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Barratt Corporate Responsibility Update 2007

Verification Statement

This statement has been prepared following review and verification of Corporate Responsibility questionnaire data submitted by operating divisions for the last reporting period July 2006 to June 2007. I have previously verified the data and claims published in the full Barratt CR Reports issued for the 2005 and 2006 reporting periods.

Due to the level of activity and resource involved in the acquisition, restructure and integration of Wilson Bowden into the organisation, a full CR publication has not been possible for this last period, so the verification just covers data gathered for compilation of the key performance indicators.

The CR strategy is currently under review with the objective of publishing a full report for the 2007 – 2008 period.

Data published supports the following strategic objectives:

• Governance and Management Systems
• Stakeholders and Community
• Creating Value for Society
• Managing Environmental Impacts
• Occupational Health & Safety
• Employment and Diversity

The only omission noted following on from the previous CR report is in the area of Procurement and Design, were there is no published data regarding timber from sustainable sources.

The Update Report contains details of Barratt’s involvement in the quest to design and deliver the zero carbon home through sustainable designs and building techniques. Participation in the carbon challenge and construction of the ‘Green House’ should facilitate achievement of this goal.

Barratt are also in the process of developing an ‘Environmental Charter’, which will support the Company’s approach to sustainability.

Methodology used

The purpose of the verification process is to provide assurance that the data contained in this update is based on actual and reliable information. Published data has been independently verified through review of divisional performance returns, interviews during assessments and witnessing operational activities.

During this reporting period, I have assessed 28 Divisions over a total of 56 days making in excess of 100 site visits to audit the Company’s occupational health, safety and environmental management systems as part of Ocean’s ongoing certification activities.

Assessment of CR Report Update

Recommendations from the 2006 CR Report include a change to data gathering from both live and completed developments (previous CR data was only from completed developments) – this has been addressed in the this reporting period.

The accuracy of data used to compile KPI’s, has again been acknowledged as a weakness. The Company will be seeking to improve this by incorporating the validity of reported data into the internal financial auditing schedule for all Divisions.

Issues with the accuracy of some of the data returned from Divisions has been addressed by discounting erroneous, or missing, entries and factoring the value of the indicator proportionately.

Revision of KPI’s and establishment of a primary and secondary KPI system linked to the CR questionnaire will help external reporting and also the development of future targets.

Positive Trends

Analysis of the published data confirms the following year on year trends:

• Increased customer care performance
• Progressive uptake of Considerate Constructor Scheme registration
• Reduction in accident incident rates

Environmental complaints have increased significantly, but this will reflect better reporting through implementation of formal environmental management systems.

A more accurate carbon footprint has been established through better reporting of business travel as well as energy usage.

It is encouraging to see Barratt taking an active leading role in the development of sustainable homes.

Suggested areas for improvement

To ensure completeness of the next full CR report, Barratt would benefit from consideration of the following:

• A more effective communication process to ensure employees are aware of CR objectives and targets and the importance of accurate reporting of data in the questionnaires.
• Clarification of terminology for reporting of operational environmental concerns as formal cautions that have not resulted in prosecutions may not have been recorded.
• Supplier engagement and procurement strategies to deliver sustainability goals of construction process and completed developments (particularly timber).

Date: 18th January 2008

Verifier: Phil Dorr

Lead Assessor Ocean Certification

Phil Dorr is a Member of the Chartered Quality Institute (CQI), an Associate Member of the Institute of Environmental Management and Assessment (IEMA) and a Technician Member of the Institution of Occupational Safety and Health (IOSH). As a registered lead auditor he undertakes independent third party assessments of quality, environmental and occupational health and safety management systems on behalf of Ocean Certification Ltd.

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Corporate Responsibility Update 2007 Low Carbon Update Corporate Responsibility Data Corporate Responsibility Data Table Environmental Charter Verification Statement

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