Smart Solutions for Sustainable Business

Unanimously Approved Consensus Green Building Investment Underwriting Standards

Dan Winters , Evolution Partners reporting...

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Members from the Capital Markets Partnership, overwhelmingly cast affirmative votes in support of the the Green Building Underwriting Standards.  These Standards were approved in four months which is record time and demonstrates the strong market need.

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In conjunction with this voting process, it was agreed that the following activities will be initiated – please let us know if you are interested in participating:

 

§  A Subcommittee will be set up to develop guidance on the use of the Green House Gas Protocol (GHGP) to track climate pollution reductions using the Underwriting Standard, and facilitate building owners monetizing these reductions through carbon or other credits including White Tags, with appropriate market trading institutions. 

 

§  A Subcommittee will be set up on Equivalency Applications pursuant to Section 5.0 of the Standard, along with any normalization activities that the Subcommittee / Full Standards Committee decide to initiate for the purpose of incorporating other approved industry standards into the Green Building Underwriting Standards.

 

Further, we are working with two leading financial institutions on their adoption of the Underwriting Standards, and on using the Standards for new financial product creation including Sustainable Building Securities (SBS) that will be discussed at an October 8, 2008 meeting at TIAA-CREF in NYC.  Please let us know of your interest in adopting them for your investment and/or other activities.

 

Dan Winters, Managing Principal

Evolution Partners

202.997.3922 - p

Dan@EvolutionPartners.com

EvolutionPartners.com

U.S. Conference of Mayors Support Sustainable Investment Initiative

The U.S. Conference of Mayors has signed a joint resolution to "support the Capital Markets Partnership's Sustainable Investment Initiative to generate market investment in high performance green buildings through Sustainable Mortgage Backed Securities that will stimulate the economy and combat climate change." They also, "...encourage additional public-private partnerships to increase market investment in environmental innovation and climate protection."

The resolution was adopted at the 76th Annual Meeting of the U.S. Conference of Mayors held June 20-24, 2008 in Miami. It was sponsored by: Hon. Gavin Newsom, Mayor, City & County of San Francisco; Hon. Richard Daley, Mayor, City of Chicago; Hon. Chuck Reed, Mayor of San Jose; Hon. Manuel A. Diaz, Mayor of Miami and President of the U.S. Conference of Mayors.

The Capital Markets Partnership is made up of a consensus-based group of investors, banks, insurance companies, city & state governments, USGBC, Sustainable Furniture Council, and other environmental  and public consumer groups. The SMaRT Sustainable Standard based on Life Cycle Assessment of products with a third party audit, is the underwriting criteria for the Sustainable Investment Initiative.  

Full copy of the Conference of Mayors Resolution below:

WHEREAS, the Intergovernmental Panel on Climate Change, the 

international community’s respected assembly of scientists, has 

found that human activities are largely responsible for 

increasing concentrations of greenhouse gas pollutants in the 

atmosphere and resulting climate change; and 

WHEREAS, the U.S. Conference of Mayors has taken action to 

combat climate change, including the establishment of the U.S. 

