United Nations Global Compact - Logica Communication on Progress

Statement of support from Logica’s CEO, Andy Green:
Logica has been a signatory of the UN Global Compact since 2008. This is our second Communication on Progress.

Since becoming a signatory we have made significant progress in implementing the ten principles of the Compact. Central to our business is a commitment to the wellbeing of our people, our environment and the communities in which we operate.

We continue to work to inspire our people, clients, shareholders and communities. We do this in a number of ways. Our work in sustainability has reduced our own and our clients’ environmental impact. Our work in this area has been recognised by the Carbon Disclosure Project, where we have been in the leadership index for the last three years. The ongoing personal development of our people is also key to our success. The Logica University offers more than 3,000 e-learning courses to support the development of our people. In 2010 our people spent 55,000 hours completing e-learning courses. We take pride in supporting and creating shared value in the communities in which we live and work. As well as passing on our learning, it helps us to learn new skills and build relationships with our colleagues and clients. Around 3% of our people were involved in community projects in 2010.

Since 2009, as part of our GRI level ‘A’ accredited Corporate Responsibility report, we have annually communicated our progress in support of the ten principles in human rights, labour rights, environment, corruption and the environment. To read our full 2010 Corporate Responsibility report please visit our website.
Principle Our Response Actions Measurement or Outcomes
Principle 1:
Businesses should support and respect the protection of internationally proclaimed human rights.		 We respect human rights within our sphere of influence and are committed to operating as a leading employer. Our Ethics policy outlines our approach to human rights. Our Supplier Corporate Responsibility policy requires our suppliers to support and respect the protection of nationally and internationally proclaimed human rights, and to ensure they are not complicit in human rights abuses. When tendering and formally assessing major suppliers we consider supplier compliance with our ethical policies and practices. We achieved our target of integrating our Supplier CR policy in 50% of new supplier contracts let in 2010. All major countries now include this as part of all their contracts. Remaining countries will include the Supplier CR policy in contracts by the end of 2012.

We will begin investigating selected supplier’s compliance with our supply CR policy in 2012.

