Responsible Investment at JØP Responsible Investment Conference 2017 Anders Eldrup, Chairman of the Board at JØP

Agenda Responsible Investment at JØP Active Ownership at JØP Implementation of UN Guiding Principles on Business and Human Rights & OECD Guidelines for Multinational Enterprises

Responsible Investment at JØP 1/3 Responsible Investment Approach Opportunity Shared value Voluntary principles and guidelines Exclusion of companies Risk Reputation management Creation of value JØP is currently working on implementing relevant voluntary principles and guidelines. This will establish the framework around our approach to responsible investments. I will talk more about this on the following slides. In addition we do some investments within shared value. Note: Voluntary principles and guidelines are those mentioned on slide 4 as Tools.

Responsible Investment at JØP 2/3 Facilitate a high rate of return Management of members expectations Reputation management of JØP Purpose Governance, Human Rights, Labour Rights, Environment, Climate, Tax, Anti-corruption Themes UN OECD EU DK Tools UN Global Compact Principles for Responsible Investment (PRI) UN Guiding Principles on business and human rights Conventions Sanctions COP21/Paris Agreement OECD Guidelines for Multinational Enterprises National Contact Point Directives Sanctions Danish Financial Statements Act Recommendations on Active Ownership Recommendations on Corporate Governance PRI: JØP works according to the 6 PRI principles for responsible investment. Conventions: JØP does not invest in companies producing cluster ammunition and anti-personnel mines. Sanctions: JØP does not invest in state bonds where people in or near the government is sanctioned by UN or EU. COP21: JØP does not invest in companies where more than 50% of turnover is from extraction of coal. Recommendations for active ownership: JØP welcomes the recommendations for active ownership from the Committee on Corporate Governance. The recommendations are in line with our approach to active ownership. Currently we have a special focus on implementing the UN Guiding Principles on business and human rights and the OECD Guidelines for multinational enterprises. I will talk more about this at the end of the presentation.

Responsible Investment at JØP 3/3 Shared Value: Business opportunity Examples of shared value within investment Investing in renewable energy Impact investing Investing according to the UN Sustainable Development Goals Social needs Shared value Corporate assets and expertise Shared value is policies and practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates. JØP invests in renewable energy.

Agenda Responsible Investment at JØP Active Ownership at JØP Implementation of UN Guiding Principles on Business and Human Rights & OECD Guidelines for Multinational Enterprises

Active Ownership at JØP 1/2 - Engagement Proces for selection of companies for engagement: Screening of companies Selection of companies Categorisation of companies (1, 2, 3) Proces for engagement with category 1 and 2 companies: Decision on objective for engagement Company acknowledges the objective Company works towards the objective Company has implemented the objective Around 3.000 companies in our portfolio with equity and corporate bonds. Screening of companies based on UN Global Compact and controversial weapon Based on the output of the screening, the companies are evaluated on the selection criteria Selection Materiality of issues relevant for engagement Possibility of succes with engagement Size of Hermes EOS´s clients aggregated holdings Prioritiaziation of companies and issues from JØP and other clients of Hermes EOS´ 353 companies were choosen for engagement in 2016 Categorisation Category 1: Companies where Hermes EOS work on specific objectives and is engaging with each company about 6 times each year. 66 companies in 2016 Category 2: Companies where Hermes EOS work on specific objectives and is engaging with each company about 3 times each year. 197 companies in 2016 Category 3: Companies where clients of Hermes EOS has a large share. Hermes EOS discusses issues with the compant 1-2 times each year. 90 companies in 2016 Examples of objectives: A company shall develop a remuneration policy A company shall demonstrate that consistent, company-wide environmental management structures are in place and overseen by the board A company shall evaluate its portfolio under different climate change, oil and gas demand and carbon policy scenarios and communicate its findings publicly

Active Ownership at JØP 2/2 - Voting Resolution for AGM Voting Hermes EOS Hermes EOS suggests voting based on: Hermes EOS master voting policy Hermes EOS customised voting policies for major markets Experience and knowledge about the companies JØP JØP receives the suggested voting from Hermes EOS. JØP can change the vote within a week form receiving the suggested vote. If JØP does nothing the vote will be cast according to Hermes EOS suggestion JØP can vote at AGM at about 60% of the companies in our equity portfolio. Hermes EOS assist us in voting. Passiv fond in KLI invest/LPK in emerging markets, where we cannot vote. Emerging markets fond at Danske Invest, where we cannot vote. The voting of Hermes EOS is based on the OECD Principles on Corporate Governance (2004), ICGN/International Corporate Governance Network - Global Corporate Governance Guidelines (2009) and Hermes Responsible Ownership Principles.

Agenda Responsible Investment at JØP Active Ownership at JØP Implementation of UN Guiding Principles on Business and Human Rights & OECD Guidelines for Multinational Enterprises

Implementation of UN Guiding Principles on Business and Human Rights & OECD Guidelines for Multinational Enterprises Project for implementation: Revise policies and procedures Mapping of relations Assesment of risks Prevent, mitigate, remedy of risks Commu- nication Areas of implementation: Equity and corporate bonds Alternative investments Real estate JØP as a company The UN Guiding Principles on Business & Human Rights and the OECD Guidelines for Multinational Enterprises outline principles on how a company as a minimum should prevent, mitigate and possibly ensure remedy for adverse impacts on human rights, labour rights, environment, climate, corruption and tax. Once the principles has been implemented JØP will continue an ongoing process of 1) Assessing risks 2) Acting upon findings 3) Monitoring changes 4) Communicating on our work. Revise policies and procedures Incorporate JØPs position on human rights in our policy for responsible investments. According to the criteria in the UN guiding principles. Mapping of relations Mapping of the business relationships which JØP works with. This includes in example external managers. Assesment of risk for JØP. Asses actual and potential negativ impact on human rights, labour rights, environment, climate, corruption and tax. Prevent, mitigate, remedy of risks. JØP shall decide how to manage the identified risks. In example this can be done by setting requirements on the procedures of external managers. Communication JØP will communicate about our work with ESG