2 Disclaimer This presentation is for discussion purposes only. Second Nature is currently exploring the viability of formally establishing a Climate Action Investment Platform.

3 Goal Streamline Sustainable Climate Action Plan Implementation and Financing to Fund Energy Efficiency Projects on Campuses

4 The Challenge Despite interest and desire, many institutions of higher education continue to find it difficult to invest in energy conservation and renewable energy technologies. The number one issue identified as to why the pace has not quickened is a lack of standardized and committed funding that suits the broad range of institutional needs. 4

5 Issues of Suitability + Need for funding that does not impact institutional balance sheets or present a challenge to institutional debt limits + Funding strategy that does not increase operational costs + Source of funding that does not raise preferential/non- competitive issues + Need for sophisticated impartial advice on funding strategies + Need for funding that can be paid back within the narrow limits of energy savings/renewable energy offset cash flow 5

6 The Opportunity + Expanded access to capital markets + Removes financial risk of project underperformance by providing performance reinsurance + Provides rated performance guarantees, standardized 3 rd party due diligence and project validation + Provides a non-recourse, service agreement, with a performance based payment, reverse liability and third-party ownership. + Offers an Energy Services Agreement not requiring liens on underlying property and “off-debt” 6

7 Service Agreement Financing +Remove Financial Liabilities +Balance-Sheet Expansion and Deleveraging +Immediate Liquidity from Front-Loaded Savings +Credit-Positive Transaction Structure

8 Basic Deal Structure + SN will assist in marketing to institutions the opportunity to enter into a Service Agreement based on a Scope of Work determined by the institution. Institutions will initiate the project and select Service Agreement Providers/Contractors + Upon agreement between Institution and Service Agreement Provider/Contractor (SAP), the SAP will submit the project to a standard portal for preliminary due diligence. When approved, institution enters a LOI reflecting the structure of the project. + Underwriting technology platform screens project applications from SAPs. + Reinsurers approve projects. + Project financing is provided to SAP. Colleges never actually enter into any loan obligation. Disbursement and financial management will be under the oversight of a project trustee, who will also oversee regulatory compliance. + Based on Service Agreement, the institution will pay the SAP who will repay the loan. + Colleges will have financial obligations only to SAPs, contracts which they fully control. 8

9 Pilot Partner Identification Second Nature is currently looking for Pilot Projects to evidence the viability of a dedicated Climate Action Investment Platform. If you are interested, we are available to meet with you, and your team, at your convenience to discuss your Climate Action Project Development, Underwriting and Financing Needs.

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