Carbon Report SEB Focus Fund

Report created on: 2021-04-29

The carbon footprint provides a historic snapshot of the emissions from the equity holdings of the fund. The calculations are not comprehensive and indirect emissions, e.g. from suppliers, are based on reported data or estimates of emissions. The metric says nothing about how the portfolio contributes to a low-carbon society. For further information about the metric, see www.sebgroup.com.

Contents Executive summary...... 2 Sector weighting and relative carbon footprint ...... 3 Attribution analysis ...... 4 Scope 3 analysis ...... 5 Portfolio company analysis ...... 6 Appendix ...... 7 Carbon Report SEB Norway Focus Fund Report created on: 2021-04-29 | Holdings as of: 2021-03-31 | Benchmark: Oslobörsens fondindex (return Index)

Currency: NOK | Industry classification: GICS | Company breakdown metrics: Weighted average carbon intensity (tCO2e / NOK 1,000 revenue) Value: 392'179'245.5 NOK | Fund Management Company: SEB Investment Management AB Executive summary Carbon emissions shows the total amount of carbon dioxide and other greenhouse gases emitted each year by the companies included in the fund and is measured in tons of carbon dioxide equivalents (tCO2e). Carbon emissions include scope 1 and 2. Scope 1 emissions are directly generated by the company's operations, whereas indirect Scope 2 emissions are related to the company's energy consumption. Relative carbon footprint measures yearly carbon footprint in correlation to a certain sum invested in the fund. It enables comparisons with a benchmark between multiple portfolios, over time and regardless of portfolio size. Carbon intensity measures yearly carbon emissions on a per revenue basis and is ultimately a measure of carbon efficiency. Weighted average carbon intensity is a measure of the fund’s exposure to carbon intensive firms. Total carbon Relative carbon footprint Weighted average Disclosing titles by Disclosing titles emissions carbon intensity no. of companies by weight (AUM)

(tCO2e) (kg CO2e/NOK 1'000 invested) (kg CO2e/NOK 1'000 revenue) Portfolio 6'232.7 15.6 16.7 85.7% 92.5% Benchmark 10'465.6 26.1 25.3 88.2% 96.0% Portfolio vs. benchmark 59.6% 59.6% 65.8%

Benchmark comparison Sector comparison The portfolio's weighted average carbon intensity is 34.2% The sector Materials (per GICS classification) in the portfolio lower than the benchmark. make up 10.0% of the weight vs. 85.7% of the contribution to 120 emissions. 100 100.0 100.0 Sector weight Contribution to emissions 80 10.0% 14.3% 60 65.8 59.6 Materials 40 All other Sectors 20

0 Total carbon emissions Weighted average carbon intensity 85.7% Portfolio Benchmark 90.0%

5 smallest contributors to the emissions of the fund: Company Carbon emissions % of total Relative carbon footprint Country Sector

(tCO2e) (kg CO2e/NOK1'000 invested)

Storebrand 0.0 0.0% 0.0 Norway Financials Nor Sparebank 0.2 0.0% 0.0 Norway Financials DnB NOR 0.3 0.0% 0.0 Norway Financials Sparebank 1 Oestlandet 0.3 0.0% 0.0 Norway Financials Sampo 0.4 0.0% 0.0 Finland Financials

5 largest contributors to the emissions of the fund: Company Carbon emissions % of total Relative carbon footprint Country Sector

(tCO2e) (kg CO2e/NOK 1'000 invested)

Yara International 3'005.5 48.2% 155.8 Norway Materials 2'334.2 37.5% 113.4 Norway Materials 186.3 3.0% 5.8 Norway Communication Services Austevoll Seafood 82.8 1.3% 4.4 Norway Consumer Staples Bakkafrost 67.3 1.1% 2.2 Consumer Staples

The holdings in the fund are associated with a global warming of 2.5°C

Temperature analysis is based on IEA SDS scenarios, projected future emissions and science based targets.

