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    Corporate Social Responsibility (CSR) Policy

    SGS aims to be the most competitive and the most productive service organisation in the world. Our core competencies in inspection, verification, testing and certification are being continuously improved to be best-in-class. They are at the heart of what we are. Our chosen markets will be solely determined by our ability to be the most competitive and to consistently deliver unequalled service to our customers all over the world.

    I. Brief Background of SGS India Private Limited (“SGS”)

    Founded in 1878, SGS is a global leader in inspection, verification, testing and certification services with more than 85,000 employees. SGS operates a network of over 1,800 offices and laboratories around the world in more than 140 countries, and has its headquarters in Geneva, Switzerland. The SGS group is recognised as a global benchmark for quality and integrity. As a professional, independent and reliable partner, SGS is committed to the delivery of enhanced value for its shareholders, clients, employees and the public at large.

    SGS India Pvt. Ltd., founded in 1950, is a wholly owned subsidiary of SGS S.A. and is one of the pioneers of providing inspection, verification, testing and certification in India. With its corporate headquarters in Mumbai, SGS India has a vast network of over 60 locations, including 40 laboratories all across India. With years of local experience and a workforce of more than 3,500 motivated and multi-disciplined professionals, SGS India Pvt. Ltd. offers a high level of expertise in testing and inspection of a variety of products from a wide range of industries, including agriculture, minerals, petroleum and consumer products together with certification and other services to the government and institutions.


    II. Corporate Social Responsibility Philosophy

    The activities of SGS are spread across almost all the states in India. The vast range of activities and businesses that come under the ambit of SGS, provides the company with immense opportunities to contribute to society in different ways across the country.

    The CSR initiatives of SGS are steered by the guiding principle of sensitivity to the needs of the people, enhancing the quality of their lives and protection of the environment.

    Corporate Social Responsibility of SGS involves the following:

    a) Welfare measures for the community at large, including employees and their families, to ensure the economically disadvantaged section of society is benefited.

    b) Contribution by way of social and cultural development, imparting education, training and social awareness, especially for the economically disadvantaged, to ensure development and to enable them to be financially stable.

    c) Protection and safeguard of the environment and maintaining ecological balance.


    III. Objectives of the CSR Policy

    The key objectives of the CSR policy are:

    1. To specify focus areas for CSR activities
    2. To set out the implementation strategy of the CSR initiatives
    3. To institute the monitoring mechanism for the CSR initiatives
    4. To lay down the methodology for and measuring the outcomes and impact of the CSR initiatives


    IV. Focus Areas for CSR Initiatives

    As the business activities of SGS extend over almost all parts of India, SGS will have several opportunities of varying scales and expanse to make a social impact on people and their livelihood and environment.

    The focus areas identified for SGS CSR initiatives are:

    1. Education: promoting education, and employment and livelihood enhancement skills among children, women, the elderly and the differently abled
    2. Water supply: making available safe drinking water in rural areas
    3. Healthcare: providing improved and affordable access to medical facilities and medicines
    4. Environment: promoting environmental sustainability, ecological balance, conservation of natural resources and maintaining the quality of soil, air and water
    5. Social empowerment: training and supporting self-employment opportunities
    6. Rural development: providing infrastructure for village electricity/solar light/windmills and training the beneficiaries to operate and maintain them
    7. Sports and culture: promoting sports and culture
    8. Granting donations to NGOs: granting donations/financial assistance/sponsorship to reputed NGOs that are involved in helping society
    9. Heritage: protecting and maintaining heritage sites
    10. Disaster mitigation: help for victims and affected areas
    11. ‘Swach Bharat Kosh’: donation/contribution to the ‘Swach Bharat Kosh’ set by central government
    12. Funding: Contribution to the Prime Minister’s National Relief Fund or any other fund set up by the Central Government for socio-economic development and relief and welfare of the Scheduled Castes, the Scheduled Tribes, other minorities and women

    1. Education:

    • Support to technical/vocational institutions for self-development
    • Academic education by way of financial assistance to primary, middle and higher secondary schools
    • Adult literacy, especially amongst those below the poverty line
    • Awareness programs on girls’ education
    • Counselling of parents
    • Special attention on education, training and rehabilitation of mentally and physically challenged children/persons
    • Spreading awareness of law amongst people and disadvantaged sections of society about their rights and the remedies available
    • Promotion of professional education by setting up educational institutions offering courses in engineering, nursing, management, medicine, technical subjects, etc.
    • Provide fees to economically disadvantaged and meritorious, preferably girl students of the schools in the vicinity of SGS operations, to enable them to acquire an uninterrupted education
    • Provide cycles to economically disadvantaged girl students who are attending school in remote and distant areas

