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GLOBAL RESPONSIBILITY BETTER BUSINESS, BETTER WORLD PERFECT BALANCE Corporate Responsibility Report 2009 – 2010

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Page 1: CSC Corporate Responsibility Report 2009 - 2010assets1.csc.com/cr/downloads/0593-11_2010CorpResp_CSC.pdf · while at the same time thinking strategi-cally about how we partner with

GLOBAL RESPONSIBILITY

BETTER BUSINESS, BETTER WORLD

PERFECTBALANCE Corporate Responsibility Report 2009 – 2010

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mike laphen Chairman, President and CEO

A MESSAGE FROM

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The past year was filled with significant accomplishments for CSC. We can attribute a good deal of our continued success as a global IT and business solutions company to our focused commitment to running a profitable, ethical and sustainable business during difficult economic times. Achieving the right balance between business and sustainability requires an ever-present focus on ensuring solid financial results while at the same time thinking strategi-cally about how we partner with and support our clients, treat our employees, engage in our communities and impact our environment.

We moved this year toward expanding our transparency as a business, with respect to our triple bottom line:

• Our financial performance• Our environmental sustainability• Our people and the communities in

which they live and work

In this report, you will see how we are balancing strong business performance with global social and environmental sustainability, through:

• Dedicated employees who have invested time and effort, giving back to their communities

• Company-wide initiatives focused on global environmental and sustainability efforts, including reduction in energy, waste and employee travel; a commit-ment to recycling; and efforts to cut down on power consumption on our desktops, in our server rooms and in our facilities

• Valuable client collaborations that result in innovative offerings addressing criti-cal issues like climate change research, green supply chain optimization and cost-effective compliance programs that meet regulatory standards

• Two SAP Pinnacle Awards in the areas of customer satisfaction and sustainability, exemplifying our efforts to enhance the customer experience and help clients realize the benefits of sustainability

• Independent recognition from the Busi-ness in the Community Index in the UK, CR Magazine and FTSE4Good. These corporate responsibility indices give us external validation of our alignment with the larger business environment, while illustrating our ability to assist our clients in the sustainability of their businesses.

Sustainability is an integral part of our business operations and our financial per-formance, whether through operational efficiency, customer satisfaction, employee well being, ongoing community support or investor confidence. Our efforts are laying the groundwork for future company growth, client loyalty and global sustainability.

Regards,

Mike Laphen

table of contents

progress 2

community 4

employees 9

clients 13

environment 16

governance 25

summary 28

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Our considerable progress this year

progress

Sustainability is the business language of the 21st century and is fundamental to the way we bring IT and business results to our clients. We believe that striking a perfect balance of corporate responsibility and business performance creates the environment needed to uphold the sustainability of our company, our clients and our stakeholders.

Our efforts focus on our employees, on client trust and partner collaboration, environmental sustainability, community engagement and ethical governance. We have made considerable progress this year toward integrating corporate responsibility into our culture and our business:

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• We launched Employee Resource Groups (ERGs) to provide global and regional forums in which employees with similar professional interests and shared perspectives meet on a regular basis to advance best practices, share ideas and form professional and mentoring relationships.

• We enhanced our collaboration with SAP as we began deployment of our Carbon Impact solution, one of our Enterprise Compliance and Sustainability offerings.

• In CSC locations throughout the world, we have substantially reduced our carbon footprint and energy usage and have attained the prestigious ISO 14001 certification at a total of 34 data centers and office locations.

• We surveyed our employees to determine the top five philanthropic community focus areas on which we should concentrate. These are: education, child welfare, the environ-ment, people with disabilities and wounded warriors.

• We completed a comprehensive risk assessment.

• We adopted a written policy on Board diversity.

We received a series of awards and recognitions for our CR efforts this year, including:

NELI Award for Diversity and InclusionThe National Eagle Leadership Institute’s (NELI’s) award is a symbol of corporate leadership achievement and honors stellar leadership in corporate responsi-bility. The NELI Award for Diversity and Inclusion recognizes our significant role in corporate leadership and responsibili-ty, in both business and the world around us. CSC’s winning entry represents our commitment to developing a sustainableculture for our employees, to maintaining

our brand reputation and to building strong partnerships with our clients.

Business in the Community CR IndexBusiness in the Community (BITC) is an international

network of responsible businesses that are committed to a sustainable future for people and the planet. As a BITC member, CSC is dedicated to advancing responsible business practices that benefit society. BITC recognized our corporate responsibility achievements by presenting us with a Bronze performance band. BITC’s index is a management tool to support companies to improve, measure and report their social and envi-ronmental impacts. CSC UK is among the Top 10 improvers in last year’s index.

Best Corporate Citizen/Government Contracting, Corporate Responsibility MagazineWe are proud to be recognized in the Top 10 on CR Magazine’s new ranking of responsible government contractors. The list, based on the methodology of CR Magazine’s 11-year-old 100 Best Corporate Citizens List, is one of the world’s top corporate responsibility rankings.

FORTUNE Magazine’s “World’s Most Admired Companies”Based on an in-depth evaluation of approximately 1,400 companies worldwide, we ranked in the Top 5 among the world’s leading IT service providers in FORTUNE magazine’s list of the “World’s Most Admired Companies.” The award reflects our focus on building a great place to work.

Our high rating in social responsibility demonstrates our progress in developing forward-thinking programs that contribute to a sustainable future for our employees, clients and partners.

We also received a high rating in quality of executive management, which recognizes our culture of integrity and focus on hiring top talent and industry thought leaders.

FTSE4GoodFor the first time, we were invited to be listed on this prestigious index, as one of only two U.S.

companies added. Companies in the FTSE4Good Index Series have met stringent social and environmental criteria, and are positioned to capitalize on the benefits of responsible business practice.

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channeling our passion, changing lives

community

CSC Vietnam Gives BackEmployees in Vietnam

distribute food and supplies

at the Dieu Phap orphanage.

CSC Vietnam also presented

scholarships to 10 students at

the orphanage.

Investing in our local communities for a global impact

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Worldwide, CSC invests in local communities, volunteer-ing our time and our talent. From the United States to the United Kingdom, from Australia to India, we commit resources to local charities and organizations. In doing so, we strike a balance as a business that thrives because of the local community while at the same time giving back to that community.

National Walk for EpilepsyWe had the largest team at the 2010 National Walk for Epilepsy on the Mall in Washington, DC, and raised $4,000 at the event.

Give Blood. Give LifeIn 2009, our “Give Blood. Give Life” blood-drive challenge exceeded our goal of collecting 1,000 pints of blood with an extraordinary donation of 1,755 pints of blood. The employee response to this challenge was so positive that we ex-panded our 2010 “Give Blood. Give Life” program to all CSC locations around the world, with a new goal of collect-ing 10,000 units of blood by December 31, 2010. In 6 months, 26 countries have already donated enough for us to pass our goal’s halfway mark.

Team CSC gathers on the Mall in Washington, DC, at the National Walk for Epilepsy.

Rita Gercenstein participates in CSC’s blood drive challenge in Falls Church, VA.

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Prince’s Trust Superstar AwardThe Prince’s Trust, founded by the

Prince of Wales in 1976, helps disad-

vantaged children and young people

attain confidence and motivation

as they prepare for trade school,

advanced education and the

workplace. As a corporate sponsor

of the Trust, CSC UK leads numerous

initiatives to raise funds for the

charity. In 2009, we raised more

than $233,000.

