1. Corporate Sustainability IMPLEMENTING DOW JONES SUSTAINABILITY INDEX FOR EMERGING MARKETS GROUP7: BARADA PS, JASBIR L, MARK E, PANKAJ J, RAVI M, SHOVIT H, 8303 SUSTAINABLE BUSINESS & DEVELOPMENT FMS EMBA SEMESTER-3

2. Corporate Sustainability Business approach that creates long-term shareholder value by embracing opportunities and managing risks deriving from ECONOMIC, ENVIRONMENTAL and SOCIAL DEVELOPMENTS. 8303 SUSTAINABLE BUSINESS & DEVELOPMENT FMS EMBA SEMESTER-3 MARK How? Gearing strategies & management Why? To harness the Market’s potential For Whom? Sustainable Products & Services What for? Successfully reducing and avoiding sustainability costs and risks

3. Corporate Sustainability Addressing GLOBAL and INDUSTRY challenges in a variety of AREAS: 8303 SUSTAINABLE BUSINESS & DEVELOPMENT FMS EMBA SEMESTER-3 MARK Strategy: Integrating long-term economic, environmental and social aspects in their business strategies while maintaining global competitiveness and brand reputation. Financial: Meeting shareholders' demands for sound financial returns, long-term economic growth, open communication and transparent financial accounting. Customer & Product: Fostering loyalty by investing in customer relationship management and product and service innovation that focuses on technologies and systems, which use financial, natural and social resources in an efficient, effective and economic manner over the long-term. Governance and Stakeholder: Setting the highest standards of corporate governance and stakeholder engagement, including corporate codes of conduct and public reporting. Human: Managing human resources to maintain workforce capabilities and employee satisfaction through best-in-class organizational learning and knowledge management practices and remuneration and benefit programs.

4. Sustainability Investing Increasingly, diversifying portfolios by investing in companies that set industry-wide best practices with regard to sustainability. 8303 SUSTAINABLE BUSINESS & DEVELOPMENT FMS EMBA SEMESTER-3 SHOVIT Two factors drive this development: First, the concept of corporate sustainability is attractive to investors because it aims to increase long- term shareholder value. Second, sustainability leaders are increasingly expected to show superior performance and favourable risk/return profiles. To benchmark the performance of their sustainability investments, private and institutional investors need global, rational, consistent, flexible and, most importantly, investable indices. In response, S&P Dow Jones Indices and RobecoSAM offer the Dow Jones Sustainability Index (DJSI) family. For investors, the integrity of the Corporate Sustainability Assessment and the index calculation results in independent, reliable and investable sustainability indices. For companies, the DJSI provides a financial quantification of their sustainability strategy and their management of sustainability opportunities, risks and costs. "What gets measured, gets done“. The DJSI will provide investors and companies with insight into the trends and events driving global supply and demand of sustainable products and services.

5. Sustainability Megatrends 8303 SUSTAINABLE BUSINESS & DEVELOPMENT FMS EMBA SEMESTER-3 SHOVIT

6. Corporate Sustainability Assessment Based on RobecoSAM’s internationally recognized leading Corporate Sustainability Assessment (CSA) methodology 8303 SUSTAINABLE BUSINESS & DEVELOPMENT FMS EMBA SEMESTER-3 SABUT

7. CSA – Universe Composition Derived from Assessment of the 2500 largest listed companies in terms of float adjusted capitalization in the S&P Global Broad Market Index SM. Current DJSI World components with a float adjusted market capitalization above USD 500 million. Classified to one of the 59 industries as defined by RobecoSAM. Ethical Exclusion Classification. Adult Entertainment, Alcohol, Armament, Nuclear, Gambling. 8303 SUSTAINABLE BUSINESS & DEVELOPMENT FMS EMBA SEMESTER-3 SABUT

