Nykredit

The Nykredit Group's governance structure is based on a clear separation of responsibilities between the Board of Directors and the Executive Board. The Board of Directors is responsible for the overall and strategic management of the company while the Executive Board is responsible for the day-to-day management. Following the Annual General Meeting held on 21 March 2024, the Board of Directors includes Merete Eldrup as Chair and Preben Sunke as Deputy Chair as well as John Christiansen, Michael Demsitz, Per W. Hallgren, Jørgen Høholt, Torsten Hagen Jørgensen, Vibeke Krag, Mie Krog and Lasse Nyby. In addition, the Board of Directors includes the staff-elected members Olav Bredgaard Brusen, Rasmus Fossing, Kathrin Helene Hattens, Peter Kofod and Inge Sand. The Group Executive Board includes Michael Rasmussen, Tonny Thierry Andersen, David Hellemann, Anders Jensen and Pernille Sindby. The Board of Directors and the Executive Board together form the management of Nykredit.

Information about remuneration is provided on page 155. Nykredit has clear internal procedures for managing upcoming or new regulation with the aim of ensuring a well-defined division of tasks and responsibilities across the organisation and providing timely, appropriate involvement of Nykredit's various management levels.

Nykredit is a Danish financial services group serving personal customers, business customers and institutional customers in Denmark. The Group's business activities are predominantly in Denmark and comprise banking, mortgage lending, estate agency services, administration and management of investment funds, leasing and insurance mediation. A central part of our business model and value chain is our partnerships through Totalkredit and Sparinvest. Together with the business partners in the Totalkredit partnership, Nykredit arranges mortgage loans across the country. In Sparinvest, Nykredit collaborates with a large number of banks across Denmark on the distribution of wealth and investment products to personal and business customers. The Group's upstream value chain includes a number of suppliers of goods and services for the daily operation of Nykredit's offices, such as IT systems. The Nykredit Group strives to have a strong capital structure and wants to be able to maintain its business activities throughout Denmark regardless of fluctuations in economic trends. Nykredit's 3,900 employees are tasked with the development and sale of financial products as well as customer advisory services. Being customer-owned, Nykredit differs significantly from other Danish SIFIs as the Group pays dividend to its owners, including our main owner, Forenet Kredit. Forenet Kredit can then make contributions to the Nykredit Group, which Nykredit and Totalkredit can give back to their customers. It is our customer-ownership structure that sets the Nykredit Group apart from other comparable financial institutions by highlighting our unique business model and approach to value creation.

Key stakeholders include Politicians, civil servants and authorities through formal and informal written enquiries, meetings etc, preparation of consultation responses, and collaboration with authorities and politicians on new initiatives, studies and reports when they request views and knowledge etc from Nykredit. Trade organisations through coordination of shared viewpoints and advocacy via Nykredit's representation on boards, committees, working groups etc of trade organisations, cooperation on joint initiatives and proposals, and sectoral collaboration on joint solutions. Through interest representation, Nykredit will contribute constructively to the drafting of new regulation (such as acts, technical standards, executive orders, guidelines and supervisory decisions or market standards). For this purpose, Nykredit is in close, ongoing dialogue with policymakers and authorities, ensuring that Nykredit is aware of their expectations and requests for Nykredit's business. Nykredit participates in representing shared interests on behalf of the Danish financial sector in areas where, as part of the sector, Nykredit can make a positive contribution to society. Ongoing coordination takes place across Nykredit's organisation and management in order to provide information on the views and interests of the relevant stakeholders. Nykredit has clear internal procedures for managing upcoming or new regulation with the aim of ensuring a well-defined division of tasks and responsibilities across the organisation and providing timely, appropriate involvement of Nykredit's various management levels.

Nykredit's ESG commitment is centred around the themes: 'A greener and prepared Denmark' (E), 'A customer-owned Nykredit' (S) and 'Responsible business practices' (G). Under the theme 'A greener and prepared Denmark', material impacts, risks and opportunities related to climate change mitigation and adaptation are addressed. Topics include Climate change mitigation, Climate change adaptation, Carbon emissions and energy consumption. Under the theme 'A customer-owned Nykredit', material impacts, risks and opportunities related to non-discrimination of customers and employees, privacy and the right to adequate housing are addressed. Topics include Home loans all across Denmark, Right to privacy, Equal treatment and opportunities for all. Under the theme 'Responsible business practices', material impacts, risks and opportunities related to Nykredit's efforts to promote a healthy corporate culture, combat financial crime and ensure due diligence in the value chain are addressed. Topics include Healthy corporate culture, Combating financial crime, Due diligence in the value chain.

An overview of ESRS disclosure requirements is provided on pages 120-128. The Nykredit Group's statutory sustainability reporting is covered on pages 30-128.