Sector Guidelines: companies involved in the property sector: - PDF document

SWEDBANK SECTOR GUIDELINES: PROPERTY 2018 business ethics. We also recommend that Sector Guidelines: companies involved in the property sector: Property  Identify material sustainability aspects and adopt relevant policies, objectives and targets; Scope and purpose The overall objective of these sector guidelines  Have policy commitments that meet is to promote sustainability performance in our responsibilities with regard to human rights, business relations with corporate clients, labour rights, environmental protection, portfolio companies and suppliers in all health & safety at work and anti-corruption; jurisdictions where Swedbank Group operates.  The sector guideline is applicable to all Have management systems or processes companies within the sector and in all stages that can be monitored, that comply with of the value chain. labour norms and labour laws, occupational health and safety and that ensure equal Sustainability impact treatment for migrant workers; The property sector is an industry that  comprises a wide range of activities involving Prevent discrimination and improve equal construction, alteration, and/or repair of treatment of men and women; buildings, structures, and other real estate  Have procedures for community and property and that manages leases and owns premises. stakeholder engagement;  The Economic, Social and Governance (ESG) Have management systems or processes risks and impacts of the sector relate to health that can be monitored and that comply with and safety at work, working conditions, environmental laws; especially for migrant and seasonal workers,  Have the commitment and procedures to climate change, choice of material, waste, assure respect for customary land tenure supply chain, ethics and corruption, and and use by indigenous people; potentially contaminated soil and groundwater.  Have procedures to follow up social and Other issues during reconstruction or environmental issues with regard to the redevelopment include choice of material, supply chain; recycling of materials and contaminated soil and groundwater. The choice of construction  Have procedures to reduce energy and site can also have a potentially negative water use in buildings; impact on the environment and/or communities such as land right issues as well as irreversible  In waste management, implement the EU effects on landscapes, ecosystems and waste hierarchy - reduce, reuse, recycle biodiversity. In the property sector the main and recovery; environmental issue is energy use in buildings  Assess the risk of potentially contaminated including heating and cooling. soil and groundwater due to historical and Expectations and recommendations current operations. Check whether the Swedbank expects clients, portfolio companies environmental authorities have any and suppliers to operate in accordance with requirements regarding investigations or relevant international norms, as well as remediation of soil and groundwater; regional and national laws, regulations and  When constructing or refurbishing, use permits. We expect our business partners to environmentally sound materials and manage material sustainability issues in a chemicals, and minimise waste and systematic manner within the field of human rights, labour rights, climate, environment and chemical usage; www.swedbank.com/corporate-sustainability/index.htm

SWEDBANK SECTOR GUIDELINES: PROPERTY 2018  ✓ The International Union for Have the commitment and procedures for conservation of biodiversity and protection Conservation of Nature (IUCN) x of protected habitats; ✓ IFC Environmental and Social Performance Standards and Guidance  Measure and establish reduction objectives Notes xi to contribute to limiting the maximum global ✓ ISO International standards xii such as temperature increase of 2°C, to minimise ISO 14000 xiii greenhouse gas emissions (GHG) and disclose figures and results in a transparent Implementation manner; Sustainability risk assessment is an integral  Include sustainability into both the design part of Swedbank Group’s risk assessment phase and construction phase to minimise within corporate lending, investment and the climate effect during the usage phase; procurement. Sector guidelines set the context for risk assessment. In order to comply with  Have procedures for combating bribery and our sustainability framework Swedbank shall: corruption, and for responsible tax  payments; Ensure understanding of existing and potential clients’ and portfolio companies’  Report transparently on tax payments at activities and risks. This means that group and country level in line with Swedbank may require relevant established global initiatives; documentation such as certificates and policies in order to understand the  Conduct due diligence on supplier sustainability governance and performance; management of environmental, social and business ethics issues and integrate  Evaluate suppliers’ sustainability sustainability criteria within procurement performance and integrate sustainability processes. Verify compliance with company requirements as a mandatory part of standards on a regular basis; supplier agreements. This means that Swedbank may terminate supplier  Report regularly on material sustainability relationships in the event of non- issues in line with GRI Standards. compliance with our supplier code of conduct; Relevant norms, guiding principles & standards  Continuously educate relevant Swedbank staff on general and specific Corporate ✓ The 10 principles of the United Nations Sustainability trends, issues and Global Compact i opportunities; ✓ UN Guiding principles on Business and Human Rights ii  Monitor our portfolios to mitigate risks, ✓ UNESCO World Heritage sites iii including sustainability risks; ✓ Wetlands covered by the Ramsar  Collaborate with third-party professional Convention iv Corporate Sustainability experts and ✓ Convention of International Trade of establish dialogue with counterparties on Endangered Species (CITES) v environmental and social matters; ✓ National parks and nature reserves  Report transparently on sustainability ✓ High conservation value forests performance. (HCVF), including those depended on by indigenous people vi ✓ Environmental certifications such as CEEQUAL, BREEAM vii , LEED viii , Miljöbyggnad ix www.swedbank.com/corporate-sustainability/index.htm