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Greenhouse Gas Risk Solutions

Greenhouse Gas Risk Solutions. Commercializing Swiss Re’s Sustainability Commitment. Asset Management. Re/insurance. Project Finance. Greenhouse Gas Risk Solutions Targeted Emission Reduction Business Activities. ECO Portfolio Carbon Disclosure Project

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Greenhouse Gas Risk Solutions

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  1. Greenhouse Gas Risk Solutions Commercializing Swiss Re’s Sustainability Commitment

  2. Asset Management Re/insurance Project Finance Greenhouse Gas Risk Solutions Targeted Emission Reduction Business Activities ECO Portfolio Carbon Disclosure Project 3rd Party Asset Management - consumer products Hedge Fund Risk Management - D&O and PD/BI Delivery Guarantees Professional Indemnity Weather Derivatives Credit Guarantees Structured Finance Revenue Stream Enhancement

  3. Asset Management Asset Management -“greenhouse neutral” products Consumer Choice ECO Portfolio Carbon Disclosure Project 3rd Party Asset Management - consumer products Hedge Fund Projects to offset Consumers emissions Swiss Re as Independent Fund Manager Emission Offset Fund

  4. A “greenhouse neutral” Swiss Re The programme structure • To reduce internal emissions by 15% over 10 years by implementation of energy efficiency measures at owned locations • To invest $2,5 million over 10 years in the World Bank Community Development Carbon Fund (CDCF) • Any deficit after 10 years to be made up from internal hedge fund

  5. Re/insurance Insurance - the Value of Swiss Re’s Balance Sheet to a Delivery Guarantee 100 t Biomass Energy Project 100 t SWISS RE Nets $75 Plus 15 t for reserves Risk Management - D&O and PD/BI Delivery Guarantees Professional Indemnity @$ 3.5 t = $350 Benefits from higher cash flow = $425 85 t @$5 t Without SwissRe 50 t @$4 = $200 COMPLIANCE BUYER 85 t Benefits from guaranteed delivery by SR

  6. Validation Re/insurance Verification Certification Emission Certificate Insurance - Professional Indemnity for Certification/Verification • Additional Risk to existing Professional Indemnity Insurance carried by Auditing Firms • New Risks for New Entrants Risk Management - D&O and PD/BI Delivery Guarantees Professional Indemnity

  7. Project Finance Project Finance • Application of structured project finance and carbon delivery guarantees to a new sector: emissions reductions / renewable projects • The benefits of extracting these risks from a project are: • Raises the project investment rating • Increases ROE • Reduces financing costs • Frees up capital for other investments • Swiss Re acts as a facilitator of projects by structuring out the risk elements and thus attracting the financing Structured Finance Revenue Stream Enhancement

  8. So where are we going? ANTICIPATE & MITIGATE FUTURE LOSSES • Improvement of identification and management of environmental and social/societal risks FIND NEW SOURCES OF REVENUE • Identification of market opportunities and development of new products contributing to the mitigation of environmental and societal exposures SAVE COSTS • Improvement of environmental performance of internal operations and logistics

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