Conference of Mayor’s Climate Protection Agreement, signed by 

over 830 mayors representing over 79 million Americans; and 

WHEREAS, the U.S. building sector is responsible for 48 percent 

of greenhouse gas emissions in the United States, according to 

the U.S. Energy Information Administration; and 

WHEREAS, the U.S. Conference of Mayors and the American 

Institute of Architects have called for immediate energy 

reduction of all new and renovated buildings to one-half the 

national average for that building type, with increased 

reductions of 10 percent every five years so that by the year

2030 all new buildings will be carbon neutral; and  

WHEREAS, federal, state and local governments have adopted green 

building standards for construction of public buildings and many 

jurisdictions are now expanding green building standards to 

commercial and residential buildings in their communities; and  

WHEREAS, public-private partnerships that utilize market 

mechanisms to advance green building activity in the US are 

essential to ensure that environmental building standards can be 

raised while at the same time growing our national economy; and  

WHEREAS, major investment banks, institutional investors and 

governments, led by the City and County of San Francisco and 

JPMorgan Chase, have worked together to advance the Capital 

Markets Partnership’s Sustainable Investment Initiative that 

will generate unprecedented market investment in green buildings 

constructed in the US; and 

WHEREAS, this partnership has completed a peer reviewed report 

called ‘Creating Economic Stimulus While Stopping Climate Credit 

Risk/Irreversibility’ that demonstrates that climate induced 

property damages have caused increases of 100 to 600 percent in 

insurance rates and also reduced availability of coverage, and 

have caused rating agencies to conclude that these developments

have “serious credit implications”; and  

WHEREAS, this report identifies investment products, including 

mortgage-backed securities exclusively for green buildings, that 

can be developed to increase investment in green buildings, 

decrease credit risk in the current investment environment, and 

help to decrease greenhouse gas emissions from the U.S. building 

industry; and 

WHEREAS, the Partnership will be launching the Green Building 

Investment Underwriting Standards and Sustainable Mortgage 

Backed Securities initiatives at the New York Stock Exchange, 

which will generate investments projected to assist in the 

building of over two million green buildings and one million 

certified sustainable products by 2015, add one trillion dollars 

per year to the economy, and stop/prevent imminent, irreversible 

and dangerous climate change,  

 

NOW, THEREFORE, BE IT RESOLVED, that the U.S. Conference of 

Mayors supports the efforts of the Capital Markets Partnership’s 

Sustainable Investment Initiative to generate market investment 

in high performance green buildings through Sustainable Mortgage 

Backed Securities that will stimulate the economy and combat 

climate change, and 

BE IT FURTHER RESOLVED, that the U.S. Conference of Mayors 

encourages additional public-private partnerships to increase 

market investment in environmental innovation and climate 

protection. 

 

We welcome your comments

 

 

Green Building Investment Initiative

The first phase of the Green Building Investment Initiative is being Launched on June 19 at JPMorgan Chase in NYCGreen:   Building Investment Underwriting Consensus Standards.

Any folks with an interest in this meeting should contact Dan Winters at Dan@EvolutionPartners.com. 

Background for interested parties is at this link:  http://mts.sustainableproducts.com/Capital_Markets_Partnership/Underwriting_Standards

The remainder of the Initiative is being launched at an upcoming meeting at the NY Stock Exchange including:

• Resolution of support by the US Conference of Mayors
• Release of the Capital Markets Briefing Paper documenting the due diligence with investment banks and rating agencies that green buildings are more valuable than conventional
• Financial Institution adoption of Underwriting Standards
• New financial products that will be launched
• Sustainable Mortgage Backed Securities

The Initiative is led by Hon Gavin Newsom, San Francisco Mayor, JPMorgan Chase, Citi & Bank of America.  See more at this link:  http://mts.sustainableproducts.com/temp/capital_market.html

SMaRT Sustainability Supporters and Partners

Earth Day April 22, is quickly approaching. For many it will be a starting point for thinking Sustainability. For others, Earth Day 2008 will be more of a re-dedication ceremony for the hard work accomplished since it's inception over 38 years ago.

As the CEO of MTS, I'd like to thank and acknowledge that work and give credit to the consensus group of organizations, businesses, cities, states, and individuals who are helping to end market confusion by supporting the SMaRT Sustainable Standard. It is with sincere gratitude to be able to present such a long list of supporters and contributors.

[FYI upcoming] The Organizational Meeting of Green Building Investment Underwriting Standards will take place at JP Morgan Chase, June 19, 2008, 1 Chase Manhattan Plaza, 28th Floor, 1:00-5:00 PM RSVP: mts@sustainableproducts.com

Capital Markets Partnership - *COMPLETE LIST of 77 Cities, States and Companies at the bottom of this post  MTS Completed Sustainable Mortgage Backed Securities (SMBS) Standards Requirements2.0 specifying how LEED, ENERGY STAR and Climate Neutral Certified Buildings can be aggregated into MBS Pools now with sufficient buildings to meet diversification and quantity needs for MBS pools.  Green Building Investment Underwriting Standards and SMBS are expected to add an estimated $1 trillion/year to the global economy after five years.

U.S. Green Building Council SMaRT has been adopted by USGBC for LEED credit, the dominate standard for Green Building construction. SMaRT Certified Sustainable products accumulate credits which work within the LEED point system. LEED is the leading global green building standard with license agreements with India and Canada.

