EQ: EQ Oyj : Group - Sustainability Report 2024

Sustainability at eQ Group in 2024 1 Sustainability Sustainability at eQ Group in 2024 2 Sustainability is present and evolving in everything eQ does This is the eighth time we are publishing a Sustainability Report as part of our Annual Report. It is very important for us to report transparently on the implementation of sustainability in our business. We have also long actively encouraged our investees to report on sustainability and to improve the content and quality of their reports. Our values, "honest, open, competent and efficient", guide the work of every eQ employee and constitute the foundation for daily co-operation with clients, partners and other key stakeholders. Both customer satisfaction of our largest customers (SFR) and staff satisfaction (our own biannual survey) remained at excellent levels in 2024. It is also very important to us that every eQ employee has a good level of knowledge and up-to-date information on sustainability matters. In 2024, training topics included an update on the EU Sustainable Finance Disclosure Regulation and EU Taxonomy Regulation, the success of eQ real estate funds in the GRESB assessment, and the concepts of greenwashing and sustainability risks and how to identify and monitor them. Sustainability within the Group is at an excellent level. As a result of the successful sustainability performance at Group level, eQ Plc has been given the international ISS ESG Prime responsibility rating. At the end of 2024, eQ Asset Management once again achieved excellent results in the latest PRI assessment. We clearly outperformed the median in all of the investment areas we report. eQ's listed equities, corporate bonds and real estate investments have been among the best (five stars) for some time. Private equity investments were recognised for their excellent ESG performance by returning a five-star rating. In this eQ's Sustainability Report we present the most important events concerning ESG matters in 2024 regarding our various asset classes. More detailed ESG information is available in our fund-specific ESG reports, and for our portfolio clients we report the ESG performance of the entire portfolio in aggregated form. The theme of eQ's fixed income and equity investment engagement work in 2024 was human rights. eQ carried out a human rights survey for funds' investments for which no thematic information was available through MSCI. The answers provided important further information about the companies' situation and future plans for the implementation and monitoring of human rights. The human rights survey carried out in the spring shows the importance of the portfolio manager's own ESG activities and engagement work in the portfolio. A new engagement theme we have planned for spring 2025 is a survey on the implementation of biodiversity in our investments. All in all, 2024 was an active year from the perspective of ESG activities and a great deal of concrete development work was carried out. The real estate investment team carried out for the first time the verification of the energy consumption and emissions calculation of eQ's real estate funds, performed a Greenhouse Gas Protocol Standard (GHG) emissions calculation for all real estate properties and conducted a CRREM (Carbon Risk Real Estate Monitor) assessment for eQ's real estate properties. The aim of the CRREM assessment is to identify which properties are in line with the 1.5°C climate targets of the Paris Agreement. During 2024, eQ continued and deepened its strong core commitment to sustainability also in its private equity investments. The European funds launched in early 2024 (eQ PE XVI North and eQ PE SF V funds) will be eQ's first private equity funds to be classified as SFDR Article 8 funds. This is based on a well-defined methodology, with eQ's own ESG assessment framework at its core. In the same context, eQ introduced a systematic due diligence process for good governance of its investments. In late spring, eQ joined the ESG- Data Convergence Initiative (EDCI), which aims to bring meaningful and practical ESG metrics to the venture capital industry. We are already looking ahead to 2025 with great interest. Our own systematic and concrete sustainability work continues in all our investment areas. We will also closely monitor the roll-out of the Corporate Sustainability Reporting Directive (CSRD), which will enter into force at the beginning of 2024 for large listed companies. eQ Plc will also be included in sustainability reporting in 2025 and will publish its first report in 2026. It is time to thank our customers and partners. You challenge us to reflect on topical new sustainability issues and trends and to develop our approach on this basis. We look forward to continuing to meet this challenge. We hope you enjoy reading our 2024 Sustainability Report. Sanna Pietiläinen Director, Responsible Investing Sustainability at eQ Group in 2024 3 Sustainability Report 2024 eQ Group's