1. Investing in the green economy: GIB’s approach to ensuring positive green impact 15 th September 2014

2. 2 WHO WE ARE

3. 3 OUR MANDATE To accelerate the UK’s transition to a greener economy and to create an enduring institution independent of Government.

4. 4 We have invested in every part of the UK, in all of our sectors and using all our financial products WE ARE INVESTING Our investments will save 1.3 million tonnes of waste from landfill We have backed 5 local authority, 3 commercial and 2 anaerobic digestion waste projects We have backed large and small projects; from a CapEx of £2m to £1bn We are building a market in energy efficiency, including streetlight conversion and 4 NHS projects Our investments will produce enough renewable electricity to meet energy needs of 3.0 million homes We’ve invested £623m in 5 offshore wind projects, including construction equity We have set up 5 funds, with £250m, to back small projects Our investments will cut CO 2 emissions equivalent to taking 1.6 million cars off the road We have committed £1.3bn of capital to 31 projects, mobilising a total of £4.6bn

5. 5 Principle 1 Principle 2 Principle 3 Principle 4 Principle 5 Principle 6 Principle 7 Positive contribution to a recognised green purpose Reduction of global greenhouse gas emissions Enduring green impact Clear and firm investment criteria Robust green impact evaluation Effective covenants, monitoring and engagement Transparent reporting INTEGRATING GREEN IN OUR INVESTMENT PROCESS We have developed a framework to mainstream green investment. Our ‘Green Investment Principles’ are an integral part of our investment process Implemented through our Green and Responsible Investment Policies Responsible Investment Policy Green Investment Policy Green Investment Principles

6. 6 ASSESS, MONITOR, REPORT We ensure ‘green impact’ throughout the project lifecycle. To achieve that we have committed to market leading green assessment, monitoring and reporting practices.. We are also committed to continuous improvement and open engagement Adoption of best practice: Equator Principles & United Nations Principles for Responsible Investment. ASSESSMONITOR REPORT Every investment must make a meaningful contribution to one or more green purposes before being considered ‘Green Impact’ is quantified where practicable Each stage of the pre-approval process requires green compliance “sign-off” All approved investments include covenants relating to green performance and penalties for non- compliance All investment recipients are required to submit an annual green report of performance We forecast the green impact of every investment with its announcement We report annually on our green impact against each of our five green purposes, for the reporting period and the projected lifetime impact

7. 7 MAXIMISING GREEN IMPACT Our investment strategy targets maximum green impact. We define green impact through five measures – our green purposes: Enhance biodiversity Reduce greenhouse gas emissions Increase natural resource efficiency Promote environmental sustainability Protect the natural environment Offshore wind to replace fossil fuel power generation Waste recycling facility Diverting waste from landfill through energy from waste plants Developing sustainable biomass procurement Create a positive demonstration effect in the market that mobilises others ExampleMeasure GHG avoided (t CO 2 e) Materials consumption avoided (tonnes material) Renewable electricity generated (GWh) Waste to landfill avoided (tonnes material) Capital mobilised (£) Various e.g. % biomass from sustainable forestry management

8. 8 The information in this document and any accompanying material (“The Document”) is confidential and commercially sensitive. This Document is provided to each recipient on a confidential basis solely for information purposes only. No reliance can be placed on this Document by any recipient or any other person. This Document and its contents are confidential to the person to whom it is delivered and must not be reproduced or distributed, either in whole or in part, nor its contents disclosed by such persons to any other person without the prior written consent of UK Green Investment Bank plc. Except as required by law, neither UK Green Investment Bank Plc nor any of its connected persons accepts any liability or responsibility for the accuracy or completeness of, or makes any representation or warranty, express or implied, with respect to the information contained in this Document or on which this Document is based or any other information or representations supplied to the recipient. UK Green Investment Bank Plc will not act and has not acted as your legal, tax, accounting or investment adviser. This Document does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase, any investment and UK Green Investment Bank Plc does not arrange investments for/introduce parties as a result of sharing the information set out in this Document. Registered Office: Atria One, Level 7, 144 Morrison Street, Edinburgh, EH3 8EX. Company Number SC424067. UK Green Investment Bank Plc is wholly owned by HM Government. The company is not authorised or regulated by the Prudential Regulation Authority or the Financial Conduct Authority. Headquarters Atria One Level 7 144 Morrison Street Edinburgh EH3 8EX Tel: +44 (0)330 123 2167 London Office 21-24 Millbank Tower Millbank London SW1P 4QP T +44 (0) 330 123 3070 CONTACT US For further information visit: www.greeninvestmentbank.com/green-impactwww.greeninvestmentbank.com/green-impact