TRAINING AND AWARENESS

Northern Rock has recognised the importance of controlling and addressing Environmental and Corporate Social Responsibility (CSR) issues within the Company. The Board of Northern Rock has given commitment to senior level support for the promotion of awareness, education and control in these areas.

In July 2000 a full briefing session was held with Executive Management, highlighting the importance of good environmental management and awareness within the Company.

To take into account the growing importance of such issues to the Company a multi-disciplinary Environmental, Social, and Ethical Management Review Group, drawn from Executive and Senior Management was established in 2001. This replaced the Environmental Management Group that was previously in existence.

The Groups aims include checking compliance and best practice in each of the Northern Rock CSR Policy impact areas, to review progress and achievement, take appropriate remedial action if necessary and produce further implementation and progress plans.

The progress of the dedicated groups is reported via the Deputy Chief Executive, David Baker, on a quarterly basis to the Management Board. On a half-yearly basis (or as deemed necessary) a formal joint meeting of the steering groups will be held.

Significant or relevant information will be included in a quarterly update to the Northern Rock Community Report web-site.

Policy and Procedures

Environmental Policy, Procedures and Instructions are in the Corporate procedures Manual (TROVE) held on individual PC's and accessible to all staff.

Union Support

Northern Rock has obtained the involvement and support of Amicus (the principal staff trade union) to the Company's environmental programme.

Job Descriptions and Staff Performance Appraisal System Reflect Corporate Environmental Responsibilities.

All job descriptions for staff in the branch network incorporate responsibility for compliance with corporate environmental objectives. All Head Office staff job descriptions have been updated to reflect corporate environmental activities.

Green Representatives

Over 150 Green Representatives have been appointed in all our main Head Office and remote sites, supported by sub-representatives where necessary. Checklists monitoring compliance with procedures and highlighting areas for further development are completed on a weekly or monthly basis by the Green Representatives and are forwarded to the Corporate Social Responsibility Department for action. This effectively means that every site and major department has a direct link into the Company's environmental performance.

During 2005 changes in Head Office as a result of the development expansion, required that some Representatives needed to be replaced. The Company took the opportunity to provide further environmental training and the first of the sessions took place in December to over 20 staff. Further sessions will be held in 2006.

The sessions included interactive training by The Energy Savings Trust on domestic and business energy efficiency, how this relates to climate change and the results of global warming on climate change. North East Recycling provided a presentation on what happens with the waste staff collect on site for recycling as part of our waste management programme and how good practice should be regularly communicated to staff.

Focus Group Meetings

The size and development of the Head Office site requires greater demand for proactive and reactive management of environmental issues. Quarterly Focus meetings are held with Head Office Green Representatives, during which progress against environmental objectives and targets are discussed and how their individual department staff can contribute to the achievement of the objective. The meetings have been a useful opportunity to keep our Representatives abreast of current and new information, to help them in their roles and provide a mechanism for the sharing of good practice and ideas.

Departmental Performance Targets

For analysis purposes, when necessary, comprehensive data is gathered by weighing departmental waste as it leaves operational areas which is then related to growth within the specific area.

With the agreement and support of Executive Management all Senior Management and Green Representatives have been advised that environmental performance targeting will continue to be effected as necessary within the Company.

Environmental Incentive Schemes

The Company recognises the additional commitment given by some staff in achieving corporate performance targets. There is currently a scheme in operation for staff to receive incentive payments for outstanding corporate environmental contributions.

Green Representatives have the opportunity to receive a recognition award of £100 each month in Head Office and Remote Sites.

Staff Communications

Regular staff communications are published in our internal business magazine every two months and in weekly newsletters when necessary. In addition, PowerPoint presentations are e mailed to specific staff should new Legislation or Guidance be introduced.

An environmental message is displayed on all Head Office PC's, requesting that all equipment and lights are switched off prior to leaving an operational area.

Where is it has not been possible for remote site representatives to be trained individually, awareness and briefing presentations have been provided and these representatives are now also included in the formal recognition scheme.

Close contact has been maintained with the Environment Agency to ensure that the Company adopts "Best Practice" in non-legislated areas and the results of the enquiries are currently either under review or being implemented.

Special and Hazardous Waste

Special and Hazardous waste training presentations are issued to relevant departments for cascade training and awareness. The training highlights current issues and those that are currently under active review in the European Parliament.

The environmental management feature included in every issue of our in-house business magazine for staff has been replaced with a CSR article from 2004.

© Northern Rock plc. 2008