Isrs7 is a widely recognized EHS management system rating tool for measuring, improving and demonstrating EHS performance. It was formerly known as the International Safety Rating System and is owned and supported by Det Norske Veritas of Norway. This seventh edition was developed as a Joint Industry Project between DNV and industrial companies and is based on the long established International Safety Rating System (ISRS), originally developed in the mid 1970s.

Starting in early 2006, Genentech has been formalizing its continual improvement processes through adoption of an EHS risk management framework within our product manufacturing and quality organizational units that is consistent with the best practices described in and rated by the DNV isrs7. These units have the responsibility to manage a substantial portion of the EHS risks of the company.

Isrs7 includes 15 auditable processes as shown below and the requirements for a range of international standards including ISO14001 — Environmental Management, OHSAS18001 — Health and Safety Management, and the Global Reporting Initiative 2002 — Corporate Social Responsibility.

Isrs7 Auditable Processes
Process 1 — Leadership Process 2 — Planning and Administration Process 3 — Risk Evaluation Process 4 — Human Resources Process 5 — Compliance Assessment Process 6 — Project Management Process 7 — Training and Competence Process 8 — Communications and Promotions	Process 9 — Risk Control Process 10 — Asset Management Process 11 — Contractor Management and Purchasing Process 12 — Emergency Preparedness Process 13 — Learning from Events Process 14 — Risk Monitoring Process 15 — Results and Review

The initiative will involve regular audits that result in a score that rates the effectiveness of the company's environmental and safety protection management system processes. Our goal is to achieve an isrs7 rating score comparable with that of world-class safety programs by 2010.

Regulatory Oversight A variety of government agencies oversee the safety and environmental performance of Genentech's facilities. These agencies range from local fire departments to local, regional and national environmental agencies.

Generally, regulatory agencies monitor conditions and developments at Genentech's facilities by requiring permits, notifications and periodic reports on key issues, as well as by inspecting Genentech's facilities.

Below is a list of the key regulatory agencies associated with environmental, health and safety performance that conducted inspections or evaluated operations at Genentech facilities in 2005 and 2006:

Genentech Facility	Inspecting Agencies
South San Francisco, California	City of South San Francisco San Francisco Bay Regional Water Quality Control Board U.S. Environmental Protection Agency South San Francisco Fire Department San Mateo County Environmental Health Department California Occupational Safety & Health Administration Bay Area Air Quality Management District
Vacaville, California	Vacaville Public Works Wastewater Yolo Solano Air Quality Management District Vacaville Fire Department Solano County Environmental Health Services
Porriño, Spain	SEPRONA (Environmental Protection Agency) Northern Water Resources Confederation

Genentech has established strong working relationships with these agencies. When compliance issues are identified at Genentech, we diligently work to resolve the issue. In addition, we view these events as an opportunity to learn and improve our operations and increase EHS awareness.