The Chairman's Statement

The Royal Bank of Scotland Group is Europe’s second largest banking Group with a leading position in the UK in corporate, retail, private, offshore and supermarket banking and in direct motor insurance. We are also one of the world’s largest banks.

We are committed to establishing common operating principles throughout the Group, and our Environmental Policy is no exception. This presents a framework which allows our businesses to conduct their operations responsibly and perform to the highest standards of good corporate citizenship.

Within The Royal Bank of Scotland Group I take overall responsibility for our environmental performance on behalf of the Board. Mark Fisher, Chief Executive, Manufacturing takes the lead operationally.

As a financial services group we impact on the environment in two ways – through our own operations and through our core business, the lending of money to customers. A robust environmental management system has been developed to oversee our internal operations, and environmental considerations are an important part of our decision making process when lending to customers.

We appreciate that this is an issue of growing importance for our shareholders, customers, staff and suppliers, and that there can be no room for complacency. In November 2001 we appointed Dr Jim Currie, former Director General at the European Commission with responsibility for their Environmental Policy, as a non-executive Director. This will add further strength and depth to our governance of this important aspect of corporate social responsibility.

I look forward to reporting on our continued progress in this critical area.

Sir George Mathewson
Chairman, The Royal Bank of Scotland Group