FULLTEXT DEL 3 AV 4
Årsredovisning 2024
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
107
Auditor’s report
Other Information than the annual accounts and
consolidated accounts
This document also contains other information than the
annual accounts and consolidated accounts and is
found on pages 1-48, 1 10-169 and 184-193. The other
information comprises also of the remuneration report
which we obtained prior to the date of this auditor’s
report. The Board of Directors and the Managing
Director are responsible for this other information.
Our opinion on the annual accounts and consolidat -
ed accounts does not cover this other information and
we do not express any form of assurance conclusion
regarding this other information.
In connection with our audit of the annual accounts
and consolidated accounts, our responsibility is to read
the information identified above and consider whether
the information is materially inconsistent with the
annual accounts and consolidated accounts. In this
procedure we also take into account our knowledge
otherwise obtained in the audit and assess whether the
information otherwise appears to be materially
misstated.
If we, based on the work performed concerning this
information, conclude that there is a material misstate -
ment of this other information, we are required to
report that fact. We have nothing to report in this
regard.
Responsibilities of the board of directors
and the Managing Director
The Board of Directors and the Managing Director are
responsible for the preparation of the annual accounts
and consolidated accounts and that they give a fair
presentation in accordance with the Annual Accounts
Act and, concerning the consolidated accounts, in
accordance with IFRS Accounting Standards as
adopted by the EU. The Board of Directors and the
Managing Director are also responsible for such
internal control as they determine is necessary to
enable the preparation of annual accounts and
consolidated accounts that are free from material
misstatement, whether due to fraud or error.
In preparing the annual accounts and consolidated
accounts The Board of Directors and the Managing
Director are responsible for the assessment of the
company’s and the group’s ability to continue as a
going concern. They disclose, as applicable, matters
related to going concern and using the going concern
basis of accounting. The going concern basis of
accounting is however not applied if the Board of Direc -
tors and the Managing Director intend to liquidate the
company, to cease operations, or has no realistic
alternative but to do so.
The Audit Committee shall, without prejudice to the
Board of Director’s responsibilities and tasks in general,
among other things oversee the company’s financial
reporting process.
Auditor’s responsibility
Our objectives are to obtain reasonable assurance
about whether the annual accounts and consolidated
accounts as a whole are free from material misstate -
ment, whether due to fraud or error, and to issue an
auditor’s report that includes our opinions. Reasonable
assurance is a high level of assurance, but is not a guar -
antee that an audit conducted in accordance with ISAs
and generally accepted auditing standards in Sweden
will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and
are considered material if, individually or in the
aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the
basis of these annual accounts and consolidated
accounts.
As part of an audit in accordance with ISAs, we exercise
professional judgment and maintain professional
scepticism throughout the audit. We also:
— Identify and assess the risks of material misstate -
ment of the annual accounts and consolidated
accounts, whether due to fraud or error, design and
perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinions. The
risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the
override of internal control.
— Obtain an understanding of the company’s internal
control relevant to our audit in order to design audit
procedures that are appropriate in the circumstanc -
es, but not for the purpose of expressing an opinion
on the effectiveness of the company’s internal
control.
— Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting
estimates and related disclosures made by the Board
of Directors and the Managing Director.
— Conclude on the appropriateness of the Board of
Directors’ and the Managing Director’s, use of the
going concern basis of accounting in preparing the
annual accounts and consolidated accounts. We also
draw a conclusion, based on the audit evidence
obtained, as to whether any material uncertainty
exists related to events or conditions that may cast
significant doubt on the company’s and the group’s
ability to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related
disclosures in the annual accounts and consolidated
accounts or, if such disclosures are inadequate, to
modify our opinion about the annual accounts and
consolidated accounts. Our conclusions are based on
the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions
may cause a company and a group to cease to
continue as a going concern.
— Evaluate the overall presentation, structure and
content of the annual accounts and consolidated
accounts, including the disclosures, and whether the
annual accounts and consolidated accounts
represent the underlying transactions and events in a
manner that achieves fair presentation.
— Plan and perform the group audit to obtain sufficient
and appropriate audit evidence regarding the
financial information of the entities or business units
within the group as a basis for forming an opinion on
the consolidated accounts. We are responsible for
the direction, supervision and review of the audit
work performed for purposes of the group audit. We
remain solely responsible for our opinions.
We must inform the Board of Directors of, among other
matters, the planned scope and timing of the audit. We
must also inform of significant audit findings during our
audit, including any significant deficiencies in internal
control that we identified.
We must also provide the Board of Directors with a
statement that we have complied with relevant ethical
requirements regarding independence, and to
communicate with them all relationships and other
matters that may reasonably be thought to bear on our
independence, and where applicable, measures that
have been taken to eliminate the threats or related
safeguards.
===== SIDA 108 =====
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
108
Auditor’s report
From the matters communicated with the Board of
Directors, we determine those matters that were of
most significance in the audit of the annual accounts
and consolidated accounts, including the most
important assessed risks for material misstatement, and
are therefore the key audit matters. We describe these
matters in the auditor’s report unless law or regulation
precludes disclosure about the matter.
REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS
Auditor’s audit of the administration and the proposed
appropriations of profit or loss
Opinions
In addition to our audit of the annual accounts and
consolidated accounts, we have also audited the
administration of the Board of Directors and the
Managing Director of EQT AB for the year 2024 and the
proposed appropriations of the company’s profit or
loss.
We recommend to the general meeting of share -
holders that the profit be appropriated in accordance
with the proposal in the statutory administration report
and that the members of the Board of Directors and the
Managing Director be discharged from liability for the
financial year.
Basis for Opinions
We conducted the audit in accordance with generally
accepted auditing standards in Sweden. Our responsi -
bilities under those standards are further described in
the Auditor’s Responsibilities section. We are independ -
ent of the parent company and the group in accordance
with professional ethics for accountants in Sweden and
have otherwise fulfilled our ethical responsibilities in
accordance with these requirements.
We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a
basis for our opinions.
Responsibilities of the Board of Directors and the
Managing Director
The Board of Directors is responsible for the proposal
for appropriations of the company’s profit or loss. At the
proposal of a dividend, this includes an assessment of
whether the dividend is justifiable considering the
requirements which the company’s and the group’s type
of operations, size and risks place on the size of the
parent company’s and the group’s equity, consolidation
requirements, liquidity and position in general.
The Board of Directors is responsible for the
company’s organization and the administration of the
company’s affairs. This includes among other things
continuous assessment of the company’s and the
group’s financial situation and ensuring that the
company’s organization is designed so that the
accounting, management of assets and the company’s
financial affairs otherwise are controlled in a reassur -
ing manner.
The Managing Director shall manage the ongoing
administration according to the Board of Directors’
guidelines and instructions and among other matters
take measures that are necessary to fulfill the compa -
ny’s accounting in accordance with law and handle the
management of assets in a reassuring manner.
Auditor’s responsibility
Our objective concerning the audit of the administra -
tion, and thereby our opinion about discharge from
liability, is to obtain audit evidence to assess with a
reasonable degree of assurance whether any member
of the Board of Directors or the Managing Director in
any material respect:
— has undertaken any action or been guilty of any
omission which can give rise to liability to the
company, or
— in any other way has acted in contravention of the
Companies Act, the Annual Accounts Act or the
Articles of Association.
Our objective concerning the audit of the proposed
appropriations of the company’s profit or loss, and
thereby our opinion about this, is to assess with
reasonable degree of assurance whether the proposal
is in accordance with the Companies Act.
Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in
accordance with generally accepted auditing standards
in Sweden will always detect actions or omissions that
can give rise to liability to the company, or that the
proposed appropriations of the company’s profit or loss
are not in accordance with the Companies Act.
As part of an audit in accordance with generally
accepted auditing standards in Sweden, we exercise
professional judgment and maintain professional
scepticism throughout the audit. The examination of the
administration and the proposed appropriations of the
company’s profit or loss is based primarily on the audit
of the accounts. Additional audit procedures performed
are based on our professional judgment with starting
point in risk and materiality. This means that we focus
the examination on such actions, areas and relation -
ships that are material for the operations and where
deviations and violations would have particular
importance for the company’s situation. We examine
and test decisions undertaken, support for decisions,
actions taken and other circumstances that are relevant
to our opinion concerning discharge from liability. As a
basis for our opinion on the Board of Directors’
proposed appropriations of the company’s profit or loss
we examined whether the proposal is in accordance
with the Companies Act.
===== SIDA 109 =====
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
109
Auditor’s report
THE AUDITOR’S EXAMINATION OF THE ESEF
REPORT
Opinion
In addition to our audit of the annual accounts and
consolidated accounts, we have also examined that the
Board of Directors and the Managing Director have
prepared the annual accounts and consolidated
accounts in a format that enables uniform electronic
reporting (the Esef report) pursuant to Chapter 16,
Section 4(a) of the Swedish Securities Market Act
(2007:528) for EQT AB for year 2024.
Our examination and our opinion relate only to the
statutory requirements.
In our opinion, the Esef report has been prepared in
a format that, in all material respects, enables uniform
electronic reporting.
Basis for opinion
We have performed the examination in accordance
with FAR’s recommendation RevR 18 Examination of the
Esef report. Our responsibility under this recommenda -
tion is described in more detail in the Auditors’
responsibility section. We are independent of EQT AB in
accordance with professional ethics for accountants in
Sweden and have otherwise fulfilled our ethical
responsibilities in accordance with these requirements.
We believe that the evidence we have obtained is
sufficient and appropriate to provide a basis for our
opinion.
Responsibilities of the Board of Directors and the
Managing Director
The Board of Directors and the Managing Director are
responsible for the preparation of the Esef report in
accordance with the Chapter 16, Section 4(a) of the
Swedish Securities Market Act (2007:528), and for such
internal control that the Board of Directors and the
Managing Director determine is necessary to prepare
the Esef report without material misstatements,
whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to obtain reasonable assurance
whether the Esef report is in all material respects
prepared in a format that meets the requirements of
Chapter 16, Section 4(a) of the Swedish Securities
Market Act (2007:528), based on the procedures
performed.
RevR 18 requires us to plan and execute procedures
to achieve reasonable assurance that the Esef report is
prepared in a format that meets these requirements.
Reasonable assurance is a high level of assurance,
but it is not a guarantee that an engagement carried
out according to RevR 18 and generally accepted
auditing standards in Sweden will always detect a
material misstatement when it exists. Misstatements
can arise from fraud or error and are considered
material if, individually or in aggregate, they could
reasonably be expected to influence the economic
decisions of users taken on the basis of the Esef report.
The audit firm applies International Standard on
Quality Management 1, which requires the firm to
design, implement and operate a system of quality
management including policies or procedures regard -
ing compliance with ethical requirements, professional
standards and applicable legal and regulatory
requirements.
The examination involves obtaining evidence,
through various procedures, that the Esef report has
been prepared in a format that enables uniform
electronic reporting of the annual accounts and
consolidated accounts. The procedures selected
depend on the auditor’s judgment, including the
assessment of the risks of material misstatement in the
report, whether due to fraud or error. In carrying out
this risk assessment, and in order to design procedures
that are appropriate in the circumstances, the auditor
considers those elements of internal control that are
relevant to the preparation of the Esef report by the
Board of Directors and the Managing Director, but not
for the purpose of expressing an opinion on the
effectiveness of those internal controls. The examina-
tion also includes an evaluation of the appropriateness
and reasonableness of the assumptions made by the
Board of Directors and the Managing Director.
The procedures mainly include a validation that the
Esef report has been prepared in a valid XHTML format
and a reconciliation of the Esef report with the audited
annual accounts and consolidated accounts.
Furthermore, the procedures also include an
assessment of whether the consolidated statement of
financial performance, financial position, changes in
equity, cash flow and disclosures in the Esef report have
been marked with iXBRL in accordance with what
follows from the Esef regulation.
KPMG AB, Box 382, 101 27 , Stockholm, was appointed
auditor of EQT AB by the general meeting of the
shareholders on the 27 May 2024. KPMG AB or auditors
operating at KPMG AB have been the company’s
auditor since 2012.
Stockholm 12 March 2025
KPMG AB
Håkan Olsson Reising
Authorized Public Accountant
===== SIDA 110 =====
110
Sustainability notes
000 Sustainability notes
000 3.1 General disclosures
000 3.2 Climate change
000 3.3 Own workforce
000 3.4 Workers in the value chain
000 3.5 Business conduct
000 3.6 Responsible investment approach for EQT funds
000 3.7 Sustainability-themed products and services in portfolio
companies
000 Sustainability-linked financing
000 GRI content index
000 Auditor’s limited assurance report
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
These sustainability notes aim to present EQT’s material sustainability topics
in a structured way while reflecting relevant sustainability reporting frame -
works.
#03
Sustainability notes
110 Sustainability notes
1 13 3.1 General disclosures
125 3.2 Climate change
138 3.3 Own workforce
147 3.4 Workers in the value chain
152 3.5 Business conduct
158 3.6 Responsible investment approach for EQT funds
162 3.7 Sustainability-themed products and services in the
portfolio companies
165 Sustainability-linked financing
166 GRI content index
170 Auditor’s limited assurance report
===== SIDA 111 =====
111
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
Contents
About the sustainability notes
As a result of the Swedish implementation of the EU Corporate Sustainability
Reporting Directive (CSRD), EQT AB’s Annual and Sustainability Report for 2024
is not required to be prepared in accordance with the requirements of the European
Sustainability Reporting Standards (ESRS) adopted pursuant to Article 19a or 29a
of the EU Accounting Directive. Accordingly, as in previous years, EQT AB continues
to be subject to the application of the non-financial reporting requirements set out
pursuant to the EU Non-Financial Reporting Directive (NFRD) as implemented under
applicable Swedish law and in accordance with the Annual Accountants Act, the
older wording applied before 1 July 2024.
Notwithstanding the above, the content and topic boundaries related to EQT AB’s
sustainability reporting are based on EQT’s double materiality analysis, which was
conducted in late 2023 with a review in 2024 and includes an assessment of material
impacts according to the GRI 2021 standards.
In the following sections of these sustainability notes, EQT AB has aimed to present
its material impacts, risks, and opportunities in a way that aligns, as much as
possible, with the coming requirements of the ESRS. EQT has also used the definitions
and terminology used to describe sustainability topics in the ESRS. EQT AB has
chosen to not report on certain disclosure requirements within material topics,
mainly due to market evolvement.
EQT’s external auditors perform limited assurance over the Sustainability notes. The
limited assurance activities performed by the external auditor are described in the
Assurance report. The external assurance provider has been appointed in light of the
requirements and guidance in Disclosure 2-5 in GRI 2: General Disclosures 2021. Any
omissions or comments against GRI are found in the GRI content index.
EQT AB acknowledges that the scope and content of its Sustainability notes will
adapt over time, as reporting standards and market practices continue to evolve.
#3.1
112 General disclosures
11 3 G eneral information
11 4 S ustainability governance
1 18 Strategy
1 23 D isclosures on the materiality assessment
process
#3.2
1 25 Climate change
1 27 S trategy - Transition plan for climate change
mitigation
1 27 S trategy and business model resilience to
cl imate change
1 29 P olicies and guidelines
13 0 A ctions
1 31 A mbitions, targets and performance
13 5 E U Taxonomy Statement
#3 .3
138 Own workforce
1 40 P olicies and guidelines
1 41 P rocesses for engaging with own workers
14 2 P rocesses for remediate negative impacts
and channels to raise concerns
14 3 Actions
1 44 A mbitions and performance
#3.4
147 Workers in the value chain
1 49 P olicies and guidelines
14 9 P rocesses for engaging with value chain
workers
1 50 P rocesses for remediate negative impacts
and channels to raise concerns
15 0 Actions
15 1 Ambitions
#3.5
1 52 Business conduct
1 53 P olicies and guidelines
1 55 Actions
15 7 T arget, ambitions and performance
#3.6
158 Responsible investment approach for
E QT funds
1 59 Strategy
1 60 P olicies and guidelines
1 61 Actions
1 61 T argets and performance
#3.7
162 Sustainability-themed products and services
i n the portfolio companies
1 63 Strategy
1 63 P olicies and guidelines
1 64 Actions
1 64 T argets and performance
165 Sustainability-linked financing
166 GRI content index
170 Auditor´ s limited assurance report
===== SIDA 112 =====
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
# 3.1
General disclosures
113 General information
113 Reporting approach and scope
114 Sustainability Governance
114 Roles, responsibilities and expertise
1 15 — Composition of and sustainability expertise in governing bodies
1 15 Sustainability information and matters addressed by the Board,
committees and sustainability forums
1 15 Sustainability-related performance in incentive schemes
1 16 Statement on due diligence
1 16 — Business model and due diligence in the value chain
1 16 Risk management and internal controls over sustainability reporting
118 Strategy
1 18 Strategy, business model and value chain
1 18 — Business model
1 18 — Value chain
1 18 — Sustainability strategy
120 Interests and views of stakeholders
121 Material impacts, risks and opportunities and their interaction
with strategy and business model
121 — List of material sustainability matters
121 — Resilience and capacity to take advantage of opportunities
121 — Financial effect and time frame
121 — Changes to the material impacts, risks and opportunities
compared to previous reporting period
123 Disclosures on the materiality assessment process
123 The double materiality assessment process
123 — Methodology
123 — Materiality approach
123 — Threshold
124 — Decision-making, internal controls and risk management
===== SIDA 113 =====
113
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
General disclosures
General information
Reporting approach and scope
EQT AB’s sustainability notes for fiscal year 2024 are in
accordance with the Global Reporting Initiative (GRI)
Standards. The sustainability notes have been prepared
on a consolidated basis 1) and the scope is the same as
for the consolidated financial statements for EQT AB.
The notes also cover material topics in EQT AB Group’s
upstream and downstream value chain, for more
information, please see the section Value chain.
