Infosys Technologies Ltd. — (31-3-2010)
Introduction:
Det Norske Veritas AS (DNV) has been commissioned by the management of Infosys Technologies Limited (Infosys) to carry out an assurance engagement on the Infosys Sustainability Report 2009-10 (the Report). This engagement focussed on qualitative and quantitative information provided in the report, and underlying management and reporting processes. It was carried out in accordance with the DNV protocol for Verification of Sustainability Reporting (VeriSustain).
The intended users of this assurance statement are the readers of the Infosys 2009-2010 Sustainability Report. The Management of Infosys is responsible for all information provided in the Report as well as the processes for collecting, analysing and reporting that information. DNV’s responsibility regarding this verification is to Infosys only, in accordance with the scope of work carried out. DNV disclaims any liability or responsibility to a third party for decisions, whether investment or otherwise, based on this Assurance Statement.
Scope of assurance:
The scope of work agreed upon with Infosys included the verification of the content, focus and quality of the information presented in the report, against the moderate level assurance requirements in VeriSustain, covering the period April 2009 to March 2010. In particular, this assurance engagement included:
- Review of the policies, initiatives and practices described in the Report as well as references made in the Report to the Annual Report and corporate website;
- Review of the Report against Global Reporting Initiative Sustainability Reporting Guidelines Version 3.0 (GRI G3) and confirmation of the Application Level;
- Review of the processes for defining the focus and content of the report;
- Verification of the reliability of information and performance data presented in the Report;
- Visits to the Infosys’ head-office in Bangalore and development centres in Bangalore, Mysore and Chennai, India.
Verification methodology:
This engagement was carried out between August and September 2010 by a multidisciplinary team of qualified and experienced DNV sustainability report assurance professionals. DNV states its independence and impartiality with regards to this engagement. DNV confirms that throughout the reporting period there were no services provided which could impair our independence and objectivity and also maintained complete impartiality towards people interviewed during the assignment.
The Report has been evaluated against the principles of Materiality, Stakeholder Inclusiveness, Completeness, Responsiveness, Reliability and Neutrality, as set out in VeriSustain, and the GRI G3 Application Levels.
During the assurance engagement, DNV has taken a risk-based approach, meaning that we concentrated our verification efforts on the issues of high material relevance to Infosys’ business and stakeholders. As part of the engagement we have challenged the sustainability-related statements and claims made in the Report and assessed the robustness of the underlying data management system, information flow and controls. For example, we have:
- Examined and reviewed documents, data and other information made available to DNV by Infosys;
- Conducted interviews with three members of the board including Chairman of the board and Chief Operating Officer;
- Conducted interviews with 39 representatives of the Company (including members of the Infosys Sustainability Council, data owners and representatives from different divisions and functions);
- Performed sample-based reviews of the mechanisms for implementing the Company’s own sustainability-related policies and stakeholder engagements as described in the Report, and for determining material issues to be included in the Report;
- Performed sample-based audits of the processes for generating, gathering and managing the quantitative and qualitative data included in the Report;
- Reviewed the process of acquiring information and economic-financial data from the 2009-10 certified consolidated balance sheet.
Conclusions:
In our opinion, the Report is an appropriate and reliable representation of the Infosys sustainability- related policies, management systems and performance for the period 2009-10. The Report, along with the referenced information in the Annual Report and on the Company website, meets the general content and quality requirements of the GRI G3, and DNV confirms that the GRI requirements for Application Level ‘A+’ have been met. We have evaluated the Report’s adherence to the following principles on a scale of ‘Good’, ‘Acceptable’ and ‘Needs Improvement’:
Materiality: Acceptable. Infosys has strengthened the materiality determination process with the identified three key focus areas of Social Contract, Resource Efficiency and Green Innovation. But the process needs to be implemented across each division and location with due consideration of short, medium and long-term impacts.
Stakeholder Inclusiveness: Good. The Company has established a process of collating inputs from various stakeholders. A multi-stakeholder based, objective-oriented engagement approach is also evident in the field of adoption of cleaner energy and higher education.
Completeness: Acceptable. The reporting boundary is limited for many parameters (page 9) and does not cover the entirety of Infosys. Infosys shall incrementally improve to aid reporting to reflect the global organisation’s footprint. But within the reporting boundary defined by Infosys, we do not believe that the Report omits relevant information that would influence stakeholder assessments or decisions.
Responsiveness: Acceptable. Infosys has responded to the material issues and to its stakeholders through its policies, management systems and processes. However, this can be improved by expanding the goal setting process to cover more material issues and appropriate performance indicators.
Reliability: Good. No systematic or material errors have been detected for data and information verified. The identified minor discrepancies were corrected. However, there is scope for improving the process to reduce potential for errors.
Neutrality: Acceptable. The information contained in the Report is presented in a balanced manner, in terms of content and tone. Overall the Report is transparent, but can be further improved by more detailed disclosures in the employee sections.
Recommendations:
In addition to the improvement opportunities stated above, DNV recommends that Infosys:
- Identifies sustainability indicators beyond those available in the GRI, drawing from the materiality process and incorporating them with measurable targets in future reports to remain in line with international practices.
- Formalises the functioning of the Sustainability Council and integrates the same to existing and relating governance mechanisms.
