Sustainability Policy

1.1 This policy applies to all employees in Pareto Securities AS with subsidiaries (“Pareto Securities”). The policy establishes the principles to keep environment, climate and social conditions at the forefront of our internal and external activities.

1.2 Pareto Securities will enact the same values and principles wherever we have a presence. We are aware that good practices in one area do not offset harm in another.  

2.1 Pareto Securities’ business should operate in a sustainable manner and meet fundamental responsibilities in the areas of human rights, labour, environment and anti-corruption as set out in UN Global Compact.

3.1 Pareto Securities shall work to reduce our own and our business partners’ climate impact and ensure energy efficient operations.

3.2 Pareto Securities’ global operations should be fully greenhouse gas compensated. We will achieve this goal by:

• Reducing our greenhouse gas emissions as described below
• Tracking and calculation of our greenhouse gas emissions throughout our operations
• Purchasing greenhouse gas offsets equalling to our emissions

3.3 Travel is unavoidable in an investment bank (as the business model is based on bringing people together). However, Pareto Securities’ employees are expected to critically assess the need for airline travel. Measures to be taken include: 

• Pareto shall invest in state of the art and easy to use video conferencing equipment at all locations in order to minimize travel.
• Internal meetings as video conferences whenever possible
• Public ground transport should be used unless such travel will make the journey significantly less efficient.
• Main airlines (SAS and Norwegian) should be regularly challenged on how they work to reduce such emissions in their operations.

3.4 Pareto Securities should take aim to reduce the amount of waste produced by the firm and recycle waste to the greatest extent possible. Among the measures to be taken are:  

• No use of disposable cutlery, cups etc
• Systematic approaches to reduce food waste, such as smaller plates, systematic reserving/reuse of uneaten food, awareness campaigns etc.
• Reduce printing.  2-sided printing should be default on our printers.
• Pre-separation of waste (paper, food, plastic, metals etc)
• Recycling of electronic waste

3.5 The food served in Pareto Securities’ kitchens should encourage our employees to eat healthy and sustainably. Among the measures to be taken are:  

• We should only serve sustainable meat and fish
• Reduce the consumption of red meat
• A varied diet with green alternatives easily available

3.6 Pareto Securities shall seek and expect energy efficiency in all buildings where we have operations. We shall continually challenge our landlords on how the buildings are built, maintained and operated, regarding issues such as: 

• Indoor climate management
• Lighting
• Waste management
• Insulation
• Use of renewable energy when available

3.7 Pareto Securities stores a substantial amount of data in external data centres, which consumes a lot of energy. Data centre providers shall be regularly challenged on:  

• Use of renewable energy
• Storage optimization (processor, memory, network, data storage and other core services)
• Reuse of excess heat

4.1 Pareto Securities will expect our suppliers to adhere to similar standards as ourselves in respect to climate, natural environment and social responsibilities. We should place emphasize on good sustainability standards when choosing suppliers.  

4.2 Key suppliers must on demand be able to document that they adhere to standards mostly similar to our own.  

5.1 Pareto Securities should work actively to identify and work with companies which can scale up renewable energy initiatives and clean technology as well as companies running their business in the forefront on social and governance criteria.

When advising issuers using traditional, non-climate optimal, technology we should openly discuss how they can reduce their environmental impact and educate them on investors’ expectations on the area.  

5.2 Pareto Securities should work actively to facilitate green investments and impact investing. 

5.3 Pareto Securities should work actively to continue to broaden our placement power within ESG by actively fostering interaction between the investor community and relevant companies.  

5.4 Pareto Securities’ research should continue to educate our clients on environmental performance and ESG risks associated with investments in the securities we cover. We should price such risks in future earnings in a transparent matter.   

6.1 The Board of Directors of Pareto Securities AS should be provided with an annual report on Pareto Securities’ sustainability impact and how this policy has been followed up.  

6.2 The key findings in the sustainability impact report should be published on Pareto Securities’ web page.  

7.1 Each employee is individually responsible for compliance with these principles.

7.2 Heads of department shall be responsible for compliance with these principles in their department and shall embody the principles in their own conduct.