FULLTEXT DEL 3 AV 4
Årsredovisning 2025
EQT faces a variety of risks and uncertainties, which
could materially affect its operations, reputation, or
financial position. Effective oversight and management
of risks are essential for EQT to achieve its strategic
objectives. EQT’s ability to generate superior risk-
adjusted returns for its funds’ investors requires a full
understanding of investment risks and opportunities as
well as a disciplined approach to manage those
throughout the fund life cycle.
EQT’s risk appetite is reviewed by the Risk Commit -
tee1) and covers the principal risks that the Group is
facing. Twice a year the risk team reviews the list and
ranking of risks using a likelihood and impact frame -
work and decides whether any new risks should be
incorporated into the Group’s risk map. These include
risks that would threaten the company’s performance
or reputation, as well as those with a higher likelihood
and greater impact on strategic objectives. The Risk
Committee reviews and validates any changes in risk
ratings. Risks with higher ratings are prioritized through
extensive monitoring and thematic reviews.
In addition, the risk team continuously monitors and
assesses emerging risks and their potential impact on
EQT’s strategic objectives.
1) A committee of senior managers responsible for discussing risk matters and reviewing EQT’s risk management framework on behalf of the Executive Committee.
2) EQT’s sustainability risks deemed material in accordance with EQT’s double materiality assessment are disclosed as part of the Sustainability notes.
Risk type EQT’s principal risks2)
External risks
Macro and market risk
Operational & financial disruptions related to adverse events
Strategic risks
Fund performance risk
Fundraising risk
Challenges in attracting, retaining and managing talent
Unsuccessful execution of new initiatives
Operational & Compliance risks
Failure to future-proof the operating platform
Regulatory & compliance risks
Financial risks Market, credit and liquidity risks
Emerging risks
Accelerating shift towards a multipolar world
Threats posed by emerging technology
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External risks
Macro & market risk
Risks derived from a variety of economic factors and market volatility that can impact portfolio performance, valuations, and
investment outcomes.
Potential impact:
— Valuation uncertainties resulting in slower investment
and/or exit pace
— Performance or financial issues in portfolio companies
— Tightened financing conditions for new deals
— IPO markets dislocation limiting potential exit routes,
leading to longer holding periods
— Carried interest postponed or not achieved
— Extended fundraising timelines
2025 & outlook
2025 has been marked by elevated macro and market
uncertainty, primarily driven by US trade policies. Uncer -
tainty around the Federal Reserve’s policy path, tariffs and
broader geopolitical tensions also weighed on markets in
the first half of the year, contributing to a temporary slow -
down in deal activity. Despite these headwinds, EQT
remained resilient, supported by its diversified global
platform and thematic investments in structurally growing
sectors. As market conditions improved, the firm leveraged
its scale and local expertise to capture opportunities and
deliver strong fund exits of EUR 19 billion globally during the
year.
Macro and political uncertainty remain elevated, par -
ticularly in the US, amid ongoing tariff negotiations and
sticky inflation, while geopolitical escalations in the Middle
East may contribute to volatility in global energy markets,
potentially reinforcing inflationary pressures, increasing
uncertainty around monetary policy trajectories and
weighing on global growth outlooks.
Concerns have also emerged around the private credit
market and AI-related valuations. Nevertheless, EQT
remains well positioned to capture opportunities driven by
investors’ renewed focus on diversification and global
deployment.
Risk management & mitigation
EQT’s thematic investment approach is based on investing in
companies and assets with strong market positions in
resilient sectors, benefiting from long-term structural trends
and thus being less correlated with the economic cycle.
EQT maintains a disciplined approach to leverage and
has strong relationships with banks and private credit
providers through its dedicated Global Capital Markets
team, which secures favorable financing structures, with the
majority of portfolio debt covenant-lite and maturing in
2028 or beyond. The team ensures a robust liquidity and
maturity profile across the platform through ongoing
oversight of portfolio company financing.
EQT also monitors broader macro and market develop -
ments, including trends in credit and financing conditions,
and continuously assesses potential implications for portfolio
companies. In buyout strategies, the EQT governance model
and control ownership enable close collaboration with
portfolio companies to identify emerging risks, evaluate
potential impacts, and implement mitigating measures
where needed.
Finally, EQT’s value creation approach mitigates macro -
economic risks by prioritizing operational improvements
with a strong emphasis on driving sales and earnings
growth across the portfolio.
External risks
Operational & financial disruptions related to adverse events
Interruptions in business activities and financial performance caused by unforeseen external factors such as natural disasters,
geopolitical conflicts, policy actions, pandemics, regulatory changes, supply chain disruptions or cybersecurity incidents and
technology failures.
Potential impact:
— Damage to EQT’s reputation
— Unforeseen financial consequences for EQT or the EQT
funds’ investments
— Performance or financial issues in portfolio companies
— Operational disruptions impacting EQT’s and/or portfolio
companies’ ability to run its day-to-day operations
— Loss of sensitive financial, personal, or proprietary data
leading to damage to EQT’s brand
2025 & outlook
As EQT’s global footprint continues to expand, the firm is
increasingly exposed to complex geopolitical dynamics and
a rapidly evolving cyber threat landscape. Throughout the
year, EQT has worked closely with portfolio companies to
assess potential impacts and strengthen preparedness
across regions and sectors, particularly amid ongoing tariff
negotiations and heightened cyber threats.
The use of AI by threat actors is intensifying, with
increasingly sophisticated and automated cyberattacks
targeting organizations and their supply chains. This
underscores the importance of digital resilience, stronger
vendor oversight and continuous monitoring of digital
ecosystems to protect both EQT and its portfolio companies
from operational disruptions and data loss.
Risk management & mitigation
In response to the evolving geopolitical and cyber risk
environment, EQT continues to review the adequacy and
resilience of its operations, technology infrastructure,
cybersecurity capabilities and supply chain as the business
grows. Its robust incident and crisis management framework
enables swift mobilization of relevant stakeholders. EQT also
collaborates with specialist risk advisors, both proactively
and during crises, to strengthen crisis management and
operational resilience.
At the firm level, EQT continuously defines and imple -
ments leading cybersecurity solutions to protect its digital
environment and data assets from both immediate and
long-term risks associated with emerging technologies. EQT
operates a threat detection and incident response program,
complemented by regular cybersecurity training and
phishing simulations to raise awareness and mitigate risks.
Through established threat intelligence processes, emerging
vulnerabilities and risks are monitored and reported quar -
terly to the Information Security Steering Committee, with
summaries provided to the Audit Committee and the Board.
A designated board member oversees the Group’s informa -
tion security strategy and meets with EQT’s CISO twice a
year.
To mitigate cybersecurity risks across the portfolio,
oversight and coordination of operational and cybersecurity
risks are led by EQT’s Cyber Center of Excellence (CCoE).
The team oversees portfolio companies’ cybersecurity and
technology-risk management, ensuring consistent resilience
and governance standards across EQT’s global portfolio.
More broadly, portfolio resilience is supported by EQT’s
diversified investment base and local-with-local approach.
In buyout strategies, the EQT governance model enables
close collaboration with portfolio companies to assess
geopolitical, operational and cyber risks, support prepared -
ness measures and manage crises proactively.
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Strategic risks
Fund performance risk
Risk of the fund not meeting its overall performance objectives, benchmarks, or investor expectations.
Potential impact
— Reduced carried interest and investment income
received by EQT
— Reduced ability to raise future funds
— Damage to EQT’s brand, reputation, and long-term
prospects
2025 & outlook
Despite macro and political uncertainty, EQT maintained a
disciplined focus on executing its exit agenda and returning
liquidity to clients. Over the past 12 months, the firm realized
EUR 19 billion of fund exits globally, while investment activity
remained healthy. EQT’s global diversification and thematic
investment approach continued to drive alpha across
strategies, with exits delivering strong returns for clients and
reinforcing the firm’s ability to balance long-term value
creation with liquidity generation.
While fund returns were impacted by a weaker US dollar
in the first half of the year, all Key funds continued to per -
form On or Above plan. EQT has a young portfolio that is
thematically invested, with most assets held for only a few
years. The active exit agenda during the year has helped
de-risk the portfolio.
Similarly, within Real Estate, EQT continued to invest
selectively and maintained a thematic investment approach,
with robust performance across a relatively young portfolio.
Risk management & mitigation
As part of EQT’s active ownership model, the EQT Value
Creation Playbook is a key driver of fund performance,
fostering growth through digitalization, AI, sustainability,
and operational excellence. EQT’s governance model
enables EQT to support the execution of business plans
within portfolio companies. EQT’s local-with-local
approach, spanning more than 25 countries and supported
by global sector teams, ensures a consistent and perfor -
mance-focused strategy.
Portfolio company performance and sustainability
metrics are continuously monitored through the Portfolio
Performance Review (PPR), which tracks the progress of
each investment, identifies opportunities and warning signs
early, and provides actionable recommendations. Concen -
tration limits at investment level further mitigate risk by
ensuring no single underperforming asset materially
impacts a fund. In addition, EQT performs portfolio re-un -
derwriting periodically, reassessing various factors to
proactively prepare its portfolio for potential macroeco -
nomic challenges.
At senior management level, the Global Investment
Forum (GIF) evaluates overall performance and exposures
across all EQT funds, promoting consistency in investment
approaches and disciplined performance management. To
strengthen oversight of exits and liquidity, the Exit and
Liquidity Committee systematically reviews exit priorities
and executes liquidity strategies through various methods,
ensuring a thoughtful and client-focused approach to liquid -
ity and solutions. EQT assumes exits at long-term average
multiples to ensure a disciplined and consistent approach to
valuation and exit planning.
AI risk and opportunity assessment is embedded at the
earliest stages of every investment decision. EQT invests in
businesses with defensible market positions and strong
domain expertise that are well-placed to adapt to or benefit
from technological change, and ongoing disruption risks are
monitored continuously through regular AI deep dives at
portfolio company level.
Strategic risks
Fundraising risk
Risk of not achieving fundraising targets due to uncertainties around investor commitments, and market conditions.
Potential impact
— Reduced revenues due to lower FAUM and management
fees, and over time, realized carry
— Loss of market share
— Potential pressure on management fees
2025 & outlook
The fundraising environment continued to face challenges in
2025, as low levels of realizations across the private markets
industry over recent years have reduced many investors’
ability to commit to new funds. As a result, fundraising
timelines have lengthened, particularly for newer and
smaller strategies.
Despite this backdrop, EQT continues to see healthy
fundraising momentum, supported by strong performance,
differentiated exit capabilities and consistently high DPIs
across its Key funds. During the year, Infrastructure VI
reached its hard cap and closed at EUR 21.5 billion. BPEA IX
is expected to secure commitments corresponding to the
hard cap of USD 14.5bn in the first quarter of 2026. EQT XI
set its hard cap at EUR 24bn, EUR 1bn above its target fund
size of EUR 23bn.
EQT’s global scale and diversified platform position the
firm to benefit from investors’ ongoing portfolio rebalancing.
As investors consolidate their relationships with private
markets firms, EQT continues to be a trusted long-term part -
ner across private equity, infrastructure, and real estate. In
addition, Private Wealth is becoming an increasingly impor -
tant source of capital, with EQT adding dedicated resources
and expanding its distribution capabilities in recent years to
capture this opportunity.
Risk management & mitigation
EQT’s focus on achieving top quartile fund performance and
returning cash to investors are critical drivers of its fundrais -
ing success.
EQT’s strong co-investment platform strengthens existing
client relationships and positions EQT as a preferred partner
for new investors, enhancing its ability to attract additional
capital and support future fundraising success. With a global
client base of more than 1,400 active investors, EQT lever -
ages its extensive network to drive scale and build long-term
partnerships.
While EQT does not control external macroeconomic
factors, EQT’s effective fundraising processes help minimize
the risk of not meeting fundraising targets.
To ensure adequate resources are allocated to fundrais -
ing projects, the Capital Raising team maintains ongoing
dialogues with the business lines and updates the fundrais -
ing plans accordingly.
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Strategic risks
Challenges in attracting, retaining, and managing talent
Risk of staffing challenges, including employee turnover, skill gaps, succession planning, and the potential impact of personnel
issues on operational performance and strategic goals.
Potential impact
— Insufficient resources to meet strategic objectives
— Loss of talent, affecting the success of investment and
fundraising activities
2025 & outlook
Attracting and fostering a diverse, world-class EQT team
and network is essential for long-term success, with a
motivated and well-supported workforce driving productiv -
ity, fostering innovation, and ensuring overall success. This is
evident by a low regrettable turnover across the organiza -
tion.
During 2025, significant focus was placed on creating an
even more streamlined and high-performing organization,
ensuring EQT remains agile, efficient and well-positioned to
attract and retain top talent while participating in the ongo-
ing consolidation of the private market industry.
Risk management & mitigation
EQT’s performance and proven track record serve as a key
risk mitigant, reinforcing the firm’s ability to attract and
retain top talent.
The firm applies structured, and data-driven recruitment
processes, competitive and long-term compensation, and
development opportunities, for example, through the EQT
Academy.
An annual succession planning process is conducted to
assess key personnel, identify successors, and ensure
leadership strength for the continued success of the busi -
ness.
The equity-linked incentive program ensures alignment
between employee performance and the wider EQT.
At EQT, inclusion is embedded into our talent strategy,
decision-making, and culture to unlock better collaboration,
stronger innovation, and superior investment outcomes. EQT
fosters inclusion through fair talent management processes
(e.g., recruiting, performance management) as well as
through its affiliation networks like DiverseMinds, EQT Pride
and EQT Win.
Regular engagement surveys provide insights into
workplace dynamics and employee well-being, enabling
EQT to address concerns, enhance employee satisfaction,
and mitigate risks of attrition or disengagement.
Further details are described in #3.3 in the Sustainability
notes.
Strategic risks
Unsuccessful execution of new initiatives
Failure to implement or scale new projects or strategies effectively and in line with the firm’s strategic and financial
objectives.
