
agreements.

2021 Form 10-K: Item 1.
Business – Workforce,
pages 6-72021 ESG Report: Our
a. The organization’s approach toapproach to ESG –stakeholder engagement, including
frequency of engagement by type and Stakeholder priorities,
by stakeholder group, and an indication page 9of whether any of the engagement wasundertaken specifically as part of thereport preparation process.
2021 Form 10-K: Exhibita. A list of all entities included in the21.1. List of subsidiaries
organization’s consolidated financialof the Company,
statements or equivalent documents.
page 217
b. Whether any entity included in theorganization’s consolidated financial
statements or equivalent documents is
not covered by the report.

65Introduction  Environment  Social  Governance  Appendix
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GRI standard GRI standard
numbertitle
GRI 102
GeneralDisclosures

Disclosure
numberDescription
102-47
List of material
topicsGRI 102

GeneralDisclosures102-51

Date of mostrecent reporta. If applicable, the date of the mostrecent previous report.

GRI 102

GeneralDisclosures
GeneralDisclosures102-52

Reporting cycle

a. Reporting cycle.

102-55

GRI content
index

2021 ESG Report:
a. The GRI content index, which
GRI index,
specifies each of the GRI Standards
used and lists all disclosures included in pages 56-83
the report.
b. For each disclosure, the content index
shall include:i. the number of the disclosure (fordisclosures covered by the GRI
Standards);
ii. the page number(s) or URL(s) where
the information can be found, either
within the report or in other publishedmaterials;
iii. if applicable, and where permitted,
the reason(s) for omission when arequired disclosure cannot be made.

GRI 102

66

Cognizant ESG Report 2021

Reporting requirementsa. A list of the material topics identified
in the process for defining reportcontent.

Response or
disclosure location
2021 ESG Report: Our
approach to ESG –Stakeholder priorities,
page 9Our 2020 ESG Report
was published lastJune, 2021.
AnnualIntroduction  Environment  Social  Governance  Appendix
GRI index  SASB index  TCFD index  Endnotes

GRI standard GRI standard
numbertitle
GRI 102
GeneralDisclosures

Disclosure
numberDescription
102-56External
assurance

GRI 103

103-1

Management
Approach

Explanation of
the material
topic and its
Boundary

Response orReporting requirements
disclosure location
The reporting organization shall report Commissioned an
external third party to
the following information:
perform attestation
a. A description of the organization’s
policy and current practice with regard procedures over
our GHG emissions
to seeking external assurance for the(See Report ofreport.
Independent
b. If the report has been externally
Accountants)
assured:i. A reference to the external assurance
report, statements, or opinions. If
not included in the assurance reportaccompanying the sustainability report,
a description of what has and what has
not been assured and on what basis,including the assurance standards
used, the level of assurance obtained,
and any limitations of the assurance
process;ii. The relationship between theorganization and the assurance
provider;iii. Whether and how the highest
governance body or senior executives
are involved in seeking external
assurance for the organization’ssustainability report.
2021 ESG Report:
a. An explanation of why the topic is
Environment,material.
b. The Boundary for the material topic, pages 10-25;
Social, pages 26-41;
which includes a description of:Governance,
i. where the impacts occur;
pages 42-54
ii. the organization’s involvement with
the impacts. For example, whether theorganization has caused or contributed
to the impacts, or is directly linked
to the impacts through its business
relationships.
c. Any specific limitation regarding the
topic Boundary.

67

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GRI standard GRI standard
numbertitle
GRI 103
Management
Approach

GRI 103

68

Management
Approach

Disclosure
numberDescription
103-2
The
management
approach andits components

103-3

Cognizant ESG Report 2021

Reporting requirements
For each material topic, the reportingorganization shall report the following
information:a. An explanation of how theorganization manages the topic.
b. A statement of the purpose of the
management approach.
c. A description of the following, if the
management approach includes thatcomponent:i. Policies
ii. Commitments
iii. Goals and targets
iv. Responsibilities
v. Resources
vi. Grievance mechanismsvii. Specific actions, such as processes,
projects, programs and initiatives

Evaluation of the a. An explanation of how theorganization evaluates the
management
management approach, including:approachi. the mechanisms for evaluating theeffectiveness of the management
approach;ii. the results of the evaluation of the
management approach;iii. any related adjustments to the
management approach.

Response or
disclosure location
2021 ESG Report:
Environment, pages
10-25; Social, pages
26-41; Governance,
pages 42-54
Other policies andreports such as:
Anti-Corruption Policy
Carbon Reduction
Plan
Code of Ethics
Corporate
Governance
Guidelines
Environmental, Healthand Safety Policy
Human Rights Policy
Political Activity Policy
Statement on Modern
Slavery 2020
Supplier Standards ofConduct
Whistleblower and
Non-Retaliation Policy
2021 ESG Report:
Environment,
pages 10-25;
Social, pages 26-41;
Governance,
pages 42-54

Introduction  Environment  Social  Governance  Appendix
GRI index  SASB index  TCFD index  Endnotes

GRI standard GRI standard
numbertitle

Disclosure
numberDescription

ECONOMIC PERFORMANCEGRI 201
Economic
Performance

201-1

GRI 201

201-2

200 - ECONOMICS

Economic
Performance

Reporting requirements

Response or
disclosure location

2021 ESG Report:
Direct economic a. Direct economic value generated
value generated and distributed (EVG&D) on an accruals About our business,and distributed basis, including the basic components page 7
for the organization’s global operations
as listed below. If data are presented on 2022 Proxy Statement:a cash basis, report the justification for About Cognizant,this decision in addition to reporting the page 2
following basic components:
i. Direct economic value generated:revenues;
ii. Economic value distributed: operating
costs, employee wages and benefits,
payments to providers of capital,
payments to government by country,
and community investments;
iii. Economic value retained: ‘direct
economic value generated’ less‘economic value distributed’.
b. Where significant, report EVG&D
separately at country, regional, or
market levels, and the criteria used for
defining significance.
2021 ESG Report:
a. Risks and opportunities posed by
Financial
implications and climate change that have the potential Environment –Climate change
to generate substantive changes inother risks andand TCFD reporting
operations, revenue, or expenditure,opportunities– TCFD:strategy –including:due to climate
i. a description of the risk or opportunity Identified climatechange
and its classification as either physical, related risks andopportunities forregulatory, or other;scenario-planningii. a description of the impact
associated with the risk or opportunity; exercise, page 18;
TCFD: strategy –iii. the financial implications of the risk
Physical risk scenariosor opportunity before action is taken;
iv. the methods used to manage the risk and mitigation, pages
19-21; Transition
or opportunity;v. the costs of actions taken to manage risk scenarios andmitigation, pages 21the risk or opportunity.
22; TCFD: opportunity,
page 222021 Form 10-K:
Item 1A. Risk Factors,
pages 12-19
69

