The Citizen Act III of Super Green Team Sofia University , Bulgaria for Societe Generale

1. The Citizen Act III of Super Green Team Sofia University, Bulgaria for SocieteGenerale Social & Green Mortgage • Analysis (Inspiration and Scope & Communication the Project) • Concept (Main Actors and Processes & CSGC, CliCom, CliPri, SG, EU) • Implementation (Action Plan & Benefits and Summary) Sofia University for Societe Generale

2. Inspiration and scope • The Citizen Act Challenge • SG asks: “What could Société Générale offer its clients, its employees, and its shareholders to enhance the company’s commitment to Corporate SocialResponsibility?” • Super Green Team answers: brainstorms ideason how to meet the needs of the target groups – clients, employees and shareholders, so that to enhance the popularity and promote a finer image for SG. • Real-life Problems • Global situation: the world faces a financial crisis (people loose confidence in the banking sector, businesses face difficulties due to downsizing and redundancy rate leading to bankruptcy) and environmental crisis (global warming due to increased levels of CO2, energy efficiency (EE) problems – constant water and electricity waste, etc.) • Problems of the individual: how to save money instead of wasting them, to find ways to cut their expenses on utility bills at home and optimize their costs at the workplace. • Our socially active response to all these – Social & Green Mortgage (SGM) • What is SGM? A mortgage loan, requiring buying a property (collateral being the same property) at preferential rate, depending on the “green” level of the home/office being bought, regardless of that whether it is a newly built already “green” construction or it is an old one to be renovated to “green”. • Why “Mortgage”? An answer to SG challenge – a new product that meets the needs of all target groups (Clients: intelligent investment to save money in the long run by buying a “green” home/office; Employees: the need to live efficiently ; Shareholders: loans are the main source for compiling capital; the most profitable for the bank). • Why “Social and Green”? Environmental problems solving: both improving CSR image of the company (thus, regaining people trust in the banking industry) and preserving our only home – Earth: spreading awareness for EE way of living and working (by promoting “green” homes /offices - energy efficient and eco-equipped). Sofia University for Societe Generale

3. Dissemination of the Project • BUZZ! The means we employ are: spreading our idea among friends, colleagues and teachers through personal contacts, via the Internet. We use the most widespread communication channels such as Skype, Facebook and our University mailing groups, thus making our project available for hundreds of people. The generated traffic and whole activity on the wikiblog (visits, comments and advice) were thanks to the kind support of our friends, relatives, colleagues, tutors without whom we wouldn’t have achieved such results. • Information Flows! The main sources for developing our project was again the Internet and the useful materials sent to us by our Ambassador and Teachers. We used sites of official institutions (EU, EC, EBRD, Bulgarian Ministry of Economy and Energy); organizations such as Bulgarian Energy Efficiency Fund, Bulgarian Energy Efficiency Agency and many others. We have looked for sites with useful tips (Using Energy Wisely Checklist) in order to further develop the EE idea, as well as such as showing off what our Energy IQ and Carbon Footprint are. • Help from the highest level! Words cannot describe how much did our Ambassador – Mrs. Elitsa Nestorova help us! Apart from supporting our team throughout the project, the useful information and advice she gave us, she also arranged two important meetings that had essential role in the development of our idea, with: • Mr. Michel-Noël Capestan - Head of Human Resources for SG Bulgaria • Mr. Mihail Komitski - Deputy Head of Corporate Banking Sofia University for Societe Generale

4. Main Actors & How does SGM work? • Actors: • Client (CliPri)- Individual clients (buying homes), Private companies (buying offices), SG’s Employees (buying homes); • Partner Firms (CliCom) – labeled firms for eco equipment, «green» construction and renovation; • Consultancy Company (CSGC = Control Service & Green Certification) – certification, assessment, monitoring and control on «green» projects as SG is not technically qualified to do this, as we envision CSGC for our goals; • Societe Generale (SG) – fundamental mediator between all other actors and main contributor to project realization. • European Union (EU) - financial aid for «green» projects • Processes: • CliPri go to SG, to buy a new home/office. • SG contacts a CSGC company. • CSGC certifies the CliCom. • CSGC assesses the status and controls the renovation of old buildings and monitors the process of constructing new buildings. • SG creates a network of certified CliCom. • CliCom are financed by the bank for their eco projects. • CliCom renovate or build new eco homes. • A case, when the client goes to the firm at first and then the firm directs him to the bank. • SG grants the SG Mortgage - loan at a preferential rate. • SG receives EU subsidies for “green” projects. Sofia University for Societe Generale

