ENVIRONMENTAL REPORT1997/98

NOVEMBER 1998

www.csg.ch/ecoreport98

SUISSECREDIT GROUP

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PORTRAITCREDIT SUISSE GROUP AND THE ENVIRONMENT

Credit Suisse Group (CSG) isa global financial services com-pany offering a comprehensiverange of banking and insuranceproducts. Represented on allcontinents and in all majorfinancial centres, it comprisesfour banking business units andone insurance business unit,each of which is geared tospecific customer groups andmarkets.

Bank in transition

Since it published its first environ-mental report in 1996, the CreditSuisse Group has undergone a fun-damental change. On 1 January1997, CS Holding, as it was thenknown � and which consisted pri-marily of the two full-service banksCredit Suisse (CS) and SwissVolksbank (SVB) and the invest-ment bank CS First Boston �became Credit Suisse Group.

Credit Suisse Group merged withWinterthur Insurance (hereafter�Winterthur�) in the autumn of1997, although Winterthur remainsan operationally independent insur-ance company.

Credit Suisse Groupand the environment

About 20 years ago, an environ-mental management system (EMS)was set up in the various companiescomprising what is today CreditSuisse Group. As part of the re-orientation of the Group it was

decided to use the EMS of CreditSuisse, the most sophisticated inthe Group at the time, for the entireCSG.

The environmental managementsystem of the Swiss banking sites iscertified to ISO 14001.

Environmental focal points

In addition to its environmental ef-forts on the operational front (pri-marily aimed at cutting energy con-sumption), CSG focuses mainly onchecking for environmental riskswhen granting credit or insurancecover. Increasingly, major earningspotential and opportunities are alsoemerging in the products sector.

System limit of thisenvironmental report

Unless otherwise indicated, thisenvironmental report refers to thewhole of CSG including Winterthur.The environmental performance

Key financial figures in CHF

Balance sheettotal: 690 000 m

Annual profit 397 m

Key personnel figures

Personnel 62 242

in Switzerland:Banking 21 442Insurance 7 108

outside Switzerland:Banking 13 235Insurance 20 457

Key figures CSG 1997

Cover photo: Juvent SA�s windpower plant on Mont Crosin. See p. 10 for further details of our involvement.

CSG organisational chart: position as of 1 January 1998. Winterthur sites abroadonly include national and company head offices.

evaluation referred to in the opera-tional ecology section covers CSG�sbanking sites in Switzerland anddoes not include Winterthur (refer-ence date 1 January 1997).

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ENVIRONMENTAL MANAGEMENT

In April 1997, Credit SuisseGroup became the first Swissbank and the first major bankanywhere in the world to beawarded the ISO standard14001 environmental certificate.The certification process pro-vides independent confirmationthat the environmental manage-ment system complies with thisstandard and that ongoingimprovement in environmentalperformance has been providedfor.

Main aims

An environmental managementsystem (EMS) conforming to ISO14001 is designed to achieve thefollowing objectives:

pImplementation of definedtargets

pCompliance with all relevant envi-ronmental laws and regulations

pThe steady improvement of cor-porate environmental perform-ance

Our EMS consists of four phasesthat are repeated:

1 Environmental policyEnvironmental policy defines thepriority assigned to environmentalprotection within CSG, as well asrepresenting a commitment to envi-ronmental protection vis-à-vispersonnel, customers (private andcorporate) and other stakeholders.

In signing the UNEP (United Na-tional Environment Programme)Statements for financial institutions(1992) and the insurance industry

(1995), CSG has committed itselfto the systematic incorporation ofenvironmental considerations intoall areas of its business activities.

In the autumn of 1998, our environ-mental policy was updated and ap-proved by CSG�s Chief ExecutiveOfficer. Key changes are the inclu-sion of the Winterthur Group andthe commitment to remaining envi-ronmentally certifiable. Maintenanceof conformity with environmentallegislation was included as anexplicit goal.

The environmental policy will bereviewed every three years, at thelatest in the autumn of 2001.

