Managing Director's Statement

Welcome to our 2007 Interim Sustainability Report, which provides an overview of PRUPIM’s sustainability performance during 2007.

Early in 2007, we set our targets with a deadline of the end of 2008, and we have therefore decided this year to publish an Interim Sustainability Report to inform our stakeholders of our progress part way through the target period. Although the final deadline is still some way off, I am pleased to say that we are well on the way to achieving many of our targets. For more details on our key achievements, as well as lessons learnt in 2007, please visit our Highlights and Lessons Learnt.

Looking forward, there is still more work to do and we face a number of challenges, including:

• Further developing and strengthening our environmental performance data monitoring, management and reporting processes, which is a major task for a portfolio the size of PRUPIM’s.
• Rolling out our approach to sustainability worldwide, and achieving consistency in the standards we achieve across approximately 1,000 property assets, and 6,000 property occupiers globally.
• Preparing for significant changes in the legislative framework as Energy Performance Certificates now enter the market and we prepare for Carbon Reduction Commitments which will potentially subject our portfolio to cap and trade systems of carbon accounting.

To plan our response to these, and several other future challenges, we have organised for our Leadership Forum (made up of senior managers of PRUPIM’s principal business functions) to participate in a ‘Futures’ focused workshop facilitated by Forum for the Future. The purpose of this will be to engage our senior management team in the consideration of medium to long-term sustainability trends, and consider how these might affect our operational and strategic decision-making. Drawing from this exercise, we also intend to review which sustainability issues are most material to our business (i.e. have an ability to impact on our financial bottom line) and to refocus our sustainability strategy in 2009 and beyond around a smaller number of business-critical issues.

We are resolute in our ambition to exploit the opportunities offered by more sustainable business practices – including the exploration of new markets, development of new products, and enhancing innovation and brand value.

We hope you will find this Interim update to be of interest. As always, we particularly value your input to our sustainability efforts and would encourage you to give feedback on any aspect of our work including this report. Please email at sustainability@prupim.com or call us on 020 7548 6866.

Martin Moore
Managing Director, PRUPIM