Commercializing Swiss Re’s Sustainability Commitment via Innovative Financing Options

1. Commercializing Swiss Re’s Sustainability Commitment via Innovative Financing Options

2. Swiss Re’s Sustainability Commitment • #1 in sector sustainability rating (since 2000) • 3% of ourshares held by green/socially responsible investors • High profile issue with clients, media, government (US and EU) • Commitment: • Executive Board “Top Topic” • Viewed as competitive differentiator • First to create a business unit – Environmental/GHGRS • Supported by senior executive committee • Brief: Commercialize Sustainability via business generation, risk and awareness raising • Unlocking opportunities for Swiss Re through environmental markets • Monetization of environmental benefits • Renewables financing and risk management • Grow ‘sustainable asset management’ opportunities

3. FOOTPRINT NEUTRAL

4. Consumers Company Businesses Company OVERVIEW OF THE FOOTPRINT NEUTRAL PROGRAM Consumer Consumer Education and Education and Sample Offset Projects Sample Offset Projects Program Management and Program Management and Offset Revenue Offset Revenue Menu of Offset Options Menu of Offset Options Fund Allocation Fund Allocation Generation Generation • • Energy efficiency Energy efficiency Consumers Consumers Greenhouse Greenhouse • • Renewable energy Renewable energy Neutral Neutral • • Avoided Deforestation Avoided Deforestation Company Company • • Native Restoration Native Restoration Footprint Footprint Biodiversity Biodiversity • • Protected Areas Protected Areas Neutral Neutral Neutral Neutral Program Program • • Eco Eco - - entrepreneurs entrepreneurs Businesses Businesses • • Water purification Water purification UNDP/TNC/CI roles: program UNDP/TNC/CI roles: program Water Water management; business management; business Company Company Neutral Neutral • • Watershed protection Watershed protection development; technical development; technical advisory and project advisory and project implementation implementation • • Human rights Human rights Cities/Regions Cities/Regions Other MDG* Other MDG* Swiss Re role: financial Swiss Re role: financial • • Poverty Alleviation Poverty Alleviation Projects Projects management and business management and business Community Community development development • • HIV/AIDS HIV/AIDS * Refers to the Millennium Development Goals * Refers to the Millennium Development Goals

5. FOOTPRINT NEUTRAL DEVELOPMENT TIMETABLE PHASE 1 Post-funding Months 1- 6 PHASE 2 Months 7 - 18 PHASE 3 Months 19 - 36 Current Status July ‘04 Design Phase Project Phase & Description Develop Concept and Secure Funding Develop Footprint Neutral concept, attract potential partners and investors Finalize Company Commitments and Launch Program Finalize company partner commitments and launch program Build Organization and Launch Initial Products Build Footprint Neutral organization and implement initial company partnerships Invest in Offset Projects and Grow Partnerships Develop self-sustaining organization that generates and invests funds for offset projects Activities • Design and test concept • Secure initial partner commitments • Secure funding for Footprint Neutral to ensure project sustainability • Finalize partnership agreements with 1-2 partners • Create detailed business plan and product plan for initial company partners • Finalize Advisory Board and Technical Standards committees • Launch program (at Davos) • Design and launch Footprint Neutral products with initial company partners • Finalize carbon offset frameworks • Agree on specific vehicles/ for offset project funding • Hire project team and second technical advisors • Secure relationships with other service providers • Allocate funds to offset projects • Monitor, evaluate and report results • Manage partner/investor relationships • Develop new partnerships and design new Footprint Neutral products • Expand team as necessary to support growth

6. FN HAS POTENTIAL TO BECOME A MAJOR INNOVATIVE SOURCE OF FINANCING $MM • Footprint Neutral would join a small group of innovative mechanisms with substantial funds for offset projects • Prototype Carbon Fund • Biocarbon Fund • Community Development Carbon Fund • Self-financing dimension of Footprint Neutral differentiates it from other major funds • Biocarbon and Community Development Carbon still raising financing from public/private sources and not yet operational • Uniquely extends offsets beyond carbon to biodiversity, water and other social impacts *Funds still being raised. Not yet operational **Base case scenario – assumes $42M offset project funds generated in year 5 Source: World Bank; Footprint Neutral revenue model

7. Swiss Re European Clean Energy Fund

8. Fund Highlights Roles & Responsiblities Fund Characteristics Conning Asset Management TCW Energy Infrastructure Swiss Re Greenhouse Discussion • Size: $250 million (soft commitments for $75 million currently being negotiated) • Term: 10 years with 5 year renewal option • Target Projects: • Cogen, District Heating and Electric, Efficiency Retrofit, Renewable Energy • Target Returns: 15% - 25% • Geographic Scope: Pan-Europe, including Central and Eastern Europe/Former Soviet Union

9. Fund Highlights Roles & Responsiblities Fund Characteristics Conning Asset Management TCW Energy Infrastructure Swiss Re Greenhouse Discussion • Swiss Re to lead marketing efforts in Europe and North America • Envisages Regional Distribution Partners for Japan, Australasia • Strategic Investors include Multilateral Agencies, Industrial Corporations with GHG profile/renewables interest, Institutional Funds and European/Japanese Banks. • Off-take agreements for carbon credits under discussion. Leverage SR GHG knowledge to provide investors with stream of credits. • On-ground Network of Project Managers for CEE/FSU