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Tour de CureThe Tour de Cure in Australia is a yearly charity cycling tour whose

proceeds support various cancer research, family support and education

projects. This year, we ran an integrated campaign promoting our

OmniLocation technology as well as supporting three staff as they

participated in the ride. Fundraising activities included a charity auction

on eBay, online donations supporting our riders and a raffle — together,

resulting in donations of over $50,000.

Cycling for a Cause The CSC Australia team supports several cycling events to raise money for a deserving set of charities, as part of our commitment to staff well-being and the environment.

National Ride to Work DayOur “Ride to Work Day” is a chance for regular and new riders to celebrate the personal joys and environmental benefits of cycling. We estimate that the total CO2 avoided by CSC staff around Australia who participated was 375.5 kg.

Brisbane to the Gold Coast ChallengeCSC’s 26 riders, as well as three of our clients from BHP Billiton, raised $4,450 for the Heart Foundation.

Around the Bay in a DayThe CSC team of 160 riders, including 30 of our clients, raised $30,000 for “The Smith Family.” We were the sec-ond largest team and won the “Top IT Fundraising Team” honor.

MS Sydney to the GongOur 285 riders, including 15 clients, raised nearly $85,000 for the Multiple Sclerosis Society. We won the “Largest Team” honor for the fourth year running.

The Great Bike RideTogether, our employees and clients raised more than $10,000 for The St. John of God Foundation Horizon House Project, the Heart Foundation and Hope for Children.

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Mentoring Next Generation of Cyber Experts in U.S.We protect the networks of some of the world’s major global corporations, so we were honored to provide judges and support staff for teams competing in the Mid-Atlantic Collegiate Cyber Defense Competition (CCDC). The event is beneficial to CSC, our clients and our future employees. An important component of developing cutting-edge, long-term solutions to the evolving cyber threat environment is the development of next-generation cybersecurity experts and curricula. Pitting college students against hackers trying to disrupt and compromise their networks, the competition is unique in its focus on the operational aspects of managing and protecting an existing network infrastructure.

Junior Achievement BowlWe thought that bowling would be a fun way to help Junior Achievement inspire and prepare young people in the U.S. to succeed in a global economy — our five teams generated more than $20,000 for K – 12 literacy education.

Adopting Villages in IndiaTo improve the quality of life at tribal villages in India, our Global Applications Group in India, California and Vietnam has initiated a village adoption program.

Along with providing financial aid, employees visit the villages weekly to help establish schools, provide books and warm clothing and support the vil-lagers in meeting their basic needs. We donate nearly $3,000 annually to fund books, school uniforms and study

materials and support teachers’ salaries for more than 350 students. We have achieved 100% literacy among the children in two of the four villages we have adopted.

Our other efforts include support to tap and bore wells for safe drinking water, establish regular health check-ups and teach women practical skills like sewing and embroidery as well as teaching English to children.

Corporate Mentorship Our Corporate Mentorship Program (CMP) in India supports education and skill development for children from various orphanages and group homes through a series of training programs, presentations, workshops and fun sessions. Every week, they visit CSC facilities to learn in a welcoming family atmosphere.

Save the Children in LithuaniaCSC Baltic employees joined with Save the Children in support of the Pabrade Children’s Home, with one clear goal in mind: ensure that 98 children between ages 5 and 18 develop skills needed for high school and beyond. CSC applied a business approach to identify and design training programs to resolve challenges the children face. Employees have donated items that are sold at a charity auction — and have raised enough money to fund the program for at least one more year.

Fergus Flaherty and Cristina Fernandez Garcia participate in a blood drive in Asturias, Spain.

Throughout the world, CSCers are on a mission to help sustain the communities in which they live.

Udayan Care provides homes for 5,500 needy children in India — the group’s motto is “Empathy, Education and Empowerment.” CSC supports them in New Delhi. Here, CSCers visit with the children after delivering new backpacks to them.

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Growing CSC Volunteer Programs with an Environmental Focus

CharityWorks GreenHouseWe sponsored the CharityWorks GreenHouse, an eco-designer show house that demonstrates how efficient building design and innovative technol-ogy can reduce or eliminate carbon emissions. Many employees in the Washington, DC, area volunteered to work at the house, which showcased a common sense approach to sustainable living using non-toxic paints, natural fibers in carpeting and upholstery, and phosphate-free products for cleaning and reusing items.

UK Helping HandsOur employee volunteer group in the United Kingdom, Helping Hands, works to enhance the world’s environment. Their recent efforts included gardening, renovation and care of national parks. Last summer, more than 40 CSC employees and their families worked with a team from Royal Bank of Scotland (RBS) to provide St. Catherine’s Hospice with a brand new allotment area on their grounds. The volunteers moved tons of topsoil by hand and laid down pathways and walls to give patients wheelchair access to tend the fruits and vegetables.

Employee volunteers have also worked with the West Midlands Police and local council to renovate a very run-down scout hut in Solihull. Not only did the hut get a much-needed lick of paint, but our CSC team also managed to secure in-kind and monetary donations for items like flooring, carpet, kitchen linoleum and plasterboard.

In the fall of 2009, employee volunteers worked in collaboration with Natural England to clear 2.5 acres of land at the Thursley National Nature Reserve. The site is of national importance for its rare bird, reptile and invertebrate populations. CSC’s work restored a

large part of the land to natural condi-tions, optimizing the environmental equilibrium in this area of outstanding beauty.

In April 2010, CSC staff and their families joined forces to plant more than 400 plants for the Fairplay charity’s new center in Chesterfield; another team of CSC employees volunteered to help spruce up the large gardens and create an enjoyable space for children at Clockhouse, a re-spite unit in Keighley, West Yorkshire.

A positive difference: “Helping Hands” in the UK enhances the environment in the world around us.

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supporting our people, accelerating our performance

employees

We are CSC: 95,000 strong

Our company thrives because

our employees cultivate

relationships and commit

significant time and energy to

our clients and the business.

Through education and

mentorship, diversity and

wellness, we continue to

prioritize the growth and

development of each of our

95,000 employees.

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Supporting Employee DiversityThis year we launched our Employee Resource Group (ERG) Program to provide global and regional forums where employees with similar profes-sional interests and shared perspec-tives meet to advance best practices, share ideas and form professional and mentoring relationships.

Women in Leadership is dedicated to attracting, retaining and motivating women with deep industry experience and broad perspective, to support our increasingly global and diverse client base.

Hispanic Network promotes cultural awareness and leverages networking opportunities for Hispanic community outreach. Members are encouraged to volunteer and take advantage of cultural experiences within their respective communities.

Gays, Lesbians and Everyone Else promotes awareness around lesbian, gay, bisexual and transgender (LGBT) issues, provides a forum for employees to network, and engages in outreach activities to promote CSC as an LGBT-friendly organization.

Black Employee Network provides a forum to exchange ideas, network and create a collaborative environment for internal and external stakeholders. Goals include promoting cultural diversity, professional development and personal and professional growth through leadership and education, while leveraging opportunities for community outreach.

