Sustainable Investment Methodology Overview

This document is a methodology guide outlining Danske Bank's approach to categorizing sustainable investments. It defines sustainable investments according to the Sustainable Finance Disclosure Regulation (SFDR), emphasizing the importance of contributing to environmental or social objectives while adhering to the principle of Do No Significant Harm (DNSH). The methodology applies to all Danske Bank products that commit to investing in sustainable investments, ensuring compliance with pre-contractual disclosures and periodic reporting. The guide details the use of the EU Taxonomy, which classifies environmentally sustainable economic activities, and describes additional tools such as EU Climate Benchmarks and Danske Bank's proprietary SDG Framework. These frameworks aim to align investments with the United Nations Sustainable Development Goals (UN SDGs) and ensure that investments meet specific criteria related to governance and impact assessment. The document highlights the significance of transparency and robust methodologies in sustainable investment practices.