Sustainable Property policies : example of Caisse des Dépôts

Jean-Pierre Sicard Head of Sustainable Development

Caisse des Dépôts

TBLI Conference, November 10th 2006

Contents

■ Key Informations

■ Better metrics and actor awareness to incorporate ESG factors in Property

■ « CO² domestic projects » to stimulate GHG emissions reductions

■ Innovating actions to test and developp best practices

Housing and Real Estate (blue) : 43% of French energy consumption

Housing and Real Estate : Main part of energy consumption and high potential energy savings (ratio 224 KWH/m2 in total Housing & RE)

Final energy consumption : evolution by sectors (normal climate)

Housing and Real Estate in France : high contribution to GHG emissions

Size■Residences : 2 135 million m²■Offices : 800 millions m²■Average duration : 100 years

GHG Emissions■25% of national CO² emissions ■2 tonnes CO² / person / year

Caisse des Dépôts : our choices

■To promote environmental metrics in property

■To use the Kyoto mecanismes in the building sector

■To test and develop best practices and knowledge within the CDC group and our real estate asset management

Contents

■ Key Informations

■ Better metrics and actor awareness to incorporate ESG factors in Property

■ « CO² domestic projects » to stimulate GHG emissions reductions

■ Innovating actions to test and developp best practices

Promoting better metrics to consider financial returns

■To incorporate ESG factors in the building sector, all actions need simple, comparable, easily checked… metrics

■Not yet the situation in France… :■Lack of studies on financial return■Public and private not easily comparable certifications

■Recent progress :■Official and obligatory energy diagnosis■Growing reflexion on « low energy » buildings

A « low energy » certification in France

■The Caisse des Dépôts is a founding member of EFFINERGIE along with local authorities banks, professionnals, regional agencies…, to introduce into France the equivalent of the Swiss MINERGIE low consumption Housing Certification

■ Both energy consumption and CO² impact are reduced :

Contents

■ Key Informations

■ Better metrics and actor awareness to incorporate ESG factors in Property

■ « CO² domestic projects » to stimulate GHG emissions reductions

■ Innovating actions to test and developp best practices

European Emissions Trading Scheme extension to include Property Sector

■In France, greenhouse gas emissions covered by the European Emissions Trading Scheme accounted for 27% of domestic emissions in 2003.

■The Caisse des Dépôts promotes Domestic Offset Projects, aiming at rewarding CO2 emission reductions with Tradable allowances, in the sectors not covered by the EU ETS : agriculture, transports and building.

Carbon Assets in exchange for GHG emission reductions in the building sector

■A dedicated fund for domestic offset projects would offer project sponsors attractive financial incentives for projects that reduce greenhouse gas emissions

■Buildings sector’s potential emissions reductions : projects to improve :■ the management of service sector buildings ■ changes in commercial refrigeration systems■ replacement of fossil-fuel boilers

=> For investors : financial returns rewarding efforts in the fight against Climate Change in Property Management

Contents

■ Key Informations

■ Better metrics and actor awareness to incorporate ESG factors in Property

■ « CO² domestic projects » to stimulate GHG emissions reductions

■ Innovating actions to test and developp best practices

Our initiatives in our lending policies

■The Caisse des Dépôts is the main lender to Social Housing Agencies : ~ € 3.5 bn/year

■The launching of a new loan with a lower interest rate for energy-efficient buildings Based on the THPE standard (Very Low Energy Consumption Performance) : 15% more energy efficient than the regulatory standards

■Triple impact expected : ■Economical : new energies and innovations booster, less

risk for the lender■Social : energy bill savings for people■Environment : GHG reductions, environmental quality

buildings

Our subsidiaries' initiatives

■Icade (company listed on the French Stock Market)■inaugurated the first French Environmental Certified

Offices Building (picture)■is currently organizing the Sharing of Environmental

Best Practices among its own 14 subsidiaries■soon launch highly efficient energy consumption

programs (<50kWh/m²/yr)■SNI Group (Social and middle-income housing

management) : each of its subsidiaries will have (2007) 1 building at least labeled Housing & Environment

=> Today, the lack of proved financial return is the main difficulty to extend these “best practices”

Thank you for your attention !