Man Group plc - Corporate Responsibility Report 2007

Our Carbon Programme

• Man Group’s offset programme for direct CO₂ emissions 2005-2006
• Man Group’s carbon programme for employees and their families
• External engagement initiative

Man Group’s offset programme for direct CO₂ emissions 2005-2006
Our offset programme was facilitated by the charity Pure, the Clean Planet Trust, and for the year ended 31 March 2006, we are officially carbon neutral – in fact, strictly speaking, ‘carbon-neutral plus’.

Our offsetting programme followed workplace energy efficiency and reduction initiatives to reduce our CO₂ outputs, and was designed to offset those which remained.

We selected as our offset instruments a United Nations Clean Development Mechanism (CDM) project that is Gold Standard certified (www.cdmgoldstandard.org) and generates CERs (Certified Emission Reduction) credits; and a forestry project (www.envirotrade.co.uk) in Mozambique that meets the Plan Vivo standards and generates VER (Verified Emission Reduction) credits.

Methodology
Direct CO₂ emissions were measured for electricity, gas and business air travel from over 80% of our global employee base, then extrapolated to include the total number of staff, including the Refco team from the time of the November 2005 acquisition. This year we will also be offsetting the contrail emissions from our medium and long haul flights. While the science around this is at a nascent stage, we believe there is sufficient evidence for us to take this action.

The Certified Emissions Reduction project
The 4.5 MW biomass power project in Malavalli, rural India is the first United Nations issued Certified Emission Reductions (CERs) from a Gold Standard certified and verified project. The Gold Standard, endorsed by over 42 international NGOs, exceeds the United Nations’ standard; in particular, it does so in requiring far more stakeholder dialogue, and evidence of positive social effects.

The Malavalli project will issue a total of 77,294 CERs. Man has accounted for 15,000, reserving 2,000 for the Man employee personal carbon offset programme available via the Man employee carbon calculator. All credits purchased will be retired by Pure the Clean Planet Trust and put permanently beyond use by their Trustees for trade in the carbon market.

The Verified Emissions Reduction project
Man Group also this year purchased an extra 7,000 tonnes (the ‘plus’ referred to earlier) worth of offsets to cover any additional emissions we may not have accounted for, from Envirotrade’s Nhambita Community project in Mozambique. The Nhambita Community project aims to regenerate the natural habitat of the Gorongosa National Park, devastated by 16 years’ civil war. These aims align strongly with Man Group’s values of encouraging positive social consequence as well as environmental benefit.

The project meets Plan Vivo standards (www.planvivo.org) – a methodology for enabling small-scale carbon offsetting in ways that support rural communities, addressing the challenge of providing credible, quantifiable carbon sequestration services.

The project was mentioned in HM Treasury’s seminal Stern Review on Climate Change, being cited in its final section, ‘International Collective Action’, as exemplifying the beneficial relationship between emissions reduction activities from land use change and poverty reduction.

As with the CER project, all carbon credits purchased will be permanently retired.

“Our offsetting programme followed workplace energy efficiency and reduction initiatives to reduce our CO₂ outputs, and was designed to offset those which remained. ”

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