Going GREEN Lessons we can Share

1. Going GREEN Lessons we can Share Session 503 William Barbarow Fireman�s Fund Insurance Company & Tammy Clark TAC Manufacturing Inc. Good morning/afternoon and welcome to this overview of the Loss Control/Client Services and HPR Engineering team�s first step into green risk management consulting�the Sustainable Building Practices Assessment. I�m Steve Greger with Home Office Loss Control and joining me as co-presenters are Bill Barbarow from Southwest Region Loss Control and Geoff Nelson from Northeast Region Loss Control.Good morning/afternoon and welcome to this overview of the Loss Control/Client Services and HPR Engineering team�s first step into green risk management consulting�the Sustainable Building Practices Assessment. I�m Steve Greger with Home Office Loss Control and joining me as co-presenters are Bill Barbarow from Southwest Region Loss Control and Geoff Nelson from Northeast Region Loss Control.

2. Our World Today! Polar ice caps are melting Weather patterns are changing Severe Storms & Droughts are increasing Natural Resources are becoming scarce Air Quality is deteriorating Health concerns are rising People are Worried, Very Worried! Our Life Style & Our Planet are not Sustainable

3. Introduction Global climate change, polar ice caps disappearing, rising seas, toxic chemicals in our water & food supplies, inconvenient truths--it�s everywhere & it affects us all !! Resource Scarcity & Quality of our Life Concerns Demand: Changes in manufacturing, distribution, property management, and product disposal A paradigm shift on how we live our lives Green business solutions You can�t turn on a TV or radio, read a newspaper or magazine or even read Employee Desktop without encountering words and phrases like global climate change, carbon footprint, green, sustainability, and inconvenient truth. $4/gallon gasoline is almost a reality. How you answer the grocery store question �paper or plastic?� has become an environmental position statement. Allianz and Fireman�s Fund are the industry leaders in developing insurance products and services to address climate change and to respond to the growing demand for greener buildings and more sustainable business practices.. We are now poised to capitalize on our green leadership position by expanding our green building offerings beyond insurance coverages to include high value green risk management business solutions to our customers and agents. You can�t turn on a TV or radio, read a newspaper or magazine or even read Employee Desktop without encountering words and phrases like global climate change, carbon footprint, green, sustainability, and inconvenient truth. $4/gallon gasoline is almost a reality. How you answer the grocery store question �paper or plastic?� has become an environmental position statement. Allianz and Fireman�s Fund are the industry leaders in developing insurance products and services to address climate change and to respond to the growing demand for greener buildings and more sustainable business practices.. We are now poised to capitalize on our green leadership position by expanding our green building offerings beyond insurance coverages to include high value green risk management business solutions to our customers and agents.

4. Presentation Focus Sustainable Business Culture What Why Who How Water Resources Health Concerns Cradle to Grave Corporate Solutions Next steps Today we�ll introduce you to the Sustainable Building Practices Assessment. We�ll cover what it is, why we�re taking this approach, and how the Loss Control/Client Service and HPR Engineering staff will conduct the assessments and become involved in future green risk management service activities. We�ll also review how these green risk management services will benefit our customers, agents, and Fireman�s Fund.Today we�ll introduce you to the Sustainable Building Practices Assessment. We�ll cover what it is, why we�re taking this approach, and how the Loss Control/Client Service and HPR Engineering staff will conduct the assessments and become involved in future green risk management service activities. We�ll also review how these green risk management services will benefit our customers, agents, and Fireman�s Fund.

