Sustainability Report 2020 About This Report This Report Covers the Jyske Bank Group’S Work on Sustainability During the Period 1 January to 31 December 2020

Section title • Report on Sustainability 2020 • Page 1 of 40

Sustainability Report 2020 About this report This report covers the Jyske Bank Group’s work on sustainability during the period 1 January to 31 December 2020.

The report covers areas within both sustainable business and responsible banking operations. The report constitutes Jyske Bank’s reporting on corporate social responsibility and the gender composition of the management, cf. Section 135a and b of the Danish Executive Order on Financial Reports for Credit Institutions and Investment Firms, etc. and reporting in accordance with the United Nations Global Compact and Principles for Responsible Banking.

The annual reporting for Jyske Bank consists of the Annual Report 2020, Risk and Capital Management Report 2020 and this report. This report is supplemented by our ESG Fact Book, which is available at https://investor.jyskebank.com/investorrelations/ Contents

Foreword

4 All progress counts

Business and strategy

5 Business model 6 Role in society 8 Strategy 9 Targets 10 Governance 11 Impact analysis

Sustainable business

12 Offers financing solutions that support sustainable transition 14 Simplifies sustainable investment 18 Provides knowledge of sustainability

Responsible banking operations

21 Prevention of financial crime 22 IT and data security 23 Responsible employer 25 Sustainable banking operations 26 Social engagement 27 Healthy corporate culture 29 Additional information on responsible banking operations

Policies, principles and key figures

33 Policies and principles 34 Key figures 35 Accounting policies 36 Reporting on Principles for Responsible Banking Foreword • Sustainability Report 2020 • Page 4 of 44

All progress counts Foreword by Anders Dam

Jyske Bank wants to make a difference – focused on sustainable development for what we recommend our customers to that also applies to sustainable devel- both retail and professional customers, do. Going forward, we will continue to be opment. We aim to operate a business and energy loans for homeowners. In ambitious and make new initiatives for that acts responsibly and promotes early 2021, we started to issue payment our own emissions. sustainability – this is not new – it is part cards made from 85% recyclable plastic, of our vision. We believe that the best and we have just launched Jyske Kort The approach to sustainability needs long-term results will be created with Rente Grøn, our first green mortgage to be dynamic in order to follow the de- the requisite balance between custom- product for corporate clients. Our ambi- velopment in the sustainability agenda. ers, employees, shareholders and the tion is to have sustainable solutions for Our targets and initiatives will need to surrounding society. all essential business areas by the end of be updated from time to time in order 2021. to reflect, for example, new knowledge Sustainable business or better methods and data. The lack The financial sector has taken on a new We do what we recommend our of completeness within the area must role and is focusing more on how finan- customers to do not prevent us from taking action and cial services companies, including Jyske We lead the way in relation to our own gathering experience. We are becoming Bank, can promote sustainability through sustainability. In summer 2020, Jyske wiser as we go, and we are taking our business activities such as lending and Bank purchased a wind turbine at the stakeholders on this journey with us by investing. Port of Hirtshals. Initially to offset CO2 being transparent about our work and emissions from electricity consumption approach. Jyske Bank’s work on sustainability is via our own production of renewable built on a commercial foundation and we energy. have responded to the role that we as a financial company can and should play. Jyske Bank is now taking the next step, For us, it makes sense to base our work with a new target for CO2 emissions on the view that “all progress counts”. relating to heating and company This means focusing on supporting cars to be covered by our own customer progress and facilitating our production of renewable customers’ options for making sustain- energy. Our own CO2 able choices and decisions. At present, emissions are limited focus is concentrated on the climate. in compared to the From a commercial perspective, we want CO2 emissions we to offer funding solutions that support can impact through sustainable development and simplify lending and invest- sustainable investment, at the same ing activities, but time as increasing knowledge about taking an ambitious sustainability. approach with regard to our own

More new products CO2 emissions sends In 2020, we introduced an equity fund a signal that we do

Anders Dam CEO and Managing Director Business and strategy • Sustainability Report 2020 • Page 5 of 44

Business model

The Jyske Bank Group supports the need the interests of the main stakeholders: for financial services for private individ- shareholders, customers, and employees. Key figures for 2020: uals, companies, institutions – and thus This balance is achieved when: also society – on a profitable basis. Profit after tax DKK 1.6 bn • customers receive advice, solutions We provide a full palette of financial and service that are among the best Return on equity 4.4% products, primarily in Denmark. Our core on the market services are products and services within • employees have an attractive work- Capital ratio 22.9% banking, leasing and mortgages. Other place with opportunities for develop- CET1 17.9% financial services are provided through ment long-term partnerships. • shareholders receive an attractive, Loans DKK 439.4 bn risk-adjusted long-term return. Our starting point is our desire, through our activities, to make a difference to our Deposits DKK 127.5 bn With a market share based on lending customers, wherever they are – geo- acitivities of approximately 11% created graphically, in the digital world, in a life Asset under management through organic growth and acquisitions, cycle, in an economic situation, etc. We DKK 175 bn Jyske Bank is currently the third-larg- want to be at the forefront of creating est bank, the fourth-largest mortgage value for customers and shareholders Nationwide branch network institution and one of the largest leasing by seeing opportunities and delivering with 94 branches providers in Denmark. solutions beyond what is expected. Market share based on lending Since 2014, the percentage of mortgage We are a relationship and advisory bank, activities 11% lending in the loan portfolio has grown where customers can easily choose from significantly, strengthening credit quality among the Group’s channels, advisory and stabilising loan growth and margins. concepts and service offerings, and have Therefore, Jyske Bank’s business model access to the Group’s products within in 2020 has a lower average risk and more these in a way that provides value to both stable returns. Jyske Bank is a systemi- the customers and the bank. cally important financial institution with a strong capital and liquidity position. We believe that the best long-term results are created when we balance Business and strategy • Sustainability Report 2020 • Page 6 of 44

Role in society

Contribution to society As a large financial services company in Denmark, Jyske Bank has an obligation Systemically important financial vis-à-vis society. We endeavour to run Supports growth and development institution that contributes to a company that in all respects conducts Jyske Bank provides capital and other financial stability itself responsibly and promotes sustaina- financial services to private individuals, Jyske Bank has a robust business model, bility pursuant to our values. authorities, municipalities and compa- where 79% of total lending is mort- nies, thereby contributing to growth and gage-type loans with full collateral. Jyske A well-functioning financial sector is of development in society. At the end of Bank has a strong capital and liquidity major importance to the social economy 2020, lending totalled DKK 439 bn and position, which is considered to be able in relation to areas such as transferring deposits DKK 127 bn. Jyske Bank had to withstand even very tough stress capital to businesses and citizens, man- 3,349 full-time employees at the end of scenarios. aging savings, developing new, safe ways 2020. of paying, giving advice on and financing companies’ sustainable development, reporting suspicious transactions to the authorities and social engagement. A substantial corporation tax Many Danish shareholders contributor in Denmark At the end of 2020, Jyske Bank was In 2020, the Jyske Bank Group’s tax In this section, we want to give an owned by approximately 168,000 share- payments amounted to DKK 1,153 m, overview of a number of Jyske Bank’s holders and approximately 70% of the consisting of corporation tax, payroll tax, contributions to society. share capital is owned by Danish share- VAT and property tax. holders. In the last five years, Jyske Bank has distributed DKK 8.8 bn to its shareholders in the form of dividends or share buybacks, corresponding to an average pay-out ratio of 65. Business and strategy • Sustainability Report 2020 • Page 7 of 44

Active participation in sector col- Preventing financial crime Easy and secure laboration In 2020, monitoring of customers and payment options Jyske Bank is a member of Finance Den- their transactions triggered 29,598 Jyske Bank focuses on making digital mark and participates in a number of its alarms and resulted in 3,368 notifica- payments easy and secure, and provides committees and working groups. In 2020, tions to the Danish Money Laundering a number of payment solutions: online we helped to prepare the framework CO2 Secretariat. Annually Jyske Bank allocates banking, mobile banking, Apple Pay, Mo- model for calculating financed emissions the equivalent of approx. 200 full-time bilePay and electronic payment cards. from lending and investments. employees to combatting and preventing We have also taken the initiative to financial crime. collaborate in the sector on the Sustain- able Development Goals from a Danish perspective. Social engagement through Sustainable business partnerships Jyske Bank offers financing solutions that We are socially engaged and prefer to support sustainable development, pro- work in partnerships. Jyske Bank has had vide knowledge about sustainability and a partnership with the FødevareBanken simplifies sustainable investment. [Danish Food Bank] since 2012 and with At the end of 2020, loans for green, Folkebevægelsen mod ensomhed [the sustainable purposes amounted to DKK People’s Movement Against Loneliness] 82.8 bn and the assets in the Jyske Invest since 2015. funds focusing on sustainability and corporate social responsibility to DKK 8.6 bn. Employees from Jyske Bank are teachers during PengeUgen [Money Week] and provide voluntary debt advice. Business and strategy • Sustainability Report 2020 • Page 8 of 44

Strategy

In 2019, Jyske Bank signed the UN Prin- Jyske Bank’s three business objectives • Ensuring compliance with all appli- ciples for Responsible Banking (PRB) and for sustainable business are: cable legislation across business these principles are used as an overarch- • Offers financing solutions that sup- activities ing approach to the work on integrating port sustainable transition • Ensuring high levels of IT and data sustainability. • Simplifies sustainable investment security • Provides knowledge about sustaina- • Not accepting misuse of the Group In 2020, Jyske Bank has been particu- bility. for the purpose of financial crime larly focused on further developing its approach of sustainable business. This • Creating a workplace which ensures work has resulted in the overall strategy Responsible banking operations job satisfaction and equal rights for our employees that “all progress counts”. Taking this When it comes to operating the bank, approach, we work both on the responsi- i.e. our own activities, we talk about • Working to identify and reduce the ble activities, which are already integrat- “Responsible banking operations”. This Group’s negative impact the environ- ed into the bank’s operations, and with involves: ment a strengthened focus on how we can • Running a profitable business that • Accepting corporate social respon- promote sustainability through business ensures that the Group can continue sibility and contributing to solving activities such as lending and investing. In to play a significant role in society relevant social issues through social other words, we focus on supporting cus- • Our employees acting with honesty engagement. tomer progress and facilitating custom- and integrity All of these activities are already inte- ers’ sustainable choices and decisions. At • Earning trust and credibility from grated into the bank’s operations and are present, we have a particular focus on the customers and other stakeholders continually in focus. climate, which is a significant impact area through behaviour and transparency for Jyske Bank.

Our sustainability strategy is illustrated in the circle. The circle symbolises the en- tirety of our work and contains the areas we are working on. The bottom half of the circle, responsible banking operations, comprises the areas we are working with internally and forms the foundations of our business model. The top half of the circle, sustainable business, describes our approach to customers and our surroundings.

Sustainable business We are focused on supporting our customers’ progress in sustainability transition. This is done through advice and through the Group’s offering of products and services. At Jyske Bank, we continuously offer sustainable products, services and advisory solutions to customers in all of the Group’s important business areas. Business and strategy • Sustainability Report 2020 • Page 9 of 44

Targets

At present, Jyske Bank has the following targets for promoting sustainable development. Our current focus on climate is also reflected in the targets, which cover both sustainable business and responsible banking operations. We will continuously update and set new targets.

We will finance production of 4 TWh of renewable energy in 2025.

4 TWh 2.5 TWh

We will provide financing for low-emission commercial propeties of DKK 40 bn in 2025.

DKK 40 bn DKK 31 bn

40% of new lending for financing vehicles will be for low-emission vehicles in 2025.

40% Progress for 2020 is not updated due to the transition to a new international standard

for calculating CO2 emissions for vehicles.

We support the Danish Investment Association goal of reducing the carbon footprint of private investors’ investments in equity funds by 75% in 2030 compared to MSCI’s global share index in 2020. 75% Progress for 2020 is not reported as the target is new.

By the end of 2022 we will offset our CO2 emissions from electricity, heating and driving the bank’s vehicles with our own production of renewable energy.

