SEB Corporate Sustainability report 2009

8/9/2019 SEB Corporate Sustainability report 2009

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Corporate Sustainability Report 09


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This Corporate ustainability Report, our third, provides

in-depth inormation on SEBs sustainability eforts. We regard

it as an important tool in our dialogue with stakeholders.

The report presents all major sustainability initiativeswithin SEB. It is published annually since 2008, cover-ing the preceding scal year, and is intended or SEBstakeholders with a particular interest in sustainabil-ity. ince the last report, published in April 2009, wehave increased the scope o reporting. This refectsboth our new sustainability strategy and eedbackrom our stakeholders showing that they want moreinormation and transparency on our eorts.

The report is divided into our sections. The rst

includes our Presidents statement and an overviewo the Group. ection two describes our approachto working with sustainability. ection threehighlights our eight sustainable business priorities,which are based on the R reporting guidelinesand ollow leading banking practices. The reportconcludes with our key perormance indicators,which have been revised and expanded.

SEB applies international principles or corporatesustainability accounting. We report our resultsaccording to the R 3 Guidelines and to the Finan-cial ervices upplement. We also draw on guidancerom the Greenhouse Gas Protocol or our carbonreporting. We currently account or the CO emis-sions rom operations over which we have control,such as energy and electricity use in our own build-ings, paper consumption and business travel (scope2 and 3 emissions according to the Greenhouse GasProtocol). We include the emissions rom eleven

countries, accounting or more than 90 per cent oour income and 98 per cent o our employees.

Currently, we report according to level C in the Rapplication level system. Our R compliance tableo contents is ound at www.sebgroup.com/sustain-ability. The report has not been reviewed by anexternal party.

Go online!For more information visitwww.sebgroup.com/sustainability

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excv mmay

Developed a new strategy or corporate sustainability.

et out to signicantly reduce SEBS carbon emissions and decided to

compensate ully or emissions starting in 2009.

Arranged an internal seminar or 00 employees to generate sustainable

business ideas and launch employee engagement activities.

Worked together with customers and other stakeholders to develop

sustainable products and enter new partnerships.

i 2, w:

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To acilitate nancing or entre-preneurs with a oreign back-ground in weden, we partneredwith Tillvxtverket and S. Wedeveloped a web-based e-learninggame targeting advisors and salessta at banks, highlighting die-rences in business cultures.

We expanded our engagement inMentor Foundation to also includeLithuania and Germany. We con-tinued to support SS ChildrenVillages in Latvia and successullyused the altic asket all leagueto raise unds.

In a collaboration with Arbets-rmedlingen, the wedish jobcentre, we oered 1 unem-ployed a three-month internshipwithin the bank. The purpose wasto make a contribution in a chal-lenging economic climate.

We continued to support ourcustomers in challenging times.

In the altic countries, we workedwith private homeowners tosecure that they could remain asowners o their property.

We sold o all investments inarms and weapons manuacturers

governed by international conven-tion and established a R Council,to manage our ownership rolegoing orward.

We participated in a wedishbanking coalition against child

pornography. The model will be arole model or similar work withinthe E.

We launched a CO emissions re-ductions project; Carbon Chasingat SEB to reduce emissions by per cent until 20. We ollowprogress and report results on aquarterly basis.

The World ank made a urthertwo green bond issues with SEB assole lead manager, as well as aug-mented its initial oering on twooccasions. A ourth issue, in early200, meant the total amount rai-

sed now exceeds S bn.

We began work to develop indu-stry sector policies and positionstatements on sustainabilitytopics. These will guide our nan-cing and investment decisions inthe uture.

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SEB RRE SSB RER 20092


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stablish a platorm to become CO-neutral, based on both emissions reductionsand osetting

Continue eorts to improve SEB's indirectimpact, secure business integration

valuate SEB's current perormance and re-newal eorts amongst stakeholders

Develop a Group Corporate ustainabilitystrategy and governance model

Accomd 009

Decision to reduce CO-emissions by percent until 20

Launched CO-emissions reductions project;"Carbon Chasing at SEB"

Decision to oset the carbon emissionsthrough a Gold standard project in China

Arranged a three days seminar or 00 em-ployees "A usiness Case or ustainability"

Perormed a stakeholder survey on SEB'ssustainability perormance

Developed a Corporate ustainability trategy Appointed Head o Corporate ustainability ecruited an nvironmental Manager Created a "S Ambassador" group amongst

employees

SEBs operating prot was K 3. bn (2.). Large parts o the Group perormed well;two o our divisions recorded their highest operating prot ever. Total operating protwas hampered by the macroeconomic developments in the altic countries, which ledto signicant provisions or credit losses.

Our total CO emissions decreased by per cent to 7,320 t CO (0,0). During theyear, we added signicantly more activities to our emissions scope, principally branchoces in six countries, and thereore revised our 2008 gures upwards. The currentscope includes our main buildings and data centers, our branch network, the leasedcar feet, business travel and paper use.

The 2009 employee survey showed clear improvement within all major areas,including more motivated employees and better knowledge about SEBs vision andgoals. 89 per cent o our employees participated in our E survey.

Assets under management with a ocially esponsible Investment/ethical prolenearly doubled to SE . bn (8.8), due to increased customer demand and the globalequities market rebound. edesigning the SEB thical Global Index Fund to institu-tional client needs also contributed to the growth.

We work extensively on embedding our values and business principles among our

people, through team discussions and e-learning programmes. 87 per cent o our em-ployees have completed tailored training on SEBs Code o usiness Conduct.

po fo 010

Targets or CO emissions to be broken downon units

Deliver on CO emissions reductions project volve the scope to include more scope 3

emissions, i.e. security transports Automate reporting and ollow-up tart integrating sustainability into our

business Develop and implement sector policies Develop an ownership and engagement policy Further improve stakeholder dialogue and

engagement Develop a ocial trategy Increase the S Ambassador group Implement the S governance model

3.4 bn

47,320 t

89 %

15.1 bn

87 %

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SEB RRE SSB RER 2009 3

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ustainability challenges can only be

solved through joint responses. usinesses

play a crucial role in nding solutions. At SEB,

we have signicantly raised our ambition.

Annika Falkengren, President and CEO


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The sharp global recession,

increased evidence o natural re-

source constraints and the global

fnancial crisis have redefned

the agenda or many businesses

around the globe.

ased on what we know today, unsus-tainable environmental and social prac-tices are going to aect the livelihoodso billions o people in the decades tocome. ising awareness and a desire todo good are changing the landscape people and organisations are seekingways to work together to create real,lasting change.

Individual and collective change isneeded. ome people argue that thisis not the case, but I believe we can-not aord inaction, neither at SEB noranywhere else.

As a Nordic bank with large corporates,small and medium-sized enterprises,institutions and private individualsamong our customers, our business car-ries impact in many countries and local

communities. We want to be the trustedpartner or customers with aspirationsand know that we must meet increas-ingly higher expectations on responsiblecorporate behaviour i we want toremain successul.

ustainability topics were requentlydebated during 2009. Ater the Climate Conerence in Copenhagen inDecember it has become increasingly

clear that businesses have a key role toplay in delivering on public expectationso change.

The impetus or the banking sector totake on broader responsibility has beenunderscored by the nancial crisis.

At SEB, we raised our sustainabilityambition signicantly during 2009,addressing both our own ootprintmanagement and business practicesthroughout the Group. We decided,among other things, to reduce our car-bon ootprint by per cent until 20.

We aim to build asustainable business or

the long term: supporting

our customers; continuing

to value our people and

being an innovative

nancial partner.

This is a challenge in itsel. The greaterchallenge will be to make sustainabilitya ully integrated part o our business making it a core capability or SEB.

The opportunities are certainly there,since many o the activities required tomeet sustainability challenges involvea nancial solution. Think o all theplanned renewable energy investments,or example.

We are already doing work in the areao sustainable nance and invest-ments, as presented later on in thisreport. Let me just mention the Worldank Green onds, where SEB as thenancial intermediary is supporting thebuild-up o more sustainable econo-mies in developing countries. It is aclear example o how we as a bank cancontribute, but we can do much more.

And we will do more. Last year wegathered some 00 people rom withinSEB or a three-day brainstorming andknowledge sharing seminar to generatebusiness ideas.

As a bank and with our approach todoing business we aim to continue tomake a signicant contribution to theeconomies where we are present longinto the uture.

We actively engage in corporate sustain-

ability because we believe it bringsbenet to our customers, our people,our shareholders and society at large.Thereore, it is o benet also to ourbusiness.