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GRI standard GRI standard
numbertitle
GRI 201
Economic
Performance

Disclosure
numberDescription
201-3
Defined benefit
plan obligations
and otherretirement plans

INDIRECT ECONOMIC PRESENCE
203-2
GRI 203
Indirect
Economic
Impacts

70

Cognizant ESG Report 2021

Significant
indirect
economic
impacts

Reporting requirements
The reporting organization shall report
the following information:
a. If the plan’s liabilities are met by theorganization’s general resources, theestimated value of those liabilities.
b. If a separate fund exists to pay theplan’s pension liabilities:
i. the extent to which the scheme’s
liabilities are estimated to be coveredby the assets that have been set aside
to meet them;ii. the basis on which that estimate has
been arrived at;iii. when that estimate was made.
c. If a fund set up to pay the plan’spension liabilities is not fully covered,explain the strategy, if any, adopted
by the employer to work towards fullcoverage, and the timescale, if any, bywhich the employer hopes to achieve
full coverage.
d. Percentage of salary contributed by
employee or employer.
e. Level of participation in retirement
plans, such as participation in
mandatory or voluntary schemes,
regional, or country-based schemes, or
those with financial impact.
a. Examples of significant identified
indirect economic impacts of theorganization, including positive andnegative impacts.
b. Significance of the indirect economic
impacts in the context of externalbenchmarks and stakeholder priorities,
such as national and international
standards, protocols, and policy
agendas.

Response or
disclosure location
2021 Form 10-K: Notes
to Consolidated
Financial Statements– Note 16 — Employee
Benefits, pages F-38
to F-392021 ESG Report:
Social – Engineering
impact for good,
pages 38-40

Introduction  Environment  Social  Governance  Appendix
GRI index  SASB index  TCFD index  Endnotes

GRI standard GRI standard Disclosure
numbertitle
numberANTI-COMPETITIVE BEHAVIOR
206-1
GRI 206
Anticompetitive
Behavior

Reporting requirements

Legal actions foranti-competitive
behavior,
anti-trust, andmonopolypracticesa. Number of legal actions pendingor completed during the reporting
period regarding anti-competitive
behavior and violations of anti-trust
and monopoly legislation in which theorganization has been identified as aparticipant.
b. Main outcomes of completed legal
actions, including any decisions or
judgments.

We comply withantitrust andcompetition laws of
every country where
we do business.

Energyconsumption
within theorganizationa. Total fuel consumption within theorganization from non-renewablesources, in joules or multiples, andincluding fuel types used.
b. Total fuel consumption within theorganization from renewable sources,
in joules or multiples, and including fueltypes used.
c. In joules, watt-hours or multiples, thetotal:
i. electricity consumption
ii. heating consumptioniii. cooling consumption
iv. steam consumption
d. In joules, watt-hours or multiples, thetotal:
i. electricity soldii. heating soldiii. cooling soldiv. steam solde. Total energy consumption within theorganization, in joules or multiples.
f. Standards, methodologies,
assumptions, and/or calculation tools
used.
g. Source of the conversion factors
used.

2021 ESG Report:
Environmental –Climate change
and TCFD reporting,page 23

300 - ENVIRONMENTAL
ENERGYGRI 302

Energy302-1

Response or
disclosure location

Description

71

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GRI standard GRI standard
numbertitle
WATER AND EFFLUENTS
GRI 303
Water andEffluents

72

Disclosure
numberDescription
303-1

Cognizant ESG Report 2021

Interactions
with water as ashared resource

Reporting requirements

Response or
disclosure location

a. A description of how the organization 2021 ESG Report:interacts with water, including how and Environmental –Water stewardship,
where water is withdrawn, consumed,
and discharged, and the water-related page 24
impacts caused or contributed to, or
directly linked to the organization’s
activities, products or services by abusiness relationship (e.g., impacts
caused by runoff).
b. A description of the approach used
to identify water-related impacts,
including the scope of assessments,
their timeframe, and any tools or
methodologies used.
c. A description of how water-related
impacts are addressed, including
how the organization works withstakeholders to steward water as ashared resource, and how it engages
with suppliers or customers withsignificant water-related impacts.
d. An explanation of the process
for setting any water-related goals
and targets that are part of theorganization’s management approach,and how they relate to public policy
and the local context of each area withwater stress.

Introduction  Environment  Social  Governance  Appendix
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GRI standard GRI standard
numbertitle
EMISSIONSGRI 305
EmissionsDisclosure
numberDescription
305-1

Direct (Scope 1)
GHG emissions

Reporting requirements

Response or
disclosure locationa. Gross direct (Scope 1) GHG emissions 2021 ESG Report:
Environment –in metric tons of CO2 equivalent.
Climate changeb. Gases included in the calculation;
and TCFD reporting,whether CO2, CH4, N2O, HFCs, PFCs,
page 23
SF6, NF3, or all.
c. Biogenic CO2 emissions in metric tonsof CO2 equivalent.
d. Base year for the calculation, if
applicable, including:i. the rationale for choosing it;ii. emissions in the base year;iii. the context for any significant
changes in emissions that triggered
recalculations of base year emissions.
e. Source of the emission factors andthe global warming potential (GWP)
rates used, or a reference to the
GWP source.
f. Consolidation approach for emissions;
whether equity share, financial control,or operational control.
g. Standards, methodologies,
assumptions, and/or calculation
tools used."73

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GRI standard GRI standard
numbertitle
GRI 305
Emissions74

Disclosure
numberDescription
305-2
Energy indirect(Scope 2) GHG
emissions

Cognizant ESG Report 2021

Response orReporting requirements
disclosure locationa. Gross location-based energy indirect 2021 ESG Report:(Scope 2) GHG emissions in metric tons Environment –Climate change
of CO2 equivalent.
and TCFD reporting,b. If applicable, gross market-based
page 23energy indirect (Scope 2) GHG
emissions in metric tons of CO2
equivalent.
c. If available, the gases included in thecalculation; whether CO2, CH4, N2O,
HFCs, PFCs, SF6, NF3, or all.
d. Base year for the calculation, if
applicable, including:i. the rationale for choosing it;ii. emissions in the base year;iii. the context for any significant
changes in emissions that triggered
recalculations of base year emissions.
e. Source of the emission factors andthe global warming potential (GWP)
rates used, or a reference to the
GWP source.
f. Consolidation approach for emissions;
whether equity share, financial control,or operational control.
g. Standards, methodologies,
assumptions, and/or calculation
tools used.