6,820 tonnes CO2e 6,440 tonnes Business and strategy • Sustainability Report 2020 • Page 10 of 44

Governance

As part of the integration of sustainability Sustainability is an integral part of the in Jyske Bank’s business model, a perma- operations and business development in nent anchoring of the area was estab- all parts of the Group, and all units in the lished in 2020. The previous sustainability organisation contribute to implementing Recycled plastic programme has therefore been replaced the strategy and compliance with Jyske payment cards by a sustainability committee. Bank’s sustainability objectives. The indi- – simply common sense vidual units are responsible for carrying At Jyske Bank, the Supervisory Board has out development tasks, which follow An example of integrating sustain- overall responsibility for strategy and poli- usual governance for prioritisation and ability into operations and business cies. The Board will address and consider execution of development tasks. development is the introduction of strategic and tactical issues related to payment cards in recycled plastics. sustainability. The IR and Sustainability department, As part of a generally more sus- which reports to the Group’s CFO, is tainable product development, we The Executive Board has day-to-day responsible for driving and coordinating have taken the first steps to issue responsibility for sustainability and the overall agenda, ensuring correlation cards made from recycled plastics corporate social responsibility across the between strategic initiatives for sustain- through a collaboration with IDEM- Group and ensures the implementation ability at Jyske Bank and reporting on the IA, the supplier of Denmark’s first of and compliance with the policy in all progress of these. recycled plastic card. These small parts of Jyske Bank and is responsible for payment cards may not be much the overall prioritisation of initiatives. Supervisory Board to look at in your wallet, but that is no good reason for not making the In practice, the follow-up of this respon- cards environmentally friendly. sibility is delegated to the Sustainability Executive Board Committee, which consists of two mem- “It’s about changing habits so that bers of the Executive Board, the CFO and we don’t just carry on using the the Director for IR and Sustainability. The Sustainability committee solutions we’ve become accus- committee meets on a quarterly basis at tomed to. That’s why we continu- least. Business units and Group functions ally look at all our value chains and what our suppliers can offer us, which can make our services more sustainable. ”

Vicki Stoltz Rosenberg Product owner for Payment Products Business and strategy • Sustainability Report 2020 • Page 11 of 44

Impact analysis

With lending and investing activi- from the bank’s lending and investing ties across a broad cross-section of activities. industries, Jyske Bank, directly or via its customers, will impact all of the UN’s 17 The complete analysis can be read on “The analysis is the first step in Sustainable Development Goals. The our website www.investor.jyskebank. a process of quantifying impact purpose of the impact analysis is – based com/investorrelations/sustainability. across lending and investing on the bank’s existing business model activities. It reflects Jyske Bank’s and composition – to identify and thus How the estimates are used current position. Estimates prioritise the most significant challeng- Quantifying the impact makes it possible will naturally change as meth- ing areas of activity (“negative impacts”) to target and prioritise actions. Going ods and data improve, and by and correspondingly the most significant forward, the analysis and its estimates estimating emissions figures sustainability-supporting areas of activ- will therefore be part of the we gain new knowledge that will ity (“positive impacts”) in relation to the decision-making process for enable us to target our actions.” UN’s 17 Sustainable Development Goals. establishing objectives and actions at both group and business unit level. In The first impact analysis Trine Lysholt Nørgaard addition the analysis’ estimates will be Director As part of the Group’s implementation used to address the importance of work- IR and Sustainability of PRB, Jyske Bank conducted its first ing with customer sustainability. impact analysis in 2020. The analysis is based methodically on the UN’s Portfolio Work to educate and raise awareness Impact Analysis Tool for Banks and about sustainability and impact internally on the four elements, scope, scale of will continue in 2021. exposure, context & relevance and scale & intensity/salience, included in the UN Based on the analysis, Waste will be the guidelines for implementing PRB. next relevant impact area for Jyske Bank The analysis shows that Climate is a sig- to analyse in more detail. nificant impact area for Jyske Bank and therefore estimates the CO2e emissions

Estimates of the impact analysis

Approx. DKK 600 bn

Loans 70% Investments 30%

Loans 59% Investments 41%

2.7 mio. tonnes CO2e

Personal clients 18% Coporate clients 41% AUM 34% Investment portfolio 7% Sustainable business • Sustainability Report 2020 • Page 12 of 44

Offers financing solutions that support sustainable transition

Jyske Bank offers loan products, advice From an organisational perspective, we and services that support financing of the have specialist departments in the busi- changes that our customers want to make ness areas of agriculture, green energy, in order to move their activities in a more transport and utilities. sustainable direction. Renewable energy Climate is a significant impact area for In the transition towards a society inde- Jyske Bank. Our impact analysis shows pendent of fossil fuels, it is important that lending, including loans to corporate to develop the production of renewable clients, is responsible for the majority of energy. At Jyske Bank, we would like to Eurowind Energy A/S sup- the estimated CO2e emissions. Based on help finance this development. We already plies green, sustainable the analysis, we have chosen to focus our provide significant lending for renewable energy to GreenLab actions on financing solutions that sup- energy and are co-financing the produc- GreenLab Skive is a green in- port sustainable changes within climate tion of renewable energy totalling 2.5 TWh dustrial park, a national research and reduction of CO e emissions. 2 at the end of 2020, which corresponds centre and a technology catalyst. to 8.5% of Denmark’s total electricity GreenLab will provide the frame- In Jyske Bank’s Green Finance Frame- production. Jyske Bank has a target of work for the world’s first full-scale work, we have designated five green and financing 4 TWh of renewable energy by PtX plant, offering a unique, sustainable lending areas that could make no later than 2025. intelligent energy platform where significant contributions to reducing CO e 2 It is possible to finance land-based renew- green, sustainable energy emissions, and we will continually set able energy with mortgages. is produced, stored and shared targets for these. The five lending areas between the businesses in the are: Renewable energy, Green buildings, industrial park. Clean transport, Sustainable use of natural resources and Recycling and sustainable Jens Rasmussen, Managing Direc- production. We have currently set targets tor, Eurowind Energy A/S states: for three of the five areas. “We are proud to provide sustainable energy production for this ambitious and innovative project, Lending volume, DKK million 2020 2019 which, by focusing at system level Renewable energy 3,597 2,915 rather than individual levels, can Green buildings 76,413 64,799 help to find new routes to effective green transition.” Clean transport 930 557

Sustainable use of natural resources 1,812 2,092 Jyske Bank finances Eurowind En- Recycling and sustainable production 610 289 ergy A/S’s construction of a hybrid park comprising wind, sun and battery solutions. Construction is underway and it is expected to be put into service in the autumn of 2022. Sustainable business • Sustainability Report 2020 • Page 13 of 44

Green buildings transport become less dependent on fossil fuels. Financing Jyske Bank – more than just green loans A reduction in energy consumption in The Danish government decided in Danish properties is an important part December 2020 that there should be of the Danish government’s plan for a Through Jyske Realkredit, Jyske 775,000 electric and hybrid cars on 70% reduction of CO emissions by 2030 Bank has loans to the social housing 2 Danish roads by 2030. At Jyske Bank, we compared with 1990 levels. sector of approx. DKK 49 bn. support both this target and the general The social housing sector, home to changeover to transport without the Jyske Bank already provides financing of around one million people in Den- use of fossil fuels, and have set a target DKK 76 bn for properties with low energy mark and provides good housing of 40% of new lending for means of consumption, of which commercial prop- in attractive areas for everyone, transport (20% for transport of goods) to erties account for DKK 31 bn. Our target regardless of income. be for low-emission means of transport is to finance DKK 40 bn in commercial by 2025. properties with low energy consumption Jyske Realkredit’s market share by no later than 2025. in this housing sector represents Through Jyske Finans, we offer financing approximately 26%, compared for virtually all types of transportation, From February 2021, Jyske Bank will offer with Jyske Realkredit’s total market including both private and commercial green mortgages for commercial proper- share of approximately 11% of the transport, and we have a team of special- ties that meet the criteria in Jyske Bank’s Danish mortgage market. ists in the transport industry who provide Green Finance Framework. These green customers with advice and sparring mortgages are financed by issueing before investing. green mortgage bonds.

Energy renovation The future is electric The Danish CO2 reduction target must also be achieved by improving the climate The passenger transport industry, together with bus service providers, has al- shell, and thereby reducing emissions for ready started rolling out electric buses in Danish cities. Jyske Finans is cooper- the existing stock of property. To support ating with, among others, one of the largest private bus companies in Denmark, energy improvements, we have launched Umove, on the deployment of electric buses. Umove has just won another energy improvement loans for home- tender and is to deliver 62 electric buses to the Municipality of Copenhagen. owners to fund energy renovation at a Umove already has extensive experience of electric buses operating in Roskilde lower interest rate than equivalent loans Municipality among others, with the involvement of Jyske Finans. and a CO2 calculator in the “Best Home” app. “In recent years, there has been a quantum leap in the technological development of electric vehicles. Combined with the public sector’s focus on sustain- Clean transport able development, we can now see that many of our customers are making similar investments. We are pleased that we can help to support this develop- In a global world, we need to transport ment,” comments Allan Mortensen, Director, Jyske Finans. both people and goods within as well as across national borders. Jyske Finans provides financing for a significant proportion of the electric buses In order to minimise CO2 emissions, it that are already driving on Danish roads. is important that the various modes of Sustainable business • Sustainability Report 2020 • Page 14 of 44

Simplifies sustainable investment

At Jyske Bank, we want to make it possi- Companies’ strategy and objectives for ble for more of our customers’ invest- sustainable development are therefore ments to become sustainable. Which is evaluated on an ongoing basis. We see why we want to make more sustainable sustainability as a structural theme that investment easy and accessible for fundamentally changes the conditions customers. We strive to offer products, for many companies and industries, such advice and services that make sustain- as on the demand side due to changed able investments easy, regardless of preferences and requirements of con- whether the customer chooses one of sumers, on the financing side through anced assessment of the transition level Jyske Bank’s investment solutions or the companies’ access to capital, and in the companies. makes their own investments. through new regulations. In 2020, we strengthened the overall We see it as our job to provide advice and Good investment advice and good setup of our asset management by optimise customer returns in the best investment performance assume we can bringing risk and sustainability together way possible. This means that environ- identify the opportunities and risks that within one department. ESG conditions mental, social and corporate governance sustainable development will create and are included in the ongoing risk as- (ESG) is naturally included in both the how it affects each individual company. sessment and idea generation for the investment opportunity selection and The source data is continually improving various investment teams. We use input investment processes that Jyske Bank’s as more companies publish results and from MSCI and Sustainalytics, but also portfolio managers use for investment objectives in relation to sustainability, complement this with, for example, more solutions. and this allows us to make a more nu- specific input from Transition Pathway, which provides a detailed assessment of whether companies are on the right track towards compliance with the Paris Agreement.