  AIA 2015 Imperative to stop irreversible dangerous climate change. SMaRT was adopted as an EMERGENCY Standard part of AIA's effort to reduce 60% of conventional energy in buildings by 2015.

Sustainable Furniture Council (SFC) SMaRT Sustainable Product Standards are adopted and incorporated into the SFC 2008 Standard. SFC's and MTS' customer education programs are being delivered by manufacturer sales professionals.  Once a green building is constructed, having sustainable furniture is the next step.

The City of Santa Monica. The City adopted SMaRT for purchasing and is transmitting its purchasing directive to all US Cities to stop irreversible, dangerous Climate Change.

Big Green Purse & In Women We Trust Consumer Engagement Campaign. Both groups will champion to the social media world, any company and product that becomes Certified Sustainable in 2008.

National Education Partnership (below) MTS, SFC, US Department of Commerce, many other market leaders have formed a partnership to commercialize Certified Sustainable Products:

• DMJM + HN
• Perkins+Will
• U.S. Department of Commerce
• Green Mark
• LEED Education Provider
• World Market Center
• Wood Floor Resource Group
• Gensler
• Green Building Alliance
• Home Furnishing Business
• Eco2SMaRT
• Ecolutionary Selling
• GreenGuard
• Renewable Choice Energy
• LCA & Certified Sustainable Products Train the Trainer Programs

SMaRT Certified Products

• Forbo Marmoleum Flooring
• Knoll Life Chair
• Milliken Modular Carpet
• Grant Dawson Collections - SFC Silver Exemplary
• Harden Furniture - SFC Silver Exemplary
• South Cone - SFC Silver Exemplary
• West Bros. Furniture - SFC Silver Exemplary
• Zola Furnishings - SFC Silver Exemplary

Products Registered

• Kahrs Flooring Products
• Knoll Furniture Lines

*Capital Markets Partnership - complete list

• Hon. Gavin Newsom, Mayor City of San Francisco
• Bob Congel, CEO Destiny USA

• ACEEE
• Australian
• Bank of America Securities
• BOMA Foundation
• Canada Green Building Council
• Canada Mortage & Housing Corp.
• Citi
• Citi Property Investors
• City of Chicago
• City of Dallas
• City of Denver
• City of New York
• City of Oakland
• City of Santa Monica
• City of San Francisco
• City of Seattle
• CitiGroup Smith Barney
• Citizens Bank of Canada
• Corenet Global
• Delaware Valley Green Bldg. Council
• Dewey & LeBoeuf
• Durst Development
• EPA ENERGY STAR 
• Ecos Corporation  
• Environmental Bankers Association
• Evolution Partners
• Fannie Mae
• Fireman’s Fund / Allianz
• First Affirmative Financial
• Forbo Flooring
• Gerding Edlin Development
• Goldman Sachs
• Green Building Alliance
• Global Green
• Hoffmann & Associates
• Paul Epstein, MD Harvard Medical School
• Home First Mortgage Corps
• Investor’s Circle
• JPMorgan Chase
• Lafarge
• Malachite LLC
• Milliken
• Mortgage Green
• My Energy Loan
• National Association of Realtors
• New Jersey Green Building Council 
• New York Green Building Council
• NYSERDA
• Philips
• Prohoff & Associates
• Sempra Energy
• Social Investment Forum
• State of California
• State of New Jersey
• Swinerton Builders
• Turner Construction
• UBS Securities
• United Kingdom
• US Green Building Council
• US Treasury Department
• Vancity Bank
• Vinson & Elkins
• Wachovia
• Wells Fargo
• Wendel Rosen Black & Dean
• West Coast Green
• World Green Building Council

A Solution to Greenwashed Loans

Recently, several large banks have instituted a policy whereby they are extending $1,000 closing cost credits on green residential real estate mortgages. They offer these “green loan credits” in their retail banking divisions, but not in their wholesale lending divisions where most loans are sold. Some of these banks no longer even have wholesale lending divisions because of the current mortgage market meltdown in which many banks wrote so many bad loans they had to shut down their wholesale lending operations altogether. While these small closing cost credits of $1,000 are a start, overall this is barely a step in the right direction and would be correctly viewed as green washing by the savvy eco consumer.

