Samhällsbyggnadsbolaget i Norden : Sustainable Bond Developments – ANNUAL REPORT – EXTERNAL REVIEW 2024

REPORT REVIEW

Samhällsbyggnadsbolaget I Norden AB

Sustainable Bond Report

Sustainable Bond Impact Report SBB Norden

19 April 2024

VERIFICATION PARAMETERS

Type(s) of reporting

Relevant standard(s)

Scope of verification

• Sustainable Bond Impact Report
• Harmonized Framework for Impact Reporting (HFIR), updated June 2023, as administered by International Capital Market Association (ICMA)
• Harmonized Framework for Impact Reporting for Social Bonds (HFIRSB), updated June 2023, administered by the International Capital Market Association (ICMA)
• SBB Norden's Sustainable Bond Impact Report (as of April 4, 2024)
• SBB Norden's Sustainable Financing Framework (as of October 28, 2020)
• Bond(s) identification:

Green Bonds

ISIN	Bond Maturity	Issuance Amount
SE0012256741	14.02.2024	SEK 187.5m
SE0014965919	12.04.2024	SEK 321.25m
XS2111589219	30.01.2027	SEK 600m
Social Bonds
ISIN	Bond Maturity	Issuance Amount
XS2271332285	14.12.2028	EUR 700m
XS2275409824	18.12.2025	SEK 145m

© 2024 | Institutional Shareholder Services and/or its affiliates

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Lifecycle

Validity

XS2346224806	26.11.2029	EUR 950m
XS2438632874	08.02.2024	EUR 558.83m
XS2461738770	11.04.2025	EUR 260m
Social Hybrid
ISIN	Bond Maturity	Issuance Amount
XS2010028186	30.01.2027	EUR 439.3m

• Post-issuanceverification
• As long as no changes are undertaken by the Issuer to its Sustainable Bond Impact Report as of April 4, 2024

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C O N T E N T S

SCOPE OF WORK	4
ASSESSMENT SUMMARY	5
REPORT REVIEW ASSESSMENT	6
PART I: ALIGNMENT WITH COMMITMENTS SET FORTH IN THE SUSTAINABLE FINANCING
FRAMEWORK	6
PART II: ASSESSMENT AGAINST THE ICMA HARMONIZED FRAMEWORK FOR IMPACT
REPORTING FOR GREEN AND SOCIAL BONDS	9
PART III: DISCLOSURE OF PROCEEDS ALLOCATION AND SOUNDNESS OF THE IMPACT
REPORTING INDICATORS	18
ANNEX 1: Methodology	25
ANNEX 2: Quality management processes	26
About this Report Review	27

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SCOPE OF WORK

Samhällsbyggnadsbolaget I Norden AB ("the Issuer" or "SBB Norden") commissioned ISS- Corporate to provide a Report Review1 on its Sustainable Bond Impact Report by assessing:

1. The alignment of SBB Norden's Sustainable Bond Impact Report with the commitments set forth in SBB Norden Sustainable Financing Framework (as of October 28, 2020).2
2. SBB Norden's Sustainable Bond Impact Report - benchmarked against ICMA Harmonized Framework for Impact Reporting (HFIR), updated June 2023, and ICMA Harmonized Framework for Impact Reporting for Social Bonds (HFIRSB), updated June 2023.
3. The disclosure of proceeds allocation and soundness of reporting indicators - whether the impact metrics align with best market practices and are relevant to the Sustainable Bond issued.

1. A limited or reasonable assurance is not provided on the information presented in SBB Norden Sustainable Bond Impact Report. A review of the use of proceeds' allocation and impact reporting is solely conducted against ICMA's Standards (Green Bond/Social Bond Principles) core principles and recommendations where applicable, and the criteria outlined in the underlying Framework. The assessment is solely based on the information provided in the allocation and impact reporting. The Issuer is responsible for the preparation of the report including the application of methods and internal control procedures designed to ensure that the subject matter information is free from material misstatement.
2. The Framework was assessed as aligned with the Green Bond Principles/Social Bond Principles as of November 24, 2020.

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ASSESSMENT SUMMARY

REVIEW	SUMMARY	EVALUATION
SECTION

Part 1.

Alignment withthe Issuer's commitments set forth in theFramework

SBB Norden's Sustainable Bond Impact Report meets the Issuer's commitments set forth in the Sustainable Financing Framework. The proceeds have been used to (re)finance Green Buildings, Energy Efficiency, Access toAligned Essential Services and Affordable Housing in accordance

with the eligibility criteria defined in the Framework.

