While our business objectives remain optimizing the products to meet the demanding performance of the customers, our "Green IT" initiative drives our design teams, procurement teams and customer teams to educate and carry together all associated external and internal stake holders involved. Continuous learning and review enables to have the policy consistently and promptly updated. Our new policy aims that the following substances are best avoided in the production process: Going a step forward, our new policy is geared around the Precautionary Principle which means that if reasonable scientific grounds indicate a material could pose serious environmental or human health risks, even if the full extent of harm has not yet been definitively established, precautionary measures should be taken to avoid the use of such substances in products unless there is convincing evidence that the risks are insignificant compared to the overall benefits to the society at large. Our aim is to gradually phase out and substitute such substances in the short to midterm and completely eliminate them over the long term once alternative materials become viable. Considering that customer's decision is what drives acceptance. We have mandated our sales organization to continuously educate customers to ask for "ECO Friendly" products. Our overall goal in this regard is to: SIS has taken support of researchers, academicians who specialize in the domain of Environment Conservation in industrial domain to scientifically assess the environmental cause and effect relationship of each component going into its products. Like any PC manufacturer in the World, our production process is also driven by downstream suppliers to a large extent. Our team jointly works with the Original Design Manufacturers to determine the usage of chemicals and the extent of its relative impact on environment before we proceed with the use of such chemicals. Constantly seek for new environment friendly chemicals that might substitute the current ones is also an objective set. Our engineers constantly communicate with its vendors about the evaluation and results of our analysis done. Sai InfoSystem (India) Ltd. also collaborates with various government agencies to upgrade and qualify the existing set of Rules and Regulation to ensure the delivery of safe products. As member of GESIA, CII, ASSOCHAM and such other industrial bodies, our leaders do constantly profess embracing eco-friendlyness in production and consumption of IT products and services. Constant monitoring of National policies such as Environment Protection Act (EPA), Hazardous waste Rules, ISI and ISO certification, Directives from Electronics Departments and from local government related to the IT industry provides the basic guidelines, while International Treaties, conventions and directions like RoHS which regulates the Electronics Industry form the overall umbrella. Based on the new precautionary principle, Sai InfoSystem (India) Ltd. now aims to work more closely with its partner eco system in identifying and eliminating not only the chemicals that are known and already rated as toxic and hazardous, but also those chemicals that might pose a potential threat in the near future to the safety of the environment and human health. This further means that Sai InfoSystem (India) Ltd. shall take all necessary precautions before it decides to use any new chemicals in its upcoming models, apart from gradually phasing out specified substances from existing models. However, Sai InfoSystem (India) Ltd. fully agrees with the Government of India's stand that the Indian approach to this issue will require appropriate handling of the IPR issue, since widest possible dissemination will require existing climate-friendly technologies and goods to be made available, especially to developing countries, as public goods. Competitive bidding for such technologies, financed through multilateral funds, could be used to avoid loss to the innovators. The collaborative R&D effort could be similarly funded through a multilateral fund under the UNFCCC with its products being available as public goods, enabling rapid and widespread dissemination. India, like other major developing countries, would be willing to be an active participant in any such initiative. It would also be necessary to provide for large scale capacity building, particularly in developing countries, to enable successful absorption and application of climate friendly technologies. A Copenhagen package incorporating these components, with an accompanying multilateral financing package, would have been an outcome worthy of a concerned global citizenry. India had made written submissions to the UNFCCC on these issues being considered in the ongoing multilateral negotiations, and we eagerly await a constructive outcome on this to fully comply with the global norms.

Sai InfoSystem (India) Ltd. adheres to the draft e-waste (Management and Handling) Rules, 2010. The Individual Producer Responsibility that Sai InfoSystem (India) Ltd. follows under these Rules, among others, states the following: Sai InfoSystem (India) Ltd.'s overall e-waste management policy aims at providing efficient and easy product recovery options to consumers under IPR/EPR to facilitate responsible product retirement of all its manufactured products along with taking financial responsibility for the same. The key objectives of the policy could be summarized as below:

"SIS Limited, as a globally responsible corporate citizen, is committed towards restoration of our salubrious climate by emission reduction and relying more on clean energy. We aim to continuously reduce and as much as possible refrain from the usage of hazardous substances and chemicals in its product portfolio. As an organizational policy, SIS strives to enhance the product life cycle, energy efficiency and recyclability to contribute towards environmental sustainability."

