Shareholders

We continue to seek to provide shareholder value as one of our key business drivers and aim to demonstrate that there is a real business case for the implementation of sustainable development.

We believe providing a sustainable solution benefits our business performance, hence benefiting our shareholders. Improving the environmental and social aspects of our performance is an important part in helping us to deliver our corporate business and financial objectives. This is demonstrated by the work that we have continued to do on our business strategy model.

Our business strategy model is a tool, which helps us understand how objectives and Key Performance Indicators (KPIs) can be used to improve sustainability performance whilst delivering business benefit.

We have continued to develop and refine our business strategy model during 2002 and identified the direct links between our sustainability objectives and our strategic business objectives by using our KPIs. This linkage was undertaken on two levels.

This has enabled us to more clearly align the delivery of our business objectives (including shareholder value) and our sustainability objectives. The revised model is being used within the business to demonstrate the business case for sustainable development. When presented to our management teams the model permits us to demonstrate the key areas where our financial performance is linked to our sustainability performance. The model also assisted us in focusing our future strategy and was one of the driving forces in the setting of our 2003 sustainability objectives and targets.

Our progress in further development of our business strategy model was recognised by Business in the Community and they invited us to help some of its members develop similar models for their businesses.

Please refer to our Annual Report and Accounts for details of our financial performance in 2002.