Sustainable Finance Disclosure Regulation (SFDR) Compliance Statement

VEQ Fund 2 AB (“VEQ” or “the Fund”) recognises the growing importance of sustainable investing and the responsibility of capital to contribute to a more equitable and resilient future. We believe that considering Environmental, Social, and Governance (ESG) factors is not only aligned with our values but also contributes to long-term value creation and risk mitigation.

As a financial market participant, VEQ is committed to meeting the disclosure requirements of the European Union’s Sustainable Finance Disclosure Regulation (SFDR). We are actively working to align our operations and investment strategies with the principles of responsible investment. VEQ is currently classified as an Article 8 product under SFDR, reflecting our intent to promote environmental and/or social characteristics through our investment activities.

Integration of Sustainability Risks

VEQ integrates sustainability risks at every key stage of the investment lifecycle.

Pre-investment, we conduct a structured ESG due diligence process that identifies both material risks and opportunities in each prospective investment.

Post-investment, we monitor sustainability performance through quarterly reporting from our portfolio companies.

We also practice active ownership—leveraging our board positions and shareholder roles to influence strategic decisions and promote sustainable practices.

By embedding these steps into our investment process, we aim to reduce risk exposure, identify long-term value drivers, and support responsible growth.

Consideration of Adverse Sustainability Impacts

VEQ does not currently consider principal adverse impacts on sustainability factors as defined under Article 4 of the SFDR. This decision is based on the nature of our investment strategy, the scale of our operations, and the availability of reliable data from early-stage companies.

However, we remain committed to identifying and mitigating material ESG risks within each investment. We assess potential negative effects on environmental, social, and governance factors as part of our standard investment review and ongoing portfolio engagement, with the ambition to support responsible development and avoid unintended harm.

Transparency and Disclosures

VEQ is committed to maintaining transparency in how we incorporate sustainability into our investment operations. In line with SFDR, we will publish the following on our website and in investor reports:

1. Sustainability Risk Policy – detailing how ESG risks are integrated throughout the investment process.

2. Remuneration Policy – describing how internal incentive structures are aligned with our long-term, sustainability-aware approach.

We also use regular portfolio engagement and board participation to track progress and report ESG-relevant developments to our stakeholders.

Conclusion

VEQ’s approach to sustainability is pragmatic, forward-looking, and deeply integrated into how we invest. By combining robust ESG due diligence, ongoing portfolio monitoring, and active ownership, we aim to support companies that are not only scalable but also sustainable.

Through transparent reporting and compliance with the SFDR, we reaffirm our belief that responsible investing drives better long-term outcomes—for our founders, our investors, and society at large.

For further details or to learn more about our sustainability framework, please contact any member of the VEQ team.