Strengthening Our Cultural Awareness for Business ImpactForming and sustaining effective business relationships requires more than a cursory knowledge of a country’s culture, ethics and working practices. Whether our employees are moving overseas, working on a virtual/global team, or doing business across borders, to be highly effective in today’s international business arena they need a deeper cross-cultural understanding. We offer them a cultural effectiveness toolkit that gives valuable insight on how to successfully interact with people from different cultures.

Using Virtual Worlds to Engage EmployeesIn order to continually attract and keep the brightest talent, we are using Second Life technology, creating a “CSC Island” as an interactive social media platform that communicates the CSC story as it links regional/local information with enterprise content.

We used the virtual world to celebrate CSC’s 50th anniversary, and continue to evaluate how it can expand employ-ees’ knowledge of our company and its history so they may perform better in their roles.

Educating Our LeadersTo ensure that our senior management — and our leaders of tomorrow — are well versed in corporate responsibility and its broad, positive impacts on our business, we regularly brief them on various aspects of the CR program. As part of our CR governance, senior leaders from all facets of our business volunteer on our CR Board.

Our Women in Leadership group sponsored a “follow-the-sun” International Women’s Day photo event. The most original photo was from our proud women in Austin, TX (“We Can Do It!”)

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Educational AssistanceCSC’s Educational Assistance Program is one of several ways that full-time employees can gain additional skills and knowledge to enhance job perfor-mance. Through one of the industry’s most generous employer-provided tuition assistance programs, CSC employees may apply for reimbursement for course work in pursuit of a degree at an accredited institution, as well as for certification examinations or professional designations.

Learn at Work DayWe encourage workforce learning in support of our growth initiatives, through an investment in learning programs, technologies and activities for all of our employees. CSC’s Learn at Work Day is an annual event that promotes workplace learning and showcases our formal and informal opportunities that are accessible to every employee. Employees from across the globe partake of this educational spotlight of information, skills training, and networking that can help them to reach their development and career goals. Some of the activities that spanned all regions included:

• The Global Chief Learning Officer (CLO) webinar showcased new trends to help employees sharpen their skills, improve performance or prepare for certifications

• Virgin Racing, a key CSC client and new partner, provided a Formula 1 car racing simulator for the day.

• A just-in-time, peer-to-peer coaching session exercise provided recommended tools and instruc-tions on how to give or receive ‘Feed Forward’ coaching

• Regionally sponsored events included workshops, learning exhibits, virtual book clubs, games and webinars

• Social collaboration Web sites and regional CLO blogs shared personal viewpoints on what employees can do to grow their career

The event offered our employees the toolsets, knowledge and opportuni-ties to make new connections and start networking.

We received significant recognition this year for our diversity in action and for our stellar educational learning programs.

Annual Corporate University (CorpU) Xchange Awards for Excellence and Innovation in Corporate LearningWe were recognized for our employee learning and development with two awards at the 11th Annual Corporate University (CorpU) Xchange Awards for Excellence and Innovation in Corporate Learning. The CorpU Awards salute corporate and government learning organizations that create “exciting, impactful programs that result in measurable improvements in employee and business performance.” This is the third consecutive year that CSC has been recognized by CorpU with an Xchange award.

BEST Award from the American Society for Training & Development (ASTD)For a fourth time, ASTD presented our Enterprise Learning and Talent Development (ELTD) group with a BEST Award for creating innovative

employee talent and development pro-grams that had an impact on organizational culture, brand and leadership.

Our global chief learning officer, divisional chief learning officers and other learning professionals accept the Corporate University Xchange Award, presented to CSC.

CSC India employees participate in Learn at Work Day.

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Woman Engineer Magazine: America’s Top 50 EmployersWoman Engineer magazine recog-nized CSC as one of America’s Top 50 Employers for women engineers. The 19th annual list recognizes corporations based on feedback from their readers. Top companies in both the public and private sectors were selected based upon which company readers would most like to work for, or which company readers believe would provide a posi-tive working environment for women. Top 100 Military-Friendly Employers: G.I. Jobs MagazineG.I. Jobs magazine ranked CSC as being among America’s Top 100 Military-Friendly Employers, based on our strength of military recruiting efforts, percentage of new hires with prior military service, and company policies toward National Guard and Reserve service. We have also been named a Top 10 Military Spouse-Friendly Employer, for a third consecutive year, by Military Spouse magazine.

Pro-Patria Award from ESGRCSC received the Pro-Patria Award from Employer Support of the Guard and Reserve (ESGR), a U.S. Department of Defense agency that gains and maintains active support from public and private employers for the men and women of the National Guard and Reserve. We were selected for the award because of our exceptional contribution to national defense through leadership practices and personnel policies that support employees who serve in the National Guard and Reserve.

Top 50 Employers for Persons with DisabilitiesWe have been recognized by CAREERS & the disABLED magazine as one of America’s Top 50 Employers for Persons with Disabilities. The annual list recognizes corporations for their commitment to employees with disabilities. Companies were nominated

by the magazine’s readers as the place they would most like to work for or that they believe would provide a progressive environment for people with disabilities.

Distinguished Leaders Award from Epilepsy FoundationSelected for this award based on our commitment to employing people with disabilities, we were honored for our leadership example, to the public and private sectors, in demonstrating how employing members of the disability community is an outstanding business practice and not an act of charity.

Top Employer Status in BelgiumFor the second consecutive year, CSC has received the Top Employers label from CRF in association with the Belgian HR magazine Jobat and the Hay Group.

Using independent research, CRF assesses which companies stand out from the rest, based on five criteria that affect employees’ choice of career: employment conditions, education and training, internal promotion opportunities, working environment and company culture. The companies scoring highest in the areas of educa-tion and training, working environment and career development opportunities are awarded the Top Employers quality label.

CSC employees are honored for their achievements at the Women of Color Conference.

Many veterans around the world

work for CSC. Within the U.S., over

9,600 veterans are currently

employed by CSC, representing over

20% of the U.S. veterans workforce.

Employees who are called to active

duty in support of national security

are often absent for long periods in

order to fulfill their military service

obligations. During their absence,

these employees are provided with

additional benefits that exceed the

federal requirements, including

salary pay differentials and extended

options for healthcare coverage,

retirement savings and other

company benefits.

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SAP Pinnacle AwardsWe were awarded two 2010 SAP

Pinnacle Awards in the areas of

customer satisfaction and sustain-

ability. SAP Pinnacle Awards are

granted to leading SAP partners

that have excelled in enhancing the

customer experience, addressing

critical issues such as accelerating

co-innovation and improving return

on investment.

CSC continues to work with

industry leaders like SAP to help

clients realize the benefits of sus-

tainability, and we’re proud to take

home a 2010 Pinnacle Award in the

category Sustainability Partner of

the Year for our efforts and expertise

in such a crucial part of our business.

Partnerships that count, results that matter

clients 13

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Our business thrives through the partnerships we maintain with the deep trust of our clients.

To that end, we surveyed our global account leaders to find out how sustainability and CR fit into our business objectives and the goals of our clients. The results show that environmental sustainability remains a key concern for our clients and a key area for innovation at CSC.

Here are a few examples of our client and partner collaboration this year:

BAE Systems Military Air Solutions: Recycling, Reuse Minimize Environmental ImpactCSC collaborated with BAE Systems and its equipment provider to develop and implement a new approach for

recycling and reuse. By applying end-of- life analysis to refurbish and extend the life of IT equipment and reviewing BAE Systems’ existing IT disposal process, we were able to first focus on driving efficiencies where significant waste was generated, and then pinpoint areas where recycling and reuse could be applied and packaging eliminated. This resulted in 100% reuse or recycling of IT packaging, meeting European Community directive regulations and eliminating BAE Systems’ disposal costs.