values Sustainability and its reporting in eQ Group eQ Group is a Finnish group of companies that concentrates on asset management and corporate finance business. The parent company eQ Plc's shares are listed on the main board of Nasdaq Helsinki. Sustainability reporting describes eQ Group's role as a responsible actor in relation to its stakeholders and society at large. eQ wishes to ensure the transparency and openness of its operations by reporting on its sustainability work and its development regularly and extensively. Even though eQ Group, based on its size and operations, is not obliged to draw up a non-financial report required by the Finnish Accounting Act, since 2017 the Board of Directors of eQ Plc has decided to voluntarily report on its sustainability to shareholders, clients and other major stakeholders. eQ Group's 2024 Sustainability Report has been approved by the eQ Plc's Board of Directors, and it is published as part of the 2024 Annual Report. eQ Group's responsible operations Responsible operations are a key part of eQ's entire business. We act in a responsible and sustainable manner as eQ Group and integrate this work systematically and in practice to eQ Asset Management's investment operations and Advium's corporate finance operations. eQ's values (below) are at the core of the Group's work culture. They guide the work of each eQ employee and constitute the foundation for daily co-operation with clients, partners and other key stakeholders. HONEST OPEN We are honest and reliable, We are easily approachable true to our word. We act and discuss all matters correctly and responsibly. We openly. We do not cover up comply with the regulation mistakes or problems, we of the financial industry and learn from them. We rejoice eQ's joint rules. successes together. We also respect dissimilarity. COMPETENT EFFICIENT We want to understand our We do what we promise clients' needs. We constantly briskly and carefully. We develop our professional do the work; we do not skills and procedures. We simply talk and plan. We dare to question matters. We work diligently and with an share information, provide uncompromising attitude assistance and give feedback. together with our clients, colleagues and partners. Sustainability at eQ Group in 2024 4 eQ encourages the companies in which it invests to provide transparent stakeholder information and develop their sustainability reporting, regardless of the size of the company or the regulatory requirements. More information about sustainability, the related principles and other relevant documents can be found on eQ's website ( https://www.eq.fi/en/about-eq-group/sijoittajat/vastuullisuus ). Sustainability themes eQ has identified in its own business four essential areas that create the framework for sustainability. The sustainability themes have been approved by eQ Plc's Board of Directors. The section below describes in detail what these four themes mean in practice. At Group level, the Management Team is responsible for sustainability, and the work is conducted in close co-operation with eQ's Director for Responsible Investment. eQ Plc's Board of Directors receives annual reports on how sustainability has been carried out within the company as well as on future development plans. Training related to sustainability We provide our employees with continuous training in sustainability matters. Items on the training agenda in 2024 included a review of the EU Sustainable Finance Disclosure Regulation and the Taxonomy Regulation from eQ's perspective, the success of the real estate funds in the GRESB assessment, the concept of greenwashing and sustainability risks, their manifestation and monitoring. In its induction programme, eQ commits new employees to comply with and implement eQ's principles and procedures on responsible investing. During 2024, four responsibility induction training sessions were held for new employees. New employees complete e-learning on the Code of Conduct as part of their induction. Sustainability within the Group is at an excellent level GOOD GOVERNANCE CLIENTS THE ENVIRONMENT PERSONNEL • Adherence to the law, internal • An honest, open, competent and • Green electricity in our • Wellbeing at work and monitoring instructions, policies (such as efficient partner to eQ's clients own premises of job satisfaction the policy on conflicts of interest) • In-depth understanding of • Environmentally friendly • Equality and diversity and Code of Conduct customer needs and meeting guidelines for employees • Early support programme, • Transparent reporting on these needs • Location of the premises, travel programme on substance abuse costs also • Monitoring customer satisfaction ticket as employee benefit, and and gaming addiction • Proactive activities against bicycle storage • Training on sustainability matters corruption, bribery and • Support for the Baltic Sea for our employees money laundering, as well as Action Group (BSAG) since 2019, promoting these activities in a