Environmental Management

We have continued to pursue programmes and targets in the areas where the Company has the most potential to affect the environment.

We are especially pleased that every one of our print sites has now achieved certification to the international standard ISO 14001 for environmental management systems, exceeding the target that we set for 2009. A particular benefit is that all our manufacturing sites are now regularly audited by external specialists and this provides greater assurance that environmental controls meet best practice.

Energy and carbon management continued to have a high priority during 2009 and further reductions in electricity and associated carbon emissions have been achieved. A strategy for meeting the new legal requirements of the CRC Energy Efficiency Scheme has been developed and this will be a focus for activity during 2010.

During the coming year an evidence pack of carbon reductions will be compiled which will be audited in 2011 allowing the renewal of our existing Carbon Trust Standard accreditation in 2011.

No breaches of environmental legislation were reported in 2009.

Our efforts to implement environmental policy commitments, through the achievement of defined annual targets, have yielded real benefits over the past five years. But it is now timely to review the policy to ensure that it remains aligned with developments in legislation, the expectations of stakeholders and the needs of the business.

During 2010, we will therefore undertake a risk-based review of environmental and other sustainability issues, with a view to developing a new and comprehensive sustainability policy for the Company.

Further information and data relating to our main areas ofenvironmental impact are reported below.

The Environmental Steering Group, reporting to the Executive Committee via the Secretary and Group Legal Director, continued to meet in 2009. The Steering Group has a remit to ensure that the Group's environmental programme remains aligned with all relevant issues and developments. In addition to the initiatives on environmental management systems and climate change, we have continued to pursue targets in specific areas where the Group has the potential to affect the environment, notably paper sourcing, sustainable forestry, waste management and recycling, volatile organic compound emissions from print works and the purchase of contracted printing and product distribution services.

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