U.S. Federal Agencies: Innovations to Address Climate ChangeWe are developing offerings that support climate change research, prevention and adaptation, such as:

• Providing high-performance computing services to the U.S. National Aeronautics and Space Agency (NASA) and the National Oceanic and Atmospheric Admin-istration (NOAA) to better enable scientists to study climate change

• Helping the U.S. Environmental Protection Agency (EPA) study the impact of climate change on water supplies in the United States

• Reducing carbon emissions and improving gas mileage efficiency with a state-of-the-art Intelligent Transportation System in the State of Maryland

Turning a Recycling Program into a New Customer OfferingIt’s widely reported that the majority

of people worldwide keep their old

mobile phones, even if they don’t

use them. French telecommunica-

tions company Orange recognized

this inefficiency as a huge

opportunity. With CSC, it set out to

transform its process for collecting

old phones into a revenue-

generating, environmentally friendly

proposition. The Eco Orange

program is providing a second life

to mobile handsets, while also

helping to improve customer loyalty,

increase purchasing power, provide

eco-friendly benefits to the planet,

and enable developing countries to

obtain inexpensive mobile phones.

The customers benefit by either pay-

ing less for a mobile replacement or

by upgrading their mobile device to a

superior model.

The Eco Orange concept is to collect

old mobile phones and laptops from

users, whether Orange customers or

not. If the item is in poor condition,

Orange recycles it. If it is in good

condition, Orange issues a credit

voucher that customers can use in

Orange shops toward the purchase of

a new mobile phone or any other item

in the shop. The recycled phone is sold

for parts or, if in good condition,

refurbished and resold. Money from

parts sold goes to charities. Refur-

bished phones are sold to developing

countries through brokers.

Eco Orange combines economic

efficiency, social equity and environ-

mental protection in a sustainable

business model. The solution can be

Team members Sébastien Marie, Jean-Vincent Cazaux, Maryna Fedrigo and Olivier Douville were awarded a 2010 Chairman’s Award for Excellence for creating Eco Orange.

applied in any country with minimal

modifications; it can be extended to other

telcos, the retail sector and organizations

that have products that can be recycled.

Orange actively encourages people to

recycle by selling second-hand mobile

phones — a new market that can be

extended to other mobile devices.

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CSC–SAP Partnership: Helping Clients Improve Sustainable PerformanceCSC and SAP have collaborated to develop, test and implement the SAP BusinessObjects Sustainability Performance Management application. This application simplifies the process of tracking and communicating sustain-ability performance, setting goals and objectives, managing risks and monitoring activities — empowering our clients with the means to more strategically define and manage their sustainability and carbon accounting goals.

Green Supply Chain PartnershipWe have developed a Green Supply Chain optimization solution that defines supply efficiencies and innovations that will at once reduce operational costs while factoring in all implications to the environment.

Our solution helps clients optimize their green supply chain to minimize energy use and carbon emissions. This includes strategies around lowering carbon products, using efficient transportation modes and greening their facilities for a comprehensive environmental sustainability program.

Server Virtualization: Green Data Centers Reduce Energy Usage, Drive SavingsAs our clients look to leaner and greener IT operations, CSC virtualiza-tion technologies are helping them do more with less. Nearly half of a company’s standard IT budget is spent on energy, much of it used to power data centers. Between 30% and 50% of the power used in a data center is spent on cooling.

In server virtualization, a single physical server is divided into multiple virtual servers, enabling a variety of operating environments and applications to run on a single device rather than multiple ones.

In one example, we helped a client move its applications from 47 stand-alone Unix servers to four virtualized machines — dramatically reducing the amount of floor space needed to house, power and cool its equipment. This not only reduced our client’s carbon footprint, but also helped the company save $100,000 a year in unneeded floor-space costs.

CSC and DuPont Advance Cost-Effective Compliance, SustainabilityFor a global leader such as DuPont, not only is sustainability a top priority, but being a pacesetter in regulatory compliance is essential to differentiat-ing the brand and staying competitive. DuPont selected CSC as its REACH (Registration, Evaluation, Authorization and Restriction of Chemicals) solution partner, leveraging our SAP expertise to develop a regulatory compliance technology platform. Our role was integral to helping DuPont develop repeatable business processes for implementing essential compliance programs, to meet regulatory standards across multiple geographies.

We are also partnering with DuPont to build an industry-first enterprise compliance and sustainability unified framework using common business processes, a common reference architecture and data model. We have extended this capability to greenhouse gas and carbon management.

Partnering with our clients, our alliance partners and our suppliers for a more sustainable world Six Sigma Lean

Methodologies Drive EfficiencySix Sigma and Lean are rigorous

process-improvement methodologies

that cut costs by rooting out ineffi-

ciencies and imperfections. The result:

improved quality, profitability and

customer satisfaction.

With its emphasis on reducing waste,

Lean is an excellent complement to

Six Sigma. To help clients integrate

and implement both methodologies,

CSC has developed a robust Lean/

Six Sigma Program that trains,

develops and deploys certified experts

across the globe — skill levels are

designated as Green Belt, Black Belt

and Six Sigma Champion.

CSC’s vice president of Quality and Six Sigma, Rob Bryant, greets Space Shuttle astronaut Ken Cockell.

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environment

Investing in a sustainable environment for our future

light footstep, deep impact

Protecting our forests by conserving paperWe recognize that our forests are a

critical and dwindling resource, and

we are proud to report that our

paper consumption has declined

significantly in the past year. Global

paper consumption on network

printers in 2009 was over 20 million

sheets of paper. Through employee

awareness and education, changes

to our printing fleet, implementing

double-sided printing as a default,

and other initiatives, our paper con-

sumption has decreased by 34%. CSC

spared nearly 840 trees* in a single

year through simple printing changes.

CSC Denmark relocated 500 staff

members to an open-office

environment with strict limitations on

personal storage space, to minimize

paper-based archives. The results

were spectacular: The A4 paper

purchase went down by 27.6% from

FY09 to FY10, for a total reduction

over 2 years of 40.3%.

* According to “conserveatree.com,” it takes one mature tree to generate 8,333.3 pages of white paper.

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environment

Investing in a sustainable environment for our future

This was a year of progress and change in CSC’s environ-mental sustainability efforts.

We made great strides in implementing internal solutions that reduce the effects of our IT infrastructure on our carbon footprint. From the imple-mentation of NightWatchman on our desktops to our CTO’s green printing challenge, we continue to work together to positively affect CSC’s environmental sustainability. We enable our clients to leverage sustainable practices and open up new revenue streams that have a positive impact not only on the environment, but also on the bottom line.

We continue to strengthen our partnerships with key clients and alliance partners. As noted in the Clients section of this report, we are strengthening our CR program over-laps between environmental and client sustainability, and our partnership with SAP and their sustainability solutions continue to grow to the benefit of both our company and clients.

Awards and RecognitionNorthern Virginia Technology Council’s Green AwardCSC won the 2009 Northern Virginia Technology Council (NVTC) Green Award. This award honors area tech-nology companies, universities and organizations making an impact through their work toward carbon footprint abatement, job creation in the region, energy efficiencies and renewable power use, among other criteria. This directly correlates to the environmental commitment of CSC’s Corporate Responsibility program. We are proud of our commitment to the U.S. National Capital Area, where our headquarters are located.