Introduction  Environment  Social  Governance  Appendix
GRI index  SASB index  TCFD index  Endnotes

GRI standard GRI standard
numbertitle
GRI 305
Emissions

WASTE
GRI 306

Waste

Disclosure
numberDescription
305-3
Other indirect(Scope 3) GHG
emissions

Response orReporting requirements
disclosure location
2021 ESG Report:
a. Gross other indirect (Scope 3)
Environment –GHG emissions in metric tons of CO2
Climate change
equivalent.
b. If available, the gases included in the and TCFD reporting,page 23
calculation; whether CO2, CH4, N2O,
HFCs, PFCs, SF6, NF3, or all.
c. Biogenic CO2 emissions in metric tonsof CO2 equivalent.
d. Other indirect (Scope 3) GHG
emissions categories and activities
included in the calculation.
e. Base year for the calculation, if
applicable, including:i. the rationale for choosing it;ii. emissions in the base year;iii. the context for any significant
changes in emissions that triggered
recalculations of base year emissions.
f. Source of the emission factors andthe global warming potential (GWP)
rates used, or a reference to the GWP
source.
g. Standards, methodologies,
assumptions, and/or calculation tools
used.

306-1

2021 ESG Report:a. For the organization’s significant
Environment –actual and potential waste-related
E-waste, page 24
impacts, a description of:i. the inputs, activities, and outputs thatlead or could lead to these impacts;
ii. whether these impacts relate towaste generated in the organization’s
own activities or to waste generated
upstream or downstream in its value
chain.

Waste
generationand significant
waste-related
impacts75

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GRI standard GRI standard
numbertitle
GRI 306
Waste

Disclosure
numberDescription
306-2
Managementof significant
waste-related
impacts

Response orReporting requirements
disclosure location
2021 ESG Report:a. Actions, including circularity
Environment –measures, taken to prevent waste
E-waste, page 24
generation in the organization’s
own activities and upstream anddownstream in its value chain, and to
manage significant impacts from waste
generated.
b. If the waste generated by theorganization in its own activities ismanaged by a third party, a descriptionof the processes used to determine
whether the third party manages
the waste in line with contractual or
legislative obligations.
c. The processes used to collect andmonitor waste-related data.

EMPLOYMENTGRI 401
Employment

401-1

New employee
hires and
employeeturnover

GRI 401

401-2

Benefits
provided to fulltime employeesthat are notprovided totemporaryor part-time
employees

a. Total number and rate of new
employee hires during the reporting
period, by age group, gender andregion.
b. Total number and rate of employee
turnover during the reporting period, by
age group, gender and region.
a. Benefits which are standard for fulltime employees of the organization
but are not provided to temporary or
part-time employees, by significant
locations of operation. These include,
as a minimum:i. life insurance;ii. health care;iii. disability and invalidity coverage;
iv. parental leave;
v. retirement provision;vi. stock ownership;vii. others.
b. The definition used for ‘significant
locations of operation’.

400 - SOCIAL

76

Employment

Cognizant ESG Report 2021

2021 ESG Report:
Social – Diversity
and inclusion (D&I)– Building a diverse
talent pipeline,
page 372021 ESG Report:
Social – Diversity
and inclusion (D&I)– Building a diverse
talent pipeline– Recruitment –Gathering – Programs
to take care of family,
page 36; Programs todrive career growth,
pages 36-37
2021 Form 10-K: Item 1.
Business – Engaging
Our People –Supporting Wellbeingat Work and Home,
pages 8-9

Introduction  Environment  Social  Governance  Appendix
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GRI standard GRI standard Disclosure
numbertitle
number
OCCUPATIONAL HEALTH AND SAFETY
GRI 403
Occupational 403-1
Health and
SafetyDescription

Reporting requirements

Occupational
healthand safety
management
systema. A statement of whether an
occupational health and safety
management system has been
implemented, including whether:i. the system has been implemented
because of legal requirements and, if so, alist of the requirements;
ii. the system has been implemented
based on recognized risk management
and/or management systemstandards/guidelines and, if so, a list of thestandards/guidelines.
b. A description of the scope of workers,
activities, and workplaces covered by
the occupational health and safety
management system, and an explanationof whether and, if so, why any workers,
activities, or workplaces are not covered.

Response or
disclosure location
2021 ESG Report:
Governance – Healthand safety (H&S),
page 48
Environmental, Healthand Safety Policy

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GRI standard GRI standard
numbertitle
GRI 403
Occupational
Health and
SafetyDisclosure
numberDescription
403-2
Hazardidentification,risk assessment,
and incident
investigation

GRI 403403-3

78

Occupational
Health and
SafetyCognizant ESG Report 2021

Occupational
health services

Reporting requirementsa. A description of the processes
used to identify work-related hazards
and assess risks on a routine andnon-routine basis, and to apply
the hierarchy of controls in order toeliminate hazards and minimize risks,
including:i. how the organization ensures thequality of these processes, including
the competency of persons who carrythem out;
ii. how the results of these processes
are used to evaluate and continually
improve the occupational health andsafety management system.
b. A description of the processes
for workers to report work-related
hazards and hazardous situations,and an explanation of how workers areprotected against reprisals.
c. A description of the policies andprocesses for workers to remove
themselves from work situations thatthey believe could cause injury or ill
health, and an explanation of how
workers are protected against reprisals.
d. A description of the processes used
to investigate work-related incidents,
including the processes to identify
hazards and assess risks relating to
the incidents, to determine corrective
actions using the hierarchy of controls,
and to determine improvements
needed in the occupational health andsafety management system.
a. A description of the occupational
health services’ functions that
contribute to the identificationand elimination of hazards andminimization of risks, and an
explanation of how the organization
ensures the quality of these services
and facilitates workers’ access to them.

