GE 2005 Citizenship Report GE Has a Heritage As a Performance Company

Our Actions

GE 2005 Citizenship Report GE has a heritage as a performance company. In simple terms, this means that we set challenging growth targets and deliver on what we say we will do. We measure our progress by tracking results against our goals. We recognize that our actions speak louder than our words.

Naturally, we measure our Company’s performance through forward-looking targets. GE has set a 30% GHG intensity financial results and stock price. But we also view how that reduction goal by the end of 2008, along with a 1% absolute performance is achieved in a broader context: the health, safety reduction by the end of 2012. Progress will be measured against a and opportunities for workers, the impact of our operations on 2004 baseline. We believe this report represents a significant step the environment and communities, our interaction with forward in our disclosure and transparency and look forward to governments and regulatory agencies around the world, and our engaging our stakeholders on its content. We have primarily compliance with legal and accounting rules. Our goal is to grow designed this content as a Web-based report (visit www.ge.com/ responsibly while engaging stakeholders. citizenship) and intend to keep this site updated as new issues arise, new targets are set, or new goals achieved. We have applied GE’s characteristic rigor in delivering our first Citizenship Report. This report provides a clear view of our GE has always been driven to perform and be among the best actions: our goals, measures and progress, as well as an honest at what we do. Today, in an increasingly global and transparent discussion of our challenges. You will find a myriad of metrics world, we aspire to perform against all of our citizenship measures. throughout the report, including our workplace injury and illness Every day, in businesses and countries around the world, we take rates, greenhouse gas (GHG) emissions, total energy use, and actions to align our performance ever closer with the standard of diversity profile. We are continuously re-examining our metrics what it means to be a good and trusted world citizen. to ensure they are relevant, comprehensive and allow us to set TABLE OF CONTENTS

Section 1: Overview Section 6: Globalization 1.1 A Letter from Jeff Immelt, 6.1 GE Around the World 41 Chairman of the Board and CEO, 6.2 Emerging Economies 42 General Electric Company 3 6.3 Job Migration 42 1.2 About This Report 4 6.4 On Human Rights: 1.3 On Citizenship: A Letter From Ben Heineman, A Letter from Bob Corcoran, GE Senior Vice President for Law and Public Affairs 4 GE Vice President of Corporate Citizenship 43 1.4 Focus Areas 10 6.5 Human Rights 44 1.5 Business Directory 12 1.6 Stakeholders 13 Section 7: Community 7.1 Philanthropy 46 Section 2: Governance 7.2 Volunteerism 50 2.1 Board 17 7.3 Product and Service Donations 52 2.2 Governance of Citizenship 17 7.4 The Indian Ocean Tsunami 53

Section 3: Compliance Section 8: Customers, Products and Services 3.1 The Spirit & Letter 19 8.1 Customers and Markets 55 3.2 Ombudsperson Process 20 8.2 Product Use Issues 59 3.3 Legal Processes and Systems 21 8.3 R & D 61 3.4 Financial Processes and Systems 23 Section 9: Suppliers Section 4: Public Policy 24 9.1 Supply Chain Standards 64

Section 5: Environment, Health and Safety Section 10: Investors 65 5.1 Policy 27 5.2 Operating Systems 28 Section 11: Employees 5.3 EHS Tools 29 11.1 Workforce Information 67 5.4 Training and Communication 29 11.2 Employee Relations 67 5.5 Metrics to Measure Progress 30 11.3 Training and Development 71 5.6 Climate Change 35 11.4 Diversity and Inclusiveness 72 5.7 Waste 37 11.5 Privacy 74 5.8 Remedial Responsibilities 37 11.6 Work/Life Flexibility 74 5.9 Excellence Programs and External Recognition 39 Section 12: Our Commitment 75

Section 13: GRI Index 76 Section 1 Overview

Dear Friends, GE is also looking at demographic trends that will create global GE’s heritage of leadership spans the terms of nine chairmen, needs and business opportunities in the years ahead. One generations of employees and decades of business transforma- compelling example is reflected in healthcare; as people across tion. We have a history of firsts in technological innovations and the world are living longer, more of them are suffering from in management practices that have influenced the way busi- diseases including Alzheimer’s, heart disease and cancer. GE has nesses grow and lead. And we are known for a performance invested in businesses that give it the scale and broad reach culture that consistently delivers results. But these accomplish- needed to transform the way medicine is practiced, and we are ments alone will not ensure our leadership in the future. Leaders developing more advanced programs that can result in much and companies that seek to continue to lead must perform with earlier diagnoses and more specifically targeted therapies. GE an unyielding integrity that earns the trust of our stakeholders — also continues to invest research and development dollars in integrity in our relations with customers and suppliers; integrity in technologies to offer greater access to and higher quality of care. our disclosure to shareholders and creditors; integrity in our products; integrity in our relationships with our employees; integrity These are cases where a lack of resources and a surge in in our compliance with legal and financial rules; and integrity in demographic trends are directing our business strategy while our interactions with regulators, media and communities. also allowing us to solve real customer problems that can contribute positively to the quality of life. To me, opportunities to GE has consistently refined and increased its citizenship efforts do business and do good are not mutually exclusive, nor are as the Company has grown. So while this report presents they less valuable for having a positive business impact. This progress in our long-standing efforts in areas such as compli- marriage of business opportunity with global need can create ance, and environmental health and safety, it also illuminates a model that our own Company and others will see as an two areas in which we believe GE can proactively and positively opportunity to deliver more than financial performance and influence the practice of business and its impact: 1) governance have a far-reaching impact. and 2) global natural resources and demographics. GE, by virtue of its products and services, and its performance, Governance: plays a vital role in both business and society. In fact, I believe Making Integrity Visible that we have the opportunity to make an impact that few Over the past few years, we have made substantial progress in companies can — in ways that improve how we live and how we our governance practices and strengthened our long-standing work. However, we are still a company working to stay competi- commitment to performance with integrity. We have substantially tive, return value to shareholders, develop our employees and increased disclosure and improved transparency, and we have make a positive difference to all of our constituents. This is never implemented controllership processes ahead of regulatory an easy balance. But I am an optimist. As a learning company, timelines. Our engaged and independent board has led the effort GE will continue to examine where we can make a difference, to align CEO and executive compensation with investor interests. and how we can improve. We are committed, to performance with integrity and to being a good global citizen. Global Resources and Demographics: Investing to Meet Future Needs By taking a broad view of fundamental global trends, including energy consumption, the growing need for more renewable energy sources, and the increasing scarcity of potable water, GE can help address important global issues while laying the foundation for our future growth. Our Company is developing wind Jeffrey R. Immelt and water technologies that provide renewable energy and clean Chairman of the Board water, and is developing more energy-efficient products such as and Chief Executive Officer hybrid locomotives, gas turbines and ENERGY STAR appliances.

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1.2 About This 1.3 On Citizenship: A letter from Ben Heineman, Report GE Senior Vice President for Law and Public Affairs

Although GE has published summary documents detailing its Good corporate citizenship has a special urgency today because performance in environmental health and safety, this report corporations need to regain and secure the trust of investors provides a more extensive view of GE’s approach to corporate and other key stakeholders. citizenship. It includes our views on globalization, our work in the community, our environmental, health and safety performance, This trust has been eroded by the string of scandals that have our approach to compliance, our products, our research and been white-hot front page news, not just business page news. development investment, our commitment to our employees The corporate checks and balances that purportedly serve the and other stakeholders, and the areas in which GE is leading public have been under withering attack, and for good reason. and those where it can improve. This report also addresses GE’s Company management, boards, accountants, lawyers, ﬁnan- worldwide operations and relates to the 2004 ﬁscal year. ciers, regulators, analysts and the business media have been found wanting in notorious cases. It is incumbent on corpora- The Global Reporting Initiative (GRI) 2002 Sustainability tions to demonstrate that these are not systemic problems, Reporting Guidelines have been one of a number of resources infecting free enterprise, but a discrete number of cases (still too used to inform the development of this report — a very important many) involving a few. one (http://www.ge.com/en/citizenship/overview/meaning.htm). We have used the GRI Reporting Principle of relevance (or But, good citizenship has a more positive and more enduring materiality) to help decide what issues to include in this report purpose than countering the ills of the moment. In a phrase, it and have covered the GRI core indicators that we believe are sets a challenging goal — high performance with high integrity — most relevant to GE and its stakeholders. for successful companies and, indeed, for 21st century capital- ism. In my view, it has three key interrelated dimensions.

1 Strong economic performance over a sustained period of time. Such long-term performance provides myriad beneﬁts to innumerable shareholders, creditors, employees, retirees, customers, suppliers and communities.

2 Rigorous compliance with fundamental accounting and legal requirements. Sustained economic performance must be built on the foundation of rigorous compliance with all ﬁnancial and legal rules — and on compliance systems and a compliance culture which require tremendous time, effort, resources and, most importantly, leadership.

3 Going beyond compliance. Supporting ethical actions and the reasonable concerns of stakeholders where there are opportunities to create beneﬁt for society and the long-term health of the enterprise.

GE brings to each of these dimensions of corporate citizenship our characteristic rigor — goal setting, systems building, detailed processes, meaningful metrics, thorough auditing and then continuous improvement. This system and process rigor suffuses — and makes concrete and real — the three dimensions of GE corporate citizenship.

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1. STRONG, SUSTAINED ECONOMIC PERFORMANCE Shareholders. We have 10.6 billion shares outstanding and more than 5 million Discussions of corporate citizenship and corporate social shareholders — we are the most widely held stock in the world. responsibility may ignore completely the extraordinary benefits About 42 percent are individuals, including nearly 40,000 GE to literally millions of people conferred by a company’s success- retirees. And many of our institutional holders are pension funds ful and sustained economic performance — and also can ignore which, in turn, serve individuals who will receive or who are the painful impact of a corporation’s poor performance (as when receiving retirement benefits. Thus, millions of retirees directly companies cannot meet their pension obligations or injure all or indirectly hold GE stock and rely on our performance. If stakeholders by imploding). Yet, in my judgment, the first task of $1,000 had been invested in GE stock in 1993 and the dividends being a good corporate citizen is to be a successful economic reinvested, it would have increased to $5,250 by the end of entity for the near-, mid- and long-term because in doing so the 2004, an average annual growth rate of 16%. corporation creates vital benefits for many.

In our case, GE is a highly complex social and economic Creditors. organization that serves millions upon millions of stakeholders. At the end of 2004, GE had more than 11,000 holders of its debt, GE’s economic growth, our profitability, our cash flow, our largely institutional holders but with a growing retail market of resulting financial structure and market capitalization serve individual investors. This debt, made safer by GE’s Triple-A these stakeholders in direct and vital ways, support the commu- ratings, is used, in part, to finance our Consumer Finance and nities in which they live and, to take it to the highest level, Commercial Finance businesses that, in turn, provide financial contribute to a stable and peaceful global economy. services to literally millions of individuals and businesses and, in so doing, stimulate economic growth. In the past 10 years, GE’s revenues have grown from $60 billion to more than $150 billion; our net income from $4.7 billion to $16.6 billion; our cash flow from operating activities from $6 Employees. billion to more than $15 billion; and our market capitalization At the end of 2004, GE had a total of 307,000 employees with from $87 billion to more than $386 billion. This performance is more than 700,000 dependents, comprising a total GE family of typical of the only company to be part of the Dow Jones more than one million. More than half of those employees work Industrial Average since that index was started in 1896. in the U.S. and have a total payroll of more than $16 billion. After taxes and savings, the spending of these employees provides But these general numbers have a very human face and provide significant economic support to their communities and supports real and diverse benefits. tens of thousands of local jobs. And these GE jobs are highly valuable: while average U.S. compensation and benefits grew 3.9% percent from 1994-2003, GE’s compensation and benefits grew 5% — and our average compensation and benefits were two and a half times the national average in 2003.

Retirees. GE bears a critical responsibility to its retirees and to those who have vested benefits but have yet to receive them. In our principal pension plan, we have 205,000 retirees and beneficia- ries, as well as 315,000 individuals who do not yet receive benefits. In addition to these 520,000 people to whom we owe a duty under our principal plan, there are 82,000 other participants in plans inherited from acquired companies. So, today, we are responsible for retirement payments to more than 600,000 people.

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Customers. 2. RIGOROUS COMPLIANCE WITH GE’s direct and indirect customers number in the hundreds of FINANCIAL AND LEGAL RULES millions. For example, GE Transportation has 17,800 engines on more than 8,100 aircraft at more than 400 airlines that fly Rigorous compliance with financial and legal rules is the second 660 million passengers each year. GE Healthcare Technologies dimension of good corporate citizenship. This compliance is the has 32,000 diagnostic imaging machines at 15,000 direct foundation on which GE is built. Lack of compliance with customers around the world who conduct more than 230 million fundamental financial and legal rules is at the root of all the scans per year. GE Energy has an installed base of nearly 3,000 recent corporate scandals — as the arrests and, more important- turbines serving 350 worldwide customers, providing capacity ly, the flood of guilty pleas and convictions make clear. for nearly 700 gigawatts of efficient and reliable energy — creating nearly one third of the world’s electricity. GE Consumer In some discussions of corporate social responsibility, the Finance has more than 100 million cardholders or other greater focus is on “ethics” with “compliance” downplayed customers across the globe. And GE Commercial Finance has because compliance is something companies are required to do. 900,000 business customers in more than 30 countries that, in But, in my view, compliance should be viewed as another turn, serve individuals numbering in the tens of millions. fundamental tenet of corporate citizenship because it does not happen automatically: it requires a tremendous expenditure of time, effort and resources to build into business processes. Most Suppliers. importantly, it requires the deep, visceral engagement of Each year, GE buys approximately $50 billion in materials, business leaders — not just the legal and finance staffs. It components, goods and services. These expenditures support requires conscious choice and focused effort to do well. And the millions of supplier jobs that, in turn, support communities consequences of a compliance failure can have devastating around the world. effects on all stakeholders.

The Core of Business Leadership Profits. Compliance is at the core of business leadership because Corporate profits are often the subject of scorn from critics, internal pressures combined with external trends require populist public officials and the general media. But this view is performance with integrity: incorrect. In 2004, GE’s after-tax profits were $16.6 billion. Assume for the moment that this equates to available cash we • Internal pressures such as demanding customers, the desire to had during that year. What did we do with the money? More make cash flow and earnings numbers, tough global markets than 50 percent ($8.5 billion) was distributed to our five million and competitors who may play by different rules shareholders (primarily through dividends). Virtually all of the • External trends such as the outpouring of law and lawsuits, remainder was used to grow GE: through direct investment (e.g., anti-corporate politics and media, the criminalization of plant, equipment, R&D, new technology products) or through regulatory statutes, the unceasing growth in punitive damages, acquisitions complementary to our solid organic growth. So, the quest for government revenue as well as foreign enforce- profits are a critical force in making the company stronger, for ment trends which follow the U.S. the benefit of all stakeholders. At GE, as we grow and build around the world, business leaders must drive compliance as a uniform global value which can As this brief discussion should make clear, the sustained, strong never be compromised. economic performance of GE is of extraordinary value to tens, indeed hundreds, of millions. When we think about the human This is especially true in emerging markets where there may be face of GE’s economic mission, it confers, on a sustained, reliable no stable rule of law, endemic corruption and conflicts of interest basis, critical benefits to stakeholders across our society — and as a way of life. In such markets, we often have the challenge of our world. That is why it should be considered the first element properly supervising small outposts with attenuated controllership of good citizenship. and newer employees with different cultural backgrounds.

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Compliance Systems At GE, we place great weight on creating a culture of compli- Leaders must create basic systems: for preventing problems and ance. Let me illustrate with an important example. One of the detecting problems, and for responding to and remedying these strongest signals GE sends on compliance is when we terminate same issues. Such system building has many dimensions, senior executives for failure to create a compliance culture. For a including training, toolkits, checklists, a vibrant ombuds system, company of more than 300,000 employees, we only have about metrics, audits, close-out processes, early warning systems, 200 officers, and when we terminate one for negligence in integrating acquisitions with different cultures, investigations, creating a culture of compliance — not for any overt, improper disciplinary processes, system reform processes and compliance act — it is a thunderous message to the organization. And we reviews and compliance review boards at all levels of the Company. have taken such action when, under a senior executive, improper acts went undisclosed and unreported for too long or involved In the GE world, leaders must drive the traditional compliance too many — when there was a cultural failure at the core of a issues: anti-bribery, anti-trust, environmental health and safety, compliance failure. fair employment and trade controls. But they must also be ahead of the curve on emerging compliance issues not only in The Importance of Compliance Ombuds Systems the U.S. but around the world: controllership, accounting Another critical check and balance, both in the internal manage- regulation, corporate governance, consumer compliance in ment of the corporation and in creating a compliance culture, is financial services, data privacy, money laundering, counter- a robust ombuds system. Employees and others with connec- terrorism and the intellectual property rights of others. tions to the Company must have confidence that they can report concerns about financial, legal or ethical violations; that their Similarly, GE has a highly disciplined set of financial systems and anonymity will be respected; that there will be no retaliation; and processes to ensure that the basic numbers of the Company are that the concerns will be dispassionately investigated by accurate, comply with appropriate rules and are fairly disclosed. Finance, Legal and HR, and outside specialists if necessary, with Each business team is responsible for all accounting and appropriate individual and remedial action and without reporting; GE’s Chairman reviews the businesses six plus times fear or favor. a year; the controllers in the businesses and at headquarters conduct regular balance sheet reviews and account reconcilia- At GE, we have a long-standing ombuds system for all employees. tions. In addition, the GE Corporate Audit Staff, which numbers As a result of the Sarbanes-Oxley Act of 2002, we have parallel about 380 high-potential employees and reports directly to the hotline systems for anyone to report concerns directly to the Audit Committee of the Board as well as to the CEO and CFO, directors and for lawyers to report concerns to their legal supervi- provides extensive auditing of financial fundamentals on an sors. In our legal channel we just made it simple: any lawyer in the ongoing basis. Disclosure committees comprised of employees Company with any concern should lodge it with the ombuds from various functions within the Company vet public state- system like other employees but also cut through any legal layers ments and filings — both at the business and corporate levels. and immediately report it to the Company’s General Counsel. Moreover, 300 partners from our outside auditing firm, working with their colleagues and the Audit Staff, conduct, in turn, the We discipline people for failure to report a concern which they necessary statutory reviews. did know or should have known, and we fire people for retaliat- ing against those who make reports. We have independent Creating a Culture of Compliance processes for investigating and resolving those concerns and Beyond creating the basic compliance systems of prevention, reporting to the Board. This ombuds process is, we believe, a detection, response and remediation with respect to financial critical element of a compliant culture because it gives powerful and legal rules — and beyond the need to be sensitive to voice to people all across the organization. emerging risk as those rules or the political culture change — the leaders must discharge an even more important duty: they The Impact on Stakeholders of Compliance Failures must create a culture of compliance. They must communicate Let me return then to why I view compliance as the second effectively to every employee in their organization that compli- critical task of corporate citizenship. One reason, as noted, is ance is the core of competitiveness; it is the first priority and it that compliance requires an extraordinary systemic and cultural must be approached with intensity. And the leaders themselves effort at the heart of business operations. A second reason is that must live it, with no double talk, no body language, no winks and a compliance miss has enormous consequences for a company: nods. huge diversions of time and resources; managements fired; executives indicted and jailed; market cap tanked; the resources of the company depleted by illegal activity or by lawsuits; and the company’s reputation tarnished, perhaps permanently.