2 Planning

Outsourcing

The following services in Switzer-land are provided by external part-ners.

pBuilding management

pDecentralised IT systems

pCatering

pStorage and distribution of officesupplies, printed matter andadvertising materials

Contracts and agreements wereconcluded which commit the con-tractors to continuous improvementof their environmental performanceand to compliance with CSG�s strictenvironmental standards. Amongother things, these contractors arerequired to endorse CSG�s environ-mental policy and energy guidelinesand to establish their own energymanagement system. Open com-

munication and co-operation onenvironmental issues plays an im-portant part in this.

Environmental organisationof CSG

Within CSG, environmental activitiesare co-ordinated by the environmen-tal management unit. Specific tech-nical responsibility and the imple-mentation of environmental meas-ures are largely matters for the vari-ous line and specialist units. Thewhole environmental sector is con-trolled by the Environmental Execu-

CERTIFIED TO ISO 14001

Strengths

pISO 14001 certification ofall CSG�s Swiss bankingsites since April 1997

pEnvironmental policyextended to Winterthur

pOutsourcing: ecologicaltargets agreed

Weaknesses

pSystematic environmentalmanagement so far only in-troduced in Switzerland

pOrganisational structures andprocedures in environmentalmanagement still tied stronglyto specific individuals

Next steps / objectives

pMaintenance of eligibility forcertification

pExtension of environmentalmanagement system to sitesoutside Switzerland andsubsidiaries

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tive Board which handles strategicand business policy tasks. Chairedby CSG�s Environmental ExecutiveBoard, this Working Group includesrepresentatives from all businessunits and from the EnvironmentalManagement unit.

3 ImplementationIn implementing environmental man-agement measures, CSG intends toadhere to the environmental policyobligations it has assumed. Compo-nents of the implementation phaseinclude:

pEnvironmental controlling

pEnvironmental standards

pTraining of personnel

pEnvironmental report

4 Monitoring

Internal audits

Over 25 sector-specific checklistswere prepared for internal audits. Inindividual cases, external specialists

were also brought in to carry outchecks. Remedial measures areintegrated in eco controlling.

Certification process

The certification audit took place inApril 1997. The focus was on thepractical implementation of the envi-ronmental commitment on the partof the line organisation. The audi-tors questioned 50 key environmen-tally-relevant personnel at headoffice in Zurich, in four regions andin certain branches

The audit report produced by thecertifying company (SGS-ICS) con-firms the success of CSG�s environ-mental management. As well asbearing out the evidence of steadyimprovement, the report also listsremedial measures.

The certificate is valid for threeyears providing that the annualmonitoring audits are completedsuccessfully. The Group passed thefirst audit in June 1998.

Benefits of certifiedenvironmental management

The environmental certificationhas enabled our institution to beincluded in the portfolios of environ-mentally oriented investors. In addi-tion to cutting costs and reducingrisks, this has created furtheradded value for our shareholders.

Certification enhances the credibilityof CSG�s environmental manage-ment program.

Future and trendsValidated environmental perform-ance evaluations and certificatedenvironmental management systemsare increasingly important in as-sessing whether a company is best-in-class. Accordingly, central impor-tance is attached to questions fromenvironmentally-oriented investorsconcerning the introduction of envi-ronmental management systemsand their possible certification, aswell as management involvementand endorsement and support forproduct ecology.

Moreover, demonstrating the ben-efits of the EMS will gain in impor-tance.

Key environmental figures according to the VfU standard for Credit Suisse Group(Switzerland), 1996. Emp. = employees.

Also on the Internet

pOverview of EMS in chart form

pEnvironmental policy

pCSG�s environmentalorganisation

pMilestones

pBenefits of certified environ-mental management

ENVIRONMENTAL MANAGEMENT

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In the field of environmentalpolicy, we have committed our-selves to gradually incorporatingthe �environment� factor intonew and existing services andproducts. The main focus of ourefforts in the field of productecology is on risk managementboth in the context of grantingcredit and of providing third-party liability insurance cover.We see earnings potential andopportunities in the sector ofenvironmentally-oriented finan-cial investments and niche prod-ucts.