Annika Falkengren

President and Chie Executive Ocer

to fo f

SEB RRE SSB RER 2009 5

RESES R


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2,000 employeesin 2 countries

SB is a leading Nordic fnancial

services group ounded in

weden in 1856. We are a

diversifed bank with a strong

ocus on wholesale banking

and wealth management. SB

oers a wide range o fnancial

services to private, corporate and

institutional customers in eight

countries in northern Europe. SB

is also a leading lie insurance

provider. The international

nature o our business is reected

in a presence in 21 countries

worldwide. In total, SB has21,000 employees.

O mo ad voOur mission is to help people and busi-ness thrive by providing quality adviceand nancial means. Our vision is to be

the trusted partner or customers withaspirations. The corporate sustainabilitystrategy has been developed to supportthis vision.

O coboanks have a undamental role inintermediating fows rom savers to bor-rowers in ways that enhance economicgrowth, or instance through supportingthe development o enterprises. This isour most important contribution. We

also create employment opportuni-ties and buy goods and services rom

a range o suppliers and strategicbusiness partners. Through dividends,tax payments and targeted communityinvestment projects we bring tangibleeconomic benets to our stakeholdersand the societies in which we operate.

O macOur direct impact is primarily related tothe ecological ootprint we make as a

services organisation, how we act in re-lation to our employees and to the stan-dards we set or our business conduct.In our role as a provider o nancingand as an investment manager, we havesignicant indirect impact.

Our sustainability eorts are guided byinternational initiatives and codes oconduct, including the UN Global Com-pact and the Principles or esponsibleInvestment, PI. A list o our interna-

tional commitments is ound on theinside back cover.

seB akod v

pofoa bodCarbon Disclosure Project, United Nations GlobalCompact, UNP FI, etc

Com 2,00 large and medium-sized companies,

nancial institutions, banks and commercialreal estate clients

00,000 small and medium-sized corporatecustomers

million individuals

saod300,000 shareholders, o which the majorityare private individuals

loca commLocal communities in our main markets

Mda ad aca makJournalists, analysts, investors, rating agencies

Cv ocy oaaoIncluding unions and non-governmental organisations

B a,000 suppliers and strategic business partners

pocy mak ad aoGovernments, regulatory bodies, supervisory agencies,central banks

Abo seB ado o

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presenCe in 2 COuntries WOrlDWiDeOur activities principally embrace the Nordic and alticcountries and Germany. We are a universal bank inweden, stonia, Latvia, Lithuania and Germany. InNorway, Denmark and Finland, we pursue a strategycentered on corporate and investment banking, lieinsurance and wealth management. SEB branches andrepresentative oces are ound in eijing, Geneva,Kiev, London, Moscow, Nice, New Delhi, New York,

Paris, o Paulo, hanghai, ingapore, t Petersburgand Warsaw.

Dbo of coomc b 8 7

K bn unless otherwise indicated

Dividends (shareholders) .* 4.4

mployee compensation (employees) 15.6 16. 14.

Taxes (governments) . .4 .4

upplier payments (suppliers) .1 .6 6.ocial investments (communities), K m . 1. 1.

* Proposed

2,5la Cooa & io

SEB is the leading corporate and investment

bank in the Nordic countries, serving large

companies, nancial institutions, banks and

commercial real estate clients with corporate

banking, trading and capital markets and globaltransaction services. We also oer comprehen-

sive pension and asset management solutions.

Ca

Large corporations and institutions are served by

our Merchant anking division, with operations

in 7 countries, and by the Wealth Management

division. Key markets are the Nordic countries

and Germany.

4,sMe com

SEB oers small and medium-sized corporate

customers several customized products that

were initially developed in co-operation with

SEBs large corporate clients. In addition, numer-

ous services are specically designed or smallcompanies and entrepreneurs.

Ca

mall and medium-sized corporate customers

are served by the our etail and altic divisions

as well as the Lie and Wealth Management

divisions. Key markets are the Nordic and altic

countries.

5 mopva com

SEB provides some ve million individuals with

products and services to meet their nancial

needs. These include products and services or

daily nances, savings, wealth management

and lie insurance. SEB strives or excellence incustomer service and are available to many o

our customers around-the-clock, all-year round.

Ca

Private individuals are principally served by the

etail and altic divisions in weden, Germany,

stonia, Latvia and Lithuania and also by the

Lie and Wealth Management divisions.

Faca 8 7

Operating income, K bn 44. 41.1 4.4

Operating prot, K bn .4 1.5 1.

Net prot, K bn 1. 1.1 1.6

Dividend per share, K 1.* 4.6

Tier I capital ratio, per cent 1. 1.1 .

,99

WealthManagement

Lie

altic

Other

etailanking

Merchantanking

, ,22,

-0,33 -2,8

Oa o by dvo 009

Total K 3,372m

weden

altic

Germany OtherNordiccountries

(excl weden)

,7

,29

-8,282 -99

Oa o by o 009

Total K 3,372m

O com

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Gin p seb.se/lanaeller ring 0771-365365 frmer information.Dukan venbeska nrmasteSEB-kontor.Vlkommen.

SBs contribution to society

date back to our ounding days.

In the mid-1990s, we adopted

our frst environmental policy

and began active community

engagement work.

The greatest community service a bankcan do is managing its business respon-sibly, or the long-term. This has beenour goal ever since we were ounded byAO Wallenberg in 8. He pioneered

the role o banks in supporting indus-trial activity and promoting economicdevelopment.

ven though it is only in the past threeyears that we have publicly disclosedinormation and compiled reports onour progress within corporate sustain-ability, our commitment dates backlonger in time.

One example is the wedish environ-mental engagement initiative which

took place in 99. It amounted tosigning international guidelines, to therst group-wide environmental policy, aspecic environmental paragraph in ourcredit policy as well as employee train-ing and engagement.

An activity that still orms part o ourcommunity investment strategy is ourpartnership with the Mentor Founda-

tion, which began in 997. Mentor isa non-prot oundation engaged inanti-violence and drug-preventionactivities, primarily through mentorshipprogrammes between young peopleand adults.

A o mcommm

igned the Interna-tional Chamber oCommerce usinessCharter or ustain-able Development

nvironmental criteria were included in SEBscredit policy

First group wide re-view on ustainableDevelopment and itsimplication on SEBscurrent and uturebusiness

igned the GlobalCompacts tenprinciples

Introduced MentorProgrammes or ouremployees. nablesSEB employees bementors or youngpeople. The aim is toprevent drug misuseand promote youthadvancement

ngaged and educated 0,000employees in weden on the en-vironment, through video and .Group workshops and discussionsollowed

The E guidelinesor Multinational nterpriseswere adopted by SEB

6

6

2The GreenCar Loan inances

cars and the

campaign receives

the wedish ad-

vertisement award

Guldgget

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SEBs ormer chie economist Klas klund is now a senior advisor toSEB and one o our oremost corporate sustainability ambassadors.

In this column, he outlines how undamental shit in values are a-

ecting peoples expectations o corporate behaviour.

Companiesmust thinklike PippiLongstocking.

First Nordic ankto adopt the quator Principles

Contributed to the nvironmentProgramme FinanceInitiative

8% o all supplierssubmitted their envi-

ronmental policies

First Nordic ankto announceCarbon Compen-sation through a Gold tandardProject

First group-wideCorporate ustain-ability trategyand ramework

decided upon

Adopted the Prin-ciples or espon-sible Investments

ignatory o theCarbon DisclosureProject

i , nob aaMo Fdma

ad b of b b. pod.

Friedman argued in a amous articlein the New York Times that there isone and only one social responsibilityo business to use its resources andengage in activities designed to increaseits prots so long as it stays within therules o the game. ut that was in an

era when the ree market concept waschallenged by letist movements andthere were many more centrally plannedeconomies than today.

We all know that the marketeconomy won. Today, however, manypeople eel that there are shortcomingsto markets. Thus, business must act morein the spirit o Pippi Longstocking, the c-tional character immortalised in the booksby the wedish author Astrid Lindgren: Hewho is very strong must also be very kind.

People expect corporations to

meet high ethical standards and take agreater responsibility or the environ-ment and society in general. This is nota short-term trend but a undamen-tal shit in values and it has beenstrengthened by the nancial crisis. Forthose o us who represent the busi-ness community this means we mustwork harder to ensure that the marketeconomy is a humane system, able to

create lasting value, not only a short-term prot maximising system.

usiness as usual is no longer anoption or companies wanting to stayin the lead. Future business models willhave to take into account the ull costso doing business and incorporate a

companys long-term impact on theenvironment and on local communities.

