‘Second Opinion’ on Balder ’s Green Financing Framework 4 1 Balder ’s environmental management and green financing framework Company description Fastighets AB Balder (henceforth “Balder”) is a Swedish property company, headquartered in Gothenburg with almost 1200 employees. Balder’s real estate portfolio had a value of SEK 217.4 billion as of 31 December 2022. The company was established in 2005 and is liste d on Nasdaq Stockholm, Large Cap. Balder acquires, develops and manages residential and commercial properties in larger cities and cities with growth potential in Sweden, Denmark, Finland, Norway, Germany and Great Britain. The largest component (as meas ured by carrying amount (December 31, 2022 figures) of its real estate portfolio is in Helsinki (2 5 %), followed by Gothenburg ( 20 %), Stockholm (1 8 %), and Copenhagen (1 1 %). The property portfolio consists of 51% residential properties, 16% offices, 9% retai l, 6% industrial/logistics and 11% other properties. Investments are being made in particular in areas where the company is already active, with an emphasis on Stockholm, Gothenburg, Helsinki and Copenhagen. They do not plan to make significant investments in Germany or Great Britain. For Balder, it is important to control the whole value chain from land acquisition to the long - term management of completed projects. In 2022, Balder completed around 1,800 residential housings, 1,650 of which for own managem ent and 150 for divestment. At the turn of the year, around 5,200 residential apartments were under construction in Sweden, Denmark, Finland and Norway. The current framework is an update from a framework dated 10 May 2019. The total value of green financ ing under th e previous framework was 5,100 million SEK with approximately 60% for new constructions and 40% for renovation of existing buildings. Most of the proceeds was spent in Sweden and Denmark. Governance assessment Sustainability is integrated in Balder’s day - to - day operations and is governed by the general sustainability policy and the Code of Conduct. The sustainability policy includes the company’s environmental policy. Climate targets are specific and generally aligned with the Paris agreement. The selection process is good and includes life cycle considerations . T he planned reporting under the framework is comprehensive and covers certifications, energy use and carbon footprint at a portfolio level. Independent experts are helping Balder in its reporting of greenhouse gas emissions, both overall (scope 1, 2 and 3, including embodied emissions) and from green assets . To evaluate risks and opportunities linked to climate change, Balder has officially adopted a p osition to support and follow the recommendations issued by the Task Force on Climate - Related Financial Disclosures (TCFD) 1 and reported accordingly in the 2022 Annual report. The overall assessment of Balder’s governance structure and processes gives it a rating of Good . 1 https://www.fsb - tcfd.org