BASIS OF REPORTING The financial performance and economic contribution data includes the accounts of MTR and all its subsidiaries except for a non-controlled subsidiary (see note to the accounts 1D in MTR Annual Report 2003) and have been prepared using the accounting policies used in MTR Corporation's Financial Statements. For more information, refer to www.mtr.com.hk The Environmental and Social Responsibility data is aggregated from various divisions within MTR (Operations, Projects, Property, Human Resource). The source of data is specified accordingly throughout the report. Targets and projections The corporate targets are set through discussions with senior executives and directors. Divisional targets are set through discussions within Divisions and are based on the principle of continual improvement. Environmental targets for Operations and Project Divisions are set in accordance with the ISO14001 certified Environmental Management Systems. Limitations The measurement, calculation and estimation of some of the Environmental and Social responsibility data carry some limitations that cause a degree of uncertainty in relation to the data reported. Limitations include: Different interpretation of reporting guidelines - eg: for greenhouse gases. Measuring, calculating or estimating the data - eg: methods, accuracy and sampling for environmental measuring equipment.