5. Consultancy Companies – Control Services & Green Certification (CSGC) As SG doesn’t have its own technical methods of assessing what is “green”, the bank needs assistance provided by CSGC to create a network of partners which meet the necessary quality requirements. Once engaged, CSGC are responsible for: • Forming the network of partners • Inviting the officially published eco-labeled firms (e.g. REECL website) • Choosing eligible firms that are additional to the list above (completing the list of required activities for eco equipment) • Certifying where necessary such enterprises (Then the certified firms will carry the building works and SG will be assured that they do it properly); • Working progress monitoring • Initial assessment of old construction building;(when the client wants to buy an old construction, the conditions of SGM require this property to be renovated to “green” level with the necessary eco-equipment and the CSGC have to examine the status of the property to determine the eco equipment to be installed. • Final assessment act after the building delivery work – CSGC checks whether the improvements made meet the requirements of the initial SGM offer • Further control of the completed buildings, quality maintenance of the established network. (In case a firm does not comply with the quality requirements to be sanctioned and substituted with another in order to complete the contract) The quality requirements are subject to the “green” criteria set by EU – The Energy Performance of Building Directive, and the certification complies with the European Performance Certificate. Sofia University for Societe Generale

6. Partners Firms (CliCom)– eco-equipment, “green” construction and renovation SG with the aid of CSGC will form up the initial list of firms that are eligible to join the network. The use the firms have of the project is to be a part of the network backed-up by SG thus ensuring clients. If a new firm should show interest to join the network, an inspection by a CSGC will be appointed (on the expense of the firm). If eligible then the firm will be added to the group. Once part of the network, partners are: • Construction companies building energy efficient buildings, according EU standards and complying to all related legislations (their services are used when the clients buy a green home/office which is built according to the EE standards. The firm belonging to the SG network guarantee to the clients to have the project completed. • Renovation companies that turn the old inefficient house/office into “green” one. These firms will install energy efficient equipment (e.g. energy efficient windows; walls, roof, floor insulations; efficient biomass stoves and boilers, efficient gas boilers; heat pump systems; photocells (water mixers); motion sensors (lightning), etc.). • Depending on the installed equipment or how green is the renovated house the interest rate on SG Mortgage will vary depending on: the more the EE equipment installed – the lower the interest rate. (this is stated in the initial offer for SGM, prepared by SG with the support of CSGC) • The partners may get financed by SG for their projects. • The partners will direct clients to SG for funding. Sofia University for Societe Generale

7. Clients (CliPri) Our project’s main target group is the retail client who is interested in buying a new property. Clients may be individuals, interested in buying a new “green” home or firms interested in buying a new “green” office. The SGM provides the average person with a unique opportunity to integrate modern technology with the construction of their future home or office. Once decided to buy a “green” property, it is specified as follows: • Constructed by a partner firm • New “green” property The most preferable option in which a client chooses to buy a property, built by any of SG’s partner construction company. The EE of this way built homes/offices are guaranteed because of the CSGC control. (most preferable, as it needs less intrusion by CSGC as the subcontractors have been approved and are part of the network of partners. • Constructed by an outsider firm • New property for assessment (renovation if necessary) In case the client have chosen a “green” estate that is constructed by an outsider firm (one that is not in the partners list) The bank appoints a consultancy firm to certify on what extend the property meets the established “green” standards, next an offer is issued for eco-equipment to be installed if needed. • Old/existing property for renovation A client may have chosen an estate that meets his requirements but does not meet the “green” criteria. In order to take advantage of the SGM, the client will decide how green his house should be and according to his desire the property will be renovated by a partner company for renovation chosen by the client. • The SGM conditions and the interest rate in all cases are determined according an offer, in which are specified all green features to be constructed and/or installed. • SGM aims at/ is only for purchasing a new property home/office (no matter whether it is new or old building ) rather than renovating existing ones. (i.e one is not eligible for such a credit if redecorating a place they live. • SG Employees may also be considered potential clients, as far as they also apply for SGM, because they have decided to buy a new home. Sofia University for Societe Generale