Mitigating climate change isurgent most scientists agree thatglobal warming should not exceed 2C.To reach this goal, global emissions ogreenhouse gases need to be reducedas soon as possible. Many countries areconsidering rules and regulation, taxa-tion and trade o emissions rights, toreduce emissions in their own countries.Attempts are made to negotiate a globalagreement through the United Nations.

ut global governance is dicult,as the ailed negotiations o Copen-hagen proved. Nonetheless, nationalgovernments will move on, individually,or by narrower accords. Thus, businessshould count on rising prices o carbonand greenhouse gas emissions. Adjust-ments will be required both in industrialproduction, in transports, energy supplyand agriculture. The earlier that action istaken, the more eective it will be.

Climate change will aect com-

panies in all sectors, leading to costincreases but also to new businessopportunities. There will be a great needor investments in renewable energy,clean-tech, energy ecient real estateand water inrastructure both in theindustrialised world and in developingcountries.

Companies and investors that areable to grasp this opportunity when as-sessing risks in innovation and &D willbe winners.

The nancial sector has an impor-

tant task in channeling green invest-ments, creating new unding or climateprojects and creating new products.ut this is truly a global challenge. Noindividual, households, companies oreven countries can solveit alone. We must all worktogether.


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Working together with our

employees, customers, suppliers

and other stakeholders we want

to minimise our negative imprint

while maximising the opportuni-

ties or positive contribution. In

2009, we developed a new

Corporate ustainability trategy.

T TT acing theworld are complex. As shown by reportsrom the UN and other organisations,the challenges posed are or real andcannot be neglected.

Much o the debate currently ocuses onclimate change. Additional challengesare brought on by globalisation, urbani-sation and a rising population.

At SEB, sustainable development meansbuilding a sustainable business as abank. Our business shall be underpinnedby strong ethics and good governance,long-term relationships and highly com-mitted people delivering the corporatestrategy and managing the social andenvironmental impact o our business.

We want to support our customers, createvalue or our shareholders and contributeto the economy as a whole. Not least, wewant to be a a good corporate citizen in

the markets were we are present.

uilding on the decision in 2008 to ur-ther strengthen our eorts and to adopta sustainability plan, during 2009 welaunched several activities and initiatives.Five key decisions taken in late Marchmade way or many o the later activities.

We decided to:

SEBs new Corporate ustainabilitytrategy was nalised towards the endo the year. Our work is now conductedwithin three main responsibility areas;our environmental responsibility, oursocial responsibility and our governanceresponsibility. ach area has a denedset o priorities (see next page). We en-gage in activities that are o importanceto our markets and want to use ourresources, know-how and inrastructurewisely to increase positive return.

We want to add value or

our business and or the

markets in which we are

present. These are mainly

countries located around

the altic ea.

imov o aabyfomac oadma

We are currently establishing the plat-orm to make sustainability issues ullyintegrated in our business. Our plan orthe next three years is based on takingincremental steps to gradually reachhigher levels o sustainability. y 202we aim to have made sustainability acore SEB capability. We ocus mainly on:

Competence build-up, includinggroup-wide training and education

eduction o our direct impact diminishing our carbon emissions

takeholder engagement Internal and external communication Generating revenues rom sustain-

able products and services Implementing environmental, social

and economic policies in divisionsand major markets.

saabyay

seB a fo dc COmo, 01.

. educe SEBs carbon emissions by per cent until 20.

2. Compensate or remaining carbon emissions corresponding to 2008 years levelthrough a UN Gold standard project in China.

3. ngage stakeholders through a stakeholder survey on SEBs current sustainabilityperormance and renewal eorts.

. Arrange A business case or sustainability seminar or 00 employees to captureinnovative business ideas and engage our employees.

. trengthen communication and activate all areas (nvironment/ocial/Governance).

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t o of oam cooaaaby :

to continue to be a successulcompany;

to assist and enable our stakeholdersto become more sustainable;

to contribute to the communities inwhich we are present;

to contribute to the international

communitys overall environmental,social and economic goals.

Our higher ambitions rest ona new strategic ramework,signicant emissionsreductions and work tointegrate sustainability efortsin all business activities.

TT TT is ocused on eight business priorities, inspired bytandard Chartered anks ustainable usiness Model. y ocusing our eorts onthese priorities, we can contribute to protecting the environment, enhance our socialcontribution and contribute to better banking governance.

Our priorities are supported by SEBs Code o usiness Conduct, which aims to ensurethat we conduct business in compliance with existing external and internal rules and

in line with our values: Commitment, Continuity, Mutual respect and Proessionalism.Our people have received training on the Code.

seBs COrpOrAte sustAinABilitstrAteg

rob ad mak

Assist our customers in reaching their nan-cial objectives. nsure that our customersunderstand the consequences o our advice

and their overall dealings with us.

tack aca cm

Actions to prevent money laundering, raudand nancing o criminal activity.

rob ow

nsure that we perorm our ownershiprole responsibly, promoting good businessethics and governance, and displaying goodcorporate citizenship.

rdc o foo

Managing our direct environmental impact.

saab ac ad vm

Together with our customers, reduce therisk or negative social and environmentalimpact related to our nance and invest-ment activities. Work to increase our andour customers positive contribution throughoering sustainable products and services.

Acc o aca vc

Promoting equal access to nancial servicesregardless o socio-economic standing, ethnicorigin or other actors.

A a ac o wok

Create a modern workplace that providesscope or individual development andpromotes diversity and work-lie balance.

iv commupporting the development o localcommunities, including support o youthdevelopment and the growth o small andmedium-sized enterprises.

SocialA great place to work

Access to financial services

Investing in communities

Knowledgeandeconomiccontribution

EnvironmentReducing our footprintSustainable finance &

investment

Ethic

s

Ethics

Eth

ics

To be the trusted partnerfor customers with

aspirations

Know

led

ge

and

econom

iccontrib

utio

n Kno

wledgeandeconom

iccontribution

GovernanceResponsible selling & marketing

Tackling financial crimeResponsible ownership

e b o


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rcommdao fom seB akod vy

D ad aco a cocv

dad abo

cooa aaby wa v of oaao.

We have begun this work, through

numerous engagement activities,

new sustainability governance

unctions and the development

o a new corporate sustainability

strategy.

Foma dc cooa

aaby oa ad a-

a coc o ad -o ova vo.

SBs sustainability strategy, includ-

ing key targets and perormance

indicators, was developed during

2009, decided upon by the Group

Executive Committee in December

2009 and supported by the oard

in February 2010.

ia cooa a-

aby o b a

ad b ym o cmmao ad foow-.

This work started during the

autumn 2009 and will gradually

be implemented throughout SB

during 2010-2012. Corporate

ustainability orms part o SBs

business plan or 2010-2012.

ica commcao

aod cooa aaby

acvAn internal sustainability portal

and a carbon reduction engage-

ment site were launched in

2009. A communication strategy

will be developed during 2010.

Communication is among the key

responsibilities o the new Global

Corporate ustainability unction.

sakod daoad am

We want to work together with

our stakeholders to address our

sustainability impact. In 2009, we

carried out a survey among our

stakeholders and held a three-

day internal seminar to gather

momentum or sustainable busi-

ness development within SB.

sakod vy o aaby

We want open, honest and transpar-ent dialogue with our stakeholders toinfuence our approach to sustainability.

That is why the development o our newsustainability strategy was preceded bya survey among employees, customersand other stakeholders.

The survey was designed to measurethe perceptions about SEBs currentsustainability perormance and renewaleort, as well as to understand what ourstakeholders expect in terms o actualactivities. The overriding objective wasto let external and internal insights serveas important input to the creation o acomprehensive and ambitious strategy.

The survey was conducted through inter-views with all major stakeholder groups

including employees, shareholders,investors, large corporate and institu-tional customers, private customers, andstrategic business partners and suppliers.We measured the importance o busi-ness ethics, environmental responsibil-

ity and social responsibility or SEBssuccess in the marketplace.

The results showed that SEB stakehold-ers expect us to do more in all threeareas, asking or concrete actions tomaniest our commitment and in-creased communication on progress.The survey also provided us with abaseline takeholder Corporate ustain-

ability atisaction Index.

The main recommendations rom thesurvey, and our response to them, arepresented below.

emoy am

To make sustainability a truly integratedpart o our daily work and the way wedo business, we must rmly establishour eorts among SEB employees,within each division and support unc-tion and in all countries. Only through

dedicated work by our people can wereach our targets.

The most important engagement eventduring 2009 was the usiness Caseor ustainability eminar, a seminar

We are expected to do more

in all areas; environmental

protection, social and

governance responsibility

and ethical behaviour.

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held in June with sta rom acrossSEBs business divisions and geogra-phies. The seminar explored how SEBcan improve its eorts within sustain-ability but primarily ocused on whatwe can do to support our customers

own contribution to sustainable de-velopment through nancial productsand services. ead more about theevent above.

Over 200 SEB employees

have chosen to become

internal Corporate ustain-

ability Ambassadors.

