United Nations Global Compact - Logica Communication on Progress

CEO Statement
Logica has been a signatory of the UN Global Compact since 2008. This is our third Communication on Progress.

Since becoming a signatory we have made real 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 four years. The on-going 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 2011 our people spent 184,000 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 7% of our people were involved in community projects in 2011.

For additional information please see our annual Corporate Responsibility Report 2012.

Principle 1:
Businesses should support and respect the protection of internationally proclaimed human rights.

Protection of internationally recognised principles including Human Rights is expressly part of Logica’s Ethics Policy, which is available to all Logica people and publically available on our internet site. An Ethics training course which covers this issue is mandatory for all our people. As of March 2012, over 90% of Logica staff had completed and passed their Ethics training, with the future aim to increase this to all staff.

As set out in Logica’s Supplier Corporate Responsibility Policy, which forms a standard part of our Terms and Conditions, our suppliers are required to adhere to the principles of the UN Global Compact.

Principle 2:
Businesses should make sure that they are not complicit in human rights abuses.

Logia’s internal audit function works to uphold our Ethics Policy, by checking the completion of Ethics training amongst our people and management. It also checks compliance with our Group Hospitality & Gifts Policy and performs additional checks on compliance for countries that are deemed high risk for human rights abuses.

Through our procurement programme we continue to encourage our suppliers to respect human rights throughout their own supply chains. If suppliers found to be complicit in the violation of human rights, remediation action will be taken and the supplier’s contract terminated.

In Logica Sweden we have also begun working with ECPAT and the Financial Coalition against Child Pornography, to work towards eliminating child pornography and human trafficking. Logica Sweden's membership in the coalition means taking an active standpoint, to increase the knowledge about the problems to contribute to the preventative work of the coalition.

Principle 3:
Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.

Logica recognises collective relationships with trade unions help us support our business goals. Additionally, we remain fully committed to ensuring a fair and supportive environment for all of our people regardless of whether they have formal employee representation.

We continue to co-operate with local works council and at a pan-European level with the European Works Council (EWC) to ensure our employees’ interests are protected. In 2011, three EWC meetings took place in which restructuring programmes, pay review and pension schemes were among the issues raised at the consultation throughout the year.

Principle 4:
Businesses should support the elimination of all forms of forced and compulsory labour.

Our Ethics policy requires our people to avoid all forms of forced or compulsory labour. This principle is also reflected in our Supplier Corporate Responsibility Policy which contains specific requirements against the use of forced labour.

We are working with our suppliers to ensure this policy is adhered to. We have no recorded incidents of forced or compulsory labour within our operations.

Principle 5:
Businesses should support the effective abolition of child labour.

Our Ethics policy requires our employees to avoid all forms child labour. This principle is also reflected in our Supplier CR policy which contains specific requirements against the use of child labour.

We are working with our suppliers to ensure this policy is adhered to. We have never had any recorded incidents of child labour within our operations.

Principle 6:
Businesses should support the elimination of discrimination in respect of employment and occupation.

We aim to create a diverse and inclusive working environment that is welcoming and engaging for our people.

Logica promotes and supports 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.

Principle 7:
Businesses should support a precautionary approach to environmental challenges.

We recognise climate change is one the biggest global challenges mankind is facing today, and that early action is pivotal to help alleviate any future crisis. Since 2008, Logica has set emissions reductions targets in accordance with internationally set practices that form a part of our core business commitments.

Good governance is instrumental to achieving our emissions reductions targets, and Logica has a corporate responsibility committee which has executive and board level representation and an environmental steering committee. In 2012 we further developed our governance framework by establishing country level CR Executive Sponsors. These sponsors sit on the country senior management teams and are responsible for reviewing carbon performance against targets.

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 2011 more than 17,000 employees undertook our online environment training.

Principle 9:
Businesses should encourage the development and diffusion of environmentally friendly technologies.

Logica is a leading provider of sustainability services. These services range from helping our clients to measure and plan to reduce their energy costs to co-ordinating the eco-systems needed to deliver the low carbon transport and power networks needed in the 21stcentury.

We have developed technologies, such as IBOR, a public space smart management solution, that can reduce the energy and emissions of infrastructure needs such as street lighting. We have created an innovative online travel planning tool that helps people plan more environmental friendly journeys. And we have designed EMO, an award winning vehicle emissions monitoring solution that helps drivers adopt more sustainable driving habits.

The real potential for Logica to positively impact the environment is through the sustainability services we deliver our clients. The carbon reduction achieved in a 12 month period, for one client alone on a Green IT project equated to 14% of Logica’s own carbon footprint. We continue to develop and promote environmentally friendly technologies as 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 Ethics Policy contains detailed guidelines on anti-bribery and corruption for all of our staff, who are obliged to undertake and pass our Ethics training course.

Our Supplier Corporate Responsibility policy reflects the approach to corruption we require of our employees and suppliers.

Logica’s Audit Committee maintains a Fraud Response Protocol which covers how we respond to fraud and who we need to inform. In 2011 there were no recorded incidents of major corruption.