Part 2.	The Sustainable Bond Impact Report is in line with
Alignment with	ICMA's HFIR. The Issuer follows core principles and
where applicable key recommendations.
the HFIR and		Aligned
HFIRSB	The Sustainable Bond Impact Report is in line with
			ICMA's HFIRSB. The Issuer follows core principles and
			where applicable key recommendations.
	Part 3.		The allocation of the bond's proceeds has been
	Disclosure of		disclosed, with a detailed breakdown across different
		eligible asset as proposed in the Framework.3
	proceeds
	allocation and		SBB Norden's Sustainable Bond Impact Report has	Positive
	soundness of		adopted an appropriate methodology to report the
	reporting		impact generated by providing comprehensive
	indicators		disclosure on data sourcing, calculations methodologies
			and granularity reflecting best market practices.

3 The assessment is based on the information provided in the Issuer's report. The Issuer is responsible for the preparation of the report including the application of methods and procedures designed to ensure that the subject matter information is free from material misstatement.

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REPORT REVIEW ASSESSMENT

PART I: ALIGNMENT WITH COMMITMENTS SET FORTH IN THE SUSTAINABLE FINANCING FRAMEWORK4

The following table evaluates the Sustainable Bond Impact Report against the commitments set forth in SBB Norden's Sustainable Financing Framework, which are based on the core requirements of the Green Bond Principles/Social Bond Principles as well as best market practices.

	GBP/SBP			OPINION			ALIGNMENT
										WITH
										COMMITME
										NT
	1.	Use of			SBB Norden confirms to follow the Use of Proceeds'
			description provided by SBB's Sustainable Financing
			Proceeds
					Framework. The report is in line with the initial
						commitments set in SBB's Sustainable Financing
						Framework. The proceeds have been used to (re)finance
						Green Buildings, Energy Efficiency, Access to Essential
						Services and Affordable Housing.
						The Issuer's green and social categories align with the
						project categories and are in accordance with the
						eligibility criteria set in the SBB's Sustainable Financing
						Framework. Environmental and social benefits at the
						asset level are described.
						The Issuer discloses the amount of proceeds allocated at
						portfolio level in the impact report and confirms that
						100% of the proceeds (SEK 1,108.75 m for Green Bonds,
						EUR 2,463m and SEK 145m for Social Bonds, and EUR 439
						for Hybrid Bond) are allocated to refinancing, in line with
						the best market practices. Moreover, the Issuer did not
						finance any project from the exclusion list defined in the
						Framework.
2.	Process for		SBB Norden confirms to follow the Process for Project
	Evaluation and Selection description provided by SBB
			Project
				Norden's Sustainable Financing Framework. The report is
			Evaluation
				in line with the initial commitments set in	SBB's

4 SBB Sustainable Financing Framework was assessed as aligned with the GBP/SBP (as of October 28, 2020) as of November 24, 2020.

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and

Sustainable Financing Framework. The selection of

Selection

Eligible Green

and Social

Assets

is managed by a

dedicated Sustainable Financing Committee consisting

of SBB Chief Executive Officer, SBB Chief Financial Officer,

SBB Technical Manager, SBB Head of Sustainability, and

SBB Head of Finance. A list of Eligible Assets is kept by

the Sustainable Financing Committee and the Head of

Finance is responsible for keeping this list up to date. The

list of Eligible Assets is monitored on a regular basis as

long as there are Sustainable Financing Instruments

outstanding to ensure that the proceeds are sufficiently

allocated to Eligible Assets and that these assets

continue to meet the Eligibility Criteria described in the

Use of Proceeds section.

The projects selected are defined and structured in a

congruous manner. The Issuer ensures compliance with

the Eligibility Criteria. ESG risks associated with the

project categories are identified and managed through

an appropriate process.

3.

Manageme

SBB

Norden

confirms to

follow

the Process

for

Management of Proceeds description provided by SBB

nt of

Norden's Sustainable Financing Framework. The report is

Proceeds

in line with the initial commitments set in SBB's

Sustainable Financing Framework.

The proceeds collected represent 100% of the amount

allocated to eligible projects, with no exceptions.

Unallocated proceeds are equal to 0%. The proceeds are

tracked in an appropriate manner and attested in a

formal internal process.

Moreover, the Issuer disclosed the balance of

unallocated proceeds within the frequency defined in the

Framework, in line with best market practice.

4.