The double materiality analysis which underpins the
sustainability related topics covered in EQT AB’s
sustainability notes considers risks to and opportunities
for EQT AB as a business, as well as the positive and
negative impacts associated with EQT AB’s own
operations and value chains. Impacts may also be
material from a financial perspective over the short,
medium or long term. Any policies, actions, metrics or
targets used to describe the management of the
impacts associated with EQT AB’s own operations and
value chain should be understood in the context of EQT
AB’s overraching obligations to its shareholders as
described in its Articles of Association, and its legal and
regulatory obligations
Sustainability is an integrated part of EQT AB
Group’s strategy, with the overarching purpose of
creating long-term financial value through driving
positive impact.
This section provides an overview of EQT’s
sustainability strategy, including value chain
considerations, and the double materiality process
that defines what is important for EQT and the
scope of EQT AB Group’s sustainability reporting.
1) EQT AB Group has not used the option to omit a specific piece of information
corresponding to intellectual property, know-how or the results of innovation.
Nor has EQT AB Group used the exemption for the disclosure of impending
developments or matters under negotiation as allowed for in Articles 19a(3)
and 29a(3) of Directive 2013/34/EU. For the financial year 2024, none of EQT
AB’s subsidiaries are subject to individual sustainability reporting obligations
according to CSRD.
===== SIDA 114 =====
114
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
General disclosures
Sustainability governance
The Sustainability Committee monitors the firmwide
sustainability strategy approved by the Board, where
the results from the double materiality assessment is a
key input. The double materiality assessment is subject
to an annual review and is ultimately approved by the
Board. Tri-annually a more thorough review of impacts,
risks and opportunities is planned to be conducted as a
basis for an updated sustainability strategy. The Global
Head of Sustainable Transformation is responsible for
the execution of the approved strategy and the prepa -
ration of the double materiality assessment, providing
regular updates to the Sustainability Committee. The
Global Head of Sustainable Transformation is part of
the Executive Committee and reports to the Chief
Commercial Officer, who in turn reports to the CEO. The
CEO is generally an observer at the Sustainability
Committee’s meetings.
The Audit Committee consists of board members
of EQT AB and monitors financial and sustainability
reporting and the efficiency of internal controls and risk
management.
The Remuneration Committee prepares the Board’s
decisions on principles for remuneration, including
sustainability considerations. There is also a Risk
Committee that annually reviews enterprise risk,
including applicable investment risk exposures which
is subsequently presented to the Executive Committee,
Audit Committee and Board. For more information
regarding roles and expertise related to business
conduct, please see the section Governance - Business
conduct.
To align and implement the sustainability strategy
across the EQT AB Group, in line with the overall
business strategy and goals, there is a Sustainability
Management Team (SMT), consisting of the Global
Head of Sustainable Transformation, the Heads of
Roles, responsibilities and expertise
EQT AB’s Board has the ultimate responsibility for EQT
AB Group’s strategy and in 2023, the Board approved
the current sustainability strategy and objectives. The
Board applies written rules of procedures, which
among other things, set out the allocation of responsi -
bilities between the Board and its committees. The rules
of procedure are reviewed annually and adopted at the
inaugural Board meeting each year.
The EQT AB Board has established a Sustainability
Committee comprising board members, with the
Chairperson of the Committee providing regular
updates to the full Board. The Sustainability Committee
offers a structure for discussions relating to sustainabil -
ity topics with the EQT Executive Committee, thus being
a strategic sounding board on EQT’s sustainability
strategy, reviewing performance on objectives and
KPIs, and discussing emerging topics.
Illustrative and simplification of high-level sustainability governance
EQT AB Board
Overall strategy, business and organization of the EQT AB Group
Sustainability Committee
Monitor the firmwide
sustainability strategy
approved by
the Board
Global Head
of Sustainable
Transformation
Risk Committee
CFO
Audit Committee
Monitor financial
and sustainability reporting
and the efficiency of
internal controls
Remuneration Committee
Prepare the Board's
decisions on remuneration
(including sustainability
linked incentives)
EQT Executive Committee
Responsible for preparation and execution on decided strategy
and ongoing business
EQT aims to ensure clear accountability
and transparency for EQT’s corporate
operations and EQT funds’ investments in
order to drive long-lasting sustainable
transformation.
Sustainability of all business lines, Head of Corporate
Sustainability and Head of Sustainability Academy and
Client Relations. The SMT meets on a regular basis to
discuss firmwide strategic sustainability projects and
risk management, and ensures coordination and
aligned planning and communication across the
business lines.
EQT’s Group Finance function carries out the
sustainability reporting activities required pursuant to
the Swedish Annual Accounts Act. The Group Finance
function reports to the CFO, who has a direct reporting
line to the CEO. The Group Risk function assesses risk
management processes and reports relevant risks to
the Risk Committee and the Audit Committee.
===== SIDA 115 =====
115
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
General disclosures
Global Head of Sustainable Transformation
Group Sustainability
— Development and performance monitoring of the
firmwide sustainability strategy, policies and
guidelines, including the double materiality
assessment
— Sustainability data and operations
— Client and shareholder engagement around
sustainability
Business Line Sustainability
— Business line specific strategy
— Implementation of firmwide standards
— Sustainability and impact data collection and
monitoring
CFO
Group Finance
Sustainability reporting e.g.
— I nternal control and data collection processes
Group Risk
— Risk management processes
COMPOSITION OF AND SUSTAINABILITY
EXPERTISE IN GOVERNING BODIES
EQT AB’s Board has extensive experience in all of EQT’s
key markets. To further strengthen the sustainability-
related expertise of the Board, members are receiving
upskilling and insights through annual sustainability
deep dives and are invited to conduct e-learning
training on specific topics.
The Sustainability Committee members are receiv -
ing additional upskilling and insights as part of the
meetings with internal and, at times, external experts.
The internal experts that the Sustainability Committee
has access to include for example sustainability special-
ists from the EQT Group or business line sustainability
teams, and sector-experts from the investment advisory
teams. The quarterly Sustainability Committee meet -
ings cover key topics from the sustainability strategy
and the related material impacts, risk and opportuni -
ties, as well as topics or themes of more emerging
nature with a purpose to continuously build out relevant
skills.
For more information regarding the composition
and expertise in the EQT AB Board and Executive
Committee, please see the Corporate Governance
Report.
Sustainability information and matters
addressed by the Board, committees and
sustainability forums
Sustainability is an integrated part of EQT AB Group’s
strategy, with the overarching purpose of creating
long-term financial value through driving positive
impact. As part of the annual sustainability deep dive,
the Board receives an update on the sustainability
strategy, including key initiatives, as well as the perfor -
mance of sustainability metrics and targets related to
material sustainability matters. The Board, Audit
Committee and Executive Committee, also receive an
annual risk, regulatory, and compliance report which
includes, when relevant, sustainability matters, pre -
sented by the Global Head of Risk, Regulatory &
Compliance.
This report provides a comprehensive overview of
developments in risk, regulatory, and compliance areas,
including updates on relevant trainings, projects, and
control mechanisms based on EQT's governing docu -
ments.
The Sustainability Committee monitors the perfor -
mance of the sustainability strategy implementation
Sustainability Management Team
and performs deep dives into topical strategic areas.
The Sustainability Committee has met on a quarterly
basis during 2024 and examples of areas discussed
were the initiative on sustainability-themed products
and services, sustainability performance in the portfo -
lio, internal and portfolio company diversity, and the
double materiality assessment, including overview of
the material impacts, risks and opportunities. For more
information, please see the section Material impacts,
risks and opportunities and their interaction with
strategy and business model.
Throughout the year, the Audit Committee received
regular updates on the implementation of the CSRD,
monitored sustainability reporting and preparation of
the sustainability notes, and assessed the efficiency of
internal controls. Furthermore, the Remuneration
Committee has during the year been involved in
preparing the Board’s decisions on sustainability linked
incentives.
EQT has internal sounding boards in place to ensure
firm-wide engagement, acceleration and integration of
the sustainability strategy. The Bridge Forum consists of
senior partners and investment committee members
with a purpose to bridge the gap between sustainability
ambitions and current business practices, ensure
sustainability ownership and support the work to unlock
sustainable transformation at EQT. EQT also convenes
forums with next-generation leaders.
Sustainability-related performance
in incentive schemes
EQT recognizes that sustainability-linked incentives are
a powerful tool for encouraging behaviors and actions
that advance sustainability performance. For more
information regarding the sustainability-linked incen -
tives please see the Remuneration Report on EQT’s
website
1).
1) https://eqtgroup.com/shareholders/corporate-governance
===== SIDA 116 =====
116
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
General disclosures
Statement on due diligence
EQT AB aims to present its material impacts, risks, and
opportunities in a way that aligns, as much as possible,
with the relevant requirements of the European Sustain -
ability Reporting Standards (ESRS). Due diligence,
according to the ESRS, is the process by which
undertakings identify, prevent, mitigate and account for
how actual and potential negative impacts on the
environment and people connected with the business
are addressed. In EQT’s business context, due diligence
is a key part of the EQT funds’ investment cycle, when
assessing new investments. In the ESRS definition, the
concept is broader and encompasses various processes
in the organization, covering both internal operations
and business relationships where EQT seeks to assess
impacts, identify and mitigate risks, and capture
opportunities related to sustainability matters. For more
information regarding the relevant processes and
related governance, policies and procedures please see
other sections of the Sustainability notes. See the
illustration on the following page.
BUSINESS MODEL AND DUE DILIGENCE
IN THE VALUE CHAIN
As part of EQT’s responsible investment and ownership
approach, to appropriately identify and manage risk,
EQT funds incorporate relevant sustainability consider -
ations into the investment and value creation process.
This involves due diligence with analyses of material
sustainability aspects. The outcome of the sustainability
analysis is documented in the investment recommenda -
tion materials presented to the managers and/or
general partners of the various EQT funds and consid -
ered in review of the investment opportunity. For more
information, please see the Responsible investment
approach for EQT funds.
Risk management and internal controls
over sustainability reporting
The Audit Committee monitors EQT’s financial and
sustainability reporting and the efficiency of EQT’s
internal controls and risk management. The Audit
Committee also keeps itself informed regarding the
audit and limited assurance of the Annual and Sustain-
ability Report.
Sustainability data is sourced from multiple
systems and contributors within the organization, as
well as directly from EQT funds’ portfolio companies.
The pro cesses and controls related to sustainability
reporting are integrated into EQT AB’s overall internal
control framework, involving various functions across
the group with clear roles and responsibilities defined.
These controls are designed to mitigate risks related to
data integrity, with the aim to ensure sustainability
reporting is both accurate and reliable. With rapid
growth and recent acquisitions, EQT is continuously
working to ensure more complete coverage.
To monitor the effectiveness of EQT's internal
controls, the Risk, Regulatory & Compliance team
oversees a self-assessment process, with the results
presented to the Risk Committee, Audit Committee and
the Board annually. In addition, the Regulatory, Risk &
Compliance team regularly performs independent
reviews to evaluate the effectiveness of existing
controls in mitigating risks. For more information
regarding the risk management and the internal
control framework, please see the Corporate Gover-
nance Report.
===== SIDA 117 =====
Core elements of due diligence
Sections in the Sustainability notes
General disclosures Environment Social Governance
A
Embedding due diligence
in governance, strategy
and business model
— Sustainability information and matters addressed
by the Board, committees and sustainability forums
— Sustainability-related performance in incentive
schemes
— Material impacts, risks and opportunities and their
interaction with strategy and business model
B
Engaging with affected
stakeholders in all key
steps of the due diligence
— Sustainability information and matters addressed
by the Board, committees and sustainability forums
— Interests and views of stakeholders
— The double materiality assessment process
— Strategy and business model resilience to climate
change
— Policies and guidelines
— Policies and guidelines, e.g., EQT Diversity and
No-Harassment Guidelines, EQT Responsible
Investment & Ownership Policy
— Processes for engaging with own workers and
workers in the value chain
— Policies and guidelines, e.g., Code
of Ethics, Business Partner Code of Conduct,
Anti-Money Laundering and Counter Terrorist
Financing Guidelines and Local Policies
C
Identifying and assessing
adverse impacts
— The double materiality assessment process — Material impacts, risks and opportunities and their
interaction with strategy and business model, e.g.,
Business travel, Due diligence and monitoring of
EQT funds’ investments
— Material impacts, risks and opportunities and their
interaction with strategy and business model, e.g.,
Well-being and work-life balance, Due diligence
and monitoring of EQT funds’ investments
— Actions, e.g., Whistleblowing channel, Supplier
screening, Incident reporting, Due diligence and
monitoring for new investments
D
Taking actions to address
those adverse impacts
— Policies and guidelines, e.g., EQT Responsible
Investment & Ownership Policy
— Actions, e.g., Energy Attribute Certificates
procurement, upskilling webinars for portfolio
companies
Own workforce
— Policies and guidelines, e.g., EQT Diversity and
No-Harassment Guidelines and Human rights,
including Labour Rights
— Processes for engaging with own workers, e.g.,
Employee engagement surveys
— Actions, e.g., Wellness allowance, Parental leave
and Working parents coaching
Workers in the value chain
— Policies and guidelines, e.g., EQT Responsible
Investment & Ownership Policy
— Processes for engaging with workers in the value
chain, e.g., Engagement as part of investment
advisory services
— Actions for workers in the value chain , e.g., EQT
Network forums
— Policies and guidelines, e.g., Code of Ethics,
Business Partner Code of Conduct, Anti-Money
Laundering and Counter Terrorist Financing
Guidelines and Local Policies
— Actions, e.g., Anti-Corruption Compliance Program,
Supplier screening, Whistleblowing channel,
Training and awareness
E
Tracking the effectiveness
of these efforts and
communicating
— Targets, Tracking of Science-Based Targets
— Performance
Own workforce
— Ambitions
— Performance
— Target
— Metric
117
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
General disclosures
Due diligence structure according to European Sustainability Reporting Standards
===== SIDA 118 =====
118
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
General disclosures
Strategy, business model and value chain
EQT is a global leader in active ownership strategies
and aims to continue delivering strong risk-adjusted
returns to EQT’s clients. The EQT AB Group comprises
EQT AB (publ) and its direct and indirect subsidiaries,
which include general partners and fund managers of
EQT funds as well as entities providing investment
advisory services related to the EQT funds. EQT AB
Group’s main activities include managing EQT funds,
providing investment advisory services related to the
funds, and raising capital from clients.
BUSINESS MODEL
EQT AB Group’s business activities are primarily to
manage EQT funds and provide investment advisory
services related to EQT funds. EQT’s operations are
divided into two business segments: Private Capital and
Real Assets. The operations of both business segments
consist of providing investment management services in
the private investment markets.
The EQT funds are raised with capital allocated
from EQT funds’ investors, such as pension funds,
sovereign wealth funds, and family offices. The EQT
funds invest the capital with an active ownership
approach to future-proof and drive performance in
companies and assets. As the EQT funds realize their
investments, capital is returned to the investors and the
fund is typically terminated within ten years. EQT AB
Group’s revenue is generated from fund management
services, carried interest and investment income. For
more information, please see the Financial Statements.
EQT’s significant markets include Europe, North
America, and Asia-Pacific. EQT believes that local
knowledge, local business relationships, local presence
and access to local deal flow are critical for perfor -
mance. For more information regarding EQT employees
by number and geographical areas, please see the
section Own workforce.
VALUE CHAIN
EQT AB Group’s core business is to manage and provide
investment advisory services to the EQT funds. EQT AB
Group is considered to be an agent in relation to the
EQT fund investors, for accounting purposes and,
accordingly the EQT funds are not consolidated with
EQT AB Group. As such, in the absence of financial
control, EQT AB does not consider the EQT funds and
their portfolios as forming part of EQT AB Group’s own
operations for the purposes of the double materiality
assessment. However, the various EQT funds and the
underlying investments are hence considered to be a
part of EQT’s value chain. As such, the double material -
ity assessment and sustainability reporting distinguish
between EQT AB Group and EQT funds with its underly -
ing investments, where the latter constitute the most
significant part of EQT’s value chain.
EQT AB Group
For the purpose of defining the value chain, EQT AB
Group refer to EQT AB Group’s operations. It does not
include the value chain related to EQT funds.
Strategy
EQT funds
EQT funds refer to the various EQT funds managed by
EQT that invest in companies and/or real assets across
the globe. The funds have €269bn in total assets under
management. The underlying investments in EQT funds
consist of ~330 portfolio companies, together employ -
ing approximately 650,000 people, and 2,000+ real
estate buildings. Thus, the integration of sustainability
considerations in the investment and ownership
processes for the EQT funds as part of EQT’s value
chain have a broader potential impact on climate and
social outcomes than focusing solely on EQT AB Group’s
own operations.
The EQT funds are typically invested and realized
within ten years, meaning that the underlying invest-
ments in the EQT funds are not static. The EQT funds are
divided into four business lines, that follow different
thematic investment approaches and strategies:
— EQT Private Capital Europe & North America invests
mainly in healthcare and technology, but also in
services and industrial technology.
— EQT Private Capital Asia is mainly active in services
and tech services, but also in healthcare, technology
and industrial technology.
— EQT Infrastructure is active within value-add and
core infrastructure globally. Sectors include digital
infrastructure, energy & environmental, transport
& logistics, and social infrastructure.
— EQT Real Estate acquires, develops, and manages
properties primarily for industrial/logistics and
residential real estate.
SUSTAINABILITY STRATEGY
EQT’s sustainability approach reflects its commitment
to future-proofing both the EQT AB Group and the
investments made by EQT funds. As part of EQT’s
responsible investment and ownership approach, to
appropriately identify and manage risk, EQT funds
incorporate relevant sustainability considerations into
the investment and value creation process. This extends
from thematic sourcing and sustainability due diligence
to accelerating value creation with the goal of
future-proofing investments across EQT funds’ portfo -
lios. By doing so, EQT can assess risks and address
some of the world’s most pressing challenges, thereby
strengthening its ability to deliver superior risk-adjusted
returns to its clients.