5. Sustainable Business Culture What is Sustainability? Why is it important? People, Planet, Profits � the �triple bottom line� Addresses Local, State, and Federal mandates and incentives Reduces the likelihood of Property, GL, Product, WC, & Health claims Before we get into the mechanics of the assessment itself, let�s take a quick look at some of the key benefits to customers, agents and FFIC. We already talked about some of these customer benefits. Flexibility is a key benefit. The variety of practices allows customers to choose approaches that have the most impact on their organization, given their own political, economic and environmental climate. Cities, counties, states and the Federal government are beginning to enact a variety of green building codes and requirements�and they won�t all apply to just new buildings. By implementing sustainable building practices now, our customers will be well ahead of the game in complying with expected government requirements. Finally implementing sustainable building practices help customers reduce the likelihood of insurance claims. Tighter buildings, better HVAC systems, better indoor air quality, and better lighting help to reduce property, liability and workers� comp, and employee health claims.Before we get into the mechanics of the assessment itself, let�s take a quick look at some of the key benefits to customers, agents and FFIC. We already talked about some of these customer benefits. Flexibility is a key benefit. The variety of practices allows customers to choose approaches that have the most impact on their organization, given their own political, economic and environmental climate. Cities, counties, states and the Federal government are beginning to enact a variety of green building codes and requirements�and they won�t all apply to just new buildings. By implementing sustainable building practices now, our customers will be well ahead of the game in complying with expected government requirements. Finally implementing sustainable building practices help customers reduce the likelihood of insurance claims. Tighter buildings, better HVAC systems, better indoor air quality, and better lighting help to reduce property, liability and workers� comp, and employee health claims.

6. Buildings Impact on: Energy, Air Quality & Occupants National View on Electric Power Building�s impact on the Energy & Environment Develop Comprehensive Risk Management solutions that impact your profitability. How? Examine Building�s use & Resource utilization Interview Stakeholders: employees & management /customers & tenants Reduce environmental impact of building operations Look at alternatives Utilize LEED Tools Why this approach and why now? First the big picture: Buildings have a tremendous impact on the environment. In the U.S. they consume more than 30% of our total energy and 60% of our electricity. They consume 5 billion gallons of potable water a day just to flush toilets. A typical commercial construction project generates up to 2.5 pounds of solid waste per sq ft of floor space. Volatile Organic Compounds (VOC�s) present in interior finishes, furniture and work stations contribute to illness and reduce worker productivity. The assessment is a practical approach to help customers save money, positively impact their employees/customers/tenants, and reduce the environmental impact of their business operations�this is known as the �Triple Bottom Line.� It also helps to maintain FFIC�s green innovation leadership position by providing a highly differentiated service offering to enhance acquisition and retention of profitable business. While the practices are applicable to virtually all industries, it�s our intent that they�ll be customized and expanded over time to meet the unique needs of our target industries.Why this approach and why now? First the big picture: Buildings have a tremendous impact on the environment. In the U.S. they consume more than 30% of our total energy and 60% of our electricity. They consume 5 billion gallons of potable water a day just to flush toilets. A typical commercial construction project generates up to 2.5 pounds of solid waste per sq ft of floor space. Volatile Organic Compounds (VOC�s) present in interior finishes, furniture and work stations contribute to illness and reduce worker productivity. The assessment is a practical approach to help customers save money, positively impact their employees/customers/tenants, and reduce the environmental impact of their business operations�this is known as the �Triple Bottom Line.� It also helps to maintain FFIC�s green innovation leadership position by providing a highly differentiated service offering to enhance acquisition and retention of profitable business. While the practices are applicable to virtually all industries, it�s our intent that they�ll be customized and expanded over time to meet the unique needs of our target industries.

7. Real Estate Industry example: Focus on the total cost of risk & change the game Customer needs & green: Protect and grow asset value: 7.5% avg. increase in bldg values 6.6% better ROI <2% upfront construction cost investment -> 10X savings Lower asset value of traditional buildings Protect & build NOI (Net Operating Income): 30% reduction in energy use = 5% increase in NOI Lower operating expenses (less energy & water usage) Higher revenue, rents, occupancy rates, faster lease out Attract & retain quality tenants: 15% absenteeism reduction 16% productivity gains 40% retail sales increases Companies such as FFIC, Wal-Mart, Proctor and Gamble are looking for green spaces and have Sustainability as a corporate VALUE

