Energy and Materials Report 2005

CREdit SuiSSE GRoup (SwitzERland)

ContentsManagement Summary 3Real Estate Management at Credit Suisse Group (Switzerland) 6Environmental Management System 8Energy and Water 10Energy Model: New Universal Target Agreement 13Energy Portfolio Analysis 15Waste and Materials 16Chemicals, Coolants and Extinguishing Agents 18Communication and Training 20Glossary 22

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Management Summary

In 2004, Credit Suisse Group developed a new sustainability strategy. For the area of in-house environmental management, striving for greenhouse gas neutrality has been defined as the main objective. The first step in that direction was the formu-lation of a multi-level strategy which, in 2006, focuses on achieving greenhouse gas neutrality for all operations within Switzerland (including air travel). Green-house gas neutrality for all operations group-wide is scheduled to be incremen-tally achieved by 2012 at the latest.

One path in this strategy is optimizing operations in the company’s physical premises. A core element in this regard is a new tool to quantify energy consump-tion, thereby providing the means to con-duct an energy portfolio analysis. It will thus be possible to depict the energy footprint of each building. This strategic tool can be used to identify the properties with the greatest need for improvement. On-site visits will provide closer inspec-tion of selected buildings and promising improvement measures will be proposed.

Another path on the route to greenhouse gas neutrality is the substitution of energy types. Operational optimization measures often have a positive impact on costs, and the resulting savings can be re- invested, for example, in products with sustainable added value. In this area, Credit Suisse Group purchased 7.41 GWh of certified renewable power in 2005, making it the second-largest con-sumer of renewable power in Switzer-land. This represents more than 4 per-cent of the total power consumption of Credit Suisse Group in Switzerland.

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Energy Consumption trendsIn 2005, there was a noticeable consoli-dation in employee office utilization. This was the result of a 2-percent reduction in net office space utilization and a 7-per-cent increase in the number of Credit Suisse Group employees in Switzerland occupying buildings operated by MIBAG.

Total energy consumption increased from 273 GWh in 2004 to 277 GWh in 2005, of which 173 GWh result from electricity and 104 GWh from heating.

Overall energy costs rose by 0.5 million CHF to 30.2 million CHF, an increase of

Mandate base data 2003 2004 2005 Change 2004–2005

Number of buildings/portions of buildings 406 392 382 –3%Surface (m2 ECF) 1 383 672 1 362 891 1 339 500 –2%Number of employees (in 100% positions) 1) 20 967 20 113 21 604 7%m2 ECF/employee (100% positions) 66 67.8 62 –9%1) The number of employees refers only to buildings in the MIBAG mandate

absolute volumes (rounded off)

unit 2003 2004 2005 Change 2004–2005

Total energy consumption GWh 279 273 277 1%– Power GWh 174 168 173 3%– Heating GWh 105 105 104 –1%Water m3 634 000 582 000 606 000 4%Waste t 6 060 5 595 5 594 0%Chemicals l 87 500 95 200 101 500 7%Coolant lost kg 563 469 538 15%Extinguishing agents lost kg 0 0 768

absolute energy consumption

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almost 2 percent. Electricity made up about three quarters of this total. The increase in total energy costs is due primarily to significantly higher oil and gas prices. Heating costs rose by about 1 million CHF, while expenditure on electricity was reduced by 0.2 million CHF and water by as much as 0.3 mil- lion CHF.

Main areas of Focus in 2005In 2005 Credit Suisse Group, together with MIBAG, developed a tool to catego-rize the company’s buildings in terms of their energy profile. The application is termed energy portfolio analysis. It relies

on a structured analysis process to as-sess which properties have the greatest need for improvement in reducing energy consumption and the analysis in turn in-volves an on-site energy audit.

The Zurich-based bulk energy consumer association “Energie-Modell Zürich” final-ized a new universal target agreement during 2005. In terms of this agreement, Credit Suisse Group will be assessed ac-cording to energy efficiency targets and reduced CO2 fuel intensity. This energy efficiency certification must be effected by Credit Suisse on an annual basis.

Changes to Federal legislation on chem-icals resulted in a range of implementa-tion provisions, which came into effect on August 1, 2005. The changes, for ex-ample the labeling of chemicals with new warning symbols in place of the old poi-son classifications, required adjustments in the database. The specialists and line managers affected at Credit Suisse Group, MIBAG and external partners have received intensive training in the new chemical legislation.

The Environmental & Energy Services team at MIBAG has been expanded with the addition of further skilled personnel, especially in the field of building control systems.

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Credit Suisse Group adapted its power mix a few years ago in favor of electricity from certified renewable sources (also termed “green power”). In the year under review, the company increased its con-sumption of green power certified under the naturemade star label by more than 6.5 GWh compared to 2004, resulting in a total of 7.41 GWh.

outlookWithin the framework of the new One Bank strategy at Credit Suisse Group, there has also been a reorganization of the duties and responsibilities in the area of operational environmental manage-ment. One innovation will see the head of

the specialist unit serve as the global competence center for managing and coordinating the international operational ecology activities of the company. This office will have to work closely with spe-cialists and line managers in the major international centers.

MIBAG’s Environmental & Energy Ser-vices team will undertake an energy audit for approximately thirty buildings in order to determine building-specific potential for improvement. This operational optimiza-tion is one of a range of measures de-signed to achieve the targets in the new Energie-Modell Zürich universal target agreement.

“We have examined the data concept under- lying the data and evaluations as well as the accuracy of the claims in the current report and, where necessary, reviewed the evidence. According to our assessment, the report provides an accurate reflection of the effective conditions and the operation-al environment pertaining to Credit Suisse Group (Switzerland) properties managed by MIBAG.”

SGS Société Générale de Surveillance SAJuly 2006, Dr Erhard Hug

Validation by SGS

Key figures for energy and water 1) unit 2003 2004 2005 Change 2004–2005

Power per surface unit kWh/m2 ECF 126 123 129 5%Power per employee kWh/MS 8 322 8 349 7 990 –4%Heating per surface unit (effective) kWh/m2 ECF 76 77 78 1%Heating per surface unit (HDD-adjusted to 1998)

kWh/m2 ECF 78 79 75 –5%

Heating degree days (Zurich) HDD 3 372 3 324 3 484 5%Water per surface unit l/m2 ECF * year 458 427 452 6%Waste kg/MS 293 278 259 –7%1) In accordance with VfU 2005 methodology, concerning property managed by MIBAG

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Real Estate Management at Credit Suisse Group (Switzerland)

The Corporate Real Estate & Services unit is responsible for the management of Credit Suisse Group premises used for operational purposes in Switzerland. The core responsibilities of this unit embrace all aspects relating to buildings and of-fices as well as all construction projects, which are coordinated by the property managers. Operational ecology and en-ergy issues are handled in collaboration with representatives from the internal specialist unit for operational environ-mental management and energy.

