ESG Report 2020

The GRI comprises over 80 indicators for economic, social and environmental performance, with certain core indicators that must be reported on unless they are considered to be of limited importance to the company.

GRI is a set of general reporting indicators used by a number of industries, with many of the indicators being of particular relevance to larger companies. For example, Argentum does not have production activities or own buildings but operates as an asset manager. The company has therefore decided to report on a selection of GRI indicators that are relevant to the company and its activities.

Below is an overview of the parameters Argentum reports on in connection with GRI.

Argentum's business operations involve travelling. In 2020, this resulted in 10.3 tonnes of CO₂ equivalents, while the corresponding figure for 2019 was 89.0 tonnes of CO₂ equivalents. This represents a decrease of 88.4% compared with 2019. This reduction also contributes to a decrease in emissions per employee, which dropped from 3.65 tonnes per full-time equivalent in 2019 to 0.41 tonnes per full-time equivalent in 2020. The decrease is down to reduced travel within the company as a result of the COVID-19 pandemic

Argentum is anxious not to travel any more than necessary to carry out the company's activities, and we make extensive use of the company's video conferencing equipment for both internal and external meetings. Travel in 2020 was very limited through much of the year, and it is natural to assume that this will rise somewhat as it becomes easier to make business trips. However, it is possible that travel could decrease somewhat in the future, as many of the digital meeting solutions that were introduced in 2020 are likely to remain in place when the pandemic is over. Argentum previously estimated that the emissions would be around 60 tonnes per year over time, but this may be reduced somewhat.

Argentum has an agreement with an external partner to cover the recycling of our discarded IT equipment, and we also require our suppliers to have environmental certification. Argentum has established environmental measures relating to paper recycling, and 43% of paper waste was recycled in 2020. This is the same level as the previous year.

Argentum had 23 employees at the end of 2020, compared with 25 employees at the start of the year. The number of full-time equivalents in 2020 was 25.08, which is used in average calculations in this report unless stated otherwise. Sickness absence accounted for 0.45 per cent of total working hours in 2020, a slight decrease from 2019 when it amounted to 1.8 per cent.

Argentum strives for equality, and the proportion of women in the company remained stable in 2020, ending at 34.8 per cent, compared to 32.0 per cent in 2019. In a small organisation such as Argentum, new hires and departures will have a substantial impact on these percentages. The proportion of female employees on the board is still 50%, and 33.3% in the management group.

Diversity and a good working environment are important for Argentum, and the company is concerned that this should be reflected internally. This includes equal opportunities for all employees. Argentum's business activities are within an industry that has traditionally been dominated by men. Argentum consciously uses both genders in the company's promotional materials and in recruitment work directed at new employees, and the best applicants will always be considered. The company has flexible arrangements that make it easier to combine career and private life. Argentum is constantly working to promote gender equality and to strengthen the work in this area. Argentum has signed the UN CEO Statement of Support for the Women's Empowerment Principles to promote global gender equality work.

Skills development/training per employee amounted to an average of 3.5 hours in 2020, compared with 10.33 hours in 2019. The main reason for the decrease is that many employees were on external courses for a certain time in 2019, which was not the case in 2020. Recruitment to the company will have an effect on the level of courses and skills development. Argentum will also continue to focus on developing the expertise of its employees.

Each year, Argentum presents an overview of the ESG work in the annual ESG report.²⁶ The status of the ESG work is also summarised in the company's annual report.²⁷ An annual meeting specifically related to ESG work is also held with the Ministry of Trade, Industry and Fisheries.

As a member of the UN Global Compact, Argentum reports on the work relating to ESG. Argentum reported for the first time in 2013 and submitted its eighth report in 2020. This report is available from the website of the Global Compact organisation. In addition to the annual reports, Argentum's ethical guidelines and our ESG reports are available in our digital library. Argentum has also been following the principles of the UN PRI for many years and will become a signatory of these principles in 2021.

Argentum became a member of Norsif (Norwegian Forum for Responsible and Sustainable Investment) in 2013. Norsif is an independent association of asset owners and asset managers, service providers and industry associations with an interest in responsible and sustainable management. Argentum has been active in the association since it was established and is represented on the association's events committee, for example.

Argentum also aims to work closely with Norwegian and international investors to develop work on ESG in the portfolio. The company participated in Private Equity International and the UN PRI Responsible Investment Forum in 2020, both electronically, and attended several online seminars related to ESG and sustainability in the course of the year.

Argentum has regular dialogue with investors, managers and other stakeholders in connection with the ESG work and has assisted with their work on developing their ESG processes and routines. Argentum will continue discussions with Norwegian and international investors in connection with the ESG work in 2021.