To increase awareness, we have invitedour employees to become Corporateustainability Ambassadors. y year-end, this group comprised some 200SEB employees and it has continued togrow aterwards.

www.caboca.com

In mid-2009, we launched a ustain-ability Portal on the Intranet. It servesas the platorm or all internal sustain-

ability communication and reporting.We also developed a specic carbonreduction engagement web site, www.carbonchaser.com, dedicated to engageSEB employees in the work to reducecarbon emissions. It will be made public

during 200.

Dvoa am wok ad

At our Lie division, some 0 em-ployees participated in sustainabilityworkshops and team discussions during2009. The purpose was to provideemployees with an opportunity toinfuence divisional sustainability eortsand to generate concrete proposals orimproving divisional sustainability per-ormance. Follow-up workshops will beheld during 200 and sustainability willbe a key theme in divisional seminarsand conerences throughout the year.

During 200, we aim to increase thegeneral knowledge on sustainabil-ity within SEB. Our goal is that all ouremployees have a minimum level ounderstanding about the risks andopportunities involved with creating asustainable business.

evyo dd o abak. if a bak do maa

b , o

a am m a ca

am o ocy.

i w bcom xcd of

coma o ak a oca

oby, mo a j

fom of cay ojc.

t a qo ofao o av

kowd abo

voma mac of o

b dcv fo o

b cvd a ovocav

o yo ao.

I am proudthat we are nowcommitted to this

B Ca fo saaby ma

We want to create innovative nancial solu-tions that address sustainability concerns.To examine what we can do to support ourcustomers own contribution to sustainabledevelopment, we held a three-day seminarinvolving more than 00 representatives romacross SEBs business divisions. Invited guestspeakers rom acknowledged sustainabilityleaders including lectrolux and SB sharedtheir experience. The seminar resulted in over

00 ideas or sustainable business develop-ment. These have since been condensed andprioritised or urther handling in the busi-ness planning process at the divisions.

440business ideas

100people

Voc of oakod

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saabyovac

Clear and eective structures

or responsibility distribution

ensure that our sustainability

eorts address relevant issues

and are underpinned by strong

ethics, sound governance and

adequate reporting. In 2009, we

created our frst Group Corporate

ustainability unction reporting

directly to the executive

management o SB.

T T at SEB is re-sponsible or saeguarding the deliveryo our Corporate ustainability (S) trat-egy. Depending on the issue at hand,matters are dealt with by the oard orby any o its established committees:

the isk and Capital Committee; theemuneration and Human esourceCommittee; and the Audit and Compli-ance Committee. Chairman o the oard

is Marcus Wallenberg.

The Group xecutive Committee (E),with twelve members, oversees thedevelopment and implementation o theS trategy within SEB. The E dealswith, among other things, matters ocommon concern to several divisions,strategic issues, business plans, nancialorecasts and reports. o Magnusson,the deputy President and E and alsoHead o Group ta and usiness up-port, has the overall responsibility or S

in the Group xecutive Committee.

go Cooa saaby

On the operational level, the GroupCorporate ustainability unctiontakes responsibility or delivery o thesustainability strategy and or reachingagreed targets on the corporate level.The unction was established in 2009and has three sta members: the Heado Corporate ustainability (reportingto the deputy President and E/Head

o Group ta and usiness upport),an nvironmental Manager (post lledearly 200) and a Corporate ustain-ability Communications and eportingManager.

Group Corporate ustainability hasthe overall responsibility to monitorprogress and to support Group entitiesin their work on the eight business pri-

orities. The unction works closely withbusiness divisions and group unctionsincluding Group Human esources,Group Compliance, Group Procurement,Group , Group Marketing & Communi-cations and Group eal state & Prem-ises, to ensure the eective implemen-tation o policies and instructions. Theunction is also responsible or engagingwith SEBs internal and external stake-holders on sustainability issues.

go Cs Comm

In its work, Group Corporate ustain-ability is supported by the Corporateustainability Committee, an opera-tional steering group responsible orcoordination, anchoring and implemen-tation o our corporate sustainabilitystrategy and action plan. The Commit-tee is chaired by o Magnusson and has members, representing all businessdivisions and support unctions aswell as Group unctions such as thosementioned above.

Code ofBusinessConduct

In our business dealings we are guided by SEBS Code o usiness Conduct, which is supported bythe oard o Directors. The Code highlights certain important issues covered in existing externaland internal rules and also provides guidance on how to live by SEBs values: commitment, continu-ity, mutual respect and proessionalism. The Code includes specic instructions or whistleblowingprocedures, e.g. or reporting possible violations to the Code.

The Code is available in eleven dierent languages and has also been developed into a custom-ised e-learning tool. All SEB employees are expected to abide by the Code in their daily work. yyear-end 2009, 87 per cent o SEB employees had completed training on the Code.

Each business division

and support function is

responsible for deliveringon our eight sustainable

business priorities.

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saaby k maam

The oards isk and Capital Committeesupports the oard in its work to ensurethat all inherent SEB risks are identi-ed, dened, measured, monitored andcontrolled. The most relevant risks roma sustainability perspective are creditrisk, operational risk and reputational

(business) risk. A clear and eectivestructure or responsibility distributionand governance is essential to managethe risks encountered. SEB attachesgreat importance to the creation oclearly dened roles or ocers anddecision-making bodies.

The oard o Directors and thePresident perorm their governing and

controlling roles through several policiesand instructions. The ules o Proce-dure or the oard o Directors, theInstruction or the President and Chiexecutive Ocer, the Instruction or theActivities, the Groups Credit Instruction,Instruction or handling o Conficts oInterest, thics Policy, isk Policy, In-

struction or procedures against MoneyLaundering and Financing o Terrorism,emuneration Policy, Code o usinessConduct and the SR (Corporate ocialesponsibility) Policy are o specialimportance.

saaby comac

Group Compliance is responsible orsecuring group-wide compliance with

the SR Policy (and related policies)and Code o usiness conduct. Areaso Group Compliance responsibility areCustomer Protection, Market Conduct,Prevention o Money Laundering andFinancing o Terrorism and egulatoryystems and Control. The Group Com-pliance unction is ully independent

rom the business operations, althoughit serves as a support unction or thebusiness operations. It is also separatedrom the legal unctions o the Group.During 200, the SR Policy will beupdated.

For urther inormation about Corporate

Governance at SB, please consult the

Annual Report, pages 57-64.

govacc focooaaaby

T T, hasthe ultimate responsibility or SEBsCorporate ustainability trategy,policies and instructions.

upported by the oard, T T TThas adopted the sustainabilitystrategy. ach business divisionand support unction is respon-sible or delivering on the eightbusiness priorities.

T T-

T is responsible or saeguardingand monitoring progress. Thisunction is supported by theT TT

TT, an operationalsteering group responsible orcoordination, anchoring andimplementation o the sustainabil-ity strategy and action plan.

1SEB RRE SSB RER 2009


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Reducing environmental impact is

a major concern or SB and our

stakeholders. y expanding the

use o renewable energy sources,

changing travelling patterns and

improving energy and resource

eciency throughout SB, we aim

to reduce our CO-emissions by

25 percent until 2011 and by 45

percent until 2015.

T T , global warm-ing will likely lead to rising sea levels,changing ecosystems, and increasingoccurrence o weather extremes. Cli-mate research shows there is increasingrisk o serious, irreversible impacts romclimate change i substantial actionis not taken. We are conscious o ourresponsibility to do what we can to try tomitigate these developments.

O aoac o oc

vom

The ocus o our work to reduce SEBS di-rect environmental impact is to measureour carbon ootprint in order to reduceour ootprint over time, compensate orthose o our emissions that we cannot

reduce and accurately report on theinormation requested by investors,customers and employees. We also wantto engage our stakeholders.

We apply a ve-step approach known asthe carbon management hierarchy:

. Measure and report our carbonootprint

2. Avoid carbon intensive activitieswhen possible

3. educe energy consumption andbusiness travel

. eplace ossil energy with renewableenergy

. Oset our remaining CO emissions

through purchasing veried emissionsreductions rom high quality projects.

y 20, we aim to have reduced ourcarbon ootprint by per cent.

eaching this target requires invest-ments, collective eorts and a change inmindset and behavior.

The decision has instigated numerousaction plans throughout SEB. We havealso devoted resources to make surethat we measure our emissions correctlyand capture all emissions we are directlyaccountable or. A specic CO mission

eduction steering group is in place tosaeguard the operational work. The Heado Group Procurement and eal state isresponsible or managing this initiative.