Credit Suisse Group (Switzerland) has a property management contract with MIBAG, which is responsible for operat-ing and maintaining the company’s build-ings. A core function contained in this contract is the production of an annual report covering the relevant energy and materials consumption (i. e. the present report).

For the purposes of this report, the phrase “Credit Suisse Group” shall al-ways designate the full scope of the MIBAG mandate.

Scope of the ReportThis report describes and analyzes the environmental aspects of the 382 Credit Suisse Group (Switzerland) properties throughout the year, including the head-quarters of Winterthur Insurance and the training center in Diessenhofen. The re-port does not cover the regional offices and agencies of Winterthur, Credit Suisse Group ATMs, or properties newly occu-pied or released. In terms of content, the MIBAG mandate has the same scope as in the previous years.

Changes in Relation to 2004The space utilization strategy aims to concentrate on larger buildings and has resulted in a reduction in the number of buildings under management for the fourth year in a row. Thirteen buildings or portions of buildings have been eliminated while three new buildings have been add-ed to the portfolio. This is equivalent to a reduction of 3 percent in the overall port-folio. The effective reduction in surface area was a little less (2 percent) because some of the eliminated properties were smaller buildings. The current surface area under management in the 382 buildings amounts to 1.34 million square meters of energy-consuming floor space (ECF).

For the first time since 2002, the com-pany has seen an increase in the number of full-time positions. The total of 21,604 full-time employees represents an in-crease of 7 percent in relation to 2004.

data CaptureThe data capture tools in use continue to be effective. The central recording of en-ergy figures generates a significant array of data, and it was once again possible to reduce the proportion of estimated data. 97 percent of heating data was based on effective usage in the year under review. For the first time, the data capture team also handled power records and in this category a full 99.5 percent of data was based on effective usage, representing a very high level.

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Environmental assessmentAn environmental assessment was con-ducted to establish the environmental impact and volume ratios of the individual components. The study took the form of an environmental performance evaluation using the methodology of environmental impact points and the contribution to cli-mate change calculated in terms of CO2 equivalents.

An examination of the environmental im-pact points (see graph) shows that power has the largest impact at 55.5 percent. A comparison of the environmental per- formance evaluations for 2004 and 2005 shows that the relative amount repre-sented by power has fallen by about 6 percent, despite an overall 3 percent in-crease in consumption. This is due to the strong increase in the proportion of green power utilized. However, it must be noted that the reduction of the impact of elec-trical power by 16 percent compared to 2004 is also a function of the increased impact of ozone-depleting substances which rose by 21.6 percent. The biggest impact in this category was halon. During the reporting year there was an acciden-tal release of halon due to leakage. Halon has up to ten times the depleting effect on ozone per kilogram of coolant R12 and up to one hundred times the effect per kilogram of R134a. Current legisla-tion allows the deployment of halon for fire-fighting purposes in existing facilities for the interim. The very high impact of this specific incident has shifted the weighting of the other components in the environmental performance evaluation. Heating represents 13.6 percent of the total followed by waste at 5.5 percent and water at 3.8 percent.

In assessing the contribution to climate change, the impact of ozone-depleting substances also increased strongly, rep-resenting 12.2 percent of the total. How-ever, heating continues to dominate with an impact ratio of 50.3 percent due to the high contribution of oil and gas as energy sources. The increased propor-tion of green power has also reduced the impact of power in this category, showing a drop compared to 2004. Power now only represents 34.3 percent of the total, followed by waste and water, both of which make up a negligible pro-portion in this category.

StrengthsnFurther efforts in the area of chemicals

have resulted in the standardization of product names and the product catalog has been significantly reduced.

nCentral data capture and management has increased the scope of data sig-

Environmental impact 1)

(Environmental impact points EIP ’97, change compared to 2004)

Ozone-depleting substances 21.6% (+21%)

Power 55.5% (–16%)

Waste 5.5% (–1%)

Water/sewerage 3.8% (–1%)

Heating 13.6% (–3%)

Contribution to climate change 1)

(CO2-equivalents defined by VfU 2005, change compared to 2004)

Ozone-depleting substances 12.2% (+10%)

Power 34.3% (–5%)

Waste 2.5% (0%)Water/sewerage 0.7% (0%)Heating 50.3% (–5%)

1) Based on presumed power mix: 60% hydroelectric power, 20% nuclear power, 20% imported power (UCTE)

nificantly and data quality has improved further.

nThe new portfolio analysis procedure to assess buildings in environmental terms has been successfully deployed in the assessment process.

nDue to the addition of further skilled personnel the Environment & Energy Services Team at MIBAG was able to increase its field of competence sig-nificantly.

weaknessesnAlthough already well established, the

data capture tool could not be fully adjusted as desired.

next StepsnEnergy audits will be effected, based

on the new portfolio analysis proce- dure.

nThe Energy and Materials Report will be extended to cover the international property portfolio.

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Environmental Management System

In 1997, Credit Suisse Group was the first bank internationally to receive ISO 14001 certification for its environmental management system, which since has been steadily further developed. The environmental management system con-trols the allocation of responsibilities, procedures and guidelines necessary to implement the company’s operational en-vironmental policy.

ISO 14001 certification was awarded to MIBAG (the external company respon-sible for property management) in 2003. This enabled a more systematic incor- poration of environmental issues into the processes and activities of MIBAG, which in turn benefited the environmen-tal management system at Credit Suisse Group.

On the basis of annual monitoring audits, the external certification agencies have reaffirmed the ISO 14001 conformity of the environmental management systems of Credit Suisse Group and MIBAG re-spectively in 2005.