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These consequences, in turn, have a dramatic, deleterious • We build greenfield facilities outside the U.S. to industry or impact on the company’s stakeholders: not just the investors world environmental standards, which often exceed local law. — the shareholders and the creditors — but also the employees, With respect to acquired facilities outside the U.S., we have retirees, customers, suppliers and communities. Do we need any clear expectations and time requirements for improvements to cautionary tales beyond Enron, Worldcom and Parmalat meet local law and implement GE EHS programs and systems. (although, sadly, others exist)? Thus, there is no more urgent As part of acquisition audits we identify and institute priority socially responsible act, especially in this post-Enron world, actions for conditions which may present serious risk to our than creating a culture of compliance and ensuring a global employees and communities. corporation’s observance of diverse and complex financial and legal rules. • We are the U.S. leader in having the largest number of facilities designated by the Occupational Safety and Health 3. ETHICAL ACTIONS BEYOND COMPLIANCE Administration as “Star” sites for programs with outstanding processes and practices and also outstanding worker health The third element of corporate citizenship is to take ethical and safety results. actions that are not required by financial and legal rules but which, in the judgment of management, directly advance the • We have banned bribery in all commercial settings outside the long-term health and reputation of GE. The actions may occur U.S., not just to foreign government officials as required by the after we have listened carefully to our varied stakeholders — as a Foreign Corrupt Practices Act (and we, of course, have this ban good corporate citizen, we must always be open to the consid- in the U.S. as well). We now have a strong presumption against ered views of our many constituencies, accepting some but not “facilitating payments” allowed under the FCPA but question- others. able under local law — and special processes for reviewing requests for such payments. Such ethical actions can be taken with respect to our many stakeholders and our activities in the public arena: • Our non-discrimination provisions apply to all GE employees around the world, not just to U.S. citizens. • The Company’s charitable activities in its communities • The Company’s employees, retirees and their dependents • When we qualify suppliers, they must not only meet techni- • The Company’s shareholders and creditors cal and quality standards but also ethical ones involving such • The Company’s partners, customers and suppliers issues as child labor, prison labor, environmental health and • The Company’s positions on public policy safety, wages and working conditions, even though we may have no legal duty to inquire into these matters. GE Ethical Actions Beyond What the Rules Require Here are some examples, from the GE world, of decisions we • We ask customers to certify that they will not use our products have made to take ethical actions that go beyond what the for certain unethical purposes or purposes which are banned financial and legal rules require. under local law, such as using ultra-sound equipment for purposes of sex selection — and we provide education and training • Our governance principles and practices in important respects and warnings to customers on this subject. go beyond the set of rules set forth by the NYSE and the SEC following the scandals of recent years: for example, we have • For third parties representing GE, such as consultants, agents, a more strict definition of director independence; we require sales representatives and distributors, we require that they that all directors on the Management Development and agree to follow the ethical and legal requirements contained in Compensation Committee and the Nominating and Corporate our integrity guidelines — The Spirit & Letter. Governance Committee be independent, as well as those on the Audit Committee (which is the current legal requirement); the • When our employees are directors of non-controlled affiliates, Board decides in December what the critical strategic issues they are required to attempt to have those affiliates, through are which it wishes to review in the coming year, effectively appropriate corporate decision making, adopt and follow setting a core agenda for its subsequent meetings; and, to align policies corresponding to The Spirit & Letter. directors’ interests with the long-term interests of the Company, sixty percent of director compensation comes through Deferred Stock Units which do not vest until one year after the director leaves the Board.

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• We have money laundering prevention practices that go us attract the best of a new generation with broad views of the substantially beyond what is required by laws around the type of company for which they want to work. Indeed, every globe — such as restricting forms of payment we will accept. example above and every policy or practice described in the Citizenship Report can be connected to a very important • We have a systematic process for reviewing the desirability of business goal or to use the old phrase — to the enlightened self- business activities in countries that the U.S. government has interest of the Company. identified as states sponsoring terrorism, as states potentially involved with production of weapons of mass destruction, or as But, most ethical actions, while they may have long-term or states involved in money laundering or illicit drug trafficking. indirect economic benefit, may also have a very real economic cost. This gets us back to the more complex risk-reward • We have been a corporate leader in the global initiative to equation. strengthen anti-bribery and anti-corruption laws — to drive a public policy position that, while generally beneficial, is Of course, to say this is just to start a discussion that requires, at less directly in our immediate interest than other positions the end of the day, the considered judgment of the senior we may take. leaders of the corporation and, in important cases, the Board of Directors. For example, who is that “reasonable” stakeholder to The list of ethical actions we have taken beyond what the law whom we should respond? requires could go on and on. So could the list of ethical actions which we are considering or which others request that we take. So starting with reputation — not just in the sense of the “newspaper” test but in a much broader, longer-term sense — is, Making Decisions about Ethical Actions we have found, a useful framework for thinking about these The question is: how do companies decide these ethical decisions, even if it does not yield easy answers. It does connect dilemmas? We do not have a Senior Vice President for Political to relations with stakeholders and ultimately to the health of the Philosophy who derives our actions from moral philosophy. corporation, and it avoids abstract arguments about morality, Our Chairman does not sit in his corner office deciding between which are great in the academy but difficult for public compa- natural rights and utilitarian theories. nies with diverse stakeholders who have widely varying views on ethical questions. By locating the decisions in a broad risk- Our starting place instead is a traditional business method — reward framework, with reputation as the touchstone, we can looking at risk-reward. But it is a different, broader, risk-reward connect ethics with the long-term strength of the Company. This equation, with other complex factors, than may normally be the process describes in outline the real world decision-making case in business decision-making. Taking an ethical action or behind important citizenship actions — they are ultimately failing to take an ethical action can benefit or cause harm to our judgments by senior management and the Board about what is reputation which, in turn, can cause economic benefit or in the long-term interest of GE. economic risk. In our Citizenship Report, you will, I hope, find numerous This is so because our action or inaction will have a reputational concrete steps that GE has taken to discharge our fundamental impact with some or all of our stakeholders and interested duty of being a good corporate citizen. Our innovative policies, parties — recruits, employees, GE communities, shareholders, our comprehensive actions and our rigorous management creditors, customers, suppliers, political leaders, regulators, systems speak eloquently about how seriously GE views our interest groups, the media, opinion leaders and the public at citizenship responsibilities: of how, in Jeff Immelt’s words, we large. And all of these stakeholders are, in their many different strive to be a great company and a good company and always to ways, of signal importance to the health of the enterprise. perform with integrity.

A company’s reputation is an intangible asset — like its brand — which may be hard to measure precisely but which common sense tells us is of real, indeed signiﬁcant, value to the company’s long-term success. Our across the board opposition Ben Heineman to bribery and our rigorous compliance with that stricture can Senior Vice President, make public ofﬁcials in nations with endemic corruption want to Law and Public Affairs do business with us because, in so doing, they can be properly protected against charges of impropriety. Our positions and actions on the environment or ethical sourcing or diversity help

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1.4 Focus Areas

GE is proud of its ability to lead demonstrable change in the area • During 2005 GE may not achieve the historic level of workplace of corporate governance and its common environmental, health injury and illness rates due to the acquisition of Universal during and safety system standards across the Company. At the same 2004, which has an injury rate higher than GE’s current rates. time, we face the complexities of managing a global company However, we hope that we will return to our reduction path in 2006. with the highest regard for compliance, integrity, the safety and fair treatment of our employees, and consideration of the • GE has recently launched ecomagination, an initiative to bring dynamic global climate that impacts our business decisions in to market new technologies that will help customers meet various markets. Identifying Focus Areas provides a foundation pressing environmental challenges. Significant progress has for maintaining best practices and helps us set the course for been made by businesses including GE Energy and GE future improvements. Infrastructure in developing products and services with environmentally beneficial applications. You can read more Governance about these efforts at (http://www.ge.com/en/citizenship/ehs/ • Our strong leadership in corporate governance has been index.htm). As part of ecomagination, GE has highlighted its recognized by a variety of observers including The Financial products and research designed to help customers operate in a Times and Governance Metrics International, which gave GE a carbon-constrained world. GE is also tracking its own green- perfect score for our governance practices. The achievement of house gas emissions and has developed concrete goals for this recognition is a result of GE’s prioritization of governance reducing greenhouse gases and for increasing GE’s energy as a critical issue. Since that time, GE has made a number of efficiency. (http://www.ge.com/en/citizenship/ehs/greenhouse. changes to further increase transparency and better align htm) executive and CEO compensation with shareholder interests. Many of these efforts are detailed in the Governance section of • GE produces our products under the rigor of our worldwide this report. environmental, health and safety standards in addition to (http://www.ge.com/en/citizenship/governance/index.htm) the industry standards that impact each product. However, there are products that remain controversial due to their • Based upon our ever-changing and complex environment, GE’s misapplication or misuse or inherent qualities. directors and executives conduct annual reviews to ensure that our governance systems address contemporary issues and Globalization serve the long-term needs of our many stakeholders. • As a global company, GE continually assesses how and where it does business with regard for variable political climates and Compliance and Controllership other factors that have the potential to adversely affect its • Although GE has advanced compliance systems and processes, reputation and ability to serve customers. achieving full compliance with financial and legal regulations requires a tremendous expenditure of time, effort and resourc- • During 2004 GE decided not to accept new business in Iran. es. GE strives to build a culture of compliance and to fully GE’s non-U.S. subsidiaries will fulfill their commitment to engage business leaders — not just the legal and finance existing customers. staffs — in this ongoing and never-ending effort. We must minimize mistakes to the greatest extent possible and learn • When GE acquires or divests a business, it must be responsible from them as they occur. in guiding a transition that takes into consideration a number of potential issues, including: evaluating its corporate citizen- Environment, Health and Safety ship model, workforce overlap, locations of business operations • The integration of new businesses, including Amersham and and how to handle integration of new products. Universal, into GE’s Environmental Health and Management system is well under way. A vital part of this process is training business leaders and other new employees on GE standards and expectations for EHS performance and on GE’s tools to help them achieve this.

• In our own operations, GE has achieved reductions in its injury and illness rates, and continues to work to maintain a productive and healthy workforce — and is a world leader in this area.

GE 2005 Citizenship Report 10 Section 1 Overview

Community Employee Diversity • GE’s quick and generous response to the tsunami disaster • Although GE has made important strides in improving the exemplifies the Company’s ability to give back through a diversity of its executive ranks across the Company, ongoing multifaceted range of donations that few companies can challenges remain in advancing diversity goals globally and match. The GE family contributed over $20 million in cash, increasing GE’s cultural sensitivity relative to different markets. products and services and helped raise $32 million more. Our combination of funds, employee contributions and matching • GE continues to make progress in its diversity efforts, winning grants, our use of NBC and its affiliates’ efforts through public the Catalyst Award, Executive Leadership Council Corporate programming to generate donations and our contribution of Award and making the list of Working Mother Magazine’s “100 vital products to meet immediate clean-water needs, shows Best Companies for Working Mothers” distinction in 2004. GE how size and scale can make a meaningful difference in continues to make diversity a global effort, working to define philanthropic giving. The GE family also responded quickly after the meaning and implications of diversity as it applies to a the attacks on the World Trade Centers on September 11, global workforce. contributing nearly $25 million in cash products and services. Overall Supply Chain • GE’s inclusion in the Dow Jones Sustainability Index is a strong • GE continues to make progress sharing standards and best example of our commitment to meet performance benchmarks. practices with its suppliers to meet GE’s standards for environ- In 2004, GE ranked “best of industry” in several key dimensions, mental, labor, health and safety practices. including philanthropy and volunteerism, environmental management systems, investor relations, customer relationship • GE monitors its supply chain for quality, financial, environmen- management and talent attraction and retention. tal, health and safety, and employee issues performance. (http://www.ge.com/en/citizenship/suppliers/chain.htm) • GE continues to evaluate how to maximize the range and depth GE deploys a specific system of regular assessments and of engagements with NGOs and governments so we can learn compliance monitoring to ensure that GE suppliers meet how to best deliver products and services that meet the needs GE’s commitment to ethical sourcing as stated in section 9.1 of society and the environment. of this report.

• GE has terminated about 200 suppliers since the inception of this program, though our preferred focus has been on corrective actions, with over 16,000 improvements being made over the same time period at more than 3,000 suppliers.

GE 2005 Citizenship Report 11 Section 1 Overview

1.5 Business Directory

GE is made up of 11 business units, each with a number of divisions. (http://www.ge.com/en/citizenship/overview/directory.htm)

GE Advanced Materials GE Commercial Finance

GE Advanced Materials is a world leader in GE Commercial Finance offers an array of providing materials solutions through ﬁnancial services and products worldwide. Our Businesses engineering thermoplastics, silicon-based With a particular expertise in the mid-market products and technology platforms, and fused segment, GE Commercial Finance provides quartz and ceramics. loans, operating leases, ﬁnancing programs and other services.

GE Consumer Finance GE Consumer & Industrial GE Energy

GE Consumer Finance is a leading provider of GE Consumer & Industrial spans the globe as GE Energy is one of the world’s leading suppliers ﬁnancial services to consumers and retailers in a $13 billion industry leader in major appliance, of technology to the energy industry. 38 countries around the world. lighting and integrated industrial equipment, systems and services.

GE Equipment Services GE Healthcare GE Infrastructure

GE Equipment Services helps medium- and GE Healthcare is a $14 billion business that GE Infrastructure is a high-technology large-sized businesses around the world provides transformational medical technologies platform comprised of some of the fastest- manage, ﬁnance and operate a wide variety of that are shaping a new age of patient care. growing businesses within GE with 2004 business equipment. revenues of $3.4 billion.

GE Insurance Solutions NBC Universal GE Transportation

Protecting people, property and reputations, GE NBC Universal is one of the world’s leading GE Transportation is a $13.5 billion business, Insurance Solutions is one of the world’s leading media and entertainment companies in comprised of the aircraft engines and rail providers of commercial insurance, reinsurance the development, production and marketing business units, with industry-leading products and risk management services. of entertainment, news and information to and services for the aviation, rail, marine and a global audience. off-highway industries.

GE 2005 Citizenship Report 12 Section 1 Overview

1.6 Stakeholders

The modern corporation’s constituencies are broad, diverse investors, employees, customers, end-users, suppliers and and dispersed. The long-term success of our Company depends communities. GE also strives to establish open, respectful and on wise strategies for growth, technology development and value-added relationships with governments, advocacy groups customer service, and in satisfying the needs of our stakehold- and non-governmental organizations (NGOs). Among each of ers. GE is committed to meeting the differentiated needs of these groups, GE strives to understand and respond to a range of expectations:

STAKEHOLDER EXPECTATIONS

Investors GE Engagement Examples Customers GE Engagement Examples

• Good governance & • 250+ private/group • Ethical dealings • Seek day-to-day feedback increased disclosure investor meetings • A good value proposition • Customer Scorecards • Fiscal responsibility • Monthly perception studies • Products and services that • At the Customer, • A sustainable business model covering 50-75 shareholders help them win For the Customer Program • Proﬁtable growth and returns • 10+ GE security analyst meetings • A GE that stands behind products • Best practice sharing of programs • Strong cash ﬂow • Socially Responsible Investment including Six Sigma roundtables & Webcasts • Crotonville learning center leadership sessions

Employees GE Engagement Examples Communities GE Engagement Examples • Fair compensation, fair treatment • Annual global employee • Environmental responsibility • Grants programs from • Safe and healthy opinion survey • Dependable community impact GE Foundation working conditions • Environmental, Health & Safety • Community investment • Linking our technology with • Personal growth and development tools and training (volunteerism/philanthropy) community needs • Pride and a sense of purpose • Quarterly CEO employee • A good neighbor • Global volunteer network • Unyielding integrity broadcasts • Regular meetings with socially • 2.6 million learning course responsible investor groups completions in 2004 and consultants • A robust compliance system • In-depth personnel review processes

Governments GE Engagement Examples NGOs & advocacy groups GE Engagement Examples

• Regulatory compliance • Ongoing and regular discussions • That GE engages in social, • Outreach on major GE initiatives, • A responsible corporate citizen with government ofﬁcials environmental and economic performance and issues • An economic base • Training and best practice sharing issues • Funding for major citizenship • A leader in the community with governments • A GE that listens and considers and relief efforts • 307,000 GE jobs around the world alternate inputs • Dialogue on citizenship issues • Partnerships on research • An ability to partner appropriately • ecomagination initiative • Assistance with major crises for responsible change and disasters • Ethical actions beyond ﬁnancial and legal requirements

Business partners GE Engagement Examples

• Positive supplier relationships • Proactive communications • Productive venture partnerships • Training and best practice sharing • Mutually beneﬁcial alliances

GE 2005 Citizenship Report 13 Section 1 Overview

Our goal is to continue to increase the range and depth of our engagements with NGOs and advocacy groups to identify how GE can best perform and deliver products and services that meet the needs of society and the environment.

GE maintains an open dialogue with all groups under nine guiding principles:

Maintain a culture that makes performance with Set high standards of Make compliance a core integrity the bedrock principle performance operating principle of the Company

Build exceptional governance Develop great leaders with Be open and transparent with a strong board the right incentives

Take ethical actions beyond Make a business out of Give back to communities what the rules require that solving the world’s toughest through philanthropy and are in the long-term interest of problems volunteerism stakeholders and the Company

GE 2005 Citizenship Report 14 Section 2

Governance

In a recent study conducted by the consulting ﬁrm Booz Allen Hamilton, GE was named one of the World’s 10 Most Enduring “To endure for over Institutions of the last 100 years — putting GE in the company of the U.S. Constitution, Oxford University, the Olympic Games one hundred and and the Rolling Stones. Criteria included an institution’s ability to maintain market leadership over time, an ability to innovate and to lead in governance practices. In a poll of global CEOs twenty-seven years, a conducted by the Financial Times and PriceWaterhouseCoopers in November 2004, GE was rated the most respected company company must earn in the world for corporate governance and the most respected company overall for the seventh consecutive year. In February 2005, GE was named the World’s Most Admired Company in a a reputation for integrity poll of business leaders conducted by Fortune magazine. And GE was one of only 34 companies to receive a perfect score of 10.0 and performance from Global Metrics International (GMI), an independent service evaluating the quality of a company’s corporate governance. over time.” Section 2 Governance

Our governance practices are grounded in actions instilled by GOVERNANCE OVERVIEW leaders, implemented through rigorous systems and processes, and evaluated through transparency. Since 2000, GE’s corporate governance practices and principles have been significantly Management revised to ensure an engaged and independent board, increased • CEO reviews businesses 6+ times/year transparency and a CEO and executive compensation pro- • 8 scheduled GE Board of Directors meetings gram that is aligned with long-term shareholder interests. For • Active Board example, in 2003 GE’s Board of Directors created a new form • Digitized leadership cockpit of stock-based incentive for the CEO — awarding Jeff Immelt • Address business issues 250,000 Performance Share Units in place of any stock options or restricted stock grants. If GE’s total shareowner return for the five years from 2003 through 2007 meets or exceeds the total Controllership shareowner return for the S&P 500 for the same period, then half • World-class finance function of Jeff Immelt’s 250,000 Performance Share Units will be con- • 380 staff auditors verted into 125,000 shares of GE stock. Similarly, if GE’s operat- • 1000s of audits per year ing cash flow increases an average of 10 percent or more during • Process-based accountability this five-year period, then the other half of his Performance • Formal integrity/EHS reviews Share Units will be converted into GE stock. If these performance • Shared values goals are not met, Mr. Immelt will receive no shares of GE stock.