8. Société Générale (SG) SG will act as a fundamental mediator between all other actors and as main contributor to the realization of the project. Before launching the project SG will need to accomplish the following: - Hire Consultancy Companies that are eligible of assessing the “green” standard. ( 1-2 weeks) - Make partner’s network with aid provided by the CSGC. The partners are firms engaged in “green” building or “green” renovation. (1-2 months) - Apply for “green” refunding by the EU. - Advertise the new SG Mortgage to the public. (PR & Marketing period 1-2 months) - SG will finance the eligible clients. European Union (EU) • European Union (represented by institutions such as the European Commission and the European Bank for Reconstruction and Development) finances various projects and energy efficiency plays a substantial role in EU politics. EU funds in support of these policies are spread across a variety programmes and are allocated through grants. • - SG will apply for grants from the EU in order to receive additional funding for the SG Mortgage project that will cover the initial consultancy expenses. • A programme that targets energy efficiency is the Competitiveness and Innovation Programme (CIP) with a budget of 3.2bn Euros. • More information about the opportunities for financing by EU are described in EU Funds for Energy and Environment - http://www.tekes.fi/eu/fin/7po/yhteistyo/energia/EnergyEnvironmentReview.pdf Sofia University for Societe Generale

9. Action Plan • Necessary resources for realization • Human resources – CSGC, staff from the bank occupied with the project • Financial resources – Funding needed for the loans • Risks • concerning realization – Initial investment associated with hiring consultancy companies. The choice of CSGC is essential because the realization, maintenance and development of the product depend on their qualified work. Risk associated with finding proper partners. • financial and operational risk - no more risk than common mortgage loans. • Project implementation • Time – needed to create partners network, marketing the product (less than a year). • Range – Applicable worldwide as energy efficiency is a global problem. • Price – Resources needed for hiring CSGC (possibly covered by EU grants), PR & marketing costs. For much more illustrative, time-framed and with “what if aspects” – please refer to the Action Plan, available for downloading on our wikiblog. Sofia University for Societe Generale

10. Benefits and Summary SGM will ensure benefits for all mentioned target groups: - Clients – Everyone needs a place to live in. SG Mortgage offers the clients to obtain a new home at lower utility bills and enhanced comfort, thus improving the life standard. The clients will additionally benefit from the lower interest rate and tax reduction if the particular state has such a legislation. - Employees – They are clients with a simplified application procedure. - Shareholders - The main concern is profit: SGM is a mortgage loan, which is the bank's primary source of profit. Mortgage loans are widely used throughout the world; a substantial part of the bank's portfolio consists of such loans. - SG - Our product improves the bank’s CSR image, providing higher competitive rate during the financial crisis. It also builds up a solid base for the future framework of the bank’s initiatives. SGM draw more clients and partners. SG becomes more competitive on every possible market, once chosen to launch this new idea, because energy efficiency is mainstream issue worldwide. - Partners - receive more clients which ensures the jobs for the staff and makes up for the crisis. Summary • The SG Mortgage is a solution to present-day problems, because it addresses current global energy and financial issues. The product we suggest is easy to implement in a short time - the preparations will hardly exceed a year. Our idea will not change the world in a day, but it has the potential to make a difference in a long run. The growing concern on the environmental problems makes people seek for ways to neutralize the negative impact of their actions. SG Mortgage offers a distinct and concrete environmentally friendly solution: live in a “green” home and work in a “green” office. SG Mortgage brings innovation since there is no such product available; similar products are for Energy Efficiency and common mortgage loans (in our country in particular SGEB does not offer any Energy Efficiency products). SG Mortgage is secured by real property and holds no more risk and its implementation costs are no more than any other mortgage loan. • SGM is not limited to a region; it is applicable worldwide as energy efficiency is a global problem. • SGM will lower utility bills, reserve resources, lower carbon emissions, ensure a brighter a future for the next generations. Social & Green Mortgage – the active position of Societe Generale - the Socially Responsible Bank! The Bank that doesn’t fear, but stands up against the crisis with a new product that makes everyone concerned a better-off! The only way to lose in not taking the step to a wiser future! Sofia University for Societe Generale