Addressing Material Matters

Matter of Risk or Opportunity and the Context

Risk

We work with a wide range of customer data which is leading to increased regulatory scrutiny globally. Cloud-based software and IT services also raise concerns about potential access to user data by governments.

Effective management in this area is important to reduce regulatory and reputational risks which can impact revenues, and market share, and lead to regulatory actions involving potential fines and other legal costs.

Approach to Adapt or Mitigate

• Implemented Data privacy policies and controls as per the GDPR requirement to protect personal data
• In process of implementing the Privacy Information Management System as per the ISO 27701 standard
• Undertaking annual security awareness sessions

Matter of Risk or Opportunity and the Context

Risk

Rising instances of cyber-attacks and social engineering puts our data and that of our customers at risk.

Inadequate prevention, detection, and remediation of data security threats can damage our reputation and thus influence customer acquisition and retention, resulting in decreased market share and lower demand for our products.

It can also result in increased expenses, due to remediation efforts such as identity protection offerings and employee training on data protection. New and emerging data security standards and regulations further lead to increased costs of compliance.

Approach to Adapt or Mitigate

• Implemented multiple controls to ensure data security and privacy including user awareness and training programs, end point and N/W security controls
• Proactive monitoring and analysis of any new vulnerabilities and threats
• Ensuring all third parties have adequate data protection measures and procedures

Matter of Risk or Opportunity and the Context

Risk & Opportunity

Climate change poses significant physical and transition risks to our business. It can also impact the wellbeing of Happiest Minds and customers as well as our strategy and financial resources. It also offers opportunities arising from innovations in energy efficiency and renewable energy.

Approach to Adapt or Mitigate

• Actively integrating ESG in our business decisions and designing our operations and business activities aligned with climate neutrality by leveraging innovative technologies, renewable energy, and upgrading existing systems for higher efficiency
• Board-approved ESG policy aimed at enabling a low-carbon and resource-wise economy
• Climate change risks and opportunities reviewed by a Board-approved management level ESG committee
• Helping our customers to transform their business into lean, energy-efficient, and agile cloud-based digital solutions, and embrace technology-led green solutions
• Encouraging vendors to adhere to safe and environmentally responsible practices

Matter of Risk or Opportunity and the Context

Opportunity

IT companies spend a significant proportion of their revenues on IP protection. While IP protection is inherent to the business model of some companies, it is also an important driver of innovation, and restricting competition from accessing its benefits can be a contentious societal issue.

Approach to Adapt or Mitigate

• Balancing the protection of our IPs and their use to spur innovation so as to not unfairly restrict competition

Matter of Risk or Opportunity and the Context

Risk

Programming errors or server downtime have the potential to generate systemic risks, such as computing and data storage functions to the cloud. The risks are heightened for sensitive sectors, such as financial institutions or utilities, which are critical to national infrastructure.

Investments in improving the reliability and quality of IT infrastructure and services are therefore critical.

Approach to Adapt or Mitigate

• Adopted a Secure Software development process to ensure any security vulnerabilities are identified and fixed prior to release
• Perform detailed security testing on the developed application/system

Matter of Risk or Opportunity and the Context

Opportunity

Our people are the key contributors to value creation. Recruiting qualified employees to fill the relevant positions and training them adequately in including niche skills is key to servicing our clients and driving future growth. It also enables us to provide a quality differentiator.

Approach to Adapt or Mitigate

• Multiple learning and development programs to upskill and reskill people
• Robust system for acquiring and retaining the right talent

Matter of Risk or Opportunity and the Context

Opportunity

The health and safety of our teams as well as their physical, emotional, and mental wellbeing is critical to keeping them motivated, driving their productivity, and influencing their retention.

Diversity and Inclusion is essential as it helps in bringing diverse talent within the organization and thus drives a thriving and innovative culture. It also helps us understand the needs of our diverse and global customer base.

Approach to Adapt or Mitigate

• Significant monetary and non-monetary benefits given to improve people engagement and therefore retention
• Regular surveys conducted to gauge People Pulse
• Consistently scored high on all Great Place To Work® parameters
• In terms of diversity, 26.4% of Happiest Minds are women and we intend to increase this to 35% in 10 years

Matter of Risk or Opportunity and the Context

Opportunity

Business must be rooted in community and be aligned with its larger interests. Any adversarial relationship can hurt our ability to create long-term value.

Approach to Adapt or Mitigate

• Striving to be a good corporate citizen with a special emphasis on environmental responsibility and driving inclusivity
• Maintaining harmonious relationships with the community by undertaking various support and developmental efforts