I am pleased to introduce our second Corporate Sustainability Report, in which we share our environmental performance and emerging sustainability strategy with employees, patients, neighbors, friends, shareholders and others who take an interest in our business.

As a company, Genentech is committed to making a difference in the world of medicine by developing therapies for serious and life-threatening diseases. This report provides an opportunity to learn more about how this commitment translates into the areas of environmental sustainability and employee health, safety and wellness.

This report will tell you about the progress we have made in reaching our water and energy use goals (first announced in our 2004 report), the actions that Genentech is taking now, and the key projects we plan to implement in the future. In recent years, Genentech has experienced rapid and significant growth. Managing this growth in a sustainable way is an important priority for us, and many of the initiatives you will read about in this report are focused on this objective.

For an introduction to the unique local environments in which Genentech has the privilege of operating, please visit our locations. You can also find further detail in the "Our Communities" section of the PDF version of this report. As you will learn, our stewardship efforts reflect not only our commitment to environmental responsibility, but also to the particular local conditions and needs of the communities in which we operate.

Our employees are at the heart of Genentech's sustainability programs. We are proud to report on the employee-driven sustainability innovations taking place throughout the company. The skills, capabilities and commitment of our employees are key to ensuring that Genentech has a positive impact on the communities in which we operate.

While we are pleased with the progress we have made, we recognize that sustainability is an ongoing project. We look forward to continuing to share our sustainability strategies and metrics with you in the future as our approaches to sustainability evolve along with the company.

We received numerous responses to our 2004 report, the first-ever such report published by a biotherapeutics company in the United States. We value your thoughts and feedback, and we look forward to hearing from you.

Arthur D. Levinson, Ph.D.
Chairman and CEO