EQT AB Group’s sustainability strategy is built on
two key foundations: the results of its double materiality
assessment, which aligns with EQT’s overarching
business strategy, and a set of internal long-term
aspirations for driving sustainable transformation,
endorsed by the EQT partner group in 2022. For more
information please see the section Interest and views of
stakeholders.
The current strategy was approved by the Executive
Committee and the Board in 2023. It applies across the
EQT AB Group and extends to both the EQT funds’
portfolio companies and real estate investments,
ensuring a unified approach to sustainability across all
asset classes, with some minor deviations to accommo -
date specifics for certain investment strategies.
===== SIDA 119 =====
119
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
General disclosures
The sustainability strategy is centered around three pillars:
Invest Enhancing how the EQT funds invest by integrating sustainability into the underwriting process, ensuring that sustainability risks and
opportunities are identified and embedded.
Transform Driving sustainable transformation both within EQT AB Group’s own operations and during the ownership period of the EQT funds’ investments by
improving the operational sustainability and aiming to grow sustainability-themed products and services.
Lead Engaging with selected organizations and industry conversations to share and receive learnings and tools, while making independent
decisions regarding how to implement this to drive long-term value for EQT.
Under the Transform pillar, EQT seeks to enhance value
creation by improving the operational sustainability in the
EQT funds’ investments and aiming to grow revenues from
sustainability-themed products and services aligned with
its thematic investment approach. See below.
Accountable leadership
Integrate sustainability into
decision-making, linking
incentives and ensuring
transparency
Business specific transformational KPIs
Sustainability champion in the Board
Signatory to the UN Global Compact principles
Sustainability incentives to Board or management
Equitable business practices
Ensuring equal rights and
opportunities across all
aspects of the business
Diversity in the Boards and C-suite
Gender balance in the top 20% earners
Employee engagement
Regenerative processes
Respecting and restoring
nature and promoting
climate resilience
Climate transition
Renewable electricity consumption
Transform
— Operational sustainability: To build resilience and create
value during ownership, EQT supports portfolio
companies to improve and integrate appropriate and
carefully-calibrated practices to promote long-term
business growth and sustainability in their operations
through a set of ambitions where performance is
measured through a set of KPIs. A subset of these is
connected to time-bound targets. To template the
ambitions and lead by example, the operational
sustainability ambitions are also applicable for EQT AB
Group.
— Sustainability-themed products and services in the portfolio companies : With an overall aim
to make the EQT funds’ investments more resilient and valuable, EQT is working to define and
measure sustainability-themed revenue streams. For more information please see the
section Sustainability-themed products and services in the portfolio companies.
Improving operational sustainability1)
Growing sustainability-themed revenue streams
1) Performance against these ambitions is currently monitored for EQT funds’
portfolio companies within EQT VII-X, EQT Mid Market Europe, EQT Future, EQT
Infrastructure II-VI, BPEA Fund VI-VIII, BPEA Mid Market Growth, EQT Mid
Market Asia III. For EQT funds’ real estate assets, only ambitions under
regenerative processes are applicable.
===== SIDA 120 =====
Key stakeholders Engagement and purpose Result from engagement
Clients to EQT
funds, current and
potential
— Engaging with clients to the EQT funds to understand their demands and appetites for
sustainability integration in the investment lifecycle - as part of direct dialogues or
through external surveys.
— Knowledge-sharing and collaboration with clients through the EQT thinQ Client
Academy.
— Staying abreast of clients’ views and interests, as this influences the formation of
new strategies of EQT funds, including for sustainability.
Employees — Dedicated workshops with Partners, specific meetings in all business lines and across
internal functions as part of the global stakeholder engagement process in 2022-2023.
— Meetings with the Bridge Forum as well as next-generation leaders to capture business
needs and ambitions around sustainability.
— Employee engagement survey to inform and address material impacts, risks and
opportunities and prioritize future engagements.
— Firm-wide aspirations for 2030, signed by all Partners, which has laid the basis
for EQT’s sustainability strategy.
— Employee engagement score and key actions for further development.
EQT funds’
portfolio
companies and
assets’ tenants
— Direct engagement and dialogues with representatives from EQT funds’ portfolio
companies as part of network gatherings, interviews or project work to understand
opportunities and challenges with a purpose to drive long-term value creation.
— Green lease language incorporated into standard lease forms for US logistics real
estate to facilitate landlord-tenant cooperation on sustainability with the aim of
increasing efficiency and decreasing costs.
— Monitoring activities such as from the sustainability data collection from EQT funds’
portfolio companies and assets to understand trends, opportunities and challenges.
— Knowledge-sharing and provision of training, tools and playbooks.
— Increased awareness and visibility of potential material impacts on portfolio
companies’ workers.
EQT Network — Engagement with Advisors from the EQT Network, who sit on the boards of the EQT
funds’ portfolio companies or act as advisors in the investment process.
— EQT Network Forums, trainings or roundtables with aim to share experience and
address key thematic topics.
— Knowledge-building with Advisors and portfolio company representatives in
relevant sustainability topics and other future-proofing themes.
Shareholders,
current and
potential, and the
public markets
— Dialogues or responses to shareholders’ information requests, views and needs.
— Responding to various sustainability rating requests, which often is one source for
shareholders and public market’s analyst assessments.
— Continuous developments of EQT’s public reporting to ensure EQT AB is a relevant
investment for shareholders’ portfolio, also in terms of sustainability aspects.
— Enhanced transparency has led to increased results from sustainability rating
agencies.
120
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
General disclosures
insights from employees through an annual employee
engagement survey. The survey results are presented to
the Executive Committee to ensure that workforce
perspectives are integrated into decision-making
processes. Engagement with other key stakeholder
groups includes for example interactions with clients
during due diligence and relationship-building activi -
ties, meetings with shareholders, and collaboration with
portfolio companies and tenants as part of EQT’s
investment advisory.
The ongoing engagement with stakeholders ensures
that EQT stays relevant and on top of market develop -
ments. Stakeholders’ views and interests are shared in
various settings, such as in the Sustainability Committee
of the Board. The outcomes from the ongoing engage -
ments are also assessed in relation to EQT’s strategy
and the annual review or reconfirmation of the double
materiality assessment.
Interests and views of stakeholders
EQT’s stakeholders consist of individuals or groups
affected by EQT AB Group’s operations or, on the other
hand, that have an interest in, or influence impact on
EQT.
Key stakeholder groups are:
— Clients to EQT funds, current and potential
— Employees
— EQT funds’ portfolio companies and assets’ tenants
— EQT Network
— Shareholders, current and potential, and the public
markets
In 2022, EQT conducted a global and thorough stake -
holder engagement process that resulted in a set of
internal, long-term aspirations and commitments to
drive sustainable transformation towards 2030,
adopted by the Executive Committee and all Partners.
The discussions towards these aspirations centered
around three main areas: EQT as an investor, EQT as an
owner, and EQT as part of the financial system. The
results from this exercise hence served as an important
input to the double materiality assessment, and has laid
the foundation for the current sustainability strategy
described in the Sustainability strategy section. In this
year-long process, workshops and meetings involved
many different functions in the company; senior
leadership and next-generation leaders as well as
sparring from external experts, clients, non-profit firms
and selected portfolio companies representatives, to
broaden perspectives on EQT’s role in society.
While the above was a one-off event, on a more
frequent basis, stakeholder views and interests around
sustainability matters are gathered as part of ongoing
dialogues and activities. For example, EQT collects
Other stakeholder groups that EQT frequently engage with include: debt providers, suppliers, think tanks, industry associations, regulatory bodies, academia, research analysts and sustainability rating agencies.
===== SIDA 121 =====
Climate change p. 125
— Climate change mitigation
— Climate change adaptation
— Energy
Own workforce p. 138
— Equal treatment and opportunities for all
— Employee development, health and wellbeing
Workers in the value chain p. 147
— Equal treatment and opportunities for all
— Working conditions and employee engagement in the value
chain
Business conduct p. 152
— Business ethics
EQT specific p. 158
— Responsible investment approach for EQT funds
— Sustainability-themed products and services in the portfolio
companies
For more information regarding the material topics and
justifications, please see the next page.
121
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
General disclosures
RESILIENCE AND CAPACITY TO TAKE ADVANTAGE
OF OPPORTUNITIES
EQT’s sustainability governance set-up and functional
expertise strengthen its resilience to material sustain -
ability impacts, ensuring a proactive approach to risk
management and opportunity identification, while
leveraging key enablers such as team training, data
access for trend analysis, and sustainability-linked
incentives. This ensures that EQT can continuously
adapt to evolving challenges and capture emerging
opportunities in line with its business model.
FINANCIAL EFFECT AND TIME FRAME
The potential financial effects from the material risks
and opportunities have been estimated to the extent
possible, acknowledging the challenges in quantifica -
tion. The financial effects such as EQT’s ability to
generate management fees, carried interest, and
investment income have been assessed by considering
reputational, compliance, operational and commercial
aspects in the short, medium and long-term. There is no
current, measurable financial effect from the assessed
material risks and opportunities anticipated to pose a
material adjustment within the next annual reporting
period.
It is expected that topics concerning the own work-
force, workers in the value chain, and business conduct
are more likely to affect EQT and EQT funds in the
short- to medium-term, while topics related to climate
change are anticipated to have a greater impact over
the medium- to long-term.
CHANGES TO THE MATERIAL IMPACTS, RISKS
AND OPPORTUNITIES COMPARED TO PREVIOUS
REPORTING PERIOD
The material impacts, risks and opportunities in this
year’s Annual and Sustainability Report have been
updated following a comprehensive double materiality
assessment conducted in late 2023 with a review in
2024. Compared to EQT’s Annual and Sustainability
Report 2023, there have been some reframing of topics.
Impact materiality
Materiality threshold
Impact materiality
Financial materiality
Business ethics
Climate change
mitigation
Energy
Equal treatment and
opportunities for all
Employee
development, health
and wellbeing
Sustainability-themed
products and services in
the portfolio companies
Responsible investment
approach for EQT funds
Climate change adaptation
Working conditions and
employee engagement
in the value chain
Material impacts, risks and opportunities
and their interaction with strategy and
business model
EQT AB Group has identified its material sustainability
matters using a double materiality approach, which
considers both impact materiality and financial
materiality.
LIST OF MATERIAL SUSTAINABILITY MATTERS
EQT AB‘s material impacts, risks and opportunities arise
within the following material sustainability matters in
the table below:
Materiality matrix 1)
1) The materiality matrix is a simplified illustration of EQT’s material sustainability
matters
===== SIDA 122 =====
122
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
General disclosures
Material topics - Link to
sub-topics/sub-sub topics Value chain Impacts, Risks, Opportunities
Climate change
Mitigation EQT AB Group Impact
— Negative impact from carbon emissions related to business travel and office
energy consumption
EQT funds Impact
— Negative impact from carbon emissions
— Positive impact by supporting the transition to a low-carbon economy
Risk and opportunity
— Financial risks from external factors such as risks of extreme weather and changes in
political, regulatory and technological landscape, driven by insufficient mitigation
efforts
— Financial benefit from investing in the transition to a low-carbon economy,
contributing to sustainable growth and enhancing value creation
Adaptation EQT funds Impact
— Positive impact by supporting climate change adaptation initiatives
Risk and opportunity
— Financial risks from failing to adapt to extreme weather events, and changes in political,
regulatory and technological landscape, potentially impacting performance and value
creation
— Financial benefit from timely adaptation, enhancing resilience to extreme weather,
regulatory changes, and technological advancements, leading to increased value
creation
Energy EQT funds Impact
— Negative impact from energy consumption
— Positive impact from supporting the renewable energy transition
Opportunity
— Financial benefit from investing in the energy transition, contributing to sustainable
growth and enhancing value creation
Own workforce
Equal treatment and
opportunities for all
— Gender equality and equal
pay for work of equal value
— Measures against violence
and harassment in the
workplace
— Diversity
EQT AB Group Impact
— Negative impact as diversity generally is lagging in the financial industry
— Positive impact by promoting inclusion and foster a culture that benefits from diverse
backgrounds and experiences, with zero tolerance to harassment
Risk and opportunity
— Financial risk from inadequate programs supporting inclusion, leading to challenges
in attracting and retaining talent
— Financial benefit from strengthened inclusion efforts leading to high performing
teams, innovation and better decision-making
Employee development,
health and well-being
— Training and skills
development
— Well-being and work-life
balance
— Employee engagement
EQT AB Group Impact
— Negative impact from e.g. work-life balance and stress as general challenges in the
financial industry
— Positive impact from improved physical and mental well-being through employee de -
velopment and engagement
Risk and opportunity
— Financial risk from inadequate work-life balance and stress, impacting the ability to
attract and retain talent
— Financial benefit from maximizing employee potential through development and
engagement
Material topics - Link to
sub-topics/sub-sub topics Value chain Impacts, Risks, Opportunities
Workers in the value chain
Equal treatment and
opportunities for all
— Gender equality and equal
pay for work of equal value
— Measures against violence
and harassment in the
workplace
— Diversity
EQT funds Impact
— Negative impact if not living up to commitments related to e.g. diversity
— Positive impact to society by encouraging more equitable business practices
Opportunity
— Financial benefit from strengthened inclusion efforts leading to high performing
teams, innovation and better decision-making
Working conditions and
employee engagement
— Working conditions
— Employee engagement
EQT funds Impact
— Negative impact as some regions and sectors are exposed to substandard working
conditions
— Positive impact to society by supporting sound working conditions and employee
engagement
Business conduct
Business ethics
— Corporate culture
— Corruption and bribery
— Protection of whistle-
blowers
— Anti-money laundering
EQT AB Group Impact
— Positive impact and influence within society guided by EQT’s purpose, values and
extensive programs designed to maintain integrity and ethical conduct
Risks
— Financial risk as a result of reputational and regulatory considerations associated
with unethical behavior
EQT funds Impact
— Negative impacts if poorly implemented governance mechanisms
— Positive impact and influence within society guided by EQT’s purpose and values
EQT specific
Responsible investment
approach for EQT funds
EQT AB Group Opportunity
— Financial benefit from enhanced responsible investment approach of the EQT funds,
meeting demand from clients
Sustainability-themed
products and services in the
portfolio companies
EQT funds Impact
— Positive impact to society by growing sustainability-themed products and services
Opportunity
— Financial benefit from growth of sustainability-themed products and services
For more information please see topic-specific sections.
===== SIDA 123 =====
123
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
General disclosures
The double materiality assessment process
EQT conducted its first double materiality assessment in
2023, which is subject to a thorough review in conjunc -
tion with the strategy update, currently planned for
every third year. A review based on recent data and
other developments is done annually, followed by an
approval by the EQT AB Board.
EQT plans to continuously refine the methodology
and expects to revisit it when market practice has
developed further.
METHODOLOGY
Identifying sustainability matters
The double materiality assessment covers areas in the
value chain of EQT where impacts, risks and/or oppor -
tunities are deemed most likely to arise.
As elaborated on in the value chain section, the
assessment distinguishes between EQT AB Group’s own
operations and the EQT funds. For EQT AB Group this
covered the impacts, risks and opportunities related to
own operations including employees and the direct
relationships to business partners (suppliers) and clients
to the EQT funds.
For the EQT funds, the assessment was initially
conducted on a business line level to identify material
actual and potential impacts, risks and opportunities
related to sustainability matters. This assessment did
not consolidate material topics for each investment in
the EQT funds, but was rather performed on an
aggregated level to identify ‘hot spots’ and key depen -
dencies, considering the business model, the nature of
each business line and the evolving portfolio composi -
tion. This analysis to identify specific activities, business
relationships, geographies or other factors that give
rise to heightened exposure of impacts and opportuni -
ties was supported by qualitative and quantitative data,
including:
— Internal strategy documents including the long-term
aspirations and commitments to drive sustainable
transformation towards 2030.
— Outputs from stakeholder engagements.
— Investment due diligence material and information
collected directly from portfolio companies as part
of annual assessment of their sustainability perfor-
mance (subject to data availability).
— Sectoral and geographical exposures of the
investments in EQT funds.
The result from the initial analysis was a list of sustain -
ability topics, as described in the ESRS, and additional
entity-specific topics identified in EQT’s ongoing
stakeholder engagement, strategic work as well as
known exposures.
MATERIALITY APPROACH
Impact materiality
Impact materiality is the positive and negative sustain -
ability-related impacts EQT has on people and environ -
ment in terms of its operations and value chain.
The first step of the impact materiality assessment
was an analysis where the severity of an actual or
potential, positive or negative impact was assessed
and scored based on scale, scope, remediability and
likelihood. Certain criteria was adapted or estimated
to ensure an adequate overview of the results for
further qualitative assessments, see below:
— Scale: The seriousness of a positive or negative
impact based on strategic priorities and/or the
deemed seriousness of negative impacts on people
and/or environment.
— Scope: The widespreadness of an impact such as
geographical extent of environmental damage or
the number of people adversely affected, for
EQT AB Group or EQT funds, looking at portfolio
concentrations.
— Remediability: Assessing potential, timeline and
easiness for remediating a negative impact.
— Likelihood: Likelihood of occurrence based on
general exposures (sector and geography). Applied
on a case-by-case basis as part of the qualitative
assessment when determining materiality.
The output from the initial impact assessment was then
subject to further assessment and calibration. While the
initial assessment of EQT funds was conducted on an
aggregated level, subsequent evaluations and calibra -
tions aimed to further identify the impacts of individual
funds or underlying investments that noticeably differ
(in terms of severity) from the overall assessment.