Credit Suisse Group and MIBAG have developed and implemented a collabora-tive model within the framework of oper-ational environmental management. In terms of this collaboration, MIBAG’s En-vironmental & Energy Services team serves as the interface between Credit Suisse Group and the line organization at MIBAG. In addition, the working group “Caterer & Umwelt” is responsible for the coordination of the restaurant pro-viders in terms of their operational ecol-ogy activities.

Organization of Environmental Management

Credit Suisse Group environmental management Environmental policy Greenhouse gas neutrality strategy

Environmental guidelines Defined in mandate contract

objectives and programs Defined in coordination meetings between Credit Suisse Group and MIBAG

Monitoring and audits Energy and Materials Report, audits, property master data sheets

implementation Specialist units and line management at Credit Suisse Group and MIBAG, external providers

In terms of the ISO14001 re-certification process for Credit Suisse Group in 2006, MIBAG has been mandated to audit compliance with environmental legisla- tion in Credit Suisse Group properties used for operational purposes in Switzerland. In detail, this audit will make sure that the environmental laws and ordinances

which apply to operational procedures are known and followed and any disparities are actively addressed. In 2006, MIBAG’s Environmental & Energy Services Team will assess approximately 80 buildings using a comprehensive checklist and compile a report detailing the outcomes and necessary corrective measures.

Conformity with Environmental Legislation (Legal Compliance)

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The head of the specialist unit for opera-tional environmental management and the officer responsible for the specialist energy unit at Credit Suisse Group meet at regular intervals with MIBAG to coor-dinate and define the program of mea-sures required to ensure the compliance with the annual targets. The program is implemented via projects and training courses. The coordination meetings are also used to discuss the implementation status and, where necessary, to make adjustments.

The Environmental & Energy Services team at MIBAG is responsible for moni-toring and managing the flows of energy and materials at the individual properties. In addition, the team is also responsible for achieving the targets defined in the contract with Credit Suisse Group. The team supports and audits the responsible operational specialist units and line man-agement as well as external suppliers.

The effective consumption of energy (power, heating and water) and materials (waste products, chemicals, coolants, etc.) is recorded and analyzed. This data serves as the basis for the annual Energy and Materials Report and is the foun-dation for determining optimization mea-sures.

2005 was once again characterized by project-oriented cooperation between Credit Suisse Group and MIBAG. Focus areas for the year included the new ordi-nances for waste processing and the new legislation on chemicals, implement-ing the portfolio analysis necessary to categorize properties in terms of their energy profile, energy-related building audits, and preparations for the hygiene inspection in terms of SWKI Guideline 2003-5. In the area of conformity with environmental legislation, up-to-date in-formation was produced for various issues and made available to the officers responsible.

StrengthsnThe specialist units and line manage-

ment affected are informed in advance of changes to environmental legisla-tion and of the impact relevant to them.

weaknessesnIt was not possible to increase the

number of training courses.

next StepsnRe-certification of Credit Suisse Group

for ISO 14001 in 2006.nRe-certification of MIBAG for ISO

14001 in 2006.

From the Energy and Materials Report 2004[…] the Federal Council decided to initiate a CO2 incentive tax on fossil fuels from January 2006. The proposed tax will be at the rate of 35 CHF per ton of CO2. […]

In the spring session of 2006, the National Council voted against the introduction of a climate tax on fuels and instead supported a CO2 tax. In the first phase of launching the new tax, it will be levied at a rate of 12 CHF per ton of CO2 or 0.03 CHF per liter of heating oil. If CO2 emissions have not reduced by 15% by 2010 (i. e. below the level for 1990), the tax will be raised to 36 CHF per ton or 0.09 CHF per liter of heating oil. The revenue raised via the tax will be refunded in full to the population and the economy.

Narrow Definitions vs. General Environ-mental taxesNarrowly defined environmental taxes are designed to achieve some specific form of environmental protection, e.g. the capacity-linked levy on heavy goods vehicles (LSAV/RPLP) or the levy on volatile organic compounds (VOC/COV). General environ-mental taxes, however, target aspects which affect the environment but are not in- troduced explicitly to improve environmental quality. Their application is intended to achieve other ends. One example of this is the tax on gasoline. Half of the revenue collected is dedicated to road maintenance and the rest is allocated to the general expenditure budget.

Environmental taxes

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Energy and water

Total Credit Suisse Group energy con-sumption increased from 273 GWh in 2004 to 277 GWh, representing growth of 1 percent. Water usage rose from 582,000 to 606,000 cubic meters. In absolute terms, consumption in the three energy classes developed as follows:

nElectricity consumption increased by 3%.

nHeating consumption dropped by 1%.nWater consumption increased by 4%.

General developmentCredit Suisse Group has seen a densifi-cation of employee office utilization in comparison to 2004. The number of properties covered by the MIBAG man-date fell from 392 to 382, with a drop in energy-consuming floorspace (ECF) from 1.36 to 1.34 million square meters. At the same time, the number of employ-ees increased by 7 percent, or 1,491 full-time positions to a new total of 21,604 employees.

The summer of 2005 was mild and thus similar to the summer of 2004. In con-trast, the winter semester was signifi-

cantly colder. The number of heating de-gree days (the measure of demand for energy to generate heat) for 2005, ad-justed to reflect the value for Zurich, was almost 5 percent higher than in 2004.

These influencing variables explain the overall development of power and water consumption to a large extent. The lower heating consumption reflects the strong-er impact of the reduction in surface area compared to the rise in heating degree days.

Energy and water consumption

unit 2003 2004 2005 Change 2004–2005

Total energy consumption GWh 279 273 277 1%– Power GWh 174 168 173 3%– Heating GWh 105 105 104 –1%Water 1000 m3 634 582 606 4%

Key figures for energy and water 1) unit 2003 2004 2005 Change 2004–2005

Power per surface unit kWh/m2 ECF 126 123 129 5%Power per employee kWh/MS 8 322 8 349 7 990 –4%Heating per surface unit (effective) kWh/m2 ECF 76 77 78 1%Heating degree days HDD 3 372 3 324 3 484 5%Heating per surface (HDD-corrected to 1998)

HDD-cor- rected/m2 ECF

78 79 75 –5%

Water per employee l/MS * day 121 116 112 –3%Water per surface unit l/m2 ECF * year 458 427 452 6%1) In accordance with VfU 2005 methodology, concerning property managed by MIBAG

