today we are Publishing our 20 24 responsible investment report we look forward to presenting some highlights

the work we do on responsible investment is crucial for the long term value of the fund And That's why we here today

The report shows the extent of our work across the whole fun as number shows more than 3000 company meetings shareholder proposals net Zero dialogues 49 Risk based investments 30 consultations research and analysis Wow we have been busy

but when we zoom in three themes appear long term climate and transparency and let's start with long term Because that's our responsible investment work is all about creating long term value for Future Generations

We are an investor in almost 9000 companies Across 70 markets and our Returns comes from the value responsible and Think and Act long Ter l many companies men one challenge to longis the pressure of qu reporting rep Frequency and long value creations and key points are simple qu reporting and the pressure on management to reach earnings guidance can lead to short term decisions it May hinder growth and innovation and it May also deter companies from accessing public markets

This is not about frequent Disclosure and activ May lead behav that is not long value Creation companies incen to make long decision CE Simply longer term incentives in CE pay Remains a Priority to us We Believe the current system is not good enough at aligning the interest of ceos with us as shareholders

and last year we were busy Gathering Invest views on copay in the US and weed much our Arum and on longer Ter stock lins isly prefer model board voting 426 PES Intel and Amazon one company we supported one we did not

Intel we voted against because misalignment between pay and performance the structure of the to see that the CEO later in the year Ste down on the other hand we have Amazon in 2023 Amazon mov to a simple transparent CEO pay package the CEO is Paid in shares that pay out gradually over 10 years incentivizing him to think and Act long term and this is the kind of approach We want to see

the long Perspective is also crucial in other areas not the least the climate transition and May can more that will you I can climate Risk is financial Risk extreme weather Flods fires Storms last year weather induc Price increases in things like olives Coco coffee oranges and we likely to record insurance payouts to so climate change affects the companies we invest in and World growth And That's why we are working for the transition of our investment portfolio That's in our economic interest and it's what our climate plan is all about

and as we coming into the last year of the climate plan 2024 Was all about making sure we progress on the really ambitious targets we set back in 2022

Is it working Well data we Show to shows you real and increasing climate Risk We are seeing a need for a faster transition and more government action It's Complex It's challenging but we also seeing the transition happening we seeing record renewables investments we seeing more targets from companies and we seeing emissions falling and this Matters to us because our data also shows that if you have good climate targets you actually reduce your emissions those without targets reduce less than those with 74% of our emissions in the portfolio are now covered by scope one and scope 2 science Bas targets And that's up 6% from 2023 and Dialog becoming richer to climate related topics that me ched incre since 2019 and this nice slide shows sort of growth from over last years you know as you can see the numbers are coming up the topics are getting more Concrete And it really points to it now being a very central part of our company dialogue and we like to see this because they say that the proof of the Pudding is in the eating and we said in our climate plan that the largest emits should reduce emissions and Will support transition

emissions Inter Dat look How often the Trans in ear and slightly picture Mass increase and May reduction some thats 2 ener cris comping How do How doon most efficiently Which Invest mak sense now and this focus on Concrete short Ter action is good but we would also like to remind companies that we need a longterm Focus to because this is not one the for long Val forer long AC long term thinking This is important for the fund climate Risk actually also important in itself Because we see that markets Rea negatively today When companies fail to deliver on their climate Commitments as you see here our analysis shows a clear drop in share prices when companies lose their climate Target approval Credible climate targets and execution matter for value Creation and if you like this type of analysis I suggest you go to our nature and climate disclosures we also publish those today There is a lot there

and this Takes Us to our third topic kar transparency Yes transparency in is powerful and crucial to our have published extensive information about work with climate and nature and climate and nature Depend on each other and in this report highlight of integrated approach to These topics But the Disclosure also include information about a lot more climate scenarios net Zero Target setting implied temperature climate investing Exposure nature risks using new methods we have also started to release more information throughout the Year rather than in the annual report from Today you can now go into our website nbim.no and view all our engagement and you can see some examples here this site will be updated daily with extensive information available

transparency on how we work continues to be aim to be Trans topics that challenging will EX that Yes let take EX transparency and accountability together very comple upd standards markets and standards evolve and last year we strengthen our expectation for companies operating in conflict zones not least on enhanced vigilance in affected areas and unfortunately this topic is a topic that continues to loll topic slide shows progen comp to the comp straight forward man risks and follow International standards is having systems like help Us smarter about who we talk to and we talk to them about another challenging topic we worked on for a long time corporate lobbying actually the first topic we Raised as responsible investor Back In I companies to say one thing and do another and this big topic for sholder meetings asort iir climate lob Is Key concern for us at data for companies in to back Dial business strategy last year the top topics Capital management effective boards remuneration and all of this is laid out in our report and our website so I Again recomm you all to take a look

But we can't discuss transparency without mentioning voting kar absolutely because transparency here Really Matters last year access to the market exp tricky yes vote ways Active ownership can support our Invest selling shares better option su business mod if companies we can reverse that decision These are financial decisions we call them Risk based investments we sell the bad Apples as you see from this slide we divested from 49 companies last year and we Dec div decs total as you see here because we thought the company practices had improved and on this we make money to Since we started with this more than actually 10 years ago We are made 64 basis points And that's more than 16 billion Norwegian Kroner and it's interesting to see that almost half of this is made by divestment because of climate Risk I think this shows very well have three themes Come Together through responsible investment longterm Outlook climate and transparency