As the founder and principal of myEnergyLoan, I am considered a deep green business owner and savvy eco consumer. From my perspective, as somebody who has worked with hundreds of brands in the LOHAS/Cultural Creative space, the closing cost credits being offered directly by these banks are a shameful escape from reality – and a ridiculously manipulative way into the green market. In no uncertain terms, this is green washing at its finest.

Loan credits based on energy efficiency and/or location efficiency.

Conversely, myEnergyLoan efficiency credits are based on actual energy efficiency and/or location efficiency, since both speak to sustainability and a triple bottom line. In fact, from an energy-efficiency standpoint, the greater the efficiency (usually established using a home energy audit), the greater the myEnergyLoan discount; and the less money we make since we absorb the discounts as marketing hits/expenses. It is not a problem for us to earn less now since we can still earn a small profit on each transaction and hope to earn more through volume. While we don’t believe myEnergyLoan provides the ideal incentive mix, yet it is the best available to residential green real estate buyers. We are working extremely hard in conjunction with about 50 other partners called the Capital Markets Partnership to create a Sustainable Mortgage Backed Security (SMBS). The SMBS will provide a safe and profitable outlet for banks to provide incentives for green real estate buyers and rapidly solve several crises all at once.

A simple solution

A simple beginning would be for traditional lenders to provide strong pricing incentives in retail and wholesale lending. A half-point better pricing on green loans is both simple and affordable from a lender’s perspective. It’s also something that is easy to implement throughout mortgage lending sales channels.

A universal overlay program like myEnergyLoan is a great approach because at myEnergyLoan we qualify borrowers as we normally would, thereby providing the borrower with a customized loan program that best meets their needs. Then we qualify the building and extend an actual financial incentive based on level of efficiency gain – more efficient = more incentive. If banks adopted our strategy, then more money would circulate and banks would profit even more! This does not require complete modification of underwriting standards beyond these simple pricing incentives. It is simple enough even for distracted leaders of large banks to grasp and implement the myEnergyLoan concept and we need them to respond quickly. Better pricing is a relatively minor internal underwriting adjustment that provides a disproportionate benefit - in the banks favor - when considering risk factors such as increased security of collateral (since green buildings are more valuable) and reduced default rates (since homes are more affordable to operate if they are energy efficient. Further, early adopters of green building technology are more committed buyers). Further still, the second and third bottom lines are positively impacted without any effort at all. Read that line again.

Triple Bottom Line Banking

An interesting side effect is that banks will have triple bottom line orientation and in most cases not even know it! This could demonstrate to the banks that it is not such a monumental task to re-orient their business since it would happen naturally just by offering a half-point better pricing incentive for green buildings. This is incredibly powerful and most importantly it is a simple way to deal with an incentive program without much perceived sacrifice on the bank’s part, and certainly no actual sacrifice. The downside is that it might just be too simple. No committees are needed and only a few decision makers need to be involved.

As banks get experience with green buildings, they will feel the benefits through increased shareholder value because their investments – the actual mortgages that are secured by the green real estate - will be performing better. We don’t call them high performance buildings because they underperform. Banks like making money so they will crave more of the same since they will do just that. The bank leadership will be heroes internally and externally. Older bankers will actually be their grandchildren’s heroes again!

While traditional bankers won’t likely buy these concepts all at once, these are the desired impacts and they follow logically. Test them. Try them on for size; Bat these ideas around a little with your friends.

This is a course correction

Again, I don’t want to discount any step in the right direction. I especially don’t want to offend traditional bankers at this particular time while they (and the rest of us) are reeling from the market pendulum swinging from guidelines that were way too liberal to guidelines that are now way too conservative.

Think of it like this…It’s very much like slamming on the brakes and correcting course before careening into oncoming traffic. The greatest damage turns out to be that your coffee flies out of the cup holder, cracks your windshield and splatters latte throughout the entire car…what a mess! That was close! All this stuff you have to clean up…inside the cracks, under the seat, in the DVD player, the GPS and even inside the steering wheel. My clothes! You know, I need to just pull over fast, fix the crack in the window before it spreads and have this vehicle detailed because it’s such a mess! It ends up costing $1000 – out of pocket – to fix the crack in the windshield and detail a $28,000 vehicle just the way I like it. That’s expensive. But the car still runs, thankfully nobody died; sure my neck hurts and it was more than just a little inconvenient. We have to fix what`s broken - hopefully without causing even worse problems.