Our approach to sustainable investment Active ownership and engagement Integration We believe in the value of active owner- We integrate of ESG conditions into invest- ship and progress through dialogue with ment decisions, as we believe that these companies. We work with other investors conditions are significant to the future to promote a strong dialogue. earnings potential and risks of companies, and hence also the return potential. Inclusion and exclusion We work with exclusion in the form of re- Communication and reporting fusing to invest in controversial companies We communicate continuously about our due to breaches of ESG conditions (breach investments and the results of our efforts. of norms) or based on their activities. Fx sustainability fact sheets that provide We also work with inclusion in selected an accessible insight into ESG conditions, funds. That is to say, we select companies carbon footprint, contributions to the UN’s that we consider to be best positioned in Sustainable Development Goals as well as terms of sustainable development. the results of our dialogue with companies. Sustainable business • Jyske Bank • Sustainability Report 2020 • Page 15 of 44

Transparency around lated data at company level. This also iour. Fx responsibility for environmental sustainability makes sustainable investment easy for disasters, bribery cases, etc. those customers who do not use Jyske • CO emissions We focus on transparency and aim to 2 Bank’s investment solutions, but who are show the nuances of sustainability. The Comparison with a benchmark, which is advisory services customers or make approach to sustainability is holistic supplemented with everyday examples their own investments. and in line with the UN’s 17 Sustainable that translate CO2 emissions into some- Development Goals. This future-proofs thing more tangible. In 2020, Jyske Invest launched a new fact our foundation, as even though climate • Active ownership sheet focusing on sustainability for Jyske change is in focus, the recent COVID-19 Influencing the companies to change Invest’s equity funds. Corresponding in- outbreak and the MeToo and BlackLives- their behaviour, through cooperation with formation on corporate bonds and mixed Matter movements show that social other investors. asset funds is expected to be available in challenges are also becoming more • The UN Sustainable Development 2021. prevalent. Goals

The fact sheets from Jyske Invest pro- Shows how the companies contribute to We are working continuously on integrat- vide insight into the key figures for ESG a much broader sustainable agenda than ing sustainability data into our analytics in the funds and help our clients make a just climate. processes, so analysts have more tools conscious choice when investing. With to better analyse the conditions within the introduction of the EU taxonomy, we Sustainable products a company. Integrating significant ESG expect greater clarity as to what is con- risks will become the new standard for In 2020, Jyske Invest Bæredygtige Aktier sidered sustainable. Instead of waiting for all our equity recommendations. Climate KL was introduced, which gives custom- a definition, we present our customers change, and most recently COVID-19, ers the opportunity to invest in a broad with four elements to give an illustration have clearly shown a range of risks that lie global equity fund with a focus on sus- of how we are working with sustainability: outside traditional financial analysis. tainability. Through Jyske Invest, Jyske • ESG risk assessment Bank provides investors with three funds During 2020, we built up a robust data Summarises the main ESG risks and how that have particular focus on corporate foundation that means that by 2021 we these are managed. An industry-specific social responsibility and sustainability. will be able to display sustainability-re- assessment of the companies, including ongoing updates on controversial behav-

“All companies have a positive New sustainable equity product and negative impact on the world Jyske Invest Bæredygtige Aktier KL gives customers the opportunity to in- – and there is always room for vest in a broad global equity fund with a focus on sustainability. The portfolio improvement. in Jyske Invest Bæredygtige Aktier KL is comprised of:

We want to demonstrate that • Shares in the world’s developed countries sustainability is shaded in nu- • Increased exposure to companies with good sustainability characteris-

ances, otherwise it would not be tics, including companies with a high ESG rating and low CO2 emissions credible.” • Lower exposure to companies assessed as having poor sustainability characteristics Camilla Fangel • Exclusion of companies with the lowest ESG rating (CCC), companies Senior Sustainability Specialist which violate internationally recognised norms and conventions, and companies involved in the production of thermal coal and tar sand. Sustainable business • Sustainability Report 2020 • Page 16 of 44

Jyske Invest Globale Aktier SRI KL invests in any companies that produce or distrib- Building up sustainable in a globally composed portfolio of ute weapons, alcohol, tobacco, gambling investment shares, Jyske Invest Virksomhedsobli- services or adult entertainment, or At the end of 2020, DKK 8.6 bn has been gationer SRI KL invests in a portfolio of companies that perform the extraction, invested in the Jyske Invest funds with high-yield bonds issued by companies, development and refining of fossil fuels. a particular focus on corporate social while Jyske Invest Højt Ratede Virk- responsibility and sustainability. somhedsobligationer SRI KL invests in a In addition to these funds, we have cho- portfolio of high-rated bonds issued by sen to offer funds from selected external In general, a large proportion of as- companies. The common position of all asset managers, such as an impact equity sets under management is invested in three investment funds is that they do fund specifically focused on companies companies that perform better than the not invest in any company for which it can that deliver the climate solutions and benchmark for ESG rating, CO emis- be documented that business is being technology of tomorrow within one or 2 sions and revenue in relation to the UN carried out in a manner that violates more of five categories: clean energy, Sustainable Development Goals. widely recognised international conven- sustainable transport, environmental tions and norms relating to the environ- resources, low-carbon leaders or energy ment, human rights and business ethics. efficiency. In addition, investments will not be made

Funds for equity and corporate bonds

Share of assets with ESG score better than benchmark 94%

Share of assets with carbon footprint lower than benchmark 92%

Share of assets with higher proportion of revenues related to the UN Sustainable Development Goals than benchmark 56%

Target As a member of the Danish In- vestment Association, we support the objective of reducing the carbon footprint for Danish private investments, so that by 2030 the carbon footprint from this is 75% lower than the carbon footprint for the MSCI global share index in 2020. Sustainable business • Jyske Bank • Sustainability Report 2020 • Page 17 of 44

Active ownership Since 2010, Jyske Bank’s work with Non-Proliferation of Nuclear Weap- investors, participated in the Sustain- responsible investments has been ons is not observed). alytics norm-based engagement pro- based on the UN Principles for Re- gramme of 249 engagement cases sponsible Investment (PRI). The policy Jyske Bank advises Jyske Invest Fund concerning violation of international for responsible investments at Jyske Management A/S (JIFM) on active conventions and norms. Of these, 54 Bank sets out the framework for this ownership and the associations of the engagement cases concern work. administered by JIFM attempt, in companies in the associations’ certain situations, to influence the portfolios. 34 of these cases concern Jyske Bank receives ongoing screen- companies by exercising voting rights. human rights and labour rights, 5 ing reports for companies with seri- This will typically take place in dialogue concern environmental issues and 15 ous breaches of international norms with other investors via the Sustaina- concern business ethics. During 2020, or conventions. lytics Engagement Forum in order to seven cases in the associations’ port- achieve the greatest possible effect folios were resolved and thus closed. Jyske Bank has excluded investments of the vote. In the remaining ongoing cases, very in a number of companies that do not positive engagement results can be comply with the policy for responsible Active ownership outcomes noted in the form of progression in investments at Jyske Bank, and where As an active investor, Jyske Bank is in the specific cases and a willingness to there is no prospect of dialogue continuous dialogue with companies enter into a dialogue by the compa- resulting in a change in behaviour. At in relation to activities that conflict nies responsible in 15 of the cases. the end of 2020, the list of excluded with international norms or conven- Somewhat positive results have been companies primarily includes com- tions. achieved in 31 of the engagement panies that may be linked to con- cases, while there have been poor or troversial weapons: anti-personnel During 2020, associations admin- no results in 8 cases. mines, cluster weapons and nuclear istered by JIFM, along with other weapons (where the UN treaty on the Sustainable business • Sustainability Report 2020 • Page 18 of 44

Provides knowledge about sustainability

“Make wiser” is part of Jyske Bank’s constantly being raised. We want to bring overall communications strategy. Thus, it the necessary nuances of sustainability is only natural that Jyske Bank also seeks to the fore and shift perceptions, as sus- to provide knowledge about sustainability tainability is about more than just climate in the market areas we serve. This means changes and being “green”. that Jyske Bank’s sustainability communications must engage customers and Both internally and externally, we make other stakeholders in the agenda and use of our own experts, who serve as allow them to make sustainable choices; knowledge beacons and disseminators of independently of the products offered by the latest knowledge about trends, legis- Jyske Bank, but with the clear aim of get- lation, standards and demand, combined ting more people to choose sustainable with the business methods used by the solutions for both loans and investments. bank.

As always, our communication will be characterised by the fact that we serve the target group and we present unexpected, high-quality formats – often in strategic partnerships with relevant partners.

Action requires knowledge and transparency Our aim is to provide customers with a nuanced approach to sustainability, enabling more people to make sustainable choices and to better their understanding of how big a difference changes in financial transactions can make to sustainable development.

Transparency is a necessary foundation since the definition of sustainability is continually changing and the bar is Sustainable business • Sustainability Report 2020 • Page 19 of 44

What have we achieved in 2020? In 2020, we have focused on three areas Through a number of strategic partner- in particular that either is of interest of ships, we will offer our customers our customers or that we believe should knowledge of multiple aspects of, in interest them: particular, the social side of sustainability such as loneliness, well-being and work–life Energy renovation of homes balance. Government subsidies, favourable conversion options and the low interest rate Nuances of environment have made it attractive for sustainability homeowners to make improvements to The term sustainability is popular and their home to the benefit of the climate and frequently used. When we provide knowl- the value of their homes. With webinars, edge, in addition to navigating between newsletters and blogs, we have shared our the various nuances of sustainability, we knowledge of the value of such an invest- must also consider the fact that we, as ment. part of the financial sector, are also part of the sector’s reputation. What is behind your investments? A fact that – perhaps – makes many of the recipients of our We have developed new methods and messages more sceptical workflows to ensure that in the future we than they otherwise would The communicating bank can provide as much information as possi- be. It is a risk that we are Over many years, Jyske Bank has built up ble about the companies that a customer aware of. We want to internal expertise in disseminating information chooses to invest in. Sustainability-related position ourselves as an through various different media, but primarily TV data is combined with financial data to ena- important voice in the and podcasts. ble a customer to assess a company based current debate with on the parameters that are important to the aim of increasing In 2020, we launched Jyske Bank LIVE, a range them. general awareness of of webinars that give our customers and other sustainability and, in interested parties useful experiences – and direct Best practice among companies particular, the finan- access to the bank’s experts and business partners. cial sector’s contribu- In our series of mini company portraits, Got tion in this regard. We With Jyske Bank LIVE, we combine professionally a Minute?, we tell the stories of customers are committed to this. produced TV with the webinar platform’s capacity who have successfully integrated sustaina- for interaction with viewers. A good example is bility into their business model. the webinar on “Energy renovation – an investment with a green return”, in which homeowners’ What does 2021 have to offer? options for creating green value in their own In 2021, we will focus on what the individ- homes were explained by Jyske Bank’s housing ual can do to be more sustainable in their economist in partnership with an external financial transactions. One area in which a experts on energy labelling. significant impact can be made is via investments, including pension savings. Sustain- able investment will therefore be a major topic, including investment in general, so that even more people can start investing – and also do so sustainably. Responsible banking operations • Sustainability Report 2020 • Page 20 of 44

Responsible banking operations

Jyske Bank wants to operate a Responsible banking operations is business that acts responsibly and also very much about complying with promotes sustainability. We believe applicable legislation and thereby the path to sustainability is through meeting the expectations that our responsible banking. stakeholders must rightfully have of us. It is also through responsible When we work with sustainability banking that we comply with the UN in our internal operations, we call it Global Compact. responsible banking operations. This concerns the climate, of course, but The following pages describe our the other Sustainable Development areas of focus within responsible Goals are also important. Responsi- banking operations. Both in terms of ble banking operations is about how how we comply with the statutory we want to interact with customers, requirements and the activities we our employees and society. have chosen because we believe that they strengthen our responsibility. When we work with responsible Finally, the section provides addi- banking operations, we focus par- tional information in tabular form for ticularly on activities within: each activity.