Ma ad o

Our ambition is to measure the ullimpact o our operations. Currently, weaccount or the CO emissions romoperations over which we have control,such as energy and electricity use in ourown buildings, paper consumption andbusiness travel (scope 2 and 3 emis-

sions according to the Greenhouse GasProtocol). We include the emissionsrom eleven countries, accounting ormore than 90 per cent o our incomeand 98 per cent o our employees.

rdc ofoo

45%Cutting CO- emissionsat B by

until 215

T

-15% -30% -15%

-70%

Our ambition is to measure

the full impact of our opera-

tions. Currently we account

for the CO emissions over

which we have control.

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Cabo o a

T emissions through invest-ments in carbon-osetting projects according to the certication scheme under the Kyoto Protocol(the Clean Development Mechanism, ). Allchosen projects must meet Gold tandard criteria,meaning that they should not only result in real andveriable carbon osets but also contribute to sus-tainable development and social benets in thosesocieties where the project takes place.

soa cook ojc Ca

Our rst carbon oset project is to provide solarcookers to households in the rural Ningxia Huiregion in the northwest o China. This region is oneo the poorest in the country.

The project is targeted at replacing coal consump-tion by solar energy in the Haiyuan County, a drymountain area in southern Ningxia. Through ourcontribution, we subsidise some 7,000 solar cook-ers that can be used or cooking and water boiling,ultimately saving 3,000 tonnes o CO emissionseach year. The project also promotes sustainabledevelopment o this region, in that it trains peopleon the use o solar energy and builds awareness inenvironmental protection.

Reductions in paper use Ongoing

Green company car policy Decided 2009

Switching to green electricity in

Germany, Estonia and UK Germany implemented rom January , 200

Introducing energy eciency

programs in main buildings Ongoing

More carbon-friendly business travel Ongoing, new business travel policy adopted early 200

We have established a dedicated web site to describe what we do to reduce carbonemissions at SEB. It is ound at: www.caboca.com

Caboca a

We expect theollowing items tobe among keycontributors toachieving our COreductions


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We ollow progress and report results ona quarterly basis.

emo ba

In 2008, a comprehensive easibilitystudy was perormed to clariy thecurrent amount o carbon emissionsgenerated by SEB. We learned that SEBaected the atmosphere with some3,000 tCO annually. The study ormedthe basis or the decision to reduce ouremissions by 2 per cent until 20 andby per cent until 20. Included inthe scope were main buildings and datacenters, our leased car feet, business airtravel and paper use.

During 2009, we veried the initial dataand added more activities, most impor-tantly our branch network. The total

annual emissions baseline then grewto ,000 tCO. We did however notchange our reductions targets.

rdc y como of-

c ad daa c

We are currently involved in numerousprojects related to reducing energy con-sumption rom the oce space that weown or rent and the data centers thatwe manage. These include installingautomatic light switches, using lowen-ergy light bulbs and improving energy

eciency through better time-steeringo ventilation and lighting systems, orexample. We also review heating andcooling systems to implement energyeciency programs.

ince most o our oce space is rented,it is imperative that we nd a commonground or dealing with the nancial as-pects o the energy-eciency measures

that we want to implement. How shouldinvestments be split between landlordand tenant? How can the energy gainsbe shared? These are questions that arenot always easy to answer.

To establish a nancial ramework orhow tenants and property owners canco-operate on energy-eciency invest-ments and other measures, we havebegun a pilot study together with thewedish nergy Agency, the technicalconsultancy rm and the propertyowners o two o our largest acilities,ergels Torg and issne in tockholm.We expect this pilot to be nalisedduring 200. The ndings will be sharedwith the wider business community.

We also engage in external green oce

initiatives. SEB Finland has adoptedthe World Wildlie Funds Green Oceguidelines to improve oce eco-e-ciency and will be audited during 200.

In 2009, wereduced energyconsumptionin own buildingsby 2.0 per cent.

rdc cabo-v comayca ad b av

In late 2009, a new company car policyor SEB was adopted, aecting some,000 leasing cars. Over a three-yearperiod, beginning with weden, all leas-ing cars will be transerred to green cars.Ater adjustments to local conditions,the car policy will be implemented inother markets during 200.

A new business travel policy aimed atreducing carbon-intensive travel wasdeveloped in 2009. We seek to replaceair travel with train whenever possible, fywith greener air feets and reduce overallbusiness travel through increased use ovideo and web conerencing. This policywas adopted in early 200.

In 2009, we increasedthe share o greencars to 29 per cento the feet.

rdc a

ach year, we print nearly 80 millionaccount statements, payment notica-tions and other customer notications,and send out some 30 million physical

mailings. A large share o these print-outs can be eliminated by increasingthe use o electronic statements andnotications. The customer outputmanagement project we have launchedocuses on reducing paper output anddeveloping new customer interacesolutions, so that inormation rom SEBis easily accessible and presented ina simple and compelling way acrossdierent media platorms. Our target or200 is to reduce paper consumption by20 per cent.

In 2009, we reducedtotal paperconsumptionwith tonnes.

In the , where ,300 customers previ-ously received up to 0,000 individual

uildings are estimated to account or30 to 0 per cent o energy use globally.As a large provider o commercial prop-erty nancing, we want to contributeto sustainable building practices andenergy eciency in buildings. During

2009, we thereore co-ounded theweden Green uilding Council togetherwith eleven partners. The organisation

aims to support the transormationto greener property construction andreal estate management by infuencingdecision-makers, disseminating knowl-edge and developing various supportivetools. One important task is to cham-

pion the development o commonlyaccepted green building standards.

T

weden Greenuilding Council:pomo

aa

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T

paper statements monthly, we haveswitched to e-mail. This not only re-duced CO emissions and costs but alsoincreased customer satisaction.

rac bow y w

eplacing ossil energy sources withrenewable ones is a key concern and willbe implemented as soon as possible inall our main markets. This is the case al-ready in weden. ective rom January, 200 all our energy use in Germany isgreen, aecting a total o 8,000 sq.m.

oce space. The annual CO savings are0,000 tonnes.

O o ma mo

We oset our carbon emissions based onthe previous years emissions. This is donethrough a Clean Development Mecha-

nism project, . All projects arecontrolled by the United Nations Frame-work Convention on Climate Change(). Our osetting projects mustalso meet the UN Gold tandard.

Projects are restricted to renewable en-

ergy and end-use energy eciency, thuspromoting a undamental shit in energyuse while promoting local economies.In 2009, we invested in a project innorthern China (see page 7).

Wok o w o

We work closely with a number o oursuppliers in order to improve our envi-ronmental perormance. We request anenvironmental policy rom all supplierswith which we have a ramework agree-ment. All o the major suppliers havesupplied such policies.

T

ea yo ad d

In Latvia, we carried out the Ideas-Peo-ple-Changes campaign, highlightingclimate change and the global warmingproblems to young people. The lmThe th Hour was a central part o thecampaign and the campaign web sitewww.stunda.lv generated thousandso ideas or a greener lie style. In all,,000 young people rom all overLatvia got involved.

We also arranged a seminar to-gether with the Gothenburg chool oconomics in weden, targeting theschools partner companies, alumniand students. Klas klund, our senioreconomist, presented his views aboutthe need or economic instruments, howorganisations and businesses will beaected and how to act smartly in theera o green capitalism.

ea comWe are committed to sharing our experi-ence with customers in various ways. In2009, some 0 investors, investmentadvisors, and representatives o envi-ronmental organisations and agencies,were invited to a workshop seminar ongreen bonds in London. Also, during thewedish Open tennis tournament, weinvited 0 customers and employees

to participate in a breakast seminar,discussing what an eective climate andenergy policy look like.

ea ocy mak ad

ofoa bod

SEB was among the group o 90 globalcorporations that signed the Copenha-gen Communiqu in the run-up to the2009 United Nations Climate ChangeConerence, .

In advance o the UN negotiations, Klasklund participated in an internationalresearch cooperation together withleading Chinese economists, sir Nicho-las tern and the tockholm nviron-ment Institute. The aim was to perorma climate economic analysis o orth-coming challenges or China. The workand its implications on urope, was alsopresented by klund or the uropeanCommissions economic advisory group.

During , our Head o Corporateustainability was invited as the keynote speaker in a seminar or nancialindustry representatives arranged byE Financial Initiative and Danskeank. The purpose was to discuss cli-mate change issues and how to ensureunding or necessary investments inthis eld.

eam acv 2

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As a large corporate bank and

major asset manager we have

signifcant indirect impact and

recognise our responsibility to

contribute to sustainable de-

velopment. Addressing environ-

mental and social aspects in

fnancing and investments is not

only a question o risk, but also o

opportunity.

T T TT climatechange is just one o the challengesacing the world in the coming decades.The rapidly growing population, ex-pected by the United Nations Popula-tion Fund to rise rom . billion todayto 9.2 billion by 200, urbanisation andcontinued globalisation are other ac-tors that will put tremendous strain onenergy and ood supply, waste handlingand access to clean water, among otherthings. The demand or solutions andtechnologies to mitigate and help toadapt to sustainability challenges will beimmense. This development has alreadystarted.

