State Street, as a financial services company, has minimal direct environmental impact as a result of our products and services. Our primary impacts from our daily operations, including travel. Other potential impacts include those related to our investment and philanthropic activities, raising the environmental awareness of our employees and protecting resources such as wetlands near our property. As demand for the world's natural resources increases, the use of fossil fuels threatens major climate change, and deforestation results from the vast demand for paper, we consider it a corporate imperative to minimize our environmental impact.

State Street has established an Environmental Sustainability Team consisting of senior managers from Global Realty Services, Strategic Sourcing, Community Affairs, Information Technology and Corporate Security to develop, deploy, maintain and report on our environmental program.

In 2006, we developed an Environmental Management System manual that summarizes and describes our environmental impacts. The manual provides a mechanism for environmental management throughout all functional areas of the company. The EMS was implemented in our Massachusetts offices; it will be rolled out to the rest of our North American offices in 2007. As part of the EMS, we have established goals for reducing fossil fuels burned and greenhouse gas emissions in Massachusetts by 5% by 2010. We have also committed to increase our recycling of paper by 5% by 2010.

In March 2007, State Street entered into a three-year renewable energy purchase agreement. As a result, 20% of the energy requirements for our Massachusetts operations will be generated by wind power. This initiative will reduce the greenhouse gas emissions from our Massachusetts locations by 20%.

In our UK offices, we established an Ethical Committee to identify ways to increase awareness of environmental issues for staff in our London and Edinburgh offices and reduce the cost of our operations. The committee's first area of focus was in recycling and waste reduction, which resulted in the purchase of new recycling bins and a significant increase in the collection of recyclable waste. The next area of focus is energy efficiency, especially electricity usage.

Also in London, the design for our new facility in Canary Wharf has received an "excellent" rating from the Building Research Establishment Environmental Assessment Method (BREEAM). The BREEAM rating is the British benchmark for assessing a building's environmental performance. The goal is for the building to be BREEAM certified when it is completed and occupied in 2009.

In 2008, State Street updated its Environmental Policy Statement and introduced an Environmental Sustainability Strategy Statement to further define our approach to managing operational and business impacts on the environment.