• Prevention of financial crime • IT and data security “Acting responsibly and • Being a responsible employer meeting the standards to which we hold others is strongly • Sustainable banking anchored in Jyske Bank’s • Social engagement foundation and goes naturally • Ensuring a healthy corporate hand-in-hand with the 10 culture principles of Global Compact, which we have supported since These are all activities that we are 2016 and continue to support” familiar with and that are already integrated into the operations of the Anders Dam bank. CEO and Managing Director Responsible banking operations • Sustainability Report 2020 • Page 21 of 44

Prevention of financial crime

Efforts to prevent money laundering and Less cash in circulation working with, it will not as a general rule the financing of terrorism remain a top In our experience, criminals generally be possible for the customer relationship priority of the Jyske Bank Group. In order prefer cash for money laundering. To to continue. to reduce the risk of the bank being reduce the amount of cash in circulation, misused for unlawful purposes, we have we have lowered withdrawal limits for the For example, the auditing obligation has introduced measures to prevent financial bank’s ATMs even further. resulted in 1,524 customers submitting crime that go beyond the requirements documentation about their auditor, while of legislation. Misuse via online banking etc. 696 business customers have left the bank due to this requirement. The Danish banking sector is experienc- Our work to prevent and combat finan- ing an increasing amount of fraud involv- cial crime is therefore not only about Sectoral cooperation ing identity theft and online banking fraud checking customer transactions etc. but etc. We have therefore been involved in We are constantly working to improve is also about preventive initiatives. In this making a number of specific adjustments and refine our setup in order to prevent way, we actively contribute to combatting and we were also an active part of the money laundering. The legislation is money laundering and other financial nationwide initiative in October 2020 changing all the time, and interpretation crime. that focused on “cybercrime” through of rules and ongoing practice in this area a number of initiatives, including on our is therefore crucial. At Jyske Bank, we In 2020, we introduced a number of website. The purpose has been to draw therefore consider it very important to new specific initiatives to help prevent customers’ attention to what they can do cooperate in the sector and participate financial crime, and these initiatives will to protect themselves against fraud. in a number of sector initiatives. For continue in 2021. example, we have participated in Finance We are also working with industry associ- Denmark’s Task Force for the prevention Stopping COVID-19 subsidies fraud ations such as Nordic Financial CERT and of money laundering, and we have also As the COVID-19 pandemic arrived in Finance Denmark, and have recently en- entered into direct cooperation with the Denmark and the government gave tered into an agreement with “my digital authorities. subsidies to the business community, we self-defence” (a free app) to increase the at Jyske Bank have focused on cus- digital security of all Danish citizens. tomers who – based on our knowledge of the customer – are not entitled to Auditing obligation receive subsidies. This has resulted in a Since 2019, we at Jyske Bank have number of reports to the Danish Money required all business customers to use Laundering Secretariat due to suspected an approved auditor. If the customer is COVID-19 subsidies fraud. unable to tell us which auditor they are

Inspection by the Danish Financial Supervisory Authority In August 2020, the bank received the Danish Financial Supervisory Authority’s report on its money-laundering inspection at the bank regarding transaction monitoring. The report contained two orders. The first order has been actioned. The second order was actioned in part at the end of 2020 and is expected to be actioned in full by the end of April 2021. Responsible banking operations • Sustainability Report 2020 • Page 22 of 44

IT and data security

A high level of IT security is essential in the threat actors, we can better under- significant improvements in the IT a time when personal data and financial stand our security measures and be as security level. Extraordinary investments transactions are sent via digital channels. prepared as possible if we fall victim of an have been made in raising the operational attack. level of our key IT suppliers, JN Data and Our level of security is set in line with our Bankdata, and we have also upgraded the ambition of having a level of security that • Detection capability and robust IT internal resources in this area at Jyske is always able to handle the current cyber platform to prevent an attack Bank. Prompted by the IT security policy, threat and safeguard us against the risks Attempted attacks must be detected as we have implemented new best practice associated with IT and has elements that soon as possible, and we should ideally tools and increased the resources in our are “Best in class”. be proactively protected if an attack Security Operating Centre. succeeds in gaining a foothold. This is We very much focus on how we act as done through in-depth security moni- Testing the level of security data controller and use a high level of toring, secure configurations of our IT, a There is regular reporting of the con- security when processing customer data. high patch level, strict management of dition of the level of security. As part of permissions, etc. Data traffic is analysed compliance with the security policy, in- Cyber threat to identify unwanted security behaviour, depth checks and tests are also carried During the time we have been working and this helps detect and prevent the out to determine whether our level of se- with digitalization and offering our busi- success of an attack. curity is sufficiently high. For this reason, ness services through digital channels, Red Team tests have been carried out there has been a need for a high level • Containment and effective control of using the best suppliers on the market. of IT security. In recent years, the cyber attacks Jyske Bank is also a participant in the na- threat has been increasing and is at a In the event that an attack succeeds in tional cyber test programme, under the very high level, placing great demands gaining a foothold in IT systems, it is im- TIBER-DK framework, which aims to test on Jyske Bank’s IT security level. The so- portant that we have security measures cyber resilience in the event of an attack phistication with which cyber attacks are in place that can also ensure containment by highly advanced threat actors. Our carried out is at an unprecedentedly high and effective control of the attack. If latest Red Team test in 2020 confirms a level and therefore multi-level protection the attack succeeds in causing damage, very high IT security level at Jyske Bank. is required. effective recovery is also an important security measure. Strategy and efforts Our approach to protection from cyber High level of security threats involves several types of efforts: Our IT security policy and strategy stip- ulate the requirements and frameworks • In-depth understanding of threats for and direction of our management and and who the threat actors are implementation of a high IT security level. Through continuous monitoring of cyber Over the past three years, Jyske Bank has activity and analysis of the techniques, implemented and achieved tactics and attack procedures used by

Systems are not enough – behaviour is crucial In week 43, we had an internal focus on cybersecurity. All employees watched a film about a – fortunately fictional – cyber attack on Jyske Bank. The film was followed by an e-learning module including knowledge tests and flashcards with precautions to take in the event of crashes.

The threat is very topical and we can report that we have been exposed to threats that have resulted in crashes at other big companies – all of these were detected and contained at Jyske Bank. Responsible banking operations • Sustainability Report 2020 • Page 23 of 44

Responsible employer

As a responsible employer, Jyske Bank for quitting smoking, small-scale exercise to speak out against discrimination and works to ensure an attractive workplace programmes and access to a network of violations. that guarantees job satisfaction, equal external physiotherapists and occupa- The Jyske Bank Group’s collective agree- rights and development opportunities for tional therapists, among other things. ment protects employees’ basic rights, all employees. When it comes to mental health and and approximately 9/10 of employees are well-being, the dialogue tool “Træd Tidligt covered by their conditions of employ- Committed, competent, dynamic and Til” [Step In Early] supports an open dia- ment. The collective agreement covers, responsible employees are important logue between employee and manager, among other things, working hours, com- prerequisites for the Jyske Bank Group’s and provides the opportunity to connect pensation for loss of earnings, holiday, success. The Group must therefore be with external advisors. In 2020, employ- illness, etc. In addition, just under 1/10 of able to attract, develop and retain em- ee safety, and primarily the prevention employees have provisions in their indi- ployees with the competencies, behav- and handling of violent and harassment vidual contracts that refer to the terms of iour and attitudes needed to achieve the incidents with customers, has been a the collective agreement. bank’s strategies and targets. focus area. The annual review of the Group’s equal Job satisfaction An employee survey is conducted for pay statistics does not show any pay A good working environment is the key the entire Group every two years – in differences that need to be corrected. to job satisfaction. It is important that we the intervening years, there is follow-up That is to say that for roles where there each feel the greatest possible job satis- measurement based on action plans is a difference in pay between men and faction and commitment in our everyday from the most recent measurement. women, there are valid grounds for this. life, and that we have the best possible The employee survey focuses on com- framework for development and a good mitment, job satisfaction and loyalty, and We cooperate with and involve our day-to-day life. We aim to strike a good also contains relevant working environ- employees’ union representatives in im- work-life balance. ment questions relating to the physical portant employee matters, both ad hoc and psychosocial working environment. and via the formal cooperation bodies, We focus on both the physical and psy- Response rates have been high since the and we fully respect our employees’ right chosocial working environment. Since first survey in 2016, and peaked in 2020 to organise. 2012, the Group has had a dedicated at 96 per cent. working environment organisation Diversity with professional working environment Equal rights and diversity We believe that diversity in the workforce consultants and representatives who The Jyske Bank Group respects human contributes positively to performance work on working environment issues rights. They are the foundation for a safe, and development. As a company, we want full-time. The working environment fair and just society, with equal rights, to reflect the society around us as far as work is characterised by a preventive, inclusion, labour rights, health and safety possible. We are committed to ensuring holistic, visible and integrated approach. and are values rooted in our policy. Jyske that all employees have equal access to Focusing on the health and well-being Bank makes a continuous and conscious development and career opportunities, of employees, we offer healthy canteen effort to respect human rights and en- regardless of gender, age, ethnicity, reli- food, a fruit scheme, Group-paid advice courages employees, via an open culture, gion or other factors.

70:20:10 In 2020, there was also an increased focus on holding courses and learning activities online, and the 70:20:10 model was practised widely and in earnest throughout the Group. 70:20:10 is the mutual weighting we want to give learning in the form of online learning (70%), peer learning (20%) and external learning activities (10%).

Virtual activities offer greater flexibility for the participant both physically and temporarily, they are less resource intensive, e.g. in terms of transport and hotel accommodation, and they are also easier to manage in terms of enrolment and attendance. Responsible banking operations • Sustainability Report 2020 • Page 24 of 44

The same applies when filling positions, training is an essential element of our so- opportunities, both in the form of internal where all candidates can apply regard- cial responsibility. Jyske Bank has a formal targeted learning modules and gener- less of gender, age, ethnicity, religion or development programme for graduates al support for other external training, other factors that are not significant for and regularly makes internships avail- including learning via Finanskompet- performing the job. able to both Bachelors of Finance and encepuljen [the Financial Competence students. Pool]. Topics for internal activities include At the end of 2020, the proportion of IT security, Secure behaviour and Meet- female managers is 26%, compared with In 2021, we will be continuing our current ing facilitation. At manager level, topics 29% at the end of 2019. Organisational initiatives and development programmes include Feedback and feedforward, and changes and the reduction of the man- for recent graduates. We also want to The manager’s role as a skills developer. agement team in the largest business strengthen our relationship with educa- To stimulate interest in skills develop- unit, where there are traditionally many tional institutions. ment and ensure cohesion between female managers, have had a negative public and private study programmes, the effect on the overall proportion of female In order to keep employees’ competency Group has been awarding ECTS credits managers. The proportion of women and professionalism at a high level that at for selected internal training courses on the Group’s management training least satisfies current legal requirements, since 2010. programmes starting in 2020 is 33%, the Group offers a wide range of training compared with 35% in 2019. However, some of the management programmes Trends in number of graduates and Bachelors of Finance at Jyske Bank were postponed until 2021 as a result of 2021 Number 2020 2019 2018 COVID-19. target

Graduates 15 13 15 4 Going forward, we will focus more on uncovering potential and concentrate Bachelors of Finance 25 25 15 26 our efforts on accelerated development pathways. A very different workday When COVID-19 hit Denmark in the online lunches and coffee breaks, and a Gender diversity on the Board spring, it changed the everyday lives of Friday bar. With effect from the 2020 annual general many of our employees. From the start, meeting, the Supervisory Board has Jyske Bank has followed the authori- Our departments have been partially four female members (two elected by ties’ guidelines and recommendations closed at times and customers have the shareholders and two elected by with respect for both the individual been asked to make an appointment the employees) out of 11 members. In business areas and the individual with their advisor before a meeting. 2020, therefore, Jyske Bank had already employee. It has been important for us to look achieved its target for 2021, which is for after our employees while also being an equal distribution in accordance with Many employees have worked from available to our customers and advising the Danish Business Authority’s guide- home for short or long periods. This them as best we can in a challenging lines of March 2016. has meant a change to the workday in time. terms of setting, activities and social Development opportunities and relations with colleagues. The focus Cooperation between colleagues and training has continually been on changes in the customers have had to take new and Jyske Bank wants to give its employees employees’ physical and psychosocial different paths. In 2020, we have thus the opportunity for continuous train- working environment, and information taken a leap forward in the use of digital ing and development, thus ensuring about working positions, ergonomics solutions, and we have gained valuable high-level competencies and profession- and movement during the working experience of conducting virtual meet- alism, and making them a sought-after day has been sent out from a central ings and webinars. This benefits both and valuable workforce. This also applies function. Initiatives have been taken customers and employees, and we will to future employees. Thus, the contribu- locally to strengthen social and collegial make use of this experience in digital tion to young people’s access to jobs and relationships with, fx online bingo, solutions in the future. Responsible banking operations • Sustainability Report 2020 • Page 25 of 44

Sustainable banking operations

Jyske Bank has an impact on the climate, JN Data’s electricity consumption. That Development Report 2020 states that and although the biggest impact relates is why we acquired a wind turbine, in the electronic waste is a major challenge to our business activities, we are working summer of 2020, that had just been built in Denmark. Our impact analysis also actively to reduce the impact we have as at the Port of Hirtshals. The wind turbine showed that waste is an area where Jyske a company. We believe that this gives us is part of Denmark’s first wind farm to be Bank has a significant impact. credibility and provides a good basis for built without government support. dialogue with our customers. At Jyske Bank, we have for many years We believe that it is important to continu- ensured that our discarded IT equipment We support the Danish and inter- ally reduce our energy consumption, even is reused, either through a professional

national targets of reducing CO2 if the wind turbine produces the elec- partner or through the donation of PCs emissions by 2030, and we are tricity that we consume. That is why we to social projects. In 2020 85% of the constantly working to minimise our installed energy management systems Group’s IT equipment was recycled.