CSC Ranked #3 Green Outsourcer in the World, 2009The 2009 Black Book of Outsourcing lists CSC as the third best green outsourcing vendor. This annual report reviews a company’s environmental protection, social improvements and economic growth, plus third- party standards.

Global Green 100 Honoree by the Uptime InstituteCSC was selected as a 2009 Global Green 100 honoree by the Uptime Institute.

The distinction celebrates those companies taking a visible and effective leadership position in the greening of their enterprise computing. The award recognizes CSC for out-standing commitment to energy efficiency for the betterment of our own business performance.

ReduceCTO Green Printing ChallengeOur corporate CTO challenged all CSC employees to reduce our CSC printing environment in a corporate-wide challenge. The vast majority of CSC sites participated, demonstrating just how much can be accomplished simply by asking. In 10 weeks, teams removed 893 printing devices — saving energy, support and consumables. Over 1,100 shared network printers’ default settings were changed to print double-sided, helping to reduce our paper consumption. Categories of awards for reduction in paper use were based on facility size, and the winners were chosen based on the largest relative improvement. One of our winning sites reduced printing infrastructure by 76%. A total of $10,000 was donated to the winners’ charities of choice.

Achieving Balance by Getting Back to BasicsAs a large global company with a

presence in over 80 countries, it is

often difficult for CSC to balance an

approach for the business across

many varied cultures. When discuss-

ing our environmental footprint and

principles, the theme that resonates

throughout the world is the basics of

the three environmental R’s: Reduce,

Reuse and Recycle. We decided to

add three of our own: Report,

Rethink and Re-educate. These are

key to the underlying energy that

has us benchmarking our progress,

looking for more ways to be efficient

and ensuring that our people have

the resources required to fuel this

culture change at CSC. Here are

some of the ways we have focused on

these six principles this year.

Jim Sheaffer, president of North American Public Sector, accepts the Northern Virginia Technology Council’s Green Award.

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Using Green IT to Help Reduce Our Energy Consumption and Environmental FootprintThis year we completed our installation of 1E’s NightWatchman‰ tool on our desktop and laptop computers. Using this tool, we discovered some shocking statistics on our desktop infrastructure:

• 63% of desktops, 32% of laptops and 47% of monitors were left on overnight.

• 53% of desktops, 28% of laptops and 39% of monitors were left on over the weekend, but only 12% of PCs were actually used during the weekend.

• 94% of desktops and 76% of laptops did not have a sleep timeout setting.

Through the implementation of power management and a shut-down sched-ule automated by the tool, we were able to reduce power consumption by 40%, saving tens of thousands of dollars per month.

With the success we experienced with the desktop power management tool, we are now working with 1E to develop an online blog version case study on its NightWatchman Server, a new server power management tool.

Other CSC green IT initiatives include high-definition videoconferencing installed at key sites globally. Replacing physical travel with virtual face-to-face meetings has saved approximately $775,000 over the past year. Instituting company-wide travel reduction policies means fewer carbon emissions. We estimate that we avoided 750 flights, preventing between 800 and 1,000 metric tons of CO2 emissions by use of these conferencing tools.

Our desktop and server virtualization programs are another way we have been able to save energy and reduce carbon emissions while refreshing our aging desktop and server equipment. We’ve saved over $1.75 million over 2 years without even taking energy savings into consideration.

ReuseA great way to reduce our environmen-tal footprint is to reuse and prolong our assets and consumables that we no longer use. One of the best ways we found to do this is to donate equip-ment to other organizations, often in developing countries.

Laptops were donated by CSC Australia to the Sabina School, a school and home for vulnerable children and orphans in rural southern Uganda.

Through the efforts of some ambitious employees, we collaborated with CSC’s e-waste contractor to donate laptops, PCs and software to the Sean Devereux Children’s Fund in Tanzania, which provides aid to African children in need.

Greener Data CentersCSC has invested heavily in our data center infrastructure to increase its capacity (in excess of $81 million in the UK to date, and $60 million planned globally this year), enabling energy efficiencies for our services to our clients. As of April 2010, CSC achieved an impressive PUE (power usage ef-fectiveness) score of 1.83 — averaged across all our data centers globally.

These improvements include:

• Maximization of state-of-the-art technology in our data centers (this includes using high-density cube solutions and other innovative technologies)

• Implementation of server virtualization

• Innovation in energy-efficient computer room design

• PIR-activated energy-efficient lighting in dark-room computer suites

• Efficient computer room design concepts (hot/cold aisle, cabling standards)

Reusing Our Buildings, with Certified ResultsCSC has now attained the prestigious ISO 14001 certification in a total of 34 data

centers and office locations around the world — with more to come soon. Our ISO

green certifications demonstrate our commitment to establishing rigorous processes

and procedures to monitor and control our emissions, energy consumption and waste

streams — and minimize our impact on the environment. The ISO 14001 certification,

an internationally recognized standard for environmental management, measurement,

evaluation and auditing, helps companies control the environmental impact of

their activities by establishing an environmental policy in accordance with

international standards.

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19

• Energy reduction programs

• Exploitation of power-saving features of IT equipment

• Energy audits in our data centers

• Data center managers trained in carbon management awareness

• CSC UK, Australia and Denmark data centers (10 in total) achieving compliance with the ISO 14001 environment standard

By obtaining a certified energy audit of our Pyrmont Data Center, CSC Austra-lia was able to benchmark data center efficiency performance. This external, independent review concluded that the data center performed at an average PUE of 1.62, an industry best practice for a data center of its kind.

RecycleFrom an environmental perspective, very different outcomes are possible depending on how waste is treated. By viewing products that are unusable in their current state as potential inputs into new systems and processes, we can reduce our landfill usage. At CSC facilities all over the world, we’ve been working hard to expand and improve our office recycling efforts.

Increasing Office RecyclingIn CSC’s Alexandria, VA, office, dedicated staff, troubled by a lack of recycling in the building, began taking recyclable materials home with them for disposal. Motivated to do more, these employees arranged to have a recycling company collect the recycla-bles onsite. In the first quarter and only 1 month into their recycling initiative, the group recycled 10,299 kilograms of disposable items, reducing landfill requirements by 34 cubic yards.

CSC Australia removed three refuse bins from each bay of four worksta-tions. The objective of this project was to reduce the number of plastic bin liners sent to landfill as well as encour-age staff to consider what they were recycling and disposing of as generalwaste. For our Macquarie Park office alone, we reduced the number of bin liners used by 68,640 over the first 12 months, saving approximately $2,500.

CSC in the UK has a real handle on waste management. With the efforts of staff and waste management contractors, they have reduced their landfill waste by over 100 metric tons and increased their recycling rate to 47%, easily exceeding the UK govern-ment’s challenging targets. Much of this is due to the hard work and efforts of the Waste Action Group, an employee group that meets regularly to review options for reducing waste and recycling.

Electronic Waste RecyclingElectronic waste, or e-waste, refers to the monitors, desktops, laptops, servers and printers leaving our offices and client sites when no longer in use. We take responsibility for CSC-ownede-waste through either environmentally and socially responsible disposal and recycling, or by donating to those in need in developing countries. We have zero tolerance for improper disposal of potentially harmful elements and the recycling of IT equipment in non-regu-lated facilities in developing countries.