Potential impact
— Failure to capitalize on market opportunities, which
impacts EQT’s long-term competitiveness, market
position, and stakeholder confidence
— Failure to diversify revenue streams, increasing reliance
on flagship funds
— Balance sheet risk and financial losses for EQT if failing
to execute new strategies
2025 & outlook
Building the most attractive, scaled client-centric platform in
the private markets industry remains a key strategic priority
for EQT.
While newer strategies and evergreen products may take
time to scale, their continued success depends on effective
execution, sustained investor demand, and strong distribu -
tion partnerships.
The pending signed acquisition of Coller Capital 1) will
further expand EQT’s platform into secondaries, adding
integration and execution complexity as the firm scales
across multiple strategies simultaneously.
In 2025, the firm expanded its evergreen product offer -
ing to five products, with inflows of approximately EUR 2bn.
Scaling EQT’s evergreen products is an important growth
driver for EQT’s long-term profitability and platform diversi -
fication.
Risk management & mitigation
EQT’s strong balance sheet is a key enabler for executing on
new and recently launched strategies. In recent years,
significant efforts have been made to strengthen the
evergreen platform, including targeted hiring across
functions and regions.
To support its fundraising efforts, EQT is actively expand -
ing its distribution network and enhancing branding initia -
tives to increase market visibility and reach.
Through its governance framework, EQT identifies
challenges at an early stage and regularly reports progress
to the Executive Committee and the Board.
With the Coller Capital acquisition expected to close in
the third quarter of 2026, EQT draws on a strong playbook
of successful integrations following recent acquisitions,
including BPEA, Exeter and LSP, to mitigate integration risk.
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Operational & compliance risks
Failure to future-proof the operating platform
Risk of operational failures or inefficiencies due to the inability to adapt or scale systems, processes, and internal infrastructure
effectively in line with EQT’s growth ambitions.
Potential impact
— Operational failures leading to reputational damage or
non-compliance
— Higher costs of doing business
2025 & outlook
In pursuing its growth ambitions, EQT must constantly adapt
its operational processes to improve the efficiency and
scalability of its operating platform.
As part of its day-to-day operations, EQT processes large
amounts of transactions and data, making it vulnerable to
errors or delays.
The continued scaling of evergreen products, including
expanded distribution in the US private wealth market,
increases operational and regulatory complexity.
Successfully scaling the evergreen and US platforms will
require EQT to maintain robust controls while enhancing
operational efficiency to support a growing client base,
ensuring consistent service quality, regulatory compliance,
and operational resilience across its expanding global
footprint.
The rapid advancement of AI presents both an opportu-
nity and a challenge for EQT’s internal operations, requiring
the organisation to continuously build AI literacy across its
workforce and integrate AI-driven tools and processes to
maintain operational efficiency and competitiveness, while
managing the risks associated with adoption at scale.
Risk management & mitigation
All functions within EQT, particularly the Fund Operations
team and Central Functions’ specialist teams, are responsi -
ble for developing and maintaining robust policies & proce -
dures to support EQT’s operations. The internal control
framework is reviewed annually to identify and remedy
control issues. In addition, EQT has prioritized enhancing the
efficiency and scalability of its operating platform as a
strategic focus, managed through its program management
process under the oversight of the Operating Committee.
To support the continued growth of evergreen products,
including expanded distribution in the US market, EQT has
reinforced its capabilities and resources in key areas. These
targeted hires are part of a broader strategy to build
specialized expertise across regions, support the unique
needs of private wealth clients, and navigate complex
regulatory landscapes.
To support the scalability of its operating platform, EQT
has made AI a strategic priority across its internal opera -
tions, investing in AI literacy and capabilities across the
organisation. This includes collaboration with leading AI
platforms to develop AI-powered solutions across key
internal functions, an example being the development of an
AI-powered legal platform together with Harvey.
Operational & compliance risks
Regulatory & compliance risks
Failure to adhere to applicable laws, regulations, supervisory expectations, industry standards or internal policies.
Potential impact
— Financial costs of regulatory fines, remediation require -
ments or sanctions, and damage to EQT’s brand, and
long-term prospects
— Increased compliance costs and supervisory scrutiny,
which, in turn, could reduce the attractiveness of certain
jurisdictions or growth initiatives
— Reputational damage and reduced investor confidence
2025 & outlook
As the private markets industry continues to expand and
become increasingly accessible to individual investors, EQT
anticipates heightened supervisory focus on investor
protection, transparency, product governance and market
conduct. EQT’s strategic initiative to scale its evergreen
platform represents the primary driver of increased regula -
tory exposure, as the firm continues to broaden its client
base and product offering across regions. Concurrently,
expansion into new jurisdictions and services introduces new
challenges in complying with regulatory requirements.
Risk management & mitigation
EQT has strengthened its Central Functions and specialist
teams globally over recent years to better support the
organisation in navigating an increasingly complex and
evolving regulatory landscape.
The firm operates a Regulatory Watch Model to ensure
that new regulatory initiatives and trends are identified and
assessed promptly, with actions implemented where
required.
EQT’s global compliance monitoring program supports
adherence to business ethics standards, regulatory require -
ments and internal policies, including the Code of Ethics, as
further described in #3.5 in the Sustainability notes.
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Financial risks
Market, credit and liquidity risks
Risk of financial loss or reduced earnings arising from market volatility, counterparty credit defaults, liquidity shortfalls or
potential tax liabilities resulting from regulatory reviews or differing interpretations of tax rules.
Potential impact
— Reduced earnings, if market fluctuations impact interest
rates, currency exchange rates or the valuation of EQT
AB Group’s investments
— Credit losses, in the event of a failure of a counterparty
— Financial losses if balance sheet investments are not
executed successfully
— Potential tax liabilities arising from regulatory reviews or
differing interpretations of historical tax treatment
2025 & outlook
EQT continues to leverage its balance sheet to drive growth
initiatives and execute on its long-term strategy. Over the
recent years, EQT has enhanced its financial flexibility by
increasing its sustainability-linked Revolving Credit Facility
and issued a number of sustainability-linked bonds.
In May 2025, EQT priced its inaugural USD-denominated
10-year bond, raising USD 500 million. The bond established
a presence in the USD bond market, diversified EQT’s
funding sources, and introduced USD financing into EQT’s
capital structure.
EQT’s interest rate risk is limited as the bonds have fixed
coupons, subject in some cases to sustainability-related
objectives. In 2024, S&P assigned an A- (Stable) credit rating
to EQT, complementing the existing rating from Fitch at the
same level.
Risk management & mitigation
The EQT AB Group uses risk mitigation tools, such as mini -
mum credit ratings, rigorous cash forecasting and liquidity
facilities. See more information under Note 18 in Financial
statements.
The Treasury team monitors and reports on those risk
exposures on a monthly basis.
EQT has implemented a robust governance and approval
process for balance sheet investments, which dependent on
the investment’s size and risk profile includes review and
approval by the Balance Sheet Committee (consisting of
senior leaders from relevant internal functions), Executive
Committee, CEO, Audit Committee and/or the Board.
Emerging risks
Accelerating shift towards a multipolar world
Risk of constrained investment and value creation opportunities driven by geopolitical tensions, protectionist policies, and
fragmented global markets, affecting fundraising, portfolio performance, and cross-border activities.
Potential impact
— Certain sectors and geographies, where EQT funds have
invested, become less attractive, which could make EQT
less competitive in raising funds over the long term
— Reduced performance of portfolio companies with
global supply chains
— Restrictions on certain deals in strategic sectors and
geographies may reduce exit options for the EQT funds
— May affect EQT’s ability to attract capital from investors
in certain countries or regions
The global landscape is becoming increasingly fragmented,
with geopolitical tensions, shifting trade dynamics, and
supply chain realignments accelerating the transition
toward a multipolar world. Tariffs, evolving national security
considerations, and new protectionist measures are already
reshaping global trade and investment flows, creating new
complexities for EQT and portfolio companies. Over time,
these trends could increase costs and operational risks,
while cybersecurity threats linked to geopolitical tensions
are expected to become more frequent and sophisticated.
These dynamics may lead to sustained complexities in
executing transactions across regions and pose ongoing
challenges for fundraising in affected markets. As investors
become more cautious about long-term stability and
cross-border exposure, EQT continues to adapt to evolving
geopolitical realities through its diversified platform and
local-with-local approach, ensuring the firm remains
resilient and agile in a rapidly changing global environment.
At the same time, shifts in global capital allocation are
creating new opportunities, with EQT well positioned to
benefit through its diversified platform and global scale.
Risk management & mitigation
Risk diversification across strategies and assets is a key
mitigation for managing this emerging risk. Overall perfor -
mance and exposures are regularly monitored by the Global
Investment Forum (GIF). In addition, EQT’s local-with-local
approach, supported by over 600 high-profile Industrial
Advisors within the EQT Network, supports portfolio compa -
nies in adjusting their strategies and operations to evolving
geopolitical challenges.
In buyout strategies, the EQT governance model enables
close collaboration with portfolio companies to assess
emerging geopolitical and operational risks, evaluate
potential impacts, and implement mitigating measures
where needed. Furthermore, all proposed investments
undergo a thorough due diligence and approval process,
during which key aspects of the transaction, company, and
industry outlook are carefully assessed and discussed.
In response to the increasingly complex geopolitical
landscape, EQT engages with geopolitical experts and risk
specialists to further strengthen its threat intelligence and
risk management approach. Finally, while fragmentation
introduces new challenges, the emergence of a multipolar
world also presents selective opportunities that can help
offset adverse impacts and drive long-term value creation.
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Emerging risks
Threats posed by emerging technologies
Risk that the acceleration of AI and other emerging technologies disrupts portfolio company business models and affects EQT’s
internal operations, while inadequate or irresponsible adoption creates additional regulatory, financial and reputational
exposure.
Potential impact
— Business model disruption and valuation compression as
AI reshapes competitive dynamics across sectors and
companies
— Failure in decision-making processes dependent on such
technologies, leading to regulatory, financial or reputa -
tional repercussions
— Competitive disadvantages and missed opportunities
caused by slow or inadequate adoption of AI
— Inappropriate use, exposure or handling of sensitive
financial, personal or proprietary data resulting from
inadequate AI governance
The rapid acceleration of AI is increasingly disrupting busi-
ness models and competitive dynamics across the EQT
portfolio, most visibly in technology and software, but
increasingly across all sectors, and could drive significant
valuation divergence between winners and losers. While AI
has the potential to drive productivity, unlock new forms of
growth, and fundamentally change how businesses operate,
portfolio companies that fail to adapt with speed and disci-
pline risk losing competitive advantage. The pace and
breadth of AI-driven change means that both EQT and its
portfolio companies must continuously assess and adapt to
evolving risks.
At the firm level, agentic AI presents both opportunities to
enhance efficiency and strengthen investment capabilities,
while introducing new challenges related to reliability, control
and accountability. This underscores the importance of robust
governance, transparency and human oversight to ensure
safe and responsible deployment across EQT’s operations.
Risk management & mitigation
Diversification is a core element of EQT’s risk management
approach in an environment characterized by rapid techno-
logical change and valuation dispersion. EQT’s platform spans
early-stage and high-growth technology investing as well as
investments in large, mature companies across a broad
range of industries and geographies. This breadth allows
EQT to manage concentration risk and reduce dependence
on any single technology, business model or outcome. The
private markets model is particularly well suited to periods of
disruption, as the absence of short-term earnings pressure,
combined with clear ownership and aligned governance,
allows EQT to support portfolio companies through transfor -
mation with patience and conviction.
Ahead of investing, EQT conducts an AI assessment on
each portfolio company as part of its sector-focused
approach, ensuring that technology-related risks and oppor -
tunities are identified early and considered in every invest -
ment decision. At the portfolio company level, the EQT Digital
team together with the investment advisory team continu -
ously monitors the impact of new technologies, supporting
portfolio companies in adapting their business models and
ways of working to remain competitive in increasingly digital
markets.
At the firm level, to address the growing importance of AI
and its associated risks, EQT has established dedicated
in-house AI expertise and developed an AI governance and
risk framework over the past year.
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EQT AB
Corp. id 556849-4180
The board and CEO assure that the Annual Report has
been prepared in accordance with generally accepted
accounting principles in Sweden and the consolidated
accounts have been prepared in accordance with
International Accounting Standards, stated in the
regulation of the European Parliament and the Council
of Ministers (EG) no 1606/2002 of 19 July 2002, concern -
ing the application of international accounting stand -
ards. The Annual Report and the consolidated accounts
give a true and fair view of the parent company as well
as of the EQT AB Group’s position and result. The Board
of directors’ report for the parent company and the EQT
AB Group gives a true and fair view of the parent
company’s and Group’s business development, position
and result. It also describes the major risks and uncer -
tainty factors facing the parent company and Group
companies.
Stockholm 22 March 2026
The annual report has been completed, approved, and signed
by all members 22 March 2026
The Annual Report and the consolidated accounts have
been approved for publication by the Board of directors
and the Chief Executive Officer o n 22 March 2026. The
consolidated income statement and balance sheet and
the parent company’s income statement and balance
sheet will be presented for adoption by the Annual
Shareholders’ Meeting on 12 May 2026.
Our audit report on the annual report and the consoli -
dated financial statements, and our assurance report
on the sustainability report, has been submitted on 22
March 2026
KPMG AB
Håkan Olsson Reising
Authorized public accountant
Marcus Wallenberg Margo Cook Brooks Entwistle
Richa Goswami Diony Lebot Gordon Orr Jacob Wallenberg Jr
Conni Jonsson
Chairperson
Per Franzén
CEO
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Signatures
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114
Auditor’s report
#01 This is EQT #02 Financial statements #03 Sustainability statement #04 Corporate governance #05 Additional information
Auditor’s report
REPORT ON THE ANNUAL ACCOUNTS AND
CONSOLIDATED ACCOUNTS
Opinions
We have audited the annual accounts and consolidated
accounts of EQT AB for the year 2025, except for the
sustainability report on pages 118-159. The annual
accounts and consolidated accounts of the company
are included on pages pages 57-113 and 118-159 in this
document.