This mortgage market reverberation will stop at some point and we have to ensure that we set up these banking folk for success without totally offending them. The good ‘ol gentle prod is imperative, even if, based on necessity, we need to prod them with high frequency in order to get them to react to the mess they caused. Why? Because we caused it too. They don`t operate in a vacuum. We have an insatiable appetite for “stuff.” Homes are tops on the list of stuff we want. Only now, we can have homes that are better for the environment, better for our health, way more comfortable and with a lower operating cost. Our swank new green buildings can help us achieve energy independence from foreign oil once and for all. And they can help get us off of fossil fuel (our collective cancer) altogether!

Finally, many of the people who need to be “persuaded” about sustainability and the benefits associated with green real estate finance don’t believe global warming exists – at all! They listen to Sean Hannity and Rush Limbaugh and actually believe them! As a result, they have neither a need nor an urgency to change. Many of these people, who do math all day long, look at 2050 carbon standards and think, ya know, with my stress levels I will be dead in 30 years anyway – of natural causes. And here we are, the party poopers, easily being lumped in together as screaming liberals (for the record my leanings are libertarian since my concience and my sanity indicate that our two-party system is broken) literally yelling about 2020 carbon standard urgencies. In case you didn`t know...the damage is almost irreversible!

I know we who seek sustainability are already focused on working early adopters…so let’s do it…let’s work with them, not just on them. We have to realize that early adopters of sustainable business practices often report to and work with the folks whom we correctly view as unconverted high value sustainability targets.

Let’s give them something they can actually swallow - now - and let’s help them enjoy it. I hope this makes sense to you…if not, I might cry myself to sleep tonight; but I`ll hopefully wake up and do more of this work tomorrow until it actually gets done.

For disclosure's sake, I have tried for nearly three years to convince every major bank in America that the green building market makes sense. We are making progress with a few of them, and for now, we`ll keep on doing myEnergyLoan the old fashioned way - by literally working through them.

We welcome your comments and emails

CONTACT: jcole@myenergyloan.com

ABOUT: Jeff Cole

Sustainable Mortgage-Backed Securities - the Cure for the Common Stimulus Package

Sustainable Mortgage-backed Securities (SMBS) are a good idea at the right time-- that's why I have been working with MTS to get support for this path-breaking concept. Let me explain why-- in plain English.

• What are Sustainable Mortgage-backed Securities?
• Why does the market need them now?
• Giving "credit" where credit is due.

What are Sustainable Mortgage-backed Securities?

Simply put, mortgage-backed securities and the other complex financial instruments that have been flooding the news, cut up and redistribute a pool of financial payments to better meet the preferences of investors.  Think of a mortgage-backed security as a bolt of cloth-- the cloth is cut up and made into different garments (trousers, suits, skirts), and the clothing is then sold to consumers with specialized preferences.  The mortgage-backed security achieves something similar by cutting up and redistributing payments from a pool of mortgage loans to investors with different investment needs.  Payments of mortgage interest (which are received first) are fastest and least risky, so investors who want fairly safe investments select these.  The last principal payments on a mortgage loan are the most risky (because they are furthest in the future), so specialized investors with higher risk tolerances buy these.  Other payments, which combine mortgage interest and principal, are sold to investors who want medium risk.

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Why does the market need them now?

So why have subprime mortgage-backed securities been tanking, and why are sustainable mortgage-backed securities a good idea?  The answer is simple. Subprime mortgage-backed securities were backed by poor quality loans, while sustainable mortgage-backed securities would be backed by loans with strong credit quality.  In the subprime market, homebuyers with limited means were given variable rate loans, loans that they could not repay when loan interest rates increased.  The problem was compounded by failing to check the credit profiles of many borrowers.  So many subprime loans had poor credit quality, the loans defaulted, and the owners of the mortgage-backed securities suffered losses.