This approach ensures that specific or isolated topics
are also evaluated and addressed when relevant.
Financial materiality
Financial materiality refers to sustainability-related
risks and opportunities.
The financial materiality assessment, was based on
the EQT Group risk framework, and used a likelihood–
impact matrix to assess and prioritize risks and oppor -
tunities.
— Likelihood assesses the probability of a risk or
opportunity, considering factors such as business
model, geography, industry, sustainability ambitions,
historical incidents and the applicability of the topic
in EQT’s value chain.
— Financial impact is derived from the type of effect
(e.g. reputational, regulatory, performance), EQT AB
Group’s total exposure and investment platforms as
well as the magnitude of the underlying risk or
opportunity.
To ensure completeness of the financial materiality
assessment, the analysis considered both direct effects,
such as immediate financial or operational impacts,
and indirect effects, like reputational damage, market
shifts, regulatory changes, or loss of key personnel
which can affect EQT’s long-term performance and
strategy.
THRESHOLD
To finally determine the material impacts, risks and
opportunities, the results from the initial assessments
for impact and financial materiality were consolidated
based on a set threshold and further calibrated in
forums with key internal stakeholders. Given that the
double materiality assessment differentiated between
EQT AB Groups’ operations and value chain through the
EQT funds, there was a higher threshold when assess -
ing materiality for EQT funds to preserve an appropri -
ate degree of proportionality. However the assessment
also recognizes the possibility of an impact further
down in the value chain being severe enough to
become material.
Disclosures on the materiality
assessment process
===== SIDA 124 =====
124
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
General disclosures
DECISION-MAKING, INTERNAL CONTROLS
AND RISK MANAGEMENT
The double materiality assessment process was led by
a cross-functional team with representatives from
functions such as Sustainability, Risk, Regulatory,
Compliance and Finance with support from a third-
party specialist. The Sustainability Management Team
and sustainability professionals with insights into
stakeholders’ views and interests acted as stakeholder
representatives in the process. Their role was key in the
identification and scoring of impacts, risks and oppor -
tunities for these topics as well as calibrating the
outputs and setting an applicable threshold.
The initial assessments were presented and dis -
cussed with the Sustainability Management Team and
selected key representatives from each business line.
The final calibration was conducted with support of
representatives from the EQT Executive Committee. The
final result was presented to the Sustainability Commit -
tee and Audit Committee and approved by the Board in
December 2023. The double materiality assessment is
subject to an annual review and is ultimately approved
by the Board.
Sustainability risk has been integrated into EQT AB
Group risk framework in which a structured approach
for managing sustainability risks across the organiza -
tion has been adopted, ensuring alignment with
business objectives and regulatory requirements. The
risk framework includes comprehensive risk assess -
ments, clear risk ownership as well as robust controls. In
assessing sustainability risks, the Risk function
or Risk, Regulatory & Compliance team considers:
— The financial risks associated with the failure to meet
environmental, social or governance targets in the
EQT funds’ portfolios or adapt the portfolio to
changes in the political, economic, social, technologi -
cal and legal environment on sustainability matters.
— The possibility of EQT, portfolio companies or other
key partners and stakeholders of EQT engaging in
behaviours having a negative impact on the
environment or society, and indirectly on EQT’s
reputation as a result.
— The regulatory risk associated with the growing
requirements on EQT to meet various laws, regula -
tions and standards related to sustainability matters.
— Assessments of negative impacts by portfolio compa -
nies through ongoing reputational risk incident
management and monitoring of Principal Adverse
Impacts (PAI) indicators of portfolio companies,
where such data is available and material.
The data used in the double materiality assessment,
such as exposure data, portfolio company information,
and data concerning EQT AB Group, including FTEs and
office locations, is subject to different controls and
validations.
===== SIDA 125 =====
#00#3.2
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
Climate change
126 Climate change
126 — EQT AB Group: Climate change mitigation
126 — Value chain: Climate change mitigation, adaptation and energy in
EQT funds
127 Strategy — Transition plan for climate change mitigation
127 — Greenhouse gas emission reduction targets and main
decarbonization levers
127 Strategy and business model resilience to climate change
128 — Climate transition risks
128 — Physical climate risk
128 — Resilience to climate change risks
129 Policies and guidelines
129 — Code of Ethics
129 — EQT Responsible Investment & Ownership Policy (RI&O)
129 — Guidelines to EQT Sustainable Workplace
129 — EQT Expense and Travel Guidelines
130 Actions
130 — EQT AB Group
130 — EQT funds
130 — Sustainable economic activities
131 Ambitions, targets and performance
132 — EQT AB Group
132 — EQT funds
132 — Rebaselining
132 Greenhouse gas removals and mitigation projects
132 Internal carbon pricing
135 EU Taxonomy Statement
135 — Turnover
136 — Capex
137 — Opex
137 — EQT exposure to nuclear and fossil gas related activities
===== SIDA 126 =====
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
126
Climate change
Climate change
Climate resilience and decarbonization are
important components in EQT’s drive to
achieve long-term financial performance.
EQT AB GROUP: CLIMATE CHANGE MITIGATION
EQT AB Group’s climate impact from its own operations
primarily relates to emissions from business travel and
energy consumption in offices. In a value chain context,
the underlying investments in EQT funds have a signifi -
cantly larger impact in absolute terms than EQT AB
Group, however, EQT recognizes the value of leading by
example and considers that this represents a long-term
financial opportunity for the EQT AB Group.
VALUE CHAIN: CLIMATE CHANGE MITIGATION,
ADAPTATION AND ENERGY IN EQT FUNDS
EQT is contributing to climate change mitigation,
adaptation and the renewable energy transition in the
EQT funds, both as it captures investment opportunities
associated with these areas, and through an ongoing
focus to increase resilience and be better positioned to
capitalize on the opportunities of the global transition to
a low-carbon economy.
Material topics related to Climate change
Material topics Value chain
Climate
change
Mitigation EQT AB Group
EQT funds
Adaptation EQT funds
Energy EQT funds
This section covers climate topics and presents
EQT’s strategy to climate resilience and actions
taken to drive progress.
===== SIDA 127 =====
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
127
Climate change
Strategy — Transition plan
for climate change mitigation
As part of its overall investment and operational
strategy, EQT AB Group has adopted a transition plan
for climate change mitigation, with the long-term ambi -
tion to build climate resilience and reach net zero
greenhouse gas emissions. The transition plan covers
both EQT AB Group’s operations and investments by
EQT funds.
The transition plan is embedded within EQT’s overall
business and financial strategy through its active
ownership principles, to create value and generate
attractive risk-adjusted returns to EQT clients. To ensure
accountability and performance the transition plan is
integrated into incentive schemes for employees and in
EQT AB Group’s debt financing, as well as various debt
financing instruments for EQT funds.
The main elements of the transition plan are set out
in EQT’s Net Zero Guidelines, which specifies the targets
for EQT AB Group’s Scope 1, 2 and 3 emissions. The Net
Zero Guidelines are approved by EQT AB Group’s
Executive Committee.
The Science Based Targets initiative (SBTi) has
approved EQT AB Group’s near-term science-based
emissions reduction target (SBT). SBTi is a corporate
climate action organization that develops standards
that allow companies to set greenhouse gas emissions
reductions targets in line with climate science 1). Since
2021, EQT has had validated near-term (2030) SBTs and
views them as a central part of its climate and active
ownership strategy.
GREENHOUSE GAS EMISSION REDUCTION
TARGETS AND MAIN DECARBONIZATION LEVERS
EQT AB Groups’ greenhouse emissions targets cover
Office energy consumption (Scope 1 and 2), Business
travel emissions (Scope 3) and the investments in the
EQT funds’. For more details and information regarding
the targets progress towards them, please see the
section Ambitions, targets and performance. To deliver
on these targets EQT AB Group has identified the
following near-term decarbonization levers:
EQT AB Group : Office energy and Business travel:
— Improve energy efficiency in leased offices.
— Ensure new leases are taking energy consumption
and renewables procurement into account.
— Encourage reduced business travel for the EQT staff
and choose less polluting means of travel such as
train, economy class for shorter flights and promote
virtual options when suitable.
EQT funds:
— Engagement with current and future eligible EQT
funds’ portfolio companies to identify levers to
improve climate resilience, and support the develop -
ment and validation of science-based targets within
two full calendar years of acquisition.
— Provide direct support and indirect support through
third parties, to enable data collection, target and
roadmap creation, and value creation levers to
improve financial performance and resilience
— Promoting renewable electricity consumption and
arranging for an annual procurement process for
procuring Energy Attribute Certificates (EACs).
— Continue supporting the collection of whole building
energy consumption data to calculate the carbon
footprint of standing real estate assets, identify
1) See SBTi’s website: https://sciencebasedtargets.org for more information
suitable GHG reduction opportunities for each asset
and sequence capital expenditure works into asset
business plans.
— Supporting EQT funds’ real estate assets in increas -
ing:
— Building energy efficiency (e.g. Light Emitting
Diode (LED) lighting and Heating, Ventilation, and
Air Conditioning (HVAC) equipment).
— The share of renewable energy consumption
generated (e.g. solar Photovoltaics (PV)).
Examples of how portfolio companies can become
more climate resilient and achieve greenhouse gas
emissions reductions in practice include transitioning to
renewable energy consumption, improving operational
efficiency, developing low-carbon products and
services, and implementing robust climate governance
in the companies’ management teams and boards.
Furthermore, EQT continuously investigates opportuni -
ties to establish new funds and investment strategies
with an even deeper focus on sustainability matters,
such as the EQT Future Fund and the Healthcare
Growth strategy.
Locked-in greenhouse gas emissions
EQT AB Group does not have any greenhouse gas-in -
tensive assets, such as coal or oil, on its balance sheet,
meaning significant locked-in emissions are negligible.
For selected parts of EQT funds’ investments that have
greenhouse gas and energy-intensive assets and
products, EQT AB Group supports the funds’ invest -
ments to define and deliver on their own emissions
reduction targets.
Climate related impacts, risks and opportunities were
considered as part of the double materiality assess -
ment process as described in the General disclosures.
The resilience analysis, which is summarized below, has
been and continues to serve as an input to the assess -
ment process.
EQT has conducted various climate risk assessments
to evaluate EQT AB Group’s exposures and resilience to
climate change, directly and in the value chain through
EQT funds. Insights from the assessments, conducted
either as a one-off in the due diligence phase or on a
recurring basis, allow EQT to identify and understand
potential vulnerabilities under different climate scenar -
ios and time horizons and address potential risks and
mitigation activities. By proactively analyzing potential
risks and identifying mitigation activities, EQT aims to
ensure that its strategy and business model remain
robust and aligned with its commitment to
future-proofing and long-term growth. The climate
risks analysis and scenario analyses were not con -
ducted to explicitly take account of any climate-related
assumptions made in the financial statements.
There are uncertainties regarding the probability of
climate scenarios, for both physical and transition risks.
This is attributed to variability in natural climate
systems and for transition, certain socio-economic
factors such as population growth, technological
advancements, and policy decisions are difficult to
forecast accurately, contributing to uncertainty in
Strategy and business
model resilience to climate
change
===== SIDA 128 =====
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
128
Climate change
projections. On a larger scale, the interconnectivity of
climate systems and risks may also contribute to
unpredictable outcomes. These uncertainties elicit the
use of a range of scenarios to capture a range of
possible futures and inform robust strategy decisions.
CLIMATE TRANSITION RISKS
The identified climate transition risks are the financial
and operational impacts EQT AB Group may face due
to changes in regulations, market dynamics, and client
preferences. For example, breaches of emerging
climate regulations can lead to penalties and other
legal sanctions. EQT AB Group may also suffer reputa-
tional damages if it fails to live up to these laws, its
climate policies and guidelines, or client and public
expectations. Additionally, a potential inability of EQT
AB Group to identify climate-related investment
opportunities in the EQT funds that align with client
preferences could adversely affect its competitive
position over time.
EQT funds
In the EQT funds, transition risks have been evaluated
for the majority of the investments using the Shared
Socioeconomic Pathway (SSPs)1) scenarios for the short
(2028 – 2030) through long-term (2035 – 2050).
Scenario analysis provides a lens to assess transition
risks and opportunities under a range of potential
future outcomes, enabling EQT to set a business
strategy considering these outcomes. Considering the
scenarios, each analysis contemplated risks that may
be associated with a net zero transition such as carbon
pricing, the regulatory environment, consumer demand
shifts, and the value chain.
As the business lines and their respective funds and
portfolios are diverse, there are individualized risks and
opportunities throughout and transition risk is deemed
low to medium throughout the EQT funds’ portfolio.
Under disorderly scenarios, where the assumption is
that policy changes may be more impactful over time,
risks in the portfolio are likely to have a higher presence
in 2035 and beyond. Key geographies at risk include
Europe and Asia Pacific where there are expanding
disclosure mandates and regulations around products
and industries, which are considered under the policy
and legal risk category.
Investments in the Manufacturing and Industrial
sectors should be monitored for increasing risk in the
areas of energy usage, technology, and regulation.
Technology and Services companies may however also
present an opportunity for growth as consumers seek
clean technology offerings and providers.
PHYSICAL CLIMATE RISKS
EQT’s physical climate risks are the financial and
operational impacts EQT AB Group may face due to
environmental changes, such as extreme weather
events and long-term shifts in climate patterns. EQT AB
Group’s direct exposure to physical climate-related
risks is considered low as it is not heavily reliant on
physical assets and operations to conduct its activities.
To prevent potential climate-related disruptions, EQT
AB Group has robust business continuity plans and
remote working arrangements.
EQT funds
In the EQT funds, physical risks have been evaluated for
the majority of the investments using the SSPs for the
decades spanning 2030 to 2100. Third-party vendors
have provided climate risk modeling using location data
and proprietary tools that draw upon climate model
projections under the SSPs.
Physical risk is relatively low throughout the EQT
funds portfolio. However, with portfolio companies and
assets having locations across the globe, there is varied
risk exposure. A wide array of properties exist in the
EQT funds portfolio with varying risk exposure.
Under SSP2-4.5, representing moderate temperature
increases with an increased frequency of extreme
weather events from baseline scenarios, EQT funds´
portfolio physical risk exposure is generally low to
medium from the present day to 2050 though this is
dependent upon sector and geography.
Key geographies at risk include the Southeast
United States, the Mediterranean, and Southeast Asia.
Fire and Extreme Heat are a recurring risk for proper -
ties across the four investment platforms in these
geographies.
RESILIENCE TO CLIMATE CHANGE RISKS
EQT’s thematic investment approach enables a continu -
ous evolution and adaptability to climate risks. EQT AB
Group aims to ensure that the business model remains
resilient and well-prepared to navigate changing
market conditions and a changing risk landscape by
evaluating transition risks in the risk management
process and identifying potential commercial opportu -
nities. As risks are identified and evaluated, EQT is
taking action to address them. For more information
and actions related to the transition plan please see
above section.
The climate change risk analyses that have been
conducted for the EQT funds’ portfolio have provided
important learnings such as understanding sectoral or
regional risk hot-spots and the importance of how to 1) The Shared Socioeconomic Pathways (SSPs) were developed by the
Intergovernmental Panel on Climate Change (IPCC) and are used in climate
scenario analysis to assess how global socioeconomic trends may impact
future climate outcomes. They are used to explore how societal choices will
affect greenhouse gas emissions and, therefore, how the climate goals of the
Paris Agreement could be met.
continuously integrate this type of risk analysis in the
due diligence for new investments. To capture the
changing environment and uncertainty, the EQT funds
uphold continuous risk monitoring.
===== SIDA 129 =====
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
129
Climate change
EQT AB Group has adopted the following policies and
guidelines to address climate change mitigation and
adaptation. The EQT Responsible Investment & Owner -
ship Policy (RI&O) is also applicable to EQT funds and
their respective investment strategies 1). For information
regarding how EQT monitors these governing docu -
ments please see the section Business conduct.
CODE OF ETHICS
The EQT Code of Ethics defines the ethical principles,
values, and standards that EQT employees and tempo -
rary staff are expected to uphold. The Code of Ethics
also addresses EQT's general commitment to climate
change mitigation and includes a commitment to
support the Paris Agreement. For information about
scope and owner of the Code of Ethics please see the
section Business conduct.
EQT RESPONSIBLE INVESTMENT & OWNERSHIP
POLICY (RI&O)
The RI&O Policy outlines EQT’s approach to integrating
sustainability in its investments and ownership strate-
gies1). The policy outlines that EQT aims to support the
EQT funds’ investments in being on track to achieve 1.5°C
aligned decarbonization plans by 2040, in line with EQT’s
Net Zero Guidelines and its approach to climate resil-
ience. The policy relates to decarbonization, energy
efficiency, renewable energy deployment and physical
and transition risks of climate change. For more informa-
tion regarding scope and owner of the EQT RI&O policy,
please see the section Business conduct.
GUIDELINES TO EQT SUSTAINABLE WORKPLACE
EQT AB Group has guidelines for new office leases with
regard to climate mitigation matters for all EQT offices
except for EQT Real Estate US.
A ‘green leasing’ document has been crafted for
legal advisors when negotiating new or evaluating
existing EQT lease agreements. This includes perfor -
mance measures such as:
— 100 percent renewable electricity.
— Minimum of Leadership in Energy and Environmental
Design (LEED) gold certification (or equivalent).
— Quarterly disclosure and reporting requirements
from landlords.
The Head of Corporate Real Estate and Workplace
is responsible for these guidelines.
EQT EXPENSE AND TRAVEL GUIDELINES
Virtual meetings are encouraged but when travel is neces-
sary, EQT AB Group has set four rules in the EQT Expense
and Travel Guidelines to follow. They outline that an EQT
employee2) is encouraged to or should:
— Optimize travel by combining several meetings in one
trip when possible.
