Insight 3: Crisis Response & Impact on Sustainability Initiatives

crisis response & impact on SUSTAINABILITY initiatives

Insight 3

Covid-19 has resulted in growing recognition for pressing global challenges beyond this pandemic, creating a momentum for corporate agendas focused on climate risk management, social justice reform, and beneficial collaborations.

Study Phase I pointed to a reported concern for the pandemic overshadowing focus on, and the addressing of, other pressing global issues, such as climate change and social justice challenges. Interestingly, Study Phase II shows marked contrast and rather, respondents across the board report Q4 Q4aQ5 sensing noticeably increased awareness for other pressing global issues beyond the pandemic, and

Company name: In which country is your company currently headquartered?Please specify which country your company is currently headquartered in: How long has your company had a presence in the U.S.?where climate risk management and increased collaborations are increasingly prioritized. Moreover, 0 Rookie Startups AB Sweden Less than 1 year several study respondents refer to the pandemic as an important momentum builder enabling a greener 0 0 Telia PHD Media social justice focus and tool for recovery. Sweden Other 10+ years UK10+ years 0 Prime Weber Shandwick Sweden My company does not have a presence in the U.S.“The transition to a more sustainable society is more attainable now.” - Vice President/General Manager, 0 IDUN MineralsFinancial Services Company Sweden 1-4 years Study Phase II findings confirm this development, with almost half of all respondents (46%) having launched new initiatives targeting one or more of the United Nations’s Sustainable Development Goals (SDGs) since the outbreak of the pandemic.

0 Aggancio Other United Kingdom 5-10 years 0 Asite LLC Other UK5-10 years 0 Axel Johnson Inc. United States 10+ years 0 Ernst & Young AB Sweden 10+ years 0 INVEST IN SKÅNE AB Sweden My company does not have a presence in the U.S.

0 KPMG LLP United States

10+ years 0 Organofuel Sweden Sweden Less than 1 year Survey question: How has your company’s efforts to address issues related to climate 0 SnackCo of America (Utah Chips C) United States 10+ years change and social justice changed, as compared to before the Covid-19 outbreak?

0 Stora Enso North America 0 Svenska Handelsbanken AB

1 2 3

0 Volvo Car USA

Climate Change

0 KARV Communications 0 AstraZeneca 0 beate karlsson

climate

5%

0 Bonnier Sweden Sweden Q1 10+ years Q4

Sweden United States Company name: 0 Rookie Startups AB 0 Telia

10+ years 10+ years SOCIAL JUSTICE

In which country is your company currently headquartered? Sweden

5-10 years

Other 0 PHD Media

Sweden0 Great Britain 10+ years My company does not have a presence in the U.S. Sweden Other Prime Weber Shandwick Sweden social justice 2% Sweden0 IDUN Minerals 10+ years Sweden

0 BTS USA inc. 0 Changes Music 0 Emerging Media 0 FirstVet Inc. 0 GIANT Innovation 0 IPscreener

47%

0 Kreab Worldwide 0 Linklaters 0 Nasdaq 0 The Lexington Company AB

1 2 3 Sweden United States 0 Aggancio 0 Asite LLC

United States 0 Axel Johnson Inc. 40% 48%

Sweden United States 0 Ernst & Young AB 0 INVEST IN SKÅNE AB 10+ years 10+ years 10+ years Less than 1 year 5-10 years Other Other United States Sweden Sweden

Sweden0 KPMG LLP 1-4 years

United States58% Sweden My company does not have a presence in the U.S. Other UK10+ years United States 10+ years 0 Organofuel Sweden Sweden 0 SnackCo of America (Utah Chips C) United States 0 Stora Enso North America Sweden Sweden0 5-10 yearsSvenska Handelsbanken AB 1 2 3 Sweden

0 World Childhood Foundation USA 0 N/A 0 A FISCH INC

Increased doing business with swedes Efforts

Sweden0 Volvo Car USA Sweden United States 0 KARV Communications 0 AstraZeneca Unchanged Efforts Sweden0 beate karlsson 10+ years

Sweden My company does not have a presence in the U.S. 1-4 years 5-10 years United States Other Sweden climate Decreased Efforts

A closer look reveals that a full 48% of respondents report an increase in planned efforts related to addressing the climate crisis, and 58% of study participants now stepping up social justice efforts – most probably attributable to the Black Lives Matter movement which swept not only the United States, but many other parts of the world, as well.

Here, a closer look reveals the following: Size appears to matter in the ability to launch and support the undertaking of both new and growing sustainability endeavors, with medium and larger size companies leading the way, particularly as relates to focus on the UN SDGs. In addition, a majority of respondents say they have actively worked to help address the spread of Covid-19, and again, with larger companies able to do so to a higher degree than small and medium-sized companies.

Lastly, a majority of companies in Marketing & Advertising, Retail, and Legal Services report that they target one or several SDGs, however, only a third or less of respondents in these industries are currently using KPIs to measure the impact on the targeted SDGs. Additionally, only 68% of respondents in Marketing & Advertising and 60% of respondents at Legal Services companies lack formal sustainability programs to evaluate the effects of these initiatives.

% of respondents reporting having launched new initatives targeting the SDGs in the second phase of the pandemic

Small Companies

Medium Companies

Large Companies 38%

56%

51%

48%

of respondents report an increase in planned efforts related to addressing the climate crisis

46%

of respondents have launched new initiatives targeting one or more of the UN’s SDGs

“We will be able to reduce our emissions at a higher pace than we thought possible before the pandemic outbreak.”

KEY TAKEAWAYS, INSIGHT 3:

• Respondents across the board report noticeably increased awareness for other pressing global issues beyond the pandemic — climate risk management and increased collaborations are climbing higher up the corporate agenda.

• 46% of all respondents have launched new initiatives targeting one or more of the UN’s SDGs since the outbreak of the pandemic.

• 48% of all respondents report an increase in planned efforts related to addressing the climate crisis.

• 58% of all respondents are stepping up social justice efforts.

• A majority of all respondents report they have actively worked to help address the spread of Covid-19.

“One of our Swedish portfolio companies that sold their products and services virtually before the outbreak of the pandemic was able to capitalize on the global digitalization shift and has consequentially had the opportunity to establish on the U.S. market this year.”

--- Board of Director Member, Financial Services Company