ShoreBank Pacific Altering the Profile of the Future April 20, 2002

2 Bioregion (coastal temperate rainforest) has the highest standing biomass in the world & other abundant resources Existing industries can be led to sustainable practices

3 Vision Statement ShoreBank Pacific profitably assists businesses and through them, their communities, to be sustainable through their economic, social and environmental practices.

4 Current Growth March 31, 2001 ($000) Total assets23,79845,762 Net loans11,82118,377 Deposits18,94139,146 Equity 4,632 4,036

5 Skills Essential to Success Firmly grounded in natural science Solid business acumen Full understanding of banking

6 Key Areas for Evaluating Perpetual Activities Process: Natural Productivity – AKA Green plants and microbes rule Process: Green chemistry / Engineering Process: Efficiency Community: Diversity & Stability Landscape: Spatial Conservation

7 Natural Productivity Use of basic materials that are produced by natural synthesis, at levels necessary to maintain good ecological health.

8 Natural Productivity: Goals Promotes sustainable natural synthesis Supports essential ecosystem goods & services Supports traditional, yet sustainable land use Uses conservation easements and other tools to protect open lands, keep operations profitable

9 Natural Productivity: Biz Areas Organic / Sustainable land management methods: [e.g. organic dairy farm] Compost, fertilizer production from organic waste Local & direct sales of food & goods Value-add to natural production Bioremediation

10 Green Chemistry/ Engineering Reducing use and emissions of toxic materials, metals, fossil fuels, and synthetic, persistent toxic materials and substances. Enhancing the use of renewable energy, materials and substances in processes, goods and services.

11 Green Chemistry: Goals Materials efficient designs Mimicking nature to create processes & materials that are reusable, recyclable, solar-based Increased diversity of reusable materials Improved quality, especially of food Recycling

12 Green Chemistry: Biz Areas Energy & materials efficient production processes, technologies Effective monitoring & control systems [e.g. combustion technology] Green construction methods that reduce materials use, solid waste, including rehabilitation Local value-added processing

13 Efficiency Eliminating waste at the source. Enhancing reuse, re-manufacturing, internal and external recycling. Increasing efficiency by which natural resources are extracted, processed and used. Using efficient and effective alternative energy systems.

14 Efficiency: Goals Conserves energy, reduces need for energy,reduces ecosystem disruption Conserves embodied energy Does not degrade essential ecosystem services Durability

15 Efficiency: Biz Areas Energy production on-site, distribution, storage, or produces alternative energy devices Green construction Reduces process consumption in existing or new plant (materials – energy – water – waste) Efficient transportation [e.g. car share] (mass transit, train, bicycle, other)

16 Community Diversity & Stability Enhancing business development, economic competitiveness, job creation, fairness in resource use and distribution to meet basic human needs, public safety, health care and education, consistent with other principles.

17 Community Diversity & Stability: Goals Connects worker to community, landscape Protects all members, which conserves resource of each to larger community Values each member within larger community Promotes stability and diversity of local economy

18 Community Diversity & Stability: Biz Areas Widens skilled job base, family-living wages [e.g. cell center] Builds, remodels, renovates low-income housing Improves health, safety, worker conditions, job safety,well-being of community Biz development & ownership among under- supported groups Widens home & land ownership base

19 Landscape – Spatial Conservation Conserving, protecting, and restoring productivity, capacity and diversity to levels necessary to maintain ecological health.

20 Landscape: Goals Improves, supports and diversifies existing community Reduces exposure to recurrent natural disasters through location and construction methods Protects open land, attendant ecosystem services, traditional uses Conserves, restores functional landscapes

21 Landscape: Biz Areas Infrastructure projects – water, sewer, communications, data & energy In-fill, rehabilitation of structures, brownfield reuse, green rehabilitation Redesign of communities for increased efficiency, resilience & durability Methods of power production, distribution, storage that are ecologically appropriate to landscape

22 Assessing a Loan – Example Client makes overlays for panels with reduced organic solvents (<75 %), line of credit and refinance loans total $800,000. Scores range from 0 (not applicable) to 3(high) Score Process 1 – Natural Productivity0 Process 2 – Green chem / engineering3 Process 3 – Efficiency3 Community2 Landscape0 Total 8

23 Loan Portfolio: December 31, 2001

24 Loan Portfolio: December 31, 2001