— Fly economy class for flights under three hours,
especially for internal travel, as more premium ticket
classes are associated with higher emissions.
— Take the train if that is a viable option.
— When traveling by car or taxi, use electric cars as the
preferred option.
The Head of Group Finance is the owner of these
guidelines.
Policies and guidelines
1) See webpage for more information regarding scope and content:
https://eqtgroup.com/eqt-policies-and-statements/ or https://eqtgroup.com/
sustainability/
2) “EQT Employees” means all permanent employees of EQT and all temporary
staff of EQT who have access to EQT premises and/or systems.
===== SIDA 130 =====
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
130
Climate change
During the reporting period, EQT has taken and will
continue to take, among other things, the following
actions as part of its efforts to increase its climate
resiliency and to follow the climate and active owner -
ship strategy.
EQT AB GROUP
EQT has taken various actions to reduce emissions for
office energy consumption and business travel,
including:
— Introducing guidelines for new office leases that
address climate considerations, including energy
accreditations and sustainable furnishings.
— Procuring Energy Attribute Certificates (EACs) for a
total of 1,204 MWh for electricity use to reduce
emissions associated with office energy consumption.
Total renewable energy consumption during the year
was 3,656 MWh corresponding to 64 percent of total
energy consumption.
— Strengthening the business travel agenda by
improving data quality and transparency, setting new
guidelines and increasing the focus on travel-effi -
ciency through employee engagement on current
habits and suggestions on how to reduce emissions.
EQT FUNDS
EQT has supported both EQT funds’ portfolio compa -
nies and EQT funds’ real estate assets by:
— Started integrating the analysis of the financial
implications of emission reductions into some of EQT
funds’ underwriting and ownership processes. This
involves integrating estimated costs of decarboniza -
tion, revenue upside, and potential risks into business
plans for new investments. As a result, carbon
reduction initiatives are assessed early in the
investment process, thereby facilitating action.
— EQT AB Group has hosted several upskilling webinars
on the climate agenda and reduction efforts with
portfolio companies’ management teams and board
members in its control strategies, in order to improve
carbon literacy and understanding.
— A review of third party carbon data providers has
been done to support portfolio companies with
alternatives depending on their sector, size and need.
— Portfolio companies have participated in EQT AB
Group’s EAC procurement program, where a total of
49 companies participated to procure EACs for a
total of 544,593 MWh.
— In EQT funds’ real estate assets the share of floor
area with LED lighting has increased from 35 percent
in 2023 to 52 percent in 2024.
To assess risks and increase awareness various climate
risk assessments have been conducted ( see section
Strategy and business model resilience to climate
change for details):
— EQT Real Estate: Physical climate risks for all assets
under management were evaluated through a global
platform developed by a third-party provider. This
platform assesses building exposure to various
climate-related hazards across different scenarios
and timelines. The insights from these assessments
are now being integrated into the due diligence and
underwriting processes for new acquisitions.
— EQT Infrastructure: Both physical and transition
climate risks were assessed across the entire
infrastructure portfolio. An investigation is currently
underway to establish a license for a climate risk
software tool to utilize during due diligence on future
deals.
— EQT Private Capital (EU&NA and Asia) : A portfolio -
wide climate risk dashboard has been developed
to provide high-level assessments of transition and
physical climate risks for portfolio companies.
Starting development of methodology for deep dive,
portfolio company level analysis for dissemination
as portfolio company guidance.
SUSTAINABLE ECONOMIC ACTIVITIES
Sustainability is integrated in EQT’s business model
where climate change activities are linked with ongoing
business and processes. A specific Capex or Opex
amount for a sustainable action is therefore mostly
unfeasible to specify. Moreover, some actions are linked
to lowering cost. For example for EQT AB Group,
decreasing unnecessary travel lowers GHG emissions
as well as, reduces travel expenses. For offices, only a
small amount of Capex is defined by the EU Taxonomy
as eligible (in 2024 0 percent aligned), and relates to
leases and refubishments in building, for more informa -
tion please see the EU Taxonomy Statement.
EQT AB Group’s investment advisory teams,
together with the respective portfolio company’s
management team and board, execute on a compre -
hensive value creation plan during the EQT fund’s
ownership. This could include the various actions of
supporting the climate agenda with an aim to reduce
carbon emissions. As this advice and support is embed -
ded in the active ownership approach and the broader
business strategies of the EQT funds’ investments, the
financial resources are an integrated part and there -
fore difficult to quantify.
As climate risks and opportunities are a key priority
for EQT, staffing resources for activities have been
available when needed in various parts of the organi -
zation as part of the integrated approach to sustain -
ability.
Actions
===== SIDA 131 =====
EQT AB Group Base year 2023 2024 Target 2027 Target 2030
Near-term SBT
Target 2040
Long-term
Scope 1+2, office energy consumption
(market based)
— 433tCO2e
— 100% renewable electricity usage
— 100% of new office leases had at l least
LEED-gold (or equivalent) certifications
— 367tCO2e
— 100% renewable electricity usage
— 100% of new office leases had at least
LEED-gold (or equivalent) certifications
— 100% renewable electricity usage
— 100% of new office leases to have at least
LEED-gold (or equivalent) certifications
— -42%tCO2e absolute reduction — -90 %tCO2e absolute reduction
Scope 3, business travel 1) — 13tCO2e per average FTE — 13tCO2e per average FTE — -11%tCO2e per average FTE — -52%tCO2e per average FTE — -90%tCO2e per average FTE
EQT funds Base year 2023 2024 Target 2027 Target 2030
Near-term SBT
Target 2040
Long-term
Investments in portfolio companies
(portfolio coverage)
— 44% of eligible invested capital with
SBTis validated targets (34% when not
considering the 24 months grace period)
— 65% of eligible invested capital with
SBTis validated targets
— 70% of eligible invested capital have
SBTis validated targets
— 100% of eligible invested capital to have
SBTi-validated targets
— 50% of portfolio companies on track with
their SBT plan
— 100% of portfolio companies on track
to achieve their SBT plan
Investments in real estate 2) — 10MW of on-site solar capacity
— 35% of floor area with LED lighting
— 28 kg CO2e/m2
— 10MW of on-site solar capacity
— 52% of floor area with LED lighting
— 150MW of solar generation capacity
installed
— 90% of global logistics buildings to have
LED lighting installed
— 53% reduction of average operational
emissions per square meter floor area
— Net zero emissions for operational
carbon
1) As part of the rebaselining project, the reported greenhouse gas emissions from business travel for 2023 have been restated. For more information, see paragraph Rebaselining.
2) Emissions from real estate investments for 2024 are not included in this report, as data was unavailable at the time of publication due to a one-year reporting lag.
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
131
Climate change
A sub-set of EQT’s long-term sustainability ambitions
has been translated into targets to ensure measurable
progress, primarily via its SBTi-approved near-term
science-based emissions reduction targets (SBTs). By
decreasing greenhouse gas emissions, EQT seeks to
increase climate resilience and improve energy effi -
ciency.
Climate transition: EQT’s ambition is to accelerate
decarbonization towards a net zero economy as an
integrated part of driving long-term financial perfor -
mance. In practice this means delivering on EQT AB
Group´s own targets and supporting the EQT funds’
portfolio companies and assets in setting decarboniza -
tion targets and empowering them to execute on these
plans effectively during the ownership period.
Renewable electricity consumption: To support the
shift towards renewable energy and enable reduced
scope 2 greenhouse gas emissions.
Target considerations
EQT AB Group’s emission boundary and reduction
targets include CO2, CH4, and N2O gasses as these are
considered to be released in significant quantities for
tracking. The targets have been approved by EQT’s
Executive Committee, and the near-term targets for
2030 are validated by the SBTi and follow SBTi’s private
equity sector guideline methodology. To ensure the
targets’ consistency with the greenhouse gas emissions
boundary, EQT AB Group plans to review it at least
every five years. Stakeholders were not directly
involved in the target-setting process, but their inter -
ests, particularly around climate issues, influenced the
commitment.
Ambitions, targets and
performance Regenerative processes
Respecting and restoring
nature and promoting climate
resilience
Climate transition
Renewable electricity consumption
Transform: Operational sustainability KPIs
===== SIDA 132 =====
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
132
Climate change
Future developments have been considered while
setting the targets such as the challenges associated
with internal growth and expansion of assets under
management, which may lead to increases in green -
house gas emissions. Additionally, EQT acknowledges
broader societal forces driving the transition to renew -
able energy. These forces, including shifts in regulatory
factors, customer demand for greener alternatives, and
advancements in renewable technologies, are expected
to influence both its emissions and its capacity for
emissions reductions. As growth may initially increase
greenhouse gas emissions, the adoption of renewables
and changes in market dynamics are critical to mitigat -
ing this impact over time.
EQT AB GROUP
The 2030 target for Scope 1 and 2, office energy is
1.5°C aligned and the target for Scope 3, business travel
is well below 2°C aligned. The emission reduction target
on Scope 1 and 2 emissions addresses 100 percent of
baseline emissions, and the emission reduction target
for business travel is estimated to address 100 percent
of the total significant Scope 3 emissions. Note that the
remainder is considered emissions as part of EQT funds’
investments, for details see information below for EQT
funds.
EQT FUNDS
EQT AB Group has followed the SBTi Portfolio Coverage
Approach for EQT funds’ portfolio companies and the
Sector Decarbonization Approach (SDA) for EQT funds’
real estate assets. The portfolio coverage approach is
premised around portfolio companies setting their own
science-based targets and having them validated by
the SBTi. This approach recognizes the sector-specific
considerations, with investment portfolios that change
regularly with purchases and sales of assets. This also
means that portfolio companies are able to consider
and adopt science-based targets that are appropriate
for that individual company.
REBASELINING
To ensure that the baseline and targets remain repre -
sentative, following the acquisitive growth during
2021–2023 including EQT Exeter (now EQT Real Estate)
and BPEA (now EQT Private Capital Asia), EQT has
conducted a greenhouse gas baseline review supported
by third-party advisors. This review resulted in a
rebaselining of the science-based targets in 2024,
which were approved by the SBTi early 2025. The new
base year of 2023 is representative as it is based on
recent data and an updated scope reflecting these
acquisitions. As part of the rebaselining project, the
calculation methodology of greenhouse gas emissions
from business travel was reviewed and updated. Due to
these changes, the reported greenhouse gas emissions
from business travel for 2023 have been restated.
Greenhouse gas removals and mitigation
projects
EQT has supported a variety of greenhouse gas capture
and storage project developers as part of its carbon credit
strategy to contribute towards mitigating climate change.
These developers are acting in the voluntary markets,
outside of EQT’s operations and value chain and selected
based on the Oxford Principles1) for net zero-aligned
carbon offsetting. The number of carbon credits canceled
in the reporting year does not relate directly to that year’s
greenhouse gas emission footprint. Instead, this is a
function of the previous year’s footprint times the internal
carbon price, which EQT uses to fund different projects.
These carbon credits have been canceled upon purchase
or have a future cancellation date.
The credits have been procured with the assistance of
third party providers, responsible for project diligence and
performance monitoring is part of the service offering.
1) For more information see:
https://www.smithschool.ox.ac.uk/research/oxford-offsetting-principles
Internal carbon pricing
EQT AB Group has established an internal carbon price,
currently covering total emissions from EQT AB Group´s
operations. This has been implemented as an internal
carbon fee for the different profit and loss owners in the
firm to manage. The carbon price covers the entirety of
EQT AB Group in terms of teams and geographies, and
the price level was decided based on leading corporate
benchmarks globally, and informed by research/
academia.
Carbon credits planned to be cancelled
in the future 1)
Amount until
2028
Total (tCO2e) 5,387
1) Purchased carbon credits with a future cancellation year.
Carbon credits cancelled in the reporting year
Comparative
(2023) 2024
Total (tCO2e) 35,376 20,983
Share from removal projects (%) 100% 100%
Of which biogenic (%) 99% 86%
Of which technologic (%) 1% 14%
Share from reduction projects: (%) 0% 0%
Share from quality standard: Verra 99% 86%
Share from quality standard: Puro.earth 1%
Share from quality standard: Carbon Standards International 2%
Share from quality standard: Other/unspecified 1) 12%
Share from projects within the EU (%) 0% 5%
Share of carbon credits that qualify as corresponding adjustments (%) 0% 0%
1) Unspecified quality standards primarily relate to innovative and novel carbon removal projects that do not yet have third-party developed methodologies or
estimation protocols supporting their technology type. There are alternative third-party checks conducted on these projects by the vendor.
Disclosure on carbon credits
===== SIDA 133 =====
Retrospective Milestones and target years
20221)
Base Year
(2023) 2024
Development
since last year
2030
target
2040
target
Annual %
target/
Base year
Scope 1 GHG emissions
Gross scope 1 GHG emission
(tCO2e) 94 36 33 -9%
Natural gas 94 36 33 -9%
Percentage of scope 1 GHG emissions from
regulated emission trading schemes (%) 0 0 0 -
Scope 2 GHG emissions
Gross location-based scope 2 GHG
emissions (tCO 2e) 862 1,194 1,269 6%
Electricity 601 797 935 17%
District heating and cooling 261 397 334 -16%
Gross market-based scope 2 GHG emissions
(tCO2e) 264 397 334 -16%
Electricity 3 0 0 -
District heating and cooling 261 397 334 -16%
Gross scope 1 & 2 market-based GHG
emission (tCO 2e) 358 433 367 -15% 251 43
1) EQT Private Capital Asia included only since date of acquisition (October 18th, 2022).
Retrospective Milestones and target years
20221)
Base Year
(2023) 2024
Development
since last year
2030
target
2040
target
Annual %
target/
Base year
Significant scope 3 GHG emissions
Total gross indirect Scope 3 GHG emissions
(tCO2e) 17,831 21,973 22,899 4%
Scope 3 categories
Business travel 17,831 21,973 22,899 4%
Air travel 15,343 18,569 19,261 4%
Travel with car, bus and train 1,722 2,286 2,704 18%
Hotel 765 1,119 933 -17%
Total GHG emissions
Total GHG emissions (incl location-based
scope 2 emissions) (tCO 2e) 18,777 23,203 24,200 4%
Total GHG emissions (incl market-based
scope 2 emissions) (tCO 2e) 18,189 22,406 23,266 4%
2022 2023 2024
Development since
last year
Total GHG emissions (location-based)
per total revenue 2) (tCO2e/EUR) 0.013 0.011 0.009 -17%
Total GHG emissions (market-based)
per total revenue 2) (tCO2e/EUR) 0.012 0.011 0.009 -17%
2) The greenhouse gas intensity is based on total revenue which can be found in the consolidated financial statement
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
133
Climate change
EQT AB Group: Gross Scopes 1, 2, 3 and total greenhouse gas (GHG) emissions
Scope 1 GHG emissions - EQT’s Scope 1 emissions include Natural Gas usage for
heating purposes for one EQT office. No other sources of Scope 1 emissions have
been identified or accounted for. The emission factor for Scope 1 emissions has
been derived from the Department for Environment Food and Rural Affairs
(DEFRA) set of emission conversion factors.
Scope 2 GHG emissions - Scope 2 emissions are calculated based on reported
electricity, district heating, and cooling consumption from EQT offices. In cases
where primary data is unavailable, estimations are used, relying on data from
prior reporting periods and similar EQT offices. Shared offices where EQT does
not have operational control and utility data is not available and small offices with
few FTEs, where energy consumption is considered negligible and data collection
is unfeasible are not included. Emission factor sources for Scope 2 include:
International Energy Agency (IEA), Re-Diss Residual European Mix (Re-Diss),
Department for Environment Food and Rural Affairs (DEFRA), US EIA Emission
Factors for Steam and Chilled Water, US Residual Mix (Green-e Energy Emissions
Rates), US EPA eGRID.
Scope 3 GHG emissions - Current reported Scope 3 inventory is limited to
emissions from Business Travel. The GHG emissions reported are primarily based
on activity data from EQT’s travel management platform. For flights, the emission
calculations are primarily based on ticket information related to trip distance (km)
and flight class. Emission factors from DEFRA have then been applied separating
Long and Short haul emission factors, and radiating forcing has been applied.
For hotels, emissions factors from DEFRA and the Hotel Footprinting tool have
been used. Activity data includes the number of hotel nights and spend on
accommodation. Ground travel is strictly based on spend and emissions factors
from Quantis Scope 3 evaluator. EQT acknowledges that the tool has been
discontinued and is working on identifying a new relevant source to calculate its
spend-based GHG emissions from ground travel. All Scope 3 calculations have
used input from entity-specific activities, and primary data from suppliers and
value chain partners accounts for 100 percent of reported Scope 3 emissions.
Global Warming potentials - All greenhouse gas emissions are calculated in
metric tons of pollutant and converted to metric tons of CO2 equivalents (or
“CO2e”). For Scope 1 and 2 GHG emissions reporting the Global warming
potentials (GWPs) for EQT’s inventory are taken from the Intergovernmental Panel
on Climate Change (IPCC) IPCC Sixth Assessment Report (AR6) using values for a
100-year time horizon. For Scope 3 Business Travel, GWPs from IPCC Fifth
Assessment Report (AR5) using values for a 100-year time horizon have been
applied.
Total greenhouse gas (GHG) emissions per total revenue
(Emission intensity)
Accuracy, uncertainties and continuous improvement - EQT is committed to
improving the accuracy of its reported GHG emissions while recognizing the
inherent uncertainties associated with such calculations. These uncertainties
include scientific uncertainty, such as variability in global warming potential
(GWP) values, and estimation uncertainty, arising from modeling approaches and
parameter inputs like activity data and emission factors. While some uncertain -
ties, such as those related to scientific understanding or model precision, may be
beyond the scope of EQT’s GHG emissions reporting efforts, the company
prioritizes reducing parameter uncertainty through continuous efforts to improve
data collection processes, data quality and estimation techniques.
