Implementation

We manage environmental and societal issues interdependently. This provides a coherent, coordinated and convenient matrix for appraising our values, policies, strategies and practices. It helps us assess how we are performing. It highlights where we need to align our approach. It shows us where we need to give extra support. In time, it will deliver our commitment through measurable improvements. And it will progressively allow our achievements to be benchmarked against other industries and other companies in the power sector. It will also enable us to report accurately and openly to all audiences. Such increased transparency will, in turn, increase stakeholder confidence in everything that we do.

International Power plc has established a systematic dual process for setting environmental and health & safety targets. Targets are set at an asset level (bottom-up) via local business plans and management systems, whilst other more generic targets are set at a corporate level (top-down). This dual approach encourages consistency throughout the Company from a corporate level whilst allowing specific local targets to be set which may not be applicable to other sites or regions. This cohesive method allows us to maintain a range of targets aimed at optimal performance. Some targets will continue and will be expanded year-on-year as part of a dynamic improvement programme. New performance targets are also added each year, as it becomes possible to exceed earlier achievements.

The annual Business in the Community Corporate Responsibility Index results were published in the Financial Times on 10 June 2009. The index is major benchmark for corporate responsibility in the UK and International Power were pleased to receive a silver ranking (2007: silver). This represents substantive recognition of our corporate commitment to managing environmental and societal issues. For more information, please see the BITC website.

In addition to our BITC ratings, we achieved entry into the FTSE4GOOD index in 2004. The selection criteria for this prestigious index include environmental sustainability, stakeholder relationships and upholding and supporting universal human rights. We continue to be included within the FTSE4GOOD index, which identifies companies that meet globally recognised corporate responsibility standards.

For several years our management of health, safety, environment, community and employee issues have been included in our internal audit programmes, where all findings are assessed carefully and acted upon.

Our Health, Safety and Environment Committee (HSE) acts as the global forum in which we can discuss and coordinate governance issues. The Committee meets every quarter and is attended by all our assets and corporate departments representing environment, health, safety and community. It is chaired by our Director of Operations & Engineering.

These meetings are regularly attended by board members and relevant issues are reported, via a quarterly briefing through our CEO, at board meetings.

In addition to monitoring performance, the HSE Committee identifies and shares best practice, and encourages employees to learn from the experience of their colleagues around the world.

All of our power stations, wherever they are in the world, have formal HSE management systems, operating to internationally recognised standards. These systems ensure that we not only operate in line with official regulations and International Power plc policies, but that we improve our performance continuously.

In order that our performance is developed and maintained to the highest levels we encourage our power stations to implement management systems which are certified to rigorous, internationally recognised standards.