Chief Executive’s Introduction

Shaftesbury is a property investment group with a defined focus in Central London – all its properties are within London’s West End concentrated in the areas of Carnaby, Covent Garden and Chinatown.

Shaftesbury has a very specific investment strategy.

With enterprising management, Shaftesbury aims to foster and develop a special character of villages in Carnaby, Berwick Street, Seven Dials, Covent Garden, Chinatown as well as the joint venture which includes St Martin’s Courtyard. Shaftesbury believes that by promoting exciting and dynamic environments for its tenants, it will create sustained out-performance of income and capital values.

Shaftesbury’s activities are divided into core areas of acquisition, refurbishment and property management. The properties are within Conservation areas and a number of the buildings are also listed of architectural and historic interest. Within the constraints of Listed Building and Conservation Area legislation, Shaftesbury refurbishes and manages properties to meet the needs of existing and prospective tenants but retains the existing character and features of the buildings.

Throughout its activities, Shaftesbury is committed to sustainability and by the re-use and careful management of existing buildings, it supports Government and local policies for sustainable development.

This Statement of Policy is disseminated to all the Group’s staff, managing agents, project managers, contractors and tenants and is available to the public and other interested parties, on the Group’s website.

The Policy is reviewed on an annual basis by the Board and forms the framework for updating objectives and targets during 2009 - 2010 against which the Group will monitor and report publicly on its performance at the financial year-end.

The Board of Shaftesbury PLC has approved the Policy and the Chief Executive is responsible for overseeing the implementation of the Policy throughout the Group’s operations.

Jonathan S. Lane
Chief Executive Shaftesbury PLC

July 2009

Environmental Responsibility

Background

 The majority of Shaftesbury’s properties are within Conservation Areas and a number of the buildings are also ‘listed’ as being of architectural and historic interest. Shaftesbury rarely constructs new buildings. Within often strict constraints of Listed Building and Conservation Area legislation, Shaftesbury aims to repair, restore and reconfigure its properties to a state of good repair, improving their environmental sustainability whilst meeting the needs of occupiers.

This emphasis on restoration and repair is environmentally significant in itself. Shaftesbury extends the life of existing buildings, giving them a much longer life than that expected of most modern structures. This is an environmental benefit and in line with Government policy for maximising the re-use of existing development land and minimising the use of resources and in addition, saving the carbon emissions required in the construction process of new buildings.

As the average size of the Group’s properties is only about 350 square metres and the majority of properties are multi-let, Shaftesbury does not usually install air conditioning. When considering installation of temperature control measures, environmental considerations are fully reviewed as part of the design process.

Shaftesbury’s environmental strategy is to strive to minimise any adverse environmental impact of its operations and operate in an environmentally sustainable manner. In order to demonstrate this commitment and implement any necessary measures, the Group has set itself the following overall environmental objectives within its Policy:

 To operate in an environmentally sustainable manner throughout its activities;
 To address the implications of its activities on climate change through reducing energy use throughout its portfolio;
 To minimise any adverse impacts on the environment throughout its operations;
 To comply with all relevant legal and regulatory requirements and to go beyond compliance where feasible;
 To encourage continual improvement of its environmental performance;
 To provide a framework for establishing specific objectives and targets;
 To promote staff and principal supplier environmental awareness and provide appropriate training where necessary;
 To engage with its stakeholders to ensure that Shaftesbury is responsive to their expectations.

These overall objectives are to be achieved through the specific policy goals outlined below:

Purchase of Properties

Shaftesbury recognises the potential for ‘buying in’ environmental risks through its property acquisitions and therefore will ensure that:

 Prior to acquisition of a property, a review is conducted to identify past uses of the site and the potential for ground contamination as well as the presence of hazardous materials.
 Consideration is given to risks from climate change, flooding, rising water tables and localised flooding that might apply to the property. However, it is recognised that within central London most of the mitigation or control is at a government or local authority level.

 Positive opportunities are identified for achieving environmental improvements in the operation of the building through the refurbishment process.

Management of Properties

Shaftesbury requires its managing agents to comply with its Corporate Responsibility Policy and in particular to actively do the following:

 Monitor and, where possible, reduce energy consumption and investigate opportunities for the use of renewable energy;
 Monitor and, where possible, minimise water consumption;
 Monitor and reduce waste from its managed properties;
 Ensure that contractors (including cleaners, maintenance personnel etc) comply with the Group Policy with respect to the use of hazardous materials and materials from non-renewable resources;
 Consider management and maintenance of planting and landscape, if appropriate;
 Remove and dispose of hazardous materials (e.g. asbestos, lead piping) in accordance with relevant regulations via specialist contractors.

Refurbishment and Construction Projects

Shaftesbury requires its contractors, as supervised by its consultants, to adopt ‘best environmental practice’ in the design and refurbishment of the Group’s property portfolio. It requires its design consultants, within the constraints of any Listed Building restrictions, to adhere to the following:

 Investigate opportunities for the use of on-site renewables;
 Efficient use of energy and water;
 Avoidance of materials hazardous to health;
 Careful choice of building materials to minimise adverse impacts on the environment. Timber, in particular, will be sourced, where possible, from well managed sources certified by third-party certification bodies accredited by the Forest Stewardship Council and illegal timber will not knowingly be sourced;
 Reuse of existing materials, including timber, will be maximised;
 Identify opportunities for enhancing biodiversity through the use of appropriate measures such as the inclusion of bird boxes and green roofs;
 Minimise the increased risk of runoff resulting from the development through the use of appropriate sustainable urban drainage systems;
 Minimising waste through design and specification of materials.

During the construction process the Group through its project managers will endeavour to minimise adverse impacts on the environment and will be considerate to occupiers of neighbouring property and local communities with regard to the following:

 The transport, delivery and storage of materials;
 Noise and vibration during construction works;
 Dust control and exhaust emissions;
 Site access and cleanliness;
 Discharge and use of water;
 Avoiding use of hazardous materials
 Management and disposal of construction waste.

For projects of a capital value over £75,000, Shaftesbury will formalise the above objectives by signing up to the Considerate Constructor’s Scheme with the relevant local authority.

Social Responsibility