Because they are based on two critical performance metrics, Visibility total shareowner return and operating cash ﬂow increases, GE’s • 250 analyst and investor meetings annually Performance Share Units align CEO stock-based pay directly • Reviews with regulators, rating agencies to long-term investor interests. Additionally, GE has enacted a • Industry-based oversight series of processes and activities to increase the participation of • Strong oversight by external auditors the Board, and to increase transparency: • Meet global standards

GE 2005 Citizenship Report 16 Section 2 Governance

2.2 Governance

2.1 Board of Citizenship

GE’s Board plays a vital role in governing GE. It is two-thirds Chaired by independent director Sam Nunn, the Public independent, ensuring a level of objectivity critical to making our Responsibilities Committee reviews and oversees the Company’s role and inﬂuence more meaningful and effective. GE expects its positions on corporate social responsibilities and issues of public board to play an active role in overseeing the performance of the signiﬁcance that affect investors and other key GE stakeholders. Company. GE believes that an effective board is one that challenges and stretches management, providing in-depth oversight The Committee’s Charter is as Follows: of the major strategic issues facing the Company. A great board • To review the Company’s key public policy positions taken in is one that can be both a tough critic and a wise counselor. legislative, regulatory and judicial forums around the globe

In 2004, GE directors made more than 30 visits to different GE • To review the Company’s actions in furtherance of our corpo- business sites, demonstrating a commitment to serve at the rate social responsibility highest level of involvement. • To review key trends in legislation, regulation, litigation and We have made numerous changes to our governance public debate around the world in order to determine whether practices recently. the Company should consider additional corporate social responsibility actions

• To consider the impact of Company procedures and processes on employees, citizens and communities, especially with respect to environmental, health and safety matters

• To consider the manner in which the Company conducts its public policy and government relations activities

• To review the Company’s support of charitable, educational and business organizations

GE 2005 Citizenship Report 17 Section 3

Compliance

GE’s commitment to performance with integrity includes a commitment not only to proper governance but also to compliance with ﬁnancial and legal rules, regulations and standards. Financial and legal rules comprise a framework in which a company’s performance can be measured with conﬁdence. GE operates within such a framework as described in the following section. Section 3 Compliance

3.1 The Spirit & Letter

The best-intentioned governance policies are at risk if there The title of The Spirit & Letter recognizes that our employees is no infrastructure of compliance and deep cultural values must not merely adhere to the letter of the law, but uphold its supporting those policies. For GE, with more than 300,000 spirit as well. The Spirit & Letter emphasizes both the individual employees working in more than 100 countries and having a employee’s responsibility to act with integrity and GE leaders’ strong corporate reputation, the stakes for the Company and responsibility to create a culture of compliance in which its shareowners are high. employees can exercise sound judgment and feel comfortable about raising concerns without fear of retaliation. Maintaining GE’s strong reputation requires clear communication of policy, rigorous processes for detecting potential To this end, GE leaders conduct regular “Session D” compliance violations, proactive leadership and personal responsibility. GE’s reviews in which employees help identify potential compliance integrity guide, The Spirit & Letter, articulates the foundation of risks in their businesses and develop specific action plans to these actions. Each employee receives a copy of The Spirit & manage them. The results of these Session D reviews are Letter and is asked to commit personally to upholding its policies periodically reported to the corporate Policy Compliance Review in every country in which GE conducts business. Board (which consists of senior executives, including the General Counsel, CFO and CEO). In addition, GE Legal works with the Corporate Audit Staff to conduct regular compliance audits that focus on a specific GE business, region or subject. Their findings include identification of any weaknesses and best practices, and result in commitments from businesses to carry out any required actions.

GE 2005 Citizenship Report 19 Section 3 Compliance

3.2 Ombudsperson Process

GE has an extensive Ombudsperson process that serves as a The system encompasses more than 300 Ombudspeople glob- mechanism for employees to ask questions and report integrity ally, covering every business and every country in which GE concerns without fear of retaliation. Employees and other stake- operates, and is set up to ensure that everyone — employees, holders must have conﬁdence that they can report concerns customers, vendors and shareholders — can raise integrity about legal or ethical violations, that their anonymity will be issues. The Ombudsperson network complements our Legal, respected, that there will be no retaliation, and that the concerns Human Resources and management functions in addressing will be objectively investigated by Finance, Legal and Human concerns and answering questions about compliance with Resources, and outside specialists if necessary, with appropriate policies and procedures. individual and remedial action and without fear or favor. All Ombudspeople speak the local language and understand the Employees are subject to discipline if they fail to report a culture and business environment of their location. concern that they knew about or should have known about. In addition, retaliation against those who raise integrity concerns Contacts to the Ombudspeople may be anonymous, and con- is prohibited and is grounds for disciplinary action. GE has pro- ﬁdential investigations are conducted when concerns about cesses in place for objectively investigating and resolving those possible violations of GE policy or the law have been raised. Non- concerns and reporting Ombudsperson system activity to the conformance with Company policies and procedures results in Audit Committee of the Board of Directors. GE’s Ombudsperson corrective actions being taken, and although many cases result process is a critical element of a compliant culture because it from unintended mistakes, disciplinary actions are often taken in gives powerful voice to people across the organization. cases of negligent or intentional non-compliance.

We believe that prompt corrective action and discipline demonstrate a strong integrity culture at GE. During 2004, 1,338 integrity concerns were reported through the Ombudsperson process across a variety of issues:

INTEGRITY CONCERNS REPORTED BY POLICY

2000 2001 2002 2003 2004 Fair Employment Practices 308 319 363 390 402 Conflicts of Interest 220 227 237 212 240 Controllership 94 108 224 181 247 Environment, Health & Safety 42 63 63 88 83 Supplier Relationships 62 73 78 82 71 Complying with Competition Laws 16 18 46 36 23 International Trade Controls 16 20 36 44 39 Working with Governments 70 91 80 75 55 Intellectual Property 16 27 51 35 34 Improper Payments 78 29 22 33 28 Privacy 15 25 26 48 35 Money Laundering Prevention 3 14 15 4 4 Insider Trading/Dealing/Stock Tip — 4 2 3 0 Security & Crisis Management — — 18 2 10 Other Integrity Concerns 151 106 105 126 67

GE 2005 Citizenship Report 20 Section 3 Compliance

3.3 Legal Processes and Systems

These concerns led directly to 368 disciplinary actions being The GE Legal organization includes over 1,000 experienced taken against GE employees, including 125 dismissals, 198 lawyers located at GE businesses throughout the world whose warnings, 16 job changes and 29 ﬁnancially impacted employ- job it is to help GE achieve performance goals with unyielding ees. Of the 368 disciplinary actions, approximately 56% occurred integrity and compliance with the law. GE’s diverse industries outside of the U.S. Of the 1,338 investigations in 2004, 34% were and disparate locations are united by a common legal culture the result of anonymous submissions. with robust processes for the analysis and management of legal risks. The legal team at each GE business reports not only to The rising rates of concerns is a sign of our healthy integrity and the business CEO but also on a dotted-line basis to the General compliance culture. It demonstrates that employees recognize Counsel of the Company, ensuring rigor and consistency their responsibilities to raise compliance questions and concerns in acquisitions, employment issues, dispute resolution as well that come to their attention. Increased usage of the as compliance. Ombudsperson process also demonstrates that leaders have set the right integrity culture, creating an environment that Many of GE’s legal professionals are dedicated speciﬁcally to encourages employees to come forward with their questions compliance. The legal compliance team includes compliance and concerns without fear of retribution. leaders at each GE business, specialists at corporate headquarters and regional experts who are familiar with local legal Ombudsperson Process in Japan requirements in all of the countries in which GE does business. Our process in Japan is an excellent example of how GE works This team tracks and monitors legal developments and trends to foster a compliant culture that protects employees and across the globe, and a Compliance Leaders Council meets shareholders in every country where we do business. Over the several times a year to review compliance issues and initiatives. last three years, GE Japan has made continual improvements in its Ombudsperson process. Through an extensive education The legal compliance team also works closely with Finance and program using examples of the Ombudsperson process in the global Ombudsperson network to report on compliance mat- action, GE has strengthened the visibility and acceptance of the ters to the Policy Compliance Review Board (PCRB). Periodic role that the process plays in protecting the Company in Japan. updates are provided to the Audit Committee of the Board of Today there are approximately 45 Ombudspeople in Japan Directors. covering over a dozen businesses. GE established a lead Ombudsperson in Japan, and has frequent Ombuds council Although each GE business and location faces different compli- meetings to share best practices, unify efforts and coordinate ance challenges, they all focus on an approach comprising three consistency. As a result, the number of Ombudsperson contacts basic processes: prevention, detection, and response. GE’s legal has grown in the last three years from nearly zero to over 200 organization works under the leadership of business executives annually, of which 84 were integrity concerns. We view reports as a to execute these three crucial processes. symbol of a healthy system. In any year, the instances of non- compliance are a tiny fraction of our employee population. PREVENTION

The most effective solution to compliance problems is to prevent them before they occur.

Companywide, GE employees acknowledge their commitment to abide by GE’s integrity policies as set forth in The Spirit & Letter and receive training to help them apply those policies to their particular job function. The compliance training received by GE employees includes award-winning videos, in-person sessions, e-learning modules which apply the details of particular policies to real-life scenarios, and an integrity Web site which helps employees ﬁnd policies, procedures and answers to commonly- asked compliance questions in multiple languages. GE has also designed specialized training for leaders and a “Leader’s Guide” setting forth the speciﬁc steps GE leaders are expected to take to achieve a culture of compliance.

Within each business, a Compliance Review Board (CRB) consist-

GE 2005 Citizenship Report 21 Section 3 Compliance

ing of senior operational and functional leaders presides over the RESPONSE: INVESTIGATIONS AND REMEDIAL ACTIONS compliance practices within the business. The CRB is responsible for full implementation of all elements of the compliance program, Concerns can come in from a variety of sources: from an for establishing business-speciﬁc compliance policies and for employee; from an allegation in an actual or threatened lawsuit; reviewing current compliance issues and cases. Each CRB uses a from an inquiry or subpoena from a regulator; or from an article database or other automated tool to track open compliance in the press. When a concern does arise, leaders act promptly to issues within that business. The Corporate CRB meets regularly have it evaluated and investigated by counsel and other persons with the businesses’ boards to review policies and practices with the appropriate expertise. If the concern turns out to be and ensure consistency throughout GE. GE also has elected CRBs warranted, appropriate disciplinary and remedial action is then in many regions and countries — for example, China and Mexico — promptly taken. to focus on common compliance standards to review regional or country Session D standards. The GE Legal team is responsible for ﬁnding the facts and analyzing the applicable law, including an evaluation of the DETECTION Company’s reporting obligations, if any. GE’s legal team includes former prosecutors and others with substantial experience in Measurement and monitoring allow GE to detect compliance conducting investigations. The Corporate Audit Staff consists of problems at an early stage and determine root causes and take highly motivated and capable employees recruited to this elite corrective action early on. service, whose job is to help GE remain compliant.

All GE businesses are required to have a process in place to If allegations of wrongdoing are substantiated as a result of the ensure systematic monitoring of key compliance risks. Ofﬁcers investigation, the Legal team helps management implement and managers must regularly review policy compliance with measures to stop the misconduct and ensure that it does not their direct reports and provide the results of those reviews to recur. Appropriate discipline is imposed through a fair process the business leader who, in turn, periodically reports on those designed to evaluate relative degrees of responsibility. Steps are reviews to the Corporate Policy Compliance Review Board. In taken to make all required disclosures or take other action addition, GE trains employees regarding their obligation to needed to manage legal exposure arising out of the misconduct. report compliance concerns and provides a variety of channels to make it possible for employees to do so, including corporate The integration of the prevention, detection and response and local Ombudspersons, as well as an email address and functions as part of GE’s legal culture ensures that the Company phone line that allow anonymous reporting of concerns directly learns from past mistakes and uses our experiences to build to the Board of Directors. stronger, more robust compliance processes.

GE businesses also perform detailed mapping of key business processes to help detect risks, and have early warning systems, COMPLIANCE LEADERSHIP: CULTURE which monitor problems in their respective industries, and Integrity leadership is the key review those with senior management regularly.

Compliance issues may also be detected through GE’s rigorous Prevention Response acquisition due diligence and integration processes. Integration of both new businesses and remote locations has been man- dated as a priority for all GE business leaders. Creating a GE businesses are also required to conduct robust screening of Culture of Compliance third parties such as suppliers, dealers and sales representatives, to ensure their compliance with various laws, including laws relating to trade controls, money laundering and anti-terrorism efforts.

Detection

GE 2005 Citizenship Report 22 Section 3 Compliance

3.4 Financial Processes and Systems

GE employs a 12,000-person finance team, including more than This work is overseen by senior management of the businesses 500 accounting professionals, who operate a rigorous set of and the Company, which conducts regular reviews of operations systems and processes intended to ensure that the Company at each business. The CEOs and CFOs of GE’s businesses have meets the legal and regulatory requirements for controllership signed representation letters attesting to financial results for and transparency. years, long before the Sarbanes-Oxley Act of 2002 made such letters a legal requirement. GE makes every effort to adopt appropriate accounting policies and devotes its full resources to ensuring that those policies GE’s commitment to controllership enabled the Company to are applied properly and consistently throughout the world. The complete the evaluation of internal controls over financial Company maintains a dynamic system of internal controls and reporting that is required by Section 404 of the Sarbanes-Oxley procedures designed to ensure reliable financial record-keeping, Act of 2002. The Company’s assessment found that our internal transparent reporting and disclosure, and protection of physi- controls are effective as of December 31, 2004. cal and intellectual property. Controllers in each GE business and at headquarters conduct regular balance sheet reviews and Disclosure committees at both the business and corporate levels account reconciliations, and discuss issues and best practices at are composed of executives with detailed knowledge of GE’s regular meetings of the GE Controllership Council. businesses and the related needs of investors. They evaluate the fairness of financial and non-financial disclosures and report GE’s internal audit team of 530 auditors, including the 380 their findings to the CEO, the CFO and the Audit Committee. members of the Corporate Audit Staff, conducts thousands of fi- The Company makes these disclosures in full compliance with nancial, compliance and process improvement audits each year, Regulation FD of the U.S. Securities and Exchange Commission. in every geographic area, at every GE business. The Corporate Audit Staff reports directly to the Audit Committee of the Board as well as to the CEO and CFO. In addition, 300 partners from KPMG LLP, GE’s outside auditing firm, work with their colleagues and the Audit Staff to conduct the necessary statutory reviews.

GE 2005 Citizenship Report 23 Section 4

Public Policy

GE takes positions on public policy issues that affect the One key example of GE’s long-term approach to advancing Company as a whole (for example, trade, tax, environmental and policy changes in the broad public interest is the Company’s justice issues) as well as its individual businesses (for example, role in fighting corruption around the globe. GE has long held healthcare policy, energy policy, communications policy). It is the view that the standards of the U.S. Foreign Corrupt Practices involved at both federal and state levels in the United States, as Act should be applied across the globe (leveling up), rather than well as in major nations and regions around the globe. weakened (leveling down). This stems from our belief that bribery of public or private officials is antithetical to sound econom- In developing these positions, GE proceeds from the gen- ics, effective development and concepts of corporate integrity. eral recognition that companies today operate in a mixed GE helped organize Transparency International (TI), a non-gov- economy — with government performing vital functions in, for ernmental organization, which was launched in 1993 to combat example, national defense, foreign policy, public order, market corruption. It also helped found and staff the U.S. Chapter of TI, regulation, environmental protection, education and social and it has been instrumental in securing the support of other safety net arenas. In performing those functions, government transnational companies in the global anti-corruption initia- must also ensure that the engine of a free society — private tive. As a result of TI and GE efforts and the efforts of others, economic activity — has the ability to innovate, invest and com- the Organization for Economic Co-Operation and Development pete. GE strives to advance balanced, long-term public policy (OECD) countries adopted an anti-bribery convention. positions that, while in GE’s interest, are based on sound facts, In addition, due to TI efforts the World Bank, the International detailed analysis and a weighing of important competing values Monetary Fund and many other financial institutions now recog- that lie at the core of any complex public policy issue. While nize that corruption is a major obstacle to international develop- differences on policy issues are a hallmark of free societies, GE ment and are taking action to control corruption in projects they seeks to advance positions that are responsibly developed and finance. TI’s Corruption Perception Index, published annually responsibly presented. since 1995, now rates corruption levels in over 140 countries. The Index receives extensive publicity all over the world and has The Public Responsibilities Committee of the GE Board of helped transform corruption from a taboo subject to a promi- Directors annually reviews GE’s major public policy issues nent place on the international agenda. around the globe. In addition, GE’s compliance function seeks to ensure that, at all times, GE complies carefully with campaign finance and disclosure laws, and such other rules as may apply to participation by corporations and their employees in the public policy process. Section 4 Public Policy

GE has taken the lead on important public policy issues such as GE’s reputation and business expertise, its role as an employer, anti-money laundering and asbestos litigation reform. GE has and its contributions to communities through employee activi- taken aggressive action, including forgoing business, to ensure ties all contribute to its relationships with key decision mak- that the Company does not inadvertently become involved in ers. Where appropriate and permitted, GE’s Political Action money laundering in international business transactions. U.S. Committee (GEPAC), a political action committee that raises law enforcement officials have praised GE’s actions. On asbestos voluntary contributions from eligible GE employees, supports reform, GE has helped lead discussions aimed at finding a bipar- candidates for federal and state elective offices whose views are tisan solution to fix the U.S. asbestos tort system and to ensure consistent with the values and goals of the Company. In 2004, that people who are demonstrably sick as the result of asbestos GEPAC raised over $1 million from approximately 3,000 employ- exposure will be compensated appropriately through a no-fault, ees, and contributed nearly $845,000 to federal candidates and fast-pay trust fund. GE, along with hundreds of other companies, $51,000 to state candidates. The Federal Election Commission has been named in lawsuits arising from asbestos exposure, regulates GEPAC’s activities, and reports detailing its activities even though GE has never mined, milled, manufactured, or are available at www.fec.gov. produced asbestos.