===== SIDA 134 =====
Absolute emissons Financed emissions Data quality Intensities
EQT platforms GHG emissions
(tCO2e)
(FY 2023 data)
Scope 1 Scope 2 Scope 3
Total absolute
greenhouse
gas emissions Scope 1 Scope 2 Scope 3
Total
financed
greenhouse
gas emissions
PCAF Score1)
(1-5)
Carbon footprint
(tCO2e/mEUR invested) 2)
Emissions Intensity (WACI)
(tCO2e/mEUR revenue)3)
Carbon footprint
(kgCO2e/ sqm)4)
EQT Private Capital EU & NA
581,515 361,091 22, 4 97,824 23,440,429 81,939 38,412 4,312,574 4,432,925 2.2
101 332
EQT Infrastructure
8,791,840 56,070 10,242,904 19,090,814 2,755,432 23,882 2,481,340 5,260,653 2.2
157 1,128
EQT Private Capital Asia 375,306 359,909 4,633,725 5,368,940 33,523 82,158 1,423,796 1,539,476 2.1 68 91
EQT Real Estate5) 11,731 38,147 473,321 523,198 - - - - - - - 28
Total 9,760,391 815,217 37,847,773 48,423,381 2,870,894 144,451 8,217,710 11,233,05 4 2.2 112 559 28
1) PCAF data quality score. Score 1 = highest, Score 5 = lowest
2) Based on attributed emissions
3) Based on absolute emissions
4) Based on absolute emissions
5) EQT funds’ real estate assets with a discretionary mandate
EQT funds: Financed emissions
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
134
Climate change
Financed emissions for the EQT funds (Scope 3, category 15) has been calculated
in line with the GHG Protocol Corporate Value Chain Standard (2011), the
Partnership for Carbon Accounting Financials (PCAF) Financed Emissions
Standard (2022), and the requirements of the Sustainable Finance Disclosure
Regulation (SFDR). The listed company methodology has been applied across all
portfolio companies. Furthermore, enterprise value excluding cash has been used
instead of enterprise value including cash.
Financed emissions - Portfolio companies
EQT collects emissions data annually from portfolio companies and has achieved
an 86 percent coverage rate (reported figures from portfolio companies) for
20231)2).For the remaining portfolio where portfolio companies reported partial,
or no, emissions data, EQT has used proxies to address gaps by deriving estimates
from specialized third-party data providers or by generating its own estimates.
EQT’s emissions estimation methodology uses sector-based emissions intensities,
portfolio company characteristics, and revenue data to estimate emissions.
The same concerns for accuracy, uncertainties and continuous improvement apply
for the Portfolio Companies emission reporting as for the EQT AB Group, see
methodology description above.
1) Coverage based on EQT Funds invested capital per end of 2023.
2) Emissions for the calendar year 2024 from portfolio companies have not
been made available at the time of this report as portfolio companies require
time to calculate and finalize their own reporting post year end before
making their emission statements available to EQT.
Emissions from the portfolio companies are attributed to EQT using the following formula:
Weighted average carbon intensity (WACI) and carbon footprint calculations for Equities
have been established using the following formulas:
Financed emissions = ∑ (Issuer’s GHG emissions x Attribution factor)
WACI = ∑
Carbon footpr
int = ∑
Current value of investment
Current value of issuer
x )(
Current value of investment
Current portfolio value Issuer´ s revenue (€M)
Issuer´s Scope 1, 2 & 3 (tCO2e)
)(
Attribution factor x Issuer´s Scope 1, 2 & 3 (tCO2e)
Current portfolio value (€M)
Attribution factor =
Financed emissions - Real Estate
For real estate assets, emissions include whole-building operational emissions
from landlord and tenant energy consumption. EQT calculates emissions using
direct utility data where available and applies estimation methodologies for data
gaps. When reported emissions data is unavailable, estimations are based on
whole-building benchmarks aligned with industry best practices. Emission factors
are sourced from publicly available databases, primarily using the International
Energy Agency (IEA) and location-based grid factors for electricity.
The same concerns for accuracy, uncertainties and continuous improvement
apply for the Real Estate emission reporting as for the EQT AB Group, see
methodology description above.
The carbon footprint calculation for Real Estate has been
established using the following formula:
Carbon footprint = ∑ Scope 1, 2 & 3 (kgCO2e) b
sqm b
(b=buildings)
===== SIDA 135 =====
Proportion of turnover from products or services associated with Taxonomy-aligned economic activities
Financial year 2024 2024 Substantial contribution criteria DNSH criteria (“Does Not Significantly Harm”)
Economic Activities
Code(s)
Turnover
Proportion of
turnover 2024
Climate Change
Mitigation
Climate Change
Adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate Change
Mitigation
Climate Change
Adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum
Safeguards
Proportion of
Taxonomy- aligned
(A.1.) or -eligible
(A.2.) turnover, year
2023
Category enabling
activity
Category
transitional activity
EUR m % Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. Taxonomy-eligible activities
A.1. Environmentally sustainable activities (Taxonomy- aligned)
Turnover of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
Of which enabling
Of which transitional
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Turnover of Taxonomy- eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2)
A. Turnover of Taxonomy-eligible activities (A.1+A.2)
B. Taxonomy non-eligible activities
Turnover of Taxonomy- non-eligible activities 2,653 100%
Total 2,653 100%
The EU Taxonomy aims to provide a common under-
standing of economic activities that make a substantial
contribution to the EU’s environmental goals. As EQT AB
Group follows under NFRD (non-financial reporting
directive), EQT is obliged to report its share of taxono -
my-eligible and taxonomy-aligned activities covering
financial year 2024.
EQT AB has reviewed the economic activities that
are covered in the EU Taxonomy together with a third
party expert and concluded that there is little to none of
EQT AB’s activities that can be assessed as taxonomy -
eligible based on the definitions set out.
Note that an economic activity can contribute to
more than one environmental goal. To avoid risk of
double counting, EQT has made assessments where
contribution only is attributable to one environmental
goal per economic activity.
TURNOVER
EQT AB Group’s revenues relate to management fees,
carried interest and investment income. While sustain -
ability is an integrated part in EQT’s operating model, a
share of Taxonomy- eligible activities cannot be directly
derived from management fees. Carried inter est and
investment income relates to investments in EQT funds
and are hence pure financial. Thus the share of eligible
turnover is zero. For further details, please see the
Consolidated Income Statement and Note 5 Revenue.
EU Taxonomy Statement
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
135
Climate change
===== SIDA 136 =====
Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2024
Financial year 2024 2024 Substantial contribution criteria DNSH criteria (“Does Not Significantly Harm”)
Economic Activities
Code(s)
CapEx
Proportion of CapEx,
year 2024
Climate Change
Mitigation
Climate Change
Adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate Change
Mitigation
Climate Change
Adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum Safeguards
Proportion of
Taxonomy- aligned
(A.1.) or -eligible
(A.2.) CapEx, year
2023
Category enabling
activity
Category transitional
activity
EUR m % Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. Taxonomy-eligible activities
A.1. Environmentally sustainable activities (Taxonomy- aligned)
Acquisition and ownership of building C C M 7. 7 0.0 0.0% Y N/EL N/EL N/EL N/EL N/EL Y Y 13.0%
CapEx of environmentally sustainable activities
(Taxonomy-aligned) (A.1) 0.0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y 13.0%
Of which enabling E
Of which transitional T
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Acquisition and ownership of building C C M 7. 7 121.8 93.8% N/EL N/EL N/EL N/EL N/EL N/EL 81.3%
CapEx of Taxonomy- eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities) (A.2) 121.8 93.8% 81.3%
A. CapEx of Taxonomy-eligible activities (A.1+A.2) 121.8 93.8% 94.5%
B. Taxonomy non-eligible activities
CapEx of Taxonomy- non-eligible activities 8.0 6.2%
Total 129.8 100.0%
CAPEX
EQT AB Group’s Capex as defined by the EU Taxonomy
consists of intangible assets related to business combi -
nations, equipment, leasehold improvements as well as
office leases, either for new offices or newly admitted
contracts. The amounts related to intangible assets
related to business combinations, equipment and
leasehold improvements are found in the Consolidated
financial statements as Additions in Note 1 1 and Note
12, respectively. Additions related to office leases are
part of Other changes, net in the section Office prem -
ises in Note 12.
Purchases of output from Taxonomy-eligible
economic activities of suppliers has been reported as
eligible Capex regardless of EQT having a target
activity that is eligible, hence all capex related to office
leases and the leasehold improvements have also this
year been reported as eligible.
To define whether the amounts are considered
aligned according to Taxonomy criteria, EQT has
requested information from its landlords whether the
office buildings which EQT leases are meeting 1) the
substantial contribution criteria and 2) if the landlords
are meeting the DNSH-criteria (do no significant harm
criteria) as well as the minimum safeguards. The
request was only sent out to landlords in the EU, as it is
an EU-based regulation, accounting for around 3
percent of the eligible Capex. Still, some European
landlords could not officially respond to the request and
the associated capex were by default considered as not
aligned.
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
136
Climate change
===== SIDA 137 =====
Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering year 2024
Financial year 2024 2024 Substantial contribution criteria DNSH criteria (“Does Not Significantly
Harm”)
Economic Activities
Code
OpEx
Proportion of
OpEx, year 2024
Climate Change
Mitigation
Climate Change
Adaptation
Water
Pollution
Circular Economy
Biodiversity
Climate Change
Mitigation
Climate Change
Adaptation
Water
Pollution
Circular Economy
Biodiversity
Minimum
Safeguards
Proportion of
Taxonomy-
aligned (A.1.) or
-eligible (A.2.)
OpEx, year 2023
Category
enabling activity
Category
transitional
activity
EUR m %
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. Taxonomy-eligible activities
A.1. Environmentally sustainable activities (Taxonomy- aligned)
OpEx of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
Of which enabling
Of which transitional
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
OpEx of Taxonomy- eligible but not environmental -
ly sustainable activities (not Taxonomy-aligned
activities) (A.2)
A. OpEx of Taxonomy-eligible activities (A.1+A.2)
B. Taxonomy non-eligible activities
OpEx of Taxonomy- non-eligible activities
Total
OPEX
EQT AB Group doesn’t perform any R&D activities and
as offices are leased the only potential Opex relates to
maintaining and repairing e.g. technology hardware,
which is negligible.
EQT’S EXPOSURE TO NUCLEAR AND FOSSIL GAS
RELATED ACTIVITIES
Non-financial companies are required to report their
exposure to activities related to nuclear power and
fossil gas as part of the taxonomy reporting. EQT has
made an assessment and it is concluded that EQT does
not have any exposure to activities related to nuclear
power and fossil gas.
Nuclear energy related activities
1. The undertaking carries out, funds or has expo-
sures to research, development, demonstration and
deployment of innovative electricity generation facil-
ities that produce energy from nuclear processes with
minimal waste from the fuel cycle.
NO
2. The undertaking carries out, funds or has exposures
to construction and safe operation of new nuclear
installations to produce electricity or process heat,
including for the purposes of district heating or
industrial processes such as hydrogen production,
as well as their safety upgrades, using best available
technologies.
NO
3. The undertaking carries out, funds or has exposures
to safe operation of existing nuclear installations that
produce electricity or process heat, including for the
purposes of district heating or industrial processes
such as hydrogen production from nuclear energy, as
well as their safety upgrades.
NO
Fossil gas related activities
4. The undertaking carries out, funds or has exposures
to construction or operation of electricity generation
facilities that produce electricity using fossil gaseous
fuels.
NO
5. The undertaking carries out, funds or has exposures
to construction, refurbishment, and operation of com-
bined heat/cool and power generation facilities using
fossil gaseous fuels.
NO
6. The undertaking carries out, funds or has exposures
to construction, refurbishment and operation of heat
generation facilities that produce heat/cool using
fossil gaseous fuels.
NO
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
137
Climate change
===== SIDA 138 =====
#00#3.3
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
Own workforce
139 Own workforce
139 — Equal treatment and opportunities for all
139 — Employee development, health and well-being
139 — Interaction with strategy and business model - People at the core
of EQT’s success
140 Policies and guidelines
140 — Code of Ethics
140 — EQT Diversity and No-Harassment Guidelines
140 — EQT Global Workplace Health and Safety Guideline
141 Processes for engaging with own workers
141 — Employee engagement
141 — Trainings and awareness
141 — Affiliation networks
142 Processes to remediate negative impacts and channels
to raise concerns
142 — Measures against violence and harassment
142 — Well-being and work-life balance
142 — Equal treatment and opportunities for all
143 Actions
143 — Gender equality and equal pay
143 — Training and skills development
143 — Well-being and work-life balance
144 — Other initiatives
144 Ambitions and performance
===== SIDA 139 =====
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
Own workforce
139
Own workforce
EQT AB Group fosters an inclusive culture
that allows people to be who they
authentically are. This allows people to bring
their best ideas to the table and builds
high-performing teams.
EQUAL TREATMENT AND OPPORTUNITIES FOR ALL
At EQT AB Group, inclusion is a business imperative,
embedded into the talent strategy, decision-making,
and culture to ensure that every individual and team
operates at their full potential. By embedding an
inclusive culture, EQT AB Group can unlock better
collaboration, stronger innovation, and superior
investment outcomes. Diversity aspects have generally
been lagging in the financial industry, which could lead
to more homogenous culture, stifle innovation and
make companies less attractive to a diverse talent pool.
It may also limit the ability to understand and connect
with a diverse client base and global markets. EQT AB
Group fosters a culture that benefits from inclusion,
diverse backgrounds and experiences. When imple -
mented effectively, this not only enhances EQT AB
Group’s ability to attract and retain employees and
continuously build high-performing teams. Conversely,
if inclusion efforts are not properly implemented, there
is a risk that EQT might be losing talent.
EMPLOYEE DEVELOPMENT, HEALTH AND
WELL-BEING
A great place to work drives the best performance, thus
employee engagement plays an important role in both
physical and mental well-being, and is a key driver of
performance and continuous development. EQT AB
Group emphasizes employee development and actively
supports its employees in maximizing their potential
through training and skills development. Recognizing
work-life balance and stress as general challenges in
the financial industry, EQT AB Group is committed to
implementing initiatives that positively impact its
workforce. Employee engagement is another opportu -
nity to drive performance, continue development, and
ensure employee health.
Material topics related to own workforce
Material topics Value chain
Own
workforce
Equal treatment and
opportunities for all
Gender equality and
equal pay for work of
equal value
Measures against
violence and harassment
in the workplace
Diversity
EQT AB
Group
Employee development,
health and well-being
Training and skills
development
Well-being and work-life
balance
Employee engagement
EQT AB
Group
INTERACTION WITH STRATEGY AND
BUSINESS MODEL – PEOPLE AT
THE CORE OF EQT’S SUCCESS
As people are at the core of EQT’s success, EQT AB
Group carefully assesses the relationship between mate-
rial impacts, risks and opportunities2), ensuring that the
strategy remains adaptive, fostering sustainable and
equitable growth. As a people-centric business, factors
such as well-being, skills development and employee
engagement directly influence financial performance.
Motivated and well-supported employees drive produc-
tivity, innovation, and overall business success3). The
below impacts are connected to EQT’s business model as
well as strategy:
— Negative material impacts on the own workforce 4)
may arise from challenges such as difficulties in
implementing inclusion programs or mental
well-being . For EQT Group AB, this could potentially
1) Permanent and fixed-term employees within EQT AB Group.
2) EQT AB Group’s material impacts, risks and opportunities are assessed to affect
the employees within EQT AB Group. They do not affect non-employees (on-site
consultants) to the same extent as permanent employees as they are employed
by a third party who have to adhere to EQT’s Business Partner Code of Conduct.
On-site consultants help EQT maintain operational continuity during extended
absences, e.g., parental leaves or temporary reassignments. They can fill roles
until permanent hires are made and, in certain cases, provide expertise that
may be difficult to access otherwise or that is not needed long-term. The
number of on-sites consultants were 55 at the end of the period 2024.
3) No material impacts on employees within EQT AB Group have been observed
from EQT’s transition plan towards net zero.
4) There is no significant risk of incidents of forced labor or child labor within EQT
AB Group’s operations.
create challenges in attracting and retaining the best
talent which could ultimately have an impact on
performance and fundraising.
— Positive impacts stem from EQT AB Group promoting
equal opportunities and fostering a culture that
embraces diverse backgrounds and experiences,
with zero tolerance for harassment. This could lead to
a financial opportunity for EQT AB Group through
improved innovation, better decision-making and
overall performance. Additionally, EQT places a
strong focus on employee development and
engagement. This could lead to financial benefits
from further realizing employees’ potential. For more
information regarding the actions leading to EQT’s
positive impacts, please see the section Actions.
For more information regarding insights from EQT AB
Group’s employees and their influence on its strategy
and business model, please see the section Interests
and views of stakeholders.
This section covers EQT AB Group’s employees1).
People are EQT’s most important asset and this
section describes how EQT cultivates high-
performing teams by fostering an environment
where every individual feels valued, empow -
ered, and motivated to drive business impact.
===== SIDA 140 =====
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
140
Own workforce
EQT AB Group has adopted a Code of Ethics, Diversity
and No-Harassment Guidelines and a Global Work -
place Health and Safety guideline 1) to address and
promote Equal treatment and opportunities for all as
well as Employee development, health and well-being.
For more information regarding how EQT AB Group
monitors these governing documents, please see the
section Business Conduct.
CODE OF ETHICS
The Code of Ethics promotes diverse, equitable and
inclusive workplaces and defines the ethical principles,
values, and standards that staff are expected to
uphold. The Code also addresses EQT’s commitment to
employee health and well-being, and employee
engagement. EQT AB Group fosters equal opportuni -
ties, equal pay, and an inclusive work culture. Safe -
guarding a good place to work is strategically import -
ant in relation to all internal and external stakeholders.
