AIG’s Corporate Strategy on Climate Change Presentation to : The Climate Change and Insurance Forum November 6, 2008 Harrisburg, PA Alice LeBlanc Director, Office of Environment and Climate Change AIG Corporate Affairs

November 6, 2008 “AIG’s Corporate Strategy on Climate Change” 22 AIG’s Policy and Programs on Environment and Climate Change First U.S. insurer to issue policy statement Recognize scientific consensus Acknowledge a serious global problem Response to customer & investor demand: Focus on addressing risks & seizing business opportunities Establish Office of Environment & Climate Change Report through the Carbon Disclosure Project and the CSR website

November 6, 2008 “AIG’s Corporate Strategy on Climate Change” 33 AIG’s Policy and Programs on Environment and Climate Change Support AIG business units in development of products and services to help customers mitigate GHG emissions and to support the carbon market Advance the discussion, engage in advocacy efforts and public policy, and work with like-minded companies and NGOs Internal measures: engage employees and reduce environmental impacts of AIG’s operations

November 6, 2008 “AIG’s Corporate Strategy on Climate Change” 44 Climate Change Strategy: Insurance Global Marine and Energy Advanced Energy Solutions AIG ecoPractice Lexington ecoSurance suite AIG Environmental Sustain-a-Build sm AIG Europe EnviroPro Under development: insurance for carbon credit delivery, including insurance for forests and forestry carbon credits

November 6, 2008 “AIG’s Corporate Strategy on Climate Change” 55 Climate Change Strategy: General Risk Related Activities  Harvard-I.I.I. CAT Modeling Forum  Heinz Center Resilient Coasts  NYC Panel on Climate Change

November 6, 2008 “AIG’s Corporate Strategy on Climate Change” 66 Climate Change Strategy: Investments and Other Climate Change Related Investments Fixed income renewable energy project finance Sindicatum Carbon Capital (private equity investments) Sustainable Investment Team (private equity investments) Consulting Solomon Associates, AIG-Consultants Support insurance and investments Client GHG emissions reductions Possibility of Carbon Trading to support insurance products and provide service to customers

November 6, 2008 “AIG’s Corporate Strategy on Climate Change” 77 Climate Change Strategy: Advocacy: U.S. and International GHG “Cap and Trade” in the U.S. U.S. Climate Action Partnership (US-CAP) Forest Carbon Dialogue EU Emissions Trading Policy Corporate Leaders’ Group (EU) Association of British Insurers ClimateWise Global Carbon Markets Combat Climate Change (3-C) Gleneagles CEO statement (WEF and WBCSD) International Emissions Trading Association

November 6, 2008 “AIG’s Corporate Strategy on Climate Change” 88 AIG’s Climate Change Strategy Advancing the Policy Discussion Climate Disclosure Standards Board National Association of Insurance Commissioners Internal Climate Change Forums (e.g. Climate Change Opportunities: Deliver the Firm) Major Account Conferences: U.K. and China

November 6, 2008 “AIG’s Corporate Strategy on Climate Change” 99 Climate Change Strategy: Internal Commitments and “Be Green” Reduce the climate change impacts of our business operations GHG emissions inventory Energy efficiency & Renewable energy Carbon offsets Reduce other environmental impacts Recycling Paper use Purchasing guidelines Transportation and Travel Engage employees

November 6, 2008 “AIG’s Corporate Strategy on Climate Change” 1010 Cotton farms will benefit from drip irrigation, one of the components of the carbon offset project. Chinese farmers at a local drip irrigation station AIG’s Carbon Offset Projects in China

November 6, 2008 “AIG’s Corporate Strategy on Climate Change” 1111 Trust for Public Land: Reforestation project in the Mississippi Delta The Conservation Fund: Improved forest management in California Equator Environmental: Protection of the prairie pothole grasslands of Montana and North and South Dakota, known as the “duck factory”, the main breeding ground for North American waterfowl. AIG’s Carbon Offset Projects in the U.S.