1. Adapting to climate change risk – banking National Australia Bank Rachel O’Neill Carbon Solutions Group, Institutional Banking November 2007 Ai Group Climate Change Forum

2. 2 What are the risks…. ●Physical – Changing climatic patterns – Sea level rise – Increased storm and drought severity ●Carbon Price – Carbon cost on business operations – Supply chain pass through – Increase in energy costs ●Regulatory – Increased reporting requirements – Product and appliance standards – GHG emissions restrictions

3. 3 Managing the risks (and opportunities)… nabCapital perspective Carbon Solutions Group ●Formed in 2006 as a specialist group to identify the risks and opportunities within the evolving carbon finance market. ●Working with different parts of the Bank and our customers to develop appropriate products and services to meet the needs of our clients. ●Experience in energy and utilities financing, credit risk assessment, and financial markets. ●Current focus is on the impacts of climate change and emissions trading for large corporates and SME’s.

4. 4 Managing the risks (and opportunities)… nabCapital perspective ●Understanding our clients and assisting them manage their risks ●Being involved in the development of the Aust carbon market ●Dedicated resources to ensure a co-ordinated understanding and response ●New products ●Raising awareness of climate change risks and opportunities to our Bankers ●Developing carbon price risk management capability ●Financing renewable energy

5. 5 Financing and Carbon Risk Management ●nabCapital is an experienced lender to the energy infrastructure sector – including renewable/sustainable energy. Examples include: – UK landfill gas projects – UK biomass & wind project – Australian wind farm projects – Australian mix of land fill gas and coal seam methane ●Carbon Risk Management – Capability to assist our clients manage their carbon risk – Will become increasingly important in Australia

6. 6 National Australia Bank & Climate Change – Conclusion Carbon Neutral NAB 2010 Carbon Neutral NAB Intranet climatechange @nab.com.au mailbox Go Green Calculator Origin Greenhouse Dynamics Team Measure & Report our carbon footprint Real Estate Energy Audits & Design Standards Travel Management & Video Conferencing Fleet vehicle replacement & hybrid cars Carbon Offsets & Trading CSR Reporting Verification & Audit Product & Service Offerings Engaging Our People Getting to Carbon Neutral Reporting and Validation Green Services Diagram based on framework developed by EDS Australia & NZ

7. 7 Further information … Carbon Solutions Group Rachel O’Neill Alison Read Director & Head of Carbon Solutions Group Associate, Carbon Solutions Group Institutional Banking, nabCapital Ph: 03 8641 4486 Ph: 03 8641 5369 Email: Rachel.M.O’Neill@nab.com.au Email: Alison.C.Read@nab.com.au

8. 8 Disclaimer While every care has been taken in the preparation of this document, National Australia Bank Limited makes no representation or warranty as to the accuracy or completeness of any statement in it. The document does not purport to contain all of the information that clients or prospective investors may require or should obtain. To the maximum extent permitted by law, National Australia Bank Limited expressly disclaims all or any liability which may arise out of the provision to or use by any person of the information contained in this presentation. This presentation has been prepared for the purpose of providing information only without taking account of any person’s objectives, financial situation or needs. The information in this presentation is confidential and should not be disclosed to any other person without the prior consent of National Australia Bank