It is everyone’s responsibility to adhere to and act
according to the principles set out in the Code and
employees’ compliance with the Code is included in their
annual performance review. For more information
regarding scope and owner of the Code of Ethics, please
see the section Business Conduct.
Human Rights including Labour Rights
EQT AB Group is committed to upholding internationally
recognized human rights and, as stated in the Code of
Ethics, works systematically to integrate the UN Global
Compact (UNGC) Principles (UNGC), UN Guiding
Policies and guidelines
Principles on Business and Human Rights (UNGP), the
OECD Guidelines for Multinational Enterprises, Interna -
tional Labor Organization’s (ILO) fundamental conven -
tions and its principles, and the Universal Declaration of
Human Rights into its organizational processes.
Recognizing that this is an ongoing learning process,
EQT aims to continuously elevate its efforts to integrate
human and labor rights in its core business practices.
As a formal signatory of the UNGC, EQT has gained
valuable insight and increased its transparency in this
area through the Communication on Progress (CoP).
The CoP questionnaire is submitted annually and
discloses progress made in the areas of human rights,
governance, labour, environment and anti-corruption. It
is the primary mechanism for participating companies
to demonstrate progress made against the Ten Princi -
ples of the UNGC, and it is also aligned with UNGPs and
OECD guidelines. It allows EQT to identify improve -
ments and gaps within these areas.
EQT’s direct human rights risks are primarily
connected to its employees with regard to inclusion,
and a healthy, safe, discrimination and harass -
ment-free workplace. EQT follows market practice in
the different countries in which it operates, for benefits
offered and work security practices. EQT’s employees
have the right to be unionized and EQT supports ILO’s
core conventions, including the freedom of association
and the right to collective bargaining.
EQT fosters an open and honest culture where all
employees are encouraged to speak their mind and
communicate if they have any concern regarding
potential risk to themselves, their colleagues, EQT’s
business or reputation, or to any other stakeholder.
In addition, EQT has made available an anonymous
whistleblowing channel both internally on the intranet
and externally on its website. For more information,
please see the section Processes to remediate negative
impacts and channels to raise concerns.
EQT DIVERSITY AND NO-HARASSMENT
GUIDELINES
EQT’s Diversity and No-Harassment Guidelines promote
an inclusive culture. This commitment is evidenced by
EQT AB Group’s dedication to equal opportunities in
recruitment, employee development, including training
and skills growth, and remuneration.
EQT AB Group enforces a zero-tolerance policy
towards any form of discrimination, harassment, or
bullying. The guidelines explicitly cover various grounds
for discrimination including racial and ethnic origin,
color, sex, sexual orientation, gender identity, disability,
age, religion, political opinion, national extraction,
social origin, and other forms protected by national law
in the regions where EQT operates.
To ensure prevention and mitigation of discrimina -
tion, all EQT permanent employees and temporary staff
annually acknowledge the EQT Diversity and No-Ha -
rassment Guidelines. For more information, please see
the section Actions.
EQT AB Group is conscious that there are vulnerable
groups based on the various grounds for discrimination,
however the guidelines apply to all EQT AB Group
permanent employees and temporary staff 2). The most
senior level accountable for the implementation of the
guidelines is the CEO together with the Global Head of
Human Resources.
EQT GLOBAL WORKPLACE HEALTH AND SAFETY
GUIDELINE
The Global Workplace Health and Safety Guideline is
designed to meet international as well as local work -
place safety standards. It captures work-related risks
and activities that take place in the EQT AB Group
offices. The guidelines encompass strategies for
preventing work-related accidents, managing health
and safety risks, and setting up effective emergency
procedures.
EQT AB Group has implemented a workplace
accident prevention framework, as outlined in the
guideline. To follow up on any accidents, EQT AB Group
develops reports, prompts tests and checks, and
records incidents in a management system.
The guideline applies to all EQT employees, tempo -
rary staff and external parties engaging with EQT on
EQT premises. The guideline is owned by the Head of
Corporate Real Estate and Workplace and signed by
the Chief Operating Officer (COO).
1) See website for more information:
https://eqtgroup.com/eqt-policies-and-statements
2) “Temporary staff” means all temporary staff of EQT who have access to EQT
premises and/or systems.
===== SIDA 141 =====
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
141
Own workforce
EQT AB Group recognizes that actively engaging
employees is an opportunity to promote a culture of
dedication and motivation. Employee engagement
enhances performance and serves as a measure of
development and employee health. By promoting
engagement, EQT AB Group ensures that the views and
contributions of employees shape EQT AB Group’s
culture, values and operational strategies. Central to
these efforts are initiatives to reinforce EQT AB Group’s
commitment to inclusion. These strategic initiatives are
focused on four pillars to develop an inclusive work -
place:
— Inclusive Representation: Elevating workplace unity
by ensuring that a broad range of perspectives and
backgrounds are heard and valued.
— Fair Work Practices: Advocating for fairness and
inclusivity in every aspect of our operations
— Celebrating our unique backgrounds: Valuing and
acknowledging individual and local contributions to
enrich our collective workplace experience.
— Continuous Learning: Cultivating a culture of
collaboration that appreciates the complexity of our
global scale.
EMPLOYEE ENGAGEMENT
EQT AB Group follows up on engagement and well-be -
ing using annual employee engagement surveys where
employees respond confidentially. The insights gained
Processes for engaging
with own workers
1) In France, Italy and Spain, EQT AB Group has entered into collective bargaining
agreements, covering 4 percent of the total workforce.
through these surveys help define strategic priorities,
enable managers to make better people-related
decisions, and track trends.
In 2024, EQT AB Group launched “EQT Voice”, a new
annual employee engagement survey. This global
initiative gathers insights from employees across 16
areas to identify improvement opportunities and drive
positive change within the organization.
The survey results form the basis for actions taken
by the Executive Committee and the individual business
lines to ensure that workforce perspectives are inte -
grated into decision-making processes. A potential risk
to the employee engagement survey is not taking
sufficient actions to address employee feedback, which
could lead to demotivation and increased attrition. To
mitigate this risk, EQT AB Group is committed to
leveraging survey insights to inform strategies, ensuring
continuous improvement and a supportive work
environment. Managed by Human Resources, EQT Voice
affirms a structured and impactful approach to
employee engagement. The effectiveness of EQT Voice
is measured by the survey participation rate and the
employee engagement scores.
In addition to surveys, EQT AB Group holds all-staff
webinars to provide business updates and maintains
various forums and channels for sharing information.
Furthermore, meetings with managers allow for
personalized communication about organizational
developments that may affect employees. EQT AB
Group engages directly with employees to ensure a
comprehensive understanding of their perspectives,
though it does not have workers’ representatives
everywhere. EQT follows market practice in the
different countries where it operates, for benefits
offered and work security practices. EQT’s employees
have the right and opportunity to be unionized. EQT
supports the ILO core conventions and its principles,
among them the freedom of association and right to
collective bargaining1).
TRAININGS AND AWARENESS
On an annual basis, all employees are required to
acknowledge the Code of Ethics and other policies.
EQT’s Diversity and No-Harassment Guidelines is
included in both the Annual Ethics Training and the
Compliance introduction training, which is part of
onboarding. This also includes information on the
whistleblowing and incident reporting process. All
courses are available on EQT AB Group’s online
learning platform. All employees are also encouraged
to complete trainings on subjects like inclusive leader -
ship and diversity of thought, these trainings are also
included in the employee onboarding.
AFFILIATION NETWORKS
EQT AB Group’s affiliation networks help people
connect, become better allies, enhance their knowl -
edge, develop professionally and participate in a safe
space. EQT AB Group is aiming to grow these networks
so that more members and allies can connect.
DiverseMinds
DiverseMinds is EQT AB Group’s Neurodiversity Network
and represents an important step towards deepening
EQT AB Group’s commitment to an inclusive workforce,
where all talent is recognized and celebrated. Neuro -
diversity encompasses a variety of neurological
differences. DiverseMinds aims to:
— Foster connectivity among individuals passionate
about neurodiversity.
— Enhance the understanding and support of neuro -
divergent colleagues.
— Build a more inclusive and empathetic workplace.
EQT PRIDE
EQT PRIDE is a diversity-focused network within EQT AB
Group dedicated to LGBTQ+ topics. The network
focuses on inclusivity and allyship, fostering a culture
where everyone can be their authentic selves in a
professional setting. The network features inclusion-re -
lated events, social activities and educational content.
EQT WIN
EQT WIN, the EQT AB Group’s women’s international
network, was founded in 2018 with the purpose to:
— Attract more women to EQT AB Group and increase
retention of female employees.
— Implement action points to ensure equal opportuni -
ties for all.
— Drive initiatives that ensure more equal and inclusive
workplaces.
===== SIDA 142 =====
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
142
Own workforce
Processes to remediate
negative impacts and
channels to raise concerns
To remediate negative impacts, EQT AB Group has
implemented comprehensive processes and frame -
works to ensure that concerns related to violence,
harassment and misconduct are promptly addressed
while providing channels for employees to raise issues.
To remediate negative impacts on equal treatment and
opportunities for all, employee well-being and work-life
balance, EQT AB Group supports its employees through
processes and various initiatives to ensure an inclusive
and sustainable work environment. The effectiveness
and trust of the processes are measured in various
ways, for example through the employee engagement
survey and in meetings with managers.
MEASURES AGAINST VIOLENCE
AND HARASSMENT
EQT AB Group maintains a zero-tolerance policy
towards violence and harassment in the workplace,
reinforced by the Code of Ethics and the EQT Diversity &
No-Harassment Guidelines. A robust reporting process
is in place, allowing employees to report concerns
directly to line managers, Human Resources, Compli -
ance, or anonymously through the whistleblowing
channel and employee engagement tool.
The whistleblowing channel, administered by an
external service provider, is accessible from any device,
ensuring anonymity and secure dialogue. The Annual
Ethics training includes guidance on speaking up,
whistleblowing, and incident reporting, further support -
ing a safe, respectful, and ethical work environment.
Safeguards are also in place to protect against retalia -
tion for raising concerns or reporting incidents, under -
scoring EQT AB Group’s commitment to maintaining a
fair and ethical workplace.
Global Disciplinary Framework
EQT AB Group has a Global Disciplinary Framework to
handle any actions or conduct that go against its
values, policies, guidelines, and procedures. This
framework ensures that misconduct is properly esca -
lated and handled consistently worldwide. For more
information, please see the section Business conduct.
WELL-BEING AND WORK-LIFE BALANCE
Acknowledging industry challenges, EQT AB Group
remediates negative impacts by positively contributing
to employees’ work-life balance and overall well-being.
EQT AB Group offers mental health support to take
a proactive approach to mental health and well-being.
EQT AB Group’s local Human Resource representatives
also follow up on short-term sick leave rates to identify
any potential risk of long-term sick leave to proactively
support those employees.
Employees have regular meetings with their
managers and a yearly development conversation
where employees can raise issues and the manager can
support the employee by adjusting goals, workload etc.
EQT AB Group also supports employees wishing to work
from home, subject to their role, responsibilities, and
prior agreement with their manager.
EQUAL TREATMENT AND OPPORTUNITIES FOR ALL
For information regarding how EQT AB Group remedi -
ate negative impacts on equal treatment and opportu -
nities for all, please see the section Processes for
engaging with own workers and Actions.
For more details and information regarding actions
related to well-being and work-life balance, please see
the following section.
===== SIDA 143 =====
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
143
Own workforce
Actions
During the reporting period, EQT AB Group with
support from the Human Resources team, have
undertaken the following actions to remediate negative
impacts and promote and address Equal treatment and
opportunity for all and Employee development, health
and well-being in alignment with the policies and
guidelines outlined above. The employee engagement
score, measured in EQT AB Group’s yearly employee
engagement survey EQT Voice, indicates the effective -
ness of actions taken during the year.
GENDER EQUALITY AND EQUAL PAY
EQT AB Group recognizes the importance of gender
equality and is steadfast in its dedication to ensuring
equal pay and opportunities for all employees, as
outlined in the Diversity and No-Harassment Guide -
lines. Ongoing initiatives such as the EQT WIN affiliation
network demonstrate a commitment to attracting
women, retaining female talent, and fostering an
environment where everyone, regardless of gender, has
equal opportunities.
EQT AB Group is a performance-driven organiza -
tion focused on long-term value creation. Team and
individual performance are important, therefore EQT
rewards both. All staff are encouraged to take owner -
ship and contribute to EQT AB Group’s success, and are
rewarded for innovative ideas and collaboration. EQT
AB Group offers competitive compensation, reviewed
annually against benchmarks. EQT seeks to ensure fair
and equal pay to employees regardless of gender,
ethnicity or any other factor unrelated to performance
or experience. Salary and benefits are based on
geography and consistent with local practice. Higher
performance is rewarded with higher compensation
through annual variable pay.
Long-term incentives and investment opportunities
include an annual equity incentive plan (with shares and
options), carried interest and co-investment schemes,
which align employees with investors over the long-term.
TRAINING AND SKILLS DEVELOPMENT
Talent Development is a key focus area for EQT AB
Group continuing to grow and support high performing
individuals and teams to deliver superior returns. The
EQT Academy is a core part of this Talent Development
platform with targeted and bespoke development. The
EQT Academy delivers a wide range of growth and
development programs ranging from general onboard -
ing programs to career progression and personal
development programs to future-proof talents. EQT AB
Group’s development framework, “Leading Myself,
People, and the Business”, focuses on both professional
and personal growth, providing employees with
continuous opportunities to enhance their skills and
leadership capabilities.
To deliver sustained performance the EQT Academy
uses team focused and peer-to-peer learning to
integrate development into practical applications
resulting in immediate results and ongoing improve -
ment and development within teams.
A key component of EQT AB Group’s people strategy
is supporting employees to realize their potential.
Employees in EQT AB Group are offered regular
performance and career development reviews sup -
ported by a 360-degree feedback process. To support
a fair and unbiased process all employees and line
managers are offered training around conscious
inclusion, giving and receiving feedback as well as
difficult conversations.
Employee development is supported through on-the-
job training with seniors training juniors, buddy systems,
mentorship programs and with proactive role moves
within or across geographies to provide learning
opportunities.
This approach ensures that EQT AB Group employ -
ees are equipped with the latest skills and capabilities,
aligning with EQT’s culture and values.
WELL-BEING AND WORK-LIFE BALANCE
EQT AB Group is committed to continuously evaluating
and improving practices to ensure a balanced and
healthy work environment for all employees.
Insufficient focus on well-being and work-life
balance can lead to increased stress, burnout, and a
decline in mental health among employees, which in
turn can adversely affect their engagement and
performance. Acknowledging this, EQT AB Group
invests in initiatives to support its employees.
Through these efforts, EQT AB Group demonstrates its
dedication to maintaining a harmonious balance
between work and personal life, ensuring the well-be -
ing of EQT AB Group employees, which is integral to the
organizational success and sustainability.
Health and well-being
EQT AB Group offers private healthcare and health
checks to its employees.
Mental health
EQT AB Group encourages open conversations about
mental well-being at work and takes a preventative and
personalized approach to nurture mental well-being
and build mental resilience. Additionally, EQT AB Group
has entered into a partnership with a global mental
health provider that offers support across the entire
mental health spectrum.
Parental leave
EQT AB Group supports all its employees in achieving a
work-life balance by offering 30 weeks1) of parental
leave after childbirth or adoption, with 100 percent of
their current base salary. Employees are also eligible to
receive a performance bonus for this period. This
benefit is available to all permanent EQT AB Group
employees.
Wellness allowance
EQT AB Group provides a wellness allowance for
activities that contribute to the physical and mental
well-being of its employees.
Working parents coaching
EQT AB Group offers coaching to all expectant parents
to help navigate work-life challenges and develop
strategies for managing their role as a working parent.
This includes confidential coaching sessions that can be
scheduled during the pre-leave period, upon returning
to work, and later as they balance their responsibilities
as a parent and professional.
1) EQT Real Estate US Parental leave Primary Caregiver: Eligible employees will
receive a maximum of twelve (12) weeks of paid parental leave per birth,
adoption, or placement of a child/children. Leave is paid at 100 percent
through short-term disability benefits and salary.
===== SIDA 144 =====
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
144
Own workforce
Ambitions and performance
EQT AB Group has set long-term ambitions to foster an
inclusive and equitable workplace. While these ambi -
tions are not formal targets, they represent EQT AB
Group’s commitment to continuous improvement. These
ambitions are part of the EQT’s sustainability strategy,
which also covers EQT funds’ portfolio companies to
drive sustainable transformation at scale.
Diversity in the Boards and C-suite: EQT AB Group’s
long-term ambition is to compose diverse teams and
strives for boards and C-suites with a maximum of 60
percent of the same gender. This is part of a broader
effort to drive performance by ensuring a balanced
representation that brings varied perspectives and
experiences to leadership teams.
Gender balance in the top 20% earners: EQT AB
Group’s long-term ambition is to aim for gender
balance among the top 20 percent of earners. This
ambition reflects EQT’s dedication to be a fair and
inclusive employer which would be reflected in com -
pensation and career advancement opportunities.
Employee engagement: Enhancing employee
engagement is crucial for organizational health and
success. EQT AB Group regularly surveys employees to
measure engagement levels and identify areas for
improvement, ensuring that initiatives are aligned with
the needs and expectations of EQT AB Group’s
employees.
EQT AB Group 2024 engagement score of 79
percent is top quartile in the finance industry.
