Adapting to climate change risk – banking National Australia Bank

1. November 2007Ai Group Climate Change Forum Adapting to climate change risk – bankingNational Australia Bank Rachel O’Neill Carbon Solutions Group, Institutional Banking

2. What are the risks…. • Physical • Changing climatic patterns • Sea level rise • Increased storm and drought severity • Carbon Price • Carbon cost on business operations • Supply chain pass through • Increase in energy costs • Regulatory • Increased reporting requirements • Product and appliance standards • GHG emissions restrictions

3. Managing the risks (and opportunities)…nabCapital perspective Carbon Solutions Group • Formed in 2006 as a specialist group to identify the risks and opportunities within the evolving carbon finance market. • Working with different parts of the Bank and our customers to develop appropriate products and services to meet the needs of our clients. • Experience in energy and utilities financing, credit risk assessment, and financial markets. • Current focus is on the impacts of climate change and emissions trading for large corporates and SME’s.

4. Managing the risks (and opportunities)…nabCapital perspective • Understanding our clients and assisting them manage their risks • Being involved in the development of the Aust carbon market • Dedicated resources to ensure a co-ordinated understanding and response • New products • Raising awareness of climate change risks and opportunities to our Bankers • Developing carbon price risk management capability • Financing renewable energy

5. Financing and Carbon Risk Management • nabCapital is an experienced lender to the energy infrastructure sector –including renewable/sustainable energy. Examples include: • UK landfill gas projects • UK biomass & wind project • Australian wind farm projects • Australian mix of land fill gas and coal seam methane • Carbon Risk Management • Capability to assist our clients manage their carbon risk • Will become increasingly important in Australia

6. National Australia Bank & Climate Change – Conclusion Getting to Carbon Neutral Measure & Report our carbon footprint Real Estate Energy Audits & Design Standards Travel Management & Video Conferencing Fleet vehicle replacement & hybrid cars CSR Reporting Carbon Offsets & Trading Reporting and Validation Green Services Carbon Neutral NAB 2010 Product & Service Offerings Verification & Audit Carbon Neutral NAB Intranet climatechange @nab.com.au mailbox Go Green Calculator Origin Greenhouse Dynamics Team Engaging Our People Diagram based on framework developed by EDS Australia & NZ

7. Further information … Carbon Solutions Group Rachel O’Neill Alison Read Director & Head of Carbon Solutions Group Associate, Carbon Solutions Group Institutional Banking, nabCapital Institutional Banking, nabCapital Ph: 03 8641 4486 Ph: 03 8641 5369 Email: Rachel.M.O’Neill@nab.com.au Email: Alison.C.Read@nab.com.au

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