1. A Shell-Bechtel Venture Sustainable Development as an Integrated Business Approach Tools and Strategies 15 October 2004 Stephen Raab and Sean Kiernan

2. A Shell-Bechtel Venture InterGen Overview Overview of InterGen’s international operations Challenges integrating Corporate Social Responsibility and Sustainable Development programs HSE and SD – the perfect marriage? Early history of InterGen’s SD programs Why do we need more? What will full integration of SD achieve? InterGen’s corporate SD Policy SD Global Standards structure

3. A Shell-Bechtel Venture InterGen Overview SD/CSR indicators Application of SD tools InterGen SD Screening and Gap Analysis Tool SD gap analysis program implementation Asset specific SD plans Overview of corporate SD program Success factors of corporate SD program Please do not hesitate to call!

4. A Shell-Bechtel Venture InterGen Global Portfolio

5. A Shell-Bechtel Venture Challenges of SD/CSR Program Integration Its not community/public relations Programs supported by multiple functional groups (Legal, BD, O&M, Public Affairs, HSE) Short-sighted promises made in development need to get carried into operations Environmental conditions –Technology (emission controls) Economic conditions –Merchant facility vs. fully contracted facility Social Conditions –Developed vs. Developing Countries

6. A Shell-Bechtel Venture HSE and Sustainable Development – The Perfect Marriage? Young company (less than 10 years old) HSE program development had three-year lead time Proven three-tiered program structure –Policies –Global Standards –Site Specific Programs Continuous improvement well established Functional groups SD benefits from proven and integrated HSE structure

7. A Shell-Bechtel Venture Early History of InterGen’s SD Program Philippines –Social programs: education, health and nutrition program for nearby village Australia –Cultural sensitivity program for nearby Aboriginal tribes Mexico –Green building design and technology for nearby village

8. A Shell-Bechtel Venture Why do we need to do more? Lack of identification of SD risks/opportunities Inconsistency in project SD screening Varying focus on environmental, economic and social aspects Difficult to budget through life of project Overall lack of clarity – special program or the way we do business?

9. A Shell-Bechtel Venture What will full integration of SD achieve? Able to meet DJ GSI/London FTSE4Good criteria? Positive effect on financial performance? Reduction of environmental compliance risk? Reduction of environmental/social risk to business development (permitting phase)?

10. A Shell-Bechtel Venture Integration of SD at InterGen Corporate SD Policy –Corporate Commitment –Integrated Management –Communications –Environmental Stewardship –Impact Mitigation –Use of Natural Resources –Economic Development –Employment –Community Development –Human Rights –Cultural Sensitivity

11. A Shell-Bechtel Venture SD Global Standards Structure InterGen Sustainable Development Model (ISDM) InterGen Corporate Policy 1.17 - Sustainable Development EnvironmentalSocialEconomic Environmental Stewardship SDM-HSE-0104 Impact Mitigation SDM-HSE-0105 Use of Natural Resources SDM-HSE-0106 Governance Corporate Commitment SDM-HSE-0101 Integrated Management SDM-HSE-0102 Communications SDM-HSE-0103 Community Development SDM-HSE-0109 Human Rights SDM-HSE-0110 Cultural Sensitivity SDM-HSE-0111 Economic Development SDM- HSE-0107 Employment SDM-HSE-0108

12. A Shell-Bechtel Venture SD/CSR Indicators Alignment with externally recognized indicators via WEC ICSR Tool –GRI: Global Reporting Initiative Sustainability Reporting Guidelines –BSR: Business for Social Responsibility “Introduction to Corporate Social Responsibility” –Sullivan: Global Sullivan Principles –United Nations: Kofi Annan's United Nations Global Compact Principles –OECD: Organization for Economic Cooperation and Development Guidelines for Multinational Enterprises – SA8000: Council on Economic Priorities "Social Accountability 8000 Standard"

13. A Shell-Bechtel Venture Application of SD Tools Gap Analysis Tool –Single tool supports a consistent approach worldwide –Tool can be applied in all phases of power business (business development, engineering & design, construction and operations) –Tool enables assets to assess, on an item-by-item basis, the project specific sustainable development risks and opportunities –Gaps identified can be rolled into a prioritized Gap Implementation Plan –A, B & C priorities reviewed and addressed

14. A Shell-Bechtel Venture InterGen SD Screening & Gap Analysis Tool

15. A Shell-Bechtel Venture SD Gap Analysis Program Implementation Environmental –GHG Protocol Economic –Economic Impact Assessment Social –Community Needs Assessment Tool

16. A Shell-Bechtel Venture Asset Specific SD Plans Identification of annual SD risks/opportunities Development of prioritized annual SD goals and objectives Goals placed into site specific objectives year- to-year

17. A Shell-Bechtel Venture Overview of InterGen’s Corp SD Program SD Infrastructure: Corporate SD Policy SD Global Standards Alignment with International SD/CSR Indicators Applying SD: SD Screening and Gap Analysis SD Gap Implementation Consistent Project SD Plans

18. A Shell-Bechtel Venture Success Factors of Corporate SD Program Corporate level screening of SD risk/opportunities – Corporate SD Policy Project/Asset level screening of SD risks/opportunities Development of prioritized overall Project SD implementation plan SD performance measurement, benchmarking, continuous improvement Ability to perform at DJ GSI and FTSE 4 Good level

19. A Shell-Bechtel Venture Please do not hesitate to call! InterGen 15 Wayside Road Burlington, Massachusetts 01803 USA Stephen Raab –sraab@intergen.com –Office: (781) 993-3035 –Mobile: (617) 331-8993 Sean Kiernan –skiernan@intergen.com –Office: (781) 993-3037 –Mobile: (617) 799-2263