Equitable business practices
Ensuring equal rights and
opportunities across all
aspects of the business
Diversity in the Boards and C-suite
Gender balance in the top 20% earners
Employee engagement
Diversity in the EQT AB Board and C-suite 2024 2023 2022
Board
Women 3 43% 2 29% 3 38%
Men 4 57% 5 71% 5 62%
Senior executives 1)
Women 4 33% 4 33% 4 27%
Men 8 67% 8 67% 10 73%
1) Executive Committee
Headcount at the end of the period.
Gender distribution among the top 20% of earners 1) 2024 2023
Women 23% 22%
Men 77% 78%
1) Based on headcount
Employee engagement score 20241)
Women 78%
Men 80%
Total 79%
1) The new employee survey in 2024 has a scale of 5 instead of 10. Engagement
score measures how many percent are favorable, answering 4 or 5 on the scale.
Transform: Operational sustainability KPIs
Employee engagement score 20232) 20222)
Women 8.0 8.2
Men 8.1 8.4
Total 8.0 8.3
2) The previous employee survey had a scale of 10 where the result is presented
as an average absolute score.
OTHER INITIATIVES
— EQT AB Group has implemented a global recruitment
system to standardize the recruitment process and
enable effective follow-up on recruitment activities.
In addition to this global approach, EQT AB Group
supports local and community initiatives.
— In 2024, EQT AB Group rolled out a new employee
portal for benefits, making them more visible and
easily accessible to all employees.
EQT seeks to ensure that its practices do not cause or
contribute to material negative impacts by adhering to
the policies and guidelines outlined in the Policy section.
EQT also provides access to well-being resources.
===== SIDA 145 =====
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
145
Own workforce
CHARACTERISTICS OF EQT AB GROUP EMPLOYEES
The total number of employees (headcount) by gender 2024 2023 2022
Women 891 824 753
Men 1,047 1,005 978
Not disclosed 22 Not available Not available
Total employees 1,960 1,829 1,731
Employees at the end of the period, employees on payroll, full time and fixed term employees.
Share of women in STEM-related positions 1) 2024 2023 2022
Women 28% 22% 23%
1) STEM stands for science, technology, engineering and mathematics workers, here classified as EQT Tech and Motherbrain. Headcount at the end of the period.
The percentage of employees (headcount) and breakdowns by gender and by
country for countries in which EQT AB Group has 50 or more employees repre -
senting at least 10% of its total number of employees
2024
United States
of America Sweden
United
Kingdom
Women 39% 51% 50%
Men 59% 48% 48%
Not disclosed 2% 1% 2%
Total employees 100% 100% 100%
Employees at the end of the period, employees on payroll, full time and fixed term employees. For more information on the average number of employees per country,
please refer to Note 7 in the financial statements.
The percentage of employees (headcount) by permanent
employees and temporary employees 1, broken down by gender
2024
Women Men Not disclosed Total
Number of employees 46% 53% 1% 1,960
Number of permanent employees 45% 54% 1% 1,937
Number of temporary employees 87% 13% 23
1) Temporary employee: Employee on a fixed term contract with EQT.
Employees at the end of the period.
The total number of employees (headcount) who have left EQT
AB Group and the rate of employee turnover (%) by gender and
age group and new hires 2024 2023 20221)
Employee turnover (%) Gender/Age group
Women 44% 46% 61%
Men 56% 54% 39%
Not disclosed
Under 30 years 19% 29% 24%
30-50 years 64% 60% 66%
Over 50 years 17% 11% 10%
Total turnover 241 13% 243 14% 132 10%
New hires (%) Women 48% 50% 48%
Men 51% 50% 52%
Not disclosed 1%
Under 30 years 37% 43% 45%
30-50 years 59% 49% 51%
Over 50 years 4% 8% 4%
Total new hires 351 328 486
1) Excluding EQT Private Capital Asia
Employees at the end of the period, employees on payroll, full time and fixed term employees.
===== SIDA 146 =====
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
146
Own workforce
DIVERSITY METRICS EQT AB GROUP
The distribution of employees by age group in numbers (head -
count) and percentage 2024 2023 2022
Total 1,960 1,829 1,731
Under 30 years old 20% 22% 31%
30-50 years old 70% 66% 59%
Over 50 years old 10% 12% 10%
Employees at the end of the period, employees on payroll, full time and fixed term employees.
TRAINING AND SKILLS DEVELOPMENT
The percentage of employees that participated
in regular performance and career development
reviews 2024
Women 97%
Men 97%
Not disclosed 96%
Comment: 1,827 employees were included in the performance reviews. This was
based on the following criteria: permanent employees, hired prior to September
1th 2024, who are not under notice. The definition of the percentage of employees
that participated in regular performance and career development reviews is the
employees who received a performance rating during the annual performance
review process.
The average number of training hours per employee
(headcount) 2024
Average training hours 9
Average educational cost in Euro 2,219
HEALTH AND SAFETY
Health and safety 2024
Percentage of EQT AB Group employees covered by
health and safety management system (headcount) 1) 88%
1) Employees in EQT AB Group at the end of the period. Employees in EQT Real
Estate US and EU offices are not covered due to current organizational
structure.
WORK-LIFE BALANCE
Work-life balance metrics 2024
Percentage of employees entitled to take
family-related leave 100%
The percentage of entitled employees that took
family-related leave, by gender 1)
Women 11%
Men 9%
Not disclosed 5%
1) Percentage of leave utilization (by gender)=(Total number of eligible employees
(by gender)/Number of employees who took leave (by gender))×100
COMPENSATION
Pay gap and
total remuneration (%) 2024 2023 2022
Gender pay gap men to women 1) 47% 45% 39%
Remuneration ratio 2) 35:1
1) The difference of average pay levels between female and male employees,
expressed as percentage of the average pay level of male employees.
Methodology: The gender pay include all employees’ gross hourly pay level
(including all cash compensation during the year) and is calculated as:
(Average gross hourly pay level of male employees
− average gross hourly pay level of female employees)
×100
Average gross hourly pay level of male employees
2) The annual total remuneration ratio of the highest paid individual to the median
annual total remuneration for all employees (excluding the highest-paid
individual).
===== SIDA 147 =====
#00#3.4
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
Workers in the value chain
148 Workers in the value chain
148 — Equal treatment and opportunities for all
148 — Working conditions and employee engagement
148 — Interaction with strategy and business model
149 Policies and guidelines
149 — EQT Responsible Investment & Ownership Policy
149 Processes for engaging with value chain workers
149 — Engagement as part of investment advisory services
149 — Employee engagement in the portfolio companies
150 Processes to remediate negative impacts and channels
to raise concerns
150 — Responsible investment process
150 — Responsible ownership
150 Actions
150 — Equal treatment and opportunities
150 — Working conditions and employee engagement
151 Ambitions
===== SIDA 148 =====
148
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
Workers in the value chain
Workers in the value
chain
EQT funds’ portfolio companies employ in
aggregate around 650,000 people across
the globe. With this comes a responsibility
and possibility to support good and
equitable business practices as part of EQT’s
value-creation efforts.
EQUAL TREATMENT AND OPPORTUNITIES FOR ALL
Through EQT’s active ownership approach, EQT funds
can contribute at scale to Equal treatment and oppor -
tunities for all in the investments, starting from the
appointment of the Board of Directors, and promoting
including and equal growth in the operations through
awareness building, initiatives and tools. With a belief
that diversity of thought drives performance and could
lead to innovation and better decision-making there
can be opportunities linked to higher-performing
companies.
WORKING CONDITIONS AND EMPLOYEE
ENGAGEMENT
EQT funds can contribute to the setting of sound
working conditions and encourage the use of employee
engagement in the EQT funds’ investments. In some
regions and sectors where the EQT funds invest, there
are higher exposures of working condition violations
such as within health and safety, which if materialized
can have a negative impact on people. The negative
impacts are neither widespread or systemic nor related
to individual incidents, but relate to the potential
negative impacts that may arise from working condition
violations.
INTERACTION WITH STRATEGY
AND BUSINESS MODEL
EQT AB Group’s strategy and value creation approach
extends to the EQT funds’ investments. The strategy is
built on EQT’s set of long-term aspirations for driving
sustainable transformation including equitable business
practices and the results of the double materiality
assessment where Equal treatment and opportunities
for all and Working conditions and employee engage -
ment were considered material for EQT funds.
Health and safety is a critical focus for many of
EQT’s portfolio companies, particularly those operating
in sectors such as Healthcare, Industrials, Energy
Transition, and Real Estate. Recognizing that incidents
are inherently more likely in these sectors, EQT collabo -
rates closely with the portfolio companies to promote
and support the implementation of safe practices.
Activities that contribute to EQT’s positive impact on
social areas are key topics such as diversity of thought
and composing high-performing teams. EQT also
collaborates with portfolio companies to co-develop
guidelines, tools, and playbooks within these themes.
Additionally, efforts are made to improve employees’
health and safety, adhere to international conventions
on human rights, and encourage the implementation of
employee surveys, among other examples. For more
information, please see the sections Processes for
engaging with value chain workers and Actions.
1) EQT’s value chain consists of suppliers, business partners and employees within
EQT funds’ portfolio companies. However the identified material sustainability
matters refer to employees within EQT funds’ portfolio companies which will be
covered in this section.
Material topics Value
chain
Workers
in the
value
chain
Equal treatement and
opportunities for all
Gender equality and equal
pay for work of equal value
Measures against violence
and harassment in the
workplace
Diversity
EQT funds
Working conditions and
employee engagement
Working conditions
Employee engagement
EQT funds
This section covers the approach to workers in
the value chain1) and how EQT aims to support
equal rights and opportunities.
Material topics related to workers in the value chain
===== SIDA 149 =====
149
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
Workers in the value chain
EQT has adopted the below policies1) to address Equal
treatment and opportunities and Working conditions
and employee engagement. In addition to the policies
below, EQT has a Business Partner Code of Conduct
covering suppliers and business partners to EQT AB
Group and EQT Real Estate has a Vendor Code of
Conduct. For more information regarding these policies
and how EQT monitors governing documents, please
see the section Business conduct.
EQT RESPONSIBLE INVESTMENT &
OWNERSHIP POLICY
The Responsible Investment and Ownership (RI&O)
Policy establishes the framework for how EQT inte -
grates sustainability across the entire investment cycle.
As stipulated in the policy, EQT aims to ensure that EQT
funds’ investments engage in positive ways with each of
their key stakeholders, including their workers. For more
information regarding the RI&O Policy, please see the
section Business conduct.
Human rights policy commitments
EQT’s sustainability standards, as described in the RI&O
Policy, include expectations on human and labor rights
aligned with international standards and in accordance
with local regulations. This includes, respecting employ -
ees’ and contractors’ rights to decent working condi -
tions, including minimum wages, working hours, health
and safety and right to collective bargaining.
The EQT Business Partner Code of Conduct states
EQT’s expectations that Business Partners shall elimi -
Policies and guidelines
nate all forms of forced labor and child labor and
demonstrate their commitment in respecting human
rights and labor laws.
As an additional precaution, EQT funds’ portfolio
companies are regularly screened using an external
screening tool to monitor sustainability incidents in the
portfolio, which uses the United Nations Global Compact
(UNGC) principles to identify incidents related to human
rights. To promote transparency, EQT encourages
commitment to the UNGC and regularly monitors EQT
funds’ portfolio companies’ adherence to their principles
as well as their formal signatoryship. The RI&O policy
also states that EQT aims to improve employee health
and safety in EQT funds’ portfolio companies, including
minimizing work related injuries and strengthening
well-being, such as increased employee resilience and
engagement. For more information regarding engage-
ment, please see the section Processes for engaging with
value chain workers.
EQT Real Estate
EQT Real Estate maintains their own individual sustain -
ability policy, which is aligned with the RI&O policy and
reflects the unique factors applicable to its investment
strategy. EQT Real Estate integrates sustainability
factors into all real estate investments, reinforcing EQT’s
mission to future-proof assets. EQT Real Estate
acknowledges the significant impact the built environ -
ment has on people, local communities, and society,
and is committed to positively engaging with these key
stakeholders. For more information about scope and
owner of the policy, please see the section Business
conduct.
1) See website for more information regarding scope and content:
https://eqtgroup.com/about/sustainability
Processes for engaging
with value chain workers
The board of directors of the portfolio companies, in
which the EQT funds invest, is expected to be responsi -
ble for defining a sustainability strategy and relevant
policies. The portfolio company’s CEO and manage -
ment team are also expected to be responsible for
executing the strategy and running the daily operations
of the company according to the policies approved by
the board of directors. Hence, EQT does not have a
specific process by which it is able to engage with all
employees across all portfolio companies, but EQT
actively engages through various forums and promotes
strong policies, processes, and good governance.
ENGAGEMENT AS PART OF INVESTMENT
ADVISORY SERVICES
EQT’s ownership model enables engagement as part of
its investment advisory services, varying by the level of
ownership (majority or minority).
TROIKA forum
The TROIKA forum consists of the portfolio company’s
Chairperson, a responsible advisory partner at EQT and
the portfolio company’s CEO. The TROIKA is a sparring
partner to the CEO and keeps EQT well-informed of the
performance in the portfolio company.
Sustainability champion
To ensure accountability in the highest decision making
body, EQT encourages the portfolio companies to
appoint board sustainability champions, or in some
cases, implementation of Sustainability Committees.
EQT Network Forums
EQT enables direct engagement with Advisors from the
EQT Network, who sit on the boards of the EQT funds’
portfolio companies or act as advisors throughout the
investment process. For more information, please see
the section Interests and views of stakeholders.
EMPLOYEE ENGAGEMENT IN
THE PORTFOLIO COMPANIES
Each portfolio company remains operationally respon -
sible, with EQT engagement primarily occurring
through its board and management. EQT supports and
encourages the use of employee engagement surveys
within portfolio companies to promote a culture of
continuous improvement and active involvement.
===== SIDA 150 =====
150
#01 This is EQT #02 Financial statements #03 Sustainability notes #04 Corporate governance #05 Additional information
Workers in the value chain
Processes to remediate
negative impacts and
channels to raise concerns
In some regions and sectors where EQT funds’ invest -
ments are active there could be exposures to working
condition violations such as within health & safety. To
remediate negative impacts, EQT funds have processes
to identify exposures during investment screening and
due diligence and also as an active and responsible
owner.
RESPONSIBLE INVESTMENT PROCESS
The EQT investment advisory teams are responsible for
ensuring that social aspects are assessed and executed
during investment screening and due diligence, with
performance continuously monitored throughout the
ownership period.
RESPONSIBLE OWNERSHIP
In line with the governance model, the portfolio
companies’ boards set and monitor processes for
engaging with their employees, including appropriate
processes for raising concerns. EQT promotes the
implementation of employee engagement surveys
within portfolio companies as a tool for measuring
continued development and employee health.
Screening
On an ongoing basis, portfolio companies are screened
for involvement in social-related adverse media
coverage, to monitor inter alia social and employee-re -
lated issues. An identified incident is followed up by the
EQT risk management function with the respective
investment advisory teams involved, if deemed material
and relevant. For more information regarding the
reputational incident monitoring process, please see
the section Business conduct.
Whistleblowing
EQT fosters an open and honest culture. EQT has made
available an anonymous whistleblowing channel both
internally on the intranet and externally on its website.
For more information, please see the section Business
conduct.
Actions
Active ownership is manifested in direct engagements
with portfolio companies to support the implementation
of practices around Equal treatment and opportunities,
and Working conditions and employee engagement. This
involves providing targeted training to key personnel,
equipping them with the tools and knowledge necessary
to achieve these ambitions. The effectiveness of these
actions is tracked and monitored through EQT’s opera-
tional sustainability KPIs.
EQUAL TREATMENT AND OPPORTUNITIES
In its polices, EQT promotes Equal treatment and oppor-
tunities with a zero-tolerance policy against any form of
discrimination and harassment. Throughout the reporting
period, EQT have fostered greater awareness around
these topics, such as:
— EQT network forums: These included training and
support sessions focused on diversity and composing
high-performing teams.
— Co-development of resources: EQT has collaborated
with portfolio companies to co-develop a number of
guides, tools, and playbooks to support portfolio
companies in how to better leverage diversity of
thought, compose high-performing teams, and create
an inclusive culture.
WORKING CONDITIONS AND EMPLOYEE
ENGAGEMENT
EQT aims to ensure that EQT funds’ investments seek
positive involvement with stakeholders, such as employ-
ees, customers, tenants, suppliers, and the communities
in which the investments operate to contribute to deliver
value to society and build stakeholder trust. As applica-
ble, below are examples of areas supported:
— Improve employees’ health and safety: For instance
minimizing work related injuries and fatalities, and
improving wellbeing, such as increased employee
resilience and engagement. In addition, the EQT funds
have supported tenant and resident health, wellbeing
and productivity in real estate management.
— Adhere to international conventions on human rights:
Aligning to international standards on human rights,
such as UN Global Compact principles, throughout
activities, operations, and stakeholder relationships
internally and externally. This includes, respecting
employees’ and contractors’ rights to decent working
conditions, including minimum wages, working hours,
health and safety and right to collective bargaining.
— Implement employee surveys: Encourage portfolio
companies to implement employee engagement
surveys to foster a culture of continuous improvement
and active participation among employees.
— Local community support: EQT Real Estate identifies
and applies methods and tools to understand the
varied benefits to the local community (such as job
creation) that can be delivered and enhanced by EQT
Real Estate’s real estate developments and invest-
ments. Furthermore, EQT Real Estate aims to create
new residential communities to improve availability of
housing and tackle affordability constraints in the
context of the local area and intended market.
— Engage with suppliers and partners: EQT Real Estate
engages with suppliers and partners throughout
construction and property management supply chains
to encourage ethical and sustainable business
practices, as codified in a Supplier Code of Conduct,
including strengthening EQT Real Estate’s approach to
tendering and to auditing with regards to supplier
performance on human rights and labor rights.
===== SIDA 151 =====