Over the past 18 months, as part of a “Greenhouse gas-neutral Switzerland” pilot project, Credit Suisse Group has developed a multi-phase strategy for reducing the greenhouse gases it emits in Switzerland. The bank has cut its greenhouse gas emissions through improvements to oper-ating and maintenance procedures by applying the “Minergie” standard to newly built or converted premises and by sourcing a higher proportion of green power. The remainder is offset by emission reduction certificates. As of 2006, therefore, Credit Suisse is the first major corporation to neutralize all greenhouse gas emissions caused by its operations in Switzerland and by its business flights out of Switzerland.

pilot project: Credit Suisse Group Greenhouse Gas neutrality Strategy

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PowerIn absolute terms, Credit Suisse Group power consumption increased from 168 GWh in 2004 to 173 GWh in 2005, rep-resenting growth of 3 percent. Power utilization per square meter of energy-consuming floorspace rose by 5 percent while the effective value per employee fell by 4 percent. The average energy ef-ficiency per person has therefore im-proved. The computer centers used 57 GWh in the year, making up almost one third of the total consumption. Compared to 2004, power utilization by the com-puter centers grew by nearly 2.4 GWh or more than 4 percent.

One reason for the increase in effective power usage is the fact that the cogen-eration heating plant at Uetlihof produced 1.5 GWh less power than in 2004. In ad-dition, the inclusion of Swisscard (credit card operations) with several hundred employees in the Horgen premises re-sulted in a significant increase in the de-mand for electricity. Furthermore, the 7 percent increase in employees also boosted power utilization. Due to the densification of employee office utiliza-tion, the specific use of power grew by five percent from 123 to 129 kWh/m2 of energy-consuming floorspace.

Further Growth in Green Power ConsumptionIn 2005, Credit Suisse Group once again utilized 0.31 GWh of solar-generated power in terms of a bundling agreement. The company added 5 GWh of hydro-electric power and 2.1 GWh of renew-able power from SIG Vitale Vert in the Geneva region. In total, therefore, Credit Suisse Group used 7.41 GWh of green power in 2005. All power sourced in this way is naturemade star certified. This label identifies renewable power sources which are measured in terms of strict environmental criteria. This makes Credit Suisse Group the second-largest con-sumer of green power in Switzerland and the company plans to expand its use of green power in future years.

HeatingIn absolute terms, heating energy was reduced from 105 GWh to 104 GWh. Uetlihof, which is a major consumption point, produced about 3.2 GWh more heating energy from its heat recovery plant (heat captured as a byproduct from cooling) in comparison to 2004, resulting in lower consumption of natural gas.

Consumption per square meter of energy-consuming floorspace for all properties rose modestly to 78 kWh/m2. However, if one considers the long-term average in comparison to 1998 (HDD-corrected), this figure dropped from 79 to 75 kWh/m2 representing a decline of 5 percent. In comparison to 2004, the number of heating degree days rose by 5 percent (based on consumption in the city of Zu-rich). The rise in heating degree days would have resulted in increased abso-lute heating consumption if the energy-consuming floorspace had remained the same. However, the reduction in surface area has eliminated this increase.

Gas remained the dominant source of heating energy with a share of 54 per-cent, while heating oil (26 percent) and district heating (19 percent) were less significant sources. Only 1 percent of the total was unidentified. In comparison to 2004, this saw a shift from gas to district heating in the order of about 3 percent for 2005.

Heating sources 2005(Change compared to 2004)

Gas 54% (–3%)

Mixed source from the three other categories, non- classificable 1% (0%)

District heating 19% (+3%)

Oil 26% (0%)

District heating transfer unit

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waterIn absolute terms, water consumption in-creased from 582,000 m3 in 2004 to 606,000 m3 in 2005. This translates into an increase of 4 percent and was primar-ily the result of the 7-percent growth in employee numbers and the greater uti- lization of water due to more demand for air conditioning.

In 2005, all Credit Suisse Group prem-ises used for operational purposes were fitted with water-savings valves where technically possible. The manufacturer projects the anticipated savings in terms of water and energy at 50 percent.

Refurbishment and Energy Optimization ProjectsWith a property portfolio of almost 400 operational buildings in Switzerland, Credit Suisse Group is faced with medi-um or large refurbishment projects on an annual basis. Such projects are planned

and implemented by the specialist team in the Corporate Real Estate & Services unit at Credit Suisse Group. The services of MIBAG are used where necessary in this regard. Smaller refurbishment and operational optimization projects are the responsibility of MIBAG.

The amount of energy saved and energy efficiency achieved is reported in detail annually in order to be able to track the targets of Credit Suisse Group and MIBAG in terms of energy. In particular, this data is used to confirm targets made in terms of “Energie-Modell Zürich”. In 2005, Credit Suisse Group achieved en-ergy savings of 1.9 GWh through various refurbishment and conversion projects; similar projects under the supervision of MIBAG also achieved savings of 1.9 GWh. Measures taken in the catering services achieved energy savings of 0.14 GWh, while savings in the IT facilities amounted to 0.26 GWh.

Water is essential for life and is one of the most important natural resources. Interna-tional consumption of water continues to rise while freshwater reserves are already over-exploited.Although 70 percent of the surface of the planet is covered with water, only 2.5 of this is freshwater and hence usable. Of this total, only one fortieth is actually available to us. One must remember that of this 2.5 percent total which is freshwater, 69 per- cent is in the form of ice, making the situation a little more dramatic. 31 percent of the remaining reserves are in the form of ground water, which is located up to 4,000 meters deep and can remain underground for up to 1,400 years. Rivers and lakes make up only 0.3 percent of all the freshwater on the planet.Drinking water is an essential resource for our lives, but it is also in short supply. Unfortu-

nately, of the current population of 6.2 billion people, about 1.1 billion still have no access to clean drinking water and 2.4 billion people have no access to proper sewerage services.In addition, water reserves are unevenly distributed in relation to population. This is especially the case in Eurasia, where the availability of water in comparison to the human population is only about 60%. If the global population continues to grow at projected rates, it will have reached 9.1 billion by 2050 in comparison to the current figure of 6.5 billion. This will place even greater strain on water resources.International companies in particular have a responsibility to adopt sustainable practices in relation to water usage in their value chains.