We have various contracts and agreements with e-waste service providers around the world. This year in Australia we signed a contract with a new e-waste provider covering all downstream processes, including recy-cling, refurbishment and remarketing of our IT equipment. Our equipment is now dismantled and recycled within a closed-loop system, using best-in-class facilities around the world. We are confident that these activities meet or exceed all national and international environmental and labor legislation.

CTO John A. Glowacki Jr. is the first to surrender his personal printer, leading the way by example after challenging all employees to reduce CSC’s printing environment.

Recycling containers at a CSC office in Spain

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Earth Hour: Flipping a Switch to Save EnergyCSC participated in Earth Hour

2009, which involved 4,100 cities in

87 countries on seven continents.

On March 28, 2009, CSC facilities,

where practical, began powering

down office and data center lighting

and signage. Individual employees

were also being encouraged to

participate in Earth Hour in their

own homes by turning off lights

and electronics and unplugging

from the digital world.

ReportAs our programs mature, we are in a better position to report on our environmental impacts and carbon footprint. For the first time this year, we have met a submission to the Carbon Disclosure Project (CDP). Next year’s submission will include carbon data metrics for a more comprehen-sive list of sites, with more globalized reduction targets.

CSC UK’s Carbon Management Program started in January 2008 with carbon emissions baselined March ’07 – ’08 and reported as 70,457 metric tons. As a result of improved analysis of car mileage, the 2008 baseline has been corrected to 75,432 metric tons.

For 2009, our newly trained carbon champions, our facilities managers, were able to reduce energy in offices by 24% — a great achievement. Local targets have been set and are regularly monitored.

Due to business growth at the UK data centers, energy use at these locations increased by 6%. We therefore have a net increase of 4,233 carbon metric tons for the year ending March 2009. A number of initiatives are in place to offset this increase.

In Australia, the total quantity of CO2 emissions from our office energy consumption was 14,151 metric tons in 2009; a fall of 8% when compared to 2008 and 14% compared to 2007. A number of projects took place in 2009 that reduced our energy usage and CO2 emissions, including:

• Replacement of dichroic lights with more efficient LEDs in certain areas of our Macquarie Park office, saving over 30 metric tons of CO2 emissions annually

• 17% reduction in floor space by moving from our Braddon office to our Turner office in Canberra

• Implementation of travel restrictions and high-definition videoconferenc-ing, reducing CO2 emissions from airline flights by 29%, based on 2007 levels

Overall, our total CO2 emissions from office energy consumption and flights have fallen by 16%, based on 2007 levels, taking us one step closer to achieving our target of a 25% reduction by the end of 2010.

RethinkEver look at the world while standing on your head? It is a great way to see the world from a new perspective for a fresh look at a problem. This is why we have made one of our environmental approaches “Rethink.” Rethinking allows us to take a whole new approach based on changing criteria — in this case, environmental and efficiency criteria — which often gives a very different result.

Greener BuildingsAs our leases are renewed, or our owned buildings require renovation, we consider best practices in energy and resource efficiency.

Our new building in Sofia, Bulgaria, is featured as one of our greenest, with half the roof covered in shrubs, grass and trees to absorb rain; there is a rainwater collector to use for plants at nearby sites. It features a solar energy collector and high-efficiency glass that helps shield the internal temperature against external climate conditions. It also has central hot water heating underground to provide for the entire city, and the pipes are insulated to maintain the temperature of the water as it travels throughout the facility.

Total CO2 emissions measured from office energy consumption and travel, in metric tons

From CSC Australia

19,50019,00018,50018,00017,50017,00016,50016,00015,50015,00014,500

2007 2008 2009

CSC’s new green building in Sofia, Bulgaria

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In Copenhagen, Denmark, our Valby site had a major refurbishment, with many energy-saving initiatives incorpo-rated into the new design. These include the use of low-energy light bulbs, natural light sensors that dim office lights when external sunlight levels are high, use of LED lamps, and auto sensors in toilets and office areas to reduce water consumption.

Rethinking Client Offerings and Business OpportunitiesAs a global business solutions integra-tor, CSC is uniquely positioned to help our clients measure and report their carbon footprints, create a strategy to process the data, create an action plan and implement many reduction activities through green IT and other energy-savings initiatives.

Through our deep understanding and awareness of the opportunities and impacts from adaptation and mitiga-tion of climate change effects, we’ve centralized our resources and efforts to support our customers’ needs in this

emerging market. As a company, we continue to funnel best practices be-tween commercial and public sectors, inserting CSC into the growing debate around what policy is right for business, and showing our thought leadership on technology’s role in climate change. We are now developing offerings that support climate change research, pre-vention and adaptation, particularly in three major areas: high-performance computing (HPC), water security and intelligent transportation.

We also provide the technology need-ed to collect and manage the huge quantities of data required to perform government-wide and agency-specific climate initiatives, including:

• HPC

• Large-scale data management and application

• Risk management through data analysis and modeling

• Integrated environmental, energy and economic performance management

PROCESSED UNITSUNIT REUSED RECYCLEDCPUs 15,181 8,423CRTs 4,103 15,034LCDs 944 1,062Notebooks 7,483 2,398Phones 543 1,403Other (in lbs) 238,813 658,444

EQUIVALENCY CALCULATIONS METRIC EQUIVALENCY Energy savings = Electricity to power 6,262 U.S. households in a year Greenhouse gas reduction = Removing 4,425 cars from the road per year Solid waste reduction = Solid waste generated by 394 U.S. households in a year Primary material savings = Weight of 5,893 refrigerators Hazardous waste reduction = Weight of 145,806 bricks Toxic material reduction = Weight of 940 bricks Air emissions = 293,330 metric tons of air emissions Water emissions = 614 metric tons of water emissions

CSC North American facilities: impact that recycling our e-waste could have on the environment

LANDFILL IMPACT 2,448,374 lbs or 1,224 metric tons (total e-waste removed from the solid waste stream)

Approximate equivalencies, based in part on Electronics Environmental Benefits Calculator v1.1. The Center for Clean Products & Clean Technologies, University of Tennessee. These are not actual measurements but approximate amounts based on typical composition of equipment.

CSC’s HPC contract with NOAA will support improved climate modeling. Photos courtesy of NOAA

CSC supports the NOAA Weather Wire Service that updates civilians on weather. Our HPC will support better hurricane forecasting, thereby protecting lives and property. This photo was taken from inside the eye of Hurricane Katrina.

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One exciting example of the work we are doing: We are helping the U.S. Environmental Protection Agency (EPA) to develop climate change decision support tools and technical workshops to help the water sector identify and respond to threats to water supply and quality. The tools will assist the agency both in responding to natural disasters and with long-term strategic water planning.

Re-EducateOur culture shift to a more environmentally conscious, socially responsible company comes from the individual actions of our employees and stakeholders. This new balance we are seeking as an enterprise encompasses an under-standing of the responsibilities and opportunities of being more green. To achieve this, we conducted several local, regional and global employee education, awareness and action initiatives throughout the year on a variety of sustainability topics, from solar hot water systems to gardening and water recycling.