GE 2005 Citizenship Report 25 Section 5

Environment, Health and Safety

With products ranging from locomotives to plastics, jet engines Over the past 15 years, GE has put in place a management to theme parks and wind turbines to ﬁnancial services, managing system that takes into account GE’s structure and that applies environmental, health and safety (EHS) issues at GE is a tough to all GE businesses. The applicability of some aspects of the challenge. We have developed common uniform EHS expecta- program will be different depending on the nature of the business, tions and management systems that allow us to identify and but all GE businesses report on core metrics, undertake compliance control our diverse EHS issues. assessments and implement the Company’s EHS framework. Section 5 Environment, Health and Safety

5.1 Policy

Our expectations for EHS performance — the tools we provide and the results we pursue — are the same from Shanghai to Schenectady and every place in between. Commitment to EHS goals and compliance is embedded in our culture and is one of the values that a GE leader must have to be part of the GE team.

EHS POLICY GOALS

100% compliance Eliminate hazards Minimize the use everywhere we operate or and provide a safe and release of sell products workplace hazardous materials

Assess all new Implement the activities and products GE EHS management for EHS impacts system in all locations

The key building block for GE is compliance with the laws wherever the Company operates. However, we also set common global standards for EHS in areas such as industrial hygiene, ergonomics, personal protective equipment, process safety, chemical storage and handling, spill prevention and waste disposal.

Full compliance is easy to say and hard to do. This is especially true for a company of our size, breadth and reach, with operations in over 100 countries, manufacturing sites in 40 countries and tens of thousands of laws, regulations and requirements across the globe.

Integrating Amersham, Universal and a number of Infrastructure’s acquisitions into GE has reinforced the importance of compliance as a driver of EHS performance.

GE 2005 Citizenship Report 27 Section 5 Environment, Health and Safety

5.2 Operating Systems

GE has a reputation for operational rigor in executing its PROCESSES FOR OPERATIONAL OWNERSHIP business strategy and ﬁnancial goals. This same rigor and focus AND ACCOUNTABILITY on operations helps us make sure our EHS aspirations translate into action through training, tools and metrics. In addition to our Ultimate responsibility for EHS performance resides with our EHS policy, the key elements of our EHS operating system are: business leaders, including our plant managers and service operations leaders who are supported by more than 1,000 GE • Processes for operational ownership EHS professionals. and accountability • Tools that our operations can use every day • Training and communication We train our operations leaders on their responsibilities through • Supporting GE’s growth plans by evaluating Plant Manager Training, which is given about 25 times each EHS risks and integrating newly acquired businesses year in locations around the world and attended by 800 to 900 • Assurance mechanisms GE employees annually. During a two-day interactive course, • Addressing business-speciﬁc risks attendees learn about the Company’s EHS expectations, how • Metrics to measure progress to demonstrate leadership, and how to create top-level EHS • Identifying trends performance. Most importantly, employees interact with their • Continual re-evaluation to improve peers and come away with action plans to implement when they existing programs and add new elements return to their operations.

Each day, our operations leaders drive accountability into their organizations through the use of “GE PowerSuite” tools that provide access to “digital cockpits” of real-time data on operations and individual performance.

Each quarter, a GE EHS Scorecard goes to our CEO and other top leaders showing individual business performance on 22 metrics.

Finally, our “Session E process” requires all operations leaders to discuss their EHS performance annually — including areas for improvement — with both their business leaders and GE’s senior environmental leaders. These sessions are conducted in front of their peers and provide an opportunity to test knowledge and commitment. We conduct about 25 Session Es each year, with about half occurring outside the United States.

GE 2005 Citizenship Report 28 Section 5 Environment, Health and Safety

5.3 EHS 5.4 Training and Tools Communication

GE has one set of goals and expectations that apply globally to GE’s EHS Council is led by our Vice President for EHS Stephen every facility. These goals are implemented and measured using Ramsey and meets three times a year with the EHS leaders from a common set of metrics. Compliance with tens of thousands of each of GE’s businesses to discuss programs and priorities, and EHS laws and regulations is the building block for our EHS to exchange best practices. operating system. To make this a reality, we developed regularly updated online, Web-based modules containing EHS legal GE operates 10 task forces — on topics such as industrial requirements — in 17 languages as well as English — for more hygiene, air, water and ergonomics — with cross-business than 20 countries. participation. GE also operates 16 geographically focused, cross- business EHS Councils in many parts of the world, including And for our global standards, we have developed “EHS Mexico, Southeast Asia, China and Europe. Frameworks” containing 27 elements, 700 questions, and guide notes to act as a Web-based multi-language tool that combines GE also has both subject- and geography-specific EHS training. “how-to” information with methods of evaluation. Last year, GE operations conducted more than 1.6 million units of EHS training. To facilitate this, GE invests in multi-language Throughout all of our systems, the Web plays a vital role in translation of key training courses and has developed more than promoting consistency and regular monitoring. Our GE 100 online multi-lingual training courses available to our PowerSuite is a Web-based tool that facilitates global communi- businesses. cation, standardized compliance auditing and task management to provide consistent reporting and measurement across GE. Supporting GE Growth GE evaluates EHS risks for every potential acquisition. EHS Today, GE PowerSuite consists of more than 30 applications that considerations are part of GE’s deal review process as well as all range from Health & Safety workflow management tools finance transactions proposed by Consumer Finance and focusing on Ergonomics and Industrial Hygiene, right through to Commercial Finance. detailed environmental compliance management systems such as AirLog™, Waste Tracker™ and the ODS Sentinel™. PowerSuite For those businesses acquired by GE, EHS is a key element of applications digitize business processes in a way that allows integration planning. Prior to closing, an integration plan is sites to own, track and manage their individual data, and permits prepared that includes a timetable for implementing EHS operations and business managers to monitor performance in programs as well as identification of the specific EHS resources real time by business segment. needs.

We currently have over 30,000 users of PowerSuite in GE. Assurance Mechanisms During 2004, GE PowerSuite managed 1,032,247 compliance Assurance of both compliance and meeting GE global expecta- self-assessment checks, 747,203 EHS Framework validations, tions is provided in GE’s EHS management system through a 222,429 compliance obligations, 56,750 safety observations combination of methods, including: and 6,113 waste manifests. • Conducting compliance self-assessments by sites over a cycle of up to two years. • Requiring that 90% of Self-Assessment and Business Audit compliance findings are to be closed within 30 days and 100% within 180 days. During 2004, 95% were closed within 30 days, and 99.9% were closed within 180 days. • Conducting operating reviews on selected topics every year, ranging from audits of all GE facilities in a particular country to specific compliance topics. • Sending GE’s corporate EHS team on more than 500 visits to over 200 GE facilities around the world every year to evaluate EHS management system performance. • Numerous GE facilities undergo audits each year to qualify their environmental management systems for certification by the International Standards Organization, and for safety excellence certification in the U.S. Occupational Safety and Health Administration’s Voluntary Protection Program.

GE 2005 Citizenship Report 29 Section 5 Environment, Health and Safety

5.5 Metrics to Measure Progress

• Having more than 1,400 EHS-related inspections by govern- GE has built a number of systems and processes to measure EHS ment authorities around the world in 2004. performance. The base year for most of our EHS metrics is 1996, • Using a mix of third-party and business audit teams to provide the first year of GE’s global EHS scorecard. Since then, the independent review of compliance with applicable laws and GE number of manufacturing and assembly facilities at GE has EHS programs, which supplements annual required self- increased by 40%. assessments and government inspections (during 2004, more than 500 business-level EHS audits were conducted). Workplace Injury and Illness GE has achieved a 76% reduction in workplace injury and illness Addressing Business-Specific Risks and rates and a 74% reduction in lost-time case rates since 1996. Product Stewardship Improvement This means that we have thousands fewer injuries and more The varied nature of GE businesses means that some require a employees working safely. special focus to manage risks unique to their operations. WORKPLACE INJURY & ILLNESS RATES One example is the handling of mercury in our lighting business. (Rates are based on 100 employees working 200,000 hours annually) Although GE is conducting research to develop non-mercury- based technologies, mercury is necessary to ensure the energy 2.5 efficiency of today’s compact fluorescent lamps. Because mercury can present potential hazards to employees and the 2.0 environment if not handled correctly, GE’s Lighting business developed a Mercury Management Scorecard that incorporates 1.5 specific requirements for mercury handling for our plants. These include industrial hygiene controls and employee monitoring, 1.0 maintenance requirements for equipment and proper handling of wastes. These requirements are tracked on individual plant scorecards that are reviewed frequently and audited by the 0.5 business EHS team and operations leadership as well as an annual review by Corporate EHS at Session E. GE also voluntarily 0.0 invested several million dollars for equipment to allow separa- 00 01 02 03 04 tion and reuse of scrap materials containing mercury. Recordable Rate Lost Time Rate

GE 2005 Citizenship Report 30 Section 5 Environment, Health and Safety

Critical elements in achieving these reductions have been a Air and Wastewater Exceedances and Reductions yearly goal to reduce both rates 20%, the global implementation Since 1996, wastewater exceedances have been reduced from of our health & safety framework with an emphasis on employee 624 to 83 and air exceedances (since 1998) from 68 to 22. We involvement, management leadership and accountability, and have driven these reductions by the use of Six Sigma tools, participation of GE sites in government-run health and safety immediate corporate involvement for any exceedance and the programs (USA and Mexico) and in GE’s Global Star program institution of environmental program expectations culminating (rest of the world). in the 2003 launch of an Environmental Framework, containing speciﬁc measurable program expectations, including those for However, we anticipate that during 2005 we may not achieve wastewater and air. this level of reduction due to the 2004 acquisition of Universal, which has had an injury rate higher than GE’s current rates. As GE’s wastewater reduction goal in 2004 was 33% and we with all acquisitions, we are instituting a full set of EHS expecta- achieved 29%. Our 2005 goal remains at 33%. The total number tions and programs and we hope to achieve our historical of wastewater violations has been reduced so much that just reduction rate in 2006. one or two signiﬁcant events at any of GE’s facilities with wastewater discharges can adversely affect these metrics. For Reducing our injury and accident rates has created a safer instance, in 2002 and 2003, 22% of the wastewater exceedances workplace for our employees and prompted workplace changes came from one plant in India, where contaminants coming into that have improved our productivity. Our improvement since the facility exceeded what we were allowed to discharge. In 1996 has resulted in thousands of fewer injuries and savings in 2004, 13 of our 83 exceedances came from one newly acquired 2004 (compared to 1996) of more than $50 million annually. site in Ireland, which is now in compliance.

WORKPLACE INJURY, ILLNESS AND LOST TIME CASES Since 2001, GE’s air exceedances have been in the same range (see chart). Our facilities subject to air regulation and permit 1996 2004 requirements can have up to one million opportunities a year to have an exceedance. We are using Six Sigma tools, PowerSuite’s Injury and Illness 5.60 1.38 Air Log and Compliance Calendar functionality and training to Lost Time Cases 1.33 0.36 minimize exceedances.

AIR & WASTEWATER EXCEEDANCES

160

120

0 00 01 02 03 04 Air WW

1 Air exceedances include exceedances of any numerical limit that applies to any regulated air emission source and to any failure to obtain any required permit or other required authorization for any air emission source. 2 22% of the wastewater exceedances for calendar years 2002 and 2003 were directly attributable to the quality of influent water to a single GE facility, and therefore did not accurately reflect the wastewater quality from this facility. 3 In 2004, 13 of the 83 wastewater exceedances were from a newly acquired facility. Baseyear exceedances—Wastewater 1996 (624), Air 1998 (68).

GE 2005 Citizenship Report 31 Section 5 Environment, Health and Safety

Toxic Release Inventory (TRI) Emissions GE Advanced Materials Emissions Since 1987, GE has reported emissions in the U.S. to the Advanced Materials includes GE’s silicones and plastics opera- Environmental Protection Agency and has achieved reductions of tions, and it constitutes the bulk of GE emissions (approximately toxic emissions of more than 80% despite the growth in facilities 70% in the U.S.). Advanced Materials has achieved consistent and production during that time period. However, during 2003 reductions (more than 80% as a result of voluntary actions). emissions rose for the ﬁrst time. Approximately half of this Unlike the TRI chart, the GEAM chart is adjusted to account for increase was due to a new acquisition in our silicones business, acquisitions and divestments. while the balance occurred as a result of operational difﬁculties at one plant, changes in the methodology of emissions calcula- GE ADVANCED MATERIALS EMISSIONS tions at another site and fuel switching at two locations. (In millions of pounds)

12 TOXIC RELEASE INVENTORY (TRI) (In millions of pounds) 10

9.0 8

7.5 6

6.0 4 2 4.5 0 3.0 96 97 98 99 00 01 02 03 1.5 TRI (U.S.) VOC (International) 0

99 00 01 02 03 1 TRI (U.S. section 5 on-site releases) 53% reduction from 1996 to 2003. TRI Releases 2 VOC (International) 56% reduction from 1996 to 2003. 33/50 Chemicals

1 Covers releases in U.S. only. 2 TRI released from Section 5 of U.S. EPA reports—on-site releases. GE TRI reductions are 83% from 1987 baseline. 3 33/50 Chemicals refer to former EPA program focused on 33 chemicals. GE 33/50 reductions are 91% from 1987 baseline.

GE 2005 Citizenship Report 32 Section 5 Environment, Health and Safety

EHS Training EHS Penalties Training of our employees is a key to achieving the EHS perfor- With more than 400 manufacturing and assembly facilities mance we strive for. The total of training units completed has worldwide, GE has a tremendous compliance record. However, increased from 943,000 in 2000 to 1,571,528 in 2004. This is a there have been a few instances where penalties of $50,000 or function both of the growth of the Company and a more more have been imposed for non-compliance. rigorous approach toward identifying and providing training. In addition to required training, extensive training related to In 1997, GE discovered and voluntarily disclosed that both the internal GE EHS requirements is also given to our employees. Company and Ohio EPA had underestimated air emissions from two of GE’s operations. GE took numerous compliance actions, EHS TRAINING UNITS COMPLETED including substantial investments in control technologies, after (In thousands) which Ohio EPA commenced an enforcement action that was settled for $205,000 in 2003. 1800

1500 Penalties paid in 2003 were driven by two major matters. At our Waterford, NY site, GE paid the State of New York $300,000 as a 1200 result of issues related to wastewater discharges, spill contain- 900 ment and hazardous waste management. The site has instituted 600 a multi-million dollar upgrade project, including enhancements to wastewater treatment and spill containment capabilities. 300

0 GE paid three signiﬁcant penalties during 2004. GE paid a 00 01 02 03 04 $70,000 penalty for failure to apply for a wastewater permit Global modiﬁcation at our Rome, Georgia (USA) location. GE paid Non-U.S. $47,000 to settle a matter with the Ontario (Canada) Ministry of 1 Covers EHS training required by local EHS law or regulation. Labor as a result of a serious injury to an employee at our 2 One training unit equals one EHS course for one person. For example, one Oakville plant. An extensive machine guarding upgrade was employee requiring EHS training in 5 subjects would have 5 training units. undertaken by the facility. A $40,000 penalty was paid after carbon monoxide caused a fatality at the Hendersonville, North Carolina plant in 2003. This incident led to a global alert and review of ventilation procedures and work practices.

EHS PENALTIES (In thousands)

$800

600

400

200

0 00 01 02 03 04

1 Includes penalties paid during calendar year. 2 Does not include pending matters not resolved.

GE 2005 Citizenship Report 33 Section 5 Environment, Health and Safety

Agency Inspections New Metrics Agency inspections in the U.S. have remained in the same range GE undertakes frequent reviews of the need for new metrics. for several years. In 2004, for the ﬁrst time, the number of We focus on ensuring that our current metrics are implemented inspections outside the U.S. exceeded those inside. fully on a global basis and understood by our operations before adding new ones. The most recent addition came when we AGENCY INSPECTIONS started to collect data on 2002 Greenhouse Gas (GHG) emissions. (Inspections of GE operations by governmental EHS authorities) We are currently planning to collect water use data across the Company starting in 2006. 800 Identifying Trends Because we have many different types of operations, trend 600 monitoring and future issue identiﬁcation is done by each GE business, while the corporate level focuses on trends with multi- business implications. For example, new European Union 400 directives require the elimination of some hazardous materials from electrical and electronic products (ROHS) and the take-back 200 of those products at the end of their useful life (WEEE). GE actively followed the development of the directives for years prior to their adoption. Since adoption, the businesses with 0 covered products have put in detailed investment and manage- 00 01 02 03 04 ment plans for phasing out the restricted materials, and we U.S. expect to be in full compliance by the implementation date. On Non-U.S. WEEE, GE is planning a mix of direct take-back and participation in collective schemes. While the EU is out in front on this issue, China has proposed similar legislation, and Japan and a number of U.S. states have already adopted programs that start down the path the EU has taken. We have an active task force monitoring and working with our businesses to prepare for these initiatives.

Continual Evaluation Through our EHS operating system, we identify areas for improvement based on audit and enforcement data, internal investigation of incidents, feedback generated in our various EHS Council, Task Force and training activities, suggestions from our operations and trends in stakeholder expectations.

These improvements cover a broad range of activities from such simple things as improved fall protection procedures to detailed rules for dealing with electrical safety (Lock-Out Tag-Out program). In the environmental area, we’ve focused heavily on improving our chemical management programs as well as developing the Environmental Framework to make GE expectations clearer and more user-friendly for our operations.

GE 2005 Citizenship Report 34 Section 5 Environment, Health and Safety

5.6 Climate Change

There will continue to be an increasing need around the world to reduce greenhouse gas emissions. Our climate change strategy has six elements:

1 Providing a wide array of products across our businesses to 4 Ensuring governmental authorities and regulators are aware help today’s consumers and business customers meet their of the capabilities of GE technologies. For instance, GE has needs for energy efficiency and reduced GHG emissions. For a testified in the U.S. Congress about its Integrated Gasification comparison of the GHG emissions from GE operations to the Combined Cycle (IGCC) technology. GHG emissions reductions that our products create for our customers, we looked at the GHG emissions avoided by the current installed base of GE wind turbines — just one of GE’s 5 Participating in efforts to discuss the difficult technological and products that contribute to improved energy efficiency and policy issues raised by climate change. In 2004, GE convened GHG reductions — and found that avoided emissions from our an Energy 2015 conference with its customers. We are also wind turbines are almost equal to the GHG emissions from one of nine companies in the Northeast Climate Group GE’s own global operations. organized by the World Resources Institute (WRI). The WRI recently issued a report on the group’s activities entitled “A The Carbon Disclosure Project, a consortium of institutional Climate of Innovation — Northeast Business Action to Reduce investors interested in climate change, commented after Greenhouse Gases” which is available at http://www.wri.org. reviewing GE’s product portfolio in 2003 that “GE stands out GE researchers are now participating in technology discussions as being especially well-placed with respect to providing organized by the UN Intergovernmental Panel on Climate low-carbon solutions to a number of key greenhouse gas Change. GE is a multi-year sponsor of the annual Green Trading emitting markets.” Summit held in the U.S., devoted to increasing knowledge of trading schemes to help reduce carbon emissions and provide other environmental benefits. 2 An aggressive research program looking at next-generation technologies such as hydrogen storage, hybrid locomotives and solid state lighting. 6 Taking action on the GHG emissions generated by GE’s own operations.

