Lehman Brothers - 2007 Annual Report

Sustainability

As a global corporate citizen, Lehman Brothers is committed to addressing the challenges of climate change and other environmental issues which affect our employees, clients, and shareholders alike. It is critical that we continue to develop initiatives to focus on these challenges facing our environment now and in the future.

In 2007, the Firm created The Lehman Brothers Council on Climate Change and appointed Theodore Roosevelt IV, who brings to the role a deep knowledge of environmental issues, as its chairman. By harnessing the Firm’s global resources, the Council is uniquely positioned to accelerate the understanding of climate change issues. In December, the Council held the first of three regional summits in New York. These summits serve to facilitate constructive dialogue on global climate change policy among our clients, government officials and academics.

The Firm is increasingly engaged in efforts to find environmentally sustainable business solutions and develop market-based mechanisms that will respond to and reduce the effects of climate change. Examples of these business models include participationin carbon-related markets and managing socially responsible investment funds which utilize criteria such as identifying environmentally responsible leaders. In addition, we have a strong and growing platform in underwriting, advising, and investing in renewable energy companies. The Firm is using these initiatives to engage the strong interest shown by our employees in addressing environmental issues.

Our environmental initiatives also address how climate change has and will affect our clients. In 2007, Lehman Brothers published two groundbreaking studies on the effects of climate change on business, entitled The Business of Climate Change I and II. The studies, authored by Dr. John Llewellyn, the Firm’s senior economic policy advisor, were written to help clients better understand the effect that climate change will have on the business landscape. They included significant contributions from Lehman Brothers equity analysts who assessed the impact of climate change on specific industry sectors.

The Firm anticipates that regulation will be put in place to address, slow, and reverse the impact of climate change, and that these policies will drive an economic transformation. This transformation represents both opportunities and challenges for the Firm’s clients. The Firm will be well positioned to help our clients take advantage of the opportunities and face the challenges posed by this regulation.

We are also looking inward. In 2007, Charlotte Grezo, an expert in socially responsible business practices, joined the Firm as global head of Sustainability and president of the Council on Climate Change. In addition to overseeing the Council’s activities, she will further the development of the Firm’s own environmental policy and strategy.

We have executed and will continue to execute on initiatives that mitigate the environmental impact of our operations, including investigating and implementing ways to reduce our energy consumption. We are already seeing results. Our headquarters buildings in New York and London have been awarded the Carbon Trust Energy Efficiency Accreditation Scheme, recognizing the Firm’s efforts to manage energy use and reduce carbon emissions.

		SUSTAINABILITY Sustainability As a global corporate citizen, Lehman Brothers is committed to addressing the challenges of climate change and other environmental issues which affect our employees, clients, and shareholders alike. It is critical that we continue to develop initiatives to focus on these challenges facing our environment now and in the future. In 2007, the Firm created The Lehman Brothers Council on Climate Change and appointed Theodore Roosevelt IV, who brings to the role a deep knowledge of environmental issues, as its chairman. By harnessing the Firm’s global resources, the Council is uniquely positioned to accelerate the understanding of climate change issues. In December, the Council held the first of three regional summits in New York. These summits serve to facilitate constructive dialogue on global climate change policy among our clients, government officials and academics. The Firm is increasingly engaged in efforts to find environmentally sustainable business solutions and develop market-based mechanisms that will respond to and reduce the effects of climate change. Examples of these business models include participationin carbon-related markets and managing socially responsible investment funds which utilize criteria such as identifying environmentally responsible leaders. In addition, we have a strong and growing platform in underwriting, advising, and investing in renewable energy companies. The Firm is using these initiatives to engage the strong interest shown by our employees in addressing environmental issues. Our environmental initiatives also address how climate change has and will affect our clients. In 2007, Lehman Brothers published two groundbreaking studies on the effects of climate change on business, entitled The Business of Climate Change I and II. The studies, authored by Dr. John Llewellyn, the Firm’s senior economic policy advisor, were written to help clients better understand the effect that climate change will have on the business landscape. They included significant contributions from Lehman Brothers equity analysts who assessed the impact of climate change on specific industry sectors. The Firm anticipates that regulation will be put in place to address, slow, and reverse the impact of climate change, and that these policies will drive an economic transformation. This transformation represents both opportunities and challenges for the Firm’s clients. The Firm will be well positioned to help our clients take advantage of the opportunities and face the challenges posed by this regulation. We are also looking inward. In 2007, Charlotte Grezo, an expert in socially responsible business practices, joined the Firm as global head of Sustainability and president of the Council on Climate Change. In addition to overseeing the Council’s activities, she will further the development of the Firm’s own environmental policy and strategy. We have executed and will continue to execute on initiatives that mitigate the environmental impact of our operations, including investigating and implementing ways to reduce our energy consumption. We are already seeing results. Our headquarters buildings in New York and London have been awarded the Carbon Trust Energy Efficiency Accreditation Scheme, recognizing the Firm’s efforts to manage energy use and reduce carbon emissions.

SUSTAINABILITY

Sustainability