In Luminor Group sustainability risks are inseparable part of our remuneration policy. Sustainability risk is integrated in our remuneration polices on different levels - in the design, governance of policies and remuneration decisions in a sustainable way.

Luminor remuneration principles are consistent with the integration of sustainability risks, which are considered when setting targets and evaluating performance in our variable remuneration pay schemes. All employees on variable pay scheme are measured against both qualitative as well as quantitative targets suitable for their position and tasks. All employees have performance goals linked to risk and compliance performance, including sustainability risk.

Luminor has implemented a Base Salary Management Standard, which is a vital tool to link the remuneration with sustainability criteria. The Base Salary Management Standard guarantees equal treatment of all employees, ensures fair salary levels and transparency in remuneration area.

According to the internal remuneration policy, all employees are obliged to comply with high level business ethics, the ESG performance practices and be compliant with applicable regulatory requirements. Remuneration Policy discourage excessive risk taking consistent with the effective management of sustainability risks and non- compliance with external or internal regulations.