With our growing international business, in particular with developing economies such as China, we are at the threshold of a paradigm shift in our sustainability practices and broader stakeholder engagement processes. Issues with supply chain management, sub-and sub-subcontractors, and the up/downstream impacts on our businesses are complex, legally opaque and at best weak in process monitoring. As such, we have yet fully to absorb and assess the risks and consequences. With so many unknowns, our immediate agenda is internally to formulate policy basics beyond the current Code of Conduct standards, and to gather and observe the best practice of companies already established in China and elsewhere on their framework for CSR. The planned series
of information exchange forums and meetings to be held in the next year will help to define best-practice strategies and procedures to adopt and employ within our own business model.

Moving the social sustainability agenda forward during the year proved challenging. Our efforts focused on the review and assessment of practices and targets that were prioritised according to the corporate growth strategy. The targets for 2004, nonetheless, have been largely attained, providing a degree of progress, in particular on the Code of Conduct and employee buy-in to the change in corporate culture. Our 2005 targets link to the broader planning and necessary marshalling of resources to implement our newly formulated competitive advantage strategy in sustainable practices.