The environment and products

CSG�s environmental activities inthe products sector can be classi-fied into the three areas of environ-mental risks, investment businessand niche products.

1 Environmental risksEnvironmental risks are likely to beencountered in the following threeareas of business:

pCredit Suisse (granting of loansand real estate ownership)

pCredit Suisse First Boston(project financing)

pWinterthur (third-party liabilityand property insurance and realestate ownership)

Environmental risks associatedwith the granting of loans andwith real estate ownership

Credit Suisse only conducts busi-ness with corporate customers inSwitzerland. Since 1992, it hasbeen systematically analysing allloan applications for environmentalrisks such as contaminated sites.Environmental hazards inheritedfrom the past can be an importantfactor not only in the field of loansbut also in the valuation of real es-tate.

Where necessary, the specialistenvironmental risk unit assists ourcredit specialists in their evaluationand in recommending measures.

In this way, we also create addedvalue for many of our customers:in the context of the backgrounddocumentation and information re-quired for credit checks, environ-mental issues are systematicallyreviewed in order to pinpoint envi-ronmental risks at an early stage.If a problem arises, the bank isavailable to the customer as acompetent partner with contactsto specialists and the authorities.

Environmental risks relatingto project financing

Environmental risks may also arisein connection with project financing.This mainly affects Credit SuisseFirst Boston in its role as a financ-ing partner. In most cases the fi-nancing is undertaken with otherbanks acting jointly with the WorldBank; in examining the risks, theirenvironmental standards are applied

accordingly. In international busi-ness, where necessary, CreditSuisse First Boston consults exter-nal specialists to enable it to tailorits response to differing operatingconditions and legal frameworks.

Strengths

pRisk management in the con-text of granting credits and ofthird-party liability and propertyinsurance

pTwo powerful special funds:Eco Efficiency (Lux) and Fel-lowship Trust (UK)

pOpen for innovative, environ-mentally oriented products,e.g. WinCAT and EnergyContracting

Weaknesses

pTraining and support materialin investment business still toopiecemeal

pReview of environmental risksand opportunities in projectfinancing not adequatelysystematised

Next steps / Objectives

pGreater sensitisation and infor-mation concerning productswith an environmental impact

pStructured procedure for as-sessing environmental risksand opportunities in projectfinancing

PRODUCT ECOLOGYA CHALLENGE FOR THE FUTURE

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Environmental risksat Winterthur

In the insurance industry, the envi-ronmental debate centres on thepossibility of climate changes, whichare generally expected to lead to anincrease in natural disasters withrepercussions for property insur-ance. Another major topic is envi-ronmental liability insurance. Thishas prompted Winterthur to addressenvironmental issues and takemeasures to improve risk control aspart of its subscription and tariffpolicy, in product management andhandling of claims, and in its envi-ronmental services.

One of Winterthur�s main interestslies in overcoming the conse-quences of natural disasters andenvironmental catastrophes from atechnical underwriting point of view.On a global scale, they are respon-sible for the lion�s share of all in-sured property damage. Since themid-1980s, natural disaster claimshave been on the rise, though thefluctuations from one year to thenext are substantial.

2 Investment business

Eco efficiency

In 1990, CSG became the firstSwiss bank to launch an environ-mental technology fund (Oeko-Protec). In the spring of 1997, anew fund management reviewedthe investment concept and reposi-tioned the equity fund under thename Credit Suisse Equity Fund(Lux) Eco Efficiency.

The fund invests worldwide in com-panies that are successfully imple-menting the concept of eco-effi-ciency. Sustainable Asset Manage-ment (SAM) AG, Zurich, seeks outeco-efficient companies on the ba-sis of a rating system which it hasdeveloped itself.

The stocks proposed by SAMundergo final selection � takingaccount of the usual fund principles� at Credit Suisse Asset Manage-ment (CSAM) in a multistage pro-cess. In this way, CSAM investsworldwide in listed companies in allsectors that stand out by virtue oftheir above-average environmentaland financial performance.

