The document discusses the role of commercial banks in addressing climate change and financing the transition to a low-carbon economy. It provides an overview of ABN AMRO and RBS's sustainability strategies, which include managing environmental and social risks, reducing their carbon footprints, and developing low-carbon banking products and services like renewable energy financing. Commercial banks are well-positioned to help scale up low-carbon technologies by providing various financial services, but need to collaborate with other stakeholders such as developers and research institutions to accelerate their commercial viability.

1. Commercial banks and the shift to a low carbon economy Francis Condon Carbon Connections 28 th February 2008

2. This presentation covers… Commercial banks and corporate social responsibility/sustainability An overview of ABN AMRO’s approach to, and experience in addressing, the challenges of corporate social responsibility and sustainability Additional challenges of climate change issues today What climate change means to commercial banks and how this issue is being addressed in terms of direct impact, risk management and business development Role in the shift to tomorrow’s low carbon economy Where commercial banks fit in terms of financing low carbon technologies. Changes that could lead to faster development of new technologies. The link between commercial banks and the higher education sector

3. Sustainability at ABN AMRO Our definition To live our Corporate Values and Business Principles and to meet the needs of the organisation and our stakeholders, thus seeking to protect, sustain and enhance human, natural and financial capital needed in the future. Our ambition We are committed to continuously improving the integration of sustainable development into our working environment and business processes. Our aim is to play a proactive role in contributing to sustainable development, within our areas of influence. We are committed to accountability and transparency in our sustainable development performance.

7. An ongoing journey Value Creation Loss Avoidance Value Destruction Equator Principles Risk Management Ignorance Business Development Strategic Risk Policies Reactive Uncoordinated

8. ABN AMRO & RBS lead approaches to climate change ABN AMRO In January 2008, ABN AMRO was rated as second of forty banks in a CERES survey of responses to climate change RBS In September 2007, RBS was rated as one of the three finance sector leaders in the Carbon Disclosure Project

11. ABN AMRO’s Environmental, Social & Ethical Risk Process Prospective Business Engagement ESE Risk Filter Industry sector Country Specific issue Track record External record Overall concerns Informal Assessment List of other sensitive sectors / activities List of sensitive issues Client specific track record External information providers Formal Assessment Business Values and Principles Human Rights Position Statement CSERF Sector Policies Environmental & Social Frameworks and Tools Ethical Policy Case Review Recommended Oil & Gas Mining Forestry Defence Hydro Dams Gambling Tobacco Nuclear Animal testing Supply chain issues Others CDT CDT Template Template Advice by SRA and Business Unit Advisory Teams CDT Lending Activities: Credit Approval System Non-lending Activities: Engagement Committee System EP Template Key Questions Key Questions As required As required

17. Where commercial banks fit in