In our opinion, the annual accounts have been
prepared in accordance with the Annual Accounts Act,
and present fairly, in all material respects, the financial
position of the parent company as of 31 December 2025
and its financial performance and cash flow for the
year then ended in accordance with the Annual
Accounts Act. The consolidated accounts have been
prepared in accordance with the Annual Accounts Act
and present fairly, in all material respects, the financial
position of the group as of 31 December 2025 and their
financial performance and cash flow for the year then
ended in accordance with IFRS Accounting Standards,
as adopted by the EU, and the Annual Accounts Act. Our
opinions do not cover the sustainability report on pages
118-159. The statutory administration report is consistent
with the other parts of the annual accounts and consoli -
dated accounts.
We therefore recommend that the general meeting
of shareholders adopts the income statement and
balance sheet for the parent company and the group.
Our opinions in this report on the the annual accounts
and consolidated accounts are consistent with the
content of the additional report that has been submitted
to the parent company’s audit committee in accordance
with the Audit Regulation (537/2014) Article 11.
Basis for Opinions
We conducted our audit in accordance with Interna -
tional Standards on Auditing (ISA) and 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.This includes that,
based on the best of our knowledge and belief, no
prohibited services referred to in the Audit Regulation
(537/2014) Article 5.1 have been provided to the audited
company or, where applicable, its parent company or
its controlled companies within the EU.
We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a
basis for our opinions.
Key Audit Matters
Key audit matters of the audit are those matters that, in
our professional judgment, were of most significance in
our audit of the annual accounts and consolidated
accounts of the current period. These matters were
addressed in the context of our audit of, and in forming
our opinion thereon, the annual accounts and consoli -
dated accounts as a whole, but we do not provide a
separate opinion on these matters.
To the general meeting of the shareholders of EQT AB,
corp. id 556849-4180
Carried interest
See disclosure 3, 5, 18, and accounting principles on page 69 in the annual account and consolidated accounts for
detailed information and description of the matter.
Description of key audit matter
As of 31 December 2025 the group reported carried
interest of EUR 2 897 million in the balance sheet and
income from remeasurement of carried interest of EUR
279 million in the income statement.
Carried interest is a share of returns that EQT AB
Group receives through its holdings in the Special
Limited Partners based on the performance of the
relevant fund and the development of the funds under -
lying investments. EQT AB Group is entitled to an
agreed share of accumulated returns exceeding agreed
thresholds over the life of each individual fund. The
underlying valuations, on which the carried interest is
based, are complex and include significant levels of
judgement
Response in the audit
Our audit procedures included, but were not limited to:
— We have reviewed the company´s model for calcula-
tion of carried interest and obtained an understand -
ing of the valuation process and key controls in this
process,
— We have assessed the development of the funds
underlying investments to conclude whether these
were performed in accordance with the prescribed
method,
— We tested that the methodology and consistency
applied in the valuation of the portfolio companies is
in accordance with the International Private Equity
and Venture Capital Valuation Guidelines,
— We assessed the relevance of multiples used against
market multiples from relevant transactions or
market data,
— We have involved internal valuations- and account -
ing specialists to assess the current unrealized fund
values and also to evaluate the accuracy of the
disclosures of carried interest in the annual accounts
— and consolidated accounts.
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Auditor’s report
#01 This is EQT #02 Financial statements #03 Sustainability statement #04 Corporate governance #05 Additional information
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 1-56, 118-159 and 176-185. 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 consoli -
dated accounts does not cover this other information
and we do not express any form of assurance conclu -
sion 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 mis -
stated.
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
guarantee 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 misstatement
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 appropri -
ate 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 circum -
stances, but not for the purpose of expressing an
opinion on the effectiveness of the company’s inter -
nal control.
— Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting esti -
mates 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 repre -
sent 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 commu -
nicate with them all relationships and other matters
that may reasonably be thought to bear on our inde -
pendence, and where applicable, measures that have
been taken to eliminate the threats or related safe -
guards.
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Auditor’s report
#01 This is EQT #02 Financial statements #03 Sustainability statement #04 Corporate governance #05 Additional information
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 impor -
tant 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 admin-
istration of the Board of Directors and the Managing
Director of EQT AB for the year 2025 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 com -
pany’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 com -
pany’s organization is designed so that the accounting,
management of assets and the company’s financial
affairs otherwise are controlled in a reassuring 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 com -
pany, 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 reason -
able 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 impor -
tance 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 the Board of Directors’ reasoned statement
and a selection of supporting evidence in order to be
able to assess whether the proposal is in accordance
with the Companies Act.
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Auditor’s report
#01 This is EQT #02 Financial statements #03 Sustainability statement #04 Corporate governance #05 Additional information
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 2025.
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’ respon -
sibility section. We are independent of EQT AB in
accordance with professional ethics for accountants in
Sweden and have otherwise fulfilled our ethical respon -
sibilities 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 per -
formed.
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 require -
ments.
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 assess -
ment, 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 examination also includes
an evaluation of the appropriateness and reasonable -
ness 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 share -
holders on the 27 May 2025. KPMG AB or auditors
operating at KPMG AB have been the company’s
auditor since 2012.
Stockholm 22 March 2026
KPMG AB
Håkan Olsson Reising
Authorized Public Accountant
===== SIDA 118 =====
#03
Sustainability statement
119 Sustainability statement
120 3.1 General disclosures
132 3.2 Climate change
141 3.3 Own workforce
149 3.4 Workers in the value chain
152 3.5 Business conduct
157 3.6 Responsible investment approach
for EQT funds
160 Auditor's limited assurance report
#01 This is EQT #02 Financial statements #04 Corporate governance #05 Additional information #03 Sustainability statement
===== SIDA 119 =====
About the sustainability statement
EQT AB’s Sustainability Statement for 2025 is the
statutory sustainability statement and is prepared
in accordance with the requirements of the EU
Corporate Sustainability Reporting Directive
(CSRD) and the European Sustainability Report -
ing Standards (ESRS) as implemented under
applicable Swedish law and in accordance with
the Annual Accounts Act.
EQT’s external auditor performs limited assur -
ance over the sustainability statement. The
limited assurance activities performed by the
external auditor are described in the Assurance
report.
EQT AB acknowledges that the scope and content
of its sustainability statement will adapt over
time, as reporting standards and market
practices continue to evolve.
#03 Sustainability statement
120 General disclosures
121 General information
121 Sustainability governance
124 Strategy
126 Disclosures on the materiality assessment
process
129 Disclosure requirements in ESRS covered in
the sustainability statement
132 Climate change
133 Transition plan for climate change mitigation
134 Strategy and business model resilience to
climate change
135 Policies and guidelines
136 Actions
137 Targets and performance
140 EU Taxonomy statement
141 Own workforce
143 Policies and guidelines
143 Processes for engaging with own workers
144 Processes to remediate negative impacts and
channels to raise concerns
145 Actions
147 Performance
149 Workers in the value chain
150 Policies and guidelines
150 Actions
151 Metrics
152 Business conduct
153 Policies and guidelines
155 Actions
156 Targets and performance
157 Responsible investment approach for
EQT funds
158 Strategy
158 Policies and guidelines
159 Actions
159 Metrics
160 Auditor's limited assurance report
Content
119
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===== SIDA 120 =====
General disclosures
# 0 3.1
121 General information
121 Reporting approach and scope
121 Sustainability Governance
121 Roles, responsibilities and expertise
122 — Composition of and sustainability expertise
in governing bodies
122 Sustainability information and matters
addressed by the Board, committees and
sustainability forums
122 Sustainability-related performance in incentive
schemes
123 Statement on due diligence
123 — Business model and due diligence in the
value chain
123 Risk management and internal controls over
sustainability reporting
124 Strategy
124 Strategy, business model and value chain
124 — Business model
124 — Value chain
124 — Sustainability approach
125 Interests and views of stakeholders
126 Material impacts, risks and opportunities and
their interaction with strategy and business
model
126 — Resilience and capacity to take advantage
of opportunities
126 — Financial effect and time frame
126 — Changes to the material impacts, risks and
opportunities compared to previous
reporting period
126 Disclosures on the materiality assessment
process
126 The double materiality assessment process
126 — Methodology
126 — Materiality scoring approach
127 — Threshold
127 — Decision-making, internal controls and risk
management
128 — List of material sustainability matters
129 Disclosure requirements in ESRS covered in
the sustainability statement
130 Datapoints derived from other EU legislation
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===== SIDA 121 =====
Sustainability is an integrated part of EQT AB
Group's strategy, with the overarching purpose of
creating long-term financial value.
This section provides an overview of EQT's
strategy, how it is underpinned by sustainability, and
the double materiality process that defines the scope
of EQT AB Group's sustainability statement.
General information
ESRS-2
Reporting approach and scope
BP-1, BP-2
EQT AB's sustainability statement for financial year
2025 is prepared in accordance with the ESRS. The
sustainability statement has been prepared on a
consolidated basis 1) and comprises EQT AB and its
direct and indirect subsidiaries, together referred to as
the "EQT AB Group". The scope is the same as for the
consolidated financial statements for EQT AB. The
sustainability statement covers material sustainability
matters in EQT AB Group’s value chain, as further
described in the section Value chain.
The double materiality assessment that determines
the scope of EQT AB Group's sustainability statement
considers risks to and opportunities for EQT as a
business, as well as the positive and negative impacts
associated with EQT AB Group's own operations and
value chain. Any policies, actions, metrics or targets
used to describe the management of the impacts
associated with EQT AB Group's own operations and
value chain should be understood in the context of EQT
AB's legal and regulatory obligations and EQT funds'
fiduciary duties to their investors.
EQT AB Group has applied certain phase-in
provisions where permitted under the ESRS. For more
information, please see the section Disclosure require -
ments in ESRS covered in the sustainability statement.
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 2025, none of EQT
AB's subsidiaries are subject to individual sustainability reporting obligations
according to CSRD.
Sustainability governance
EQT aims to ensure clear accountability
and transparency for EQT's own opera-
tions and EQT funds' investments in order
to drive sustainability outcomes to support
long-term performance.
Roles, responsibilities and expertise
GOV-1
EQT AB's Board has the ultimate responsibility for EQT
AB Group’s strategy, of which sustainability is an
integrated part. The Board reviewed the current
firm-wide strategy and objectives in December 2025.
The Board applies written rules of procedures, which
among other things set out the allocation of responsibil -
ities between the Board and its committees. The rules of
procedure are reviewed annually and adopted at the
inaugural Board meeting each year.
Illustration of high-level sustainability governance
EQT AB Board
Overall strategy, business and organization of the EQT AB Group
Business Lines
Business line specific sustainability or impact strategies. Portfolio
company/asset-specific sustainability value creation
Risk Committee
Global Client Solutions
Client engagement
around sustainability
Central Specialist Functions
Group-wide strategy
Sustainability reporting
Risk management processes
Audit Committee
Monitors financial and sustainability reporting
and the efficiency of internal controls
Remuneration Committee
Prepares the Board's decisions on remuneration
including sustainability-linked incentives
CEO and Executive Committee
Prepares and executes on decided strategy and the ongoing business
Sustainability Champion
Designated Board member appointed as point person for sustainability matters at EQT AB
Board level, providing regular sustainability updates and serving as liaison between the Board
and management on sustainability topics.
121
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General disclosures
===== SIDA 122 =====
The EQT AB Board monitors the firmwide strategy,
including the results from the double materiality
assessment, which is approved by the Board. The
Board has appointed a Sustainability Champion on the
Board, which provides regular sustainability updates
The CEO and Executive Committee are responsible for
implementing the strategy, and has delegated
day-to-day responsibility for sustainability matters
and the preparation of the double materiality
assessment to other functions with relevant expertise
internally. Depending on topic, different members of
the Executive Committee provide regular updates
regarding sustainability impacts, risks and opportuni -
ties to the Sustainability Champion, the Audit Commit -
tee and the Board, as appropriate.
The Audit Committee consists of board members of
EQT AB and monitors financial and sustainability
reporting, including the double materiality assessment,
and the efficiency of internal controls and risk manage -
ment.
The Remuneration Committee prepares the Board's
decisions on principles for remuneration, including
sustainability-related performance incentives, to the
extent applicable.
The Risk Committee annually reviews enterprise risk,
including applicable investment risk exposures, on behalf
of the Executive Committee, which is also presented to
the Audit Committee and the Board. For more informa-
tion 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 are embedded
sustainability experts across EQT's business lines and
functions.
EQT’s Group Finance team carries out the sustaina -
bility reporting activities required pursuant to the
Swedish Annual Accounts Act. The Head of Group
Finance reports to the CFO, who has a direct reporting
line to the CEO. The Risk, Regulatory & Compliance
team assesses risk management processes and reports
relevant risks to the Risk Committee and the Audit
Committee.
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-re -
lated expertise of the Board, members have received
regular upskilling through sustainability updates,
market insights, and e-learning trainings on specific
topics.
The Sustainability Champion receives additional
upskilling and insights through meetings with internal
and external experts. The internal experts include
sustainability specialists and sector-experts from the
investment advisory teams.
For more information regarding the composition
and expertise in the EQT AB Board and Executive
Committee, please see the Corporate Governance
Report, section The Board.
Sustainability information and matters addressed by
the Board, committees and sustainability Forums
GOV-2
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. The Board receives regular updates provided
by the Sustainability Champion or by other representa -
tives. Examples of topics presented to and deliberated
by the Board during 2025 include sustainability
highlights from the portfolio, updates on the EQT AB
Group strategy review 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 opportuni -
ties and their interaction with strategy and business
model.
The Global Head of Risk, Regulatory & Compliance
presented the annual risk, regulatory and compliance
report to the Board, Audit Committee and Executive
Committee, which included material sustainability
matters. The 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
documents.