We aim to support the transition toa low-carbon economy and a moresustainable world, both capturing theopportunities and managing the risks.

In the process, we will be looking moreactively or opportunities that have anenvironmental and social benet as wellas a viable economic return.

olutions to the social and environ-mental challenges that the world acesrequire nancial assistance in order tobe realised. SEB can today provide someproducts and services that help indi-viduals, companies and governmentsrespond to the challenges.

Fac caAt SEB, the nancing o industrial activ-ity and commercial property accountsor a signicant share o our business.We have assisted Nordic industrials orwell over a century and today countmany o the largest companies in theregion among our clients.

Through our nancing activities, we areexposed to sectors that carry substan-tial environmental and social impact,including energy, transportation, miningand manuacturing. We are also en-gaged in sectors with less pronouncedimpact, including business services,media & entertainment and retail.

Many o our customers have come arin their sustainability practices andwe support them through lending,global payment solutions and corporatenance, or example.

We nance the development andproduction o equipment used in wastemanagement and water purication. Weare engaged in the build-up o renew-able energy inrastructure and theintroduction o new, greener products.

We are also engaged in arranging capitalmarkets solutions with a sustainabilityprole. As the sole lead manager, we

have assisted the World ank in ourconsecutive raisings o green bonds ora total o more than S billion (seepage 23). The investor interest or thesebonds has inspired other issuers, includ-ing governments and corporates.

saab acad vm

seB: cd ofoo 2

hare o credit portolio, per cent %

Bak 7

Cooa 36Finance and insurance 4

Wholesale and retail 4

Transportation

hipping

usiness and household services 6

Construction 1

Manuacturing 1

Agriculture, orestry and shing

Mining 1

lectr icity, gas, water supply

Other

poy Maam

Commercial real estate

Multi-amily housing 6

pbc Admao

hood 8

Households mortgages

Other 6

toa

Growth of worlds wind power-generating capacity in 2009(Source: Global Wind Energy Council)

T

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In stonia our co-operation with theCredit and xport Guarantee FundKredex enables lower margins or in-vestment projects that improve energyeciency with at least 30 percent.

olutions to the social andenvironmental challenges

that the world aces require

nancial assistance in

order to be realised.

For our private customers in weden, wehave since 200 oered the Green CarLoan or nancing at subsidised interestrate levels o cars that meet local envi-ronmental certication criteria. During2009, some ,300 Green Car Loans wereapproved, an increase o 30 per cent.

eqao pc

SEB was the rst Nordic bank to adoptthe quator Principles (E) on projectnancing, a voluntary set o guidelinesto help the nancial industry assess so-cial and environmental issues in projectnancing. Typically, project nancing is

used or large, complex and expensiveinstallations such as power plants,reneries, waste treatment plants andtransportation inrastructure. SEB hasnot engaged in any project nance ac-tivities above the E threshold in 2009.

One o our largest nancings to datewas or the construction o a biomasspowerplant in northern weden,ormally inaugurated in 2009. Out oorest-based biomass the power plantproduces renewable energy in the ormo steam, electricity and district heating.The plant has a maximal yearly energyproduction o . TWh, equivalent to theyearly energy usage o nearly 0,000houses.

Maa aaby k

In our role as a large corporate bank andasset manager we have considerable in-direct impact. We want to work togetherwith our clients in order to drive sustain-able growth, protect the environmentand contribute positively to societies. Aspart o this work, we need to enhanceour understanding o the sustainabilityaspects that are o relevance to dierentindustries and let this insight have aninfuence on our business practices.

Assessing the environmental and socialimpacts o providing nance to our cus-tomers is embedded into our overall riskmanagement processes; environmentalcriteria have been included our credit poli-cy since 997. In 200, we broadened theperspective to include other sustainability

aspects such as human rights, interna-tional labour standards and reputationalrisk. A special section o the credit policyemphasizes our social responsibility.

sco ocad ooam

For certain industry sectors we are in theprocess o developing sector policies,highlighting the social and environ-mental standards we expect in order toprovide services or make investments.

We have initially selected some tensectors or review and aim to introduceour rst policies during 200, beginningwith the Arms and Deense, and Miningand Metals sectors. We ocus on sectorswhere there is a high level o environ-mental and social aspects to be con-

sidered and which are o relevance toour business. Apart rom those, we arealso about to introduce our rst positionstatement, on Climate Change.

Developing sector policies and intro-ducing them into our nancing andinvestment processes is a complextask. It is particularly challenging whendealing with small and medium-sizedenterprises, where credit decisions areoten based on credit scoring systemsrom external partners and where there

are more limited resources or individualcompany analysis.

Our policies are developed by a cross-unctional task orce comprising seniorsta members rom our divisions, GroupCredits and other key Group unctions.

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acwod coa ad v

In 2009, the Norwegian coastguardtook the rst o three new vessels o thearents ea class into operation. Thevessel, which runs on natural gas insteado diesel oil, is an ice-strengthenedmulti-purpose vessel that will be used orshery inspections, oil spill preventionand search- and rescue operations. Itcan also be used as a tugboat to assistlarger boats.

The arent ea class is the worldsgreenest coast guard vessel. The shipis a hybrid, and when running only ongas it reduces its nitrous oxides, NOxemissions by 90 per cent and its carbondioxide, CO, emissions by 2 per cent.

SEB provides nancing to two o thethree new vessels. Our relationship withemy Management S, the vesselsoperator, and the Norwegian coastguardstarted in 200.

saab vm

We support sustainable development byoering investment products designedto meet a variety o concerns andresponsible investment preerencesamong SEBs customers. We also actthrough our Venture Capital unit, which

provides venture capital and compe-tence to companies with substantialgrowth potential.

Our sustainable invest-

ments product portolio

is evolved in tandem with

customer demands.

saab vm odc

SEB manages 2 ocially esponsibleInvestment (SR) unds. y year-end2009, assets under management inthese unds was SE 0.2bn, an increaseo SE .7bn versus the previous year. Inaddition, we managed SE .9bn in insti-

tutional portolios with a sustainabilityprole, up rom SE 3.3bn.

Three categories o unds are currentlyoered:

Funds that exclude companies ac-

cording to negative screening criteriasuch as weapons, alcohol, tobacco,pornography and gambling.

Funds that apply the Global thicaltandard screening criteria. Theseunds exclude companies that haveviolated international standards orhuman rights, labour rights, environ-ment, corruption and weaponsmanuacturing.

Funds that only invest in companiesthat are leaders in corporate respon-sibility (positive screening).

We continuously seek to evolve ourproduct portolio. esponding to insti-tutional client requests or a global undwith a clear ethical and sustainabilityapproach, we redesigned the SEB thical

Global Index Fund in 2009. The undinvests in some 300 companies deemedby an independent sustainability advisorto be among the world leaders in cor-porate sustainability. The und selectioncombines positive and negative screen-ing criteria, and excludes the tobacco,

alcohol, gambling, armaments, rearmsand adult entertainment industries. Fol-lowing the redesign, the und has grownrom SE 9m to over SE bn.

seB V Caa

Our venture capital arm SEB VentureCapital invests in companies that showsubstantial growth potential, mainly inthe technology and healthcare elds.everal investments have a clear sustain-ability prole. Among investments thathave been sold are Procoat (tire recy-cling), enad (water purication) andMestilla (production o biodiesel). Cur-rent portolio companies include 3nine(technology or puriying oil mist and fuegases) and Xylophane (renewable barriermaterial or packaging based on xylan).

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World BankGreen Bondsto drivesustainability

investmentsin developingeconomies

T pioneered green bond nancingin late 2008, when the World ank introduced green bondsinto its unding programme or the rst time. During 2009, theWorld ank made a urther two green bond issues, as well asaugmented its initial oering on two occasions. A ourth issue,in early 200, meant the total amount raised through greenbonds now exceeds S bn.

The World ank Green onds are designed to raise additionalunding or projects or programs that support low-carbonactivities in World ank client countries. They respond togrowing interest rom institutional investors or highly ratedxed-income products that support sustainable development.A key eature valued by many investors is the due diligence

process that the World ank environmental specialists conductto identiy and monitor green bond supported projects. Two othe projects are described to the right:

imov y ccy bc

bd MooAdditional capacity and greater energy eciency is badlyneeded to meet the growing energy demand in Montenegro,which currently imports power to make up or diminishingpower production by the state power company due to oldstructures, limited investments and run-down acilities.