Response or
disclosure location
2021 ESG Report:
Governance – Healthand safety (H&S),
page 482021 ESG Report:
Governance – Healthand safety (H&S),
page 48

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GRI standard GRI standard
numbertitle
GRI 403
Occupational
Health and
SafetyDisclosure
numberDescription
403-4
Workerparticipation,
consultation,andcommunication
on occupational
health andsafetyResponse orReporting requirements
disclosure location
2021 ESG Report:
a. A description of the processes for
Governance – Healthworker participation and consultationand safety (H&S),
in the development, implementation,
page 48and evaluation of the occupational
health and safety management
system, and for providing access to andcommunicating relevant information
on occupational health and safety toworkers.
b. Where formal joint management–
worker health and safety committees
exist, a description of their
responsibilities, meeting frequency,
decision-making authority, and whether
and, if so, why any workers are notrepresented by these committees.
2021 ESG Report:
Worker training a. A description of any occupational
Governance – Healthon occupational health and safety training provided
and safety (H&S),
to workers, including generic training
health andpage 48
as well as training on specific worksafety
related hazards, hazardous activities, or
hazardous situations.
2021 ESG Report:
Promotion ofa. An explanation of how the
worker healthorganization facilitates workers’ access Social – Diversity
and inclusion (D&I)
to non-occupational medical and– Building a diverse
healthcare services, and the scope oftalent pipeline
access provided.
b. A description of any voluntary health – Recruitment –Gathering – Programs
promotion services and programs
to support well-being,offered to workers to address major
non-work-related health risks, including page 36
the specific health risks addressed,
2022 Proxyand how the organization facilitates
Statement: Corporate
workers’ access to these services andgovernance –programs.
Sustainable outcomes– Supporting ourpeople – Talentdevelopment, page 23

GRI 403

Occupational
Health and
Safety403-5

GRI 403

Occupational
Health and
Safety403-6

79

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GRI standard GRI standard
numbertitle
GRI 403
Occupational
Health and
SafetyTRAINING AND EDUCATIONGRI 404
Training and
Education

80

Disclosure
numberDescription
403-8
Workers
covered by an
occupational
healthand safety
management
system404-1

Cognizant ESG Report 2021

Response orReporting requirements
disclosure location
a. If the organization has implemented 2021 ESG Report:
Governance – Healthan occupational health and safety
and safety (H&S),
management system based on legal
page 48
requirements and/or recognized
standards/guidelines:
Environmental, Healthi. the number and percentage ofand Safety Policy
all employees and workers who are
not employees but whose work and/or workplace is controlled by theorganization, who are covered by sucha system;ii. the number and percentage of
all employees and workers who are
not employees but whose work and/or workplace is controlled by theorganization, who are covered bysuch a system that has been internallyaudited;iii. the number and percentage of
all employees and workers who are
not employees but whose work and/or workplace is controlled by theorganization, who are covered by sucha system that has been audited orcertified by an external party.
b. Whether and, if so, why any
workers have been excluded from thisdisclosure, including the types of worker
excluded.
c. Any contextual information necessary
to understand how the data havebeen compiled, such as any standards,
methodologies, and assumptions used.

2021 ESG Report:
Average hours of a. Average hours of training that
Social – Skilling,training per year the organization’s employees haveundertaken during the reporting period, page 30
per employee
by:i. gender;ii. employee category.

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GRI standard GRI standard
numbertitle
GRI 404
Training and
Education

Disclosure
numberDescription
404-2
Programs for
upgradingemployee skills
and transition
assistanceprograms

Response orReporting requirements
disclosure location
2021 ESG Report: Social
a. Type and scope of programs
implemented and assistance provided – Skilling, page 30;
Diversity and inclusion
to upgrade employee skills.
(D&I) – Building ab. Transition assistance programs
diverse talent pipeline
provided to facilitate continued
employability and the management of – Recruitment –career endings resulting from retirement Gathering – Programs
to drive career growth,or termination of employment.
pages 36-37
2021 Form 10-K: Item 1.
Business – Engaging
Our People – Learning& Development
and Leadership
Development & TalentManagement, page 82022 Proxy Statement:
Corporate governance– Sustainableoutcomes – Supporting
our people – Talentdevelopment, page 23

81

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GRI standard GRI standard Disclosure
numbertitle
number
DIVERSITY AND EQUAL OPPORTUNITY
405-1
GRI 405
Diversityand Equal
Opportunity

CHILD LABORGRI 408
Child Labor

82

408-1

Cognizant ESG Report 2021

Response or
disclosure location

Description

Reporting requirements

Diversity of
governancebodies andemployeesa. Percentage of individuals within
the organization’s governance bodies
in each of the following diversity
categories:
i. Gender;
ii. Age group: under 30 years old, 30-50
years old, over 50 years old;iii. Other indicators of diversity where
relevant (such as minority or vulnerable
groups).
b. Percentage of employees per
employee category in each of thefollowing diversity categories:
i. Gender;
ii. Age group: under 30 years old, 30-50
years old, over 50 years old;iii. Other indicators of diversity where
relevant (such as minority or vulnerable
groups).

2021 ESG Report:
Social – Diversity
and inclusion (D&I)– Building a diverse
talent pipeline –Recruitment, pages 33
and 37

a. Operations and suppliers considered
to have significant risk for incidents of:i. child labor;
ii. young workers exposed to hazardouswork.
b. Operations and suppliers considered
to have significant risk for incidents ofchild labor either in terms of:i. type of operation (such as
manufacturing plant) and supplier;ii. countries or geographic areas with
operations and suppliers considered atrisk.
c. Measures taken by the organizationin the reporting period intended tocontribute to the effective abolition ofchild labor.

Our Company does
not make use of childlabor (i.e., a person
under the minimum
age provisions ofapplicable laws andregulations) or forcedlabor (i.e., prison labor,
indentured labor,
bonded labor, militarylabor, slave labor),
does not condone
any form of humantrafficking, and will
not work with third
parties who engage
in such practices.

Operations andsuppliers at
significant risk
for incidents ofchild labor2021 Form 10-K:
Item 1. Business –Engaging Our People– Advancing Diversity& Inclusion, page 72022 Proxy
Statement: Corporate
governance – Board
overview, pages 6-7;
Sustainable outcomes– Supporting ourpeople – Board
diversity matrix,
page 24

Introduction  Environment  Social  Governance  Appendix
GRI index  SASB index  TCFD index  Endnotes

GRI standard GRI standard Disclosure
numbertitle
number
FORCED OR COMPULSORY LABOR
409-1
GRI 409
Forced orCompulsory
Labor

SUPPLIER SOCIAL ASSESSMENTGRI 414
Supplier Social 414-1
Assessment

PUBLIC POLICYGRI 415
Public Policy

415-1

Response or
disclosure location

Description

Reporting requirements

Operations andsuppliers at
significant risk
for incidents
of forced orcompulsory
labor

a. Operations and suppliers considered Our Company does
not make use of childto have significant risk for incidents oflabor (i.e., a person
forced or compulsory labor either inunder the minimum
terms of:age provisions ofi. type of operation (such as
applicable laws andmanufacturing plant) and supplier;
regulations) or forced
ii. countries or geographic areas withlabor (i.e., prison labor,
operations and suppliers considered
indentured labor,
at risk.
b. Measures taken by the organization bonded labor, militarylabor, slave labor),
in the reporting period intended tocontribute to the elimination of all forms does not condone
any form of humanof forced or compulsory labor.
trafficking, and will
not work with third
parties who engage
in such practices.

