1. THE “GREEN” BUILDING MOVEMENT PROPERTY CONSERVATION AND YOU 12 th Annual Texas State Fire Marshals’ Conference October 19, 2010 Austin, Texas

2. 1 Agenda & Overview Introduction & Current Statistics “Green” Buildings – A Very Brief History Philosophic Commonalities “Green” Principles & Property Risk Control Concepts Specific Gulf Coast Issues & Challenges Summary & Question Session

3. 2 Introduction “Green” Construction is Here to Stay Market Acceptance of LEED Rating System¹ ² USGBC Membership Explosion² “Green” is Good! Energy & Operation Cost Reduction¹ Building Lifecycle Increase¹ “Green” building sector leaders Education, Healthcare & Office Environments³ Market Expansion from $12B in 2008 to $60B in 2010 ⁴

4. Current Statistics

5. 4 “Green” Building History “Green” building system components can be traced back to 1851¹ Modern “green” building movement gained North American popularity during the 1930s and again in the early 1970s¹ ² The Leadership in Energy & Environmental Design (LEED) rating system was developed by professional practitioner volunteers² The US Green Building Council (USGBC) began in 1993 & launched the LEED system in 1998² Many Fortune 500 firms in support of LEED certification both as building owners and product manufacturers ³ Texas serves as a leader with nearly 100 LEED certified buildings and over 700 registered projects ⁴

6. 5 Known “Green” Projects

7. USGBC Nomenclature Green Building PrinciplesLEED Rating Levels 6

8. 7 USGBC LEED Rating System “Green” Building LEED Principle Existing Buildings: Possible Points Commercial Interiors: Possible Points Core & Shell: Possible Points Schools: Possible Points [Draft] New Construction: Possible Points Sustainable Sites 127151614 Water Efficiency 102575 Energy & Atmosphere 30121417 Materials & Resources 14 1113 Indoor Environmental Quality 1917112015 Innovation & Design or Operations 75565 Total Possible LEED Points: 9257617969 LEED CERTIFIED 34-4221-2623-2729-3626-32 LEED SILVER 43-5027-3628-3337-4333-38 LEED GOLD 51-6732-4134-4444-5739-51 LEED PLATINUM 68-9242-5745-6158-7952-69

9. “Green” Building Examples Willis Building Ipswich, England UT Health Science Center Houston School of Nursing

10. 9 Philosophic Commonalities Green Building Philosophy Focus: ¹ ² ‒ Building Performance Sustainability (Normal) ‒ Long-Term Operating Cost Reduction ‒ Building Performance Elevation (Emergencies) Property Conservation Philosophy Focus: ³ ⁴ ‒ Capital Investment & Market Share Preservation ‒ Performance Longevity via Maintenance ‒ Natural or Man-made Catastrophic Loss Mitigation

12. 11 “Green” Principles & Risk Control Concepts Sustainable Site & Selection Process¹ ³ ‒ Earthquake, Flood, Hail, Snow & Wind Exposures ² ‒ Construction Component Fire Resistance ² Water Efficiency¹ ‒ Fire Protection Water Supply Integrity ³ ‒ Fire Protection System Testing Methodology³

13. 12 “Green” Principles & Risk Control Concepts Energy & Atmosphere¹ ‒ Fire Protection System Atmospheric Requirements² ‒ Construction Component Fire Resistance³ ‒ Building Envelope Wind Resistance Capability, Condition & Maintenance³ Materials & Resources¹ ‒ Housekeeping & Storage of Recycled Materials³ ‒ FM Approval/UL Listing of Recycled Products as Noncombustible Material³ ⁴

14. 13 “Green” Principles & Risk Control Concepts Indoor Environmental Quality¹ ‒ No Smoking Policy with Enforcement² ‒ Exhaust/Venting Impact on Sprinkler Performance³ ‒ Atrium/Skylight Impact on Sprinkler Performance³ ‒ FM Approval/UL Listing of Low Emitting Materials³ Building Innovation¹ ‒ Integrated Building Design Team Impact² ‒ Operational Innovation Impact

15. Gulf Coast Issues

16. 15 Specific Gulf Coast Issues Sustainable Site Selection Building Footprint Minimization Impact ‒ Increased Building Height Design Impact¹ ² ‒ Atria Fire Detection & Protection¹ ‒ Roof Drainage Issues ¹ ³ Green Roofing System Utilization ‒ Insurance Industry Guidelines¹ ² ³ ‒ Building Code Suggestions ⁴ Hurricane & Flood Mitigation ‒ Landscaping Sustainability

17. 16 Specific Gulf Coast Issues Water Efficiency ‒ Water Supply Suitability for Fire Protection¹ ‒ Fire Protection System Testing Frequency Impact ² ³ Energy & Atmosphere ‒ Building Envelope Performance During Hurricanes ‒ Green Roofing Systems ‒ Window (Glazing) Protection Features ‒ Limit use of Canopies & Overhangs for Shade

18. 17 Specific Gulf Coast Issues Materials & Resources ‒ Limited Selection of FM Approved/UL Listed Recycled Construction Products ‒ Suggested Benefit from Using “Certified” Combustible Wood Products Indoor Environmental Quality ‒ Skylight Wind/Projectile Protection ‒ “Hardened” Interior Component Water Resistance

19. Gulf Coast Challenges Hail Storms or Tornados Flood from Multiple Sources

20. 19 Summary “Green” Construction & Property Conservation Share Philosophies Differences are Found in Application During Building Design & Operations Beware of Property Risk Exposure from Evolving “Green” Construction Suggestions

21. 20 Question Session Mark C. Mirek MBA, PE Senior Vice President Willis North America Mark.Mirek@willis.com (214) 458-2517