In 2001, we began a review of our approach to Corporate Social Responsibility (CSR) to ensure that our existing focus was appropriate for the business going forward. In the UK, companies are increasingly expected to report on the social and environmental effects of their activities and to demonstrate how they manage their responsibilities on these matters. For example, since July 2000 the law has required all occupational pension funds to state whether they have a socially responsible investment policy. It follows that pension funds investing in Prudential can, and increasingly do, request this information.

Our review found that we needed to present our performance on these matters with greater clarity across the UK business. We are happy to do so. Prudential has built its reputation over 153 years by acting responsibly and with integrity, as well as by investing for the long term in our people and our businesses. Achieving environmental efficiencies, working with charities to create more financially informed consumers, or simply conducting our business according to an agreed set of ethical standards, should help contribute to our long term financial success and to our primary objective of increasing shareholder value. As an investor, we believe that well managed businesses will take account of such matters going forward.

This year, we have introduced a number of initiatives in developing our approach to CSR. Our new Plan for Life Learning community programme, marks our commitment to improving the financial skills and awareness of thousands of young people and adults from a broad range of backgrounds. We believe these to be key life skills for people today. We are currently at the initial stage of developing this programme with established charities, such as the National Association of Citizens Advice Bureaux who are well placed to deliver such community services.

A further initiative, our group Code of Business Conduct defines the minimum standards of ethical business conduct that the Prudential plc Board expects from staff, agents and others working on behalf of the company. These standards apply across our dealings with a range of people, from our customers, staff and suppliers, to the wider community.

Our first ever environment report documents the progress on environmental management made within our UK business since July 1999, when our environment programme began. We have since won a number of prestigious awards in recognition of the quality of our programme, such as the Institute of Energy Accreditation awarded to Prudential Property Investment Managers. We are consistently seeking to improve our environmental management programme and are currently participating in a number of external initiatives in order to learn as well as to contribute to the development of good practice in this field.

As members of the joint Government and Industry group on environmental management (FORGE), we have helped to build a common UK approach on environmental management in our sector. In future this will enable easier comparison of companies' performance on environmental matters. We also participate in the University of Cambridge Programme for Industry, a Business and Environment training programme for our Senior Executives.

Our web-based environment report will form part of our CSR report that will be available at www.prudential.co.uk/plc during the first half of 2002 and that will give further information about the new CSR programme we are developing. We continue, of course, to undertake appropriate consultation in shaping our particular approach through feedback and discussions with business and non-business interest groups.

The Prudential plc Board is fully committed to ensuring that CSR issues are properly integrated into our reputation risk management process and wider group strategy. Philip Broadley, Group Finance Director, will take on executive responsibility for this going forward.

Jonathan Bloomer - Group Chief Executive