Sustainability in EHS is a long term commitment and I believe that the key to progress is creating an EHS strategy that builds on GSK business drivers and meets the fundamental requirements of environment, health and safety. In 2001 we put in place a framework of policies and standards that set out our requirements for managing EHS. In 2002, we developed the EHS Plan for Excellence, a strategic plan with aspirations that are directly aligned with business drivers. The plan systematically addresses key risks, moves us toward leadership by enhanced EHS performance in all aspects of the business and ultimately leads to competitive advantage and sustainability.

A sharp focus on employee safety is incorporated throughout the Plan for Excellence. In it we lay out our plans for reducing workplace injuries and illnesses; protecting people from health effects of chemical and biological exposures; identifying programmes that will drive continuous improvement in this area and developing an inherent safety culture within GSK. Ensuring that safety and health concerns are properly addressed at our facilities to minimise residual risk and avoid disruption of product supply is foundational to the Plan and to our aspirational long term goal of avoiding workplace injuries and illnesses.

In following the plan toward environmental sustainability, we will first focus on manufacturing processes that minimise resource use and environmental waste. Secondly, we will examine the possibility of using renewable resources and evaluate the life cycle of GSK's products and processes to help us understand how they fit into the natural cycle. Fitting into the natural cycle means that raw materials would come from renewable sources and wastes would be assimilated into the environment without causing harm.

R&D is critical to the path to sustainability. R&D is involved in designing sustainability and environment, health and safety concepts into the processes that deliver our medicines to customers. This kind of "product stewardship" benefits the business' financial, social and environmental sustainability.

Also, the innovative ways of working that result from product stewardship create the opportunity for GSK to lead the pharmaceutical industry's thinking about product development and manufacture. It is our goal to stimulate continuous improvement in industry practice.

By taking the path to sustainability we believe that GSK can make a significant contribution to the goals of the UN 1987 Brundland Commission: to ensure that future generations have their needs met at least at the current levels. We also believe sustainability is the platform from which GSK will achieve its mission to enable people to do more, feel better and live longer.

I look forward to hearing your comments about the content and format of this report. Your feedback will help ensure that we are adequately communicating the progress GSK is making in Sustainability in Environment, Health and Safety.

James Hagan, PhD, PE