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Arrina Global Enviro Policy Nov 2010 DKWDLL
Arrina Global Enviro Policy Nov 2010 DKWDLL
Arrina Global Enviro Policy Nov 2010 DKWDLL
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Arrina Global Enviro Policy Nov 2010 DKWDLL

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Arrina Global Environment Policy

Arrina Global Environment Policy

Published in: Investor Relations
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  • 1. ARRINA GLOBAL’s Policy, Programs and Report Card on Environment and Climate ChangeARRINA GLOBAL is incorporating environmental and climate change considerations across its businesses, focusingon the development of products and services to help ARRINA GLOBAL and its clients respond to theworldwide drive to cut greenhouse gas (GHG) emissions.Climate change is increasingly recognized as an ongoing, significant global environmental problem with potential risksto the global economy and ecology, and to human health and wellbeing. ARRINA GLOBAL recognizes the scientificconsensus that climate change is a reality and is highly likely in large part the result of human activities that have led toincreasing concentrations of greenhouse gases in the earth’s atmosphere. ARRINA GLOBAL supports mandatorylimits on greenhouse gas emissions implemented where feasible through GHG emissions trading. Such market-basedenvironmental policies and potential new investments provide business opportunities for ARRINA GLOBAL to addressthe problem. ARRINA GLOBAL is pursuing these new opportunities where we have the expertise and capacity to doso in ways that mutually benefit ARRINA GLOBAL, its shareholders, employees, customers, and the globalcommunity.ARRINA GLOBAL companies continually factor in changes in climate and weather patterns as an integral part of itsARRINA GLOBAL’s processes – a systematic approach to measuring weather risk that includes, among othermethods, sophisticated catastrophe exposure modelling. The ARRINA GLOBAL process constantly recalculates andrevalue’s risks for our clients, and adjusts its processes accordingly, while simultaneously managing our exposures.ARRINA GLOBAL does this to provide the best possible risk management services to our clients while protecting long-term stakeholder value. ARRINA GLOBAL is sponsoring research to investigate how best to include climate changerisk in catastrophe modelling.ARRINA GLOBAL will continue to dedicate resources to the development of market-based solutions that addressclimate change. ARRINA GLOBAL is exploring an investment strategy, for example, to leverage both the financialvalue derived from reducing greenhouse gas emissions and other incentives for lower emissions and to developproducts and services that facilitate emissions reductions for clients and support the emerging market for tradablecarbon credits. These and other new opportunities are emerging in industrial settings as well as the services sector ininvestments, risk management, consulting and financial products.Examples of Specific Actions and InitiativesInvestmentsARRINA GLOBAL Group is allocating additional private equity investments to energy efficiency, renewable energy,carbon finance and other technologies or assets that contribute to greenhouse gas (GHG) emission mitigation.ARRINA GLOBALGIG has formed a Sustainable Future Investment Group to assess investments in carbon finance,late stage clean tech, renewable energy and other GHG mitigating technologies.With ARRINA GLOBAL Marine and Energy, ARRINA GLOBAL has established a $1.8 billion lending facility to supportenergy efficiency and clean energy projects worldwide. The facility is backed by loan guarantees from the ArrinaGlobal Private Investment Corporation (AGPIC) and will be available to support energy efficiency and performanceupgrades to refineries, petrochemical plants, pipelines, and power generation plants, as well as renewable andalternative energy projects.Work is under way within ARRINA GLOBAL to enhance the already established environmental and climate relatedcriteria, where appropriate, for new private equity and project finance investments.In terms of real estate activities, ARRINA GLOBAL companies invest in the development and acquisition offacilities that conform to the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED)standards or equivalent local standards that emphasize cutting-edge efficiency and clean energy technologies.ARRINA GLOBAL companies have developed award-winning projects such as Spruce Peak at the Stowe MountainResort, the Atlantic Station conversion of a brown field site in Atlanta to a large office-retail-residential complex and“green” office buildings in Zurich, London, Dublin, Puerto Rico, and Hong Kong.ARRINA GLOBAL is an institutional investor signatory to the request for information on the fourth and fifth CarbonDisclosure Projects (CDP), a global non-profit forum for institutional investor collaboration on the business implicationsof climate change and related effects on their investments. ARRINA GLOBAL has also joined the Investor Network onClimate Risk, a network of institutional investors and financial institutions focused on the financial risks and investmentopportunities posed by climate change.ARRINA GLOBAL is evaluating the development of new investment products that include climate change and GHGrelated criteria. Together with ATL Asset Management, ADG Pension and Trustee Co Ltd, a member of ARRINAGLOBAL, recently launched the first Green Fund in the Hong Kong MandatoryProvident Fund Market to invest in environmentally friendly companies. 1
