VERIFICATION STATEMENT

Scope

Environmental Resources Management (ERM) was asked to verify the reliability of the information presented in the MTR Corporation Sustainability Report 2002 (hereinafter the "Report"), which covers the period January 2002 to December 2002, inclusive. The verification covers the stated environmental, health & safety, and social performance for the MTR Corporation Ltd (MTR).

Approach

ERM chose a representative sample of factual statements and numerical data points and confirmed or otherwise, the accuracy of information by reference to appropriate source material, reviewing data management systems and interviewing staff at the MTR's headquarters.

The ERM verification team was independent of the reporting team, which had assisted the MTR in developing the Report structure and producing the narrative text.

Findings

ERM considers that the Report presents a good account of the principal MTR sustainability issues, and provides sufficient information on processes for sustainability management.

Based on the representative sample, we are satisfied that the factual statements and data contained in the Report, including progress against 2002 targets, are correct and provide a fair and balanced assessment of performance.

Recommendations

We encourage the MTR to continue making progress on actions already in place, such as increasing the proportion of quantitative performance targets, whilst considering the development and reporting of key sustainability indicators for year-on-year comparison. This will allow trend analysis and provide ongoing internal and external assurance of performance.

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Dr Andrew Jackson
Managing Director, ERM Hong Kong
9th April 2003