“We unlock the value of great ideas.”

June 2013

Building businesses for a 21st century economy that are...

Sustainable.Equitable.Profitable.

535 Albany Street, Boston, Massachusetts 02118 U.S.A. t. 617 266 0965

Date: 11.24.10 | Client: NISE | Project: Type Treatment Option: Treatment 2

NATIONALINSTITUTE FOR ASUSTAINABLEECONOMY

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Our world economy is changing rapidly.  Businesses will need to change with it.But how?  Where are the new opportunities for growth and prosperity in our changing economy?  NISE! believes that on the cutting edge of the new 21st century economy there will be great business opportunities in addressing needs or solving problems arising from the values and rules we use to produce, price and sell goods and services in our current 20th century economy.  The source of the opportunities will be increasing conflicts between the values of the old economy and two life forces with which they continuously interact:

■ Human Life and Standard of LivingBuilding and maintaining safe and healthy environments for families and communities is among our nations's highest priorities.  Yet, increasingly the values driving our business practices threaten the safety, health or well-being of families and communities.  These conflicts raise issues of economic justice —

what is fair, who should bear what costs and who should profit.

■ Ecological LifeMaintaining a balance between organisms in the natural world and their surroundings is crucial for the health of our planet and human life as well.  However, the rapid encroachment on the natural habitats by our dominant 20th century business practices threatens to drastically alter or destroy this balance. These conflicts raise issues of ecological justice — again what is fair to other forms of life and the habitats that sustain them.

These two conflicts arising from 20th century business practices and the harm they inflict on humanity and the eco-system are demanding our attention and solutions

— solutions that are equitable from the perspective of their impact on human and social life, and

balanced from the perspective of ecological life.  The demand for

these solutions represents enormous business opportunities that will be drivers for our emerging 21st

century economy.

Re-Imagining Business

A New Approach for a Sustainable Economy

Human/Social Processes

EcologicalProcesses

Ecological Justice

Economic Processes

SOLUTION

Equitable & Ecologically Sustainable Economy Environmental

Justice

Economic Justice

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Our mission? Bringing to market new business solutions for environmental and social problems that are…Sustainable. Equitable. Profitable.We are a mission driven, private sector business channel for delivering to market valued products and services re-imagined through the alignment of values driven resources, talent and capital. The cutting edge business opportunities on which we capitalize are transformed into business solutions that are also agents for change.

Our commitment to change that is sustainable, equitable and profitable is supported by our ability to unlock the value of great ideas. We do so by developing: 1) transformative business solutions for our clients, 2) catalytic collaborations with our partners and 3) innovative products and services for our own account.

SOLUTIONSFor businesses that want sustainable, equitable and profitable business solutions, we offer four consulting practices that can be a catalyst for their development. Our NISE! SOLUTIONS cover a wide range of issues and challenges confronted by businesses whether they are early stage or mature.

■ Innovating Business Opportunities

■ Transitioning Control, Ownership and Governance

■ Engaging Disparate Stakeholders

■ Investing for Impact

COLLABORATIONSWe believe that achieving our mission depends on working with others of a like mind to accelerate the rate at which sustainable businesses grow and prosper. We also believe that accelerating this process will require re-thinking leadership models, realigning networks to be more mutually supportive and developing new platforms that facilitate and leverage collaborative efforts. So we are actively seeking NISE! COLLABORATIONS with businesses, academia and government in three areas:

■ Enhancing Leadership

■ Connecting Networks

■ Leveraging Platforms

INNOVATIONSWe believe in leading by example, so NISE! has initiated the development and implementation of its own innovative products and services. Our focus has been on developing NISE! INNOVATIONS in the areas of energy conservation and finance. Our three initiatives are:

■ Unlocking the Value of Conservation for Consumers

■ Addressing the Human Factor in Energy Conservation

■ Creating New Impact Investment Instruments

Our Mission

A Catalyst for Sustainable Businesses

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Is your world changing fast? Change with it. NISE! can show you how.NISE! Solutions are generated by re-imagining business problems and opportunities from an entrepreneurial perspective. We begin with a clean sheet of paper, as if we are starting a new business. But we don’t start by building a business plan; we start by building a series of experiments. Ones that will test in the real world your assumptions about what will work and what won’t. Ones that you can change quickly to respond to how the market responds to you. Ones that build a strong business platform for re-inventing your business before the changing world changes it for you.

