K2A Knaust & Andersson Fastigheter : Övriga dokument

23

Green Finance Framework

K2A Knaust & Andersson Fastigheter AB (publ)

Table of contents

K2A at a glance	3
K2A's ESG approach	3
E- Environmental responsibility	3
S - Social responsibility	4
G - Governance & reporting	4
The United Nations Sustainable Development Goals	5
ESG targets	5
EU Taxonomy	6

The Green Finance Framework	7
Update of the Green Finance Framework	7
Use of proceeds	7
Process for asset evaluation & selection	9
Management of proceeds	9
Reporting	10
External review	10

K2A at a glance

K2A Knaust & Andersson Fastigheter AB ("K2A" or the "Company") was founded in 2013 and is a real estate company focusing on long-termmanagement of new-builtrental apartments, produced in the Company's own factories, for all types of housing. As of Q3 2022, the property portfolio includes student housing 44%), rental buildings (54%) and community service buildings (2%), such as elderly care centres, schools, etc. The Company is currently operating in 26 locations in Sweden, from Kiruna in the north to Lund in the south. The business Is concentrated to Stockholm, Mälardalen and a number of selected university cities located in other parts of Sweden, where demand for rental apartments is high.

Business concept & model

K2A's main target group is smaller households, with 1-2 people, a type of household that constitutes the largest market in Sweden. By offering smaller but well-planned housing with favourable rents in attractive locations, K2A contributes to an inclusive housing market. K2A is involved in the entire value chain, from analysis of the housing market to efficient management of sustainable apartments.

K2A's ESG approach

E- Environmental responsibility

K2A certifies the majority of its buildings according to Nordic Swan Ecol abel, Miljöbyggnad iDrift and Passive house. The goal is that all buildings will be certified and undergo a climate risk assessment. K2A has completed a climate risk inventory of all buildings, analysing physical climate change risks and recommended remediation actions. The work constitutes the largest individual effort in environmental certification and climate risk inventory ever carried out in Sweden.

By managing its construction process in a sustainable way and using environmentally friendly raw materials, K2A has been able to decrease its environmental footprint remarkably. Through its subsidiary K2A Trähus, K2A produces apartment units in its own factories in Valdemarsvik and Gävle. The apartments are mostly built in locally produced Swedish wood, a renewable material that makes it possible to produce the apartments in a resource- and energy-efficient industrial process with lower climate impact compared to conventional house production. This method has made K2A

K2A's real estate portfolio

K2A's real estate portfolio mainly consists of housing built from year 2015 to present. In addition, some older buildings have undergone or are undergoing energy saving renovations. As of Q3 2022, the property and project portfolio comprises 9,872 apartments,

including 4,885 managed apartments, with a total property value of SEK 10,228 million. The aim is to be a significant market participant and a strong partner in the development of attractive, vibrant and sustainable communities.

7.

Digital strategy 1. Customer analysis

6.
Letting &
management	2.

8.Architect

Sustainability &

value creation

5.

Construction

3.

4.Land acquisition

Apartment production

the first manufacturer of prefabricated wooden apartment units that has been licensed to build according to the Nordic Swan Ecolabel (Sw. "Svanenmärkt"). All new construction of buildings from 2018 and onwards have been certified according to the Nordic Swan Ecolabel or equivalent.

K2A uses green electricity and, if available, green district heating for heating of management objects. In new production, K2A invests in energy-efficient solutions such as solar cells and geothermal heat, which are highly contributing measures to reduce the consumption of mainly heating and electricity. Energy-efficient solutions are thus found in both new and older buildings. For example,

K2A has installed solar panels on all new own-produced buildings and is adding solar panels on existing buildings, where applicable. Examples of other smart sustainable solutions initiated by K2A is the electric carpool ("BoBil"), which is exclusive to the

Company's customers in Umeå, Örebro, Haninge, Västerås, Gävle and Lund. During 2022, K2A also launched the electric cargo bike-pool, "BoBike".

3

S - Social responsibility

K2A is committed to be a part of the development of local communities in which the Company operates. For example, K2A engages in collaborations with local organisations such as Nya Kompisbyrån that offers activities with newly arrived immigrants where K2A engages the Company's customers into the activities. These types of collaborations can contribute to integration and development of social networks for both the customers and newly arrived immigrants, which is important both for the individual and society.

G - Governance & reporting

K2A is a property owner who takes responsibility for the impacts of its own operations and contributes to a sustainable development of society. The Company's efforts to limit and reduce the environmental impact of its business are based, among other things, on the principles of the UN Global Compact and are manifested in a guiding Sustainability Policy and a Code of Conduct that includes both employees and suppliers. K2A's CEO is ultimately responsible for the sustainability work. K2A's Board of Directors annually reviews the overall Sustainability Policy, strategy and sustainability goals, as well as risk analysis, including climate-related

risks and opportunities. In addition, K2A's board has set up a special Sustainability Committee.

The Sustainability Committee is responsible for designing and following up K2A's sustainability goals. The work and tasks of the Sustainability Committee are regulated by the committee's rules of procedure, which are adopted by the Board of Directors. The Chief Sustainability Officer assists the Sustainability Committee and is responsible for implementing sustainability goals in the organization as well as implementing measures and reporting on sustainability work. Chief Sustainability Officer reports directly to the CEO.

The management team is responsible for following up the outcome of the sustainability goals, including climate-related goals, risks and opportunities. Sustainability work is reported at monthly meetings and outcomes of sustainability work are reported four times a year.

In 2021, K2A updated its scenario analysis on climate related risks and opportunities according to the Task Force on Climate-relatedFinancial Disclosures ("TCFD"). K2A also reports according to the Global Reporting Initiative ("GRI") standards, Greenhouse Gas Protocol ("GHG protocol") and the EU Taxonomy.

In addition, K2A was the first company in the world with Green equity and won an award for the best sustainability report following a review of all companies listed on Nasdaq OMX Stockholm's Mid Cap list. In August 2022, K2A was certified as a Nasdaq ESG Transparency Partner, which is Nasdaq's accreditation specifically for companies that demonstrate a commitment to market transparency and raising environmental standards. K2A has also received validated targets by the Science Based Targets initiative ("SBTi") for the most ambitious scenario of 1.5°C.

4

The United Nations Sustainable Development Goals

K2A has done a sustainability assessment of its entire operations based on the UN Sustainable Development Goals ("SDGs"). The results shows that K2A is strongest in goals related to:

ESG targets

K2A's environmental goal is for the entire value chain to be climate positive as early as 2027, i.e. K2A will reduce more greenhouse gases than the Company's activities generate. K2A's target is to be the most sustainable real estate company. All new construction and investment properties shall be environmentally certified and undergo a climate risk assessment. K2A's customers shall further experience a higher level of housing satisfaction than the average renter in Sweden. K2A's pathway towards climate positive value chain in 2027 includes the following activities:

• Continue to use wood as primary building material
• Continue to work with energy efficient production processes
• Optimize the energy efficiency in existing buildings
• Further investments in renewable energy
• Fossil-freetransportation solutions throughout the value chain
• Work strategically with circularity in K2A's buildings
• Collaborate with key players to accelerate the pace of change in the industry

5