New suppliers
that werescreened usingsocial criteriaa. Percentage of new suppliers thatwere screened using social criteria.

2021 ESG Report: Our
approach to ESG Governance - Supply
chain management- Supply chain andenvironmental
responsibility, 47

Political
contributions

a. Total monetary value of financial
and in-kind political contributions
made directly and indirectly by
the organization by country andrecipient/beneficiary.
b. If applicable, how the monetary
value of in-kind contributions wasestimated.

Public Policy (which isavailable here https://www.cognizant.
com/us/en/aboutcognizant/publicpolicy)

83Introduction  Environment  Social  Governance  Appendix
GRI index   SASB index  TCFD index  Endnotes

SASB Index
Table 1. Sustainability Disclosure Topics & Accounting Metrics
Unit of
Topic
Accounting Metric
Category
MeasureCode
TC-SIQuantitative Gigajoules(1) Total energy
130a.1(GJ),
consumed,
Percentage (%)(2) percentage
renewable

Environmental
Footprint ofHardware
Infrastructure

Data Privacy& Freedom ofExpression

Data Security

84

Discussion of theintegration ofenvironmental
considerations into
strategic planning fordata center needs

Discussion
n/aand Analysis

TC-SI130a.3

Description ofpolicies and practices
relating to behavioral
advertising anduser privacy

Discussion
n/aand Analysis

TC-SI220a.1

Discussion
n/aDescription of
approach to identifying and Analysis
and addressing
data security risks,
including use of thirdparty cybersecurity
standards

TC-SI230a.2

Cognizant ESG Report 2021

Response(1) 2021 ESG Report:
Environmental –Climate change
and TCFD reporting,page 23

Location(2) % renewabledisclosed forsignificant operations(India is wheremost of our ownedbuildings are located,along with two-thirdsof our workforce).
ESG Report
Integration of2021:
environmental
Environment,
considerations into
strategic planning for pages 10-25
data center needs
is discussed in the“Environment” section.
ESG Report
Description ofpolicies and practices 2021:
relating to behavioral Governance –advertising and user Data privacy,
privacy is discussed pages 53-54
under “Data privacy”
on pages 53-54.
ESG Report
Disclosures can be
2021:
found under “Datasecurity” on pages 51- Governance –53 of the ESG report Data security,
pages 51-53
and in the 10-K.

Introduction  Environment  Social  Governance  Appendix
GRI index   SASB index  TCFD index  Endnotes

Table 1. Sustainability Disclosure Topics & Accounting Metrics
Employee engagement Quantitative Percentage (%) TC-SIas a percentage
330a.2

Recruiting &Managing a
Global, Diverse& Skilled
Workforce
Percentage of gender Quantitative Percentage (%) TC-SI330a.3
and racial/ethnic group Percentage
representation for(1) management, (2) allother employeesn/aDescription of business Discussion
continuity risks related and Analysis
to disruptions ofoperations
Managing
Systemic Risks
from Technology
Disruptions

TC-SI550a.2“Our 2021 Cognizant ESG Report
People Engagement 2021:
Social –Survey, conducted
Engagement
via third party
platform, had a 65% survey results,
page 34
participation rateeven during the mostintense wave of the
COVID-19 pandemic,
which hit India
particularly hard.”
2021 ESG Report:
Social – Diversity
and inclusion (D&I)– Building a diverse
talent pipeline,
page 37
ESG Report
Different risks are2021:
discussed in the“Environment” section Environment,of the ESG report and pages 10-25
in the 10-K.
2021 10-K:
Item 1A. Risk
Factors – Risks
Related to ourBusiness andOperations,pages 12-1785

Introduction  Environment  Social  Governance  Appendix
GRI index  SASB index  TCFD index  Endnotes

TCFD Index
Topic
Governance: Disclose theorganization’s governancearound climate-relatedrisks and opportunities.

Recommended disclosurea. Describe the board’s oversight ofclimate-related risks and opportunities.

b. Describe management’s role in assessing
and managing climate-related risks
and opportunities.
a. Describe the climate-related risks andStrategy: Disclose theopportunities the organization has identified
actual and potential
impacts of climate-related over the short, medium, and long term.
risks and opportunities
on the organization’s
businesses, strategy,b. Describe the impact of climate-related
and financial planningrisks and opportunities on the organization’s
where such information
businesses, strategy, and financial planning.
is material.

Risk Management:
Disclose how theorganization identifies,
assesses, and manages
climate-related risks.

c. Describe the resilience of the organization’s
strategy, taking into consideration different
climate-related scenarios, including a 2°C or
lower scenario.
a. Describe the organization’s processes for
identifying and assessing climate-related risks.
b. Describe the organization’s processes for
managing climate-related risks.

c. Describe how processes for identifying,assessing, and managing climate-related risks
are integrated into the organization’s overallrisk management.

86

Cognizant ESG Report 2021

Response or location
2021 ESG Report: Environment – Climatechange and TCFD reporting – TCFD:
governance, pages 16-17
2021 ESG Report: Environment – Climatechange and TCFD reporting – TCFD:
governance, pages 16-17
2021 ESG Report: Environment – Climatechange and TCFD reporting – TCFD:
strategy – Identified climate-related risks
and opportunities for scenario-planning
exercise, page 18
2021 ESG Report: Environment – Climatechange and TCFD reporting – TCFD:
strategy – Physical risk scenarios andmitigation, pages 19-21; Transition risk
scenarios and mitigation, pages 21-22;
TCFD: opportunity, page 222021 Form 10-K: Item 1A. Risk Factors,
pages 12-19
2021 ESG Report: Environment – Climatechange and TCFD reporting – TCFD: risk
management, page 17
2021 ESG Report: Environment – Climatechange and TCFD reporting – TCFD: risk
management, page 17
2021 ESG Report: Environment – Climatechange and TCFD reporting – TCFD: risk
management, page 17; TCFD: strategy –Physical risk scenarios and mitigation,
pages 19-21; Transition risk scenarios andmitigation, pages 21-22
2021 ESG Report: Our approach to ESG– ESG oversight and governance, page
9; Environment – Climate change and
TCFD reporting – TCFD: governance,
pages 16-17

Introduction  Environment  Social  Governance  Appendix
GRI index  SASB index  TCFD index  Endnotes

Topic
Metrics and Targets:
Disclose the metrics andtargets used to assess
and manage relevant
climate-related risks andopportunities where suchinformation is material.

Recommended disclosurea. Disclose the metrics used by theorganization to assess climate-related risks
and opportunities in line with its strategy andrisk management process.
b. Disclose Scope 1, Scope 2 and, if
appropriate, Scope 3 greenhouse gas (GHG)
emissions, and the related risks.
c. Describe the targets used by theorganization to manage climate-related risks
and opportunities and performance against
targets.