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Sustainable real estate is very different. Sustainable real estate is a relatively strong investment opportunity.  Sustainable buildings not only reduce the emissions that produce climate change, they are healthier and more comfortable for the occupants.  As a result, sustainable buildings have won strong market acceptance. Case studies and new market information from the leading commercial real estate database show that green buildings often lease and sell faster than conventional buildings and achieve top tier rents and sale prices.  As well, the energy-saving features of sustainable buildings mean lower fuel costs.  Strong rents and sale prices and lower fuel costs mean that green real estate, on average, produces higher cash flows than similar conventional buildings.  As a result, we can expect that mortgages on a pool of sustainable buildings are likely be repaid more readily and represent good investment risks.   In sum, SMBS would be based on good quality collateral, while many subprime loans were not.

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Giving credit where credit is due.

Why launch SMBS now?  The credit markets are in gridlock and stimulus is urgently needed to restart the economy.  It makes sense to relaunch the mortgage-backed securities market with good quality credits like SMBS that can have a positive effect on our environmental challenges.  As well, SMBS-- by offering permanent real estate mortgages-- help to spur job creation in the real estate segment-- including jobs in construction, real estate leasing and sales, and property management.  These are jobs that stay with the real estate and cannot be exported-- and good quality, new jobs are needed urgently.

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We welcome your comments

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CONTACT: Leanne.Tobias@malachitellc.com

ABOUT Leanne Tobias

A Warm and Joyous Greeting to All of Our Friends and Partners

The year 2008 is full of wonderful opportunities for us and our Planet. Public support is complete for action on climate change and sustainability - owners, manufacturers and the capital markets are acting.

We recognize we are threatened by climate change at the verge of a global tipping point and increasing threats to global sustainability.

Fortunately, the solutions are in place, we have traction, and we will solve them thanks to the unique and unprecedented collaboration of many thousands in a consensus process over the last fifteen years whose achievements are summarized below.

The solutions are consensus sustainable product and green building standards for the global capital markets approved through the hard work in a balanced effort of experts in sustainable products, green building, life cycle assessment and capital markets, and environmental groups, designers, purchasers, manufacturers, investment banks, rating agencies, owners, builders, governments, and universities. 

We control the solutions.  We don't need government approval to implement them. 

There is large scale buy in and global support that will greatly:

• Increase corporate profits
• Reduce global pollution
• Improve global health, environment and our quality of life
• Improve energy and national security

Most importantly, we will stop Imminent Irreversible Dangerous Climate Change.

We look forward to celebrating and working with you throughout the year.  I know it will pay off and be highly successful.

Achievements through 2007:

• Sustainable Mortgage Backed Securities (ticker symbol MBS) Initiated With Hon. Mayor Gavin Newsom, San Francisco Mayor, Hon. Bill Lockyer, California Treasurer, Citi, JPMorgan Chase, Swinerton Builders & Pyramid Companies who decided on November 16 to send out Invitations to the Sustainable MBS Launch at the New York Stock Exchange (NYSE) in First Quarter 2008.
• SMaRT Sustainable Product Standard Adopted by:
  • American Institute of Architects
  • US Green Building Council / LEED
  • Wall Street Capital Markets Partnership
  • BigGreenPurse.com. 
  • Sustainable Furniture Council
• SMaRT Education Approved With US Green Building Council. 
• MTS: Achieved US Green Building Council Education Provider Status
  • Certified 200 manufacturer representatives to deliver SMaRT education and 15 Train the Trainers
  • Conducted a successful Sustainable Products Summit in Pittsburgh with the Green Building Alliance and over 200 participants
  • Briefed the Conference Board's Fortune 200 Chief Environmental Officers on SMaRT
  • Conducted a very successful SMaRT December Webinar with Environmental Design & Construction
  • Delivered five SMaRT Education Programs at conferences
• Forbo Flooring, Furniture & Bulletin Board Linoleum & Knoll Life Chair Achieved SMaRT Certifications. 
• Fireman's Fund Entertainment Division Initiated Support for Sustainable MBS and NYSE Meeting.
• Whole Systems Integrated Process (WSIP) ANSI Consensus Standard Approved for buildings and communities. 
  • The Navy shows 9% fewer change orders in using this process and substantial operational savings.
  • Steve Bushnel, Fireman's Fund, appointed WSIP Education Subcommittee Chairman by Bill Reed, CEO, Integrative Design Collaborative and John Boecker, Seven Group, WSIP Chairman and Vice Chairman respectively.
• Eco2SMaRT Education Successfully Launched By Hoffmann & Associates & MTS for real estate community with Berkshire Hathaway brokers.

