Targets: How did we do?

Socially Responsible Investment (SRI)

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Engage with at least 25 companies specifically on CSR issues

Achieved:
In 2007 Legal & General Investment Management engaged with 29 companies in line with their Environmental Social Governance policy (ESG). See SRI Section for example engagements

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Achieve ISO 14001 accreditation for three additional properties managed by Legal & General Property (LGP)

In progress:
Following Legal & General Property’s decision to outsource its property management function in May to King Sturge International LLP. This is now a key objective for 2008

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Achieve ISO 14001 accreditation for purchasing in accordance with high risk FTSE4Good criteria (waste, water, pest control), in line with Group Corporate Procurement

In progress:
Following Legal & General Property’s decision to outsource its property management function in May to King Sturge International LLP. This is now a key objective for 2008

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Maintain Environmental Management Systems across key properties, covering energy, water and waste to landfill

In progress:
Following Legal & General Property’s decision to outsource its property management function in May to King Sturge International LLP. This is now a key objective for 2008

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Review recycling provisions at a mixed portfolio (retail, offices and industrial) of eight investment properties, liaise with occupiers to achieve a 5% reduction compared to 2005 in waste going to landfill

Achieved:
A 16% improvement in industrial cardboard salvaged and sent for recycling between June 2006 and June 2007

Customers

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Monitor trends in consumers’ attitudes to CSR in order to ensure that Legal & General understands what customers expect of the companies they deal with, and how we’re performing against these expectations

Achieved:
Results of the IPSOS MORI/GUSTO research with consumers and clients can be seen in the Customer Section of this Report

This will be done by:

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(a) participating in the syndicated IPSOS MORI CSR survey annually

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(b) undertaking Legal & General specific research every three years

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Develop a series of customer satisfaction measures in the form of a ‘Customer Dashboard’, aimed at indicating how customers rate their experience of dealing with Legal & General

Achieved:
Dashboard developed and used within Legal & General. In summer 2008, Legal & General will publish its Customer Experience Report in line with our membership of the ABI’s Customer Impact Scheme

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Communicate Legal & General’s CSR strategy and activities to customers

Achieved:
The CSR Report forms the key way we communicate with our customers on our CSR activities. In 2008 we will be looking at new ways to engage our customers on CSR in line with the MORI and Gusto research findings

Employee Relations

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Increase employee satisfaction to 70%

Achieved:
Overall employee satisfaction increased to 75%. Overall, the results of the 2007 employee survey were very positive

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Increase awareness of equality and diversity issues, via training for managers (by means of both computer-based training and a module in the Institute of Leadership and Management course)

Achieved:
Details of our Equality and Diversity training roll-out appear in our Employee section of this Report

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Review terms and conditions of first-level management employees in consultation with Unite

Achieved:
Review completed and amendments implemented and agreed with Unite

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Agree with line managers the capabilities they require in order to manage their people effectively

Ongoing:
The roll-out of capabilities continues

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Reinforce commitment to partnership working during our ten year anniversary of Partnership with Unite by providing training for union representatives and setting up forums between the business, HR and Unite

Ongoing:
A training programme for Unite (formerly Amicus) reps has been developed. However, formal forums between the business, HR and Unite have not been set up. We will review this with Unite in 2008

Health and Safety

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Achieve full accreditation of our safety management system and extend its scope

Ongoing:
Health and Safety Management Systems have been implemented at our Kingswood site. External certification for OHSAS 18001 performed February 2008

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Review and implement our work related road risk policy

Ongoing:
Road risk policy and framework for implementation agreed in 2007. Driver training and assessment programme to be completed in 2008 (See 2008 targets)

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Implement an ‘on-line’ reporting system for ‘near misses’ and accidents

Achieved:
The revised reporting form for accidents, incidents and near misses is available to our staff via the Health and Safety Intranet site

Supply Chain

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Extend 2006 programme of engagement with key suppliers to manage social and ethical issues associated with our purchase of goods and services during the period 2007-9

Achieved:
Our formal programme of engagement, focused upon employee relations and legality to work. We engaged with a number of security companies in 2007 and met with suppliers of cleaning and catering services

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Promote Legal & General’s CSR standards to key suppliers to influence their social and ethical performance and support improvements throughout our supply chains

Achieved:
Our CSR standards were published on our website from February 2007. Our Purchasing Director promoted the standards to over 50 key suppliers in 2007 and invited engagement on CSR issues

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Consider extending Environmental Management System certification to ISO 14001: 2004 throughout Legal & General’s purchasing centres during the period 2007-9

On target:
We secured the accreditation to ISO 14001 standard for the activities of our General Insurance and IT Procurement centres. Over 80% of Legal & General’s environmental key suppliers are subject to ISO 14001 certification

Environment –

reduction of environmental impact associated with our purchase of goods and services

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(a) Ensure that compliance by key suppliers with the environmental requirements of the Group Purchasing Policy is maintained at 80% during the period 2005-7

Achieved:
93% compliance by key suppliers was realised in 2007

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(b) Review procurement specifications for the environmental impact for key bought in goods and services – 80% of key contracts to be reviewed in period 2005-7

Achieved:
Environmental specifications were developed for 18 high-risk commodities including our paper, furniture and desktop IT purchases

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(c) Purchase paper with a recycled content of 40% (by tonnage) by end of 2009

On target:
Our purchase of recycled paper in 2007 constituted 39% of the total tonnage used

Environment –

reduction of carbon dioxide emissions per employee over the medium term

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(a) Reduce our carbon dioxide emissions to 1.5 tonnes per Full-Time Equivalent (FTE) by end of 2008

Ongoing:
a) CO₂ from our occupied properties stands at 1.68 tonnes of CO₂ per employee

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(b) Reduce the average carbon dioxide rating of the core Company car fleet from 175 to 160 grams/km during the period 2005-7

Did not achieve:
b) Since 2005 we have secured a consistent reduction in average rating of the core fleet from 175gms/km to 163gms/km

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(c) Send less than 80kg of waste to landfill per FTE by end of 2007

Achieved:
c) 72.3kg of waste to landfill per FTE

Community Involvement

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Roll out employee volunteering policy to all main offices

Did not achieve:
The employee volunteering policy was piloted in Hove in 2007. This is still to be formally approved. Ad hoc volunteering continues to be the main effort supported in Legal & General rather than through formal volunteering programmes

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Increase the percentage of employees receiving a grant from our sponsorship matching scheme to 7%

Achieved:
We are pleased that 7.5% of our employees took advantage of our sponsorship matching scheme in 2007