Throughout the year, the Audit Committee received
regular updates on the implementation of the CSRD
and monitored sustainability reporting and preparation
of the sustainability statement, including the double
materiality assessment. The Remuneration Committee
and the Audit Committee have during the year, been
involved in preparing the Board's decisions on
sustainability-linked equity incentives for EQT AB
Group.
Sustainability-related performance in incentive
schemes
GOV-3
Sustainability is integrated in incentive schemes for
certain members of the Executive Committee, in equity
incentive programs and in variable cash remuneration.
The incentive programs' sustainability incentives are
primarily linked to EQT AB Group's portfolio coverage
GHG emissions target further described in section E1
Climate change, but for certain members the variable
cash remuneration is linked to other sustainability
objectives. Progress against the relevant sustainability
indicator is taken into account in the overall assessment
of incentive allocations, weighted against other factors
such as revenue and profit metrics, where the sustaina -
bility indicator generally carries a lesser weight than
financial metrics.
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Statement on due diligence
GOV-4
Due diligence, according to the CSRD, 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 and often when
selling assets as well. The concept of due diligence
under the CSRD 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 statement
as further described in the table to the right.
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 which includes analyses of
material sustainability aspects. The outcome of the
sustainability analysis is documented in the investment
recommendation materials presented to the managers
and/or general partners of the various EQT funds and
considered in review of the investment opportunity. For
more information, please see the Responsible invest -
ment approach for EQT funds.
Due diligence structure according to ESRS
Element Sections within the sustainability statement
Embedding due diligence in
governance, strategy and business
model
— How management addresses sustainability matters
— Remuneration
— Material impacts, risks and opportunities and their interaction with
strategy and business model
Engaging with affected
stakeholders
— How management addresses sustainability matters
— Stakeholder engagement
— Double materiality assessment process
— Policies and guidelines
— Resilience to climate change
— Engaging with own workers
Identifying and assessing adverse
impacts
— Double materiality assessment process
— Material impacts, risks and opportunities and their interaction with
strategy and business model
— Actions
Taking actions to address adverse
impacts
— Policies and guidelines
— Actions
— Engaging with own workers
Tracking the effectiveness of these
efforts
— Targets
— Performance and metric
1) P ublicly available on EQT's website.
Risk management and internal controls over
sustainability reporting
GOV-5
The Audit Committee monitors EQT AB Group's financial
and sustainability reporting and the efficiency of EQT's
internal controls and risk management. The Audit
Committee also receives reporting on the assurance
process of the Annual and Sustainability Report.
Sustainability data is sourced from multiple systems
and contributors within the organization. The processes
and controls related to sustainability reporting are
integrated into EQT AB Group'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. Sustainability-related risks
follow EQT's general risk assessment and prioritization
methodology as set out in the Risk Management
Guidelines
1), where risks are assessed based on
likelihood and impact and prioritized according to
residual risk and alignment with risk appetites.
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. Identified issues are followed up
and prioritized based on their severity level to ensure
that the most significant risks are addressed first. 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 Governance Report, sections Control
Functions and Risk Assessment.
Sections within the sustainability statement
General disclosure Climate change Own workforce Workers in the value chain Business conduct
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Strategy
Strategy, business model and value chain
SBM-1
EQT is a global leader in active ownership strategies
with an aim 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's business is divided into two business segments:
Private Capital and Real Assets. The operations of both
business segments consist of providing investment
management services to the EQT funds.
The EQT funds are raised with capital allocated
from EQT funds' investors, such as pension funds,
sovereign wealth funds, family offices and private
individuals. 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 Performance in Own workforce.
VALUE CHAIN
As 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.
Accordingly, the EQT funds are not consolidated with
EQT AB Group. In the absence of financial control, EQT
AB does not consider the EQT funds and their invest -
ments as forming part of EQT AB Group's own opera -
tions for the purposes of the double materiality
assessment. However, the EQT funds and their
investments are recognized as part of EQT’s value
chain. As such, the double materiality assessment and
this sustainability statement distinguish between EQT
AB Group and EQT funds, with their investments, where
the latter constitute the most significant part of EQT’s
value chain.
EQT funds refers to the EQT funds or vehicles
managed by a fund manager in the EQT AB Group.
Each EQT fund or vehicles, being generally composed
of one or more Limited Partnerships (or the equivalent)
is managed by a fund manager (general partner and/
or a manager). The fund manager is normally a direct
or indirect subsidiary of EQT AB. The authority and
powers of the fund manager are defined in the Limited
Partnership Agreement (or similar).
EQT has €270bn in total assets under management.
The underlying investments in EQT funds consist of more
than 330 portfolio companies, together employing more
than 550,000 people, and more than 2,200 real estate
buildings. Thus, the integration of sustainability
considerations in the investment and ownership
processes for the EQT funds have a broader potential
impact on the environment and people than 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 two business segments and four business
lines, which follow different investment strategies:
Private Capital
— EQT Private Capital Europe & North America invests
in healthcare, technology, services and industrial
technology.
— EQT Private Capital Asia is active in services and tech
services, healthcare, technology and industrial
technology.
Real Assets
— 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 APPROACH
Sustainability is embedded in EQT's overall strategy,
investment approach and governance. The firm's
thematic investment approach, guided by long-term
macro trends such as decarbonization, digitalization
and societal resilience, aims to utilize sustainability as a
driver of value creation, amplified with its active owner -
ship model.
As part of EQT's responsible investment and
ownership philosophy, to appropriately identify and
manage risk, the EQT funds incorporate relevant
sustainability considerations into the investment and
value creation process. This extends from thematic
sourcing, negative screening and sustainability due
diligence to improving sustainability performance
during ownership across the EQT funds' investments. By
doing so, EQT may strengthen its ability to build
business resilience and deliver superior risk-adjusted
returns to its clients. For more information, please see
section Responsible investment approach for EQT
funds.
While certain firm-wide standards are set as part of
EQT's responsible investment and ownership policy and
approach, given EQT's breadth of investment strategies
and scale of the EQT funds' portfolio of investments,
EQT seeks to maximize the impact and value creation,
where there is potential to do so. This means taking
individual aspects of materiality, priority and maturity
into account when defining business line, fund or
investment specific sustainability strategies, either to
improve operational sustainability and/or growing
sustainability-themed revenues by accelerating
innovation.
EQT's key firm-wide sustainability objective is to
strengthen climate resilience and advance decarboni -
zation in order to drive long-term financial perfor -
mance. This objective is underpinned by EQT’s 2030
near-term science-based target (SBT), covering both
EQT's own operations and investments in EQT funds.
The rapidly evolving regulatory landscape and
diverse stakeholder expectations can impose challeng -
es related to sustainability in the short to medium term.
EQT aims to manage and mitigate these challenges by
continuing its sustainability integration in investments,
proactively capturing opportunities and managing
sustainability risks, improving sustainability data and
governance, and ensure close stakeholder engagement.
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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 throughout the investment lifecycle - as part of direct dialogues
or through external surveys.
— Responding to clients' information requests around sustainability and proactively
supplying sustainability information as part of fund reports.
— Knowledge-sharing and collaboration with clients through the EQT thinQ Client
Academy.
— Staying abreast of clients' views and interests, as this influences the firm's strategy
and the formation of new strategies of EQT funds, including for sustainability.
Employees — Annual employee engagement survey to inform and address material impacts, risks and
opportunities and prioritize future engagements.
— Engagement forums and focus groups run by the human resources team.
— Internally and externally conducted employee interviews.
— Input from employees in various forums and through the employee engagement
survey allows EQT to identify needs, views, provide feedback and identify actions for
further development in relation to its people strategy.
EQT funds'
portfolio
companies and
assets' tenants
— Direct engagement and dialogues with representatives from EQT funds' portfolio from
on-boarding through to exit, as part of supporting delivery of the sustainability elements
of the full potential plan. Additionally, network gatherings and seminars provide
opportunities for broader engagement on selected themes.
— Green lease language incorporated into standard lease forms for logistics real estate to
facilitate landlord-tenant cooperation on sustainability with the aim of increasing energy
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 playbook adopted to current
needs.
— Building awareness that aims to enable improved performance on material
sustainability issues and drive long-term value creation through engagement and
support.
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 seek to ensure that EQT meets
shareholders’ expectations.
— Enhanced transparency has led to increased results from sustainability rating
agencies.
Other stakeholder groups that EQT frequently engages with include: debt providers, suppliers, think tanks, industry associations, regulatory bodies, academia, research analysts and sustainability rating agencies.
Interests and views of stakeholders
SBM-2
EQT’s stakeholders consist of individuals or groups
affected by EQT AB Group's operations, on the one
hand, and those that have an interest in or impact on
EQT, on the other.
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
EQT recognises the importance of understanding the
views, priorities and needs of its key stakeholder
groups, and regularly engages with its key stakeholder
groups to inform the strategic direction of the firm.
These views and insights are captured by regular and
recurring activities or as part of deeper stakeholder
engagement programs. The table sets out EQT's main
stakeholder engagement activities and the results from
the engagement.
The Executive Committee is informed about the
stakeholder engagements when deemed relevant. For
example, EQT collects 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.
The outcomes of the stakeholder engagements are
taken into account in EQT's strategy reviews and in the
double materiality assessment. For more information on
how the interests, views, and rights of employees inform
EQT's strategy and business model, please see the
section Interaction with strategy and business model -
Own workforce.
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Material impacts, risks and opportunities and their
interaction with strategy and business model
SBM-3
EQT has identified its material sustainability matters
using a double materiality approach, which considers
both impact materiality and financial materiality. The
material impacts, risks and opportunities reflect EQT's
business model, strategy and main activities as a large
private markets firm, with employees, clients and
investments around the globe.
In EQT AB Group's own operations, material impacts,
risks and opportunities originate from EQT's role as a
global organization, with people being its most
important asset, which gives rise to material impacts,
risks and opportunities related to employees, inclusion,
broader societal influence and climate. The EQT funds’
material impacts, risks and opportunities are mainly
connected to EQT’s role as an active owner, through its
responsible investment and ownership practices across
sectors and geographies. EQT’s business model,
strategy and activities give rise to its material impacts,
risks and opportunities. The management of these
matters could change over time and influence the
development of EQT’s strategy and decision-making
primarily through shifting priorities, policies and
actions.
RESILIENCE AND CAPACITY TO TAKE ADVANTAGE OF
OPPORTUNITIES
EQT’s business model, governance structures, functional
and sector expertise strengthen EQT's resilience to
material sustainability impacts and risks, and its ability
to capitalize on material opportunities. EQT's proximity
to key stakeholder groups, its diversified portfolio and
its structured due diligence and risk management
processes underpin this assessment, where material
sustainability matters are evaluated across short-,
medium- and long-term time horizons. The resilience
assessment is integrated as part of EQT’s ongoing
strategy work, materiality assessment and data
analysis. Quantitative information is considered where
available and relevant, but the assessment is predomi -
nantly qualitative in nature. These structures and
capabilities, allows EQT to adapt to evolving challenges
and capture emerging opportunities in short- to
longer-time horizons in line with its business model.
FINANCIAL EFFECT AND TIME FRAME
EQT has not identified any current financial effects of its
identified material risks and opportunities on its
financial position, financial performance and cash
flows. Furthermore, EQT has not identified any material
risks and opportunities for which there is a significant
risk of a material adjustment within the next annual
reporting period to the carrying amounts of assets and
liabilities reported in the related financial statements.
It is expected that impacts on the own workforce,
workers in the value chain, and business conduct are
more likely to affect EQT and EQT funds in the short- to
medium-term, while impacts related to climate change
are anticipated to be greater over the medium- to
long-term.
CHANGES TO THE MATERIAL IMPACTS, RISKS
AND OPPORTUNITIES COMPARED TO PREVIOUS
REPORTING PERIOD
No new sustainability matters were assessed as material
in the 2025 review of the double materiality assessment,
compared to the previous reporting period. Information
contained in the previously reported topic “Sustainabili-
ty-themed products and services in the portfolio
companies” was integrated into other parts of the report
as appropriate. The already material topic 'Business
ethics' was also recognized as a risk for EQT funds.
The double materiality assessment process
IRO-1 1)
EQT has conducted an annual review of its double
materiality assessment in 2025, which has been
approved by the EQT AB Board.
METHODOLOGY
Identifying sustainability matters
As outlined in the value chain section, the double
materiality assessment distinguishes between EQT AB
Group's own operations and the EQT funds, which
represents a significant part of the value chain. For EQT
AB Group, this includes impacts, risks, and opportunities
linked to its own operations including employees,
business partners and clients.
For the EQT funds, the materiality assessment is
conducted at business line level to identify material
sustainability impacts, risks, and opportunities. Rather
than consolidating material topics for each investment,
the assessment aggregates “hot spots” and dependen -
cies, reflecting the private market context, portfolio
composition, and sectoral and geographical exposures.
The analysis draws on qualitative and quantitative data,
including internal strategy documents, stakeholder
engagement outputs, investment due diligence and
annual portfolio company assessments (subject to data
availability).
The outcome is a list of sustainability topics based
on ESRS, supplemented by EQT own identified topics.
MATERIALITY SCORING APPROACH
Impact materiality
Impact materiality refers to the actual or potential
positive and negative sustainability impacts EQT has on
people and the environment through its operations and
value chain. The evaluation is based on four criteria:
— Scale: How grave the negative impact is or how
beneficial the positive impact is for people or the
environment.
— Scope: How widespread the impacts are, being the
extent of environmental damage or a geographical
perimeter for environmental impact, or the number of
people adversely affected for impacts on people, for
EQT AB Group or EQT funds, looking at portfolio
concentrations.
— Irremediable character: Whether and to what extent
the negative impacts could be remediated.
— Likelihood: Likelihood of occurrence of potential
impacts based on sector and geographical expo -
sures.