Solution PracticesNISE! has four areas of practice that cover a wide range of business issues and challenges. In general, they address how to innovate, engage, transition and invest in ways that are sustainable, equitable and profitable.

Within each practice, we will work with you to develop and implement

solutions tailor-made to your business and its needs.

Innovating Business OpportunitiesWhether yours is a start-up, emerging or

mature business, NISE! can help drive innovation throughout your operations and into your products and services.

These innovations will address such key questions as:

■ How are my markets changing and where are my emerging market opportunities?

■ Is my value proposition compelling enough to attract and profitably serve a substantial and growing market?

■ What is the most effective way to deliver my value proposition to my customers?

■ What are the organizational and cultural changes that need to occur to prosper today and tomorrow?

The process of developing innovations can be limited to a specific area of your business or be more comprehensive. It may include leading retreats, developing financial models, conducting customer surveys and evaluating your management team. We do what it takes for you to arrive at the solution you need.

Engaging Disparate StakeholdersMore and more, good business means having

great collaborations between stakeholder groups unaccustomed to working together. Often they represent different

business, social, economic or political interests, yet have much to gain from finding

SOLUTIONS

Sustainable. Equitable. Profitable.

Innovate

Engage

Transition

Innovate

Invest

Engage

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common ground. NISE! can work with you to successfully bridge the gaps between such groups and create effective win-win collaborations. The bridges NISE! helps to build can address questions such as:

■ What do stakeholders value and what are their issues and needs?

■ What is the common ground that creates benefits for all?

■ How do we engage stakeholders to achieve these benefits?

Transitioning Control, Ownership and Governance

Often the time comes more quickly than expected that business owners and senior

executives must face transitions raising complex issues of control, ownership

and governance. Whether they result from raising capital from investors, creating

ownership opportunities for valued employees, a death among owners or succession planning, NISE! can help you to successfully navigate and negotiate a pathway to a workable solution. We help you address such difficult questions as:

■ Is now the time to begin a transition?

■ What do I want the business to be after the transition?

■ How do I maintain my business’s values and culture during and after the transition?

■ How do I incentivize, protect or engage key employees during the process?

Investing for ImpactAll investors want a market rate of return on

their investments. Yet investments can do more than generate a profit. Skillfully designed and placed, investments can

produce profits while contributing to an ecologically sustainable environment, an

equitable allocation of resources and opportunities, and other objectives that strengthen the fabric of our society and resilience of our economy. Whether you are investing working capital reserves, pension funds, family wealth or institutional investment funds, NISE! can advise you on investing for impact by helping you answer critical questions such as:

■ Given my business and investment objectives, what types of impact investing can I pursue?

■ What are the existing options available for making impact investments?

■ How can I create my own portfolio of impact investments?

Solution ImplementationWithin each of our practice areas, NISE! will work with you to develop solutions and an Organizational Change Agenda that provides a pathway for implementing the newly developed solutions within your organization. We can also offer you the option of engaging NISE! to assist in or drive the implementation process on a turnkey basis. Key professionals would be placed with your organization on an interim basis to accomplish the objectives critical to successfully launching your implementation process. The role of these professionals could range from skilled expert in a functional area, to trusted advisor to the CEO, to acting CEO. Whatever works bests to build a firm platform for your future success. A platform for new solutions that are sustainable, equitable and profitable.

Transition

Invest

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The tipping point is nearing. Be ahead of the curve. Collaborate with NISE!Our economy is changing -- rapidly. Some don’t like it, but are adapting to it. We love change and embrace it! For us it means new opportunities and another chance to do business better. How? By being more sustainable, equitable and profitable.

But to do business better will require:

■ New ways of thinking about leadership and how we work with others.

