‘Second Opinion’ on Balder ’s Green Financing Framework 9 2 A ssessment of Balder ’s g reen financing framework The eligible projects under Balder ’s g reen financing framework are shaded based on their environmental impacts and risks, based on the “Shades of Green” methodology. Shading of e ligible projects under Balder ’ s g reen financing f ramework • An amount equal to the net proceeds from green financing will be used by Balder or its wholly - owned subsidiaries, to in whole or in part finance or refinance investment that promote the transition to low - carbon, climate resilient and sustainable economies as well as environmental and ecosystem improvements. • The net proceeds will be used exclusively to finance or refinance investments in the markets where Balder owns, manages and d evelops properties. • The majority of the net proceeds are expected to be allo cated to new assets (defined as projects and assets financed within 12 months from completion). The shares under the previous framework are 60% for new construction s and 40% for existing buildings. The proportion of net proceeds allocated to new projects a nd assets will be disclosed in the annual reporting. Investments are being planned 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 investme nts in Germany or Great Britain. • The combined allocated amount to a specific eligible green asset, by one or several sources of financing with specified use o f proceeds, may not exceed its value. • Green financing will not be used to finance investments link ed to fossil energy generation, nuclear energy generation, the weapons and defence industries, potentially environmentally negative resource extraction (such as rare - earth elements or fossil fuels), gambling or tobacco. Category Eligible project types G reen Shading and considerations Green building s Construction of new buildings (built after 31 December 2020): • Primary energy demand is or will be, at least 20% lower than the threshold set for near zero - energy building (NZEB ) requirements in national measures and • New buildings have, or will, receive environmental certification in any of the following building certification schemes at the define d threshold or better: o Miljöbyggnad “Silver” o LEED “Gold” o BREEAM “Very Good” Medium Green ü The combination of energy and certification criteria is useful for greening the real estate sector. The criteri a for new buildings, that their primary energy demand is or will be at least 20% lower than the threshold set for near zero - energy buildings (NZE B), and that they have, or will receive , useful environmental certifications, is a reasonable step towards low carbon and energy efficient new buildings. We note, however, that the criteria are not among the strictest. ü The issuer informs us that physical c limate risk is considered for all projects.