The yield outlook is highly promising:since the fund�s repositioning, it hasposted above-average performanceby international comparison. Meas-ured against traditional funds, itsmarket share is still marginal.

Fellowship Trust

In the UK and the USA, ethically/environmentally-oriented funds havealready been established for sometime. In the Credit Suisse FellowshipTrust Fund of Credit Suisse AssetManagement Funds (UK) Limited,CSG has a fund which has wonseveral awards on the strength ofsuch criteria. The Fellowship Trust,which is only available in the UK, isa country-specific fund that hasbeen investing in selected small andmedium-sized companies since1986. The Fellowship Trust com-prises a total volume of over 200

PRODUCT ECOLOGYMARKET SUCCESS WITH GREEN FUNDS

million Swiss francs (July 1998). Itssuccess shows that ethically/envi-ronmentally-oriented funds aremeeting a market need.

Sustainable PerformanceGroup (SPG) goes public

SPG shares were floated on thestock market by Credit Suisse FirstBoston in the summer of 1997.It successfully invests in companieswhose products and services gener-ate economic, environmental andsocial benefits and in doing soachieve competitive advantages.Credit Suisse First Boston is con-sulted for financial analysis.

Also on the Internet

pInformation on the environ-mental risk unit

pExamples of environmentalrisks

pInformation on risk manage-ment at Winterthur

pNatural disasters and climatechange - steps taken byWinterthur

pUp-to-date information onthe Eco Efficiency Fund andFellowship Trust

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3 Niche products

WinCAT � catastrophe bond

Innovative financial products allowthe insurance industry to hedgeagainst environmental risks on abroader basis and offer investorsdiversification opportunities outsidetraditional markets. An example ofsuch a product is Winterthur�s CatBond, a convertible bond with aspecial additional condition at-tached: the annual coupon paymentis cancelled in years in which hail orstorm damage is above a fixed limit.To compensate for this risk, inves-tors receive a coupon bearing ahigher rate of interest.

Energy contracting

This financing and operating modelinvolves commissioning a specialistoutside firm to supply energy andmaintain facilities. Instead of buyingoil, gas and electricity, the energyuser purchases heat, refrigeration,light or steam � in other words en-ergy services.

This enables companies to avoidexpensive investments, for examplein modern heating systems, while onthe supply side economies of scaleand technical expertise can be sys-tematically exploited to supply heaton an energy- and cost-efficientbasis.

In the context of the Swiss FederalGovernment�s �Energy 2000� in-vestment programme, Credit Suisseoffers contract-leasing models. Forlarger investments, we also examineproject financing solutions.

Future and trendsThe securitisation of environmentaland health risks will become in-creasingly common. One exampleof this trend is emission certificates.These certificates are securitiesthat entitle their holders to emit setquantities of pollutants into theenvironment over a given period oftime. They are sold (or issued) toindividual companies by the govern-ment or an independent national orinternational authority and can sub-sequently be traded. Depending onthe reduction target for the eco-nomy as a whole, the authority inquestion can influence the quantityof emission certificates throughpurchases. Accordingly, providers offinancial services are called upon toestablish a market and train marketparticipants.

Emission certificates are character-ised by high environmental targetattainment levels on the basis offree market mechanisms. Forbanks, the trading of certificatesalso opens up new business oppor-tunities.

We are actively involved in researchand discussion aimed at developingecologically-oriented financial prod-ucts.

Trading of emission certificates: a newarea of business for banks?

There is a huge need for finance tofund the implementation of interna-tional environmental agreements(Convention on Climate Change,Biodiversity Convention). For finan-cial service providers, this meansgrowing opportunities to participatein the financing of environmentalprojects or projects beneficial to theenvironment in close co-operationwith multilateral banks. CSG wantsto tap into the opportunities inthese business areas.