■ Re-thinking our connections to networks and re-aligning them in more productive ways.

■ Developing new platforms that facilitate and leverage collaboration.

NISE! Collaborations is our effort to do business better while unlocking the value of great ideas through collaborations with other businesses, academia and government.

Enhancing LeadershipOur goal is to work with others to promote leadership training and executive education that provides a firm foundation for leading organizations in ways that are sustainable, equitable and profitable. Options we are exploring include collaborations with existing executive education programs, partnering in the development of an organization of leadership peer circles and executive coaching.

Connecting NetworksAided by social media, and driven by shifting values, changing demographics and emerging markets,

networks are constantly forming, growing and dissipating. In the process, new networks are challenging the alignment of existing ones while often remaining disconnected themselves.

Our goal is to collaborate with others in business, academia and government to identify those networks that can contribute to sustainable, equitable and profitable businesses and connect them in ways that reveal and optimize their common ground. Pursing this goal may involve scaling some networks and consolidating others, but the intended result is an ecosystem of networks that is a driving force for businesses doing business better.

Leveraging PlatformsCreating an ecosystem of networks will require easy ways to communicate and cooperate. It will also require sharing resources to reduce costs and facilitate growth.

Our goal is to work with others to leverage the impact of networks by creating platforms to do just that. Options would include developing a “big data” platform, a “back office” platform and a “crowd-funding” platform that would be shared by the network ecosystem.

COLLABORATIONS

Lead. Connect. Leverage.

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We believe in leading by example. So NISE! is innovating too.NISE! is in the business of:

■ Re-imagining business solutions that are sustainable, equitable and profitable

■ Re-inventing business models to implement them.

■ Reaping the value it creates.

We want to lead by example, so NISE! is innovating business opportunities in the areas of energy efficiency and finance.

Unlocking the Value of Conservation for ConsumersNISE! has been in the forefront of developing a residential energy conservation system that would accelerate the reduced use of energy in the residential sector --

currently the slowest to move toward greater conservation. The system under development

by NISE! is specifically designed to help consumers reduce energy consumption by

15-20%, achieve a similar savings on their energy bill and have the

opportunity to earn money as part of a consumer driven virtual utility.

NISE! is also developing a financing mechanism that will defer cash payments for the system, thereby reducing the payback period to nearly zero.

Based on this new business model, NISE! was the recipient of the Massachusetts Clean Energy Center Innovation Grant for Energy Efficiency in Residential Homes.

Addressing the Human Factor in Energy ConservationNISE! is also innovating energy efficiency strategies that incorporate the human occupants of buildings as active rather than passive agents of change. As a project of the Massachusetts Division of Capital Asset Management and Maintenance (DCAMM), NISE! designed and implemented a first-in-the-nation energy conservation pilot that integrated the use of information technology and behavior change strategies to extend the impact of building centric conservation programs.

Known as “START”, the pilot was conducted on the Dartmouth campus of the University of Massachusetts and demonstrated that the NISE! methodology -- combining real-time, usage data distributed to consumers; a peer driven engagement organization; and a rewards program -- could significantly reduce electricity usage. NISE! is using this experience to develop product and service modules for multi-residential complexes and large office tenants.

Creating New Impact Investing InstrumentsIn the financial area, NISE! is developing an alternative financing model for the use of Social Impact Bonds (SIB) which are currently intended to create a new source of financing for the non-profit sector. The NISE! model is designed to mainstream SIBs by making them more attractive to traditional investors and targeting their use by the private sector.

INNOVATIONS

Re-Imagine. Re-Invent. Reap Value.

SIB

Save.Earn.

Empower.

Want to Learn More?To learn more about NISE! and its services, contact its President and CEO, Edward Dugger III.

eduggeriii@usnise.com.

www.linkedin.com/in/edwardduggeriii

Webwww.usnise.comTwitterhttp://twitter.com/usniseFacebookhttp://facebook.com/NISE.US

Main Office 40-A Orchardhill RoadBoston, MA 02130617-500-6651