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Operating Expenses Annual Report of the Board

The total operating expenses were EUR 5.4 million, representing a Seafarers’ Pension Fund 2020 Annual Report
decrease of EUR 0.6 million from the year 2019. The expenses for claims
incurred, including the costs for disability risk management, amounted 1155
to EUR 1.7 million, operating costs were EUR 1.7 million and costs for
investment activities were EUR 2.0 million.

Responsibility

The Seafarers’ Pension Fund seeks to operate responsibly in terms of
the ESG (Environmental, Social and Governance) factors. Of the UN
Sustainable Development Goals, the Board of the Pension Fund has
selected five goals as follows:
• Good health and well-being
• Decent work and economic growth
• Responsible consumption and production
• Climate action
• Peace, justice and strong institutions.

These goals are manifest in investments in customers and personnel as
well as in the focuses of investment activities.

The aim to reduce the carbon footprint concerns the Fund’s
investments across the board, with the intention to contribute to
the realisation of the 2 degree scenario of the Paris Agreement. The
investment activities are also guided by the UN Global Compact Initiative,
and the Fund avoids investing in the following types of investments.

• ESG ratings: investments in companies with the poorest rating
• Product-based exclusions: investments in companies that manufacture

weapons of mass destruction or tobacco products or whose coal
intensity is high
• Operations-based exclusions: investments in companies that violate
international norms related to human rights, labour, environment
and corruption.

In its investment activities, the Seafarers’ Pension Fund takes into
consideration the recommendations of the Financial Action Task Force
(FATF) concerning international obligations to prevent money laundering
and terrorist financing, and also the financial sanctions imposed by the EU.

In its annual report, the Seafarers’ Pension Fund reports on the
realisation of the responsible investing principles and ownership steering
within its own operations.

Investments
The responsibility analysis performed concerns those investments for
which there is sufficiently accurate information available to enable a
reliable analysis. Currently, the analysis covers investments of EUR 619.1
million, which represent 49.4% of all investments.