3 Funding longer-term research at academic institutions. GE and other companies are sponsoring Stanford University’s Global Climate and Energy Project (GCEP), an unprecedented, multi-million dollar collaborative research project to identify and develop alternative and next-generation energy technologies. The research results will be shared globally with scientists, governments and other private institutions in order to accelerate the development of these technologies.

GE 2005 Citizenship Report 35 Section 5 Environment, Health and Safety

Greenhouse Gas (GHG) Emissions GE has about a dozen manufacturing facilities in Europe covered GE has undertaken an annual inventory of its greenhouse gas by the European Union Emissions Trading System coming into emissions since 2002. The third inventory covering the 2004 effect in 2005. Based upon initial information regarding CO2 calendar year will be available in mid-2005 and will be posted on allocations, we anticipate that these facilities will be able to the GE Web site. operate within their allocations.

GE has set a 30% GHG intensity reduction goal by the end of GE Commercial Finance (GECF), which offers businesses around 2008, along with a 1% absolute reduction by the end of 2012. GE the globe an array of financial products and services, is an has also set an energy efficiency improvement goal of 30% by industry leader in setting practices to ensure that environmental the end of 2012. Progress will be measured against a 2004 issues are thoroughly considered in financing transactions. baseline. During 2004, GE Transportation joined the EPA Climate There is a special staff of 27 environmental experts for these Leaders program and made a GHG intensity reduction commit- reviews. These practices have been integrated into decision ment of 25% covering 2003-2008. GE is also the largest partici- making at all management levels including the Board of pant in EPA’s Million Monitor Drive to enable power savings Directors. GECF has begun to supplement its investments features on personal computers. in conventional energy with investments in renewable sources, including solar, biomass, hydro, wind and geothermal. GECF now has $568 million in renewable energy assets. These assets are in GE GHG EMISSIONS the form of equity (common and preferred stock), debt and lease (In millions of metric tons) financing. Additional investments in renewable and conventional energy sources are planned along with financing for water-related 12 projects, including desalination and wastewater treatment.

0 02 03 Indirect Direct

GE TOTAL ENERGY USE (In millions of gigajoules)

150

120

0 02 03

GE 2005 Citizenship Report 36 Section 5 Environment, Health and Safety

5.8 Remedial

5.7 Waste Responsibilities

GE takes great care to ensure that the waste it generates GE is a 126-year-old company, with facilities across the globe. goes to sites that meet GE’s standards, standards significantly Many of those facilities began operating at a time when scientific more protective of the environment and worker safety than understanding and regulatory requirements were far differ- local legal minimums. ent from today. Changing standards and knowledge require that these “legacy” issues must be addressed. We are currently We operate a “Waste Site Qualification Program” in 25 countries involved in 87 sites on the Superfund National Priorities List. that requires the auditing and pre-approval of locally permitted At many of these sites, GE’s involvement is very small. We have facilities before our operations can use them and we plan on sole responsibility at just eight. We have reached agreements adding 6 more countries to the program during 2005. with federal and/or state regulators at almost every site about the right way to proceed. GE’s standards frequently require disposal sites to upgrade and improve their operations beyond local law requirements if they We have worked cooperatively with government agencies to want to be approved for GE use. GE has expanded its program in address remedial issues at virtually all sites and we meet our Latin America and Asia (GE rejects over 50% of locally licensed commitments. Here is an update on the status of our most sites in these regions). One consequence of this program is that significant PCB sites. because of GE’s high standards, there are occasions when we cannot approve a disposal facility for a particular waste stream Hudson River or in a particular area. In those circumstances, GE sites must GE used polychlorinated biphenyls (PCBs) at two plants on the store their wastes securely onsite until such time as an approved Upper Hudson River in New York State many decades ago, site becomes available. before concerns were raised about their human health and environmental impacts. GE’s use of PCBs as a fire retardant was at all times legal. GE discontinued their use in 1977. These industrial operations discharged PCBs into the Hudson River. After a two-decade long assessment of what to do about the PCBs, the U.S. Environmental Protection Agency (EPA) decided in 2001 to dredge portions of the river. Since then GE has been working constructively with EPA on the dredging project. In 2003, GE and EPA reached an agreement under which GE will design the project at a cost of about $25 million. In addition, GE agreed to provide EPA an additional $13 million for costs EPA will incur on this project and to reimburse EPA $15 million for past costs EPA incurred on GE’s Hudson River PCBs reassessment.

GE has also completed a $25 million sediment-sampling program in the Upper Hudson. GE and EPA reached agreement on this project in July 2002. More than 40,000 samples were taken from the river and analyzed to help determine where dredging should occur. As part of this agreement, GE reimbursed EPA another $5 million for past costs and agreed to reimburse EPA for up to $2.65 million in costs related to overseeing and reviewing GE’s work.

This brings GE’s ﬁnancial commitment to the EPA dredging project during 2003 and 2004 to nearly $90 million. GE and EPA are negotiating resolution of the remedial phase of the project. EPA has said publicly that GE has been a cooperative partner on this project. Overall, GE has spent more than $300 million investigating and cleaning up PCBs from the Hudson River since 1976. GE and EPA have had a scientiﬁc policy disagreement over the advisability of dredging but GE has met all EPA dead- lines and is now constructively working with EPA because the Hudson River remedial decision has been made.

GE 2005 Citizenship Report 37 Section 5 Environment, Health and Safety

Rome, Georgia Housatonic River GE is working cooperatively with the Georgia Environmental GE, the EPA, the State of Connecticut, and the Commonwealth Protection Division (EPD) to remediate PCBs at GE’s former Rome of Massachusetts are working cooperatively under a compre- transformer manufacturing plant. GE is regulated under a state hensive settlement agreement reached in 2000. The work is pro- permit, which addresses investigation and cleanup of PCBs both ceeding smoothly. GE has completed work on the first half-mile on the plant side and outside the plant, and recently completed of remediation of PCBs from the Housatonic River in Pittsfield, a soil cleanup along streams and creeks where small amounts of Massachusetts, where GE formerly manufactured transformers PCBs flowed with storm water runoff from the plant. In addition, and capacitors. GE is also undertaking a cleanup of the former GE has remediated 17 homes at which homeowners used PCB plant area. GE will transfer 52 acres of land to the PEDS for oil around their property for weed control. GE has spent over development in one of the largest “Brownfields” projects to date. $55 million on environmental investigation and cleanup in Rome The EPA is conducting the next phase of the river cleanup, and will continue to do all the necessary work to remediate the a project funded through a GE-EPA cost-sharing arrangement. property and its environs. GE has spent almost $400 million to date on its environmental investigation and cleanup at its former transformer plant and nearby areas.

GE 2005 Citizenship Report 38 Section 5 Environment, Health and Safety

5.9 Excellence Programs and External Recognition

Safety excellence programs are one of the key ways GE ensures AWARDS FOR SAFETY EXCELLENCE PROGRAMS management leadership, engages employees and creates safe workplaces. GE is the #1 participant in the U.S. Occupational 91 U.S. VPP sites Safety and Health Administration’s Voluntary Protection Program (VPP), and we participate in similar government programs #1 participant in program outside the U.S.

Based on the success of these government-sponsored initia- 23 Mexico VPP sites tives, GE initiated its own Global Star program for those coun- (all GE-controlled manufacturing sites except tries where VPP programs don’t exist. Global Star is only for the “best of the best” and requires sites to go through a lengthy for recent acquisitions in last two years — preparation, pre-audits and a ﬁnal audit by GE safety experts. and they will be applying for VPP) The success of this program can be seen in the increase from one Global Star site in 1998 to 55 today. 5 Alberta VPP sites As of the end of 2004, GE had 174 locations in recognized excellence programs. Today, almost 100,000 GE employees work at sites recognized for safety excellence. 55 Global Star sites The United States, Canada and Mexico have chosen GE to be including Hungary (8), Brazil (6), Canada (6), their partner in the creation of a new NAFTA VPP-type program. We are also working with the Irish government on a VPP India (5), China (4), UK (4), Singapore (3), prototype program being developed for Ireland. Spain (3) and Japan (3)

Although ISO 14001 certification for environmental performance is not a requirement for GE facilities, many Company operations have been asked to obtain certification by their customers. Today, GE has 89 ISO 14000 sites. Our experience has been that the GE EHS management system provides most of the elements of ISO, so our operations are well prepared if customers ask for certification.

In Mexico, we have nine plants certiﬁed in the Clean Industries program run by the federal environmental agency and nine other plants are preparing applications to join the program.

In addition, last year, GE operations received almost 100 awards and other recognition for EHS performance and excellence from government agencies and customers.

GE 2005 Citizenship Report 39 Section 6

Globalization

Doing business globally is a reality of conducting business in the 21st century. As technology has accelerated the rate of expan- “Winning companies sion and enabled a new era of communication, the world has become a more accessible and smaller place. must think globally, Business in this environment has become more dynamic, more competitive and increasingly complex. Competing within a but understand local global marketplace means understanding the needs of customers around the world, building new relationships and capabilities consequences.” in diverse markets, evaluating the workforce to balance talent and productivity with cost and competitiveness and navigating a regulatory environment with consistent standards of integrity across the globe.

As these changes occur, our ability to collaborate on problems and imagine solutions that can effect lasting change has never been greater. GE is convinced that participating in the global marketplace can create jobs, fuel innovation and grow its businesses in a way that solves some of the world’s toughest problems and is beneﬁcial to the communities where we work and live. Such participation helps integrate the global economy and promote development, stability and peace. Section 6 Globalization

6.1 GE Around the World

Being a successful company in the 21st century means serving Our current revenues are derived from markets around the customers all over the world. To do so, we must continually strike a world and reﬂect our status as a truly global Company. balance between the future drivers of growth, the competitive dynamics of different markets and industries, and how we can GLOBAL REVENUE BY REGION grow our Company and employees to compete. GE employs

more than 300,000 people in more than 100 countries around 5% Middle East, Africa/Other the world and has manufacturing facilities in more than 40 6% Americas countries. The Company’s human resources policies and practices 10% Asia/Pacific are intended to be global in nature and apply consistently across the world. 53% USA

26% Europe

GE COUNTRY LOCATIONS WORLDWIDE (dark color indicates countries of GE locations)

GE 2005 Citizenship Report 41 Section 6 Globalization

6.2 Emerging 6.3 Job Economies Migration

Emerging economies are a huge opportunity; by literally every In recognizing the many opportunities that globalization brings, measure, GE can build value. As global markets become increas- GE is also sensitive to addressing its challenges. Among these ingly interdependent, the opportunities to grow business, influence is the perceived threat of job migration. Although this is often ethical standards of behavior, and contribute vital infrastructure perceived in relation to the U.S. market, it is truly a global issue. and products with high standards of environmental performance, Markets in Europe are experiencing job movement between have never been greater. We can make a positive difference. eastern and western countries, and Mexico is also confronting the challenge of job outsourcing to China. These considerations In 2004, GE’s revenues from the developing world reached demonstrate the reality of an increasingly competitive global $21 billion, a 37% increase. We now expect to get as much as marketplace. 60% of our future revenue growth from emerging markets including China, Russia, Eastern Europe, India, and the Middle As GE’s presence has grown around the world, the composition East. These regions represent the fastest-growing markets in the of its businesses and its core capabilities has changed to better world today. In these markets, GE can provide much-needed serve those markets. Twenty-five years ago, GE’s core business- infrastructure. We will deliver vital systems for water, power, es were heavily concentrated in manufacturing. As with other healthcare, and transportation to improve the quality of life and companies, technology and innovation have streamlined our access to opportunity in these countries, and allow them to manufacturing, and we have had greater growth in seeing the participate and benefit more fully in the global economy. greater part of our businesses today comprised of services.

By providing critical infrastructure needs, GE has the opportunity To stay competitive, GE always seeks to lead in high-growth and to lay a foundation for sustainable growth. In each of its major high-tech businesses. To do this, we have moved operations to infrastructure categories, GE has developed technologies that be close to our customers everywhere that we do business, and lead in environmental standards performance, producing lower we work to ensure that we combine the lowest cost of manu- emissions with heightened energy efficiency. facturing with the highest quality of products and services for all our customers. GE addresses the need to remain competitive Beyond supplying infrastructure, GE is building relationships and with sensitivity to job preservation based on three principles: sharing best-of-class systems. Because GE operates with the being competitive, compliant and compassionate. same environmental, health and safety and integrity standards in every country in which it conducts business, GE has the Competitive opportunity to share best practices and ensure adherence to As a global company, GE competes and operates within a global high standards in developing countries. One example of this market that is rapidly changing. To continue to grow jobs and practice occurred in China where, in 2004, GE organized an EHS business, GE must compete and win globally in response to the Forum in Shanghai with participation from Chinese officials from talents, products and services that are valued in that market and agencies responsible for the environment and safety. More than that are cost and quality competitive in world markets. 100 attendees, including participants from other multinationals, came together for a day of education and sharing of best Compliant practices in EHS. At the request of the Chinese agencies, GE has GE seeks to implement both the spirit and letter of the law agreed to share some of its EHS tools as they develop their own wherever it conducts business, and respects the cultures and comprehensive programs to address China’s EHS challenges. GE customs of employees, suppliers and customers. With this will hold another EHS Forum in China in 2005. GE also is planning commitment, GE brings heightened environmental, safety and a similar forum in China on the general topic of legal and employment standards to facilities around the world and financial compliance by private entities. contributes to the economic development of emerging markets.

Compassionate By recognizing market trends and subsequent employment impact, GE helps employees affected by workforce reductions transition to new careers. In most cases, GE provides long lead notice, job search assistance, education, training and preferen- tial placement for these employees. GE also often helps bridge many employees affected by job movement to early retirement.

GE 2005 Citizenship Report 42 Section 6 Globalization

6.4 On Human Rights: A letter from Bob Corcoran, GE Vice President of Corporate Citizenship

We face the same human rights challenges that any good More than 300,000 people come to work at GE every day — each company faces: setting the highest standards in our responsibil- unique, each with responsibilities, obligations, loved ones, hopes ity to and relationships with employees, enforcing appropriate and dreams. Some are second-, third- and even fourth-genera- labor standards with suppliers and addressing varying challenges tion GE families. To every one of them, GE represents an in the countries in which we operate. Respecting basic human opportunity. For some, it is the basic opportunity to put food on rights seems straightforward until you find more than 17 million the table and provide security for their families; for others it’s the results when you Google “Human Rights.” While there is general opportunity to grow and get ahead; for still others it is the agreement that the Universal Declaration of Human Rights, opportunity to make a difference in the world. As a Company first adopted by the United Nations in 1948, is the most widely with global reach and a culture of meritocracy, each of these can recognized definition, there remains much debate on how to be and is achieved at GE every day. implement its Articles. It is a remarkably complex area in practice. Our expectation of fair treatment and respect for human rights Let’s be simple. Our fundamental responsibility to employees is also extends to the way GE suppliers deal with their employees. to maintain a culture in which every employee is treated with We have a disciplined Supplier Assessment Program and a team dignity and respect, has both a voice and a right to be heard of over 430 trained auditors who assessed more than 3000 and, in turn, is accountable for treating others with the same suppliers to ensure adherence to requirements and standards dignity and respect. for health and safety, labor practices and treatment, and environmental performance. This responsibility extends to providing good wages and benefits, safe working conditions and an opportunity for In the body of this report, you will be exposed to our thinking employees to develop and do their best. GE employees are and actions across a broad array of issues. You will have a governed by The Spirit & Letter of our Commitment and a simple chance to view our policies and practices, our record of accom- set of fair employment practices that form the basis for treat- plishments and areas where we must improve. Although we’ve ment of employees around the world. They include merit- and come a long way from Thomas Edison’s lab over 125 years ago, qualification-based employment decisions, freedom from we have a long way yet to go. We look forward to the journey, discrimination, a safe and secure workplace, privacy protection, and to making a difference in the world and on the difficult freedom of association, recognition of the right to collective issues facing business today. bargaining, prohibition of forced or child labor and a robust ombuds process to give voice. GE’s Fair Employment Practices Policy embraces the International Labor Organization’s Declaration on Fundamental Principles and Rights at Work. Robert L. Corcoran Vice President, GE Corporate Citizenship and President, GE Foundation

GE 2005 Citizenship Report 43 Section 6 Globalization

6.5 Human Rights

It is our goal to treat every GE employee with respect and GE does have a regular process for reviewing commercial and dignity. To ensure this, GE complies with all laws pertaining to reputational risk in nations where it is doing or plans to do freedom of association, non-discrimination, privacy, collective business. GE tracks issues related to the state sponsorship of bargaining, compulsory and child labor, immigration and wages terrorism, states with present or potential involvement with and hours. Beyond legal compliance, we strive to create an weapons of mass destruction and states with significant human environment considerate of all employees wherever GE business rights issues or narcotics and money laundering issues. In is being conducted. Our fair employment practices do more than rare cases, continuing business in such a country may have keep GE in compliance with applicable labor and employment an adverse impact on GE’s reputation and business. Such laws. They contribute to a culture of respect. decisions are made by senior management in consultation with the GE Board, weighing the risks and benefits of a withdrawal At GE, we evaluate where we can conduct business in accor- or moratorium. dance with our standards of governance and citizenship, where we are confident that we can serve our customers effectively Myanmar and Iran represent two examples of countries and where we can enact systems of safety and security for our where GE has adjusted its business practices in response to employees. In countries where the political climate is evolving, these considerations. Myanmar has a history of human rights we recognize the opportunity to function as a positive influence violations that, at this time, keep us from pursuing business in shaping business conduct. Our goal is to ensure that a opportunities, and we have long had a policy not to do business business opportunity never compromises our integrity, and that there. Recently, GE’s senior management, in consultation our involvement in any country will serve as an example of with the Board, decided not to accept new business in Iran upholding the highest legal and ethical standards. We can and (GE’s non-U.S. subsidiaries have decided to fulfill their commit- do operate with global integrity standards anywhere. ment to existing customers) because of uncertain conditions related to that country.