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Our company has stepped up itsefforts in operational ecologyeven during the restructuringof CSG. Our extended 1996-97environmental performanceevaluation for Credit SuisseGroup (Switzerland) shows a fallin paper consumption and a fur-ther rise in the consumption ofpower and heat. The evaluationhighlighted a number of areaswhere improvements could bemade in the collection of data.One of the next steps must beto ensure that the environmen-tal targets set for our contrac-tual partners are adhered toand implemented.

Operational ecologyreflected by the reorientation

In recent years, CSG has under-gone several changes with a majorenvironmental impact. Following thereorientation of our banking busi-ness on 1 January 1997, August1997 saw CSG merge with Winter-thur. This increased the size of ourworkforce and real estate holdingsboth within Switzerland and in par-ticular abroad.

A separate environmental perform-ance evaluation was prepared onthe environmental repercussions ofthe reorientation of our bankingbusiness. The restructuring processhad less impact on the environmentthan one week of ordinary bankingoperations.

Because of the increase in changesof responsibilities and personnel andowing to changes in the branchnetwork, the reorientation has made

OPERATIONAL ECOLOGYIN THE CHANGING COMPANY

it more difficult both to co-ordinateenvironmental management and tocollect environmental data.

A number of � ecologically signifi-cant � technical functions were out-sourced by CSG to external firms.Thus, from January 1998, MerkurImmobilien Bewirtschaftungs AG(MIB AG) took over building man-agement operations, an area whichCSG had previously handled itself inSwitzerland.

To guarantee monitoring and controlof operational ecology in the future,CSG needs to be able to rely on theco-operation of the building man-agement company. Under its con-tract, MIB AG has undertaken tosteadily reduce energy consumptionlevels and to actively co-operate inthe implementation of the environ-mental targets through systematicenvironmental controlling, as well asother means.

Since mid-1998, MIB AG has alsobeen servicing properties occupiedby Winterthur in Switzerland. Thismeans that the same environmentalrequirements apply as for the prop-erties of the banking business units.

IT Services, which belongs to CSG,is taking over the management ofour decentralised computer systemswhich consist of around 43,000computers, 15,000 printers and1,400 networks in Switzerlandalone. As well as being responsiblefor installation and maintenance, ITServices also sees to the evaluationand disposal of equipment.

Environmental performanceevaluation of Credit SuisseGroup (Switzerland) 1996/97

Extended system limit

Compared with our first environmen-tal performance evaluation in 1994,the system limit has been extendedto include all bank offices of CSG inSwitzerland but not Winterthur,which joined CSG only after thecut-off date of 1 January 1997.

This system covers around 470sites with an energy reference areaof 1,200,000 m² and 20,700 em-ployees.

Strengths

pExpansion of the environ-mental performance evalua-tion in terms of breadth anddepth

pReduction in paperconsumption

Weaknesses

pIncreased consumption ofheat and electricity

pReorientation made datacollection and comparisonmore difficult

Next steps / objectives

pEnvironmental controlling tobe increasingly geared toenergy saving measures

pImproved data management

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Saving energy is a crucial factor in improving the environment.

Also on the Internet

pEco Performance 1996-97

pEnergy Guidelines

pVfU key figures together witha comparison with otherbanks

pUetlihof certification fornature-compatible design

Our first survey of stocks of fireextinguishing and cooling agents(halon and freons) at all our fixedinstallations brought to light an ac-cumulation of freon losses. Reme-dial measures have been initiated.

For our evaluation we used the en-vironmental scarcity method (EIPmethodology) according toBraunschweig and Müller-Wenk.

Changes since the 1994environmental performanceevaluation

As a result of the new corporatestructure and the extended systemlimit of the environmental perform-ance evaluation, direct comparisonsbetween the 1994 and 1996 per-formance evaluations are not alwaysappropriate. Nonetheless, certaintrends are emerging.

As a result of the expansion of ourbusiness activities and the increas-ing penetration of technology intonew areas, there was an increase inconsumption of electricity, heat andwater in absolute terms. The reduc-tion in paper consumption is attrib-utable to steps taken to encouragethe use of electronic media.