Source: Daniel R. Meyer, Umwelt Perspek­tiven, no. 2, April 2006

Scarce Resource: water

Desuperheater built into cooling plant as operational optimization measure

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Energie-Modell Zürich: New Universal Target Agreement

The objective of the “Energie-Modell Zürich” is to set voluntary targets for improving energy efficiency and thereby reducing CO2 emissions. In 2005, a new universal tar-get agreement was reached between eight cantons, the city of Zurich, the energy agency representing business interests (EnAW/AEnEC) and the bulk energy con-sumer association “Energie-Modell Zürich”. The focus of the new agreement has been shifted beyond Zurich and embraces all the Swiss locations of members. In addition to Credit Suisse Group, the “Energie-Modell” includes 15 other companies from the com-mercial, financial services and industrial sectors. Winterthur (the insurance operation of Credit Suisse Group) has pursued its own separate universal target agreement and is now an independent member of “Energie-Modell”. As the mandated property manager of Credit Suisse Group, MIBAG has also signed the universal target agreement. All buildings and facilities covered by the agreement, which are located in cantons that have applicable regulations for bulk energy consumers, are released from the detailed provisions of the cantonal energy legislation. “Energie-Modell” members also benefit from an intensive exchange of experience.

In concrete terms, the group’s objectives are as follows:nTo raise energy (power and fuels) efficiency by 16.5 percent in comparison to the

index year (2000) by 2012. In addition, individual targets are set for each member.nTo reduce the CO2 impact of fuels by 24.6 percent in comparison to the index year

(2000) by 2012.

Member companies have agreed to take active steps to improve their own parameters so that the group target as a whole is achieved. As long as the group target is achieved, there is no individual obligation to reach company-specific targets. In order to reach the agreed targets, the measures implemented are reported by members on an annual basis and the savings achieved are put in comparison to the targeted reductions. If the group target is missed for two consecutive years, the universal target agreement will be regarded as unfulfilled. Individual members can be expelled if they do not meet their obligations toward the group. Companies that leave or are expelled from the group will then become subject once more to the applicable regulations under cantonal energy legislation.

The measures taken by Credit Suisse Group applicable for 2005 were as follows:nRefurbishment of buildings and technical facilities, for which Credit Suisse Group

itself is responsible.nRefurbishment and energy optimization measures accounted for by MIBAG.nOptimization of the catering services and the IT facilities.nPurchase of certified green power, which qualifies as improved efficiency.

Credit Suisse Group is able to report that it has already out-performed its annual tar-gets in terms of its contribution to the “Energie-Modell” group targets.

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The following list highlights some of the projects completed by Credit Suisse Group in 2005:nMINERGIE refurbishment at Rue du

Lion d’Or 5–7 in Lausanne, certified in December 2005

nReplacement of the UPS installation in the Uetlihof computer center in Zurich (anticipated annual savings: 1,051 MWh)

nRefurbishment of the façade, roof, ventilation and cooling systems and lighting at Bahnhofplatz 1 in Baden (500 MWh)

nRefurbishment of the cooling system at Bahnhofstrasse 53 in Zurich (68 MWh)

nReplacement of the ventilation, cool-ing and heating systems at Bahnhof-strasse 20 in Aarau (66 MWh)

Examples of MIBAG energy-optimization projects in 2005:nOptimization of ice storage and venti-

lation systems at Rue de Lausanne 11–19 in Geneva (120 MWh)

nOptimization of ventilation system at Route de Chancy 59 in Petit-Lancy (70 MWh)

nReplacement of cooling and heating systems at Bahnhofstrasse 17 in Zug (60 MWh)

nReplacement of heating system at Avenue d’Ouchy 52 in Lausanne (50 MWh)

CostsThe overall cost of energy supplied in the form of power, heating and water rose by almost 2 percent to 30.2 million CHF. Of the total, 72 percent was expended on power, 21 percent on heating and 7 per-cent on water.

Expenditure on power fell by 1 percent due to the contractually guaranteed sup-

ply pricing from Swisspower, which drops marginally on an annual basis until 2007. Heating costs went up by 17 percent and are thus significantly higher for 2005. In real terms, this translates to an increase of almost 1 million CHF for heating costs. The main reason for this is the rising price of fossil fuels. Water consumption costs fell by 13 percent in the reporting period. In the city of Zurich, however, 2005 prices were higher for sewerage services in the operational properties.

StrengthsnConsumption of certified green power

rose by more than 6.5 GWh in com-parison to 2004 and amounted to a total of 7.41 GWh.

nRefurbishment and optimization mea-sures resulted in energy savings of 4.2 GWh.

weaknessesnPower costs increased again in 2005,

this time by 3 percent. Water costs rose by 4 percent.

nIn the area of operational optimization and investments, energy-related meas-ures have not yet resulted in a reduc-tion of overall consumption and are more than cancelled out by other fac-tors, especially the increase in the number of employees and greater consumption by the computer cen-ters.

next StepsnAn energy portfolio analysis will be

undertaken to produce an energy audit for about 30 buildings. This audit will generate immediate operational meas-ures as well as refurbishment pro- posals which will be reflected in next year’s budget.

Costs (million CHF) 1) 2003 2004 2005 Change 2004–2005

Power 23.2 21.9 21.7 –1%Heating 5.1 5.3 6.3 17%Water 2.7 2.5 2.2 –13%1) Percentages in this chart are calculated on the basis of effective amounts

Distributors in heating center

15

Energy portfolio analysis

During various workshops held over the summer of 2005, the Environmental & Energy Services Team at MIBAG together with Credit Suisse Group and an external consulting agency developed a conceptual model for an energy portfolio analysis. The basic idea behind such a strategic tool is to be able to quantify the energy profile of the Credit Suisse Group real estate portfolio and thus to identify the energy footprint of each property.

In principle, the portfolio analysis will be effected using two different valuation systems. The first is based on static valuation, which is oriented in terms of target values and provides a long-term comparison. The second system is a dynamic valuation method to identify potential savings. Both valuation systems utilize the specific energy values measured in kWh/m2 ECF. Static valuations are reflected on the property master data sheet and integrated into the existing chart.

The dynamic valuation system goes one step further. Once properties have been clas-sified in the portfolio matrix, the absolute consumption figures are incorporated. In addition, extreme values for power and heating are identified and are included in the initial assessment used to select buildings for investigation. By focusing on buildings with high specific consumption, the investment and organization outlay required for energy improvements can be reduced significantly.