The Montenegro nergy ciency Project is designed to im-prove energy eciency perormance in targeted public sectorbuildings, including schools. The investments nance energyeciency measures such as retrotting to improve heatingsystems, insulation, and thermostatic valves, as well as relatedheating substations and transmission networks. Throughthe project, the Government o Montenegro also seeks todemonstrate how sustainable energy eciency improvementprograms can be undertaken.

sca wab y ym Aa

The World ank has previously contributed to introduce re-newable energy systems in dispersed rural areas in Argentina.The enewable nergy in the ural Market Project has pro-vided access to electricity to 8,000 homes and ,900 schoolsusing primarily solar and wind energy technologies.

The Green onds provide additional nancing to scale up theprogram. Through installation o equipment including ,00 so-lar home systems, 30 solar photovoltaic systems to supply ruralschools and public services and 2 biomass generation projects,it is estimated that about 9,000 households can get access toreliable electricity using renewable energy technologies.

The goal is to develop a sustainable electricity market servedand nanced by private concessionaires. The challenge is todesign a scheme that minimises government subsidies, butenables private investors to obtain a air return or their par-ticipation, and provides power to poor communities at a price

they can aord.

www.wodbak.o

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rob ad mak

Our oremost responsibility is to

our customers, many o whom

have entrusted us with their

business or decades. We are

expected to act responsibly and

with a long-term view throughout

good times and bad.

T T T ,

reliance and trust in their relations witha bank. uch a relation requires banksto set its clients interest rst and notexpose itsel to undue levels o risk.

At SEB, we are committed to a conser-vative banking model. We believe it isessential or a bank to ocus on marketsegments and customers it knows welland to take a prudent approach in all itsbusiness dealings. This model has servedus and our clients or well over a century.

Cod of B Codc

SEBs Code o usiness Conduct embod-ies our approach to all our businessdealings, including interactions withcustomers. The Code is based on ourour core values: commitment, continuity,

mutual respect and proessionalism, andincludes specic procedures or reportingpossible violations.

ld obynsuring that our customers can aordto manage their debt is a key compo-nent o all responsible lending. Thisis why our credit decisions are alwaysbased on the customers repaymentabilities. In our Merchant ankingdivision, which deals with our largestclients, we have a large credit analysisunction whose purpose is to providebalanced, independent advice based onprudent credit practices.

In our etail anking division, which pri-marily deals with our private and smallercorporate customers, we apply creditscoring methods and inormation romcredit inormation agencies to gain in-sight into the customers entire nancialsituation beore taking our decision.

We encourage a conservative approachto leverage, particularly in these times oexceptionally low interest rates. In late2009, we tightened our credit-grantingcriteria or wedish mortgage loans, inorder to discourage excessive borrowingand saeguard asset quality.

Wok w com a dow

As this report is written, world econo-mies have stabilised ater the ex-traordinary dislocation brought on bythe nancial crisis. However, severalcountries are still suering considerably.These include the three altic countries

stonia, Latvia and Lithuania, whichorm part o our home markets andaccount or some per cent o our op-erating income. The altics experienceddramatic declines in GDP during 2009and domestic demand has plummeted.The dicult economic situation hasresulted in rising loan impairments andcredit losses.

We work closely with our altic custom-ers in order to minimise losses, bothor the ank and or our customers.We recognise that this is oten a highlyemotional process and seek to perormour duties with integrity, respect and aview to strengthen long-term customerrelations. Over 200 people rom ourpecial Credits Management teamare involved in reviewing credits andworking with our customers to developaction plans.

We apply dierent work-out strategiesdepending on the type o collateral andcustomer. For commercial real estateand land plots, our strategy is based onthe experiences o the Nordic bankingcrisis in the 990s. hareholder valuecan be protected and markets canbe stabilised i real estate assets areincubated and proessionally manageduntil the economic recovery has startedand demand or such assets returns. Wehave three operational real estate hold-ing companies in stonia, Latvia andLithuania where we expect to accumu-late assets over the next ew years.

For private homeowners, we work tond solutions that enable them toremain as owners o the property. Thesemay include a grace period or amor-tisations and capitalisation o part othe unpaid interest amounts. We alsoplay an active role in discussions with

In our dealings with

customers we are guided

by our Code of Business

Conduct, which embodies

our approach to all our

business dealings.

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public authorities on contructive crisisresolutions.

rob ad mak

We emphasize high standards or em-ployee training, product development,marketing and sales as well as ater-

sales service processes. It is vital that ourcustomers understand the risks involvedin their dealings with us and that ourproposed solutions are appropriate tothe customers needs and desired riskappetite. y using ocus groups as parto the product development process wecan acquire customer eedback prior toproduct launch and gain insight regard-ing its perceived benet. We also haveelaborated systems and processes inplace to deal with customer complaints.

Com fd-back fom

As part o our work to improve cus-tomer satisaction, we regularly perormcustomer eedback surveys. In ouretail anking business in weden, weperorm some ,000 customer interviewsmonthly. These provide insight into thekey drivers o customer satisaction andenable us to identiy high and low-perorming branches and individuals. Asa result, we can put into place appropri-ate training programs. etter inormation

about customer perceptions also allowus to make customer satisaction a moreintegrated part in how we evaluate andset targets on the individual level.

ince 2008, our surveys are based on theNet Promoter tool, which assesses cus-tomer loyalty on the basis o how likely acustomer is to recommend SEB to a riendor colleague. This methodology wasexpanded into our Private anking andCash Management units during 2009.

Faca bak fo

ma m

In order to make nancial serviceseasier to use or small and medium-sized enterprises we launched the nklaFirman (implicity or SEs) conceptin 2007. This concept has contributedto our recognition as the est bankor SEs, awarded by the businessmagazine Privata Arer in weden.

We received the award in 2009 or thesecond consecutive year. nkla Firmanis a product that combines basic bank-ing products such as cheque accounts,bank giro numbers and credit/chargecards in an Internet Oce ormat.

Ackowd w w faWe strive or the highest proessionalstandards in our customer dealings.There are however situations where weail. In 2009, we decided to compensateinstitutional investors in stonia aterailing to ulll our inormation obliga-tions as collateral agent or an stoniancompanys private bond placement.

We also decided to compensate mutualund investors or ailing to inorm about

the use o wing Pricing in certainunds. wing Pricing is a method where-by active investors bear a larger share otrading costs than other investors in aund. It is no longer in use at SEB.

rod o aab odc

Our customers are increasingly lookingor nancial products that provideenvironmental and social benet whilesatisying demands or a commercialreturn or competitive cost or unding.Our approach is described in the chap-ter ustainable nance and investmentson page 20.

Co va oo ocom ao

Ma cthics and trust are the basis or everythingwe do. We care or and respect the individual.We actively listen to and cooperate with ourcustomers, colleagues and shareholders. Wevalue diversity and openness.

Coy

SEB is a modern bank with a strong heritage anda tradition o building long-term relationships.We stick to our strategy and take tough, butwell thought-out, decisions and implementthem accordingly. We develop, step by step, aswe move towards the uture. We ollow up onresults and learn rom experience.

pofoam

We work together with our customers, col-leagues and society with a high level o integrityand competence. We are proactive and ac-countable or our actions in order create growthand protability both or our customers and our

shareholders.

Commm

We act on our promises with strong and lastingdedication. We make every eort to achieveour common goals and we show courage alongthe way. We walk that extra mile to exceed ourcustomers expectations and show discipline inthe ollow-through.

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tackaca cm

Financial crime, in particular

money laundering and terrorist

fnancing, has become a large-

scale international problem. Pre-

venting it requires international

collaboration, trained sta, and

sophisticated systems or fnancial

crime detection and compliance.

T crime activityhas risen tremendously, in pace withincreased global connectivity and useo online services. The ght againstmoney laundering and terrorist nanc-ing is now a priority in the internationalcommunity, given the concerns aboutthe possible consequences o theseactivities on global economies and oninternational nancial stability. Onlineraud schemes, relying on maliciouse-mails or raudulent Web sites, have

also multiplied.

In order to prevent and combat nancialcrime, international agreements as well ascommon measures and rules are neces-sary. We are aected mainly by currenturopean Union anti money launderinglegislation, which conorms to recommen-dations by the intergovernmental body (Financial Action Task Force).

standards have been endorsed by morethan 80 jurisdictions around the world.

say ad maam

We devote considerable resourcesto prevent the damaging eects onancial crime activity on our business,our customers and society. We ocus onthree key areas:

Actions to prevent money launderingand nancing o terrorism

Compliance with government sanc-tions against criminal suspects

Fraud prevention

We place strong emphasis on employee

training in our eorts, and provide bothgeneral and tailored nancial crimeprevention training programmes. Allemployees must pass our general antimoney laundering () e-learning pro-gramme, which is a mandatory part othe introduction or all new employees.

y year-end 2009, nine out o ten SEBemployees had passed the general training programme.