The analysis of EQT funds' impacts is first done at an
aggregated level per business line, followed by reviews
aimed to highlight potential funds or investments whose
impacts differ significantly in severity from the overall
results. This helps EQT to identify potential investments
that have heightened exposures to specific impacts that
are not considered material to the business line as a
whole and hence recognizes the possibility of an impact
in a fund, portfolio company or real estate asset, being
severe enough to become material on its own merits.
Disclosures on the materiality
assessment process
1) IRO related to E1 is disclosed in section Strategy and business model resilience
to climate change
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Financial materiality
Financial materiality refers to sustainability-related
risks and opportunities.
The financial materiality assessment, is based on
the EQT AB Group risk framework, and uses a likeli -
hood–impact matrix to assess and prioritize risks and
opportunities:
— 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 oppor -
tunity.
The analysis considers 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.
There is a connection between impacts, risks and
opportunities, where positive and negative impacts on
people or the environment, in most cases, also have
financial effects or may have financial effects in the
future. This dependency has been acknowledged in the
double materiality assessment.
THRESHOLD
To finally determine the material impacts, risks and
opportunities, the results from the initial assessments
for impact and financial materiality are applied against
appropriate thresholds. The process for setting
thresholds varies between EQT AB Groups' operations
and through the EQT funds.
For EQT AB Group, topics are assigned a materiality
score and placed on a five-grade scale ranging from low
to high materiality. Topics reaching the two highest
grades, i.e. medium/high or high, are assessed material.
For EQT funds, results are concluded by considering
the occurrence and significance of material matters in
individual business lines, in combination with an overall
assessment linked to business model and strategy. Prior
to final approval, the results are calibrated in forums
with key stakeholders to confirm a representative
output and an appropriate threshold.
Consideration of environmental topics deemed not
material (E2, E3, E4, E5)
As EQT AB Group is not heavily reliant on physical
assets to conduct its activities, impacts, risks and
opportunities related to Pollution, Water, and Resource
use and Circular economy are not deemed material.
Internal tracking and efforts to reduce water consump -
tion and generated waste are conducted to the extent
possible, with focus on larger offices and/or in case of
regional issues. Given the nature of operations, EQT
does not currently measure its impact on land use for its
own operations and impacts, risks and opportunities re -
lated to Biodiversity have therefore not been screened.
While some topics are more relevant to certain
sectors or individual EQT funds’ portfolio companies,
impacts, risk and opportunities related to Pollution,
Water, Resource use and Circular economy, and
Biodiversity have not been assessed material on an
aggregated level for the EQT funds. In the value chain,
as part of the double materiality assessment, invest -
ment due diligence material and information collected
directly from EQT funds' portfolio companies are
analyzed.
Process to determine material topics related to
business ethics
The impacts, risks and opportunities related to business
ethics, more specifically to anti-money laundering
(AML) and Counter-Terrorist Financing (CTF) for EQT AB
Group and EQT funds, are assessed taking into
consideration:
— Geographical and sector exposure
— Activity sectors (of the clients)
— Screening against Sanction lists
— Exposure to politically exposed persons
— Complexity of the transaction
— Delivery channel
— Any adverse media, bad press coverage impacting a
client or a related party
— Any other criteria where relevant, both on the client
side when receiving capital and on the investment side
In addition, other criteria such as the client type and
transaction type are considered in assessing an EQT
fund's exposure to AML risk. The AML/CTF risk
assessment is performed on EQT's clients, investments
and delegates servicing the funds.
For bribery and corruption, the country and sector
of investment as well as exposure to governmental
authorities are used to assess the level of risk. The risks
related to other business conduct matters are assessed
taking into account the number of incidents relative to
EQT's size.
When assessing the financial impact of business
conduct matters on EQT, EQT assesses whether the risk
event will have any regulatory consequences affecting
EQT's license to operate and any reputational conse -
quences affecting its fundraising activities.
DECISION-MAKING, INTERNAL CONTROLS
AND RISK MANAGEMENT
The double materiality assessment process is led by a
cross-functional team from the Sustainability and
Finance functions, in close collaboration with the Risk,
Regulatory & Compliance and HR teams. Internal
sustainability experts with insights into stakeholders'
views and interests are also involved in the process and
their role is important in the identification and scoring
of impacts, risks and opportunities as well as calibrat -
ing the outputs and setting an applicable threshold.
The double materiality assessment has been subject
to review in 2025 and has been presented to and
discussed with the Executive Committee and the Audit
Committee. The Board oversees the double materiality
assessment process and ultimately approves the results.
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 controls. In
assessing sustainability risks, the Risk, Regulatory &
Compliance team considers:
— The financial risks associated with the failure to meet
sustainability ambitions in the EQT funds' portfolios or
adapt the portfolio to changes in the political,
economic, social, technological and legal environ -
ment 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 increasing
requirements on EQT to meet various laws, regula -
tions and standards related to sustainability matters.
— Assessments of negative impacts by portfolio
companies 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.
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Value chain Impacts, Risks, Opportunities Time
horizon
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 related to EQT funds' investments
— Positive impact by supporting the transition to a low-carbon economy
Risk and opportunity
— Financial risks from external factors such as extreme weather and changes in the 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
Climate change 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 related to EQT funds' investments
— 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
Equal treatment and opportunities for all
EQT AB Group Impact
— Negative impact as diversity generally is lagging in the financial industry
— Positive impact by promoting inclusion and fostering 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
For more information please see topic-specific sections.
Value chain Impacts, Risks, Opportunities Time
horizon
Employee development, health and well-being
EQT AB Group Impact
— Negative impact from e.g. work-life balance and stress as general challenges in the financial industry
— Positive impact on employees' development, health and wellbeing through training and skills development
as well as actions to increase engagement.
Risk and opportunity
— Financial risk from inadequate employee development and well-being, affecting performance and ability to
attract and retain talent
— Financial benefit from maximizing employee potential through development and engagement
Equal treatment and opportunities for all
EQT funds Impact
— Negative impact if efforts to promote equal treatment and opportunities for all are inadequate.
— Positive impact to society by encouraging more inclusive business practices
Working conditions and 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 ethics
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
Risk
— 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
Risk
— Financial risk as a result of reputational considerations associated with failure of good governance and
ethical practises through the investment and ownership process
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
* EQT own topic, covered by entity-specific disclosuresTime horizons: Short-term ≤ 1 year Mid-term 1–5 years Long-term > 5 years (ESRS 1 § 77–81)
Material sustainability matters
LIST OF MATERIAL SUSTAINABILITY MATTERS
EQT's material impacts, risks and opportunities arise within the following material sustainability matters:
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General disclosures
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ESRS Disclosure requirements Page
ESRS 2: General disclosures
BP—1 General basis for preparation of sustainability statements 121
BP—2 Disclosures in relation to specific circumstances 121
GOV—1 The role of the administrative, management and supervisory bodies
Incorporation by reference data point 21 (a), (b), (c), (e): Corporate Governance report
Diversity in the EQT AB Board and C-suite 21 (d): Own workforce section
121
169
147
GOV—2 Information provided to and sustainability matters addressed by the undertaking's administrative,
management and supervisory bodies 122
GOV—3
ESRS E1
Integration of sustainability-related performance in incentive schemes
122
GOV—4 Statement on due diligence 123
GOV—5 Risk management and internal controls over sustainability reporting
Incorporation by reference data point 36 (b): Corporate governance report
123
174-175
SBM—1 Strategy, business model and value chain
Headcount of employees by geographical areas 40 (a)iii: Own workforce chapter 124
SBM—2
ESRS S1, S26)
Interests and views of stakeholders
125
SBM—3 Material impacts, risks and opportunities and their interaction with strategy and business model 1) 126-128
IRO—1
ESRS E1, E2, E3, E4,
E5, G1
Description of the processes to identify and assess material impacts, risks and opportunities
126
IRO—2 Disclosure requirements in ESRS covered by the undertaking's sustainability statement 129-131
E1: Climate change2)
E1—1 Transition plan for climate change mitigation 133
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model 134
E1—2 Policies related to climate change mitigation and adaptation 135
E1—3 Actions and resources in relation to climate change policies 136
E1—4 Targets related to climate change mitigation and adaptation 137
E1—6 Gross Scopes 1, 2, 3 and Total GHG emissions 139
E1—7 GHG removals and GHG mitigation projects financed through carbon credits 138
E1—8 Internal carbon pricing 138
S1: Own workforce3)
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model 142
Disclosure requirements in ESRS covered
in the sustainability statement
ESRS 2 IRO-27)
ESRS Disclosure requirements Page
S1—1 Policies related to own workforce 143
S1—2 Processes for engaging with own workers 143
S1—3 Processes to remediate negative impacts and channels for own workers to raise concerns 144
S1—4 Taking action on material impacts on own workforce, and approaches to mitigating material risks
and pursuing material opportunities related to own workforce, and effectiveness of those actions 145
S1—6 Characteristics of the undertaking's employees 147
S1—9 Diversity metrics 147
S1—13 Training and skills development metrics 4) 148
S1—14 Health and safety metrics 5) 148
S1—15 Work-life balance metrics 148
S1—16 Compensation metrics (pay gap and total compensation) 148
S1—17 Incidents, complaints and severe human rights impacts 148
MDR-M Metrics for employee engagement, Share of women in STEM-related positions, New hires (EQT
Specific) 147
S2: Workers in the value chain
ESRS 2 SBM—3 Material impacts, risks and opportunities and their interaction with strategy and business model
Phase-in 6)
S2—1 Policies related to value chain workers
S2—2 Processes for engaging with value chain workers about impacts
S2—3 Processes to remediate negative impacts and channels for value chain workers to raise concerns
S2—4 Taking action on material impacts on value chain workers, and approaches to managing material
risks and pursuing material opportunities related to value chain workers, and effectiveness of those
action
S2—5 Targets related to managing material negative impacts, advancing positive impacts, and managing
material risks and opportunities
MDR-M Metric for of independent women board members appointed at EQT funds’ portfolio companies
(EQT Specific)
G1: Business conduct
ESRS 2 GOV—1 The role of the administrative, supervisory and management bodies 153
G1—1 Business conduct policies and corporate culture 153
G1—3 Prevention and detection of corruption and bribery 154
G1—4 Confirmed incidents of corruption or bribery 156
MDR-P Policies for anti-money laundering, counter terrorist financing, and counter proliferation financing
guidelines (EQT specific) 153
EQT specific: Responsible investment approach for EQT funds
MDR—P Policies adopted to manage material sustainability matters 158
MDR—A Actions and resources in relation to material sustainability matters 159
MDR—M Metrics in relation to material sustainability matters 159
1) Phase-in of ESRS 2 SBM-3 Anticipated financial effects
2) Phase-in of ESRS E1-9 Anticipated financial effects
3) Phase-in of ESRS S1-11 Social protection
4) Phase-in of ESRS S1-13 83 (b) Average number of training hours is not
disclosed by gender
5) Phase-in of ESRS S1-14 88 (d-e) Cases of recordable work-related ill health
and number of days lost
6) Phase-in in accordance with Quick fix amendments to ESRS and alignment
with ESRS 2 paragraph 17. Please see pages 150-151.
7) The process for determining material information is based on relevancy and
connection of impacts, risk and opportunities to EQT AB Group's business
model. For this sustainability statement, EQT has taken a cautious approach
to determining material information and chosen to report on all Disclosure
Requirements corresponding to each of EQT's material sub-topics, unless the
information prescribed under a Disclosure Requirement is clearly irrelevant
to EQT's circumstances.
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===== SIDA 130 =====
DATAPOINTS DERIVED FROM OTHER EU LEGISLATION
The table below provides an overview of ESRS datapoints
that derive from other EU legislation, and where the
information is presented if deemed material.