The results from the portfolio analysis will be made available to three target groups.nMandate management, operational management, specialist units: The focus here will be the portfolio as a whole and its development over the previous

years. The results from the analysis can be used to identify trends and to underpin the Credit Suisse Group sustainability policy in the sphere of operational premises in Switzerland.

nOfficers responsible for investment and management, Credit Suisse Group property managers, MiBaG account managers:

The focus for this target group will be the individual properties in the portfolios of property and account managers. The objective will be to explain and track energy consumption developments in comparison to the previous year, especially regarding strong deviations. In addition, the information will serve as the foundation for devel-oping measures to optimize energy consumption (refurbishment/operations/main-tenance).

nSpecialists and facility managers The information serves to sensitize facility managers regarding energy savings in

general and also to guide the implementation of measures to reduce energy con-sumption.

16

waste and Materials

Operational responsibility for handling and coordinating waste and materials rests with MIBAG for the 382 Credit Suisse Group premises in Switzerland (i. e. identical system parameters as for energy and water). Waste is separated locally and collected and then disposed of by MIBAG and specialist service pro-viders in accordance with technical and environmental guidelines. Potential recy-clable materials are recycled. The dis-posal of confidential material and data carriers, such as computer hard drives or CDs containing business or client data, within Credit Suisse Group is subject to very stringent security provisions.

As for 2004, the waste disposal data is based on MIBAG records and informa-tion supplied by the companies respon-sible for cleaning buildings, waste dis-posal and catering. Waste volumes were recorded throughout the entire system. For the first time, staff catering venues have recorded liquid waste and cooking oil separately. The total recorded waste volume (excluding liquid waste and cook-

ing oil) remained virtually unchanged in comparison to 2004 at 5,594 tons. Re-cyclable paper and cardboard made up 53 percent of this total, representing a drop of 3 percent compared to 2004. Rubbish remained proportionately con-stant at around 32 percent. These two categories made up almost 85 percent of the total volume of waste. The remaining materials and waste such as bulky items and metals, fats and oils, glass, electron-ic scrap, PET, batteries, etc. represent small percentile proportions of the total but some categories are significant in terms of ecological impact and environ-mental legislation.

developmentsDuring 2005, the volume of waste rose by 354 tons. The rise in this figure is pri-marily due to the inclusion of liquid waste and cooking oil for the first time. Devia-tions in individual categories of waste are mostly marginal and balance each other out in the total figures. More noteworthy variations were recorded for organic waste (reduction from 82 to 46 tons) and old oil (reduction from 18 to 2 tons).

Staff Catering VenuesThe figures for staff catering venues for 2005 were also taken from effective vol-umes recorded over the year instead of estimated values. Excluding the two new categories of liquid waste and cooking oil, the recorded volume of waste fell from 238 tons to 168 tons, representing a reduction of almost 30 percent. In ac-cordance with the objective of more de-tailed record-keeping, the volumes of liquid waste and cooking oil from staff restaurants were included for the first time in 2005. The total for these two new categories was 355 tons, with cooking oil making up 21 tons.

Electronic ScrapFigures for the category of electronic scrap were coordinated and reported via the responsible unit at Credit Suisse IT Assets AG. The disposal plan for IT equipment and small parts was imple-mented in June 2005. This is based on the cost-effective solution developed by the Swiss Association for Information, Communications and Organization Tech-

17

nology (SWICO), and regulates the re-sponsibilities and procedures with the objective of ensuring the centralized dis-posal of waste in accordance with tech-nical and environmental requirements.

In 2005, 314 tons of electronic scrap were disposed of. This is significantly more than the figure for 2004 and is due to the increased scrapping of PCs (instead of selling them) and the re-placement of entire systems (trading section). Other factors underpinning the increase include the replacement of about 3,800 tube-screen monitors with more energy-efficient flat-screen moni-tors and the product range adjustment for office printers.

StrengthsnThe disposal process for electronic

waste was fully implemented.nFor the first time, liquid waste and

cooking oil were recorded separately for staff catering venues.

nCollaboration with the three catering companies proved to be good. Data quality is monitored in the operational

process and is effected by the contact persons responsible for environmental issues. The delivery of consolidated data to MIBAG is effected via the three system officers.

weaknessesnMajor increase in volume of electronic

scrap.

waste categories

02001 2002 2003 2004 2005

0

1000

2000

3000

4000

5000

6000

7000

Volu

me

(t)

Key figures for waste and materials unit 2003 2004 2005 Change 2004–2005

Based on data from buildings with central waste management:Surface 1000 m2 ECF 1 355 1 363 1 340 –2%Number of employees 1) MS (100%-position) 20 681 20 113 21 604 7% Absolute volumes:Rubbish t 1 925 1 776 1 761 –1%Bulky items t 217 257 190 –26%Cardboard t 360 373 343 –8%Paper t 2 963 2 766 2 632 –5%Liquid waste and cooking oil t 355Other recycables (metal, glass, PET, organic waste etc.) t 329 231 187 –19% Special and toxic waste (batteries, microfilm-chemicals etc.)

t 168 143 167 17%

Electrical and electronical scrap t 97 49 314 541%Total central waste excl. liquid waste and cooking oil t 6 060 5 595 5 594 0%Total central waste incl. liquid waste and cooking oil t 5 949Key figures:Waste total 2) kg/MS * year 293 278 275 –1%Paper and cardboard % 55 56 50 –11%Rubbish and bulky items % 35 36 33 –8%Other recyclables % 5 4 3 –25%Electrical and electronic scrap, special and toxic waste % 4 3 14 367% Recycling proportion % 60 60 53 –12%1) Total number of employees in terms of waste and materials2) Total central waste disposal excl. cooking oil and liquid waste

next StepsnCompleting the new disposal concept,

including communication, and ensur-ing its implementation.

nCarrying out training programs in staff catering venues with the objective of reducing liquid waste significantly and optimizing the purchase of goods.

n Liquid waste and cooking oil

n Electrical and electronic scrap

n Special and toxic waste (batteries, microfilm- chemicals etc.)

n Other recyclables (metal, glass, PET, organics etc.)

n Bulky items n Rubbish n Cardboardn Paper

18

Chemicals, Coolants and Extinguishing agents

Chemicals and Cleaning MaterialsThe cleaning materials and chemicals re-ported for 2005 are deployed primarily in the areas of building cleaning, catering and technical maintenance. The largest proportion is used by external cleaning companies and staff catering facilities. A smaller proportion is deployed by MIBAG, primarily for building maintenance. The data recording tool which proved its worth in 2004 was used once again. A signifi-cant feature of this tool is the selection of products from a combined catalog, which also reflects the products’ characteris-tics. The catalog contains all approved products and is updated regularly.

