Update on Alstom India CSR

Martin Delaroche Alstom India CSR officer

CSR monthly meeting
26th March 2014

Presentation structure
India CSR - Legal Framework
Alstom India CSR Policy
Update on progress of Alstom India CSR projects
Next steps

Presentation title - 28/03/2014 P 2

ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on
that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without
liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

India CSR Legal framework 1

Companies Act, 2013, passed in August 2014
Notified rules by the Ministry of Corporate Affairs on 27th February 2014
Little summary of the key provisions:
1.

Alstom India Limited & Alstom T&D India Limited* will have to spend 2%
of their profit before tax** on CSR activities every financial year
(Alstom India total budget = Rs. 9.5 crores / 1.2 million)

2.

We will have to undertake governance changes (Creation of a CSR

committee) and every CSR project will first have to be voted by the
Board of Directors (in our case, the BoD of both companies)

3.

We must be transparent and publish the details of any CSR activity

undertaken in the Annual Report (reporting format provided by the law)

*Grid Equipments Ltd (Indian holding of T&D might fall under the law)
** 2% of the average net profit of the three previous financial years
Presentation title - 28/03/2014 P 3
ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on
that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without
liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

India CSR Legal framework 2

What projects qualify as CSR under the law? (notified rules)
Projects or programs relating to activities specified in schedule VII to the
Act; or
Projects or programs relating to activities undertaken by the board of
directors of a company (Board) in pursuance of recommendations of the
CSR Committee of the Board as per declared CSR policy of the company
subject to the condition that such policy will cove subjects enumerated in
Schedule VII of the Act

Conclusion: there is some flexibility in the choice of projects, as the law

does not contain any sanctions against companies, except when the
company does not publish how the CSR funds are spent or why they are
not spent
Presentation title - 28/03/2014 P 4
ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on
that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without
liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

India CSR Legal framework 3

List of projects eligible under the law (Schedule VII):
(a) Eradicating hunger, poverty and malnutrition, promoting preventive health care and
sanitation and making available safe drinking water;

(b) Promoting education, including special education and employment enhancing

vocational skills especially among children, women, elderly, and the differently abled and
livelihood enhancement projects;
(c) Promoting gender equality, empowering women, setting up homes and hostels for
women and orphans; setting up old age homes, day care centres and such other facilities
for senior citizens and measures for reducing inequalities faced by socially and
economically backward groups;
(d) Ensuring environmental sustainability, ecological balance, protection of flora and
fauna, animal welfare, agroforestry, conservation of natural resources and maintaining
quality of soil, air and water;

Presentation title - 28/03/2014 P 5

ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on
that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without
liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

India CSR Legal framework 4

List of projects eligible under the law (Schedule VII) - continued:
(e) Protection of national heritage, art and culture including restoration of building and
sites of historical importance and works of art; setting up public libraries; promotion and
development of traditional arts and handicrafts;
(f) Measures for the benefit or armed forces veterans, war widows and their dependants;
(g) Training to promote rural sports, nationally recognised sports, paralympic sports and
Olympic sports;
(h) Contribution to the Prime Ministers 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 Traibers, other backward classes, minorities and women;
(i) Contributions or funds provided to technology incubators located within academic
institutions which are approved by the Central Government

(j) Rural development projects

Presentation title - 28/03/2014 P 6

ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on
that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without
liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

India CSR Legal framework 5

Additional comments:
No definition of CSR in the law
Every project which would be conducted in the normal course of business does not
qualify for CSR spending
Every project which benefit only the employees will not qualify as CSR
Possibility to carry out CSR activities by setting up a foundation / society / section 8
company

Only projects undertaken in India will amount to CSR expenditure

5% of CSR budget available for capacity-building of the companies teams or partners
Contribution of any amount directly or indirectly to any political party will not be
considered as a CSR activity
In case of a failure to spend 2% during the given financial year, the company shall 1)
explain the reasons; 2) transfer the surplus for spending during the next financial year
Presentation title - 28/03/2014 P 7
ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on
that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without
liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Alstom India CSR Policy