ESRS data point Regulation Page
ESRS 2: General disclosures
GOV—1 21 (d): Board's gender diversity SFDR 147
GOV—1 21 (e): Percentage of board members who are independent Benchmark regulation 166-168
GOV—4 30: Statement on due diligence SFDR 123
SBM—1 40 (d) i: Involvement in activities related to fossil fuel activities SFDR
Not
Material
SBM—1 40 (d) ii: Involvement in activities related to chemical production SFDR, Benchmark regulation
SBM—1 40 (d) iii: Involvement in activities related to controversial weapons SFDR, Benchmark regulation
SBM—1 40 (d) iv: Involvement in activities related to cultivation and production of
tobacco
Benchmark regulation
E1: Climate change
E1—1 14: Transition plan to reach climate neutrality by 2050 EU Climate Law 133
E1—1 16 (g): Exclusion from Paris-aligned Benchmarks Pillar 3, Benchmark
Regulation
Not
material
E1—4 34: GHG emission reduction targets SFDR, Pillar 3, Benchmark
Regulation
137
E1—5 38: Energy consumption from fossil sources disaggregated by sources
(only high climate impact sectors)
SFDR
Not
material
E1—5 37: Energy consumption and mix SFDR
E1—5 40-43: Energy intensity associated with activities in high climate impact
sectors
SFDR
E1—6 44: Gross Scope 1, 2, 3 and Total GHG emissions SFDR, Pillar 3, Benchmark
Regulation
139
E1—6 53-55: Gross GHG emissions intensity SFDR, Pillar 3, Benchmark
Regulation
139
E1—7 56: GHG removals and carbon credits EU Climate Law 138
E1—9 66: Exposure of the benchmark portfolio to climate-related physical
risks
Benchmark Regulation
Phase-
in1)
E1—9 66 (a): Disaggregation of monetary amounts by acute and chronic physical
risk
Pillar 3
ESRS E1—9 66 (c): Location of significant assets at material physical risk Pillar 3
E1—9 67 (c): Breakdown of the carrying value of its real estate assets by energy-
efficiency classes
Pillar 3
E1—9 69: Degree of exposure of the portfolio to climate-related opportunities Benchmark Regulation
E2: Pollution
E2—4 28: Amount of each pollutant listed in Annex II of the E-PRTR Regulation
(European Pollutant Release and Transfer Register) emitted to air,
water and soil
SFDR Not
Material
ESRS data point Regulation Page
E3: Water and marine resources
E3—1 9: Water and marine resources SFDR
Not
material
E3—1 13: Dedicated policy SFDR
E3—1 14: Sustainable oceans and seas SFDR
E3—4 28 (c): Total water recycled and reused SFDR
E3—4 29: Total water consumption in m3 per net revenue on own operations SFDR
E4: Biodiversity and ecosystems
ESRS 2— IRO 1 - E4 paragraph 16 (a) i, (b), (c) SFDR
Not
material
E4—2 24 (b): Sustainable land / agriculture practices or policies SFDR
E4—2 24 (c): Sustainable oceans / seas practices or policies SFDR
E4—2 24 (d): Policies to address deforestation SFDR
E5: Resource use and circular economy
E5—5 37 (d): Non-recycled waste SFDR Not
materialE5—5 39: Hazardous waste and radioactive waste SFDR
S1: Own workforce
ESRS 2— SBM3 - S1
14 (f):
Risk of incidents of forced labour SFDR
Not
materialESRS 2— SBM3 - S1
14 (g):
Risk of incidents of child labour SFDR
S1—1 20: Human rights policy commitments SFDR 143
S1—1 21: Due diligence policies on issues addressed by the fundamental
International Labor Organisation Conventions 1 to 8
Benchmark Regulation 143
S1—1 22: Processes and measures for preventing trafficking in human beings SFDR Not
material
S1—1 23: Workplace accident prevention policy or management system SFDR 143
S1—3 32 (c): Grievance/complaints handling mechanisms SFDR 144
S1—14 88 (b) and (c): Number of fatalities and number and rate of work- related accidents SFDR, Benchmark
Regulation
Not
material
S1—14 88 (e): Number of days lost to injuries, accidents, fatalities or illness SFDR
S1—16 97 (a): Unadjusted gender pay gap SFDR, Benchmark
Regulation
148
S1—16 97 (b): Excessive CEO pay ratio SFDR 148
S1—17 103 (a): Incidents of discrimination SFDR 148
S1—17 104 (a): Non-respect of UNGPs on Business and Human Rights and OECD SFDR, Benchmark
Regulation
148
S2: Workers in the value chain
ESRS 2— SBM3 – S2
11 (b):
Significant risk of child labour or forced labour in the value chain SFDR Phase-
in2)
S2—1 17: Human rights policy commitments SFDR 150
S2—1 18: Policies related to value chain workers SFDR 150
1) Phase-in of ESRS E1-9 Anticipated financial effects
2) In accordance with Quick fix amendments to ESRS and alignment with ESRS 2 paragraph 17
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===== SIDA 131 =====
ESRS data point Regulation Page
S2—1 19: Non-respect of UNGPs on Business and Human Rights principles and
OECD guidelines
SFDR, Benchmark
Regulation
Phase-
in1)
S2—1 19: Due diligence policies on issues addressed by the fundamental
International Labor Organisation Conventions 1 to 8
Benchmark Regulation 150
S2—4 36: Human rights issues and incidents connected to its upstream and
downstream value chain
SFDR Phase-
in1)
S3: Affected communities
S3—1 16: Human rights policy commitments SFDR
Not
material
S3—1 17: non-respect of UNGPs on Business and Human Rights, ILO principles
or and OECD guidelines
SFDR, Benchmark
Regulation
S3—4 36: Human rights issues and incidents SFDR
S4: Consumers and end-users
S4—1 16: Policies related to consumers and end-users SFDR
Not
material
S4—1 17: Non-respect of UNGPs on Business and Human Rights and OECD
guidelines
SFDR, Benchmark
Regulation
S4—4 35: Human rights issues and incidents SFDR
G1: Business conduct
G1—1 10 (b): United Nations Convention against Corruption SFDR 153
G1—1 10 (d): Protection of whistle-blowers SFDR 155
G1—4 24 (a): Fines for violation of anti-corruption and anti-bribery laws SFDR, Benchmark
Regulation
156
G1—4 24 (b): Standards of anti-corruption and anti-bribery SFDR 154
1) In accordance with Quick fix amendments to ESRS and alignment with ESRS 2 paragraph 17
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Climate change
133 Climate change
133 — EQT AB Group: Climate change mitigation
133 — Value chain: Climate change mitigation, adaptation and energy
in EQT funds
133 Transition plan for climate change mitigation
134 Strategy and business model resilience to climate change
134 — Climate risks - EQT AB Group
134 — Climate risks - EQT funds
135 Policies and guidelines
135 — Code of Ethics
135 — Net Zero Guidelines
135 — EQT Responsible Investment & Ownership Policy (RI&O)
135 — EQT Sustainable Workplace Guidelines
135 — EQT Travel and Expense Guidelines
136 Actions
136 — EQT AB Group
136 — EQT funds
137 Targets and performance
138 — EQT AB Group
138 — EQT funds
138 — Rebaselining
138 Greenhouse gas removals and mitigation projects
138 Internal carbon pricing
140 EU Taxonomy statement
140 — Turnover and Opex
140 — Capex
# 0 3.2
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===== SIDA 133 =====
Climate change
E1
EQT AB GROUP: CLIMATE CHANGE MITIGATION
EQT AB Group's climate impact from its own operations
primarily relates to emissions from business travel and
office energy consumption. The underlying investments
in EQT funds have a significantly larger impact in
absolute terms than the EQT AB Group.
VALUE CHAIN: CLIMATE CHANGE MITIGATION,
ADAPTATION AND ENERGY IN EQT FUNDS
Through the EQT funds, EQT has a positive impact by
contributing to climate change mitigation, and the
renewable energy transition by pursuing investment
opportunities in these areas, and by strengthening resil -
ience by positioning the funds for a shift to a low-car -
bon economy. The EQT funds also have the potential to
contribute to adaptation, and with that, opportunities
for increased climate resilience and value preservation.
The EQT funds have a negative impact on climate
change mitigation due to their carbon emissions and
energy consumption, and may face risks related to
climate change mitigation and adaptation.
This section covers climate-related topics, presents
EQT's strategy for building climate resilience, and
describes the actions taken to drive progress.
Climate resilience and decarbonization are
important components in EQT's drive to
achieve long-term financial performance.
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
ambition 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 approach, with the aim of creating
value and generate attractive risk-adjusted returns to
EQT clients. To ensure accountability and performance,
relevant milestones from the transition plan are
integrated into incentive schemes for employees and in
various EQT AB Group and EQT funds' debt financing
instruments.
The main elements of the transition plan are
outlined in EQT's Net Zero Guidelines, which is ap -
proved by EQT AB Group's Executive Committee. The
Net Zero Guidelines sets out EQT AB Group's green -
house emissions targets, covering Office energy
consumption (Scope 1 and 2), Business travel emissions
(Scope 3) and portfolio and asset-class specific targets
for the investments in the EQT funds. The Science Based
Targets initiative (SBTi) has approved EQT AB Group's
near-term emissions reduction targets (SBTs), which
follow SBTi's private equity sector guideline methodolo -
gy. The Net-Zero Guidelines is supplemented by other
steering documents, such as the Travel and Expense
Guidelines, further described in the section Policies and
guidelines.
Financial impacts of implementing the transition
plan and climate change mitigation actions have been
assessed and the conclusion is that they are not
Transition plan for climate
change mitigation
E1-1
expected to require significant financial resources for
EQT AB Group. This includes both Operational
expenditures (Opex) and Capital expenditures (Capex).
These factors have therefore not been included in the
amounts presented in the financial statements.
For more details and information regarding the
targets and progress towards them, please see the
section Targets and performance. For more details
regarding decarbonisation levers designed for EQT to
deliver on the targets, actions taken during the year and
the expected outcome of them, please see the section
Actions.
Paris-aligned Benchmarks
EQT is not excluded from EU Paris-aligned Benchmarks.
Material topics related to Climate change
Material topics Value chain
Climate
change
Mitigation EQT AB Group
EQT funds
Adaptation EQT funds
Energy EQT funds
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===== SIDA 134 =====
Strategy and business
model resilience to climate
change
ESRS 2 SBM-3
As described in section Resilience and capacity to take
advantage of opportunities in the General disclosures,
EQT’s strategy and business model are designed to
adapt, capture opportunities and manage risks.
Specifically, climate related impacts, risks and
opportunities were considered as part of the double
materiality assessment process. The climate change
resilience analysis, which is summarized below, has
been and continues to serve as an input to the assess -
ment process and the overall sustainability approach
for the EQT AB Group.
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' investments own assets. Insights from the
assessments on EQT funds' investments, 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
scenarios and time horizons and address potential risks
and mitigation activities. By proactively analyzing
potential risks and identifying mitigation and adapta -
tion 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.
Insufficient adaptation to climate-related risks,
including both transition risks and physical risks, could
on the other hand pose a financial risk.
EQT's thematic investment approach enables a
continuous evolution and adaptability to climate risks in
the short, medium and long-term. EQT AB Group aims
to ensure that the business model remains resilient and
well-prepared to navigate both changing market
conditions and risk landscapes, but also secure ongoing
access to finance at a competetive cost of capital 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. Examples in the short
and medium-term could include EQT funds electing to
deprioritize potential investments with high climate risk
exposure, or requiring situation-specific transition
actions as part of the investment decision. For more
information and actions related to the transition plan,
please see the prior section Transition plan for climate
change mitigation.
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
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.
Each scenario has been assessed using a consistent
set of inputs that are relevant to EQT AB Group’s
business environment. These include global tempera -
ture increases, expected direction of climate policy,
broader macroeconomic conditions, energy demand
and supply development, and low-carbon technology
development pace. EQT AB Group uses these factors to
understand how different scenarios could influence its
operating conditions, cost structures, market dynamics,
and resilience across the portfolio. A key assumption is
that climate policy will continue tightening at a
measured but meaningful pace across its key markets.
This includes moderate shifts in economic activity,
energy mix increasingly shifting towards renewables,
incremental cost increases linked to regulatory
standards, carbon pricing, supply chain adjustments.
Scenario modelling is mainly used to understand
directional changes in policy, technology, and physical
hazards, not to predict exact financial outcomes or
operational conditions. The inherent uncertainties
regarding the probability of climate scenarios are
attributed to variability in natural climate systems,
certain socio-economic factors, such as population
growth, technological advancements, and policy
decisions, are difficult to forecast accurately. 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,
inform robust strategy decisions, and are a primary
reason for why climate change is considered a material
topic for the EQT funds.
CLIMATE RISKS - EQT AB GROUP
EQT AB Group has not deemed climate transition risks
or physical climate risks to be material in its double
materiality assessment. This assessment is based on a
scenario analysis covering Shared Socioeconomic
Pathway (SSPs)1) 1-1.9, 2.6, 4.5, 6.0 and 8.5 scenarios.
CLIMATE RISKS - EQT FUNDS
Climate transition risks
In the EQT funds, transition risks have been evaluated
for the majority of the investments in the short term
(2025-2026), but also using various SSP scenarios
(including SSP1-1.9, 2.6, 4.5, 6.0 and 8.0) for the
medium-term (2026 – 2030) and longer term (2035
– 2050).
The material climate transition risks identified
across the EQT funds mainly stem from policy and legal
risks and associated assumptions on potential carbon
taxation. These risks are most prevalent in certain
portfolio companies’ own supply chains, relating to
scope 3 emissions.
As the EQT funds' investment strategies 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. This means the impacts are
expected to be manageable with reasonable planning
and ongoing engagement for the select parts of the
portfolio with identified risks from the shift toward a
low-carbon economy. Under disorderly scenarios,
where the assumption is that policy changes may be
more impactful over time, risk exposure in the existing
portfolio investments 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.
Physical climate risks
In the EQT funds, physical risks have been evaluated for
the majority of the investments in the short term
(2025-2026) using various SSP scenarios (including
SSP1-1.9, 2.6, 4.5, 6.0 and 8.5 for the decades spanning
2030 to 2100, with specific emphasis on two time
horizons: 2030 (Medium-term) and 2050 (Long-term).
Third-party vendors have provided climate risk
modeling using geospatial coordinate data and
proprietary tools that draw upon climate model
projections under the SSPs.
The material physical climate risks identified across
the EQT funds by 2050 mainly stem from extreme heat,
rainfall and drought (under plausible global emissions
trajectories).
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.
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===== SIDA 135 =====
Policies and guidelines
E1-2
EQT AB Group has adopted various policies and
guidelines that together set out EQT's approach to
climate change mitigation and adaptation. The EQT
Responsible Investment & Ownership Policy (RI&O) is
also applicable to EQT funds and their respective
investment strategies1). For information regarding how
EQT monitors these governing documents please see
the section Business conduct.
CODE OF ETHICS
The Code of Ethics addresses EQT's commitment to
climate change mitigation with reference to the Paris
Agreement. For information about scope and owner of
the Code of Ethics please see the section Business
conduct.
NET ZERO GUIDELINES
Please refer to the section Transition plan for climate
change mitigation for information about EQT's Net Zero
Guidelines.
EQT RESPONSIBLE INVESTMENT
& OWNERSHIP POLICY (RI&O)
The RI&O Policy outlines EQT's approach to integrating
sustainability considerations in its investments and
ownership strategies1). 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 resilience. The policy relates to decarbonization,
energy efficiency, renewable energy deployment and
physical and transition risks of climate change. For more
information regarding scope and ownership of the EQT
RI&O policy, please see the section Business conduct.
EQT SUSTAINABLE WORKPLACE GUIDELINES
EQT AB Group has guidelines for new office leases that
include climate mitigation considerations for all EQT
offices. A 'green lease' document has been developed
for use when negotiating new or extending existing
office leases. This includes performance 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 TRAVEL AND EXPENSE GUIDELINES
EQT has adopted Travel and Expense Guidelines that set
out EQT's principles for corporate travel. Virtual meetings
are encouraged but when travel is necessary, EQT AB
Group has set four rules in the EQT Travel and Expense
Guidelines that employees2) are expected to follow:
— Optimize travel by combining several meetings in one
trip when possible.