Correct product deployment is moni- tored in close cooperation with MIBAG (Cleaning & Waste Disposal Services and Environmental & Energy Services) in terms of environmental and health issues. New products are assessed in advance by these two teams and then approved for use.

During the last year, adjustments were once again made to the list of cleaning companies and the specific batch alloca-tions. As a result, there were some prob-lems and additional outlay in obtaining data (especially from companies no longer contracted). Audits were used throughout Switzerland to ensure that the appropriate level of service quality was delivered.

In the reporting period, a total of 101,500 liters of (undiluted) product were used, representing an increase of approximate-ly 7 percent. The increase resulted in particular from the operations in staff catering venues as well as the inclusion for the first time of the seminar facility at Diessenhofen. The number of products deployed was reduced from 312 to 266, which is primarily the result of a review of the product catalog. Adjustments to EU norms by product manufacturers meant that identical products were listed in the catalog and it was thus possible to elimi-nate future duplication.

On August 1, 2005, the restructured chemical legislation entered into force along with a package of implementation provisions. The following issues are ad-dressed by the new legislation: environ-mental and health safety; liberalization; and harmonization with EU law. The existing legislation on poisons and ordi-nances dealing with materials were removed. This resulted in the elimination of the listing and classification of poisons, as well as the “BAG-T” number system. Instead, chemicals will now be identified in terms of warning symbols and must be accompanied by safety information sheets. Consumption data for poison classes was therefore no longer provided in the reporting period. The next chal-lenge will be to develop a system for the range of warning symbols, which will pro-vide an overview of the product catalog regarding potential hazards. The safety information sheets have been added to the product catalog. Specialists and line managers affected have been given ex-tensive training in the new legislation.

Chemical deployment

02001 2002 2003 2004 2005

102030405060708090

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Volu

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n Building cleaning n Kitchen cleaning n Water treatment n Solvents n Misc.

19

CoolantsThe coolant inventory for the report year listed 524 permanent facilities. With the inclusion of building access and exit points, this represents an increase of 25 facilities compared to 2004. The increase is due to the inclusion of smaller facilities (containing more than 3 kilograms of coolant) in existing buildings as well as facilities that resumed service. The total volume of coolants increased from 19.2 tons to 20.1 tons as the inclusion of building access points saw the addi- tion of several major facilities to the in-ventory.

Reported losses increased by 15 percent from 469 kilograms in 2004 to 538 kilo-grams in 2005. The losses occurred in 34 facilities. Apart from four facilities, which made up 329 kilograms of the total losses, most incidents involved smaller facilities. Slow leaks were the pri-mary cause of most of these losses.

During the year, one of the two major R12 facilities still in operation was refur-bished and the coolant replaced with R22. The conversion of the last major operational facility is currently being planned. The proportion of R22 coolant increased from 6.8 tons in 2004 to 7.3 tons in 2005. A concept for the system-atic reduction and substitution of R22 facilities is currently being developed as these facilities can only be refilled until December 31, 2009.

Extinguishing agents (Halon)MIBAG currently manages 43 permanent halon fire-extinguishing facilities with a volume of 18.9 tons. The volume of halon and the number of facilities under management have changed. Two facili-ties were made redundant, and a loss of 768 kilograms was recorded against the inventory totals.

During the annual audit program by the contracted maintenance company, an accidental loss was caused at one of the facilities which resulted in the release of 768 kilograms of halon 1301. The Envi- ronmental & Energy Services team re-ported the inventory data to the Federal reporting office on behalf of Credit Suisse Group. The Federal office keeps a national halon register.

StrengthsnRevision of the chemicals and cleaning

agents catalog, resulting in a reduction of the product list.

weaknessesnAnother increase in the volume of

cleaning agents and chemicals de-ployed.

nHigher loss of coolants and more R22 cooling facilities.

nSignificantly higher loss of halon due to the accidental release and flooding of a facility.

next StepsnExpanding the product catalog with

the new valuation system to reflect potential hazards for the products deployed.

nContinuation of the refurbishment and substitution plan for existing R22 cool-ing facilities.

Coolant loss unit 2003 2004 2005 Change 2004–2005

R12 kg 0 60 30 –50%R22 kg 272 395 171 –57%R134a kg 76 0 255 Misc./mixed kg 215 14 82 486%Total kg 563 469 538 15%Facilities Number 493 499 524 5%Coolant inventory t 19.2 19.2 20.1 5%

Coolant inventory

02001 2002 2003 2004 2005

2468

10121416182022

Volu

me

(t)

n R12 n R22 n R134a n Misc./mixed

20

Communication and training

Credit Suisse Group internal informationThe pilot project to achieve greenhouse gas neutrality in all operational activities in Switzerland from 2006 onwards was the focus of an information campaign in 2005 by the operational environmen- tal management team in collaboration with the Group’s environmental officers. This resulted in an information package addressing the Credit Suisse Group posi­tion on climate change, operational greenhouse gas emissions, the strategy for and implementation of greenhouse gas neutrality. Decision-makers, special-ist units and line managers affected were provided with background to the project during information sessions with the goal of sensitizing them to the issues.

MiBaG internal informationNew information documents were pro-vided on the MIBAG intranet. These focused on the new ordinances for han-dling waste (VeVA) and the disposal of illuminants and lights pursuant to changes in the ordinance on the recycling and dis-posal of electrical and electronic equip-ment (VREG).

Further fact sheets provide up-to-date information on conformity with environ-mental legislation in the areas of new chemical legislation, tank facilities and coolants. In addition, fact sheets were developed in 2005 in order to sensitize operational managers at MIBAG and Credit Suisse Group to the issue of as-bestos and PCB in insulation materials. These facilitate appropriate and pro- active responses to situations and the timely notification of specialists and line managers.

21

training CoursesThe issues of VeVA, VREG and the new chemical legislation were presented dur-ing a focus day with internal and external participants.