We will continue to investigate any breaches of our policy by suppliers and actively consider CR performance in any renewals or extensions.
Principle 2:
Businesses should make sure that they are not complicit in human rights abuses.		 Our Ethics policy and Supplier CR policy, Corporate Responsibility Report outline our approach to human rights. Our Ethics policy is communicated to our people and its contents is reviewed on an annual basis to ensure it is aligned to industry best practice and meets the ongoing requirements of our business. We will continue to investigate any breaches of our policy by suppliers and actively consider CR performance in any renewals or extensions.
Principle 3:
Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.		 An outline of our programme regarding collective bargaining agreements can be found in our 2010 Corporate Responsibility Report. Our approach to collective bargaining is outlined in our ethics policy. We continue to co-operate with local works council and at a pan-European level with the European Works Council to ensure our employees’ interests are protected. We remain fully committed to ensuring a fair and supportive environment for all of our people regardless of whether they have formal employee representation.
Principle 4:
Businesses should support the elimination of all forms of forced and compulsory labour.		 Our Ethics policy requires our employees to avoid all forms of forced or compulsory labour. This principle is also reflected in our Supplier CR policy. We are working with our suppliers to ensure this policy is adhered to. When tendering and formally assessing major suppliers we consider supplier compliance with ethical policies and practices. In 2011 we intend to increase the number of people taking our Ethics training to 70%.
Principle 5:
Businesses should support the effective abolition of child labour.		 Our Ethics policy requires our employees to support the effective abolition of child labour. We are working with our suppliers to ensure this policy is adhered to in our supply chain. Through regular communication of our Ethics policy and review of our employee’s adherence to it, we ensure we maintain a record of no reported incidents of child labour or forced labour, within Logica’s own operations. We will continue to investigate any breaches of our CR supplier policy by suppliers and actively consider CR performance in any renewals or extensions.
Principle 6:
Businesses should support the elimination of discrimination in respect of employment and occupation.		 We promote and support a diverse workforce at all levels of the organisation. We ensure our people or potential hires are not unlawfully discriminated against directly or indirectly as a result of their colour, creed, race, nationality, ethnic or national origin, connections with a national minority, marital or civil partnership status, pregnancy, age, disability, religion, or similar philosophical belief, sexual orientation, gender or gender reassignment or trade union membership and never tolerate harassment in any form. To ensure employee behaviour is in line with promoting and supporting a diverse workforce, local regions have produced their own diversity policies. Examples can be found on our website. All remaining local regions that have not already done so will produce a diversity policy by end of 2012.
Principle 7:
Businesses should support a precautionary approach to environmental challenges.		 We aim to continually improve the sustainability of our operations. In 2010 we continued to minimise our impact on the environment. In addition to our own environmental programme, outlined in our Environment policy, we also support our clients in reducing their environmental impact. Our target is to reduce our absolute emissions by 50% by 2020, based on a 2008 baseline.
Principle 8:
Businesses should undertake initiatives to promote greater environmental responsibility.		 Through the efforts of our people, and by harnessing technology, we are reducing the energy, carbon and resource impact of our business. We can power down our systems overnight and at weekends and use virtualisation to share servers in our data centres. We ‘Smart Work’, using collaborative technology to reduce commuting and business travel. And we’re switching to more sustainable sources of electricity. Our internal communications programme involves regular environment awareness events, highlighting the issue of our business and personal environmental responsibilities. In 2010 around 2,000 employees undertook our online environment training. A major communications programme is underway to ensure that 70% of Logica employees undertake the training during 2011. Read more about our environment programme in our CR report. In 2010 we reduced emissions by 7%. We are establishing groupwide and local plans to ensure we meet our internal carbon reduction and waste reduction targets. We introduced online environment training for all employees and held our annual Group environment week to encourage employee participation in environmentally friendly behaviours
Principle 9:
Businesses should encourage the development and diffusion of environmentally friendly technologies.		 Logica is a leader in sustainability services. These services range from energy management for Swedish consumers, to managing the carbon impact of how we drive and what we buy. And we’ve also used insight from our own internal sustainability programme to create value for our clients. Our innovative, smart and sustainable solutions have recently been recognised by two prestigious National ICT Awards for 2011 from the Dutch ICT industry board. Logica won the ICT Office Innovation Award for its pioneering charging solution for electric vehicles. Together with Microsoft, Logica also won the ICT Environment Award for the public space smart management solution for energy and cost saving in areas including street lighting.

More information can be found on our website.		 We have developed a number of environmentally friendly technologies. Our online trip planner service makes it easier for people to make more sustainable journeys. We have also developed an electric vehicle charging solution. In addition, our EMO vehicle emissions monitoring solution provides information to encourage more sustainable driver behaviours and reduces fuel consumption by 8%. The carbon reduction that we achieved for one client alone on a Green IT project equated to 14% of Logica’s own carbon footprint. This demonstrates that our real potential to positively impact the environment lies in our client sustainability services. We will continue to encourage the diffusion of environmentally friendly technologies as it remains a key part of our business strategy.
Principle 10:
Businesses should work against corruption in all its forms, including extortion and bribery.		 Logica is committed to the highest standards of corporate governance and professional integrity. We conduct our business around the world in an ethical, honest and accountable manner in accordance with all applicable laws, rules and regulations. Our Supplier Corporate Responsibility policy reflects the approach to corruption we require of our employees and suppliers. This policy is included in the majority of purchase orders across Logica.

Bribery and corruption is covered in our Ethics training module. A major communications programme is underway to encourage 70% of our employees undertake the training in 2011.		 We continue to record incidents in corruption and will decide how we should effectively measure progress on this principle after the implementation of the ethics training programme.

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