8. CSA: Indian Scenario Company NameCountryRobecoSAM GICS Industry DJSI World Universe DJSI World Enlarged Universe DJSI Emerging Markets Universe Bajaj Auto LtdIndiaAUT AutomobilesTRUE Hero Motocorp LtdIndiaAUT AutomobilesTRUE Mahindra & Mahindra LtdIndiaAUT AutomobilesTRUE Tata Motors LtdIndiaAUT AutomobilesTRUE Axis Bank LtdIndiaBNK BanksTRUE HDFC Bank LtdIndiaBNK BanksTRUE Housing Development Finance CorpIndiaBNK BanksTRUE ICICI Bank LtdIndiaBNK BanksTRUE Indusind Bank LtdIndiaBNK BanksTRUE State Bank of IndiaIndiaBNK BanksTRUE United Spirits LtdIndiaBVG BeveragesTRUE Asian Paints LtdIndiaCHM ChemicalsTRUE Coal India LtdIndiaCOL Coal & Consumable FuelsTRUE Ambuja Cements LtdIndiaCOM Construction MaterialsTRUE Ultratech Cement LtdIndiaCOM Construction MaterialsTRUE Larsen & Toubro LtdIndiaCON Construction & EngineeringTRUE Cipla Ltd/IndiaIndiaDRG PharmaceuticalsTRUE Dr Reddy's Laboratories LtdIndiaDRG PharmaceuticalsTRUE Sun Pharmaceutical Industries LtdIndiaDRG PharmaceuticalsTRUE NTPC LtdIndiaELC Electric UtilitiesTRUE Power Grid Corp of India LtdIndiaELC Electric UtilitiesTRUE Infrastructure Development Finance Co LtdIndiaFBN Diversified Financial Services and Capital MarketsTRUE Kotak Mahindra Bank LtdIndiaFBN Diversified Financial Services and Capital MarketsTRUE Nestle India LtdIndiaFOA Food ProductsTRUE Hindustan Unilever LtdIndiaHOU Household ProductsTRUE Bharat Heavy Electricals LtdIndiaIEQ Machinery and Electrical EquipmentTRUE Cairn India LtdIndiaOIX Oil & GasTRUE Indian Oil Corp LtdIndiaOIX Oil & GasTRUE Oil & Natural Gas Corp LtdIndiaOIX Oil & GasTRUE Reliance Industries LtdIndiaOIX Oil & GasTRUE Jindal Steel & Power LtdIndiaSTL SteelTRUE Bharti Airtel LtdIndiaTLS Telecommunication ServicesTRUE ITC LtdIndiaTOB TobaccoTRUE Infosys LtdIndiaTSV IT services & Internet Software and ServicesTRUE Tata Consultancy Services LtdIndiaTSV IT services & Internet Software and ServicesTRUE Wipro LtdIndiaTSV IT services & Internet Software and ServicesTRUE 36 Indian Companies Across 17 Industry Sectors 8303 SUSTAINABLE BUSINESS & DEVELOPMENT FMS EMBA SEMESTER-3 SABUT

9. Corporate Sustainability Assessment 8303 SUSTAINABLE BUSINESS & DEVELOPMENT FMS EMBA SEMESTER-3 SABUT Assessment Framework

10. CSA: levels & scores 8303 SUSTAINABLE BUSINESS & DEVELOPMENT FMS EMBA SEMESTER-3 SABUT

11. CSA: questionnaire sample 8303 SUSTAINABLE BUSINESS & DEVELOPMENT FMS EMBA SEMESTER-3 SABUT

12. Identificati on of MSA Case Impact Identificati on of Criteria Affected Evaluatio n of Company Response MSA Scor e MSA Process 8303 SUSTAINABLE BUSINESS & DEVELOPMENT FMS EMBA SEMESTER-3 SABUT

13. MSA Process 8303 SUSTAINABLE BUSINESS & DEVELOPMENT FMS EMBA SEMESTER-3 SABUT

14. Corporate Sustainability Assessment 8303 SUSTAINABLE BUSINESS & DEVELOPMENT FMS EMBA SEMESTER-3 JASBIR Design Committee The DJSI Design Committee consists of two RobecoSAM representatives and two S&P Dow Jones Indices representatives and meets on a monthly basis. The responsibilities of the DJSI Design Committee include the following: Auditing the index composition at the annual and quarterly reviews Deciding on the composition and accuracy of the Dow Jones Sustainability Indices Approving all changes to the index methodology Ongoing review of all extraordinary corporate actions for possible changes to the index composition Verifying the integrity of input price, currency rate and other related market data

15. Assessment Procedure 8303 SUSTAINABLE BUSINESS & DEVELOPMENT FMS EMBA SEMESTER-3 JASBIR  Systematic and Consistent measurement of corporate sustainability performance  Access to corporate information via web-based questionnaire, management meetings and public information  Integrated assessment of economic, environmental and social criteria with focus on long term value creation  Assessment of more than 2000 companies yearly based on broad range of general and industry specific criteria  Assessment complemented by Media and Stakeholder Analysis  Process audited by an independent third party firm

16. Index Overview: World 8303 SUSTAINABLE BUSINESS & DEVELOPMENT FMS EMBA SEMESTER-3 RAVI The Dow Jones Sustainability World Index was launched in 1999 as the first global sustainability benchmark. DJSI tracks the stock performance of the world's leading companies in terms of economic, environmental and social criteria. The indices serve as benchmarks for investors who integrate sustainability considerations into their portfolios, and provide an effective engagement platform for companies who want to adopt sustainable best practices.