GE 2005 Citizenship Report 44 Section 7

Community

The better world we imagine becomes real by the actions we take in local communities around the world. Each year, the GE family makes an impact through the Company’s innovative philanthropy, committed businesses, active volunteers, engaged executives, generous employees and donated products. Our ambitious programs include championing educational opportunity, spotlighting public service announcements on NBC and improving healthcare in Africa. In 2004, the GE family provided more than $150 million in cash, products and service to support local and global services organizations in communities around the world. Section 7 Community

7.1 Philanthropy

The core of our philanthropic effort is the GE Foundation. For Aiken was GE’s first College Bound school. It is an inner city high more than 50 years, the Foundation has invested in programs school where more than 90% of the students come from based on a fundamental premise: a quality education ushers in a minority backgrounds and more than 57% qualify for a lifetime of opportunity, which helps build a strong and diverse subsidized lunch. Before the first GE Foundation grant to Aiken citizenry and workforce. The Foundation seeks to have a positive in 1989, the college-going rate was 10%. After implementation influence through two primary channels: 1) by strengthening of College Bound, the college-going rate has risen to 62%. educational access, equity and quality for disadvantaged youth in targeted GE communities around the world, and 2) by supporting GE employee and retiree giving and involvement. “ Not only is GE’s The need for quality education has never been more urgent, especially for individuals from disadvantaged backgrounds. The monetary support a Foundation is committed to helping children learn and thrive, and its research-based grant initiatives are focused on achieving lasting change. key to maintaining

The Foundation’s efforts to address challenges in education are a strong, viable College driven by some sobering statistics:

• In the UK, one third of students will not Bound program but the complete a 12th grade education. • In the US, only 67 out of every 100 students personal commitment of will graduate from high school on time, and only 18 will end up graduating from college. many individuals is also • In China, 71 percent of the country’s illiterate population is female. • In India, 40 percent of first-grade students incalculable in providing will drop out by the fifth grade. • In Mexico, 90 percent of students who start the kind of support school will not get to college. crucial to each individual College Bound The GE Foundation’s 15-year, $30 million College Bound program works with selected schools and GE businesses in 17 student’s success.” communities to significantly increase college attendance from low-income and inner city schools. Each school designs its Donna Perzigian, project based on its unique needs, but all include GE volunteers, Principal, Aiken University High School staff development, curriculum change and enrichment activities for students.

Desnikki Andrews, a participant in College Bound, is currently a senior at Aiken University High School in Cincinnati, Ohio. As a freshman, Desnikki and most of her classmates in the ninth grade didn’t believe that college was an option. With only her sister to support her, Desnikki assumed that a college degree was out of reach and that her future had already been deter- mined. However, through College Bound and her GE mentor, Desnikki learned that opportunities are limitless with hard work and motivation. She is now in the twelfth grade and will graduate with the 2005 class. She plans to study psychology at Spelman College or Tennessee State — something she never would have dreamed of three years ago.

GE 2005 Citizenship Report 46 Section 7 Community

Desnikki and her fellow classmates have beneﬁted from improved curriculum and instruction, school policy improvement efforts, college and career workshops, the GE volunteer network, and a postgraduate alumni network. Further, the Aiken Summer Bridge Program was implemented to capture students who might otherwise drop out and provide them with the skills and encouragement to continue.

To date, there have been more than 20,000 students involved in College Bound and 1,600 teachers in active schools. The chart below shows the increase in college matriculation rates after College Bound was implemented at several of the schools:

COLLEGE-GOING RATES AFTER COLLEGE BOUND IMPLEMENTATION

75%

61% 57%

22% 23% 25%

1989 2003 1989 2003 1989 2003

ALBUQUERQUE CLEVELAND LOUISVILLE

GE 2005 Citizenship Report 47 Section 7 Community

Math Excellence The GE Foundation’s Math Excellence program seeks to support “Whatever it took, comprehensive pre-college strategies for students that result in long-term, sustained impact on the skills, interest, and I was willing to participation of under-represented students in engineering, information technology and quantitative ﬁelds in business. More than 16,700 students and 900 teachers have participated in get there. My goal was Math Excellence activities. to get into an acceler- A Math Excellence grant to the Lynchburg City Schools in Virginia is focused on increasing minority participation in college prep classes, increasing the number of college-bound students ated math program. through curriculum enhancement, and fostering a better learning environment. If I hadn’t taken DeShawn Johnson graduated from Lynchburg’s E.C. Glass High trigonometry, I wouldn’t School in 2004 and is pursuing a degree in computer engineering at the University of Tennessee. DeShawn was involved for three years in the Math Excellence initiative. He took two periods have been ready for of math per day, worked with mentors and teachers regularly and participated in special classes to prepare him for college. engineering.”

DeShawn Johnson, Former Math Excellence Student

GE 2005 Citizenship Report 48 Section 7 Community

PHILANTHROPIC HIGHLIGHTS AND RESULTS India: Pratham Pune Education Foundation This $100,000 two-year support program ensures that young children have access to formal education. The program includes Faculty for the Future a literacy component, a “bridge” course to encourage youth Since 1990, more than $20 million has gone to programs to drop-outs to return to school, and a reading/arithmetic effort increase the number of women and minorities entering faculty that empowers young women to teach. positions in targeted academic ﬁelds: business, engineering and the sciences. More than 200 individuals have taken faculty Hungary: Opening Doors Program positions to date after being supported by the program. This $250,000 investment supports three secondary schools in underprivileged parts of Hungary, helping students achieve academic success, prepare for university, and create opportunities Scholarships to integrate them into the Hungarian and International job markets. The GE Foundation’s partnership with the International Institute of Education (IIE) began in 1987 and has grown into an ambitious EMPLOYEE AND RETIREE GIVING AND INVOLVEMENT $1.4 million annual program that enables nearly 500 scholars each year to realize their higher education dreams at more than 100 universities across 12 countries. In recognition of GE’s GE employees continue to be generous in donating funds to a support of education, IIE presented GE with the “Opening Minds variety of causes and community initiatives, accounting for Corporate Leadership Award” in 2004. The GE Foundation also nearly $41 million of total GE family giving every year. These works with organizations such as the Jackie Robinson Foundation, contributions provide support to thousands of local organiza- the Thurgood Marshall Scholarship Fund, the National Action tions that include schools, parks, homeless shelters and Council for Minorities in Engineering (NACME) and others community organizations. to increase the number of minority students pursuing higher education degrees. United Way GE is ranked number ﬁve among United Way supporters in the U.K.: Science, Technology, Engineering, U.S. With annual giving over $30 million, the GE Foundation and and Mathematics Program (SETNET) GE employees support nearly 200 United Way organizations in SETNET is a $250,000 two-year program to build a pipeline communities across the U.S. of motivated and talented secondary school students from disadvantaged areas of the U.K. pursuing quantitative academic and career opportunities. GE Foundation Matching Gifts Program 2004 marked the 50th anniversary of the GE Foundation’s Brazil: International Medical Services for Health (INMED) Matching Gifts Program. Matching $18 million annually in Partnerships for Children is a $250,000, two-year initiative that employee and retiree gifts, the GE Foundation helps increase the strengthens primary education in the disadvantaged community giving power of GE employees and retirees by matching of Jacarezeinho by delivering programs to students, parents, and donations to colleges and universities as well as approved social teachers in the community. service, arts, environmental and other community-based organizations. In 2004, there were more than 1,600 recipient China: China Youth Development Foundation (CYDF) organizations. The GE Foundation created the concept of a The Project Hope program is an $800,000 program to support corporate matching gift program in 1954; since then, more than professional development for teachers from remote and 8,600 companies worldwide have adopted similar programs, disadvantaged communities in China, where teaching and contributing more than $1 billion per year. learning standards lag far behind those in major cities.

GE 2005 Citizenship Report 49 Section 7 Community

7.2 Volunteerism

All over the world, GE people reach out to strengthen the Community Service Day: Milwaukee, U.S. communities where they live and work. GE volunteers contribute An example of a community-wide volunteer activity is GE more than one million hours of service annually, making an Healthcare’s Annual Community Service Day. Approximately impact on education, human services and the environment. 2,000 volunteers, including GE Healthcare, GE Healthcare Former President George H. W. Bush recently presented GE with Financial Services, and Milwaukee Public Schools staff the 2004 Award for Excellence in Workplace Volunteering from work tirelessly to help prepare schools for the upcoming the Points of Light Foundation. The award honors businesses school year. that have shown their commitment to mobilizing volunteers who help solve serious social issues. From building playgrounds In 2004, volunteers arranged classrooms, painted murals, in disadvantaged neighborhoods to mentoring students and rehabilitated playgrounds, organized school libraries, land- assisting the elderly, people at GE make a difference year-round. scaped and even provided technical assistance to set up computer labs. GE’s largest formal volunteer program, GE Elfun Volunteers, is a global organization made up of employees and retirees who help strengthen GE communities through effective and sustainable volunteerism. Each year, 50,000 GE Elfun Volunteers in 44 “Community Service countries around the world implement more than 4,000 individual volunteer projects, with a major emphasis on educa- Day is part of a long- tion, human services, and the environment. standing GE tradition GE Elfun Volunteers: Taunton, U.K. In the Southwest corner of the U.K., this Elfun chapter is involved in more than 50 projects every year. The chapter has developed of contributing positively strong partnerships with four inner city primary schools. Volunteers have been involved at multiple levels including: to the community and

• Improving early information technology training and development improving the quality of • Working one-on-one with children to improve reading and math skills life around us.” • Leading workshops for school staff on effective meeting facilitation, Joe Hogan, brainstorming methods and team building President and CEO, • Implementing team-building projects to GE Healthcare Technologies enhance the learning environment of the school grounds

GE 2005 Citizenship Report 50 Section 7 Community

Global Community Days “Community partners like A signature GE-wide volunteer effort is the annual “Global Community Days.” Over the course of one month, 11,000 GE GE provide an abundance volunteers from ﬁve continents were “One GE,” working on hundreds of service projects that addressed a range of commu- of help to Milwaukee nity issues. Public Schools. The work HIGHLIGHTS INCLUDE: In Hungary, 200 employees from ﬁve GE businesses worked to make an orphanage for disabled children “obstacle-free.” The done by thousands of GE volunteers built ramps, widened doorways and constructed an volunteers over the last accessible barbeque area.

ten years has helped In Japan, 300 GE employees participated in “Imagine a Better Community,” with 850 students at 14 local schools to come up countless children start with innovative ways to improve their communities.

the school year in more Efforts in India included four cities: Chandigarh, Jaipur, Lucknow and Kolkatta. Projects ranged from free medical check-ups for pleasant classroom senior citizens to health and hygiene education in disadvantaged areas to food supply and distribution for 170 people at Mother surroundings.” Theresa’s Home for the Dying and Destitute.

Milwaukee Public Schools Superintendent William Andrekopoulos In the U.S., more than 860 volunteers in Fairﬁeld County, Connecticut, worked on 22 projects that touched 75,000 people. Projects included clearing parks and nature centers, building playgrounds, partnering with Habitat for Humanity and Americares to renovate homes, and running Special Olympics events.

Junior Achievement GE volunteers participate in Junior Achievement (JA) programs that seek to spur student achievement in disadvantaged areas around the world. The GE Foundation provided a two-year, $1.5 million grant to support and expand Junior Achievement pre-college programs in 75 GE communities around the world. GE volunteers play a critical role in the overall success of this program by helping JA students learn and demonstrate economic business concepts and skills. In 2004, more than 2,000 GE volunteers and 43,000 students took part in the GE/JA initiative.

GE 2005 Citizenship Report 51 Section 7 Community

7.3 Product and Service Donations

Product and service donations represent a unique way for GE to increase the quality of life in areas of need. What differentiates “It has been on the high- this type of giving from other contributions is GE’s ability to combine a wide range of technology and resources to ensure a broad and sustainable impact in local communities. Working priority list of the Ghana with governments and other institutions to provide comprehensive solutions, GE’s resources can help improve the lives of Health Service, with the people living in areas where basic needs remain unmet. intention to upgrade the This approach is perhaps best exempliﬁed by GE’s efforts in Africa. In October 2004, GE launched a $20 million humanitarian project that aims to bring improved healthcare and infrastruc- Asesewa Health Centre ture to African hospitals and clinics. GE Healthcare, GE Energy, GE Consumer & Industrial and GE Infrastructure are donating into a district hospital. products and services to address multiple critical needs simultaneously. Starting at two locations in Ghana, these GE’s equipment donations contributions range from healthcare and power generation equipment to water ﬁltration systems, appliances and lighting to increase the level of healthcare. to this health centre

In addition to these efforts, the GE Foundation is matching couldn’t have come at employee contributions to support local education in the same African communities. GE is engaging its African American Forum a better time and will to establish ongoing relationships at the community level, initiate benchmarking studies, and track progress. really make a difference.”

Professor Agyeman Badu Akosa, Director General, Ghana Health Service

GE 2005 Citizenship Report 52 Section 7 Community

7.4 The Indian Ocean Tsunami

The More You Know Campaign The Indian Ocean tsunami that occurred on December 26, 2004, Since its inception in 1989, NBC’s “The More You Know” affected 12 countries and hundreds of thousands of lives. Never campaign has produced Emmy and Peabody Award-winning in our lifetime has such a natural disaster affected so many public service announcements that educate and raise aware- people in different parts of the world. ness about important societal issues ranging from prejudice to parental involvement. “The More You Know” campaign is the The GE family was able to uniquely apply our broad-based longest-running, most comprehensive network public service capabilities and contribute more than $20 million in cash, campaign, valued at nearly $33 million annually and reaching products and services, as well as manpower, to the tsunami more than 64 million viewers each week. Topics are presented relief efforts: by a range of NBC television personalities including Sean Hayes and Megan Mullally (Will & Grace), Ming-Na, Goran Visnjic, Mekhi • GE Foundation contributions of $1 million to the Phifer and Linda Cardellini (ER), Donald Trump (The Apprentice), International Red Cross and $100,000 to UNICEF Jesse Martin and S. Epatha Merkerson (Law & Order) and Brian • GE employee contributions totaling $4 million, which was Williams (Nightly News). The program has tackled a range of matched 100% by the GE Foundation for a total of $8 million issues such as talking to children about drugs and alcohol abuse • Two water purification systems, plus dozens of smaller portable and encouraging citizens to become mentors. systems, provide tens of thousands of Indonesians with drinkable water every day in Banda Aceh, the country’s In executing “The More You Know” campaign, NBC works closely province hardest hit by the tsunami with a number of national agencies, including the U.S. Department • Two 800-kilowatt power generators donated by GE Energy to of Homeland Security, the National Institute on Media and the run the water filtration systems (Energy also donated 10 power Family, the Centers for Disease Control and Prevention, the VERB generators to Sri Lanka) Campaign for Physical Activity, the Substance Abuse and Mental • Three thousand solar-powered lanterns for refugee Health Services Administration, the National Mental Health camps in Indonesia Information Center, and the National Clearinghouse for Alcohol • A range of portable medical equipment, including X-ray and and Drug Information. ultrasound machines to India, Indonesia, Sri Lanka and Thailand to assist in critical first-level healthcare “El Poder de Saber” • Benefit telethons aired on NBC Universal’s broadcast and cable In January 2004, the Telemundo Network launched “El Poder platforms, as well as on its owned and operated television de Saber,” a public service initiative geared toward the Hispanic stations, raised over $32 million from viewers. In addition, community and focusing on education. “El Poder de Saber” was tsunami relief public service announcements aired throughout created for Spanish-language viewers, and includes on-air PSAs primetime, late night and daytime programming on the NBC and a Web site. Universal Network

GE volunteers in India delivered truckloads of relief materials to tsunami survivors in Bangalore, Chennai, Delhi, Hyderabad, Jaipur and Mumbai. At the GE India Business Centre, more than 1,600 people were examined and received medicines. In the U.S. and in Thailand, Elfun chapters led fundraising efforts and worked with local NGOs on distribution plans for relief materials. Volunteers from Indonesia’s Elfun chapter hand delivered donations and relief supplies to tsunami victims in the hardest hit areas.

GE 2005 Citizenship Report 53 Section 8

Customers, Products and Services

As the economics of the global marketplace and the sustainability of our global environment become more interdependent, so does our collective future.

Based on existing data on climate change, population growth, natural resources and water usage, economists and business leaders see a widening gap in the access to environmental resources, especially clean water and energy. In response, we have established growth platforms in alternative and more efﬁcient energy systems, water use and environmentally advantageous products that will help GE and our customers compete and protect the environment at the same time.

Addressing these challenges is not a simple task. Our Company’s heritage in technological innovation, our breadth of businesses and our depth of expertise allow us to tackle the toughest problems on behalf of our customers, our own future growth and for the beneﬁt of our communities around the world. Section 8 Customers, Products and Services

8.1 Customers and Markets

Now more than ever, our customers are seeking ways to grow Water Scarcity their businesses while also meeting or exceeding environmental A third of today’s global population faces severe water shortages. standards. We are meeting those needs not only by improving According to the World Meteorological Organization, nearly the products and services in businesses we’ve had for years, but 50% of the world’s population will live in water-stressed areas by also by anticipating future needs and investing in new busi- 2005. One of the U.N. Millennium Development Goals is to nesses that will shape our future and that of our customers. reduce by half the proportion of people without sustainable access to safe drinking water by 2015. GE is helping address the Few companies can do this on the same scale as GE. The beauty problem of water scarcity. of our multi-business model is the opportunity to make bold

changes and place big bets on our future. This approach ensures WORLD WATER SCARCITY that our citizenship efforts are not just reacting to the world as we know it today, but are proactively shaping our business

strategy for the years ahead. Over the past few years, we’ve 5% Scarcity made significant acquisitions in businesses like GE Wind and 3% Stress GE Water and Process Technologies to strengthen our efforts in renewable energy and water purification. Investing our technology and innovation into these businesses and others 92% Relative Sufficiency will help us to solve our customers’ challenges, grow GE and benefit the environment.

2000 18% Stress

58% Sufficiency 24% Scarcity

2030

Conservation and reuse alone will not solve global water scarcity. GE provides a desalination process that removes the saline from seawater or brackish water to provide fresh water for drinking, irrigation or industrial applications. GE customers will beneﬁt from a solution that decreases the cost of the water and the capital investment while making the associated land usage more efﬁcient. The global market for desalination is projected to be $4.3 billion in 2005, escalating to $14.1 billion by 2014 and then doubling or even tripling by 2025.

Mobile Water is a trailer-mounted system that delivers high- purity water 24/7. Its round-the-clock availability and flexibility help customers avoid productivity losses due to planned or unplanned outages; in some cases, it provides a longer-term solution free of costly investment. With the acquisition in 2005 of Ionics — a global leader in desalination, filtration systems and services — GE’s fleet of mobile water systems now numbers more than 600.