CO2 emissions from activities such at all locations in 2020 to monitor and as transport, energy consumption streamline our energy consumption. In 2021, we will continue to work on how and purchasing. we can reduce our waste volume and Green car policy ensure that as much as possible of our In 2020, Jyske Bank’s CO2 emis- We support the transition to greener waste is recycled. sions excluding business activities transport and the Danish government’s Target amounted to 7,525 tonnes, a goals in this area, and we therefore reduction of 14% compared installed more electric charging stations We want to offset our CO2 emissions with 2019. in 2020. The charging stations have been from electricity, heating and driving installed at publicly accessible locations the bank’s cars with our own produc- and can be used by everyone. We have tion of renewable energy by the end of 2022. Energy also decided that in 2021 we will start replacing our own cars with low-emis- consumption sion vehicles, thereby reducing our CO 2 Safety vs sustainability We reported our CO2 emissions emissions. for the first time in 2020. The CO2 At Jyske Bank, we work actively to minimise our consumption and reported numbers stated that 67% Purchasing of emissions in 2019 were due to waste, and in connection with this At Jyske Bank, we have taken ethical, en- the consumption of electricity. For we stopped using single-use plastics vironmental, political and social consid- several years we have purchased several years ago. erations into account in connection with CO2 certificates to compensate for purchasing for the Group for many years. our overall emissions, but in 2020 Due to the COVID-19 pandemic, it We purchase sustainable products when we decided that in the future we will has been necessary to serve food to it makes sense to do so and supports produce renewable energy our- our employees in single-use plastic for recycling in our consumption. selves corresponding to the bank’s large periods in 2020 to ensure safety own electricity consumption and and reduce the risk of infection in our Waste the bank’s share of Bankdata’s and workplaces. The SDG index in the Sustainable

Facts about Jyske Bank’s wind turbine Fun facts about the wind turbine • Type: Vestas V136 4.2 MW • 1 revolution in 2020 could charge 185 smartphones • Location: Port of Hirtshals • An electric vehicle could drive 153 km on one minute’s pro- • Erected Q4 2019 duction • Taken over on 1 July 2020 • 16.1 GWh produced in 2020 • 8.6 GWh produced in the second half of 2020 Responsible banking operations • Sustainability Report 2020 • Page 26 of 44

Social engagement

Through our business activities, Jyske loneliness in partnership with more than Voluntary work Bank contributes to financial security 80 organisations, associations, munici- Jyske Bank takes a positive view of and a good life – all life – for many people. palities and companies. We support the employees’ social and voluntary com- A good life is also about well-being and apolitical organisation and our shared mitment and approves voluntary work social relations between people, which is vision that no one in Denmark should be outside working hours in a large number the focal point of our social initiatives. affected by chronic loneliness. We partici- of cases. Employees may, to a reasonable pate in the annual campaign Danmark extent, use the bank’s resources such Jyske Bank has chosen to engage in a Spiser Sammen [Denmark Eats Togeth- as printers, e-mail, telephones, meeting number of different social projects and er], which establishes communities over rooms, etc. to support their voluntary work. initiatives where we see opportunities to a meal and contributes to many people’s make a difference with our resources and fight against loneliness. In 2020, the cam- For a number of years, Jyske Bank has competencies. We are happy to work as paign was virtual due to COVID-19. In supported the debt counselling work part of non-traditional partnerships with 2021, Jyske Bank will host a minimum of of the Ministry of Social Affairs and the other companies, the public sector or civil three events. Interior and a number of organisations by society organisations. offering employees paid time off for half In 2021, we will enter into a new part- of the time they spend on this voluntary From food waste to meals nership with Flere i Fællesskaber [More work. There are currently 15 employees Jyske Bank, in partnership with so- People in Communities], which aims to who are active debt counsellors. cio-economics company Fødevare- contribute to the fight against loneliness. Banken [Danish Food Bank], has been securing meals for socially disadvantaged Young people and education Two banks working citizens while also reducing food waste Jyske Bank has supported the Kloge together in 2020 in Denmark since 2012. The basis for the Hænder [Skilled Hands] project, which FødevareBankens organizations work is that they receive aims to address the current challenges of [Danish Food Bank’s] surplus food daily from food producers too few young people choosing vocation- 272 volunteers and wholesalers that social organisations al education. In three pilot projects, the have distributed 1.4 turn into meals. oldest students in primary and lower sec- In 2021, we will host a minimum of five ondary school have gained practice-ori- tonnes of food. This events in partnership with the Danish ented insight into vocational education corresponds to 3.5 m Food Bank, which will ensure the visibility and career opportunities. We hope that meals. of the project. the experience gained from the project can be rolled out nationally. Jyske Bank’s Combatting loneliness involvement in the project is considered The partnership with the Folkebevægels- complete in 2020. An evaluation report en mod ensomhed [People’s Movement has been prepared that can be found on Against Loneliness] is also based on food our website. and people. As early as in 2015, Jyske Bank committed itself to combatting

Physical exercise contributes to well-being – no matter what age you are Jyske Bank cooperates with the Danish Cyclists’ Federation and supports the “Alle Børn Cykler” [All Children Cycle] campaign – a well-functioning and popular school campaign with over 100,000 students participating each year. Jyske Bank encourages the whole family to go cycling and is on hand with food and a number of other fun cycling activities – we call it JYSKE CYKELHYGGE [JYSKE CYCLING FUN].

Are you more into exercising your brain? Then try “Tæt på Tænkepauser” – a new partnership with Aarhus University. “Tæt på Tænkepauser” are small books full of big ideas. In just 60 pages, researchers from Aarhus University share what they know about their specialist field. Anyone interested can take part in the live digital events, where the focus is on a Tænkepause book and its author. Responsible banking operations • Sustainability Report 2020 • Page 27 of 44

Healthy corporate culture

We aim to operate a responsible bank The foundation of a healthy that ensures and promotes a healthy corporate culture corporate culture that is characterised by We support open communication and high ethical and professional standards. we want decision-making processes that encourage the involvement of a wide At Jyske Bank, we always comply with range of views. We do this by upholding applicable legislation and also live up to the value Honest, which generally invites the expectations that our stakeholders open and straightforward dialogue. rightly have of us, whether it is a matter We also want to be as transparent as of good practice or preventing financial possible, both internally and external- crime. ly. That is why we are happy to publish relevant policies and data and work with Jyske Bank’s most important stakehold- authorities when it comes to supervision, ers are shareholders, customers and procedures and specific cases. This also employees, and the target is to ensure means that if mistakes are made, we are an appropriate balancing of the interests open about these, and we correct and of these three groups. This supports a learn from them. long-term and balanced business development so that more short-term and Should a situation arise where open one-sided transactions that favour one communication and dialogue are not of the groups can be avoided. Thus, no the solution, the whistleblower scheme customer or other business partner is so allows employees to anonymously report important that we are prepared to com- (potential) violations of financial regula- promise on our responsibility, which is tions or suspected serious misconduct more important to us than our earnings. that may have an impact on the Group or on the life or health of individuals.

The policy on a healthy corporate culture sets out general guidelines that outline responsible and sensible behaviour for all the Group’s employees.

A number of these conditions are further specified in other policies, e.g.

• Remuneration policy • Whistleblower policy • Policy for managing conflicts of interest • Competency requirements, good practice and ethical con- • Tax policy duct • Anti-bribery and corruption policy • Policy for preventing money laundering, financing of terrorism and sanctions violations Responsible banking operations • Sustainability Report 2020 • Page 28 of 44

Responsible advice with legislators’ intentions in tax legisla- When dealing with customers, our tion. The framework for our tax advice Anders Dam and Jyske Bank employees are expected to act with is embodied in a number of fact sheets honoured with FSR - Marsh honesty and integrity and to offer our that are also available to our customers. Erhvervspris 2020 [FSR – customers financial advice that takes We will never advise on any interpretation Marsh Business Award 2020] of the rules other than the one set out in individual considerations into account, The award is given to a unique these fact sheets, nor on tax in areas not meets their needs and adds value, and innovative person who has mentioned in the fact sheets. thereby enabling them to make decisions made every effort to ensure that on a well-informed basis. With regards Danish companies are run fairly, to lending, it may be a case of ensuring Education and learning support a compete on equal terms and that the customer, after buying a home healthy corporate culture treat everyone equally. for example, continues to have sound To comply with the legislation to which personal finances. It is all about knowing Jyske Bank is subject and to ensure The chair of FSR – danske your customer. that customers receive competent and revisorer also acknowledged professional advice, there is a continuous the efforts to ensure honesty At the same time, Jyske Bank has chosen focus on maintaining and upgrading the and compliance, stressing the not to make use of performance-based professional knowledge of employees. importance of companies pay, which can lead to short-term and This involves all employees in the Group navigating according to an ethi- one-sided decisions that have a detri- completing a number of mandatory train- cal compass, and trust within the mental effect on the long-term value ing courses, such as money laundering Danish business community. creation, needs and targets of custom- training, and selected groups becoming ers, shareholders and the Group. This IDD- and RED-certified. means that there is no conflict of interest between the employee and the custom- An adequate and up-to-date offering er. For example, by selling products that of both statutory and non-statutory the customer may not need. learning activities within the compliance area supports an in-depth knowledge of With its tax policy, Jyske Bank wants the rules, legislation and signals of criminal Group to live up to its corporate social re- behaviour. Completion of mandatory sponsibility and meet legitimate expecta- training is managed and recorded in Jyske tions of proper and honest business con- Bank’s LMS. This ensures an overview of duct that reflects the Group’s values. The and follow-up on the implementation of Group pursues a value-based tax policy the training activities. Requirements for that ensures we provide adequate cus- follow-up of mandatory activities have tomer-related tax advice on our products been agreed and approved by the compli- and services, which we are obligated to ance area. do pursuant to applicable legislation. Our value-based tax policy also means that we do not provide aggressive tax advice, but instead advice that is in accordance Responsible banking operations • Sustainability Report 2020 • Page 29 of 44

Prevention of financial crime IT and data security

Objective Preventing financial crime, and efforts to prevent money Achieve and maintain a level of security that laundering and the financing of terrorism, are a top priori- • is sufficient to address the current cyber threat with ty at Jyske Bank. We want to prevent the bank from being elements that are “Best in class”. misused for illegal purposes in all respects. • ensures that the risks that IT use entails and is expected to entail are at an acceptable level for the Group.

Progress and • In 2020, monitoring of customers and their transac- • Several precautions to increase resilience to cyber performance tions triggered 29,598 alarms, 3,368 of which were threats, including improvements in the ability to 2020 reported to the Money Laundering Secretariat. “repel”, “detect” and “contain” attacks that are at best • Withdrawal limits for the bank’s ATMs have been practice level. reduced further so that the limit from 6 pm until 9 am • In the time that we have had these new precautions is more than halved, and the withdrawal limit from 9 in place, we have not had any losses or errors due to am until 6 pm is halved. cyber incidents. We have had unprecedented insight into threats and risks to the Group. • Our Security Operation Centre, which monitors and protects our IT environment against cyber attacks, is one of the best in Denmark and recognised accredi- tation for this is expected in early 2021.

Targets 2021 Prevention of financial crime is ensured through, among IT security is and must be a high-priority area in the other measures, continuous training and education of future. We have achieved a strong level of security, but employees, clear processes and guidelines, and systematic we are constantly and consistently working to increase monitoring and reporting. This work will continue in 2021. resilience. In addition, we will continuously look at whether initiatives can be taken to reduce the risk of misuse of the bank.