8. Building Sustainable Business Cultures Focus on no- and low-cost green building solutions tailored to your needs. Follow premier set of green best practices: LEED for Existing Buildings (LEED-EB) Target: Energy & water conservation Indoor environmental quality Materials & resources Building & site maintenance Include green building practices, key benefits, strategies and resources Starting point for future green risk management consultations focused on business operations The Assessment provides a set of no- and low-cost green building business solutions that can easily be tailored to individual customer�s needs and interests. It�s built around the premier set of green building best practices LEED (that�s Leadership in Energy and Environmental Design) for existing buildings. Focusing on no- and low-cost solutions first encourages customers to take their first green steps relatively easily--- without major cash or time investments; but with big business returns. It targets: Energy and water conservation Indoor environmental quality Materials and resources Building and site maintenance The assessment form also provides key benefits for each sustainable building practice, implementation strategies and reference resources from iCustomer and other sources. The assessment�s being initiated as a 90 day pilot. We�ll focus primarily on real estate and hospitality customers, although customers in all industries are eligible for the assessment. We�ll be gathering feedback from you and others during the pilot and plan to roll out to all industries in the third quarter. It�s not our intent to replace a green building accredited consultant. However, we can offer green consultation that�s consistent with our existing risk management skills and focus and build additional approaches going forward. The Assessment provides a set of no- and low-cost green building business solutions that can easily be tailored to individual customer�s needs and interests. It�s built around the premier set of green building best practices LEED (that�s Leadership in Energy and Environmental Design) for existing buildings. Focusing on no- and low-cost solutions first encourages customers to take their first green steps relatively easily--- without major cash or time investments; but with big business returns. It targets: Energy and water conservation Indoor environmental quality Materials and resources Building and site maintenance The assessment form also provides key benefits for each sustainable building practice, implementation strategies and reference resources from iCustomer and other sources. The assessment�s being initiated as a 90 day pilot. We�ll focus primarily on real estate and hospitality customers, although customers in all industries are eligible for the assessment. We�ll be gathering feedback from you and others during the pilot and plan to roll out to all industries in the third quarter. It�s not our intent to replace a green building accredited consultant. However, we can offer green consultation that�s consistent with our existing risk management skills and focus and build additional approaches going forward.

10. Sustainable Building & Operational Practices Assessment

11. Integrated Approach to Resource Management  Setting Priorities Real-Time Energy Tracking Energy Utility Budgeting Competitive Energy Procurement Life Cycle Cost Analysis Infrastructure Commissioning Greenhouse Gas Emissions- Reporting System Upgrades & Utility rebates LEED & LEED EB Certification Green Seal Chemicals (IAQ & Safety) Recyclables (zero landfill waste) Corporate Accountability Raw materials Product Toxicity

12. Start By Benchmarking Your Facility 1st bring your preventative maintenance current, then gather baselines Areas for evaluation: Indoor Environment- air quality, lighting, comfort Employee/guest/tenant satisfaction metrics Costs- energy, water, waste, raw materials Staff & Tenant Employee absenteeism & retention Health and Safety results Productivity Resource utilization for products, processing, packaging, and shipping

13. Resource Management & Safety Water use & leakage Hot water - burns & wastes energy Electricity - Lights & HVAC Waste Stream Reduce, Reuse, Recycle Indoor Air Quality Cleaning Chemicals vs harsh disinfectants (MRSA) Smoking Paints & Finishes Cleaning equipment (microfiber)

14. Success Stories Energy Management & Investor Returns Financial Impact of Energy Star Hospitality: Duke Energy NetApp Anheuser Busch Procter & Gamble HP Cisco Systems And more on a daily basis��..

15. Your Green Resource Team Local utilities Gas Electric Water Energy Star Local chapter of the USGBC Your vendors for HVAC, Waste, Operating Systems & Maintenance Possibly your insurance company

16. Moving Forward Demand for �Green� is growing Take a Leadership role Implement a �Green� initiative Start with the low hanging fruit Document successes Publicize & Communicate �Green� with: Associates Customers/tenants Vendors