Our focus on climate change led to Fortis’s decision to introduce a global Carbon Neutrality Programme. This comprehensive initiative, which was launched in January 2007, confirms our commitment to be an environmentally sustainable financial services provider. We intend to further strengthen Fortis’s position as a climate leader and first-choice provider of environmental financial products.

The carbon neutrality concept is illustrated in the following figure:

What do stakeholders say?
	Serge de Gheldere’s message about Fortis’s increasing climate change awareness “I’m personally convinced that another high-leverage investment for the future is to improve the quality of the people’s thinking about climate change. Because in order to do things differently, we need to see things differently. We need to understand the wide-ranging scope, the sense of urgency and the risk of reaching a tipping point leading to irreversible and catastrophic change to the world’s ecology and economy. It has been a pleasure to work with Fortis on these issues through a series of specific, interactive sensitization sessions addressed to a wide range of employees and to several decision makers within the organization.”

Reducing our energy consumption

To meet our target of reducing our energy consumption by 10per cent per FTE by 2010, we concentrated our efforts in Benelux and Turkey on:

• Behavioural change: several awareness-raising campaigns were held to encourage our employees in the different countries to help reduce Fortis’s environmental impact.

• Operations optimisation: audits, scans and internal assessments helped us select the best measures to form the basis of our optimisation plan 2008-2010.

• Capital expenditure: we invested in energy-efficient measures in the daily operation of our premises and we also applied the best available techniques and energy concepts whenever renovating or designing buildings. Fortis Luxembourg, for example, refurbished one of its branches in a sustainable way by opting for high-efficient technical systems and sustainable materials. Energy consumption is continuously monitored and displayed, demonstrating the low energy use to employees and customers. Another example is the planned renovation of the Chancellerie building in Brussels.

What do stakeholders say?
	René Raus, Bonnevoie branch, can recommend working in a sustainable branch “The renovation is experienced by our clients as very successful. Not only me, but all employees of Bonnevoie office are very proud that environmental aspects were a top priority during the renovation works. Besides a selective choice of environmental friendly materials mainly glass and wood, a lot of attention was given to light. We love working in a bright and healthy environment!”

Using green energy

We announced in our previous report that Fortis intended to switch entirely to green electricity in Belgium in 2007, followed by the Netherlands and Luxembourg in 2008. We have already successfully completed the switch in all three countries, which means that as of 1 January 2008 more than 60 per cent of our electricity worldwide is purchased from renewable sources. The purchase of green electricity in Belgium and the Netherlands in 2007 led to a 66,000 tonnes CO2 emissions reduction. We selected the sources of our green energy very carefully, consulting an independent research agency to ensure its sustainable quality.

Offsetting our emissions

Fortis became carbon-neutral in its global operations with effect from 1 January 2007. We achieve this by purchasing carbon credits originating from projects like windmills and solar or biomass power stations, preferably in emerging economies. We only select credits that comply with the highest quality standards. They must represent new and real emission savings and support energy systems that are not based on fossil fuels. The credits must also make a valid contribution to local sustainable development by, for instance, facilitating small-scale projects that promote local employment. To make sure these requirements are met, at least 50 per cent of our offset portfolio must consist of credits bearing the internationally recognised Gold Standard label. The Gold Standard Foundation – a labelling body created by a group of NGOs – has reviewed and fully endorses the strict quality criteria we use at Fortis when purchasing offsets.

The choice of a 50 per cent rather than 100 per cent threshold is to ensure some flexibility in a market that is currently experiencing excess demand for Gold Standard CERs (Certified Emission Reductions). The remainder have to undergo the rigorous selection procedure that Fortis Corporate Social Responsibility (CSR) and Fortis Carbon Bank have established in close collaboration with the Gold Standard Foundation.

What do stakeholders say?
	The expert: Michael Schlup, Executive Director of the Gold Standard Foundation “As a quality labelling organisation for carbon credits, the Gold Standard Foundation is happy with Fortis’s choice of premium quality. This shows that Fortis takes its carbon neutrality programme very seriously. Furthermore, by choosing the Gold Standard, Fortis can be sure of making a real contribution to combating climate change, and to strengthening local sustainable development. We applaud Fortis’s comprehensive and rigorous approach, as do the 38 non-governmental organisations that endorse the Gold Standard.”