PREPARED BY: NICHOLAS ANASINIS MARIA ISMAIL PATRICIA JURCA LEI YANG

CORPORATE SUSTAINABILITY WORKOUT

TEN YEAR SUSTAINABILITY PLAN

APRIL 30, 2010

GlobalPurpose

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Tata WaymeasurableImpact Identity

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Culture

Corporate Sustainability (CS) is integral to value-creation in our businesses through the

enhancement of human, natural and social capital complementing their economic and financial growth

in order to give the enterprise an enduring future and also help create and serve a larger purpose, at

all times. It facilitates accountability to all stakeholders as a systemic practice.

HOW ARE WE GOING TO GET THERE?

Establish a whole system approach to sustainability

•Stay true to the Tata values throughout the supply chain•Capitalize on sustainability as a value driver•Meet & exceed regulatory and industry standards in target markets•Manage externalities effectively

Action Plan

Supply Chain Initiatives

Governmental Initiatives & Industry

Standards

Product Differentiation, Product Development

& Innovation

ACTION PLANEstablishing business practices that dictate a holistic approach to sustainability. 0 1 2 3 4 5 6 7 8 9 10

PRODUCT DIFFERENTIATION, PRODUCT DEVELOPMENT & INNOVATION

Identify companies within the Tata group which are leaders in sustainability oriented product and process differentiation and innovation

Identify strengths/capabilities that make that differentiation and innovation possible

Develop a replicable model for product differentiation and innovation which includes a filter for being mindful of possible externalities from different perspectives when articulating solutions to unmet social/environmental needs in target markets

Utilize this model to improve product differentiation, development and innovation

GOVERNMENT INITIATIVES & INDUSTRY STANDARDS

Understand regulatory environment and industry standards in target markets

Establish business practices to exceed the most stringent regulatory requirements and industry standards

Apply these superior Tata standards consistently across different Tata companies

Identify and leverage opportunities to partner with government for policy development incorporating Tata's superior environmental and social standards

SUPPLY CHAIN INITIATIVES

Identify best practices across sector

Develop criteria for supply chain audit

Supply chain mapping: identify all suppliers

Conduct supply chain audit

Encourage suppliers to adopt best practices

Mandate suppliers to adopt best practices

HOW ARE WE GOING TO GET THERE?

Apply a sustainability lens to acquisitions

•Acquisitions are a major part of Tata’s growth strategy

•Lower integration costs

•Reduce risk to reputation

Action Plan

Criteria to evaluate ‘sustainability fit’ of target acquisition

Post acquisition sustainability

implementation

ACTION PLANIncorporating sustainability into Tata’s acquisition strategy. 0 1 2 3 4 5 6 7 8 9 10

CRITERIA TO EVALUATE ‘SUSTAINABILITY FIT’ OF THE TARGET ACQUISITION

Find sustainability exemplars by sectorIdentify strengths/capabilities that make that sustainable model workCompare these strengths/capabilities with the strengths of an equivalent Tata companyIdentify the gaps to highlight the strengths needed by the Tata company to improve

Develop and implement benchmarked practices in the company•Identify challenges faced in implementation•In hindsight, identify what features/characteristics of the company played a key role in making this implementation challenging

Use these features/characteristics as a screening criteria for future acquisitions in that industry •Learn with each subsequent acquisition and refine 'sustainability fit' criteria

POST ACQUISITION SUSTAINABILITY IMPLEMENTATION

Implement post-acquisition TQMS and TCCI processes/initiatives to the acquired company e.g. established frameworks to measure sustainability impacts such as the Tata Index for sustainable human development or abatement strategies for climate change

HOW ARE WE GOING TO GET THERE?

Build a global brand

• Create a shared vision

• Be known

• Effectuate change

Action Plan

InternalInitiatives

ExternalInitiatives

LeadershipInitiatives

Leadership with trust

ACTION PLANBuilding a global Tata brand that embodies the Tata values. 0 1 2 3 4 5 6 7 8 9 10

LEADERSHIP

Identify successor to Ratan Tata to take the Tata group global while embodying its values

Continue to have commitment to sustainability and embodiment of the leadership protocol as key criteria in succession planning for all key positionsDevelop and execute sustainability training programs for key executives that promote a holistic approach to sustainability and address the implications and opportunities of truly making Tata a global brand from learnings of the initial sustainability strategies

EXTERNAL

Identify a major issue within each target market and focus on which issue can be addressed with current Tata capabilities (utilize model for product/process innovation and differentiation)Identify and engage strategic partners (business, NGO, government) to affect change by providing access to required resources/capabilities in the target marketCelebrate success of sustainability initiatives in the target markets through brand building advertising campaignsINTERNAL Design 'Employee Sustainability Program' aimed at the local community of different target markets to engage Tata employees there and achieve cultural alignment and shared value entrenchment in Tata's global employee base

Provide employees opportunities to work on self-identified sustainability projects, on paid company time, which are aligned with their unique technical skills and competencies

Celebrate employee success stories

WHY EVA?

• EVA adopters deliver greater shareholder value

• Useful to analyze value driver

• Creates an ownership mindset in employees

• Better tool for strategic resource allocation

HOW IS VALUE CREATED?

+Higher

EBIT Margin

Wider Access

to Capital

HOW DOES IT LOOK OVER 10 YEARS?

WHAT ARE THE CHALLENGES?

• Implementation

• Organizational structure

• Access to capital

• External factors

SO… DO THIS TOMORROW

• Discuss implementation with TQMS and TCCI

• Identify your sustainability champions

Q & A