The lion�s share of CSG�s directenvironmental impact still stemsfrom the provision and consumptionof electricity and heat. Accordingly,our medium-term priorities in thefield of operational ecology focus onreducing these energy flows.

The targets set in our 1995-96environmental report have not yetbeen achieved everywhere. There isstill room for improvement in the

fields of data collection and costtransparency which we shall now beaddressing in co-operation with MIBAG.

Future and trendsThe co-ordination and responsibili-ties of the two operational ecologyprogrammes run by Credit Suisseand Winterthur will be aligned onthe new organisation. By sharingcommon logistics platforms, we aimto exploit as many synergies aspossible. So far, no operationalecology organisation has been es-tablished for the many sites outsideSwitzerland, most of which aresmall. In the longer term, in additionto the Swiss system, we also aim toinclude sites outside Switzerlandthat are relevant in terms of opera-tional ecology. This plan affectsmainly Winterthur, which employsmore personnel abroad than withinSwitzerland.

Our environmental aims envisagereducing our consumption of energyand resources for materials andservices. We give preference to theuse of durable materials and prod-ucts and aim to increase recyclingof the items used. To this end, whenprocuring materials, we not onlyexamine their environmental compat-ibility but also the manufacturer�secological commitment.

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COMMUNICATIONGREATER USE OF ELECTRONIC MEDIA

Through direct contact with ourinternal and external partners,we help to strengthen environ-mental awareness. Through anexchange of experience anddata, Credit Suisse Group alsosupports the environmentalefforts of the business and re-search communities. Becauseof this commitment, CreditSuisse Group is perceived bythe public as an environmen-tally-aware company. In future,we shall be redoubling ourtraining and communicationefforts. These include our pres-ence on the Internet.

External communicationsand commitments

CSG is actively involved in numer-ous national and international bod-ies concerned with environmentalprotection, including the UnitedNations Environment ProgrammeUNEP and the Swiss Bankers As-sociation�s Working Group on theEnvironment. We organise eventsand lectures on environmentally-relevant topics such as environmen-tal management and credit risks forcorporate customers. We also pub-lish articles in specialist journals onenvironmentally-relevant topics.

Since the summer of 1998, wehave been communicating via theInternet as well as in printed form.

We support scientific research. Wevalue our links with NGOs andother interest groups.

Sponsorship and contributions

CSG does not regard its social andenvironmental commitment as spon-sorship in the sense of a marketinginstrument but as a core compo-nent of its corporate culture. Wherewe sponsor a project, we makeavailable our environmental exper-tise and facilitate environmentally-compatible measures.

We support selected environmentalorganisations with affiliations andfinancial contributions and we alsosupport specific research or devel-opment projects. We have, for ex-ample, made a significant contribu-tion to the guidelines produced bythe Swiss Bankers Association onenvironmental management inbanks.

In the context of its support forenvironmentally-friendly technolo-gies, Winterthur provides supportfor the wind-power plant on MontCrosin. This modern plant is the firstin Switzerland to generate electricityfrom wind energy on a significantscale. As the supplier�s first majorcustomer, Winterthur has committeditself to consuming 200,000 kWhper year over the next ten years atan additional cost of CHF 30,000per annum. We are prepared to paytwice the usual price for the invest-ment in this environmentally-friendly,renewable energy.

Strengths

pPositive media response toour environmental activities

pActive involvement inenvironmental bodies

Weaknesses

pEnvironmental awareness stillinsufficient in certain areas

Next steps / Objectives

pStrengthen communicationby use of electronic media

pFormulate and implementtraining concept

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In environmental communication, we leave no one out in the cold.

Internal communications

Our ecological aims can only beachieved if everyone is familiar withthese aims, creating a correspond-ing corporate culture. The basis forsuch a culture is dialogue, alongwith regular information and trainingon the subject of the environment.In our efforts, we encourage theindividuals we are addressing to actin an environmentally-aware mannerin their private lives as well.

The steadily growing �EnvironmentalCircle�, a forum for staff interestedin environmental issues, makes akey contribution towards achievingthis aim. Its members, who nownumber 1,300, receive tips andinformation on environmental issuesfrom the environmental manage-ment unit; events are also organisedfrom time to time. Our aim in settingup this informal network is to anchorenvironmental awareness on asbroad a basis as possible.