Our Head o Group Compliance isunctionally responsible or proceduresagainst money laundering and nancingo terrorism, ensuring that our controlsystems, processes and routines workin an ecient manner and that our sta

receives adequate training. The Head oeach business unit is ultimately respon-sible or risk assessment, reporting andrisk mitigation.

To manage and mitigate nancial crimerisks, we apply a risk-based approach.nhanced due diligence is requiredor customers, products and countrieswhere the risk that the ank is used ormoney laundering and nancing o ter-rorism is deemed higher.

eacd ocd aa moyad ad ac of om

During 2009, we introduced global man-datory minimum standards through-out the SEB Group to combat moneylaundering and nancing o terrorism.We now have a uniorm approach in

nw Fad pvo sayIn 2009, we concluded a two-year project to develop and implement a new FraudPrevention trategy or the SEB Group, excluding SEB Card. This comprised:

Updated raud prevention instruction, including local raud preventionguidelines and reporting routines.

Training program or security sta, and awareness program (e-learning)or all sta

Internal anti-raud measures- pre-employment screening- identity management- standardised rules or physical access

Internet banking security

The largest Swedish banks

have joined forces to prevent

and obstruct payments for

child pornography.

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all our markets and business divisions,comprising detailed instructions or riskassessment, risk management, risk miti-gation and reporting. Deviations romthe new standards are only acceptable ithe deviation means a stricter procedureor i local legislation prohibits applica-

tion o the minimum standard.

A sound Know Your Customer programis instrumental to attain compliance withrequirements on nancial crime preven-tion. It helps us to get to know andevaluate inormation about the customerrom a business and regulatory perspec-tive. ach customer undergoes duediligence in our risk assessment process.nhanced due diligence measures areapplied in cases where the circumstanc-es indicates higher risk. Our trainingson money laundering are tailored to theinherent risks applicable within eachdivision and business unit.

We provide tailored money

laundering training or

employees that deal with

client-related matters,

operate in areas which

may represent high risk

or otherwise have special

needs o money

laundering knowledge.

sc o aco

comac

The impact o sanctions violations posessignicant reputational and operational

risk, as has been demonstrated in a num-ber o cases involving banks that violatedS sanctions to Iran and other countries.To ensure sanctions compliance, weregularly screen our customers againstapplicable sanctions lists. We also screenall international payments against thesanctions imposed by the uropeanUnion and the U Treasury DepartmentsOce o Foreign Assets Control.

taaco moo

In addition to the sanction screeningthat is perormed beore payments areprocessed, we also monitor transactionsor suspicious activity ater they havebeen executed. We apply trend monitor-ing sotware to identiy unusual activity

that otherwise would have been dicultto detect by our employees.

Cd cad fad

Credit card raud, a wide-ranging termrelated to the use o credit cards ordebit cards as a raudulent source ounds in a transaction, is one o themost common nancial crimes.

The raud prevention unit at SEB Cardmonitors over 3.2 million credit and debitcards and some 00,000 daily transac-tions and authorisations. To combatthe rising level o raud activity weintroduced a more sophisticated raudprevention module, the Fraud Preven-tor, in our authorisation system during2009. The Fraud Preventor enables usto apply a variety o techniques to stopongoing raud attempts earlier and moreeciently. Together with measures toimprove card security and the securityo Internet payments, this contributedto reducing card raud costs in 2009 by

more than SE 30m compared with 2008.

Bby ad coo

ribery and corruption are unwelcomebut still exist in international businesspractices, more prevalent in certaincountries and industries than in others.Corruption threatens good governance,sustainable development, democraticprocesses and air business practices.

Working to prevent bribery and corrup-tion touches upon both our procedures

against money laundering and our Codeo usiness Conduct.

In our monitoring o potentially suspi-cious nancial activity, we are requiredto identiy politically exposed people(Es), persons that hold or have heldimportant political unctions in a coun-try and are thereore considered to havea higher risk o being involved in cor-

ruption. We are also required to applyenhanced due diligence procedures totheir account. We may ourselves also bedirectly aected, in that our employeesengage in bribery or corrupt activity.

W bow ocd

Our whistle blowing procedure encour-ages our employees to raise concernsabout possible violations to SEBs Codeo usiness Conduct. I employees eelthat they are not getting an appropriateor adequate response at the local level,or i the issue raised is o importancebeyond the local level, we have estab-lished channels to the Group level.

swd aca

coao aacd ooay

T TT ochildren has increased dramatically inrecent years. To seek to counter thisdevelopment, SEB in 2009 joined therecently ormed wedish Financial Coali-tion against Child Pornography.

The purpose o the coalition, which en-

gages all o the largest wedish banks, thewedish ankers Association, the wed-ish Police and the non-prot organisationcpat, is to join orces to prevent andobstruct payments or child pornographythrough the wedish nancial system. Itbuilds on existing measures undertakenby the banks and card issuers VIA andMastercard to prevent payments to com-panies involved in criminal activity.

As part o the agreement, wedish bankswill be co-operating closely with the wed-

ish Police, providing the Police with toolsto acilitate the identication o compa-nies that commercialise child pornographyand to block payments to them.

The wedish coalition model serves asthe role model or the recentlylaunched uropean FinancialCoalition against child sexualabuse content on the Internet.

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robow

As an institutional investor, SB

seeks to promote sound princi-

ples or corporate governance

and corporate responsibility. We

place importance on structured

sustainability work in our porto-

lio companies, which we believe

is a prerequisite or long-term

value creation and attractive

fnancial returns.

largest institu-tional shareholders, investing on behalo private, corporate and institutionalclients in companies around the globe.To act responsibly as an owner ormsan important part o the mandate givenby our customers. At year-end 2009,we had SE ,27 bn o assets undermanagement.

Cooa ovac

Our ocus as an active owner is con-centrated to those portolio companieswhere we are a major shareholder, i.e.where we own more than per cent othe outstanding shares. In practice, thismeans a concentration to Nordic listedcompanies.

We perorm our ownership role primar-ily through participation in electioncommittees; by exercising our votingrights beore and during the Annual

General Meeting; through dialogue withportolio companies and through col-laboration with other shareholders oncorporate governance issues.

SEB was represented on the nominationcommittees o 23 companies in 2009:Avanza, Axood, eijer lectronics, il-lerud, jrn org, lekta, niro, Fabege,Getinge, Hakon Invest, S Network,Intrum Justitia, , Latour, Loomis, ,Niscayah, Orc otware, Orifame, SS,S, ecuritas and Teliaonera.

Our ambition is to participate at thoseAnnual General Meetings where we are amajor shareholder or where the holdingsare important or the overall return o theunds. In 2009, we participated and votedat around 0 Annual General Meetings.

pc fo rob ivm

y signing the Principles or e-sponsible Investments (R) in 2008, werecognise that environmental, social,and governance issues can aect theperormance o investment portolios.We also recognise that the application othe Principles can better align investorswith broader objectives o society. It isthereore an important step in our con-tribution to the s eorts to promotegood corporate citizenship and to builda more stable, sustainable and inclusiveglobal economy. We will submit our rstR progress report during 200.

The ownership policy o SEB InvestmentManagement has been updated to refectthe increased emphasis on responsibleownership (eective as o February 200).

icooao of aaby

ca vm maam

To screen the companies we invest inregarding their compliance with inter-national conventions and guidelines on

environment, labour practices, humanrights, inhumane weapons and corrup-tion is an important part o our work. Atthe end o 2009, we signed an agree-ment with ES Investment ervices toperorm the screening on our behal, andto provide company analysis.

We believe that companies

who actively manage the

environmental, social and

governance aspects otheir business can reduce

risks and capture new

opportunities.

Companies will be screened or possibleviolations twice a year. The assessmentis made within the ramework o the Global Compact, interpreting more than0 international conventions includingthe Universal Declaration o Humanights, the International Labour Organi-zations Fundamental Conventions andthe E guidelines or Multinationalnterprises. ngagement with or exclu-sion o a portolio company is recom-mended i at least one o the ollowingcriteria is met:- An examination by an ocial and

credible body conrms the connec-

Investors that have signed

the UN Principles for

Responsible Investment

collectively manage over

UD 20 trillion of assets.

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tion between the company and thereported violation.

- anctions against the company havebeen issued by regional/nationalcourts or an ocial body.

- The company has admitted responsi-bility or the incident(s).

A portolio company can be subject todialogue or exclusion even i it is notviolating international conventions,but otherwise can be considered to beviolating or ignoring sound ethics andimportant environmental concerns, or insome other serious manner is deviatingrom desirable governance principles.

The development o indu-

try s

Documents

SEB Corporate Sustainability report 2009