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The Group believes it has a significant role to play in combating environmental degradation. It strives to continuously improve the environmental sustainability of its investments through its Environmental Policy which states that, as a minimum, the Group and its businesses will:

• Comply with all relevant environmental legislation and regulations;
• Ientify and measure the most significant environmental impacts;
• Set targets to improve environmental performance in these areas;
• Include environmental criteria when choosing services and goods to purchase and communicate objectives to its suppliers; and
• Communicate the policy, targets and environmental activities to all staff and interested parties.

All the Group's operational areas are expected to identify their own environmental impact, in areas such as the use of energy, water and other natural resources and the production and disposal of waste, and to develop appropriate responses.

The Mall takes part in the annual Upstream Sustainability Benchmarking survey which enables assessment of environmental performance on a property-by-property basis. The 2009 survey will be published in May 2010 and it is anticipated that the results will show an improvement in performance for the fifth consecutive year.

Carbon Management Plans have been written for all three Xscape properties in line with the 2009 priority of focussing on reducing carbon output.

2009 Highlights

• At Xscape Castleford there has been a focus on reducing electricity consumption. Lighting has been replaced with energy efficient bulbs and unnecessary or faulty lighting has been removed. In addition, there was a total shutdown of the gas supply to the site during the summer which had no detrimental effect on customer experience.
• At Xscape Milton Keynes the heating has been turned off during peak demand times in line with Triad warnings highlighted by our energy brokers.
• All The Mall shopping centres have continued the EnviroMall initiative, designed to take a lead in the environmental management of covered shopping centres in the UK.
• Environmental Data for The Mall for 2009 shows achievement against targets in the areas of energy, gas and waste as follows:

• Over the last ten years The Mall has made over £2.6 million in energy savings which represents enough energy to run 25 shopping centres for a year.
• In the Maastricht University European Real Estate Survey on Environmental Management 2010 The Mall won first place in the European Private Fund category.
• EnviroMall week was held in August 2009. The Mall collected 211,074 hangers and recycled them through a national agreement with Shanks.
• At SNO!zone a 7% drop in energy use on the snow side and an 11% drop in the warm side (bars, changing areas, offices etc.) of the operation has been achieved in 2009.

2010 Priorities

• To monitor and focus on reducing carbon output across all of the Group's operations.
• For SNO!zone, to consider further economical use of building management systems and to reduce energy consumption by a further 5%.
• Across the Malls, to deliver the objectives as per the Environmental Impact Improvement Plan. These include reducing energy use by 5%, water use by 5% and recycling 65% of waste.
• Across the Malls, to automate environmental data collection for electricity, gas and water usage, to prepare the business for compliance with the carbon reduction commitment regulations and to retain the Carbon Trust standard.
• Via the MallClean initiative, to maintain high standards of cleaning and average monthly brand standard performance measurement scores of at least 92% whilst re-engineering the contract commercial package to create efficiencies and savings.