Response or location
2021 ESG Report: Environment – Climatechange and TCFD reporting – TCFD: risk
management, page 17
2021 ESG Report: Environment – Climatechange and TCFD reporting, page 23
Carbon Reduction Plan
2021 ESG Report: Environment – Net zero,
page 132022 Proxy Statement: Corporate
governance – Sustainableoutcomes – Running a responsible
business – Environmental impact andsustainable business, page 25
2021 Annual Report: Intuition at scale
has the power to improve everyday life –Environmental, page 21
2021 10-K: Item 7. Management’s
Discussion and Analysis of Financial
Condition and Results of Operations- Executive Summary - Environmental,
Social and Corporate Governance,
page 24
Carbon Reduction Plan

87

Introduction  Environment  Social  Governance  Appendix
GRI index  SASB index  TCFD index  Endnotes

Endnotes

GHG emissions disclosures
1. Cognizant considers the principles and guidance ofthe World Resources Institute (WRI) and the World
Business Council for Sustainable Development’s(WBCSD) The Greenhouse Gas Protocol: A Corporate
Accounting and Reporting Standard, Revised and the
Corporate Value Chain (Scope 3) Accounting andReporting Standard (together the “GHG Protocol”), toguide the criteria to assess, calculate and report GHG
emissions, including energy consumption.
2. Organizational boundary relates to Cognizant’s sites
over which it had operational control during thereporting year.
3. Emissions associated with the following sites are notincluded: those under construction, not operational,
on short-term leases, co-working sites, or nonintegrated companies (those in process of being or
recently acquired).
4. Carbon dioxide equivalent (CO2 e) emissions areinclusive of carbon dioxide (CO2 ), nitrous oxide(N2 O), methane (CH4 ), and industrial gases, which
include hydrofluorocarbons (HFCs). The other GHGs
of sulfur hexafluoride (SF6 ), perfluorocarbons (PFCs)
and nitrogen trifluoride (NF3 ) are not emitted by
Cognizant’s sites. Emissions data by individual gas
is not disclosed as a majority of CO2 e relates to
CO2 . These CO2 e emissions utilize Global Warming
Potentials (GWPs) defined by the Intergovernmental
Panel on Climate Change’s (IPCC) Fourth Assessment
Report (AR4 - 100 year), unless a different Assessment
Report is already embedded in the emission factor
source. CO2 e are calculated by multiplying actualor estimated energy, fuel and refrigerant usage by
relevant emission factors taking into account theequivalent GWP.
5. GHG emissions quantification is subject to significant
inherent measurement uncertainty because ofsuch things as GHG emissions factors that areused in mathematical models to calculate GHG
emissions, and the inability of these models, due toincomplete scientific knowledge and other factors,

88

Cognizant ESG Report 2021

to accurately measure under all circumstances
the relationship between various inputs and theresultant GHG emissions. Environmental and energy
use data used in GHG emissions calculations are
subject to inherent limitations, given the natureand the methods used for measuring such data.
The selection by management of different but
acceptable measurement techniques could haveresulted in materially different amounts or metrics
being reported.
6. MTCO2 e = Metric tons of carbon dioxide equivalent.
7. Related to Scope 1 GHG emissions:●

Scope 1 stationary fuels include diesel fuel used
for backup generators, liquid petroleum gas, andnatural gas used by Cognizant sites.
———

Diesel powered backup generators are in use
at certain sites in Brazil, France, Hungary, India,
Lithuania, Mexico, the Philippines, Poland, andthe United States (U.S.). Diesel consumption(volume) was obtained from third-party invoices
or property owners’ reports. Stationary diesel
is adjusted for stockpiling for sites in India.
Where diesel consumption was not available,
Cognizant estimated diesel consumption using
the intensity method (liters/square foot) basedon comparable Cognizant sites.
Food vendors on-site at fully leased or owned
sites in India consume liquid petroleum gas.
Actual consumption data was obtained fromthird-party invoices or vendors’ reports. No
estimates were made.
U.S. and Canadian sites, and certain European
sites are assumed to consume natural gas.
Natural gas consumption was obtained fromthird-party invoices or property owners’ reports.
For sites where consumption data was notavailable for certain months, an averagemonthly consumption was calculated basedon the invoices received for that site. For sites
where consumption data was not available,

Introduction  Environment  Social  Governance  Appendix
GRI index  SASB index  TCFD index  Endnotes

property owners’ reports. For sites where
consumption data was not available for certain
months, an average monthly consumption was
calculated based on the invoices received forthat site. For all other sites (except the U.S. andCanada) where electricity consumption was
not available, Cognizant estimated electricity
usage using the intensity method (kWh/squarefoot) based on comparable Cognizant sites.
For sites in the U.S. and Canada, Cognizant
used the 2012 Commercial Buildings Energy
Consumption Survey intensity factors forUnited States offices.

Cognizant estimated natural gas consumption
using the 2012 Commercial Buildings Energy
Consumption Survey intensity factors forUnited States offices.
●

Scope 1 mobile fuels include diesel or gasoline
fuels used for the Cognizant vehicle fleet in
Belgium, Brazil, Germany, India, the Netherlands,
and Portugal.
—

—

●

●

●

●

Cognizant used invoice data where available tomeasure mobile fuel consumption. For vehicle
fleets where mobile fuel consumption data was
not available for certain months, an averagemonthly consumption was calculated based on
the invoices received for that vehicle fleet.
Where invoice data was not available,
Cognizant estimated mobile fuel consumption
using the intensity method (annual average
liters) from other Cognizant vehicles.

—

Scope 1 emissions from refrigerants apply to
Kyoto Protocol refrigerants used in the operationof sites in India and the Philippines. All otherrefrigerant emissions are outside of Cognizant’s
operational control and are excluded from
reporting. Refrigerant top ups were obtained fromthird-party invoices.
Energy associated with on-site solar panels(not connected to a third-party grid) is generated
and consumed on-site at sites in India. Cognizant
categorized emissions from on-site solar
panels within its Scope 1 GHG emissions withzero emissions.
Emission factors: United Kingdom (UK) Government
GHG Conversion factors for Company
Reporting (2021).
Estimated emissions from the sources above
account for approximately 21% of total Scope 1
GHG emissions.

