Managing Climate Change Risks

2014-10-29

Anette Andersson

SEB Wealth Management

SEB - A Nordic bank with a global reach

SEB Investment Management 2014-10-23 2

1

2

3

4

2014-10-23 SEB Investment Management 3

Responsible and active ownership

We are convinced that companies that actively manage the

environmental, social and governance aspects of their business are better

positioned to reduce risk and seize opportunities.

As a large institutional investor, SEB seeks to engage with holdings to

pursue long-term value creation.

2014-10-23 SEB Investment Management 4

Anette Andersson –

Fund Manager and ESG Investment Specialist

• Worked in the financial industry since 1990

• Fund Manager for ESG-funds since 2006

Ethos Aktiefond

• Was assessed for Climate Impact 2013

• Fossil-free* since 2008

SEB Etisk Sverigefond:

• Was assessed for climate impact october 2014

• Fossil-free since 2008*

• Best Equity Fund Sweden 3 Years – Lipper Fund Awards Europe 2009 & 2010

• Citywire AA rating 2009&2010,

• 2:a in Thomson Reuters yearly ranking of the best Fund Managers 2008

• Investment Management has approx EUR 158 billion under managment

SEB Investment Management 5

Why?

New EU Climate Agreement

Portfolio Decarbonization Portfolio/Montreal Carbon Pledge

Climate change is effecting companies financially

Client-driven (mainly insitutional)

Stranded Assets

2014-10-23 SEB Investment Management 6

How does this affect my daily work?

Valuation – company specific

80% of the emissions stems from usage

By 2020 50% reduction of Carbon Emissions

Reduction achived by 2014 – 20%

– 29% reduction in energy equals savings of 3-4%/year

2014-10-23 SEB Investment Management 7

Stranded Assets and Climate Change

Very real threats with financial impact

”The worst thing is to do nothing”: Mats Andersson, CEO, AP4

Preparedness critical for companies future earnings

2014-10-23 SEB Investment Management 8

Outcome from the report

Engagement-list

Emissions are relevant to all sectors

Possible to have a ”Best-in-Class”- or ”Worst-in-Class” approach

2014-10-23 SEB Investment Management 9

Communication

2014-10-23 SEB Investment Management 10

Trends…

Clients Reputational Risk

SEB Reputational Risk

Fossile-free

Carbon-cautious

Portfolio Decarbinazation Coalition

Montreal Carbon Pledge

2014-10-23 SEB Investment Management 11

Performance or sustainability?

Fund YTD 1 year 3 years 5 years

Ethos Aktiefond 9,2 14,1 80,1 75,8

SEB Etisk Sverigefond 12,1 15,2 76,6 68,4

Average Swedish equity-funds* 9,0 13,9 76,4 75,3

DNB Sverige Koncis 6,0 10,0 61,9 50,3

DNB Sverigefond 8,0 12,3 67,8 65,7

Nordea Swedish Stars 7,9 12,1 75,3 71,6

Swedbank/Robur Ethica 7,6 11,0 72,0 64,6

Source: Morningstar September 2014

* Average of 15 mainstream equity.funds

2014-10-23 12

Disclaimer

This material is provided at your request for informational purposes only, and it is intended for use by the designated recipient only. It is not an offer or solicitation to buy or sell any securities.

Information and opinions presented in this material have been obtained or derived from sources believed by SEB to be reliable, but SEB makes no representation as to their accuracy or completeness. SEB accepts no liability whatsoever for any loss, damage or claim arising from the use of this material. This material is directed exclusively to institutional investors or existing investors who are experienced investors as defined by the rules of the relevant Financial Services Authority or are otherwise eligible under these rules. It is not intended for private customers and such persons should not rely on this material.

Opinions expressed in the material are current opinions as of the date appearing in this material only and SEB has no obligation to provide any updates or changes. No part of this material may, without SEB’s prior written consent, be (i) copied, photocopied or duplicated in any form, by any means, or (ii) disclosed or otherwise distributed to any person that is not an employee, officer, director, or duly authorised agent of the recipient.

Prospective investors should inform themselves as to any applicable legal requirements and taxation and exchange control regulations in the countries of their citizenship, residence or domicile which might be relevant.

Past performance is not indicative of future results, which may vary. The value of investments and the income derived from investments can go down as well as up. Future returns are not guaranteed, and a loss of principal may occur. References to indices, benchmarks or other measures of relative market performance over a specified period of time are provided for your information only and do not imply that the portfolio will achieve similar results. The index composition may not reflect the manner in which a portfolio is constructed. While an adviser seeks to design a portfolio which reflects appropriate risk and return features, portfolio characteristics may deviate from those of the benchmark.

More information is provided in the prospectus for the fund(s) mentioned in the material. Prospective investors should inform themselves as to the contents of the simplified prospectus and information brochure, which are available at www.seb.se.

2014-10-23 13

Investment Philosophy

It is my firm belief that companies that work in a sustainable way also are financially well

managed.

These companies avoid future indictment, prosecution or costly adjustments to new rules

and regulations. Sustainability is about using resources such as water, energy and

material in an effective way to minimize the waste.

Corporate Sustainability is a business approach that creates long-term shareholder

value by embracing opportunities and managing risks deriving from economic,

environmental and social developments.

2014-10-23 14