Carbon Report - SEB Norway Focus Fund 2 Sector weighting and relative carbon footprint

Weight Relative carbon footprint (kg CO e /NOK 1'000 invested) 2 Portfolio vs. Benchmark Sector Portfolio Benchmark Portfolio Benchmark

Communication Services 8.0% 7.2% 5.8 5.8 100.0% Consumer Discretionary 4.8% 5.7% 1.2 0.9 132.5% Consumer Staples 12.4% 13.2% 3.0 2.0 151.4% Energy 0.0% 14.7% 0.0 27.9 0.0% Financials 40.3% 18.7% 0.1 0.0 305.3% Health Care 0.0% 1.1% 0.0 0.2 0.0% Industrials 11.1% 15.8% 0.9 37.3 2.4% Information Technology 5.9% 7.8% 0.3 1.9 13.7% Materials 10.0% 11.3% 133.9 125.5 106.7% Real Estate 0.0% 1.7% 0.0 0.1 0.0% Utilities 7.4% 2.8% 0.0 0.1 31.4%

Relative carbon footprint (kg CO2e / NOK 1'000 invested) 150

100

50

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Energy Utilities

Financials Materials Industrials Health Care Real Estate

Consumer Staples

Information Technology Communication Services Consumer Discretionary Portfolio Benchmark

Carbon Report - SEB Norway Focus Fund 3 Attribution analysis

There are two principal reasons explaining why the carbon exposure of Explanation: The outperformance of the portfolio is based on the effect of the portfolio may differ from the benchmark: Sector allocation and Stock over-/underweighting certain sectors and selecting more/less carbon selection. intensive stocks within each sector for each of the underlying holdings. A positive number indicates that the effect increased the greenhouse gas

Sector allocation decisions will cause the carbon intensity of the portfolio emission (in tons of CO2e) and a negative number indicates a decreasing to diverge from the benchmark where some sectors are more carbon effect. In this case, the sector weighting of SEB Norway Focus Fund saved intensive than others. If the portfolio is overweight in carbon intensive 1'378.5 (tCO2e), while the stock selection saved 1'902.6 tCO2e versus sectors the portfolio is likely to be more carbon intensive than the the benchmark. This explains a 13.2% outperformance through sector benchmark. weighting and 18.2% carbon outperformance by stock picking.

However, if the stocks within a carbon intensive sector are the most carbon efficient companies, it is possible that the portfolio may still have a Total emissions lower carbon footprint than the benchmark. Such an impact is explained (tCO2e) by stock selection decisions. Portfolio 6'232.7 Benchmark 10'465.6

Portfolio carbon out/underperformance (tCO2e) 4'232.9 Portfolio carbon out/underperformance (%) 40.4%

Sector allocation Stock selection Sector allocation to Sector allocation to Stock selection to Stock selection to Sector out/underperformance out/underperformance out/underperformance out/underperformance (tCO2e) (%) (tCO2e) (%) Communication Services 20.7 0.2% 0.0 0.0% Consumer Discretionary -3.4 -0.0% 6.7 0.1% Consumer Staples -6.3 -0.1% 54.2 0.5% Financials 3.5 0.0% 6.2 0.1% Industrials -691.3 -6.6% -2'297.2 -21.9% Information Technology -14.6 -0.1% -51.1 -0.5% Materials -689.7 -6.6% 379.6 3.6% Utilities 2.7 0.0% -1.1 -0.0% Total -1'378.5 -13.2% -1'902.6 -18.2% Interaction effect: -951.8 -9.1%

Attribution analysis graph

50%

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-50%

Utilities

Financials Materials Industrials

Consumer Staples

Information Technology Communication Services Consumer Discretionary

Sector allocation Stock selection Total

Carbon Report - SEB Norway Focus Fund 4 Scope 3 analysis

The graph below compares the total emissions (including scope 1, scope2 Scope 2 emissions are indirect greenhouse gas emissions from sources and scope 3) between the portfolio and benchmark. that are owned or controlled by the company. Includes emissions that result from the generation of electricity, heat or steam purchased by the Scope 1 emissions are direct greenhouse gas emissions from sources company from a utility provider. that are owned or controlled by the company. Includes fuel combustion on site such as gas boilers, fleet vehicles and air-conditioning leaks. Scope 3 emissions are all indirect emissions (not included in scope 2) that occur in the value chain of the company, including both upstream and downstream emissions.