    2. Water supply, including drinking water:

    • Installation/repair of hand pumps/tube wells
    • Digging/renovation of wells
    • Gainful utilisation of waste water from underground mines for cultivation or any other purpose
    • Development/construction of water tanks/ponds
    • Rain water-harvesting scheme
    • Formation of a task force of volunteers to educate people regarding proper use of drinking water
    • Empowering to the villagers by ensuring that they can maintain the above facilities for the availability of water

    3. Health Care - organising health awareness camps on:

    • AIDS, TB and Leprosy
    • Raising awareness on the dangers of alcohol, smoking, drug abuse, etc.
    • Child and mother care
    • Diet and nutrition
    • Operation Jyoti – Vision 2020 to help people of the peripheral area by providing the necessary assistance
    • Blood donation camps
    • Diabetics detection and hypertension camps
    • Family welfare
    • Senior citizen health care wellness clinics
    • Fully equipped mobile medical vans
    • Supplement the different programs organised by local/state authorities

    4. Environment:

    • Organising sensitising programs on environment management and pollution control
    • Green belt development
    • Afforestation, social forestry, maintenance of dams and parks
    • Restoration of mined out lands
    • Development of jobs related to agro products, i.e. dairy/poultry/farming and others
    • Plantation of saplings
    • Animal care

    5. Social empowerment:

    • Self/gainful employment opportunities – training of rural youth for self employment (TRYSEM) on welding, fabrication, and other electronic appliances
    • To provide assistance to villagers with small patches of land to develop mushroom farming, medicinal plants, farming and other cash crops to make them economically dependent on their available land resources. Training may be provided by agricultural experts
    • Organising training programs for women on tailoring, embroidery designs, home foods/fast foods, pickles, painting, interior decoration and other vocational courses
    • Care for senior citizens
    • Adoption/construction of hostels (especially for underprivileged girls)

    6. Rural development:

    • To develop infrastructural facilities for providing electricity through solar lights or alternative renewable energy to nearby villages. Recurring expenditure should be borne by the beneficiaries
    • To install windmills as an alternative source for providing electricity in villages

    7. Sports and culture:

    • Promotion of sports and cultural activities for participation at state and national level
    • Promotion/development of sports activities in nearby villages by conducting tournaments, such as football, Kabaddi and Khokho and other sports
    • Providing accessories and other requirements for football, volleyball and hockey to young and talented villagers
    • Promotion of national level teams
    • Sponsorship of national sports events
    • Sponsorship of cultural events to restore Indian cultural traditions and values
    • Providing facilities for physically disabled persons
    • Supporting the preparation of documentary films to promote sports
    • Granting financial assistance/donation/sponsorship for sport events

    8. Granting donations to NGOs:

    To grant donations to the NGOs that are involved in helping the society, as per our group guidelines.

    9. Heritage:

    To work towards protection and maintenance of our heritage sites.

    10. Disaster Mitigation:

    • To provide food, clothes, medicine and other essential items to the people in disaster affected areas
    • Granting financial assistance/donations for rebuilding infrastructure, healthcare and rehabilitation programs for disaster affected areas

    11. ‘Swach Bharat Kosh’:

    To be decided by SGS as per the company’s internal policy.

    12. Funding:

    To be decided by SGS as per the company’s internal policy.


    SGS will take up other CSR initiatives as may be required from time to time, in compliance with Schedule VII of the Companies Act, 2013 and Companies (Corporate Social Responsibility Policy) Rules, 2014.

    Preference will be given to the local area and areas around which SGS operates for undertaking the CSR activities.


    V. Implementation

    CSR activities will be undertaken as projects or programs or activities, excluding activities undertaken in pursuance of the normal course of business.

    SGS will undertake CSR activities in any of the following manners:

    1. Directly by SGS through its employees or through a registered trust or a registered society or a company established by SGS or through its holding, subsidiary or associate company under section 8 of the Companies Act, 2013 or otherwise; or
    2. Through other foundations, trusts or a company registered under section 8 of the Companies Act, 2013 or section 25 of the erstwhile Companies Act, 1956
    3. Partnering with other organisations/institutions who specialise in such projects
    4. Engaging the services of specialised agencies to implement the projects

    If the trust, society or company is not established by SGS or its holding, subsidiary or associate company, SGS would ensure that it has an established track record of three years in undertaking similar programs or projects.

