Climate Change Policy

Marshalls Climate Change Policy Statement

This policy is implemented in accordance with the requirements of the Group Environmental Policy.

Marshalls accepts that its operations contribute to man made Climate Change, as detailed by the Intergovernmental Panel on Climate Change (IPCC). It also accepts that Climate Change is having an effect, and will increasingly have an effect, on its business, operations, and the communities it operates in.

Although it is not currently covered by any legislation to cap or reduce its emissions, Marshalls will set an annual target for the reduction of Green House Gas (GHG) emissions. Marshalls expects legislation to cap its GHG emissions in the near future, and it supports proactive action towards this.

Marshalls will set a long term GHG emissions reduction target to be achieved by 2050, in line with recommendations made by the IPCC. Marshalls will use a 2005 baseline for this target.

All targets will be reviewed on at least an annual basis to ensure continual improvement.

Marshalls will publish its annual absolute GHG emissions figure in its Group Annual Report. The emissions will be calculated using the GHG protocol, using scope 1 and 2. Marshalls aims to have these emissions externally verified by the end of 2009, continuing annually thereafter. Marshalls intends to measure annually the GHG emissions due to its supply chain by 2009. These emissions will be calculated using the GHG protocol, using scope 3.

Marshalls intends to make publicly available, via the Building Research Establishment Environmental Assessment Method EcoPoints methodology, the generic impact for each family of products on the environment. This includes lifetime GHG emissions, which will be published separately.

Marshalls will continue to raise energy awareness within the Group through the development and training of its employees and will communicate openly and consult with customers, suppliers and other stakeholders on relevant matters.

Marshalls intends to review all major projects for their effect on energy consumption and GHG emissions and, where technically, practically and financially viable, improvements will be made. The use of Renewable and sustainable technologies will be specifically considered. In all cases, Marshalls aims to use the cleanest energy source that is cost effective.

For building, the BREEAM ‘Very Good' rating will be taken as a minimum standard, and the Group intends to surpass this where viable.

Marshalls aims to make energy efficiency a consideration in its procurement.

Graham Holden

Chief Executive

March 2007