17. Index Overview: Emerging Market 8303 SUSTAINABLE BUSINESS & DEVELOPMENT FMS EMBA SEMESTER-3 RAVI *Brazil, Chile, China, Colombia, the Czech Republic, Egypt, Hungary, India, Indonesia, Malaysia, Mexico, Morocco, Peru, the Philippines, Poland, Russia, South Africa, Taiwan, Thailand and Turkey

18. Diversified Overview: World & Emerging Markets 8303 SUSTAINABLE BUSINESS & DEVELOPMENT FMS EMBA SEMESTER-3 RAVI The DJSI Diversified family was launched in May 2013. DJSI offers investors a similar risk profile and comparable financial performance, yet with a significantly higher exposure to sustainability. The companies’ sustainability profiles are analysed using RobecoSAM’s Corporate Sustainability Assessment (CSA) methodology. The Diversified Approach Selects the most sustainable companies from the global or regional S&P BMI universe. The DJSI Diversified is an investment solution for investors who measure performance against a standard benchmark but wish to tilt their portfolios towards sustainable companies without taking on additional active country, company size or sector risks relative to the benchmark. The DJSI Diversified addresses the challenges faced by investors interested in sustainability investing who often discover that implementing a sustainability investing solution may require a substantial shift in their strategic asset allocation.

19. Industry Group Leaders: 2013 8303 SUSTAINABLE BUSINESS & DEVELOPMENT FMS EMBA SEMESTER-3 PANKAJ For 24 Industry groups represented in DJSI

20. Industry Example: Emerging Markets 8303 SUSTAINABLE BUSINESS & DEVELOPMENT FMS EMBA SEMESTER-3 PANKAJ Sustainability Performance: Member of DJSI World, DJSI Emerging Markets. TSMC has been a member of the DJSI World for 13 consecutive years. Over the last 10 years, the company has reduced its electricity consumption per wafer unit by 47% and water consumption by 56%. Since 2012, corporate social responsibility has been a topic on its Board meeting agenda and is regularly factored into the Board’s decision-making process. The company dedicates 8% of its revenue to R&D and employs 27.5% of its workforce in the R&D department. INDUSTRY GROUP LEADER REPORT | 2013 Taiwan Semiconductor Manufacturing Co Ltd SEM Semiconductors & Semiconductor Equipment COMPANY INFORMATION Source: Bloomberg / September 04, 2013

21. Industry Example: Emerging Markets 8303 SUSTAINABLE BUSINESS & DEVELOPMENT FMS EMBA SEMESTER-3 PANKAJ INDUSTRY GROUP LEADER REPORT | 2013 Taiwan Semiconductor Manufacturing Co Ltd SEM Semiconductors & Semiconductor Equipment

22. Industry Example: Emerging Markets 8303 SUSTAINABLE BUSINESS & DEVELOPMENT FMS EMBA SEMESTER-3 PANKAJ INDUSTRY GROUP LEADER REPORT | 2013 Taiwan Semiconductor Manufacturing Co Ltd SEM Semiconductors & Semiconductor Equipment

23. 8303 SUSTAINABLE BUSINESS & DEVELOPMENT FMS EMBA SEMESTER-3 PANKAJ INDUSTRY GROUP LEADER REPORT | 2013 Taiwan Semiconductor Manufacturing Co Ltd SEM Semiconductors & Semiconductor Equipment

24. 8303 SUSTAINABLE BUSINESS & DEVELOPMENT FMS EMBA SEMESTER-3 PANKAJ INDUSTRY GROUP LEADER REPORT | 2013 Taiwan Semiconductor Manufacturing Co Ltd SEM Semiconductors & Semiconductor Equipment

25. 8303 SUSTAINABLE BUSINESS & DEVELOPMENT FMS EMBA SEMESTER-3 PANKAJ INDUSTRY GROUP LEADER REPORT | 2013 Taiwan Semiconductor Manufacturing Co Ltd SEM Semiconductors & Semiconductor Equipment

26. EndNotes GROUP7: BARADA S-16, MARK S-22, JASBIR S-28, PANKAJ S-42, SHOVIT S-64, RAVI S-80 8303 SUSTAINABLE BUSINESS & DEVELOPMENT FMS EMBA SEMESTER-3 1. Business Strategy for Sustainable Development: Leadership and Accountability for the 90s, published in 1992 by the International Institute for Sustainable Development. 2. Corporate Responsibility & Sustainable Economic Development in China: Implications for Business, study conducted by National Chambers Foundation & Asia-Us Chamber of Commerce. 3. Informational data from Dow Jones Sustainability Indices, www.sustainability- indices.com/about-us/dow-jones-sustainability-indexes.jsp 4. Informational data from S&P Dow Jones Indices, www.sustainability-indices.com/about-us/sp- dow-jones.jsp 5. Informational data from RobecoSAM Indices, www.sustainability-indices.com/about-us/sam- indexes.jsp