Advisor's Statement

Upstream has been commissioned by PRUPIM to provide a third party assurance of the company’s progress against sustainability targets for 2006. Upstream has been advising PRUPIM on strategic sustainability for just under two years. We have not, however, been involved in the delivery of any of the company’s sustainability targets, nor do we have any other contracts with PRUPIM that could compromise our impartiality.

Scope and Methodology

The purpose of this statement is to provide PRUPIM and its stakeholders with a third party assessment of the company’s progress against sustainability targets for 2006. It is not intended as a wider assurance or independent verification of PRUPIM’s approach to sustainability, nor is it an assurance of the contents of this report.

A team of one Upstream Director and one Upstream consultant evaluated achievement against 22 sustainability targets based upon:

• Documented evidence from the period 1 January 2006 to 31 December 2006. This evidence included emails and other communications, and management reports – all demonstrating the extent to which actions undertaken by the company helped to deliver sustainability targets during the period under assessment.
• Conversations with the PRUPIM sustainability team. Upstream used these conversations to investigate the evidence provided and raise queries where further clarification in evidence was required.

Summary of Findings and Opinion

Upstream’s assessment arrived at the following headline conclusions:

• Overall, 41% of sustainability targets for 2006 were achieved at 100%, increasing to 50% when including targets achieved at or above 75%. Of these, the following sustainability impact areas achieved 100% progress for all targets: Investment, Our People, Our Communities.
• 18% of targets were not progressed at all.
• 9% of targets were deemed not applicable at the time of assessment, for various reasons.

 
Overall, PRUPIM shows strong performance against its targets for particular areas of sustainability. In particular, aspects such as community and investment show that on the ground good practice is in evidence. However, from a strategic perspective, communication and accountability remain key barriers to delivering enhanced progress against targets. Indeed, considerable work is needed at all levels of the organisation so that employees increasingly realise the role they play in delivering on PRUPIM’s sustainability agenda. To this end, PRUPIM has signalled to Upstream its intention to increase accountability for delivering against targets - throughout the business rather than amongst a small number of individuals. This is also reflected in the company’s strategic shift in focus, from CR to sustainability. Upstream looks forward to seeing how PRUPIM manages this transition and the resultant effect this will have on accountability and sustainability performance.

A full copy of Upstream’s assessment of progress against targets is provided here.

Julie Hirigoyen
Joint Managing Director, Upstream
Jonny McCaig
Consultant, Upstream
 

London, United Kingdom
July 2007