MTS Accomplishments with Capital Markets Partnership

Summary of MTS accomplishments in working with the Capital Markets Partnership:

• June 26, 2007, Partnership Launch [Download the meeting minutes.]

• Phase 1 Environmental Site Assessment Standard Completed by MTS Leaders & incorporated into Green Mortgage Backed Securities (MBS) taking Phase 1 to 95% market penetration in five years

• S&P Requests Property Condition Assessment (PCA) Standard Which is Completed by MTS leaders & mandates it for CMBS taking PCA market penetration to 95% in three years

• Governor Corzine & Key CEOs Support Green MBS including NJ Treasurer

• MTS Conducts 2005 Green & ENERGY STAR Building Finance Summit with support of Governor Schwarzenegger's Office with over $100B in real estate investment represented including key CMBS originators and secondary market officials, concluding green buildings are more valuable than conventional based on debt & equity sessions and case studies

• MTS Rating Agency Briefings whereby Agencies express interest in Green MBS from investment bankers/originators

• Briefings of Key Elected Officials' Staff with Nexus to Capital Markets:
      o   Chicago Mayor Daley's CFO & Environment & Buildings' Commissioners
      o   NYC Mayor Bloomberg's Business & Sustainability Advisors
      o   US EPA Chief of Staff & Senior Officials
      o   NY Attorney General & Governor Spitzer
      o   NJ Treasurer, Environment Secretary & Senate Officials
      o   Governor Schwarzenegger's business & environmental advisors
      o   UK First Secretary of Energy & Environment
      o   US Treasury Secretary

• Management Team Assembled of attorneys, finance experts & scientists

• Need Identified for Additional Capital Market Incentives for Sustainable Technologies to stimulate economy, reduce energy security risk, and stop irreversible dangerous climate risk with levels necessary for substantial pollution reduction and margin of safety in 5-10 years -
      o   100M certified climate neutral buildings
      o   1600 200 MW green power facilities
      o   100M certified sustainable products
      o   170M clean vehicles
      o   44% increase in mass transit
      o   MTS confirmed nature of risk with NASA & AAAS & other leading global climate scientists

• Capital Markets Have an Affirmative Legal Obligation to Act from a variety of authorities & UK Stern Review and EU projecting global collapse without imminent & substantial action. First time a leading G8 power has made such a proclamation which completed substantial peer review and is based on global scientific consensus of dangerous risks.

• MTS Green Building Value Rating System© completed with Wells Fargo & Evolution Partners

• MTS & CitiGroup Request to S&P for Green MBS based on Value Rating System

• MTS Complete Investor & Lender Surveys at Request of S&P documenting strong Green MBS market demand for first real estate option for $2 trillion social investment market

• MTS / Evolution Partners Green MBS Standards' Requirements© 1.0 completed & sent to originators

• Citi & S&P Decision Made to Involve Additional Orginators

• MTS Conducts Green Building Investment Program announcing at Greenbuild first private sector green building incentive by Fireman's Fund with coverage discount & commitment to build to certified green after loss

• MTS Involves Wells Fargo & Wachovia With Citi

• MTS Approves Two Key National EMERGENCY Consensus Standards substantially reducing global climate change pollution:
      o   Climate Neutral Building Certification © with Citigroup assistance
      o   SMART© Sustainable Building Product Standard
      o   Part of 2015 Imperative of American Institute of Architects & US & European Mayors to Stop Irreversible, Dangerous Climate Change

• MTS / Evolution Partners Green MBS Standards' Requirements© 2.0 With Environmental Screen to initiate MBS pools and compensate for emerging numbers of certified green buildings

• MTS Briefs Investors on Investment Value of Certified Sustainable Product Manufacturers

Click here to download the Word version of the Capital Markets Partnership Summary.