GE 2005 Citizenship Report 55 Section 8 Customers, Products and Services

Energy Solutions Wind Power As energy consumption increases and concern grows about the GE’s 1.5 megawatt wind turbine can power approximately 450 potential for climate change, businesses and countries are average U.S. homes. In late 2003, GE Energy erected 108 wind looking for technologies that can both meet their energy needs turbines for the Colorado Green Wind Project — adding 162 and be less carbon-intensive. Achieving these critical objectives megawatts of new “wind” capacity to the utility grid. requires greater investment in both energy efficiency and renewable energy sources. GE is helping by investing in alterna- Wind energy also provides a solution for developing countries. tive energy technologies and by a sustained effort to develop For example, GE Energy has signed an agreement with the new generations of products that are more efficient and can Shanghai Power Industrial and Commercial Co. to supply wind meet the environmental requirements of the future. turbines to the first two utility-scale wind-energy projects in China.

GROWTH IN WIND POWER TAPPED GLOBALLY GROWTH IN WIND POWER TAPPED GLOBALLY

4 4

3 3

2 2

1 1

0 0 00 04 08 00 04 08

AMERICAS ASIA

GROWTH IN WIND POWER TAPPED GLOBALLY GROWTH IN WIND POWER TAPPED GLOBALLY

8 12

6 9

4 6

2 3

0 0 00 04 08 00 04 08

EUROPE WORLD

GE 2005 Citizenship Report 56 Section 8 Customers, Products and Services

Offshore wind farms combine GE’s investment in alternative ecomagination energy businesses with our focus on developing energy-efficient In May 2005, GE launched ecomagination — a new initiative that products to optimize and accelerate environmental performance. represents the Company’s commitment to imagine and build Offshore wind farms generate greater power than land-based innovative solutions that benefit our customers and society at wind farms by capturing the uninterrupted wind flow over the large. By combining the strengths of our environmentally ocean. GE’s new 3.6-megawatt wind turbine includes higher advanced technologies and the collective imagination of our efficiency blades, an improved gearbox and structural adjust- employees worldwide, we can create solutions that are also ments to enhance load absorption. economically advantageous. Over the years, we have built some of the world’s most energy-efficient natural gas power plants, GE Energy installed more than 975 wind turbines in 2003 aircraft engines, locomotives and household appliances. We are and 611 in 2004. expanding our offerings in other advanced technologies to continue to be a leader. Cleaner Coal As reserves for oil and gas become increasingly constrained, the OUR ECOMAGINATION COMMITMENT INCLUDES: world is taking a new look at an abundant natural resource — coal. Doubling our research investment GE’s cleaner coal technologies have the potential to reduce key We will be pouring $1.5 billion into cleaner technologies in 2010, air pollutants by as much as 50% through systems that convert up from $700 million in 2004. coal into a gas that can be used in a power turbine. This process removes pollutants such as mercury, particulates and sulfur while reducing the production of nitrous oxide. With high oil and Introducing more ecomagination products natural gas prices, customers can now efficiently produce We will continue to add to the $10 billion in products and electricity using an abundant, lower-cost fossil fuel in a way that services we already offer that provide significant environmental is significantly cleaner than a traditional coal plant. Because of performance advantages to our customers. their ability to efficiently convert coal to power, new Integrated Gasification Combined Cycle (IGCC) plants can produce 18% less

CO2 than the average U.S. coal plant operating today. Should Reducing greenhouse gas emissions sequestration be proven as a viable carbon strategy, IGCC also GE has set a 30% GHG intensity reduction goal by the end of offers a promising route to capture carbon from coal before it is 2008, along with a 1% absolute reduction by the end of 2012. GE converted to CO2. has also set an energy efﬁciency improvement goal of 30% by the end of 2012. Progress will be measured against a 2004 baseline.

Keeping the public informed Through our various stakeholder engagements and this Citizenship Report, we will communicate our progress in meeting these goals in measurable, transparent terms.

GE 2005 Citizenship Report 57 Section 8 Customers, Products and Services

H System Turbine GE’s first H System™ entered commercial service in 2003. The H “We are committed to System is the first gas turbine combined-cycle technology capable of achieving 60% efficiency, meaning it will use less fuel being the leader in and produce fewer greenhouse gases for every unit of electricity produced compared with today’s plants. environmental technology Hybrid Locomotive GE engineers are working on a hybrid locomotive that would solutions. It is an area that capture energy released when the locomotive applies its brakes to slow its 207 tons and then save that energy in batteries for later usage. This stored energy could be capable of generating a fits our current 2,000-horsepower boost and would use 15% less fuel than the industry-leading GE Evolution locomotive — enough energy to product offerings and power 150 households. where we see significant GEnx™ Engine GE’s latest jet engine, the GEnx, uses advanced compression and combustion technology to achieve 15% gains in fuel efficiency growth and profitability.” and reduce emissions of nitrous oxide and carbon dioxide by up Jeff Immelt, to 40%. The GEnx aircraft engine also reduces noise by as much Chairman of the Board and CEO, as 30% and has been selected by Boeing and Airbus for their General Electric Company new aircraft.

GE was recognized with the U.S. Department of Energy/ Environmental Protection Agency ENERGY STAR Partner of the Year Award for outstanding contributions to environmental protection and energy efficiency in the manufacture of high-efficiency household appliances and lighting products. ENERGY STAR products exceed the DOE/EPA standards for energy efficiency and can save a typical U.S. household up to 30% off its energy bills — estimated at about $450 per year in savings. Since 2001, GE Consumer & Industrial has invested heavily in high efficiency products resulting in 323 GE appliances and 163 GE lighting products achieving ENERGY STAR status.

GE has worked closely with DOE ofﬁcials to develop new and revised ENERGY STAR product categories, speciﬁcation levels and implementation schedules. GE has also aggressively supported the ENERGY STAR program through broad consumer and customer education and has participated in national and regional events promoting ENERGY STAR products to consumers, dealers and homebuilders.

GE 2005 Citizenship Report 58 Section 8 Customers, Products and Services

8.2 Product Use Issues

GE is committed to providing products that help solve customer Nuclear Power problems and improve the quality of life. However, there are Nuclear energy remains a controversial power source due to products that remain controversial due to their associated concerns about safety and the storage of nuclear waste. GE sells application, misuse or potential for negative environmental many different types of power generation technologies from impact. While these issues must always be evaluated and wind and solar to gas and nuclear. GE’s decision to continue monitored, we hope that by illuminating our approach to some designing nuclear power facilities is based on three facts: of these products, we can increase transparency and diffuse concern around these issues. 1 Nuclear power remains an important source of energy, There are a range of other GE products and services that are not providing 17% of the world’s electricity and energy, and addressed in this report for which some stakeholders have environmental technologies are likely to require a mix of expressed concern — for example, sub-prime lending, and technologies in the future; plastics made from petroleum. These issues are regularly reviewed by GE directors and executives. 2 GE through service offerings is committed to helping our customers operate boiling water reactors safely and efﬁciently; and

3 The generation of electricity from nuclear power doesn’t emit greenhouse gases, making it a current and potential contributor to climate change solutions in the eyes of many.

There are 441* operating nuclear reactors globally, 77 of which are GE designed/built boiling water reactors operating in seven countries.

Military Aircraft Engines and Weaponry GE works with the U.S. government to provide engines for military aircraft, including ﬁghters, bombers, tankers, helicopters and surveillance aircraft, which perform important national security, search-and-rescue and humanitarian missions. GE is not a manufacturer or a supplier of any other weapons or weapons systems. We are not involved in any way in land mine or cluster bomb production. GE does not make these devices, nor does it sell parts or components for use in production of these devices.

Ultrasound Used for Gender Discrimination In instances where our products might be applied for other purposes than their speciﬁed intent, we evaluate sales on a case-by-case basis. On our range of ultrasounds, we have administered strict warning labels against this misuse and provide training and support for their proper medical use.

*As of Jan. 25, 2005, IAEA Power Reactor database

GE 2005 Citizenship Report 59 Section 8 Customers, Products and Services

Lighting NBCU Broadcast Standards GE Consumer & Industrial produces lighting products, including NBC Universal is committed to providing innovative, entertain- fluorescent and high-intensity discharge (HID) lamps that ing, quality television programming that respects and reflects contain a small amount of mercury. While there are concerns the sensibilities of its diverse viewing audiences, including NBC about mercury in the environment, discarded lamps are not a Universal affiliates and advertisers, while complying with significant contributor of mercury to the environment. In government and corporate regulations and policies. addition, lamp-recycling rates have increased significantly over the past fifteen years. Both fluorescent and HID lamps are NBC Universal’s Program Standards and Compliance typically three to four times more energy efficient than incan- Department collaborates with writers, producers and network descent lamps. Their increased efficiency reduces the need for and studio executives to meet this goal. The Department reviews power generation and thereby reduces power plant emissions, broadcast network entertainment programming to provide including mercury emissions. Based on a recent National guidance and judgment on content issues such as the depiction Electrical Manufacturers Association (NEMA) survey, the average of sexual material, nudity, violence, language/dialogue, use of four-foot fluorescent lamp contains about 8.3 milligrams of drugs and alcohol and potentially negative stereotypes. mercury. This level has been steadily declining as GE and other lighting manufacturers work to reduce mercury content. Today, To help families make informed viewing choices, the Department the average four-foot lamp contains approximately 85% less assigns an age-appropriateness rating to all NBC Television mercury than the same lamp produced in 1985. GE is also Network entertainment programs that appears at the top and in actively engaged in research to develop energy-efficient, the body of these programs, and determines whether a particu- mercury-free lighting technology. lar program should also receive a program advisory.

The Department also ensures that entertainment programming on NBC Universal broadcast and cable networks complies with FCC rules and policies, relevant federal statutory provisions, and GE and NBC Universal corporate policies. The Department requires the integrity, fairness, safety and security of programs and their participants.

Universal Studios, the division of NBC Universal that produces feature ﬁlms, is a member of the Motion Picture Association of America, whose ﬁlm rating system helps families make informed decisions about the content of motion pictures.

GE 2005 Citizenship Report 60 Section 8 Customers, Products and Services

8.3 R & D

GE is increasing its investments in R&D, and ensuring that its research efforts are directly linked to customers’ needs. Since 2001, GE has invested $100 million in its New York research and development headquarters, invested $80 million in a center in Bangalore, India, opened a $64 million research facility in Shanghai, China, and made a $52 million investment in a new center near Munich, Germany. These new centers enable us to attract the best technical talent from around the world and to bring our technology development closer to our customers.

Energy Solar energy In addition to investing in new businesses and creating new Widespread use of solar energy for tomorrow’s cities is chal- products, GE is directing significant R&D efforts to drive energy lenged by the need to make sunlight a cost-efficient source of efficiency and lower emissions: power. Last year, GE scientists investigated new solar designs that increase the efficiency of photovoltaic cells by 85%, and will Fuel cell use up to 40% fewer silicon wafers in rooftop semiconductor GE researchers are developing solid-oxide fuel cells that are big devices that convert sunlight into electricity. enough to power entire neighborhoods and reduce greenhouse gas emissions. Recent innovations in this area have included the High-efficiency gas turbines development of durable metals that can perform far longer in GE’s H System is one of the most energy-efficient gas tur- the intense heat within the fuel cell. bine combined-cycle technologies offered today. It is the first technology platform capable of achieving 60% efficiency — a Hydrogen milestone that has been referred to as the “four-minute mile” of Hydrogen can produce three times the energy per gram of natu- gas turbine technology. ral gas with no greenhouse gas emissions. GE is making strides in storage technology — a key challenge in building tomorrow’s Cleaner coal technologies hydrogen economy. GE’s Cleaner Coal process makes coal a practical alternative by converting it into a gas and removing pollutants such as mercury, particulates and sulfur, and reducing the production of nitrous oxide. Using the “syngas” in a GE combined-cycle turbine system can reduce pollutants from a traditional coal-fired plant by as much as 50%.

GE 2005 Citizenship Report 61 Section 8 Customers, Products and Services

Finding Tomorrow’s Energy Solutions GE has committed $50 million toward a research project at Stanford University aimed at developing lower-emission energy technologies.

Molecular Medicine GE Healthcare is combining GE’s leadership in diagnostic imaging with the former Amersham’s biological expertise to transform the way medicine is practiced, providing a more holistic approach to disease management:

Predict Inform Molecular diagnostics can help physicians identify genes that Information technologies will enable the smooth, seamless linking create predispositions toward speciﬁc diseases, such as heart of critical healthcare data and information to allow physicians disease, and begin patient monitoring years before symptoms and patients to make more informed decisions about treatment appear. and post-treatment options.

Diagnose Treat Advanced diagnostic imaging, combined with diagnostic Genetic predisposition and imaging techniques can help physi- pharmaceuticals, can help identify an incipient disease and its cians identify an individual patient’s receptivity or resistance to speciﬁc location in the body. speciﬁc drugs, prescribe more effective treatments and deliver them more precisely.

Stem Cells Animal Testing GE Healthcare’s work in molecular medicine gives us an GE conducts animal studies only when required by government opportunity to build a future of more personalized healthcare. regulatory agencies for registration of materials in worldwide Part of the research we conduct utilizes stem cells as a resource markets, to provide needed information used to protect the for discovery. GE has or is planning research, using both adult- health and safety of workers, customers and the environment, derived stem cells and established embryonic stem cell lines, to or in the discovery and development of new diagnostic products investigate the practicality of developing novel methods of used in the identification and detection of disease. GE is producing human cells that could be used in predictive drug committed to and adheres to a policy of using the fewest screening applications. GE will conduct research in accordance number of animals that will provide scientifically sound data for with US federal guidelines, UK and any other applicable coun- regulatory, worker and customer safety requirements. GE also try’s legislation and recommendations regarding stem cell participates in industry consortia that collaborate on testing. research. We recognize the sensitivities associated with the use As each company is not conducting separate tests, these of stem cells and have adopted a clear public position on our collaborative consortia efforts can reduce the number of animals approach to the value and responsible use of stem cells. tested. In medical applications, GE Healthcare adheres to the (http://www.ge.com/en/citizenship/customers/rd/stem.htm) “Three Rs” through which the use of animals is Reduced, Refined and Replaced. This forms part of the strict regulatory regime controlling the use of animal testing in medicine. GE Healthcare’s position statement on animal testing is available on its Web site: (http://www.ge.com/en/citizenship/customers/rd/animal.htm).

GE 2005 Citizenship Report 62 Section 9

Suppliers

GE’s relationships with suppliers are based on lawful, efﬁcient and fair practices. We expect our suppliers to obey the laws that require them to treat workers fairly, provide a safe and healthy work environment and protect environmental quality. The obligation to ensure that our suppliers live up to these standards is set out in a detailed process that establishes the responsibilities of GE’s businesses and sourcing personnel, the level of due diligence they need to perform on suppliers in various categories and the data they must keep to document the progress achieved under the Company’s supplier review program. Section 9 Suppliers

9.1 Supply Chain Standards

Since 2002, GE has required most of its suppliers1 to certify their organization, more than 1,900 of whom have been trained on compliance with core environmental, health and safety (EHS) and the program, its goals and expectations. There are 430 GE labor standards through regular site visits and auditing proce- sourcing personnel trained in conducting supplier assessments. dures. Suppliers are required to certify that they: Between 2002 and the end of 2004, GE assessed more than • Do not employ workers below the applicable minimum age 3,000 suppliers. In addition, in 2004, we reassessed 766 of requirement these suppliers who had their initial assessment in a prior year. • Do not utilize forced, prison, or indentured labor, or workers The reassessments are an important ongoing aspect of the subject to any form of compulsion or coercion program as they help ensure that improvements made by • Comply with laws and regulations governing minimum wages, the suppliers are sustained. hours of service and overtime for employees • Comply with laws and regulations protecting the environment GE has terminated about 200 suppliers since the inception of the and do not adversely affect the local community program. However, most suppliers seek to meet GE’s expectations, • Provide their workers a safe and healthy workplace and the focus of the program has been on corrective action.

For suppliers in the developing world — where legal standards As of the end of 2004, the assessments generated almost generally are adequate but enforcement resources are often 18,000 findings. GE requires that all findings are addressed by not — we inspect many suppliers prior to placing orders and the suppliers in a reasonable period of time and tracks supplier periodically thereafter. The program is executed by the sourcing performance in GE PowerSuite. To date, more than 90% of these findings have been closed by the suppliers. The remaining open findings will be tracked to closure by GE. The findings break down as follows:

14% Labor

40% Health & Safety 22% Emergency Preparedness

20% Environment 4% Dormitory

1 Not all suppliers are required to certify. Purchases from utilities, relationships with professional service providers (such as law or accounting firms) or financial institutions, and situations where GE has only a casual relationship with suppliers (such as airlines or hotels) are excluded from the certification requirement.

GE 2005 Citizenship Report 64 Section 10

Investors

GE recognizes that the performance of its stock and returns to INVESTORS AND CITIZENSHIP shareholders are based on performance beyond simply meeting financial goals. The strength of our reputation, the trust in our Investors aren’t merely defined by their financial goals; they brand and our governance, and the ability to perform as a good are also our employees, neighbors and friends in communities corporate citizen all impact our valuation. around the world. As such, investors are increasingly interested in evaluating companies based on a broader set of criteria than We believe that regular communication is the greatest enabler just financial performance. Issues of environmental impact, of trust. We strive to speak externally in the same way that we employee health and safety and community involvement all run our Company internally. To facilitate transparency, GE shape perception of a company’s worth. As one of the most provides multiple ways for investors to access information about broadly held retail stocks in the world, GE takes its responsibility the Company’s performance against a range of measures. Our to investors and their needs seriously. Web site is the most regular, accessible, and comprehensive source of information. Additionally, there are more targeted communications including perception studies, conferences, meetings and Webcasts. We conduct monthly perception studies that help us understand investor concerns and issues. We also participate in investor conferences throughout the year and conduct more than 250 institutional meetings touching more than 700 institutions annually. We also hold approximately 75 retail events a year involving thousands of brokers and individual investors. And we Webcast our earnings conference calls and post transcripts of them in seven languages. These communications help us stay up to date with investor concerns and foster a dialogue that allows us to respond. Our efforts to communicate with investors have been recognized with the following awards: we were recognized as having the best overall investor relations program by IR Magazine, as the “first team” by Institutional Investor magazine, and our Web site ranks # 1 globally according to the IR Web Report. Shareowners surveyed by IR Magazine gave GE the Best Annual Report award in 2005. These recognitions demonstrate GE’s commitment to provide exceptional services to its shareholders. Section 11

Employees

GE strives to create a balance between the value that employees GE reflects the many communities in which it operates. GE contribute to the Company and the rewards offered in return. fosters a diverse workforce and is making strides in increasing the representation of women and minorities as a percentage of GE fulfills this goal by fostering a work environment where the workforce and in management. As a global company, GE is good ideas and a strong work ethic are encouraged throughout also sensitive to the importance of protecting the privacy of the Company. employees and to enabling flexible work arrangements that accommodate the way that people work today. At the heart of this dynamic culture is an investment in learning. GE employees are both expected and encouraged to fulfill While we have made continuous improvements in all of these training that helps them navigate a more competitive market- arenas, our size, the breadth of our businesses and the dynamic place, learn domain expertise, develop skills and comply with pace in which we operate means that we must be committed to the Company’s integrity and citizenship initiatives. facilitating an ongoing dialogue with employees to refine our approach to nurture their success and ours. Section 11 Employees

11.1 Workforce 11.2 Employee Information Relations

GE’s workforce is dynamic. Whether through organic growth, During the past several decades, the relationship between acquisitions or divestitures, GE’s total workforce expands and employees and their employers has changed dramatically. contracts on a frequent basis. Roughly 50% of GE employees Employees change employers and careers more frequently than have been with the Company for less than 5 years. Over the past in past generations, and technology has enabled a new way of ﬁve years, GE’s total worldwide workforce has remained fairly working — more mobile, faster and more technology-dependent. constant at about 310,000. GE has always been committed to the changing needs of our workforce. Our performance and our people are inextricably linked. We have maintained a leadership position across TOTAL GE EMPLOYEES industries, geographies and generations because of the energy, (In thousands of employees) drive and enthusiasm of our people.