We also provide information in theform of articles in various staffmagazines and external trade publi-cations. In order to foster environ-mentally-compatible conduct in theworkplace, we distribute copies ofour environmental standards � re-cently issued in the form of a handybookmark � to all personnel.

Further training

We attach importance to trainingour personnel in environmentally-sound behaviour. To date, trainingevents have been staged coveringthe areas of building and materialsmanagement, catering and trans-port. We also train our loan special-ists to identify environmental risks.We will be expanding our trainingstrategy in order to strengthen ourin-house training.

Also on the Internet:

pOur affiliations

pSBA guidelines on environ-mental management in finan-cial institutions

pOur environmental policy

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In our second environmental report,we provide our staff, customersand shareholders, as well as eco-logically-oriented investors and in-terested members of the public,with information on our commitmentto the environment.

In April 1997 our environmentalmanagement system in our Swisslocations was awarded the ISO14001 environmental certificate.We are extremely pleased to be thefirst Swiss bank and indeed the firstbank anywhere in the world to havebeen awarded this certificate. Thisdistinction is helping to strengthenour good reputation among ourstakeholders.

CSG is one of the first financialservice providers to have committeditself to comprehensive environmen-tal protection and we want to con-tinue to play a pioneering role in thefuture. Our aim is to find ways ofintegrating environmental considera-tions into our banking and insurancebusiness. Having already achieved agood number of successes in thefield of operational ecology, we shallincreasingly be turning our attentionto product ecology and the newrisks and opportunities that exist in

the field of climate change. Wewant to utilise the major growthpotential that exists in the field ofecologically-oriented asset manage-ment. The very good performanceof our two environmental funds EcoEfficiency and Fellowship Trustshows that we are on the right trackin this respect. A special challengethat we need to address is theevaluation of ecological risks in thecontext of project financing.

As regards expanding our environ-mental management system andintroducing new cost-cutting meas-ures, we shall increasingly focus onour major sites outside Switzerlandas well.

A process of transformation is tak-ing place not just within CreditSuisse Group (CSG), but through-out the whole media scene. Wehave therefore decided to breaknew ground with this environmentalreport in publishing this printed ver-sion, which is a summary of the fulltext now available in both Germanand English on the Internet atwww.csg.ch/ecoreport98. As wellas saving paper, this approach alsoensures that you always have ac-cess to our most up-to-date infor-mation.

We would like to thank everyonewho helped produce this environ-mental report. We would also beinterested to hear your views andconstructive criticisms; we look for-ward to your feedback.

For further information and toorder additional copies:

Credit SuisseEnvironmental Management, CCUEP.O. Box 100CH-8070 Zurich

Tel. ++ 41-(0)1-333 73 33Fax ++ 41-(0)1-333 76 33

E-Mail: csg.eco@csg.chhttp://www.csg.ch/ecoreport98

ProjectteamOtti Bisang, Patrik Burri,Thomas Frei, Nick Marolf,Bernd Schanzenbächer(Environmental Management)

Less waste, more information: wewould be grateful if you could passthis report on to others or circulateit.

Please do copy or quote from thisreport: we would appreciate notifi-cation or a specimen copy of yourarticle. C

CU

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DEAR READER

Lukas MühlemannChief Executive Officerof Credit Suisse Group

Peter LienhartMember of the CS Executive Boardand Environmental Officer of CSG

Validation by SGS-ICS AG

�We have verified the correctnessof the statements in the 1997/98environmental report of CreditSuisse Group and, where neces-sary, have requested that proof bepresented.We hereby confirm that the reporthas been prepared with the neces-sary care, that its contents arecorrect, that it describes the essen-tial aspects of the environmentalmanagement system at CreditSuisse Group and that it reflectsthe Group�s actual practices andprocedures.�

Elvira Bieri and Dr Franz HeinzerZurich, 19 October 1998