Total emissions comparison (tCO2e) 80000

60000

40000

20000

0 Portfolio Benchmark

Scope 3 10'140.0 44'087.1

Scope 1&2 6'232.7 10'465.6

Carbon Report - SEB Norway Focus Fund 5 Portfolio company analysis

The tables below show the 10 largest greenhouse gas contributors and In the Analysis section, the Benchmark emissions are stated and the the 10 largest holdings, respectively, of SEB Norway Focus Fund. Average sector emissions allow a comparison of the greenhouse gas intensity of a company against its respective sector, i.e. the amount of The carbon data section explains your carbon emissions, i.e. the amount greenhouse gas emissions that an investment of the same size would of greenhouse gases that the portfolio finances from the company’s have financed, would it have been invested in the overall sector rather overall emissions, relative to company ownership. You can further see than the specific company. what % of the overall portfolio greenhouse gas emissions each company accounts for and the section also includes weighted average carbon The effect on the portfolio can be found under Portfolio contribution. intensity. This is a measurement of how much a specific holding raises or reduces the carbon footprint of the portfolio. A positive number indicates that the company reduced the carbon footprint of the portfolio, whilst a negative number indicates that the company increased the carbon footprint of the portfolio.

Summary of 10 largest greenhouse gas contributors

Weight Carbon data Analysis

Weighted average Carbon Benchmark Av. sector Portfolio % of carbon intensity (kg Company GICS Industry Portfolio Benchmark emissions emissions emissions contribution total CO2e/NOK 1'000 (tCO2e) (tCO2e) (tCO2e) (tCO2e) revenue) Chemicals 4.8% 4.6% 48.2% 8.1 3'005.5 2'891.8 2'623.9 -2'842.2 Norsk Hydro Unknown 5.1% 4.6% 37.5% 4.5 2'334.2 2'099.0 387.4 -2'122.9 Telenor Unknown 8.0% 7.2% 3.0% 0.9 186.3 165.6 606.4 342.9 Austevoll Seafood Food Products 4.7% 0.0% 1.3% 0.2 82.8 0.0 37.4 219.2 Bakkafrost Food Products 7.7% 2.5% 1.1% 1.2 67.3 22.2 61.8 449.3 Orkla Unknown 4.4% 4.5% 0.5% 0.1 28.2 28.5 335.0 260.5 EUROPRIS ASA Multiline Retail 4.8% 0.6% 0.4% 0.1 22.9 3.1 22.9 289.4 Commercial Services Systems 6.7% 3.3% 0.2% 0.2 11.3 5.6 11.3 435.0 & Supplies Sparebank 1 Nord-Norge Banks 4.3% 0.0% 0.2% 0.0 10.0 0.0 0.2 267.4 Bouvet IT Services 3.3% 0.4% 0.1% 0.1 6.1 0.7 4.8 205.5

Summary of the portfolio's 10 largest holdings

Weight Carbon data Analysis

Weighted average Benchmar Carbon Av. sector Portfolio % of carbon intensity (kg k Company GICS Industry Portfolio Benchmark emissions emissions contribution total CO2e/NOK 1'000 emissions (tCO2e) (tCO2e) (tCO2e) revenue) (tCO2e) Telenor Unknown 8.0% 7.2% 3.0% 0.9 186.3 165.6 606.4 342.9 Bakkafrost Food Products 7.7% 2.5% 1.1% 1.2 67.3 22.2 61.8 449.3 Fjordkraft Holding Electric Utilities 7.4% 0.6% 0.0% 0.0 1.3 0.1 1.3 498.8 Commercial Services Tomra Systems 6.7% 3.3% 0.2% 0.2 11.3 5.6 11.3 435.0 & Supplies Norsk Hydro Unknown 5.1% 4.6% 37.5% 4.5 2'334.2 2'099.0 387.4 -2'122.9 Insurance 5.1% 3.0% 0.0% 0.0 0.0 0.0 0.1 335.5 Yara International Chemicals 4.8% 4.6% 48.2% 8.1 3'005.5 2'891.8 2'623.9 -2'842.2 EUROPRIS ASA Multiline Retail 4.8% 0.6% 0.4% 0.1 22.9 3.1 22.9 289.4 DnB NOR Unknown 4.8% 8.8% 0.0% 0.0 0.3 0.5 360.9 313.3 Sampo Insurance 4.7% 0.0% 0.0% 0.0 0.4 0.0 0.1 308.6