— Fly economy class for flights under three hours,
especially for internal purposes, as more premium tick-
et 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 responsible for these
guidelines, which are approved by the Operating
Committee.
1) The policy is available at EQT's webpage:
https://eqtgroup.com/eqt-policies-and-statements/
2) “EQT Employees” means all permanent employees of EQT AB Group and all
temporary staff of EQT who have access to EQT premises and/or systems.
Physical risk is relatively low throughout the EQT
funds' portfolio. However, with portfolio companies and
assets having locations and value chain dependencies
across the globe, there is varied risk exposure. Under
SSP2.6 and 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. This means the
potential impacts from climate-related weather events
and long-term shifts in climate patterns are expected to
be limited in scale and manageable through appropri -
ate adaptation measures. While assessed, conclusions
from the SSP 6.0 and 8.5 scenarios are not deemed
aligned to the existing global policy landscape and
therefore not separately disclosed.
Key geographies at risk include the Southeast
United States, the Mediterranean, and Southeast Asia.
Fire and Extreme Heat are recurring risks for properties
across the four investment platforms in these geogra -
phies. Note that for the physical risk assessments, these
have not included sites in the underlying investments'
own value chains.
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Actions
E1-3
During the reporting period, EQT has taken and/or
plans to take, among other things, the following actions
in its own operations and by supporting EQT funds'
portfolio companies and real estate assets. These
efforts aim to increase climate resiliency and execute
on the active ownership strategy.
EQT AB GROUP
Decarbonization levers Description of action(s) Intended outcome Expected timeline
Reduce office energy
emissions
Limit usage of fossil-fuel
based energy for office
energy
Renewable electricity procurement:
Procuring Energy Attribute Certificates
(EACs) for a total of 1,460 MWh for
electricity use to reduce emissions
associated with office energy consumption.
100% of procured certificates originate
from RE100- compliant generation projects
in each applicable geography (e.g. solar,
wind generation)
EQT AB Group's EAC
procurement program serves
to procure renewable
electricity at competitive costs
and reduce Scope 2 emissions.
Total renewable energy
consumption during 2025 was
3,627 MWh corresponding to 77
percent of total energy
consumption.
Expected to
continue during
FY2026
Energy efficiency: EQT works with
landlords to achieve expected energy
efficiency levels. For new leases, LEED
certifications have been considered.
Use leverage to get
commitment from landlords on
identified improvement areas.
Expected to
continue during
FY2026
Office data quality and analytics: Work
focused on improving data quality and
implementing controls for office energy
consumption, and increasing accessibility
of insights through data analytics.
With better data quality, it is
possible to provide more
actionable insights and identify
high-emitting offices.
Expected to
continue during
FY2026
Reduce business travel
emissions
Travel insights and engagement: Internal
engagement activities to strengthen the
business travel agenda and provide
actionable insights to the organization on
targets and progress, and share examples
of initiatives contributing to reduced
emissions.
Keep EQT AB Group on track
towards Scope 3 2027 targets.
Expected to
continue during
FY2026
Sustainable Aviation Fuel: EQT has entered
a multi-year partnership to participate in a
program to procure Sustainable Aviation
Fuel, financed by the internal carbon
pricing scheme. SAFs purchased in multiple
tranches during 2025.
SAFs purchased in 2025
resulted in 3,597 tCO
2e abated.
When considering this
mitigation measure as part of
the value chain, net emissions
related to business travel
(Scope 3, category 6) total
19,867.
Multi-year
program until
FY2027
Decarbonization levers Description of action(s) Intended outcome Expected timeline
Support transition planning
Adopting a transition plan
mindset will enable portfolio
investments to execute
more quickly on
decarbonization
Playbook: Developed a new transition planning
playbook for portfolio companies (incl.
decarbonization). Key updates include a library
of concrete mitigation and adaptation actions,
clearer expectations on climate governance
and guide to assessing climate materiality.
Enable faster execution of
transition plans through more
actionable support and stronger
buy-in from portfolio company
management teams and boards
of directors.
Expected to
continue during
FY2026
Support portfolio
companies with industry
best practices
Upskilling webinars: Continued hosting of
upskilling webinars on climate matters and
emission reduction efforts with portfolio
companies' management teams and board
members.
Improve portfolio companies'
decarbonization literacy and
understanding.
Ongoing support
model that is
being improved
over time
Support portfolio
companies to source
renewable energy
Simplify and reduce costs
associated with procuring
renewable electricity
Renewable electricity procurement: Portfolio
companies have participated in EQT AB
Group's EAC procurement program. A total of
30 companies participated to procure EACs
for a total volume of 328 MWh.
Helping reduce portfolio
companies' Scope 2 emissions at
competitive cost.
Ongoing support
model that is
being improved
over time
Support data availability
and financial planning for
EQT Real Estate
Key enablers to concretely
address building emission
reductions
Tenant engagement in EQT Real Estate:
Collaborating with tenants to achieve an
increasing share of GHG emissions primary
data availability in buildings, to reduce the
reliance on data estimates.
Higher share of activity-based
data for GHG emissions
calculations.
Program
expected to
continue
throughout
FY2027
1)
Improve building energy
efficiency and onsite
generation
LED lighting in real estate assets: In the EQT
funds' real estate assets, the share of floor
area with LED lighting has increased from 52
percent in 2024 to 62 percent in 2025.
Improving building energy
efficiency.
Program
expected to
continue
throughout
FY2027
1)
Climate risk assessment
Structurally assess and
manage climate-related
risks in the investment
portfolio
EQT Private Capital (EU & NA, and Asia): The
portfolio-wide climate risk dashboard has
been improved during 2025, serving as the
basis for constructive portfolio company
discussions and investment process
improvements.
Enhancing portfolio companies'
ability to understand, manage
and adapt to potential climate
risks unique to the specific
companies.
Ongoing analysis
to be improved
and extended
over time
EQT Infrastructure: A climate risk software tool
has been implemented for investment advisory
teams to use to assess physical risk exposure for
new investments during due diligence.
Reduce potential negative
financial implications on
portfolio company level by
addressing risks during due
diligence.
Ongoing
diligence module
that is being
improved over
time
EQT Real Estate:
Physical climate risks for all
existing and new buildings are evaluated
during the hold period or diligence using a
global platform developed by a third-party
provider. This platform assesses building
exposure to various climate-related hazards
across different scenarios and timelines.
Reduce negative financial
implications on an asset level by
addressing risks during due
diligence.
Ongoing
diligence module
that is being
improved over
time
EQT FUNDS
1) A ctions follows EQT Real Estate’s 2027 objectives related to energy efficiency and increasing primary data.
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Climate change
===== SIDA 137 =====
Targets and performance
E1-4
EQT has a long-term ambition to reach net zero GHG
emissions in its own operations and in the EQT funds'
investments by 2040. In addition, EQT has set near-term
science-based targets for 2030, which have been
validated by the SBTi1).
Performance assessment
Performance against Scope 1-3 targets is regularly
monitored throughout the year, with data updates
generally provided on a quarterly basis. Dashboards
have been created to increase data availability and
engagement across the organization, while also
enabling controls and further analysis.
Current performance on Scope 1+2 targets resulted in a
19% decrease against base year. 2025 is in line with
earlier projections, mainly due to offices taking action
on energy efficiency initiatives to reduce energy
consumption. 2025 performance for Scope 3 target for
business travel resulted in an 8% increase compared to
previous year. This is primarily due to increased air
travel driven by increased business activity and travel
demand. Investments in real estate have progressed
well in regards to on-site solar capacity and floor area
with LED lighting, however the average operational
emissions per square meter resulted in an increase
between 2023 and 2024. This was mainly due to greater
use of actual emissions data that proved more
carbon-intensive than previous estimates, as well as a
higher share of acquisitions in regions with high carbon
intensity.
Target considerations
EQT AB Group's emission boundary and reduction targets
include CO2, CH4, and N2O gases as these are considered
to be released in significant quantities for tracking. The
targets have been approved by EQT's Executive Commit-
tee, and the near-term targets for 2030 are validated by
the SBTi and follow SBTi's private equity sector guidelines.
To ensure the targets' consistency with the greenhouse
gas emissions boundary, EQT AB Group plans to review
them at least every five years. The target setting process
concluded that EQT AB Group does not have any material
locked-in GHG emissions in its key assets or products, and
any potential locked-in emissions in the EQT funds'
portfolio investments are not expected to negatively
impact target achievement. Stakeholders were not
directly involved in the target-setting process, but their
interests, particularly around climate issues, influenced
the commitment.
Future developments have been considered while
setting the targets, such as the challenges associated with
internal growth and expansion of assets under manage-
1) EQT’s near-term science-based targets for 2030 and the net-zero ambition for
2040 are based on methodologies developed by the Science Based Targets
initiative, the Private Markets Decarbonization Roadmap (PMDR) and the Net
Zero Investment Framework (NZIF), and on current decarbonization scenarios,
data and estimates, all of which are subject to refinement over time. Delivery on
these targets is influenced by factors that are partly outside EQT’s control,
including the ability of portfolio companies to set and implement their own
science-based targets, real estate tenants’ energy usage, the pace of
technological innovation, and the development of climate-related policies,
carbon pricing in the jurisdictions where EQT and the EQT funds’ portfolio
companies and real estate assets operate. While the portfolio coverage targets
and ambitions, i.e. that 100% of in-scope portfolio companies have validated
science-based targets by 2030 and are on track to reach their targets by 2040,
partly rely on EQT’s active ownership, they are also ultimately dependent on
company management decisions, access to high-quality emissions data and
evolving methodologies and validation capacity at the Science Based Targets
initiative. For the real estate targets, average carbon emissions intensity is
shifting with the acquisition and exits of assets. For travel, the targets to reduce
emissions assume a continued shift towards low-carbon forms of travel,
increased use of digital collaboration tools, and the development and scaling of
sustainable aviation fuels and other technologies, which may not materialize at
the speed or scale currently anticipated. As a result, EQT’s progress towards
these targets and ambitions and the timing of achieving them may differ from
current projections if, for example, macroeconomic conditions, regulatory
developments, portfolio composition, data availability or methodological
changes materially differ from our current assumptions. EQT will review and,
where appropriate, update our targets and underlying assumptions over time to
reflect evolving science, standards and market conditions.
2) As part of the rebaselining project, the reported greenhouse gas emissions from business travel and office energy consumption for 2023 have been restated. For
more information, see paragraph Rebaselining.
3) For the purpose of EQT’s EUR 1,500 million sustainability-linked bonds issued in 2022, EQT must report the percentage of eligible EQT Funds’ private and listed
equity portfolios by EUR invested capital that have set SBTs. Investments where the EQT fund holds at least 25 percent of fully diluted shares and at least 24 months
have passed since the date of acquisition are eligible, but EQT Private Capital Asia portfolio companies are excluded. The coverage as of year-end 2025 based on
this definition is 80%.
4) Emissions from real estate investments presented for 2025 with a one-year reporting lag
Targets 2023
Base year
2025 2027
Target
2030
Near-term SBT
2040
Long-term ambition
Scope 1+2, Office energy consumption (market-based)
tCO2e 338 272 - -42% -90%
% renewable electricity usage 100 100 100
% of new office leases had at least
LEED-gold (or equivalent) certifications
100 78 100
Scope 3, Business travel 2)
tCO2e per average FTE 11 12 -11% -52% -90%
Targets 2023
Base year
2025 2027
Target
2030
Near-term SBT
2040
Long-term
ambition
Investments in portfolio companies (portfolio coverage)
% of eligible invested capital with SBTis
validated targets 3)
44 74 70 100 100
Investments in real estate
MW of on-site solar capacity 10 37 150
% of floor area with LED lighting 35 62 90% of
global
logistics
buildings to
have LED
lighting
installed
Average operational emissions per
square meter floor area (kg CO2e/m2)4)
28 30 - 53% reduction Net zero emissions
for operational
carbon
EQT AB GROUP
EQT FUNDS
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Climate change
===== SIDA 138 =====
ment, which may lead to increases in greenhouse gas
emissions or require an update of the targets. Additionally,
EQT acknowledges broader societal forces driving the
transition to renewable energy. These forces, including
shifts in regulatory factors, customer demand for greener
alternatives, and advancements in renewable technolo-
gies, 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 mitigating 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.
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
representative, EQT has conducted greenhouse gas
inventory reviews on a regular basis with support from
third-party advisors. The latest review resulted in a
rebaselining of EQT's science-based targets, 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 the acquisitions
of the Exeter Property Group (now known as EQT Real
Estate) in 2021 and Baring Private Equity Asia (now
known as EQT Private Capital Asia) in 2022.
Greenhouse gas removals and mitigation projects
E1-7
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 Principles
1) 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 multiplied by the
internal carbon price, which EQT uses to fund different
carbon removal and SAF 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) The principles are found here:
https://www.smithschool.ox.ac.uk/research/oxford-offsetting-principles
EQT AB Group's 2040 net zero ambition has been
developed using inspiration from global private
markets frameworks such as the Science-based targets
initiative (SBTi), Private Markets Decarbonization
Roadmap (PMDR) and the Net Zero Investment
Framework (NZIF). This ambition includes both EQT AB
Group and the EQT funds' investments. Residual
emissions for EQT AB Group are planned to be
neutralized by investing into best-practice carbon offset
project developers that focus on removing carbon from
the atmosphere, with robust storage permanence and
additionality.
Internal carbon pricing
E1-8
EQT AB Group has established an internal carbon fee
currently set at €100/tCO
2e, covering total emissions
from EQT AB Group's operations, including office
energy consumption (Scope 1 and 2) and business
travel emissions (Scope 3). The internal carbon fee is
calculated using methodologies in line with the
Greenhouse Gas Protocol. 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 and academia. The carbon price supports
decision-making by creating direct visibility of the
carbon costs associated with emission-generating
activities, for each P&L owner at EQT AB Group. While
the mechanism serves to set a carbon offset budget
and drive accountability within operations, it does not
reflect regional regulatory prices. Reported figures
may also be subject to data availability and estimation
limitations.
