Our South San Francisco site is located on the shores of the San Francisco Bay, in an area previously occupied by shipyards and paint and chemical manufacturers. During our 25 years on this site, Genentech has slowly restored the natural beauty of the area as we have grown and constructed new facilities. A few of the properties required environmental remediation before we could develop them. Our campus includes part of the Bay Trail, which, when complete, will encircle almost the entire San Francisco Bay shoreline. We continue to add onto the Bay Trail as we grow, providing public access to the shoreline — including parking and picnic tables — and a beautiful view of the bay. In 2007, we completed another half mile of the Bay Trail.

For all Genentech sites, we have developed a comprehensive approach to design that relates site planning, building design and landscape design to the natural environment, respecting the integrity and biodiversity of natural systems throughout our campuses. We landscape with native and drought-tolerant plants, and have installed bio-swales to control rainwater runoff. Growth is concentrated on sites served by existing infrastructure, taking into account opportunities to support public and alternative transportation modes.

We strive to create sustainable campus environments that enhance health, comfort and performance, while minimizing resource consumption. In 2007, our Corporate Engineering group developed a Sustainability Design Checklist, based on LEED¹ NC (New Construction), to guide the identification of sustainable design areas for evaluation and implementation. Genentech is committed to the incorporation of sustainable design characteristics that demonstrate substantial energy, water and material conservation, and that provide reasonable, positive return on investment benefits.

We employ architectural design methods aimed at controlling solar gain, including the use of solar shading devices, white roofing materials and building orientation. We utilize high recycle-content building materials and integrate energy-efficient and water-conserving systems throughout our campuses, to help achieve our 2010 corporate water and greenhouse gas reduction goals. Further information regarding these efforts can be found in our feature story on green building design and in the Climate Change and Water sections of this report.

¹ The Leadership in Energy and Environmental Design Green Building Rating System™ is the nationally accepted benchmark for the design, construction and operation of high performance green buildings developed by the U.S. Green Building Council (USGBC). The Council developed the rating system to help transform the built environment toward sustainability by providing the building industry a consistent, credible standard for what constitutes a green building.