Carbon Report - SEB Norway Focus Fund 6 Appendix

This table presents all holdings in the portfolio, sorted by sector, in A positive portfolio contribution indicates that the company reduced the alphabetic order. carbon footprint of the portfolio, whilst a negative number indicates that the company increased the carbon footprint of the portfolio. This helps It shows how each company contributes to the overall portfolio footprint. with portfolio optimization and in managing the overall carbon portfolio It allows you to see which stocks are the greatest contributors to the footprint without comprising the chosen sector allocation. portfolio’s emission in absolute as well as relative terms.

Weight Carbon data Analysis

Weighted average Carbon Benchmark Av. sector Portfolio carbon intensity Company Portfolio Benchmark emissions % of total emissions emissions contribution (kg CO2e/NOK 1'000 (tCO2e) (tCO2e) (tCO2e) (tCO2e) revenue) Banks 16.2% 2.4% 0.3% 0.1 19.0 0.1 0.7 1'035.4 Sparebank 1 Nord-Norge 4.3% 0.0% 0.2% 0.0 10.0 0.0 0.2 267.4 Sparebank 1 Oestlandet 4.2% 0.0% 0.0% 0.0 0.3 0.0 0.2 275.6 Sparebanken Vest 3.7% 0.0% 0.1% 0.0 3.5 0.0 0.2 238.1 Sparenbank 1 SMN 4.0% 0.0% 0.1% 0.0 5.3 0.0 0.2 254.2 Chemicals 4.8% 6.6% 48.2% 8.1 3'005.5 3'596.5 2'623.9 -2'842.2 Yara International 4.8% 4.6% 48.2% 8.1 3'005.5 2'891.8 2'623.9 -2'842.2 Commercial Services & Supplies 6.7% 3.3% 0.2% 0.2 11.3 5.6 11.3 435.0 Tomra Systems 6.7% 3.3% 0.2% 0.2 11.3 5.6 11.3 435.0 Electric Utilities 7.4% 0.6% 0.0% 0.0 1.3 0.1 1.3 498.8 Fjordkraft Holding 7.4% 0.6% 0.0% 0.0 1.3 0.1 1.3 498.8 Food Products 12.4% 13.2% 2.4% 1.4 150.1 105.4 99.2 668.5 Austevoll Seafood 4.7% 0.0% 1.3% 0.2 82.8 0.0 37.4 219.2 Bakkafrost 7.7% 2.5% 1.1% 1.2 67.3 22.2 61.8 449.3 IT Services 3.3% 1.4% 0.1% 0.1 6.1 2.1 4.8 205.5 Bouvet 3.3% 0.4% 0.1% 0.1 6.1 0.7 4.8 205.5 Insurance 14.4% 6.0% 0.0% 0.0 0.6 0.2 0.4 943.4 Gjensidige Nor Sparebank 4.6% 3.0% 0.0% 0.0 0.2 0.1 0.1 299.3 Sampo 4.7% 0.0% 0.0% 0.0 0.4 0.0 0.1 308.6 Storebrand 5.1% 3.0% 0.0% 0.0 0.0 0.0 0.1 335.5 Multiline Retail 4.8% 0.6% 0.4% 0.1 22.9 3.1 22.9 289.4 EUROPRIS ASA 4.8% 0.6% 0.4% 0.1 22.9 3.1 22.9 289.4 Unknown 22.4% 31.6% 40.9% 5.5 2'548.9 2'383.6 1'689.8 -1'206.2 DnB NOR 4.8% 8.8% 0.0% 0.0 0.3 0.5 360.9 313.3 Norsk Hydro 5.1% 4.6% 37.5% 4.5 2'334.2 2'099.0 387.4 -2'122.9 Orkla 4.4% 4.5% 0.5% 0.1 28.2 28.5 335.0 260.5 Telenor 8.0% 7.2% 3.0% 0.9 186.3 165.6 606.4 342.9

Total portfolio 92.5% 96.0% 92.5% 15.4 5'765.9 10'465.6 4'454.2

Carbon Report - SEB Norway Focus Fund 7