The Environmental & Energy Services team and MIBAG employees took advan-tage of various contact opportunities to exchange experiences and information. Such occasions included discussions to expand data exchange and interfaces. During the on-site energy audits, there will also be specific opportunities to address technical and operational prob-lems. Energy optimization measures can thus be implemented immediately and in a cost-effective manner.

The issues of the environment and ener-gy were also the focus of training pro-grams at three catering companies SV Group, Compass Group and DSR, which operate some 25 staff catering restau-rants and cafeterias in Switzerland on behalf of Credit Suisse Group. The con-tact persons responsible for environmen-tal issues at operational level and the employees themselves received targeted training in issues such as optimal waste management, correct handling of hazard-ous materials, power conservation, occu-pational safety and hygiene.

External informationRegular meetings of “Energie-Modell Zürich” were addressed by specialists in environmental and energy issues from the member companies. These events provided the opportunity for regular ex-changes of information which were then continued on a bilateral basis. Various representatives from “Energie-Modell Zürich” members participated in an infor-mation event addressing the issue of conformity with legislation. Once again, the event led to the exchange of experi-ence and highlighted the different ap-proaches taken by companies. MIBAG and Credit Suisse Group used the “Energieoptimierung – konkret!” series of events to present the new energy port-folio analysis.

The Energy and Materials Report 2005 is available on the Credit Suisse Group and MIBAG websites in German and English.

StrengthsnLegislative changes were identified in

advance. Specialists and line man- agers were provided with the relevant information in advance.

nOn-site energy audits facilitate direct contact with facility managers and the clarification of specific issues.

weaknessesnThe training course addressing energy

optimization for Credit Suisse Group property managers planned for 2005 did not take place.

next StepsnAn energy optimization training course

is planned for facility managers at MIBAG.

nCredit Suisse Group property man- agers will participate in an information event addressing the new portfolio analysis system; results from the 2006 energy audits; and environmen-tal legislation compliance assessments in 2006.

22

CO2 equivalents Measure of contribution to the greenhouse effect, i.e. global warming of the planet and the resulting climate change. The primary greenhouse gas is carbon dioxide (CO2). To create a basis for comparison, all green-house gases are therefore expressed in CO2 equivalents in proportion to their climate impact.

ECF Energy-consuming floorspace. The total of all floorspace in a building (above and below ground), which is heated or cooled. The ECF figure generally represents about 85 percent of the total floorspace. This is also the basis for calculating ECF in the Credit Suisse Group mandate.

EIP Environmental impact points. The EIP are a measure of comparison for environmental impact. This method is defined in publication no. 297 of the Federal Office for the Environment (FOEN, 1998).

GWh Gigawatt hour. Equivalent to 1 million kWh

HDD Heating degree days. In this report, HDD20/12. The difference between the inside temperature (20 °C) and the average outside temperature on one day, calculated for all days with an outside temperature of 12 °C or colder. In the Credit Suisse Group mandate, each building is analyzed on the basis of the HDD value for its region. The HDD value for Zurich is used as the norm for the total consumption. Data source: Meteo Schweiz.

ISO 14001 International norm for environmental management systems (ISO: International Organization for Standard-ization). Environmental management is systematically anchored in management practices. All daily opera-tions and company policy decisions can incorporate environmental aspects. The ISO norm offers com- panies an effective tool to identify their environmental impact and to improve the environmental situation on a continuous basis.

kWh Kilowatt hour

MS Member of staff, employee. Expressed in persons or calculated in terms of 100% positions.

MWh Megawatt hour. Equal to 1,000 kWh.

PCB Polychlorinated biphenyls are synthetic compounds with problematic effects on people and the environ-ment. They have been banned for decades.

SWICO Swiss Association for Information, Communication and Organizational Technology. The Association is responsible for organizing the disposal of electrical and electronic scrap on behalf of manufacturers and retailers.

SWKI Swiss Society of Heating and Air Conditioning Engineers

UCTE Union for the Co-ordination of Transmission of Electricity. Agency responsible for the operation and expan-sion of the European power transmission network, which supplies approximately 400 million consumers. The agency is made up of 34 member transmission operators from 22 countries.

UPS Uninterruptible power supply. A device which maintains a continuous supply of power when regular utility power is interrupted.

VfU Association for Environmental Management in Banks, Savings Banks and Insurance Companies. Sector-specific agency for environmental management at financial service providers; VfU has defined the opera-tional environmental key values to facilitate a comparative basis (VfU Standard 2005).

VOC Volatile organic compounds. The ordinance for a levy on volatile organic compounds (VOCV) defines these as organic compounds with a vapor pressure of at least 0.1 mbar at 20 °C or a maximum boiling point of 240 °C at 1013.25 mbar.

Glossary

SQS-COC-22349

Credit Suisse GroupPatrik Burri

Martin Eberle

MIBAGNathalie Amail

Claudio BrignoniAdrian Grossenbacher

Bruno Solari

IHM AGHans-Peter Ruosch

Dr Jörn Lützeler

Druckerei Feldegg AG Papier: Aconda, verd silk FSC

Circulation: 500 d

Status of dataJune 15, 2006

ImagesTitle page: Paradeplatz, Zurich

Page 2: Rue de Lausanne 11–19, GenevaPage 6: Talackerstrasse 19, GlattbruggPage 11: Binzmühlestrasse 130, Zurich

Page 12: Talackerstrasse 19, GlattbruggPage 14: Bleicherweg 33, ZurichPage 16: Bleicherweg 33, Zurich

Page 18: Zürichstrasse 137, Dübendorf Page 20: Binzmühlestrasse 130, Zurich

This report has been compiled by MIBAG in cooperation with Credit Suisse Group

Quotations from or copying from the report is encouraged. We kindly request notification or a copy for record.

© Credit Suisse Group & MIBAG Property + Facility Management, July 2006

CREdit SuiSSECorporate Real Estate & Services SwitzerlandEnvironmental Management ServicesP.O. Box8070 ZurichSwitzerland

Tel. +41 44 332 70 03

patrik.burri@credit-suisse.comwww.credit-suisse.com

MIBAG Property + Facility ManagementEnvironmental and Energy Services Edenstrasse 20 8045 ZurichSwitzerland

Tel. 0800 8 64224

energie.umwelt@mibag.com www.mibag.com 99

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