Chairman's Introduction

It is now more important than ever that we respond to the effects of climate change. The Stern Review of the Economics of Climate Change has highlighted the speed with which carbon related risks and opportunities, for business generally and for people, are intensifying.

Rapid action needs to be taken otherwise ignoring climate change will eventually damage economic growth. However, Stern has highlighted that we do have the opportunity to decouple growth from greenhouse gas emissions. We believe Countryside Properties is well positioned to meet these challenges.

There is no doubt whatsoever about the importance of sustainability in everything we do. At present, not enough is being done to tackle climate change and the development industry is no exception. However, there is an increasingly strong movement for change driven by Government with widespread take-up across the country. As a leader in sustainable development we recognise that innovative, responsible development creates added value and is fundamental to our future.

In late 2006, the Government introduced a step-change in policy, and the delivery of new and sustainable communities, culminating in a target to move towards zero carbon housing within 10 years. It is proposed that this will be driven through enhancements to the Building Regulations and planning policy, aligned to the new Code for Sustainable Homes which, from 2007, should encourage higher environmental standards, and boost demand for more environmentally friendly technologies and construction methods.

The Government’s response to the Barker Review of Land Use Planning is awaited with great interest as the recommendations would, if implemented, considerably improve the planning process. This would in turn greatly assist the development process and benefit the wider economy.

Throughout our industry we must adapt to meet the changes that are now demanded in response to the sustainability agenda. Substantial new development will of course be required throughout the UK to meet the unquestionable demand, but we must deliver development that is socially, economically and environmentally sustainable and which improves people’s quality of life.

Increasingly, there are more new developments where sustainable, high quality built environments are being created and I am proud of our excellent record in this area. Countryside Properties is recognised as an innovative, responsible developer, fully committed to implementing the principles of sustainable development. We masterplan, design and build to enable new and regenerated communities to be truly sustainable.

Our five year review highlights the significant progress we have made since we first reported on our ESE performance in 2001. With the ever increasing importance of sustainability comes a new set of risks and rewards for responsible developers. With the Group’s track record and skills we believe we are well placed to meet the challenge of sustainability and the significant opportunities that exist for developers with the appropriate abilities.

This ESE Report describes our progress against each of the actions and targets that we have set. It also gives details of our ESE policies and highlights our commitment to urban regeneration and the creation of sustainable communities with a number of case studies.

Alan Cherry CBE DL
Chairman
31st January 2007