2000 2001 2002 2003 2004 GE prides itself on creating a culture where employees are U.S. 168 158 161 155 165 empowered to achieve their greatest potential. Our performance Other Countries 145 152 154 150 142 meritocracy culture is demanding — but the rewards can be just as great. Few companies offer the range of businesses, products Total 313 310 315 305 307 and services, and geographies of GE.

GE manages its relationships with employees through several forums. All are geared toward understanding what’s important to employees and providing access to tools, resources and information to help employees reach their potential.

GE 2005 Citizenship Report 67 Section 11 Employees

Employee Opinion Survey

Employee feedback is a critical part of the way GE operates. GE’s heritage of formally tracking employee opinions about our Company dates back to the 1940s, and within the last decade, we have reﬁned the process to what is now known as the GE Opinion Survey. This is an annual global, anonymous, Web- based employee attitude survey comprised of 65 questions on topics including hiring practices, fairness, training and development, diversity and complaint resolution.

In 2005, GE had a record response rate of 91% (out of approximately 110,000 professional employees) and improvements in most categories. GE considers any question with a greater than 60% favorable rating as good, and a greater than 70% favorable rating as excellent. Here are a few examples of where employees rated GE highly:

Question % Favorable % Neutral % Unfavorable In my current position, I am given the opportunity 76% 14% 10% for challenging assignments.

There are no compromises around here when it 84% 10% 6% comes to conducting business in an ethical way.

I am confident that the top corporate leadership of GE 78% 15% 7% will keep the company competing successfully.

My immediate manager/supervisor supports me when 88% 8% 4% I need some time off to take care of personal needs.

I like the kind of work I do. 75% 15% 10%

In my business people go beyond the minimum 78% 16% 6% requirements of their job to do really excellent work.

The people I work with treat me with respect. 88% 9% 3%

GE received the lowest score in the “Tools and Resources” category, which was scored favorably by 60% of the respon- dents. In the fast-paced, global world we live in today, our employees desire the tools and resources necessary to keep them efﬁcient and enable them to do their jobs even better. The opinions of our employees inﬂuence many of GE’s organizational decisions. For example, previous Opinion Surveys have led to a renewed emphasis on GE’s technology leadership and “Employer of Choice” programs.

GE 2005 Citizenship Report 68 Section 11 Employees

Session ‘C’ Support Central Our annual Session C process is at the core of our people Support Central is a global knowledge management system that development process and focuses on the needs of both the contains thousands of support communities, tens of thousands individual and the Company. It begins with the employees of experts and cases and millions of accessed entries per year to assessing their own accomplishments, strengths/development help employees connect with subject matter experts and share needs and career aspirations, followed by an assessment by best practices. their managers. The employee and manager enter their assessments in a computerized tool, which facilitates a one- Corporate Leadership Programs over-one review. Results are rolled up to the Business Leader GE has a long history of recruiting top college undergraduate level where assessment, succession planning and developmen- and graduate students for our premier entry-level global tal needs are discussed and action plans are put in place to Leadership Development Programs. These two-year rotational support organizational and key business initiatives. programs are offered in sales and marketing, engineering, ﬁnance, IT, operations and human resources. Many of GE’s top Session C enables GE to consistently have a talent pool that can leaders can trace their career beginnings to these programs. It is support our growth and provide the leadership stability that is through these programs that a common culture is nurtured and our hallmark. core processes and levels of expertise are developed that permeate the Company. Challenging assignments, mentoring, Inside GE and regular exposure to senior management help to identify and Inside GE is GE’s global intranet and serves as a regular source develop future high-potential leaders. for executive and employee news, individual business tools, growth strategies, values and integrity policies. Inside GE also provides tools to help employees access information more easily to help them get their jobs done. Employees can share resources and information, and access on-line learning, career development and training tools, HR information, IT resources and support networks.

GE 2005 Citizenship Report 69 Section 11 Employees

EXPERIENCED COMMERIAL LEADERSHIP PROGRAM (ECLP) “At every level, you really Thomas Calzia is a participant in GE’s Experienced Commercial get to know what GE Leadership Program (ECLP). ECLP is a two-year program that invites experienced graduates to participate in several different rotations within GE businesses according to their area of people are about, from expertise. the support staff to the Originally from Lyon, France, Thomas received his master’s degree in engineering from the Ecole des Mines in Paris before working five years in business development and strategy people in the field. GE consulting, and completing his MBA at Harvard. Following graduate school, Thomas decided to join GE because of its great leverages the talents of reputation for values and people and its unique business model. all individuals, motivates During his first rotation, Thomas worked as a Sales Manager for GE Energy in Bracknell, U.K., managing bids and negotiations for contractual services on GE gas turbines. Next he worked with GE our employees beyond Healthcare in Buc, France, negotiating a distribution agreement to promote sales of equipment into new markets. For his third what they think they can rotation, Thomas contributed to the development of new energy solutions for customers and explored new energy segments for achieve, and strives organic growth and acquisitions with GE Energy in Atlanta, USA. Thomas is conducting his last rotation with GE Energy Financial Services in London, working on strategic initiatives and struc- every day to be a better tured finance deals in the European energy market. company for all our Thomas says that he has found the multi-faceted experience to provide a broad view of GE. stakeholders and customers—it is second to none.”

Thomas Calzia

GE 2005 Citizenship Report 70 Section 11 Employees

11.3 Training and Development

Labor Relations For decades, we have fostered a learning culture to ensure that GE maintains constructive statutory and contractual relation- we attract and develop the best talent in the world. In 1956, GE ships with a number of employee representatives throughout its opened its Corporate Leadership Institute, now known as the global operations. The employee representative arrangements John F. Welch Learning Center, in Crotonville, New York, as a take on various forms but can be generally described as unions forum for sharing best practices and values. Courses are offered or works councils. The relationships with these employee repre- to a select group of participants chosen by their business sentatives are structured based on applicable laws in the countries leaders and HR managers. During 2004, 10,628 students where GE has operations. In all cases, we respect employees’ rights attended 465 classes at Crotonville. to freedom of association and to bargain collectively. In addition to Crotonville, business training centers are estab- In the U.S., GE’s labor relations landscape includes two national lished in Evendale, Ohio, Schenectady, New York, and Waukesha, agreements: one with the IUE-CWA which represents 13,000 Wisconsin in the U.S. and in China, Belgium, France and India. In employees at more than 50 Company locations and another emerging markets and economies, GE also offers management with the UE which represents about 3,500 employees at 15 training and leadership best-practice sharing to help our key locations. An additional 8,000 employees are represented by strategic business partners participate more fully in the global another 11 unions. economy. We believe that the best way to stay competitive is to share intelligence across the organization, and to foster learning around the changing demands of the marketplace. This not only increases GE’s ability to compete, it also protects the Company’s workforce by ensuring that roles stay current or adapt to ﬁt the changing needs of customers and markets.

Through both internal and external training initiatives, GE invests over $1 billion annually in training and development. In addition to internal training and development, GE invests over $38 million annually in tuition reimbursement for employee undergraduate and graduate degree programs.

GE 2005 Citizenship Report 71 Section 11 Employees

11.4 Diversity and Inclusiveness

As a global Company with operations in more than 100 countries, diversity isn’t merely a noble idea — it’s the reﬂection of our business. Every day, GE works to ensure that all employees, no matter where they are located in the world and no matter where they come from, have an opportunity to contribute and succeed. Encompassed in that goal are promoting traditional ideas of diversity including ethnicity, race and gender, while at the same time exploring more contemporary concepts like inclusiveness.

We track diverse representation at all levels of the organization — by business, by geography and by function. We have robust reviews with the leaders of the Company to demonstrate where progress is being made, to glean best practices and to identify where we have work to do so that we can intensify efforts. Metrics are critical in setting goals and achieving results.

While GE has made progress, significant efforts continue to improve the representation of women, U.S. minorities, and non- U.S. citizens in leadership roles in the Company. In 2004, 33% of Company officers and 40% of senior executives were diverse (women, U.S. minorities, and non-U.S. citizens) versus 22% of Company officers and 29% of senior executives in 2000. Nearly one quarter of GE’s leaders comes from outside the U.S.

GLOBAL FEMALE REPRESENTATION

Female Representation Executive 20% Professional 27% All Other 38% Grand Total 33%

Note: As of December 31, 2004

U.S. RACE & ETHNICITY REPRESENTATION

American Asian/ Indian or Pacific Diverse Alaskan Native Islander Black Hispanic Representation Executive 0.1% 5.2% 4.1% 2.4% 12% Professional 0.2% 7.5% 4.7% 4.8% 17% All Other 0.4% 3.4% 13.2% 7.6% 25% Grand Total 0.3% 5.2% 9.3% 6.2% 21%

Note: As of December 31, 2004

GE 2005 Citizenship Report 72 Section 11 Employees

One of the key mechanisms for facilitating dialogue and 2004 AWARDS: progress in our diversity efforts is GE’s Affinity Networks: the African American Forum, the Asian Pacific American Forum, the Catalyst Award for efforts to advance women leaders within GE Hispanic Forum, the Women’s Network and the Native American Forum. These Affinity Networks play a critical role in attracting, developing, engaging and retaining employees at all levels Executive Leadership Council Corporate Award for leadership in across the Company. These networks work in close partnership advancing diversity in corporate America with Chairman and CEO Jeff Immelt, business leaders and the human resources team to continually uncover ways to improve in this area and opportunities for growth. These range from Working Mother Magazine “100 Best Companies for Working mentoring employees for professional growth to engaging Mothers” 2003, 2004 customers for business growth. One powerful example of the impact of the Affinity Networks is GE’s philanthropic work in Africa. This initiative was a direct result of the Chairman’s Best Place to Work…EU (Multiple Locations; Ireland, Czech involvement with the African American Forum and a collective Republic, Spain) desire to make a difference in Africa.

BARRIER FREE NETWORK Diversity Inc — Top 10 Best Companies for Asian Americans Building off of the success of GE’s Afﬁnity Networks, employees in Japan were inspired to launch the “Barrier Free Network” in October 2004. This group aims to improve the mutual under- Woman Engineer — #1 Company standing between employees with disabilities and their colleagues by increasing awareness of key issues and their impact. This is one of the ﬁrst employee groups for the disabled ever formed in a major company in Japan.

This group will work to ensure that disabled employees have the same access to opportunity and the ability to reach their highest potential within the Company. The group has launched a Web site that details different types of disabilities and awareness activities developed by the network. The group has also started a sign language session with 20 participants who are learning the language for the ﬁrst time.

Another facet of the GE diversity strategy is a commitment to diversity of our supply base. The Company’s Supplier Diversity program started more than 25 years ago and focuses on the development and inclusion of all capable suppliers.

GE 2005 Citizenship Report 73 Section 11 Employees

11.5 Work / Life

11.4 Privacy Flexibility

GE is committed to handling personal data responsibly in order GE is well known for its demanding high-performance culture. At to earn and preserve the trust of its employees and those with the same time, however, the Company also recognizes the value whom the Company does business, as well as to comply with of work/life flexibility in order for employees to be truly produc- applicable laws and contractual commitments. tive, and to feel professionally and personally fulfilled. GE is responsive to meeting specific employee needs to enable them GE collects personal data from employees as needed for human to deliver their contributions to the Company while managing resources processes, business operations and safety and their personal life responsibilities. Flexible work arrangements security. Pursuant to the “Fair Employment Practices” policy in have become an integral part of the way we conduct business. The Spirit & Letter, GE has adopted a global Employment Data Protection Standard that establishes consistent and compliant The Company also offers tools to help employees deal with the global practices for ensuring protection and proper usage of challenges of today’s fast-paced world. To help employees to employee information, exceeds the requirements of law in most manage their commitments at work and at home, the Company jurisdictions and provides that any more stringent requirements offers GE Work/Life Connections (a service of LifeCare Inc.) in the of local law will also be followed. Disclosures about GE’s uses of U.S. The online site provides information and resources related personal data are made available to employees in GE policies to life, family, health, education, work and finances. There is also and by other methods, including e-mail, posting on the GE a toll-free telephone number that employees can call to speak to intranet and in “pop-ups” in online tools. someone live. Outside the U.S., there are similar support programs such as FirstAssist, offered in the U.K. and Ireland to GE collects data from customers, suppliers and others as needed help employees with family challenges. Cultural differences shape for transactions and other business operations. GE has a privacy local self-help programs. In Asia, for example, we are not as far policy in The Spirit & Letter that requires responsible and legally along as we would like, but we continue to evaluate employee compliant handling of non-employee data. assistance tools that would be appropriate to the needs and culture of the local workforce and business teams. Like all of the policies contained in The Spirit & Letter, privacy policies are overseen by leadership at the business and corporate level, with the same assignment of responsibilities and potential penalties as our other policies. GE has a “Chief Privacy Leader” at the corporate headquarters level and within each business. GE has multidisciplinary privacy councils and committees at corporate headquarters and within each business, including an “Employment Data Privacy Committee” with GE-wide responsibilities.

In a recent study conducted by TrustE and the Ponemon Institute, GE was ranked in the top ten companies for privacy programs. The study was based on a survey of 6,300 consumers and a panel of privacy experts. The goal was to identify companies doing a superior job of building trust with customers through the establishment and enforcement of progressive privacy practices.

GE 2005 Citizenship Report 74 Section 12 Our Commitment

We are committed to citizenship. We believe that reporting openly about our citizenship performance is important. Our ﬁrst report acknowledges both our progress and our challenges and provides some key metrics that will serve as our baseline for future improvements.

We will continue to set high expectations for ourselves in order FOR ADDITIONAL INFORMATION CONTACT: to improve performance across our citizenship efforts. We will continue to engage our stakeholders to expand our understand- Media: ing and approach to citizenship, and to address the challenges Gary Sheffer, facing our industries and communities. Executive Director, Communications & Public Affairs [email protected] Your feedback on our ﬁrst Citizenship Report is appreciated. Please send your comments to [email protected]. Investors: Sheri West, Director, Socially Responsible Investor Communications [email protected]

Non-Governmental Organizations: Amaya Gorostiaga, Leader, Citizenship Communications [email protected]

GE 2005 Citizenship Report 75 Section 13

GRI Index

VISION AND STRATEGY section name

1.1 Vision and Strategy Jeff Immelt Letter, Ben Heineman Letter, Bob Corcoran Letter 1.2 Chairman and CEO Letter

PROFILE

2.1-2.8 GE Proﬁle Business Directory, GE Around the World

2.9 Stakeholder Relationships Stakeholders

2.10-2.22 Report Scope and Proﬁle About this Report, Our Commitment

GOVERNANCE STRUCTURE AND MANAGEMENT SYSTEMS

3.1 Board/Governance Structure Governance, Board

3.2 Independent Board Members Board

3.4 Board-level processes for economic, Governance of Citizenship environmental, and social issues

3.5 Executive compensation Governance

3.6 Organizational structure for economic, Governance of Citizenship environmental, and social issues

3.7 Codes of conduct and status of implementation Spirit & Letter, Ombudsperson Process

3.8 Shareholders’ recommendations Investors

3.9 Major stakeholders Stakeholders 3.10 Stakeholder consultation 3.11 Outputs of stakeholder consultation 3.12 Use of stakeholder consultation

3.16 Upstream and downstream impacts Customers & Markets, Product Use Issues, Environmental Health & Safety Policy, Supply Chain Standards

3.17 Indirect economic, environmental, and Emerging Economies, Customers & Markets, Product Use Issues social impacts

3.19 Programs and procedures for economic, EHS Policy, Legal Processes and Systems, environmental, and social performance Financial Processes and Systems

3.20 Certiﬁcation status of management systems EHS Tools

ECONOMIC PERFORMANCE

EC2 Geographic breakdown of markets GE Around the World

EC10 Donations Philanthropy

EC13 Indirect economic impacts GE Around the World, Emerging Economies

GE 2005 Citizenship Report 76 Section 13 GRI Index

ENVIRONMENTAL PERFORMANCE

EN8 Greenhouse gas emissions EHS Metrics to Measure Progress EN9 Ozone-depleting substances EN10 NOx, SOx and other signiﬁcant air emissions EN11 Waste EN12 Discharges to water EN13 Chemical, oil and fuel spills

EN14 Environmental impacts of principal Customers & Markets products and services

EN16 Non-compliance on environmental issues EHS Metrics to Measure Progress

EN26 Changes to natural habitats Environmental Legacy EN27 Native ecosystems and species in degraded areas

EN33 Environmental performance of suppliers Supply Chain Standards

SOCIAL PERFORMANCE

LA1 Total workforce Workforce Information LA2 Employment creation

LA3 Employee representation Employee Relations

LA4 Policy and procedures on changes in operations Job Migration

LA7 Standard injury, lost day and absentee rates EHS Metrics to Measure Progress

LA10 Equal opportunity policies and programs Diversity and Inclusiveness LA11 Composition of senior management

LA16 Programs to support employability and Job Migration to manage career endings

HR1 Human rights policies, procedures and monitoring Bob Corcoran Letter, Human Rights, Supply Chain Standards, HR2 Human rights in investment and Employee Relations, Ombudsperson Process procurement decisions HR3 Human rights performance of suppliers HR4 Policy, procedures and programs to prevent discrimination HR5 Freedom of association HR6 Child labor HR7 Forced and compulsory labor

SO1 Description of policies to manage impacts on Philantropy, Volunteerism communities in areas affected by activities

SO2 Bribery and corruption Spirit and Letter, Ombudsperson Process

SO3 Political lobbying and contributions Public Policy

SO7 Anti-competitive behavior Spirit and Letter

PR1 Customer health and safety Product Use Issues

GE 2005 Citizenship Report 77