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May 2024

Position Statement

on Forestry

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Introduction

At Danske Bank, our purpose is to release the potential in



sustainable progress today and for generations to come. In the

and an engine for job creation, as well as rural and industrial

development. At the same time, forests are also rich in

biodiversity and create vital ecosystem services that human



freshwater provisioning, and pollination services. Furthermore,





to safeguard the ability of forests to provide multiple values.



change in the real economy through its ability to mobilise



in biomass and soils, provide valuable raw materials capable



in long-lived products (e.g. timber and building materials).

Secondly, the sector is instrumental in maintaining and

improving the biodiversity underpinning valuable ecosystem

services, and we want to promote our customers in managing

impacts. Thirdly, the sector is responsible for ensuring that

forests can function as a resilient green infrastructure capable

of withstanding climate change. Increased risks of drought,

also see that it faces its own set of emerging sustainability

challenges. For example, raw material sourcing, supply



are examples of material ESG risks. We want to assist our

customers in strengthening their management of these risks,

and we welcome dialogue around opportunities.

To support our customers and portfolio companies in

addressing these challenges, this position statement

establishes guidelines for comprehensive sustainability

practices and high standards. It is a key commitment for

It is a key commitment for Danske Bank to be a responsible and predictable partner in the green transition. The forestry

sector operates within a natural system that produces multiple economic, social and environmental values - and the sector

has a key role to play regarding climate action and biodiversity preservation. We see multiple points of entry towards

meaningful discussions on sustainability and want to support customers and companies who take initiative to promote

sustainable growth and greater societal responsibility. This position statement covers the forestry sector as well as the pulp

and paper sector, with the aim to establish guidelines for comprehensive sustainability practices.

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1. Objective and purpose

Danske Bank’s position statement on forestry aims to create

transparency and predictability regarding our ambitions, efforts

and governance with regard to the sector and provide a view on

and all legal entities under its control.

We take a materiality-based approach, meaning that our

engagement focus will be on larger customers with high

impacts and that we take into consideration relevant risks

and opportunities for the customers. When we assess which

actions are relevant for individual customers, the size of the

customer, exposure towards the customer and geographical

scope of activities of the customer are taken into consideration.

Geography

The position statement is global in scope with no exceptions.

Industries and subsectors

This position statement applies to major components of

the forestry value chain. These components include forest

management as well as harvesting and planning. In addition,

the position statement applies to downstream segments,

including pulp and paper companies.

Projects and companies





companies as well as for investment services.

as well as life insurance and pension products offered by

Danica Pension

 

provides to society, for example timber, food, clean water,

regulating disease and climate, pollination of crops and

soil formation. These services are typically divided into

provision services, regulating services, cultural services and

supporting services

 

essential to the function of ecosystems and the delivery of

heat and electricity production, industrial processes and

biofuel for transportation

 

use of forests and forest lands in a way, and at a rate, that

maintains their biodiversity, productivity, regeneration



at local, national, and global levels, and that does not cause

damage to other ecosystems

 

related impact due to climate change

 

impact due to dependencies and impacts on nature

 

and economic shifts toward a low-carbon and more

sustainable future

 

impacts of climate change and changes in nature

4. Rules and standards of the position

regulations and permits. We expect the companies we do

business with to systematically manage material sustainability

risks and impacts and to provide transparency on their



Position Statement on Forestry

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companies adhere to the following guidelines, where relevant

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5. Supporting standards and principles

In general, Danske Bank supports the following set of

international agreements, principles, standards and concepts



• High conservation value forests (HCVF), including those

depended on by indigenous peoples

• The UN Convention on Biological Diversity and the related

Bonn Guidelines or Nagoya Protocol

• International Union for the Conservation of Nature Red List

Species

• The Convention on International Trade in Endangered

Species of Wild Fauna and Flora (CITES).

For the listed companies that Danske Bank invests in, a

screening is performed in collaboration with research partners

to make sure that the companies act in line with the following



• UNESCO World Heritage List

• Ramsar Convention

• International Union for Conservation of Nature (IUCN)

• Minimum Age Convention

Implementing expectations and recommendations

This position statement is implemented by integrating it into

Danske Bank’s governing information, including policies

instructions and business processes - and subject to annual

review. Expectations call out particular risk considerations and

recommendations signal understanding of best practices and

will be monitored.

Should this position statement be breached, there are several

escalation paths in Danske Bank’s governance structure where

potential breaches could be addressed. On a Group level,

Monitoring adherence to endorsed standards and principles

In order to monitor that Danske Bank’s business is conducted

with respect to the international standards that we endorse,



investments separately.



endorses, are integrated in the credit process. All credit cases

are reviewed for potential breaches, and cases with concerns

are escalated for further review by ESG experts and the bank’s

second-line credit teams. Monitoring is carried out by an

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For investing, Danske Bank takes a risk-based approach that is

practice, international norms and voluntary frameworks for

corporate responsibility.

In the Dialogue and Engagement phase, we address

potential breaches through dialogue, voting or participation in

nomination committees when relevant.