8. Related to Scope 2 GHG emissions:●—

Scope 2 purchased electricity applies to electricity
used at Cognizant sites and purchased a) from thegrid, or b) from the property-owner for Cognizant’s
direct use on-site.
—

●

●

●

Electricity purchased from a property ownerand generated through captive diesel
generators in India is based on invoice
data and categorized under Scope 2 aspurchased electricity.
In certain countries, Cognizant has sites thathouse on-site data centers or Cognizant
operated (infra-managed) data centers.
Electricity used by these data centers is
included in Scope 2. Cognizant calculated its
data center electricity use based on contracted
power, its share of power utilization provided by
the partner data centers and operating hours
per year. Data centers operate 24 hours perday, 7 days per week, 365 days per year.

Scope 2 district heating and cooling is used for one
site in Hungary. Consumption was obtained fromthird-party invoices. No estimates were made.
Scope 2 electricity consumption by electricvehicles charged offsite for Cognizant’s vehicle
fleet in Belgium and the Netherlands. Cognizant
used the intensity method (annual average
km/vehicle) from other Cognizant vehicles.
Emission factors: Location-based:—

Grid electricity:●

India: Government of India Ministry of PowerCentral Electricity Authority CO2 baseline
database for the Indian Power Sector (2021).

Cognizant captured actual electricity usage
from the grid from third-party invoices or89

Introduction  Environment  Social  Governance  Appendix
GRI index  SASB index  TCFD index  Endnotes

●

●

—

—

●

District heating and cooling, and electricvehicles charged offsite: UK Government
GHG Conversion factors for Company
Reporting (2021).
Grid electricity:

●

●

—

—

—

●

●

Emission factors:——

For all other countries: Same as the locationbased factors.

District heating and cooling, and electricvehicles charged offsite: Same as the locationbased factors.

Estimated emissions from the sources above
account for approximately 15% of Scope 2 GHG
emissions (location-based) and approximately
18% of Scope 2 GHG emissions (market-based)
and total Scope 2 GHG emissions (referencing
market-based).

Calculated based on annual procurement
spend data obtained from Cognizant’s
procurement system.

Cognizant ESG Report 2021

For all other suppliers and spend categories:
Quantis emission factors available from theGreenhouse Gas Protocol Scope 3 evaluator
tool (cited October 2021).

Calculated based on activity data (diesel, liquid
petroleum gas, natural gas, gasoline, electricity,
district heating and cooling, and electric vehicles
charged offsite) from Scope 1 and 2 emissions.
—

European sites: Association of Issuing Bodies(AIB) European Residual Mix 2020 v1.0 (lastupdated 2020).

Electricity purchased from property owners:
Same as the location-based factors.

For thirty (30) of Cognizant’s top suppliers byspend in 2021: Based on publicly available data,
as reported to CDP Climate Change for 2020,
to create supplier-specific emission factors.

10. Related to GHG emissions from Scope 3, category 3:
fuel- and energy-related activities:

Solar and wind energy purchased throughpower purchase agreements or energy
contracts or through the property owner:
Treated as zero emissions.

9. Related to GHG emissions from Scope 3, category 1:purchased goods and services, category 2: capital
goods, and category 4: upstream transportationand distribution:

90

Emission factors:—

All other countries: International Energy
Agency (IEA) Emissions Factors (2021).

Electricity purchased from property owners:
UK Government GHG Conversion factors
for Company Reporting (2021) for 100%mineral diesel.

●

●

●

Emission factors: Market-based:—●

U.S.: U.S. Environmental Protection Agency
Emissions & Generation Resource Integrated
Database (“eGrid”) 2020 factors by
sub-region (2021).

WTT for diesel, liquid petroleum gas, naturalgas, gasoline, electricity, district heating andcooling: UK Government GHG Conversion
factors for Company Reporting (2021).
T&D losses for electricity: IEA Emissions
Factors (2021).
T&D losses for electric vehicles charged offsite:
UK Government GHG Conversion factors for
Company Reporting (2021).

11. Related to GHG emissions from Scope 3, category 5:
waste generated in operations:●●

Calculated using an average intensity factor
estimated based on a peer benchmark and thenumber of employees obtained from the HR
system as of December 31, 2021.
Emission factors: GHG emissions intensity factor
by employee based on publicly available data,
as reported to CDP Climate Change for 2020, for
Infosys, as a peer benchmark.

12. Related to GHG emissions from Scope 3, category 6:
business travel:●

Air and rail travel: The data used in the calculation
is obtained from reports provided by a third-party
commercial travel manager, which includes total
distance per trip for business travel booked:—

Air travel covers domestic and international
travel by Cognizant employees globally.

Introduction  Environment  Social  Governance  Appendix
GRI index  SASB index  TCFD index  Endnotes

—

●

●

Rail travel covers commuter train, nationalrail, and international rail by Cognizant
employees globally.

Other business travel categories: Calculated
based on annual procurement spend data(accommodation, car lease, relocation services,transportation, travel management, and visa &immigration services) obtained from Cognizant’s
procurement system.

●

●

—

—

Air and rail travel, and associated WTT: UK
Government GHG Conversion factors for
Company Reporting (2021).

●

Other business travel categories: Quantis
emission factors available from the Greenhouse
Gas Protocol Scope 3 evaluator tool (cited
October 2021).

Includes employees commuting between
their homes and their worksites. Calculatedusing an average intensity factor estimatedbased on peer benchmarks and the number of
employees obtained from the HR system as ofDecember 31, 2021.
Emission factors: Average GHG emissions intensity
factor for employee commuting based on publicly
available data, as reported to CDP Climate
Change for 2020, for three (3) similar companies,
Infosys, IBM, and Wipro.

●

—

—

Third party data centers: Calculated energy use
based on contracted power, its share of power
utilization provided by the partner data centersand operating hours per year. Data centers
operate 24 hours per day, 7 days per week,
365 days per year. Where information was notavailable, usage was estimated using the averagecontracted power, power utilization and days
operating in the year of all other data center sites
where this information was available.

India: Government of India Ministry of PowerCentral Electricity Authority CO2 baseline
database for the Indian Power Sector (2021).
U.S.: U.S. Environmental Protection Agency
eGrid 2020 factors by sub-region (2021).
All other countries: IEA Emissions Factors(2021).

T&D losses for electricity: IEA Emissions Factors(2021).
WTT for electricity: UK Government GHG
conversion factors for Company Reporting(2021).

15. Related to GHG emissions from Scope 3, category 15:
investments:●●

14. Related to GHG emissions from Scope 3, category 8:
upstream leased assets:●

Electricity:●

13. Related to GHG emissions from Scope 3, category 7:
employee commuting:●

Emission factors:

Emissions factors:—●

Common areas: Actual common area share ofelectricity and captive diesel generator usage
obtained from landlords was available for certain
sites in India. Cognizant used the India data todevelop an average intensity benchmark for thecommon areas for all other sites, which was thenmultiplied by the site’s floor area.

