This is how we exercise our active ownership

As one of the Nordic region's largest asset managers, it is our responsibility to act long-term and as active owners. We are convinced that companies that work with managing the environment, business ethics and social responsibility will be more successful in the short and long term. The purpose of our active ownership is to safeguard the unitholders' common interest in ownership issues and influence the companies in their sustainability work and bring about change.

In Swedish companies where we are often among the largest owners, we have direct dialogues with the companies' managements and boards. Dialogues about areas for improvement in companies can, for example, be about management systems, risks and opportunities linked to the environment, social aspects and business ethics. We focus on remuneration programs and diversity on boards, with women's representation as an example.

By collaborating with other investors, we can generate a greater impact in our dialogues with companies outside the Nordic region. We collaborate with different actors who conduct dialogues with companies in several areas of sustainability, often with a direct connection to the global sustainability goals. We also engage in thematic collaborations to drive issues that are important to our customers. When investing outside the Nordic countries, we collaborate with Federated Hermes EOS, one of the world's leading player in corporate dialogues, who has continuous dialogues directly with company managements and boards. Through the collaboration with other asset managers under Federated Hermes EOS's management, we have the potential to become even more successful in the ownership dialogues with foreign companies, where we normally have a smaller ownership share.

In 2020, SEB Investment Management had over 2000 dialogues related to sustainability. One example is the issue of deforestation in the Amazon, where we participated in a dialogue with the Central Bank of Brazil, the Vice President and several members of parliament.

Work in nomination committees and with general meetings

Corporate governance takes place, among other things, through our participation in nomination committees in the companies where we are large owners. We also participate in general meetings and exercise our funds' voting rights. Our ambition is to participate in general meetings where we are large owners and in cases where the administration has a great interest in the company.

Our view is that companies that work actively to manage the environmental, social and business ethics effects of their operations have a greater chance of being successful. A clear focus on sustainability therefore benefits the companies' long-term development and return. SEB Investment Management's Principles for Ownership Engagement and Sustainability Policy act as a framework for how ownership issues are handled and describe the requirements we place on companies in which we invest.

Corporate governance includes issues relating to renumeration policies, incentive programs, capital structure and sustainability. Sustainability primarily includes our dialogues with companies and our advocacy work.

At the same time, SEB Investment Management works for a broad anchoring of the Swedish Code of Corporate Governance and collaborates with other institutions to achieve broad support for our issues.

Owner dialogues with IIGCC, PRI and CDP

Our main focus areas in our engagement work with other investors within the framework of IIGCC, PRI and CDP in 2021 are as follows;

• Climate; with a focus on the 160 companies in the world that are responsible for the largest greenhouse gas emissions

• Climate; with a focus on water

• Climate; with a focus on palm oil

• Human rights with a focus on access to medicine in developing countries

The time perspective for our dialogues

The time perspective for our dialogues varies depending on the issues being discussed, the industry and the company. SEB IM strives to complete the dialogues for the foreseeable future, but is at the same time aware of dependencies, ownership issues and local conditions. We strive to complete corporate dialogues within 24 months, although it is not uncommon for corporate dialogues to take longer.