Our employees have been proactive in this area, taking part in training ses-sions and suggesting things like the use of mugs rather than paper cups, having battery recycle boxes onsite and more. Many sites have passionate volunteer groups, like the Green Champions of Australia, formed to engage employees in local green initiatives. Employees regularly read and contribute ideas through our internal social networking tool, where green discussions, debates and how-to’s are regularly discussed.

In the UK, photographs of recyclable items were displayed to help staff iden-tify what they could put in the recycle bins, increasing the recycling rate onsite from 47% to 54%.

Our corporate thought leadership magazine, CSC World, features a Green Corner section that addresses our global issues and solutions as they pertain to our clients’ business. The CSC UK magazine, Spotlight, regularly features environmental management tips, raising awareness and promoting the recycling policy. Environmental newsletters invariably include a section on waste and recycling.

Change2 Online Sustainability TrainingIn Australia, the eLearning company Change2 was engaged to develop a range of online modules in three areas of sustainability to assist employees in understanding how environmental changes in our offices, our supply chain and carbon legislation impact the company. Employees used the tools to learn how effective their decisions were at reducing environ-mental impacts. This helped embed triple bottom-line thinking (people, profit and planet). Staff competed with colleagues in an interactive training session to see who could most reduce their office environmental impact while not exceeding their budget.

On Earth Day 2010, CSC conducted a series of virtual educational awareness programs. Videos and white papers on specific environmental subjects were made available to all employ-ees, enabling everyone to engage in provocative online discussions on how we, individually, and our company can reduce our impact on the environment.

Earth Day 2010 was celebrated through educational awareness programs and hands-on activities, during which CSC employees and families planted trees to help beautify headquarters and office locations around the world.

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23

Global footprint, regional footstepsSpainIn Spain, we have recognized environ-mental stewardship. In the last year, we celebrated Earth Day by sending staff messages about changing habits, saving energy and uniting at work and with their families in a global celebration. We launched an office recycling campaign in Barcelona, Madrid and Asturias. To support this effort, recycling containers were provided and 50 PCs no longer suitable for office requirements were donated to local charities. World Water Day was celebrated by raising awareness through a series of informative communications and company-level discussions about the social and environmental impacts of wasting water. We also studied energy bill details to determine how to save energy going forward.

On World Environment Day in June we invited the director of a regional waste company to give an educational talk at CSC offices.

United Kingdom (UK)In this last year, our environmental sustainability strategy in the UK has been reviewed and realigned with our business. We have set a new 5-year strategy for success.

With regard to waste management, we achieved our 45% recycling target rate across the UK. We sent 669 metric tons of waste to landfill in 2008. Last year we reduced this to 516 metric tons. We are very pleased with the overall waste-to-landfill reduction and with the annual increase in our recycling rates, from 24% in 2007 to 47%+ in 2009.

We have also:

• Set up a Waste Action Group internally and agreed on annual objectives and targets; we hold meetings regularly

• Removed individual bins from under office desks and installed central waste recycling bins, for mixed dry recyclables and food waste

• Communicated these waste targets and achievements to staff at sites and suggested how they can help

• Identified sites where there is a nearby materials recycling facility that can take a broader range of dry recyclable materials

Australia In Australia, we joined the NSW State Department of Environment, Climate Change and Water’s (DECCW’s) program, Sustainability Advantage. As part of this program, a diagnos-tic was performed to identify our strengths and weaknesses in the area of sustainability. As a result, we chose to undertake modules on Sustainable Supply Chain and Resource Efficiency, working closely with external consultants who provided us with a sustainability road map and the necessary tools for environmental action.

To celebrate World Environment Day, our Green Champions in Australia invited speakers to their sites to talk on a range of topics, from solar hot water systems to sustainable management and rehabilitation of natural areas. They also held a photogra-phy competition for staff at our Macquarie Park office, with 97 entries received.

“Giraffe with the best view” by Maria Sim was a contest finalist.

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To date, our key achievements driven through this program are:

• A sustainable supply chain policy

• A questionnaire designed to audit our key suppliers, and enable our business to consider social, ethical and environmental factors, in addition to quality and price

• Training of key staff in sustainable supply chain practices, to ensure ef-fective implementation of our policy

• Creation of a Resource Efficiency Team for our Macquarie Park office. The initiatives implemented to date by the team will decrease around 10 metric tons of CO2 annually.

These initiatives include:

• Removal of bulbs and ballasts from vending machines

• Bringing computer room temperatures closer to industry-recommended temperatures

Some of the initiatives planned for FY11 through the Sustainability Advan-tage program:

• Commence the Vision, Commitment and Planning module to engage and involve our learning and training teams in development of a sustainable vision and strategy for CSC Australia

• Explore options for procuring sustainable CSC merchandise

• Pilot new printing software at our Melbourne Docklands site to reduce paper and ink consumption. This is expected to create a paper reduction of 15%

• Work with our Macquarie Park landlord to implement base build-ing energy-saving initiatives such as lift scheduling and common area lighting

IndiaIn India, we established the first phase of our Go Green program to advance green practices across all projects and locations of our Global Applica-tions Group in India, California and Vietnam. Our aim is to reduce consumption levels of resources such as paper, power, water and fuel by turning to our employees to identify and implement creative solutions.

In a span of 7 months, most of our employees have engaged actively in the Go Green program, resulting in significant improvement in various green projects. Volunteers identified in our locations are implementing, monitoring and controlling the planned projects at their respective locations.

The Go Green TeamThe Go Green program has

already produced notable results.

To date, phase 1 has achieved the

following:

• 3.7% reduction in power usage

• 6.7% efficiency increase

in transportation

• 9.1% reduction in paper usage

• $378,035 in cost savings

The initiatives identified so far are

expected to reduce the

current usage of resources by

5% over the next 3 years — a

savings of nearly $800,000 in

business costs.

Face painting competition sponsored by the Go Green Team

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Ensuring ethical governance

Good governance is good business and good for society. Our efforts build on over 50 years of strong, ethical governance.

Progress report:

• Implementation of equity ownership guidelines for senior executives

• Completion of a comprehensive risk assessment

• Adoption of related party transaction policy

• Adoption of a written policy on Board diversity

• Implementation of regular succession planning by the Compensation Committee

• Amendment of Corporate Governance Guidelines to include responsibilities for the Lead Director

strong foundation, strategic oversight

governance 25

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Corporate GovernanceOur stockholders annually elect eight independent directors and our Chairman, President and CEO to serve on the Board of Directors (the “Board”). The Board is elected by the stockholders to oversee the management of the business of the company. In fulfilling its oversight role, the Board delegates certain oversight responsibilities to the Board’s committees.

Board of DirectorsCSC and the Board maintain Corporate Governance Guidelines (the “Guide-lines”), which govern the structure and functioning of the Board and its committees. In accordance with the Guidelines, the Board maintains three standing committees:

• The Audit Committee, which over-sees the accounting and financial reporting process and related internal control framework

• The Compensation Committee, which reviews and approves the corporate goals and objectives relevant to the CEO’s compensation and approves compensation of all other senior executives

• The Nominating/Corporate Gover-nance Committee, which assists the Board in identifying and evaluating candidates for election or re-election as directors and in shaping the corporate governance of CSC

The members of each Board committee must be independent, as set forth in the Guidelines. The charter for each of the Board’s committees as well as

committee membership is available at http://www.csc.com/governance.