A brief history of Alstom India CSR policy
December 2013: three brainstorming meetings organized with top managers of
each business sector (Transport, Renewable and Thermal Power, and Grid)
= definition of main areas of action
January 2013:
CSR questionnaire sent to
local sites for comments
February 2014:
The first general CSR
meeting
=
Introduction of
Alstom India CSR policy
Next months:
Creation of Board-level CSR
committees
Presentation title - 28/03/2014 P 8
ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on
that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without
liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Alstom India CSR Policy

Alstom India CSR vision
Alstom CSR policy is already applied in India
in our day-to-day activities
The Alstom INDIA CSR policy is a specific
country-action-plan which aims at strengthening
Alstoms CSR policy by contributing significantly
to specific areas within Alstom CSR policy
The Indian CSR rules leave room for corporations
to have CSR activities as per their own vision of
CSR.
Alstom INDIA CSR Policy to be approved and voted
by the Board of Directors

Presentation title - 28/03/2014 P 9

ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on
that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without
liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Alstom India CSR Policy: 5 main axes

Developing a sustainable supply chain

Bringing access to electricity to off-grid rural villages

Supporting skills development

Improving health and sanitation of villages/areas around our sites

Contributing to structure the innovation ecosystem

Presentation title - 28/03/2014 P 10

ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on
that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without
liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Update on progress of Alstom India CSR projects

Action plan
We are currently creating One Alstom working groups for each
CSR project, striving to include in each of this group at least one
person from Grid, one from Transport and one from Renewable /
Thermal Power
These groups require the commitment of Alstom employee
beyond the call of duty. CSR is a voluntary activity which has to
be driven by all Alstom employee and not a particular department
Timeline: projects should ideally start during the next fiscal year
April 2014- March 2015

Presentation title - 28/03/2014 P 11

ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on
that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without
liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Update on progress of Alstom India CSR projects

Update
Developing a sustainable supply chain

- First meeting held in January with members of the sourcing team:

good support for project implementation
- Second Meeting in March to detail the action to be implemented for
next year: Supplier Improvement Program (SIP).
- Next meeting: 27th March
- Need for creating a permanent working group on sustainable
sourcing
Bringing access to electricity to off-grid rural villages

- Access-to-Electricity (ATE) group created with a core committee

(directors) and a pilot committee (action team of 5 members to carry
day-to-day project development work)
- Definition of project objectives
- Screening of 5 potential partners for final selection by the Board of
Directors

Presentation title - 28/03/2014 P 12

ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on
that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without
liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Update on progress of Alstom India CSR projects

Update
Supporting skills development

- Action plan drafted

- Working group members selection process started
Improving health and sanitation of villages/areas around our sites

- Action plan drafted

- Working group members selection process started
Contributing to structure the innovation ecosystem

- Implementation of an Innovation Team Initiative

- Alstom to be seen as a key player in structuring the innovation
ecosystem in India
- Meeting with key stakeholders (Department of Science & Technology,
Karnataka State Council on Science & Technology, etc.)
- A working group to be created in alignment with Alstom University/HR

Presentation title - 28/03/2014 P 13

ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on
that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without
liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Next steps / Conclusion of the meeting

Next steps

April 2014:

Working groups to continue their activities

Creation of CSR committees
Vote of the CSR policy by the BoD of AIL and ATDIL
Vote of the first projects (first part of ATE project + Sustainable sourcing)

April 2014 - March 2015:

CSR project activities to start
Additional CSR projects to be voted (innovation, health/sanitation, skills
development)

Long-term objectives
From now on, CSR will be part of the day-to-day activities of Alstom India, with a
clearly identified and earmarked budget
CSR projects are meant to involve, innovate and expand
New topics to be explored: CSR volunteering, implementation at local sites, etc.

Thank you! - Dhanyavaad! - Merci beaucoup!

Presentation title - 28/03/2014 P 14
ALSTOM 2013. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on
that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without
liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

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