Environmental

MBIA currently occupies 65,000 square feet of leased commercial office space at its headquarters location at 1 Manhattanville Road in Purchase, NY. The company selected the Energy Star certified building in 2013 and took the opportunity to build out the new space using the latest in environmentally-friendly and energy efficient technology. The space features LED lighting, motion sensor switches to reduce electric usage in unoccupied rooms, energy efficient IT equipment and extensive video conferencing capabilities to reduce unnecessary travel. In May of 2024, the Company notified its landlord of the Purchase, New York lease that it is exercising its right to terminate the lease in August of 2025 ("Termination Date").

The company has encouraged a move toward a paperless office by removing personal printers from virtually all offices and workstations and requiring the usage of centrally located high-efficiency printer/copiers. The default setting for the printer/copiers is for two-sided printing/copying. Recycled paper is used in all printers and copiers. Materials for the company's Board of Directors are distributed electronically and reviewed on company-provided tablets. The company has invested heavily in imaging technology and has imaged a substantial portion of its corporate records, allowing users to easily access them without the need for making hard-copy duplicates.

As a result of MBIA's implementation of the SEC's Notice and Access program and greater investor acceptance of electronic disclosure, the company has significantly reduced the number of printed disclosures it produces each year.

Recycling is required throughout MBIA's office space. Paper recycling bins are located in all offices, workstations, conference rooms and printing/copying stations. Can and bottle recycling bins are located in each kitchen area. Water and seltzer dispensers were installed to reduce the purchase of drinks in cans and bottles. The company recycles all toner cartridges and batteries, and also uses e-waste recycling vendors for the disposal of broken or retired IT equipment.

As part of its Enterprise Risk Management framework, MBIA has identified climate change as an emerging risk to its insured portfolio of public finance credits. While the company's insurance subsidiaries are no longer writing new business and do not need to consider climate risk in the context of underwriting decisions, its existing insured portfolios will take decades to run off and will remain exposed to the impacts of climate change.

The significant majority of MBIA's outstanding insured gross par exposure is to U.S. municipalities, which are subject to both direct and indirect effects of climate change including an increasing risk to severe weather events, flooding and droughts. The direct effects include costs to repair storm damage and flooding and to mitigate the impact of future events. Indirect impacts include potential deterioration of tax bases as populations move away from areas prone to severe weather, flooding, drought, wild fires, etc.

The impact of climate change on MBIA's insured portfolio is likely to manifest over a long period of time. In most cases, these are not new risks but the increasing frequency and severity of such events are turning what had been extremely remote events into more frequent events. It is unclear how efforts to reduce carbon emissions will influence to the pace and magnitude of climate change. The expense to municipalities of mitigating climate risk may result in financial strain depending upon the nature of the risk being mitigated and the availability of state and/or federal funding.

In response to these threats, MBIA's risk management and insured portfolio management groups have identified the sectors of the insured portfolio that are particularly vulnerable to the impacts of climate change and factor these risks into internal ratings, frequency of review and potential remedial action. Sectors at increased risk to climate-driven events include water and sewer systems, single site/revenue generating assets, bridge and road infrastructure, electric utilities and housing.