Disclosure on carbon credits
Carbon credits
cancelled in the
reporting year
Comparative
(2024) 2025
Total (tCO
2e) 20,983 3,574
Share from removal projects (%) 100% 100%
Of which biogenic (%) 86% 0%
Of which technologic (%) 14% 100%
Share from reduction projects: (%) 0% 0%
Share from quality standard:
Verra
86% 0%
Share from quality standard:
Puro.earth
0% 0%
Share from quality standard:
Carbon Standards International
2% 12%
Share from quality standard:
Other/unspecified 1) 12% 88%
Share from projects within the EU
(%) 5% 0%
Share of carbon credits that
qualify as corresponding
adjustments (%)
0% 0%
1 ) Un specified 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.
Carbon credits planned to be
cancelled in the future1)
Amount until
2028
Total (tCO2e) 14,592
1 ) P urchased carbon credits with a future cancellation year (based on existing
contractual agreements).
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===== SIDA 139 =====
Retrospective Milestones and target years
GHG emission (tCO 2e) Base Year
(2023) 2024 2025
Development
since last year
2030
target
2040
target
Annual %
target/
Base year
Scope 1 GHG emissions1)
Gross scope 1 17 17 16 -4%
Natural gas 17 17 16 -4%
Percentage of scope 1 GHG emissions from
regulated emission trading schemes (%) 0 0 0 -
Scope 2 GHG emissions2)
Gross location-based scope 2 1,117 1,251 1,211 -3%
Electricity 797 935 955 2%
District heating and cooling 320 316 256 -19%
Gross market-based scope 2 320 316 256 -19%
Electricity 0 0 0 -
District heating and cooling 320 316 256 -19%
Gross scope 1 & 2 market-based GHG
emission 338 333 272 -18% 251 43
Significant scope 3 GHG emissions 3)
Total gross indirect Scope 3 19,987 20,587 23,464 14%
Scope 3 categories
Business travel 19,987 20,587 23,464 14%
Air travel 18,569 19,261 22,282 16%
Travel with car, bus and train 299 392 303 -23%
Hotel 1,119 933 880 -6%
Total GHG emissions
Total GHG emissions (incl location-based
scope 2 emissions) 21,121 21,855 24,692 13%
Total GHG emissions (incl market-based
scope 2 emissions) 20,324 20,920 23,736 13%
Emission intensity
Total GHG emissions per total revenue4) (tCO2eq/mEUR) 2024 2025 Development since last year
Location-based 8.2 9.4 14%
Market-based 7.9 9.0 14%
EQT AB Group: Gross Scopes 1, 2, 3 and total greenhouse gas (GHG) emissions
E1-6
EQT funds’ investors receive detailed reporting on
individual portfolio companies’ and assets’ greenhouse
gas emissions and other relevant sustainability
indicators through regular fund reporting, with the
scope of reporting varying by strategy. This provides
transparency on portfolio-level climate performance
and progress over time.
1) Scope 1 GHG emissions — Scope 1 emissions include Natural Gas usage for
heating purposes for two EQT offices. 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.
2) 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. While there is a degree of
uncertainty stemming from use of estimates in general, this method is applied to a
limited extent and overall, the method is assessed as the best available proxy.
Shared offices where EQT does not have operational control and utility data is not
available are not included. Small offices with few FTEs, where energy consumption
is considered negligible and data collection is unfeasible are not included.
Calculations are based on data from the first nine months of the reporting year.
For the remaining three months, EQT applies estimations derived from the
corresponding period of the previous year, adjusted for known changes in energy
consumption patterns. 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. The emission factors applied by EQT AB Group to calculate GHG emissions
do not separate the percentage of biomass or biogenic CO 2.
During preparations for the 2025 reporting cycle, internal controls identified
errors in supporting documents for a few offices, affecting historical Scope 1 and
2 data. Hence, Scope 1 and 2 GHG emissions for 2023 and 2024 have been
restated. The lower baseline does not affect the 2030 and the 2040 targets as they
are percentage-based reduction targets. However, the absolute emissions targets
for Scope 1 and 2 have decreased.
3) Scope 3 GHG emissions — Current reported Scope 3 inventory is limited to
emissions from Business Travel (Scope 3 - Category 6). 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 (2022) have then been applied separating Long and Short haul emission
factors, and radiating forcing has been applied. For hotels, emissions factors from
DEFRA (2023) and the Hotel Footprinting tool have been used. Activity data
includes the number of hotel nights and spend on accommodation. Ground travel
emissions (travel with car, bus, and train) are estimated from spend by using
appropriate spend-to-distance benchmarks and applying CO 2e per km emission
factors from DEFRA and IEA (2025). As the emission factors for ground travel have
been updated, replacing Quantis tool, ground travel emissions for 2023 and 2024
have been restated as the new emission factors were lower, to allow for
comparability.
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. A screening of all 15 Scope 3 categories was
conducted in 2024, supported by a third-party advisor, to assess significant
categories ahead of the SBTi resubmission. Although emissions from Purchased
goods and services (category 1) were comparable in size to Business travel, they
were deemed not representative of EQT AB Group's activities as they were
exclusively spend-based and primarily stemmed from professional services
related to transactions executed by EQT funds. Remaining scope 3 categories
were either not significant (category 3, 5, 7) or not applicable (category 2, 4,
8-14). EQT does not report Scope 3 Category 15 emissions associated with its
investments in this report. The vast majority of the EQT funds collect GHG
emissions data from the underlying portfolio companies and assets, and report
this in fund reports that are provided to the EQT funds’ investors later in the year.
In addition to advising and managing the EQT funds, EQT AB Group also invests in
the EQT funds. While these investments vary in size, each investment represents
less than one percent of the total size of the EQT fund. Based on the Technical
Guidance for Calculating Scope 3 Emissions in accordance with the GHG Protocol,
which allows scoping out small equity investments from GHG emissions reporting,
EQT does not consider this a significant category of GHG emissions. The reporting
would not provide stakeholders with a meaningful view of the climate footprint of
the EQT funds’ portfolio companies and assets. As further detailed above, EQT has
set near-term science-based targets validated by the SBTi and has a long-term
net zero ambition for 2040. The targets are structured in accordance with SBTi’s
private equity sector guideline methodology, which is based on portfolio
companies setting their own science-based targets. This methodology reflects the
nature of the private equity sector’s business model, with constantly changing
portfolio composition and a focus on the development of each individual portfolio
company. Please see above for progress on EQT AB Group’s science-based
targets as of the end of the reporting period.
1,2,3) Global Warming potentials — All greenhouse gas emissions are calculated
in metric tons of pollutant and converted to metric tons of CO 2 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.
1,2,3) 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 data availability, modeling
approaches and parameter inputs like activity data and emission factors. While
some uncertainties, 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. EQT
uses emission factors from widely recognized sources. These factors were chosen
for their credibility, relevance to EQT's operations, and consistency with
international best practices.
4) The greenhouse gas intensity is based on total revenue, which can be found in
the consolidated financial statement, section Revenues and net income.
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===== SIDA 140 =====
TURNOVER AND OPEX
EQT AB Group's revenues relate to management fees,
carried interest and investment income. While sustaina -
bility is an integrated part of EQT's operating model, a
share of Taxonomy-eligible activities cannot be directly
derived from management fees. Carried interest 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.
EQT AB Group does not consider expenses related to
Opex to be material to its business model, as EQT
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. These
expenses are considered negligible.
CAPEX
EQT AB Group's Capex as defined by the EU Taxonomy
consists of intangible assets related to business
combinations, 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
premises 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 for climate change
mitigation (7 .7) and 2) meeting the do no significant
harm criteria through a documented climate risk and
vulnerability assessment, and has an action plan to
mitigate potential identified material physical climate
risks as well as the minimum safeguards. The request
EU Taxonomy statement
was only sent out to landlords in the EU, as it is an
EU-based regulation, accounting for around 68 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.
Proportion of turnover, CapEx, OpEx from products or services associated with Taxonomy-eligible or Taxonomy-aligned economic activities
Financial Year 2025
KPI (1) Total
Propotion of
Taxonomy
eligible
activities
Taxonomy
aligned
activities
Proportion of
Taxonomy
aligned
activities
Breakdown by environmental objectives
of Taxonomy aligned activities
Proportion of
enabling
activities
Proportion of
transitional
activities
Not assessed
activities
considered
non-material
Taxonomy
aligned
activities in
previous
financial year
2024
Proportion of
Taxonomy
aligned
activities in
previous
financial year
2024
Climate change
mitigation
Climate change
adaptation
Water
Circular
Economy
Pollution
Biodiversity
EUR m % EUR m % % % % % % % % % % EUR m %
Turnover 2,632.4 - - - - - - - - - - - - - -
CapEx 87.0 94.3% 2.2 2.6% 2.6% - - - - - - - - 0 0
OpEx - - - - - - - - - - - - - -
Proportion of CapEx from products or services associated with Taxonomy-eligible or Taxonomy-aligned economic activities
Reported KPI (CapEx)
Financial Year 2025
Economic
Activities Code
Taxonomy eli-
gible KPI
(Proportion of
Taxonomy
eligible
CapEx)
Taxonomy
aligned KPI
(monetary
value of
CapEx)
Taxonomy
aligned KPI
(Proportion of
Taxonomy
aligned
CapEx)
Breakdown by environmental objectives
of Taxonomy aligned activities
Enabling
activity
Transitional
activity
Proportion of
Taxonomy
aligned in
Taxonomy
eligible
Climate change
mitigation
Climate change
adaptation
Water
Circular
Economy
Pollution
Biodiversity
% EUR m % % % % % % % (E) (T) %
Acquisition and ownership of buildings CCM 7.7 94.3% 2.2 2.6% 2.6% - - - - - - - 2.7%
Sum of alignment per objective 2.6% - - - - -
Total KPI (CapEx) 94.3% 2.2 2.6% 2.6% - - - - - - - 2.7%
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===== SIDA 141 =====
Own workforce
142 Own workforce
142 — Equal treatment and opportunities for all
142 — Employee development, health and well-being
142 — Interaction with strategy and business model – People at the
core of EQT's success
143 Policies and guidelines
143 — Code of Ethics
143 — EQT Diversity and No-Harassment Guidelines
143 — EQT Global Workplace Health and Safety Guideline
143 Processes for engaging with own workers
143 — Employee engagement
144 — Trainings and awareness
144 — Affiliation networks
144 Processes to remediate negative impacts and channels to
raise concerns
144 — Measures against violence and harassment
145 — Well-being and work-life balance
145 — Equal treatment and opportunities for all
145 Actions
145 — Gender equality and equal pay
145 — Training and skills development
146 — Well-being and work-life balance
146 — Other initiatives
147 Performance
# 0 3.3
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===== SIDA 142 =====
Own workforce
S1, ESRS 2 SBM-3
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. It is EQT's view that an
inclusive culture has a positive impact as it may unlock
opportunities, for example, better collaboration,
stronger innovation, and superior investment outcomes.
Diversity aspects have generally been lagging in the
financial industry, which has the potential to negatively
impact EQT AB Group through a more homogenous
culture, stifle innovation and make EQT AB Group 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 back -
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
* EQT Specific
INTERACTION WITH STRATEGY AND BUSINESS
MODEL — PEOPLE AT THE CORE OF EQT'S SUCCESS
As people1) are at the core of EQT's success, EQT AB
Group carefully assesses the relationship between
material impacts, risks and opportunities 2) to ensure
that the strategy remains adaptive, fostering sustaina -
ble growth. As a people-centric business, factors such
as well-being, skills development and employee
engagement may influence financial performance.
Motivated and engaged employees drive productivity,
innovation, and performance. The below impacts 3) are
connected to EQT's business model as well as strategy,
and are taken into account when the talent strategy is
set each year:
— Negative material impacts on the own workforce 4)
may arise from challenges such as difficulties in
grounds, and experiences which can enhance 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
Employee engagement is important for both physical
and mental well-being, and is a key driver of perfor -
mance and continuous development. EQT AB Group
emphasizes employee development and has a positive
impact by actively supporting 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 has identified this as an area with potential
negative impact. There is a financial risk from inade -
quate employee development and well-being, which
could affect performance as well as the ability to
attract and retain talent. EQT AB Group is committed to
implementing initiatives that positively impact its
workforce. For example, initiatives based on EQT Voice
2025 to enhance employee engagement is seen as an
opportunity to drive performance, continue develop -
ment, and ensure employee health. EQT Voice is EQT's
annual employee engagement surveys where employ -
ees respond confidentially.
1) Permanent and fixed-term employees within EQT AB Group. EQT AB Group
does not have non-guaranteed hours employees.
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 was 64 at the end of the period 2025.
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.
People are EQT’s most important asset and this
section describes how EQT cultivates high-perform -
ing teams by fostering an environment where every
individual feels valued, empowered, and motivated
to drive business impact.
EQT AB Group fosters an inclusive culture
that seeks to encourage people to be
themselves. This allows people to bring their
best ideas to the table and fosters high-
performing teams.
implementing inclusion programs or promoting
mental well-being. For EQT AB Group, this could
potentially create challenges in attracting and
retaining the best talent, which could ultimately have
an impact on financial performance.
— Positive impacts may stem from EQT AB Group
promoting equal opportunities and fostering a culture
that embraces diverse backgrounds and experiences.
This could lead to a financial opportunity for EQT AB
Group through potentially improved innovation,
better decision-making and improved performance.
Additionally, EQT places a strong focus on employee
development and engagement, which EQT believes
can lead to stronger financial performance. For more
information regarding the actions taken to promote
these positive impacts, please see the section Actions.
For more information about 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.
142
#01 This is EQT #02 Financial statements #03 Sustainability statement #04 Corporate governance #05 Additional information
Own workforce
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