Societal There is a high inherent risk that Jyske Bank may be mis- The sophistication with which cyber attacks are carried challenges used for money laundering or financing terrorism, partly out is at an unprecedentedly high level and protection because of our size and partly because of our business against cyber attacks requires protection on multiple lev- model, which contains a number of products and cus- els. The risk of fraud on behalf of our customers, including tomers with high inherent risk. whether customers are exploited through the use of our services, is high. We have observed that customers are increasingly being exposed to scams that are becoming ever more creative.

Risks • In terms of our reputation in general, there is a risk • Specific cases of IT and data security breaches may that our stakeholders will abandon us if we do not act result in police reports, negative press coverage and responsibly. an immediate fall in the share price. • Errors and shortcomings in our efforts may result in • In terms of our reputation in general, there is a risk orders from the Danish Financial Supervisory Author- that our stakeholders will abandon us if we do not act ity and, in the worst case, affect stakeholders’ confi- responsibly. dence in our handling of financial crime prevention. • Errors and shortcomings in our efforts may affect the • Specific cases of, for example, money laundering may confidence of customers, investors and partners in result in police reports, negative press coverage and particular and may result in orders from the Danish an immediate fall in the share price. Financial Supervisory Authority. • Specific cases will affect Jyske Bank’s ESG rating for • Specific cases will affect Jyske Bank’s ESG rating for several years, thus potentially restricting access to several years, thus potentially restricting access to equity and debt investors. equity and debt investors.

Governance A member of the Executive Management is responsible The Executive Management has overall responsibility for the money laundering area. The bank has also ap- for IT and data security, and the IT security function is pointed a money laundering reporting officer. responsible for day-to-day operations. The Group has appointed a Data Protection Officer.

Policies Policy for preventing money laundering, financing of IT Security Policy. terrorism and sanctions violations. Privacy Policy. Anti-Bribery and Corruption Policy.

SDG

16.4 16.5 Responsible banking operations • Sustainability Report 2020 • Page 30 of 44

Working environment Diversity

Objective A good and safe working environment that contributes to Ensure that the Group has the best possible managers job satisfaction. and employees with good personal qualities and professional competencies. Access to development and career opportunities for all employees, including seeking to increase the proportion of female managers.

Progress and • Holding meetings and workshops aimed at depart- • Equal gender distribution among new employees performance ments with the most customer contact and with a (55/45 – m/f). 2020 predominance of new employees with a focus on • Maintaining the number of flex jobs (2020: 17). preventing and dealing with episodes where cus- • Positive experiences from employing applicants with tomers are abusive, threatening or violent towards a more diverse educational background. employees. • The proportion of female managers is 26% at the end • The Danish Working Environment Authority has car- of 2020. ried out two risk-based inspections – both with green smileys (nothing to report). • The proportion of women on the Group’s management programmes starting in 2020 is 33%. • Update of the Group’s basis for work with the psychosocial working environment (latest research and • No pay differences to be corrected on review of the align with the Group’s Management Model, Values Group’s equal pay statistics. That is to say that for and Employee Survey). roles where there is a difference in pay in favour of either men or women, there are valid grounds for this.

Targets 2021 Continue to ensure a healthy and safe working environ- Increased focus on uncovering potential and concentrat- ment for all employees and focus on preventing violence ing efforts on accelerated development pathways. and threats. Development and organisation of own working environment training in line with the statutory training in the sector.

Societal Lack of job satisfaction among Jyske Bank employees Lack of diversity can potentially lead to the Group not challenges may result in the bank losing valuable and competent em- having the best possible managers and employees with ployees in the long term and finding it difficult to attract both good personal qualities and the necessary profes- new ones. Employee job satisfaction are central to the sional competencies. At the same time, there is a low pro- bank’s success, as it is in their interaction with customers portion of women in the education segments from which that the bank’s business is created and maintained. Focus we normally recruit. on health and well-being helps retain existing employees and attract new ones.

Risks • Poor physical and psychosocial working environment, • Lack of diversity can present challenges in retaining resulting in lack of motivation, stress, increased and attracting qualified employees. absence due to illness or more occupational injuries. • Lack of diversity can result in lower ESG ratings than • Unsafe working environment due to lack of focus on peers, thus limiting access to certain equity and debt preventing occupational injury. investors. • Challenges retaining and attracting qualified employees. • Customers, potential employees and other stakeholders will abandon us if we do not act responsibly.

Governance Medarbejderudvalget [The Employee Committee] is re- Medarbejderudvalget[The Employee committee] is sponsible for the working environment within the Group, responsible for subjects related to diversity within the and Team Arbejdsmiljø [Team Working Environment] Group is responsible for day-to-day operations and development, and ensures compliance with the Danish Working Environment Act.

Policies HR Policy. Diversity Policy.

SDG

3.4 8.8 5.5 8.5 10.3 Responsible banking operations • Sustainability Report 2020 • Page 31 of 44

Sustainable banking operations Social engagement

Objective We want to reduce our negative impact on society and We wish to contribute to the focus on social issues by believe that even small steps help. bringing our own skills and resources into play.

Progress and • We purchased a wind turbine that produces renew- • Supported Folkebevægelsen mod ensomheds performance able energy and covers our own electricity con- [People’s Movement Against Loneliness’s] digital 2020 sumption and our share of JN Data’s and Bankdata’s campaign Danmark Spiser Sammen [Denmark Eats electricity consumption. Together]. • We have set up energy management systems in all • Contributed to FødevareBanken [Danish Food Bank] locations. delivering 1,4 tonnes of surplus food on a daily basis, • 85% of the Group’s IT equipment was recycled in 2020. which has ended up as 3,5 m meals for socially disadvantaged people in Denmark. • 71 tonnes of food waste from our canteens was sent • The Kloge Hænder [Skilled Hands] project has been to bio-waste, reducing CO2 emissions by 51 tonnes. completed in 2020 after three successful pilot pro- • A further 6 electric charging stations have been set jects. up at our branches. These charging stations can be used by everyone. • We have donated furniture to Ringkøbing Station and to Blå Kors Egåhus. • We have reduced our paper consumption by 38%, far exceeding our 2020 target of a 10% reduction.

Targets 2021 • We will offset our CO2 emissions from heating, elec- • Media partner in the Flere i Fællesskaber [More Peo- tricity and the bank’s own vehicles at latest by the end ple in Communities] project and bring attention to of 2022. efforts to combat loneliness. • We will start replacing the bank’s cars with low-emis- • Co-organiser of Danmark Spiser Sammen [Denmark sion vehicles in 2021. Eats Together] in at least three towns. • Arranging five or more events in partnership with the FødevareBanken [Danish Food Bank] to increase the awareness of disadvantaged citizens and food waste.

Societal The world’s CO2 emissions are too high and rapid action is Many people increasingly feel that their social needs are challenges needed to reduce climate change. Major changes need to not being met to a sufficient extent – they have too few be made to achieve Denmark’s target of a 70% reduction close relationships. Before the COVID-19 pandemic, in emissions by 2030 compared with 1990, and finding there were more than 350,000 people over the age of 16 the right path in the transition towards a greener society in Denmark who often felt lonely. Public authorities are can be confusing, but we all need to take action now and not up to the task, which is why partnerships between civil reduce our footprints. society, the public sector and companies are necessary.

Risks • Our electricity consumption can significantly • Our reputation will be at risk if Jyske Bank does not increase as a result of higher outdoor temperatures participate actively enough in partnerships or if in the summer, challenging the bank’s target of projects are not implemented and expectations are

offsetting its CO2 emissions and leading to additional thereby not met. costs even though we are actively working to reduce • A lack of internal and external understanding of the consumption through, for example, energy optimisa- project objectives due to the long-term perspective. tion. • Lengthy implementation horizon caused by having to • Clients and other stakeholders will take their business coordinate efforts among many partners. elsewhere if we do not live up to their expectations of the actions a company should take in terms of green transition, both when it comes to our own buildings and when purchasing products and services from external suppliers.

Governance The Sustainability Committee is responsible for realising Our work with our partners is consolidated in the IR & the bank’s ambitions. Sustainability department.

Policies Policy on Sustainability and Corporate Social Policy on Sustainability and Corporate Social Responsibility. Responsibility. Procurement Policy. Responsible supplier conduct.

SDG

7.2 12.3 13.2 2.1 3.4 8.6 12.3 17.17 12.5 Responsible banking operations • Sustainability Report 2020 • Page 32 of 44

Healthy corporate culture

Objective To minimise the risk of the bank being misused in any way for financial crime, including money laundering, financing of terrorism, tax evasion, dividend fraud, social fraud and other unlawful acts

Progress and In 2020, we increased the specialisation of our private performance advisors. Following a change in the organisation of the 2020 personal clients area, there are now advisors special- ized in the following areas: housing, credit, investment and pension. This contributes to ensuring qualified and value-creating advice.

Targets 2021 All employees to complete mandatory Money Laundering training (completed every two years) Focus on education in sustainable investment, including the integration of ESG preferences in advisory processes and tools.

Societal Jyske Bank is obliged to continually analyse the risks to challenges which the bank is exposed. Documentation requirements and clarifying questions that may be experienced nega- tively by the customer must therefore be balanced in relation to the role of the advisor, who is committed to and wishes to provide responsible and value-creating advice.

Governance At the end of the year, Money Laundering and Sanctions carry out an assessment of the content and effective- ness of the policy and ensure relevant changes and clarifi- cations are made in policy, methods and activities. Implementation and compliance with the healthy corporate culture policy is included in the Chairman of the Supervisory Board’s report to the annual general meeting.

Risks • Customers, potential employees and other stakeholders will abandon us if we do not act responsibly. • If greater consideration is given to earnings than compliance with legislation, this could impose an unnecessary high financial risk on the bank. • A lack of transparency and the opportunity to report suspicious circumstances could result in any criminal offences being discovered at a late stage, resulting in financial losses and damage to our reputation. • Mis-selling and/or failure to comply with good practice could result in bad publicity, losing customers and potential lawsuits over liability.

Policies Healthy Corporate Culture Policy Anti-Bribery and Corruption Policy Whistleblower Policy Tax Policy Policy for managing conflicts of interest Competency requirements, good practice and ethical conduct

SDG

8.10 16.4 16.5 Policies, principles and key figures • Sustainability Report 2020 • Page 33 of 44

Policies and principles

Policies Our policies are central to our work on sustainabilily. The policies that have a particularly great impact on our work are listed below.

General Policy on Sustainability and Corporate Social Responsibility

Sustainable business Credit Policy Responsible Investments Policy

Responsible banking Anti-Bribery and Anti-Corruption Policy Diversity Policy Policy for preventing money laundering, financing of terrorism and sanctions violations Whistleblower Policy Tax Policy Healthy Corporate Culture Policy Policy for managing conflicts of interest HR Policy IT Security Policy Privacy Policy Remuneration Policy Freedom of Association and Collective Agreement Policy Procurement Policy

Principles Our work on sustainability and corporate social responsibility is based on a number of national and internal standards.

Since 2016, Jyske Bank has been committed to the UN Global Compact corporate responsibility initiative and its principles in the areas of human rights, labour, the environment and anti-corruption.

20 recommendations from the Forum for Sustainable Finance Policies, principles and key figures • Sustainability Report 2020 • Page 34 of 44

Key figures

Unit 2020 2019 2018 2017 2016

Environmental data Scope 1 tonne CO2e 738 759 - - - Scope 2 tonne CO2e 6,082 6,567 - - - Scope 3 tonne CO e 705 1,464 - 2 - - Energy consumption GJ 92,342 91,844 - Energy intensity per FTE GJ/FTE 23 18 - - - Proportion of renewable energy % 86 83 - - -

Social data Full-time equivalents at end of year FTE 3,349 3,614 3,723 3,971 3,981 Gender diversity % 48.0 49.3 49.7 51.0 50.9 Gender diversity in management % 26.4 29.4 29.3 30.9 30.3 Pay difference between genders Times 1.18 1.18 1.16 1.17 1.17 Employee turnover % 14.7 10.7 11.4 9.4 10.9 Sickness-related absence Days/FTE 5.3 5.5 5.7 5.6 5.2 Taxes paid DKK million 1,153 1,378 1,075 1,289 1,177

Management data Supervisory Board gender diversity % 36.4 27.3 33.3 33.3 30.0 Attendance at Board meetings % 97.3 93.4 93.1 91.8 92.2 P a y d i ff e r e n c e b e t w e e n C E O a n d e m p l o y e e s Times 14.9 13.8 15.0 16.1 11.8

Jyske Bank has chosen to update data and have dialogue with selected ESG raters. We regularly consider which ESG raters are most relevant to Jyske Bank.

