Performance Against CSR Targets 2008

1

Continue to monitor the performance of our FTSE 350 shareholdings in line with our commitment to the ABI’s Environmental, Social and Governmental Policy (ESG). Depending upon the issues that arise during the year, we expect to engage at similar levels to 2006 and 2007 (28 and 30 respectively).

Achieved

1

In 2008 LGIM engaged with the Boards of 133 companies on Governance and a futher 25 on environmental and social issues in 27 meetings.

2

Engage with Legal & General’s retail customers to listen to their concerns on ESG issues and feed these into our ongoing corporate governance discussions with FTSE companies and their boards.

Revised

2

Mid 2008 we decided to revise this target. During tougher economic conditions we decided to work with Business in the Community to signal to the market that ESG Issues are still important to disclose to generate shareholder value. To see BITC's research, click here

3

Extend the reach of our ethical products with our newest strategic partner, Nationwide Building Society, to enable more consumers to access these investments.

Achieved

3

In 2008 Nationwide customers brought £28.9m of Ethical Products as part of this new strategic partnership with Legal & General.

4

Liaise with King Sturge International LLP to ensure key investment properties continue to improve using ISO 14001 as the benchmark.

Achieved

4

Reviewed quarterly and verified internally.

5

Commit to a three year plan with King Sturge International LLP to achieve ISO 14001 across all the service charge properties.

Achieved

5

Three year plan in place. 25 properties verified to ISO14001 standards in 2008.

6

Achieve ISO 14001 accreditation in Q1 2008 for a further three investment properties, bringing us to a total of six properties (2 assets sold in 08 from six to four but added to the new work brings our figures up to 26 properties.

Achieved

6

Completed and verified by SGS.

7

Extend 2006 programme of engagement with key suppliers to manage the social, ethical and environment issues associated with our purchase of goods and services during the period 2007-09.

Achieved

7

We undertook direct engagement with 76% of all key suppliers in 2008. The effectiveness of this engagement is demonstrated by a record number of entries for the Supplier MAD awards. Key suppliers were advised of our carbon management strategy and invited to attend the Carbon Masterclass in November 2008.

8

Reduce the business mileage of 1.88 business miles driven per active policy and the average of 1,360 business miles driven per employee.

Achieved

8

In 2007 L&G staff drove 11.9m business miles. In 2008 L&G staff drove 10.7m miles which is 11 % down. This is equivalent to 1,306 miles per employee and 1.44 miles per Policy. A new car sharing rate paying 5p more per mile for employees who car share has led to a further 181,000 miles being saved.

9

Ensure that compliance by key suppliers with the environmental requirements of the Group Purchasing Policy is maintained at 80% during the period 2008-10.

Achieved

9

96% of Environmental Key Suppliers met the environmental requirements of the Group Purchasing Policy as at the end of 2008.

10

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

Achieved

10

40% of the total 2,249 Tonnes of paper procured in Total in 2008 was recycled.

11

Implement driver training and assessment programme.

Not Achieved

11

Further development of policy required in 2009 to tighten controls, additional testing of assessment program to be completed before training can be delivered.

12

Extend the certification of our Health and Safety Management System to one more occupied property.

Achieved

12

In December our OHSAS 18001 management system was externally audited. Following the audit the scope of the management system has been extended to include the Cardiff office and has also been certified to the OHSAS 18001 2007 standard.

13

Integrate and report on our commitments and progress as a founding member of the ABI’s Climate Wise Programme. See our commitment at www.climatewise.org.uk.

Achieved

13

We reported our progress against the ABI’s Climatewise programme here – In September 2008.

14

Reduce our carbon dioxide emissions to 1.5 tonnes per Full-Time Equivalent (FTE)

Not Achieved

14

Our occupied properties required a 9% reduction in carbon over 2007 and 2008 (this is based on previous DEFRA conversion rates). Single figure reductions have been achieved at the majority of our offices but this was offset by the addition of One Coleman Street (our previous London offices were landlord controlled). Moves in Hove and London and along with the acquisition of premises in Swindon, have put this target (as set in 2005) out of our reach and our Direct Occupied offices emissions are 34% higher than we had anticipated. Using 2008 as our baseline (based on a stable stock of offices), we have set a target to reduce our emissions in line with UK government expectations.

15

Redevelop the Institute of Leadership and Management (ILM) qualification to give managers a broader-based qualification with greater external recognition.

Achieved

15

A new Management Development Programme is being delivered in the UK business. The objective is to improve managers skills in engaging their staff and delivering a higher performance culture across the organisation. An early element of this is the role that CSR plays in being an effective manager.

16

Commit at least 100 working days in each major location to community projects (Cardiff/Birmingham/Hove/London/Kingswood).

Achieved

16

In Total our staff contributed 866 Days to their communities across our locations on a variety of community projects.

17

Increase Give As You Earn employee participation to 15%.

Not Achieved

17

13.6% of our staff regularly Give as they Earn. We increased the amount of employee contribution that is matched by L&G from £20 to £25 per month to recognise the difficult economic climate for charities in 2008. This represents a total employee and Company contribution of £5 98,000 in 2008 versus £557,229 in 2007. An increase of 7%. Early 2009 has seen the inclusion of Suffolk Life in our GAYE Scheme which will increase participation.

18

Increase Matched Funding use by our employees to 10%.

Achieved

18

In 2008 10% of staff took advantage of the Matched Funding scheme up from 7.5% participation in 2007. This represents an £814,492 donation into the Third Sector in 2008.

19

Launch two Major Groupwide charitable giving initiatives.

Achieved

19

Our new Third Sector Investment policy was launched in August 2008. This has resulted in new partnerships, in particular with A4e and Mend. Details of these relationships can be found in the Risk and Savings Business updates.