SIS shall focus on the environmental performance of our organization across emission and energy, ultimately to support the restoration of natural climate.

A GHG emission leads to global warming and climate change. Globally, there are number of conventions and treaties to address this issue. India being at an early stage of development, is having an ambitious objective to establish an effective, cooperative and equitable global approach based on the principle of common but differentiated responsibilities and respective capabilities, enshrined in the UNFCCC, although per-capita emission rates of India are a tiny fraction of those in the developed world. SIS will strive to achieve the relevant national missions of emission reduction by proactively engaging national and international GHG regulations.SIS is committed to calculate and disclose its direct and indirect emissions across its operational boundary as per globally accepted framework for organizations to report their footprint, GHG Protocol Corporate Standard. SIS will shortly be presenting the findings for all at its website.

SIS exercises at-most corporate commitment to reduce GHG emissions from its own operations, using preceding 12 months i.e. between 01 Sept 2010 to 30 Aug 2011 GHG emission data (GHG Protocol Corporate Standard: Scope 1 & 2) as a baseline. The organization has planned to take up an ambitious objective to reduce own GHG emissions by 31% on baseline by 31 Dec 2015. SIS is currently working out a program to achieve its target in a phased manner through investment in process modification, energy efficiency and adopting clean energy sources.Some of the key actions are (specific targets under each heads are being worked out)

Fossil Fuel resources are dwindling and are having number of negative repercussions on the environment. Renewable/alternative energy resources on the other-hand are environment friendly and are economically reliable as well in the long run. Taking cognizance of these environmental and business opportunities, SIS is shortly implementing a robust plan to shift towards clean energy and to achieve its GHG commitments through energy efficiency and renewable energy investment and deployment. The actions and investments to operationalize the implementation plan to achieve GHG reductions in own operations are in the following order of importance: Energy efficiency to avoid emissions, Reduce electricity demand, Augment renewable energy supply and Renewable energy credits trading which shall include a maximum of 25% and the rest shall be other sources of renewable energy in the company's electricity supply (1.2)

SIS strongly believes that, if government applies the Greenpeace's Energy [R]evolution blueprint, it becomes possible to reduce CO2 emissions sufficiently to stop dangerous climate change. It also gives access to electricity to communities who currently don't have any, ensuring a just and sustainable transition for developing countries. It also provides secure and affordable energy supply to take into account economic growth. In this regard, SIS have been supporting the clean energy priorities of national and sub-national level in countries of direct operations, and where appropriate, countries connected to distribution chain (in which all countries SIS operates). Its clean energy advocacy policy shall work with following priorities, These priorities will be reviewed and updated with each new version of the Guide and the changing socio-environmental scenario, to reflect the most current political realities. Our leadership will write to the Government in support of phasing out dirty, dangerous fuels (coal, nuclear).

SIS shall focus on the environmental performance of our desktops across energy efficiency, avoidance of hazardous substances, use of recycled plastic and enhancing the product life cycle to clean up activities and put products on the market that prove it. Not limiting to these, SIS strive to excel in this endeavor by incorporating the suggestions and feedback from all sources.

SIS strives to provide energy efficient products through research and development to reduce the energy requirement and GHG emission throughout product life cycle. Much of SIS desktop PC products currently meet latest Energy Star standards, as a baseline. This reflects in its product range, as many of the models are Energy Star 5.0 certified. Specific targets, and roadmap to transition all products to meet and exceed the latest Energy Star standards are being worked out.