    Specialised agencies would include:

    i. Community based organisation, whether formal or informal
    ii. Elected local bodies such as Panchayats
    iii. Voluntary agencies (NGOs)
    iv. Institutes/academic organisations
    v. Trusts
    vi. Self-help groups
    vii. Government, semi-government and autonomous organisations
    viii. Standing conference of public enterprises (SCOPE)
    ix. Mahila Mondals/Samitis and the like
    x. Contracted agencies for civil works
    xi. Professional consultancy organisation

    While partnering with other organisations / institutions or engaging the services of specialised agencies, the credentials of such entities will be verified and all requisite information and documentation as listed in Annexure 1 would be obtained and necessary documentation would be completed.


    VI. Monitoring Mechanism

    • In terms of the provisions of section 135 of the Companies Act, 2013 read with The Companies (Corporate Social Responsibility Policy) Rules, 2014 the Board of Directors (Board) of SGS have constituted a Corporate Social Responsibility (CSR) Committee comprising three directors
    • The Committee is headed by the managing director, and two current members of the board as members
    • The CSR Committee has formulated this CSR Policy indicating the activities to be undertaken by SGS
    • The Board of SGS after taking into account the recommendations made by the CSR Committee has approved this CSR Policy
    • The CSR Committee along with the CSR team of employees of SGS would be responsible for implementing and taking decisions in respect of the CSR Policy
    • The CSR Committee shall monitor the implementation of the CSR projects, programs and activities from time to time and issue suitable directions to the CSR team
    • The CSR Committee shall decide the priority of the activities to be undertaken for CSR
    • The CSR Committee shall hold at least two meetings every year for reviewing the implementation of the CSR Policy and report their findings/views to the board of SGS
    • The CSR Committee shall review the CSR Policy from time to time and suggest modifications, if required
    • The CSR committee can communicate with any means of communication


    VII. Budget

    • Minimum of 2% of the average net profit of the last 3 years will be spent on CSR initiatives undertaken by SGS
    • CSR Cell of SGS would act as “NODAL” and would put up all cases to the CSR Committee for consideration. The board will approve the appropriate proposals. The managing director will authorise the expenditure as per the approval/ his financial limits under DAM. If there is any deviation in the expenditure from the approved proposal, it would be put up for the board’s approval.
    • All expenses towards programs, projects and activities will be supported with appropriate documentation
    • In the event that 2% of the average net profit of the last 3 years is not spent in a financial year on the selected CSR activities, reasons for the same shall be specified in the annual report on CSR activities in the board’s report
    • Any surplus generated out of the CSR activities will not be added to the normal business profits of SGS


    VIII. Measuring and Reporting the Outcomes and Impact

    • A full time CSR Cell will be constituted, headed by a person appointed by the board who will prepare the report on CSR activities. Monthly reports on CSR will be sent to the CSR Committee highlighting the cumulative outlays and outcomes of the programs giving requisite details
    • The report(s) shall include the details of the program’s effectiveness in achieving the desired objectives by actually reaching out to the beneficiaries or intended beneficiaries of the respective projects, programs and activities
    • The CSR Committee will review the reports at its meetings and periodically report to the Board of Directors
    • Based on effectiveness and necessity, the CSR Committee can make recommendations to the board for continuation or withdrawal of any particular project, program or activity


    IX. Base Line Survey & Documentation

    • For CSR activities where a Community Development Program is involved, a base line survey will be carried out and the cost benefit assessed
    • Meticulous documentation relating to CSR policies, programs, expenditures, procurement, etc. shall be prepared and placed before the CSR Committee


    X. Upkeep and Maintenance of Assets Created

    Maintenance of assets created under CSR will be the responsibility of the concerned beneficiaries and local representatives. Before any capital investment is made, an undertaking will be taken from representatives of the local community specifying their responsibility for the maintenance of the assets.


    Annexure 1

    List of documents / information to be obtained / considered while engaging other entities

    • Memorandum of Association and Articles of Association
    • Charter constituting the entity
    • Registration certification
    • Audited financial statements / accounts for the last three years
    • IT Exemption Certificate under Section 80G / 35(i), as may be applicable and available
    • Pan Card
    • Letter of authority or approval, as may be applicable, for the entity to undertake the project
    • Details of the entity’s organisational structure, capability, technical skills and manpower resources



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