●●

Includes all minority investments where Cognizant
has (1) less than 50% ownership and (2) either
voting rights or a seat on the board (that is not
merely an observer position), but (3) does not haveoperational control of the entity.
As investment portfolios are dynamic andchange frequently throughout the reporting
year, Cognizant uses December 31 as the fixed
point in the reporting year to determine whichinvestments to include in its emissions for thereporting year (i.e., minority investments owned asof December 31 are included in reporting).
Calculated using a GHG emissions factor by dollar
estimated based on peer benchmarks, the revenueof the minority investment, and Cognizant’s
percentage ownership as of December 31, 2021.
Emission factors: GHG emissions intensity factor by
dollar calculated from an average emissions per
dollar of revenue for a selection of IT & softwaredevelopment companies as reported to CDP

91

Introduction  Environment  Social  Governance  Appendix
GRI index  SASB index  TCFD index  Endnotes

Climate Change for 2020. Cognizant collected the2019 Scope 1, Scope 2, and Scope 3 emissions fortwenty-three (23) companies in the IT & software
services industry, divided the emissions by the 2019
revenue for these companies to form an average
GHG emissions intensity factor by dollar.

and total energy consumption metrics, collectively,
the “updated measurements”. The updated
measurements include:●

Total Scope 1:—

Energy consumption disclosures
16. Direct and indirect energy include total gigajoulesof direct on-site renewable energy consumption
from solar panels, direct energy purchased, whichis comprised of diesel, liquid petroleum gas, naturalgas, and gasoline, and indirect energy purchased
which is comprised of purchased electricity, district
heating and cooling generated offsite, as well as
electricity consumption by electric vehicles charged
offsite for the year ended December 31, 2021.

—

17. The preparation of the energy consumption metrics
requires management to establish the criteria, makedeterminations as to the relevancy of information
to be included, and make assumptions that affectreported information. The selection by managementof different but acceptable measurement techniques
could have resulted in materially different amounts or
metrics being reported.

—

18. Renewable electricity includes solar and wind energy
purchases made by Cognizant for use at sites
in India.
19. Estimated energy consumption from the sources
above account for approximately 22% of the totalenergy consumption for Scope 1 and 2 activities.

●

92

Cognizant ESG Report 2021

Natural gas: Cognizant expanded thereporting boundary to include sites in Europe.
Cognizant made the assumption that all sites
in the U.S. and Canada consume naturalgas. In addition, for sites where natural gas
consumption was not available, Cognizant
refined its methodology to estimate natural
gas consumption using the 2012 Commercial
Buildings Energy Consumption Survey intensity
factors for United States offices instead ofusing an internally derived intensity factor.
Mobile fuels: Cognizant expanded the reporting
boundary to include the vehicle fleet in Belgium,
Brazil, Germany, the Netherlands, and Portugal,
which include both diesel and gasoline
vehicles, and measured consumption using themethodology described in 7. above.

Scope 2 (Location-based and Market-based) andTotal Scope 2 (referencing Market-based):—

Summary of Changes
in Reporting Boundary,Measurement Methods,
and Criteria
20. In 2021, Cognizant expanded the scope of ourmeasured and reported GHG emissions and energy
consumption metrics and refined the criteria andmeasurement methods used to calculate our
Scope 1, Scope 2, and Scope 3 GHG emissions

Diesel powered backup generators:
Cognizant expanded the reporting boundary
to include sites in Brazil, France, Hungary,
Lithuania, Mexico, and Poland and measured
consumption using the methodology describedin 7. above. In addition, Cognizant reclassified
emissions related to diesel powered backup
generators in the Philippines from Scope 2(captive diesel generators) to Scope 1.

—

Cognizant reclassified emissions related todiesel powered backup generators in thePhilippines from Scope 2 (captive diesel
generators) to Scope 1. Cognizant expanded
the reporting boundary to include inframanaged data centers, district heating
and cooling, and electric vehicles charged
offsite and measured consumption using themethodology described in 8. above.
For sites in Canada where electricity
consumption was not available, Cognizant
refined its methodology to estimate electricity
consumption using the 2012 Commercial

Introduction  Environment  Social  Governance  Appendix
GRI index  SASB index  TCFD index  Endnotes

Buildings Energy Consumption Survey intensity
factors for United States offices instead ofusing an internally derived intensity factor.
●

Scope 3, category 3: fuel- and energy-related
activities:—●

Scope 3, category 6: business travel:—●

Cognizant expanded the reporting boundary
to include other business travel categories andmeasured consumption using the methodology
described in 12. above.

Scope 3, category 7: employee commuting:—●

Metric impacted as a result of updates
to Scope 1 and 2 consumption data
described above.

Cognizant expanded the reporting boundary
to include worldwide employees and refined its
calculation methodology. Cognizant calculated
emissions from employee commuting
using an average intensity method (GHG
emissions by employee) estimated based ona peer benchmark applied to the number of
employees as of December 31, 2021 insteadof using employee commuting trips fromcompany-provided transportation in India
logged in Cognizant’s automated system.

Total energy consumption for Scope 1 and 2
activities:—

Metric impacted as a result of updates
to Scope 1 and 2 consumption data as
described above.

93

Forward-looking statements
This report includes statements which may constituteforward‑looking statements made pursuant to thesafe harbor provisions of the Private Securities
Litigation Reform Act of 1995, the accuracy of which
are necessarily subject to risks, uncertainties andassumptions as to future events that may not prove
to be accurate. These statements include, but are notlimited to, express or implied forward‑looking statements
relating to our expectations regarding our vision,
strategy, initiatives and commitments, the impact of
our ESG targets and climate efforts and offerings on
our business, our future financial results, our clients, ourassociates and our communities. These statements areneither promises nor guarantees, but are subject to avariety of risks and uncertainties, many of which arebeyond our control, which could cause actual results
to differ materially from those contemplated in theseforward‑looking statements. Existing and prospective
investors are cautioned not to place undue relianceon these forward‑looking statements, which speak
only as of the date hereof. Factors that could cause
actual results to differ materially from those expressedor implied include general economic conditions, thecontinued impact of the COVID‑19 pandemic, changes
in the regulatory environment, including with respect toimmigration and taxes, legal, reputational and financial
risks resulting from cyberattacks, the effectivenessof business continuity plans, energy prices, lack oftechnological innovations, climate-related conditions andweather events, and the other factors discussed in our
most recent Annual Report on Form 10‑K, as updated byour most recent Quarterly Report on Form 10‑Q and otherfilings with the Securities and Exchange Commission.
Cognizant undertakes no obligation to update or revise
any forward‑looking statements, whether as a result of
new information, future events, or otherwise, except as
may be required under applicable securities law.