The Board recommends director nominees to the stockholders for elec-tion, at each annual meeting. In choos-ing director nominees, the Nominating/Corporate Governance Committee identifies qualified director candidates and considers potential director candi-dates recommended by stockholders who own at least 1% of CSC’s outstanding shares. Stockholder-recommended nominees are evaluated in the same manner as all other nominees.

The Board believes that all directors should exhibit the highest profes-sional and personal ethics and values, demonstrate senior management and leadership experience, meet the standards on independence set forth in the Guidelines, balance the interests and concerns of all of our stockholders and other stakeholders, improve the quality of the Board’s decision making and effectiveness and reflect diversity in many respects, including business experience, geography, gender and ethnicity.

Chairman, CEO and Lead DirectorWe understand the importance of independent oversight on behalf of stockholders. The Guidelines allow the Board to elect the Chairman and deter-mine whether the offices of Chairman and CEO should be combined or sepa-rated. In conjunction with the currently combined Chairman and CEO positions, the independent directors designate a lead independent director (the “Lead Director”) responsible for calling and presiding over executive sessions, acting as liaison between the independent

Our Management Principles

CSC’s mission is to be a global leader in providing technology-enabled business solutions and services. This demands that we make an absolute commitment to excellence in our performance.

We will achieve our mission by observing these principles:

• We commit to client satisfaction as our most important business objective.

• We recognize that CSC’s accom-plishments are the work of the people who make up CSC. We will encourage initiative, recognize individual contribution, treat each person with respect and fairness, and afford ample opportunity for professional growth.

• We require the highest standards of professionalism and technical competence from our people.

• We will maintain the highest standards of ethics and business conduct and operate at all times within the laws of all countries in which we do business.

• We will proactively pursue new business opportunities, and commit to success in each undertaking.

• Our success as a company requires that we achieve financial performance consistent with these principles and commensurate with a leadership position in our industry.

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directors and the Chairman and being available for consultation and communication with the stockholders. The Lead Director’s responsibilities and instructions on communicating with the Board are available at http://www.csc.com/governance.

Risk ManagementAs part of its oversight responsibility, the Board oversees and maintains our governance and compliance processes and procedures to promote the highest standards of responsibility, ethics and integrity.

• The Audit Committee oversees risks related to accounting, financial reporting processes and internal controls of CSC, and reviews our policies and practices with respect to risk assessment and risk management.

• The Compensation Committee monitors the risks associated with succession planning and leadership development as well as compensa-tion plans, including evaluating the effect that our compensation plans may have on risk decisions.

• The Nominating/Corporate Gover-nance Committee monitors the risks related to our governance structure and processes.

Each committee reports to the Board any significant issues and recommen-dations discussed during the committee meetings.

The Board also oversees the identifi-cation, assessment and management of CSC’s risk. In order for us to iden-tify and mitigate risk exposures, we

maintain an Enterprise Risk Management Committee (the “ERM Committee”) that:

• Identifies risks in the strategic, operational, financial reporting and compliance domains, for CSC as a whole as well as for each business unit

• Evaluates the effectiveness of existing mitigation strategies

The ERM Committee, composed of direct reports to the Chairman, President and CEO, regularly reviews and assesses internal processes and controls for ongoing compliance with internal policies and legal regulatory requirements, as well as for potential weaknesses that could result in a fail-ure of an internal control process. The ERM Committee meets periodically and reports potential areas of risk to the Board and its committees.

Executive CompensationWe are committed to attracting and retaining highly qualified executives, motivating these executives to achieve our business objectives, rewarding strong performance, and aligning the interests of our executives with those of our stockholders. We have a “pay-for-performance” philosophy that is reflected in our compensation arrangements, in which a significant portion of our executives’ total compensation is “at-risk” based on Company and individual performance.

The Compensation Committee reviews best practices in governance and executive compensation on an ongoing basis.

Additional InformationWe continually review our corporate practices and policies in order to ensure the highest ethical standards and sound corporate practices. In addition to the documents addressed above, we maintain the following governance documents in furtherance of our corporate governance:

• Code of Ethics and Standards of Conduct for all directors of CSC and all employees of CSC and its subsidiaries

• Code of Ethics for the CEO, CFO and CAO

• Policy on Interested Transactions

• Equity Grant Policy setting forth the process for issuing equity securities to CSC directors and employees

Our key governance documents are available at http://www.csc.com/ governance.

They are also available to any person, without charge, by calling 800.542.3070 or writing to:Investor RelationsCSC3170 Fairview Park DriveFalls Church, VA 22042

27

Corporate Responsibility (CR) GovernanceOur Corporate Responsibility Governing Board, comprising

CSC’s senior-most executives, meets quarterly to lead our Corporate

Responsibility program, including defining CSC’s CR strategic direction

and management policy. Our Corporate Responsibility Council, chaired

by the program’s director and comprising representatives from each

operating unit, meets monthly to manage daily CR activities and report

on CSC-wide stakeholder engagement.

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summary

Continuing the journey

We will not stop here. Corporate responsibility is an

evolving project. As we

continue to advance our

efforts, we realize this year

will be critical to our success.

We are growing, and have

further to go.

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summary

Continuing the journey

CommunityEvaluate how we can continue to increase the monetary support and volunteer commitments our employees give to their local communities

EmployeesEstablish an annual employee CR award to recognize employees who are making a difference in supporting our Corporate Responsibility program and their communities, and who make an impact on our world

EnvironmentContinue to decrease our internal consumption of energy and water and production of waste, through various environmental improvement initiatives. Major focuses for the year will be on paper and print environment reduction, and energy savings initiatives in our data centers

Conduct more formalized carbon reporting at a global level. We expect this reporting to provide us with deeper insights into environmental savings ini-tiatives and support participation in the Carbon Disclosure Project, among other organizations

ClientsImprove client and partner collabora-tion in CR and make sustainability a core component of how we build client trust and go to market

GovernanceImprove our overall CR measurement to show progress year over year

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Corporate responsibility:We will continue the progress of the journey we are on.

We are CSC!

For the coming year, we have set our

sights on several key initiatives:

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Worldwide CSC Headquarters

The Americas3170 Fairview Park DriveFalls Church, Virginia 22042United States+1.703.876.1000

Europe, Middle East, AfricaRoyal Pavilion Wellesley Road Aldershot, Hampshire GU11 1PZUnited Kingdom+44(0)1252.534000

Australia26 Talavera Road Macquarie Park, NSW 2113 Australia+61(02)9034.3000

Asia20 Anson Road #11-01Twenty AnsonSingapore 079912Republic of Singapore+65.6221.9095

About CSCThe mission of CSC is to be a global leader in providing technology-enabled business solutions and services.

With the broadest range of capabilities, CSC offers clients the solutions they need to manage complexity, focus on core businesses, collaborate with partners and clients and improve operations.

CSC makes a special point of understanding its clients and provides experts with real-world experience to work with them. CSC is vendor independent, delivering solutions that best meet each client’s unique requirements.

For more than 50 years, clients in industries and governments worldwide have trusted CSC with their business process and information systems outsourcing, systems integra-tion and consulting needs.

The company trades on the New York Stock Exchange under the symbol “CSC.”

Designed and produced by CSC’s Marketing Shared Services — P2. © 2010 Computer Sciences Corporation. All rights reserved. Printed in USA P2 0593-11 A&N 2000 09/10