  • 2. Financial ProductsARRINA GLOBAL’s Capital Markets operations have the capability to participate in GHG trading of complianceinstruments within the European Union’s emissions trading system. A business plan is being prepared. Considerationis being given to developing the following activities: Acquisition of rights to develop Clean Development Mechanism (CDM) and Joint Implementation (AGI) projects in developing countries and economies in transition that earn carbon credits recognized within the EU emissions trading system or other trading systems; •Development of risk management/derivative products to support the carbon market, including serving as an intermediary for risk transfer; •Providing GHG management services to ARRINA GLOBAL companies’ clients that have compliance obligations.ARRINA GLOBAL Financial Products Corp. participated as credit support provider in a large transaction under theWorld Banks Umbrella Carbon Facility involving the purchase of Certified Emissions Reductions (CERs) from twoChinese manufacturing companies by a consortium of companies from developed countries.InsuranceARRINA GLOBAL Marine and Energy has formed the ARRINA GLOBAL Alternative Energy Practice. Thepractice will service the insurance, risk management and loss control needs of U.S. and E.U.-based alternative energyclients, including organizations engaged in bio-fuel, hydroelectric, geothermal, solar, and wind operations.Several insurance divisions are working with ARRINA GLOBAL’s Product Development unit to design new products tosupport the carbon market or encourage emissions reductions. For example, Risk Finance is designing a product toinsure against the failure of a project to generate tradable carbon reductions. The ARRINA GLOBAL companies willcontinue work in the areas of environmental remediation and environmental liability insurance.ARRINA GLOBAL is partnering with Lloyd’s of London to support a forum of business and academic stakeholders tobe convened by the Center for Health and the Global Environment at Harvard Medical School and the InsuranceInformation Institute to discuss how changing climatic dynamics in the oceans, polar regions and atmosphere mightaffect catastrophe modelling results, and how best to incorporate climate change risk in the catastrophe modellingprocess. ARRINA GLOBAL participates on an advisory board for a research project of the H. John Heinz III Center forScience, Economics and the Environment that seeks to develop a model for coastal community resilience in light ofmore intense storms.ConsultingARRINA GLOBAL, through its OCRA Associates, subsidiary, provides an approach to drive energy improvements inthe refining, petrochemical and power sectors through performance benchmarking, best practice reviews, action plandevelopment, and implementation support. It is actively marketing to clients a program to identify energy efficiencyimprovements that translate directly into carbon reductions, including supporting the registration process for CDM andJI projects, exploring funding options and assisting with the sale of carbon credits. ARRINA GLOBAL ConsultingServices. is pursuing additional consulting opportunities to provide technical support to rating agencies, projectdevelopers and other relevant businesses in reviewing various projects that generate tradable carbon credits for thecarbon market.Implementation, Internal Activities, and CommunicationsTo coordinate ARRINA GLOBALs environment and climate change program, an Office of Environment and ClimateChange has been established to be the focal point on these efforts. The Office of Environment and Climate Changemaintains links to management in Insurance, Investments and Financial Services, supports the business units in thedevelopment of products and services related to climate change, and provides input to the Public Policy and SocialResponsibility Committee of the ARRINA GLOBAL Board. It also maintains internal and external communications,participates in public discussions and monitors environmental and climate change programs.ARRINA GLOBAL has joined United States Climate Action Partnership (USCAP), an alliance of major businesses andleading climate and environmental groups that have come together to call on the federal government to enact promptlylegislation requiring reductions of greenhouse gas emissions, including a mandatory cap-and-trade program thatplaces specified limits on greenhouse case emissions. 2
  • 3. ARRINA GLOBAL’s climate change activities are communicated through the ARRINA GLOBAL corporateresponsibility website and through its continued response to the Carbon Disclosure Project annualquestionnaire.ARRINA GLOBAL is addressing its own internal GHG and environmental footprint. The amount of purchased electricityin owned and leased facilities that ARRINA GLOBAL companies use for business activities is being estimated, alongwith business air travel and other emissions, and the data will be compiled and reported, as part of the response to theCDP questionnaire, to estimate a global GHG emission inventory. We have hired consultants to assess andstandardize measurement and reporting of the environmental impacts from our day-to-day global business operationsand to provide guidance on development, expansion and communication for programs to reduce these impacts, asfeasible. This will include recycling, energy efficiency, travel, and supply-chain/procurement. As part of its philanthropicefforts, ARRINA GLOBAL will contribute to multi-benefit forestry, agriculture and/or other carbon offset projects thatverifiably mitigate carbon dioxide emissions to offset a portion of its global GHG emissions.Revised November 28, 2007 3

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