ESG ratings Score Comment

Sustainalytics Medium Risk Jyske Bank is in the top 40% of best-rated financial institutions.

MSCI A Jyske Bank is in the top 50% of financial institutions.

ISS ESG C- Jyske Bank is one of the 20% best-rated financial institutions.

CDP C The financial sector’s average score is B

Note: Jyske Bank also updates data on Nasdaq’s platform.

Jyske Bank is included in the Bloomberg Gender-Equality Index.

The Index is an international standard for publication and reporting on data within five gender diversity areas: Female leadership & talent pipeline, Equal pay & gender pay parity, Inclusive culture, Sexual harassment policies and Pro-women brand. Policies, principles and key figures • Sustainability Report 2020 • Page 35 of 44

Accounting policies

Environmental Data 2 as well as energy from renewable energy relation to the average number of employees sources. as at 01/01/2020 and 31/12/2020. The CO2e emission’s calculation is broken down in accordance with the GHG protocol Energy intensity per FTE scope 1–3 definitions. Sickness-related absence Total energy consumption for 2020 divided by All environmental data in the calculation con- Total number of employee sick days in relation the number of full-time equivalents (FTE) as at sist of data for the Jyske Bank Group as well to FTE. Employee sick days include the em- 31/12/2020. as Jyske Bank’s ownership interests in JN Data ployee’s own sick leave, child illness and partial and Bankdata. illness. Maternity leave is not included. CO2e emission factors from the Danish Renewable energy share Business Authority’s CO calculator are used 2 The calculation only contains energy from Taxes paid for conversion into emissions unless stated electricity and heating, and is calculated on the The Jyske Bank Group’s total tax payments, otherwise. basis of the general energy mix for electricity including property tax, VAT, payroll tax and Consumption data is provided for the period and district heating for 2019 calculated by expensed corporation tax. 01/01/2020 to 31/12/2020. Energinet and Dansk Fjernvarme. In addition, production of renewable energy from Jyske Scope 1 Banks Vindmølle A/S from 01/07/2020 to Management data

CO2e emissions come from heating with 31/12/20 20 is included, and purchased The management data covers data for natural gas and oil, and driving the bank’s own Renewable Energy Certificates are included the Jyske Bank Group only. Management vehicles. 62% of the emissions from journeys in the renewable energy share calculation for data is provided as at 31/12/2020. driven using the bank’s own vehicles is cal- electricity. culated on the basis of data for the individual vehicle model; for the remaining journeys 135 Social data Supervisory Board gender diversity gr CO2 per km is used as the conversion factor. Social data regarding employees, manage- Proportion of female Board members in ment, salaries etc. only covers the Jyske Bank relation to the number of members of the Scope 2 Group. Unless otherwise stated, social data is Supervisory Board. Members elected by the employees are included in the calculation. CO2e emissions from district heating and provided as at 31/12/2020. electricity from external suppliers. CO2e emissions for electricity have been calculated Full-time equivalents (FTE) Attendance at Board meetings for the entire period, although Jyske Bank pur- Full-time equivalents include permanent and The number of Board meetings at which the chased a wind turbine on 01/07/2020, which temporary employees. individual Board member has been present, in produces electricity equivalent to the Group’s relation to the number of Board meetings held. consumption. Gender diversity 16% of Jyske Bank’s heat consumption for Pay difference between CEO and 2020 has been estimated based on 2019 Number of women compared to number of employees consumption, as this consumption concerns employees. Permanent and temporary em- properties that Jyske Bank occupies for rent, ployees are included in the calculation. CEO’s total remuneration (including retirement and heating statements have not yet been remuneration) in relation to median salary for received for 2020. Gender diversity in management employees. The number of female managers in propor- Scope 3 tion to the total number of managers at the bank. Managers are defined as members of CO2e emissions regarding flights, taxis, trains and work-related journeys in employee the Executive Board and employees with cars and emissions based on paper con- personnel responsibility and/or professional sumption. Air traffic conversion factors have responsibility. been received from HRG and train transport conversion factors have been provided by Din Pay difference between genders Offentlige Transport [Your Public Transport]. Median pay for men in relation to median pay For remaining entries, Erhvervsstyrelsens for women. [the Danish Business Authority’s] factors have been applied. Employee turnover The turnover is calculated as the number of Energy consumption employees who have left during the year in Total energy consumption from scopes 1 and Policies, principles and key figures • Sustainability Report 2020 • Page 36 of 44

Reporting and Self-Assessment Requirements High-level summary of bank’s response Reference(s)/ Link(s) to bank’s full response/relevant information

Principle 1: Alignment We will align our business strategy to be consistent with and contribute to individuals’ needs and society’s goals, as expressed in the Sustainable Development Goals, the Paris Climate Agreement and relevant national and regional frameworks.

1.1 Describe (high-level) your bank’s business Jyske Bank has Denmark as the focal point of the Sustainability Report 2020, model, including the main customer segments Group’s business model and has only limited busi- Business Model p. 5 served, types of products and services pro- ness activities with customers outside of Denmark. vided, the main sectors and types of activities, However, the underlying investing activities for and where relevant the technologies financed Jyske Bank’s customers are global by nature. across the main geographies in which your bank has operations or provides products and Jyske Bank has a full-service set-up for Danish cus- services. tomers and a nationwide network of branches.

Jyske Bank’s main activities consist of: Banking, mortgage and investing activities for private customers, private banking customers and business customers, as well as trading and investing activities aimed at large business customers and in- stitutional clients as well as automotive and equipment leasing and financing activities for business.

Jyske Bank has a market share of approx. 11%.

1.2 Describe how your bank has aligned and/or In 2020, Jyske Bank has been particularly focused Sustainability Report 2020, is planning to align its strategy to be consist- on further developing its view of sustainable busi- Strategy p. 8 ent with and contribute to society’s goals, as ness. This work has resulted in the overall approach expressed in the Sustainable Development that “All progress counts”. Policy on Sustainability and Goals (SDGs), the Paris Climate Agreement, Corporate Social Responsi- and relevant national and regional frameworks. Taking this approach, we work both on the respon- bility pp. 2–5 sible activities, which are already integrated into the www.investor.jyskebank. bank’s operations, and with a strengthened focus com/investorrelations/gov- on how we can promote sustainability through ernance/code-of-conduct business activities such as lending and investing. In other words, we focus on supporting customer progress and facilitating customers’ sustainable choices and decisions. At present, there is a particular focus on the climate, which is a significant impact area for Jyske Bank. Policies, principles and key figures • Sustainability Report 2020 • Page 37 of 44

Principle 2: Impact and Target Setting We will continuously increase our positive impacts while reducing the negative impacts on, and managing the risks to, people and environment resulting from our activities, products and services. To this end, we will set and publish targets where we can have the most significant impacts.

2.1 Impact Analysis: Jyske Bank published its first impact analysis in Sustainability Report 2020, Show that your bank has identified the areas in 2020. The analysis is based on the UN’s Portfolio Impact analysis p. 11 which it has its most significant (potential) positive Impact Analysis Tool for Banks. The tool targets Simplifies sustainable in- and negative impact through an impact analysis loan activities, but Jyske Bank has chosen to also vestment easy pp. 14–17 that fulfils the following elements: use it as a starting point for identifying the impact Offers financing solutions areas for investing activities. that support sustainable a) Scope: The bank’s core business areas, prod- transition, p. 12 ucts/services across the main geographies The analysis materially covers the overall scope of that the bank operates in as described under Jyske Bank’s main activities as described in point PRB Impact analysis 1.1. have been considered in the scope of the 1.1. pp. 5–7 analysis. www.investor.jyskebank. The analysis shows that Climate is a significant im- com/investorrelations/sus- b) Scale of Exposure: In identifying its areas of pact area for Jyske Bank and Denmark. In addition, tainability most significant impact the bank has consid- Waste and Soil Quality have also been identified as ered where its core business/its major activities significant negative impact areas. The key positive lie in terms of industries, technologies and impact areas are Housing, Climate and Inclusive, geographies. sound economies. c) Context & Relevance: Your bank has taken into account the most relevant challenges and In the analysis, we have continued to quantify the priorities related to sustainable development in impact from Climate. This has been done by esti- the countries/regions in which it operates. mating CO2e emissions for the scope of business d) Scale and intensity/salience of impact: In iden- covered, consisting of loans and investments. tifying its areas of most significant impact, the bank has considered the scale and intensity/ We have currently designated a number of sustain- salience of the (potential) social, economic able lending areas within the Group’s Green Finance and environmental impacts resulting from the Framework, increasing positive impact in relation to bank’s activities and provision of products and climate initiatives. services. (your bank should have engaged with relevant Jyske Bank also offers products such as energy stakeholders to help inform your analysis under loans and equity funds with a focus on sustainable elements c) and d)) development for both private and professional investors.

Show that, building on this analysis, the bank has • Identified and disclosed its areas of most significant (potential) positive and negative impact • Identified strategic business opportunities in relation to the increase of positive impacts/ reduction of negative impacts

Please provide your bank’s conclusion/statement if it has fulfilled the requirements regarding Progress on Implementing the Principles for Responsible Banking.

We have completed our first impact analysis. The analysis materially covers our entire scope of business. Having identified the most significant

impact areas, we quantified the impact for Climate in the form of estimated CO2e emissions. Going forward, we will focus on identifying further

business opportunities based on the analysis and also further develop our methods for investments and improving data quality for CO2e data. Waste is the next impact area that we will analyse in greater detail. Policies, principles and key figures • Sustainability Report 2020 • Page 38 of 44

2.2 Target Setting At present, Jyske Bank has the following sustaina- Sustainability Report 2020, bility targets: Targets p. 9 Show that the bank has set and published a Offers financing solutions minimum of two Specific, Measurable (can be Sustainable targets 2020 that support sustainable qualitative or quantitative), Achievable, Rele- 1. Financing of 4 TWh renewable energy produc- transition, pp. 12–13 vant and Time-bound (SMART) targets, which tion by 2025. address at least two of the identified “areas 2. 40% of new lending for the financing of vehicles Green Finance Framework of most significant impact”, resulting from the shall be for low-emission vehicles by 2025. pp. 5–10 bank’s activities and provision of products and www.investor.jyskebank. 3. Jyske Bank will develop products that assist and services. com/investorrelations/sus- motivate clients to renovate their properties in tainability a way that increases their energy performance. Show that these targets are linked to and drive alignment with and greater contribution to appropriate Sustainable Development Goals, Responsible banking operations targets 2020 the goals of the Paris Agreement, and other 1. Offsetting CO2 emissions from electricity by relevant international, national or regional producing our own renewable energy. frameworks. The bank should have identified a baseline (assessed against a particular year) New targets 2021 and have set targets against this baseline. 1. An extra DKK 10 bn to finance sustainable commercial properties by 2025, from DKK 30 Show that the bank has analysed and acknowl- bn to DKK 40 bn edged significant (potential) negative impacts 2. Offsetting CO emissions from electricity, of the set targets on other dimensions of the 2 heating and company cars by producing our SDG/climate change/society’s goals and that it own renewable energy by the end of 2022. has set out relevant actions to mitigate those as far as feasible to maximize the net positive impact of the set targets. The current targets all aim to make a positive contribution to the climate initiative.

The impact analysis is based on 2019 figures and the analysis results represent our baseline and we will update these targets on the basis of results, including determining milestones for sustainable business targets.