Reporting

SBB

Norden's

Sustainable

Bond

Impact Report

is

coherent with the Reporting description provided by SBB

Norden's Sustainable Financing Framework. The report is

in line with the initial commitments set in SBB's

Sustainable Financing Framework. The Issuer annually

published an Allocation and Impact Report on its Green

and Social Bonds.

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				The sections "Allocation Reporting" and "Impact
				Reporting" of the Sustainable Bond Impact Report
				comply with the pre-issuance commitment expressed in
				the Framework. The report is intended to be publicly
				available.5
				Further analysis of this section is available in Part III of this
				report.
	5. Verification			SPO-ISS Corporate has provided a Second Party Opinion (SPO) on SBB
			Norden's Sustainable Financing Framework on November 24, 2020.

5 SBB Norden Sustainable Bond Impact Report:https://corporate.sbbnorden.se/en/sustainable-bonds/

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PART II: ASSESSMENT AGAINST THE ICMA HARMONIZED FRAMEWORK FOR IMPACT REPORTING FOR GREEN AND SOCIAL BONDS

FOR GREEN BONDS

Reporting is a core component of the Green Bond Principles and transparency is of particular value in communicating the expected and/or achieved impact of projects in the form of an annual reporting. Green bond Issuers are required to report on both the use of green bond proceeds, as well as the environmental impacts at least on an annual basis until full allocation or maturity of the bond. ICMA's Harmonized Framework for Impact Reporting (HFIR) has been chosen as benchmark for this analysis as it represents the most widely adopted standard.

The table below evaluates SBB Norden Sustainable Bond Impact Report against ICMA HFIR.

CORE PRINCIPLES

	ICMA HFIR			SUSTAINABLE BOND DEVELOPMENTS				ASSESSMENT
				SBB has reported within one year from issuance
				since 2021. SBB Norden has not issued any
				Green Bonds in 2023 but has reported the total
Reporting on an		amount of	outstanding Green	Bonds	which
	amount to SEK 1,011,250,000 as of December 31,
annual basis
	2023, originating from bonds issued in 2019 and
				2020. All the proceeds have been fully allocated.
				The report will be available on SBB Norden's
				website.6
				The assessment and measurement of the
				impacts generated by SBB Norden Green Bonds
				covered the following areas:
	Illustrating the			▪ Energy Use (kWh/m2);
	environmental impacts			▪ Estimated annual GHG emissions
	or outcomes			reduced or avoided for buildings (tCO2e);
				▪ Green buildings certification and degree
				of	certification	(Miljöbyggnad,
				Miljöbyggnad iDrift, Breeam In-Use and
				Energy Class A).

6 SBB Norden Sustainable Bond Impact Report:https://corporate.sbbnorden.se/en/sustainable-bonds/

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	SBB Norden has respected its ESG risk
	management process in line with its framework.
	Sustainability-related risks are integrated into
	ordinary risk management, which is handled by
	the management team, with the CEO being
	ultimately responsible. A thorough risk analysis
	regarding climate-related issues at the property
	level was completed in 2021 and the risk analysis
	was updated in 2022 to include properties
	recently taken possession of and new
ESG Risk Management	knowledge regarding the risks. Both physical
	and regulatory risks were assessed. SBB has also
	produced an independent report accounting for
	climate-related risks and opportunities in
	accordance with the Task Force on Climate-
	Related	Financial	Disclosures	(TCFD)'s
	recommendations.	The report is	revised
	annually, and the most current version is
	available on SBB's website.7 The assets assessed
	as high or very high risk are considered for
	divestment.
Allocation of proceeds	SBB Norden has reported all its Green Bonds -
- Transparency on the	related cash-flows in one currency (Swedish
currency	Krona (SEK)).

RECOMMENDATIONS

ICMA HFIR	SUSTAINABLE BOND DEVELOPMENTS		ASSESSMENT
Define and	The entirety of proceeds has been allocated to
disclose period	Green Assets. The Issuer has not added nor
and process for	removed any seets. In the future, assets can be
Project Evaluation	removed from, or added to, the eligible asset
and Selection	portfolio when needed (i.e., sale of an asset
	allocated to Sustainable Bonds). However, these
	would be replaced by a new asset that comply
	with the eligibility criteria set forth in the
	Framework.
	The Issuer followed a transparent process for
	selection and evaluation of Eligible	Green

7 SBB Norden Climate-related Risks and Opportunities TCFD Report 2023: https://corporate.sbbnorden.se/en/wp- content/uploads/sites/2/2021/09/tcfd-riskinventering-rapport-2023-eng.pdf

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