E4 – Biodiversity and Ecosystems

Biodiversity is under pressure, and the restoration of biodiversity and ecosystems is crucial in terms of aligning with the Paris Agreement and safeguarding the foundation of the companies Danica invests in. This section describes the work related to Danica's properties and Danica's two biodiversity-related targets. The first target relates to active ownership and is that Danica is to have conducted 30 engagements with 30 portfolio companies by the end of 2025. The second target is that Danica is to launch three to five nature-enhancing projects per year. Both targets have been achieved.

To minimize and restore the impacts of mining activities on biodiversity, including local fauna and flora species, Hydro has developed a reforestation program to mitigate forest removal and aims to start restoration of mined areas that are released for rehabilitation within two hydrological seasons. In 2023, Hydro increased its no net loss ambition for biodiversity for the bauxite mine. In addition to achieving no net loss for the future expansion of the mine, Hydro will also include impacts that have occurred since 2020 for the existing mining footprint.

Biodiversity policies are integrated into Danica's overall sustainability and responsible investment framework, supporting the goal of protecting customers' investment portfolios while minimising negative impacts on biodiversity and ecosystems.

RSG has policies related to biodiversity and ecosystems recognising its role as owner and manager of extensive land areas. The company acknowledges that land use for safe airport operations can influence biodiversity, and that emissions and pollution from value chain activities impact biodiversity. RSG is enhancing knowledge of the global biodiversity crisis and exploring how to directly contribute to biodiversity enhancement on premises without increasing operational risks. The nature permit describes steps the aviation sector must take to reduce NOx emissions that negatively impact nature, with maintaining this permit crucial for the license to operate. RSG works to preserve ecosystems while operating airports safely, recognising that airport land is part of greater ecosystems. Policies focus on balancing operational requirements with ecosystem preservation and enhancement.

Actions and resources related to biodiversity and ecosystems include Danica's commitment to conducting engagement activities with portfolio companies and launching nature-enhancing projects. The first target relates to active ownership and is that Danica is to have conducted 30 engagements with 30 portfolio companies by the end of 2025. The second target is that Danica is to launch three to five nature-enhancing projects per year. Both targets have been achieved.

RSG has implemented actions and allocated resources for biodiversity and ecosystem preservation. In 2024, the company continued efforts to maintain the weasel population at Schiphol as natural and eco-friendly pest control while beginning capture of American crayfish, an invasive species threatening the local ecosystem and damaging ditch banks. RSG collaborates with partners to reduce CO2e emissions and pollutants, contributing to biodiversity preservation both on airport premises and throughout the value chain. The company plans to establish a biodiversity baseline in 2025 by collaborating with third-party experts, aiming to enhance biodiversity resilience to climate change while actively supporting and preserving ecosystems.

Danica has two biodiversity-related targets. The first target relates to active ownership and is that Danica is to have conducted 30 engagements with 30 portfolio companies by the end of 2025. The second target is that Danica is to launch three to five nature-enhancing projects per year. Both targets have been achieved.

To address material impacts to biodiversity through land use change, Hydro has a 1-to-1 rehabilitation target for areas suppressed by its bauxite mining activities in Hydro's only mine located in Paragominas, Brazil, within two hydrological cycles. Hydro also set an ambition of no net-loss of biodiversity for its bauxite mine, from a 2020 baseline, and no net-loss of biodiversity in new projects.

Additionally, we have sharpened our focus on the impact of our operations on nature and biodiversity, setting an ambition to halt nature loss across our value chain by 2033 and achieving nature-positive status by 2045.

RSG has established targets for biodiversity and ecosystem management. In 2025, Schiphol Group will establish a biodiversity baseline by collaborating with third-party experts, with the aim of enhancing the resilience of biodiversity to climate change while actively supporting and preserving ecosystems. The company targets maintaining and improving natural pest control through species like weasels while controlling invasive species that threaten local ecosystems. RSG aims to contribute directly to biodiversity enhancement on its premises without increasing risks related to local fauna. Targets include compliance with nature permit requirements to maintain the license to operate.

Impact metrics related to biodiversity and ecosystems change are monitored as part of Danica's biodiversity targets achievement, including the number of engagements with portfolio companies and nature-enhancing projects launched.

Hydro targets no net loss of biodiversity for its bauxite mine in Paragominas, Brazil, from a 2020 baseline, and no net loss of biodiversity in new projects. All suppressed land that has been released for rehabilitation prior to 2023, has been rehabilitated within the target of two years hydrological cycles, and a total of 292 hectares started rehabilitation in 2024.

Biodiversity refers to the variability of life at genetic, species, and habitat levels. Globally, biodiversity is declining, and more action is needed to reverse this trend. As one of the world's largest private forest owners, we have a responsibility to protect biodiversity across all our operations. Sustainable forest and plantation management ensures the long-term availability of wood while preserving ecosystems and biodiversity, crucial for forest resilience. Our biodiversity initiatives aim for a net positive impact, with action programmes in place until 2030 to enhance biodiversity at the species, habitat, and landscape levels. Stora Enso has developed a science-based framework using technology and data to forecast and enhance biodiversity impacts. The company's partnership with the International Union for Conservation of Nature (IUCN) will offer expert insights to further refine and validate this framework. 99% of the land we own or manage was covered by forest certification schemes.