Please provide your bank’s conclusion/statement if it has fulfilled the requirements regarding Target Setting.

For the time being, we will continue with our targets set for sustainable business and sustainable banking operations. The targets will be updated in 2021. This will be done based on the impact analysis carried out. Policies, principles and key figures • Sustainability Report 2020 • Page 39 of 44

2.3 Plans for Target Implementation and Monitor- Jyske Bank’s Sustainability Committee follows up Sustainability Report 2020, ing on measures established on a quarterly basis and Governance p. 10 targets set on a bi-annual basis. Show that your bank has defined actions and milestones to meet the set targets. The Board has sustainability on the agenda on a quarterly basis. Show that your bank has put in place the means to measure and monitor progress against the set targets. Definitions of key performance indicators, any changes in these definitions, and any rebasing of baselines should be transparent.

Please provide your bank’s conclusion/statement if it has fulfilled the requirements regarding Plans for Target Implementation and Monitoring.

Jyske Bank has established overall targets and will follow up on these on a quarterly and bi-annual basis respectively. Going forward, several specific measures are being implemented for sustainable business in the individual business units, providing more opportunities to follow progress in each unit.

2.4 Progress on Implementing Targets Sustainable business: Sustainable business: 1. Jyske Bank has financed an additional 0.51 TWh Sustainability Report 2020, For each target separately: of renewable energy in 2020. Offers financing solutions 2. Due to the change from the New European that support sustainable Show that your bank has implemented the Driving Cycle (NEDC) to the new standard transition, pp. 12–13 actions it had previously defined to meet the WLTP (Worldwide Harmonised Light Vehicle set target. Test Procedure), progress for 2020 has not Green Finance Framework been reported. Report 2020 p. 4 Or explain why actions could not be imple- www.investor.jyskebank. 3. Jyske Bank offers energy loans and land pur- mented/needed to be changed and how your com/investorrelations/sus- chase credits to private customers who wish to bank is adapting its plan to meet its set target. tainability carry out energy renovations. We offer a CO 2 calculator through the “Best Home” app Report on your bank’s progress over the last 12 Responsible banking months (up to 18 months in your first reporting operations after becoming a signatory) towards achiev- Responsible banking operations: Sustainability Report 2020, ing each of the set targets and the impact 1. Offsetting the CO2 emissions from electrici- Sustainable banking opera- your progress resulted in (where feasible and ty – completed, Jyske Bank purchased a wind tions p. 25 appropriate, banks should include quantitative turbine in the summer of 2020. disclosures).

Please provide your bank’s conclusion/statement if it has fulfilled the requirements regarding Impact Analysis.

2020 has offered progress on all the targets set, and the targets are expected to be met by 2025. Jyske Bank will continue to set more targets and, as mentioned in point 2.2. above, will update targets in continuation of the impact analysis. Policies, principles and key figures • Sustainability Report 2020 • Page 40 of 44

Principle 3: Clients and Customers We will work responsibly with our clients and our customers to encourage sustainable practices and enable economic activities that create shared prosperity for current and future generations.

3.1 Provide an overview of the policies and practic- Through our policies and our approach to our Sustainability Report 2020, es your bank has in place and/or is planning to customers, we ensure a relationship characterised Healthy Corporate Culture put in place to promote responsible relation- by responsibility, by emphasising a high level of pp. 27–28 ships with its customers. This should include competency for employees, transparency of our high-level information on any programmes and products and financial solutions, a healthy corpo- actions implemented (and/or planned), their rate culture and continuous focus on combatting scale and, where possible, the results thereof. financial crime and misuse of the bank.

As a financial services company, there are a number of regulatory requirements that the bank meets and that form the basis for our interactions with customers. The Executive Order on Good Business Practice for Financial intitutions helps to generate the necessary confidence that Jyske Bank will not use misleading or incorrect information or omit important information that could affect customers’ behaviour.

3.2 Describe how your bank has worked with In 2020, we introduced an equity fund focused on Sustainability Report 2020, and/or is planning to work with its clients and sustainable development for both retail and profes- Offers financing solutions customers to encourage sustainable practices sional customers, as well as energy loans and land that support sustainable and enable sustainable economic activities. purchase credits for homeowners. In early 2021, transition, pp. 12–13 This should include information on actions we started to issue payment cards made from 85% Simplifies sustainable in- planned/implemented, products and services recyclable plastic, and we have just launched Jyske vestment easy pp. 14–17 developed, and, where possible, the impacts Kort Rente Grøn, our first green mortgage product Provides knowledge about achieved. for corporate clients. Our ambition is to have sus- sustainability, pp. 18–19 tainable solutions for all essential business areas by the end of 2021.

In 2020, we focused on two areas in particular in our communication with our customers: • Energy renovation of homes • Best practice for businesses – a series of brief company portraits that tell the stories of our customers who have successfully integrated sustainability into their business models.

We have also been focusing on new methods and workflows in the area of sustainable investment, ensuring that we can display sustainability-related data in the future about those companies customers choose to invest in. Policies, principles and key figures • Sustainability Report 2020 • Page 41 of 44

Principle 4: Stakeholders We will proactively and responsibly consult, engage and partner with relevant stakeholders to achieve society’s goals.

4.1 Describe which stakeholders (or groups/types Jyske Bank participates in many committees and Sustainability Report 2020, of stakeholders) your bank has consulted, working groups at Finance Denmark, including the Role in Society p. 6-7

engaged, collaborated or partnered with for Working Group for Sustainable Finance and the CO2 the purpose of implementing these Principles working group. The focus of the Working Group and improving your bank’s impacts. This should for Sustainable Finance is on the overall agenda. In

include a high-level overview of how your bank 2020, the focus of the CO2 working group was on

has identified relevant stakeholders and what preparing the framework CO2 model. issues were addressed/results achieved. We have also taken the initiative to form a PRB group under the auspices of FIDA, where we have entered into a dialogue with “Our goals” (a project run by Statistics Denmark and Deloitte), which aims to “translate” the SDGs into a Danish context.

In addition to committees and working groups in the Danish sector, Jyske Bank participates in EBA working groups and a number of industry-specific initiatives and networks. For example, the Agricul- tural Advisory Board. Policies, principles and key figures • Sustainability Report 2020 • Page 42 of 44

Principle 5: Governance & Culture We will implement our commitment to these Principles through effective governance and a culture of responsible banking

5.1 Describe the relevant governance structures, Jyske Bank’s Supervisory Board has apporved Sustainability Report 2020, policies and procedures your bank has in place/ a policy for sustainability and corporate social Governance p. 10 is planning to put in place to manage significant responsibility. positive and negative (potential) impacts and Policy on Sustainability and support effective implementation of the Princi- The Supervisory Board has the overall Corporate Social Responsi- ples. responsibility for the strategy for sustainability and bility, p. 6 corporate social responsibility. www.investor.jyskebank. The Executive Board has day-to-day responsibility com/investorrelations/gov- across the Group and ensures implementation and ernance/code-of-conduct compliance with the policy.In practice, the monitoring of this responsibility has been delegated to the Green Finance Framework Sustainability Committee. www.investor.jyskebank. Sustainability is an integral part of the operations com/investorrelations/sus- and business development in all parts of the Group, tainability and all units in the organisation contribute to implementing the strategy and compliance with Jyske Bank’s sustainability objectives. The IR and Sustainability Department is responsible for driving and coordinating the overall agenda.

Sustainable lending areas are dealt with by the Green Finance Framework Committee.

5.2 Describe the initiatives and measures your Sustainability was one of five themes in the “Christ- Sustainability Report 2020, bank has implemented or is planning to mas letter” from Jyske Bank’s CEO, Anders Dam. In Healthy Corporate Culture implement to foster a culture of responsible internal communication, we are focusing on putting p. 27-28 banking among its employees. This should Jyske Bank’s approach to sustainability into the include a high-level overview of capacity context of PRB and sustainability as expressed in Remuneration Policy building, inclusion in remuneration structures the 17 sustainable development goals and building www.investor.jyskebank. and performance management and leadership up a knowledge of these. It is also important for us com/investorrelations/gov- communication, amongst others. that the individual business initiatives are perceived ernance/code-of-conduct as part of our overall efforts. The latter takes place through co-ordination with the implementation department and development organisation.

We do not have performance-related pay at Jyske Bank, nor with regard to sustainability/ESG.

5.3 Governance Structure for Implementation of Please refer to the description of our governance Sustainability Report 2020, the Principles structure under point 5.1. above. Governance p. 10 Show that your bank has a governance structure in place for the implementation of the PRB, including: a) target-setting and actions to achieve targets set b) remedial action in the event of targets or milestones not being achieved or unexpected negative impacts being detected.

Please provide your bank’s conclusion/statement if it has fulfilled the requirements regarding Governance Structure for Implementation of the Principles.

We have established a sustainability management and organisation to ensure the implementation of PRB. This also includes the setting of targets and following up on these. This implementation is managed by the Investor Relations and Sustainability department in cooperation with sustainablity leads in the individual business unit within the Group. The Sustainability Committee’s quarterly meetings serve as a focal point for the ongoing follow-up work and assessment of the level of ambition and principles for the Group’s sustainability efforts. The Supervisory Board receives quarterly reports. Policies, principles and key figures • Sustainability Report 2020 • Page 43 of 44

Principle 6: Transparency & Accountability We will periodically review our individual and collective implementation of these Principles and be transparent about and accountable for our positive and negative impacts and our contribution to society’s goals.

6.1 Progress on Implementing the Principles for We are in the process of updating our policy for Sustainability Report 2020, Responsible Banking responsible procurement and the policy for respon- Strategy p. 8 sible investments will also be updated. Show that your bank has progressed on im- Sustainble banking opera- plementing the six Principles over the last 12 In 2021, we will formulate a climate, environment tion p. 25 months (up to 18 months in your first reporting and energy policy as an overall framework for our after becoming a signatory) in addition to the work on sustainable banking operations. Simplifies sustainable setting and implementation of targets in mini- investment p. 14-17 mum two areas (see 2.1-2.4). This will help to support us in leading the way with regard to sustainability in our own activities and – in Show that your bank has considered existing addition to our focus on climate in a sustainable and emerging international/regional good prac- business – we want to contribute to the overall tices relevant for the implementation of the six climate and environmental agenda by motivat- Principles for Responsible Banking. Based on ing employees and partners in order to increase

this, it has defined priorities and ambitions to awareness of the problem and help to reduce CO2 align with good practice. emissions.

Show that your bank has implemented/is work- In connection with setting and updating targets, ing on implementing changes in existing prac- including alignment with the Paris Climate Agree- tices to reflect and be in line with existing and ment, we are exploring the possibilities of using emerging international/regional good practices Science Based Targets. and has made progress on its implementation of these Principles. In 2021, the focus will be on climate risks, including stress tests. In connection with this, we will consider whether it will be relevant to accede to international frameworks and/or principles.

Please provide your bank’s conclusion/statement if it has fulfilled the requirements regarding Progress on Implementing the Principles for Responsible Banking.

Since signing the PRB in September 2019, Jyske Bank has applied the principles as an overall framework for its work on integrating sustainability into both its own and customer-oriented activities such as: Strategy, governance structure, organisation, impact analysis, the introduction of

sustainable products/solutions, the purchase of a wind turbine to offset CO2 emissions from electricity consumption and internal commu-

nication. In 2021, we will focus on the next step towards sustainable banking operations– offsetting CO2 emissions from electricity, heating and company cars, updating our sustainable business targets, expanding our scope of business within both investing and lending activities in sustainability-promoting areas, and conducting an impact analysis based on 2020 data. Policies, principles and key figures • Sustainability Report 2020 • Page 44 of 44

Would you like to know more

Questions and comments We appreciate questions and comments and they can be directed to [email protected] or to

Jyske Bank IR and Sustainability Vestergade 8-16 DK-8600 Silkeborg

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This report covers the following companies within the Jyske Bank Group Section title • Report on Sustainability 2020 • Page 45 of 40

Jyske Bank Vestergade 8-16 8600 Silkeborg, Denmark CVR no. 17 61 66 17

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