Being environment and health conscious organization, SIS shall refrain from the use of hazardous substances. It defines hazardous substances as substances which are a know threat and have suspected indication of significant risk to human health and environment. Persistent chemicals undergo bioconcentration, bioaccumulation and biomagnifications are also considered as hazardous. Suspect chemical or group of chemicals, even if the scientific jury is still out on whether these chemicals are definitely causing environmental harm and health effects shall also be considered while determining hazardous nature of substances on the basis of Precautionary Principle.SIS shall collect information on banned/restricted/suspect chemicals by continuously monitoring the national and international treaties, conventions and any other direction. These shall include national policies like Environment Protection Act (EPA), Hazardous waste Rules, Directorate of Factories, Directorate of Electronics Department, ISI and ISO certification, Direction from local government related to IT industry and International treaties and conventions, such as REACH and RoHS Directive, relevant MSDS, etc. SIS shall also take into account customers suggestions (details of having a mechanism to receive and review Customer feedback and document it is being worked out). SIS in the long term, in a phased and planned manner shall eliminate substances which are hazardous to health and environment to aid in safe processing, production, use and recycling. Once a chemical is identified of suspected hazard, SIS considers these to be substances of concern and work towards their elimination in the long term and substitution or gradual phase out in the short term. It shall maintain a list of such identified substances along with its prioritized action. SIS shall ensure the implementation of chemical management along its supply chain through information communication and vendor evaluation. (details of having a mechanism to incorporate in vendor evolution procedure is being worked out) SIS practices hazardous substance advocacy and works with various government and non government agencies to upgrade and qualify the existing set of Rules and Regulation to ensure the production and delivery of safe products. It proactively supports a revised EU RoHS Directive with an end-of-life focused methodology for adding new groups of substances and a ban on organohalogens. It also supports for stricter RoHS 2.0 by means of a public statement in support of strengthening the RoHS Directive. As on Sept 2011, our entire desktop PC, thin client, laptop and server products models are RoHS complaint, devoid of banned / restricted substances. Other hazardous substances are with in the maximum permissible limits of prescribed by various directives

Wastage of resources leads to a stress on the environment as well as on profitability. SIS incorporates practices better manufacturing practices and minimizes the wastages to lessen the dependence on virgin resources. In an effort to 100% recycling program, it is working towards re-channelizing its entire spent/used product for recycling. It is working on getting 100% of its plastic wastes re-processed through authorized recyclers for reuse purposes.SIS is committed to use recycled plastic sourced as a proportion of the total plastic used. The recycled plastic shall be both post-industrial and post- consumer. SIS is proposing a plan and timeline for increasing use of recycled plastic to at last 25% of total plastics used by 2020. As on Sept 2011, use of its 15% of all plastics is sourced from recycled plastic streams.

Shorter life-cycles lead to larger quantities of e-waste as consumers update their systems for the latest technological innovations, GHG emissions from the energy used in manufacturing and increased use of chemicals and raw materials makes up a substantial part of a product's impact on the environment. Taking cognizance of importance of Product life cycle, SIS is continuously engaged in enhancing the products life cycle over average life cycle and energy efficiency during use through research and development. It also aims to provide with the possibility of easily updating components and/or software. SIS encourages reuse of its products and provides necessary updating solution. Warranty periods, energy star certificates and RoHS compliance can be accessed at its product manuals / brochures.

SIS intends to extend its sustainability policy through out the product life cycle. Considering the role of suppliers in its product sustainability, SIS has established programs to seek complimentary response from them as well. The program encompasses -

SIS shall strive to minimize Greenhouse gas emissions from the external supply chain emissions from at least three stages or rungs of supply chain in an effort to reduce overall energy footprint of its products. It is working towards seeking emission reductions in its supplier chain in line with the organizations objectives get supplier emissions verified up to or exceeding 80% of the embedded energy.

Forests act as environmental buffers and are indispensible for the existence of life. In effort to conserve forests, SIS works to prevent deforestation and promote sustainable and responsible forest management. SIS ensures the procurement of fibres from identified suppliers after verifying their third party verification reports regarding their noninvolvement in deforestation. SIS has recently set a mandate across the organization to go for recycled fibers by at least 25% of the total consumption.

Under present scenario, regional social and environmental conflicts are growing, out of sourcing of minerals including timber. SIS extends its commitments to source such conflict minerals from conflict free areas. To ensure its commitment, SIS is working towards implementation of a program by 2015, to trace the minerals used in its products from where they are sourced, audit their supply chain, and support legislation encouraging sourcing of minerals in regions where conflict is not escalated due to mineral sourcing. The details of this implementation are being worked out.All in all, SIS has mandated itself to pursue its "Green Policy" in true earnest.