HOW MIGHT CLIMATE RISKS AFFECT INVESTOR PORTFOLIOS? Perhaps the most challenging, pervasive, and enduring of all the risks that the global economy is confronting is climate change. Climate change poses two key risks to investors’ portfolios: First, physical risks arise from the impact of climate hazards on a company’s operations, supply chains and consumer markets. Companies can mitigate this by putting in place adaptation measures through de-risking, re-shoring, and diversification. Second, transition risks arise from the impact of higher carbon prices, stricter environmental standards, shifts in consumer preferences, and advances in lowemissions technologies. This will require transforming carbon-intensive business activities and processes — before regulation bites, competitiveness suffers, and assets become stranded. Assessing portfolio companies’ vulnerabilities to climate change is becoming an integral part of business planning and shareholder engagement. Climate change is already happening. It is no longer a question of ‘whether it will happen’ but ‘how much’ and ‘how fast’. The trajectory of both physical and transition risks is highly uncertain. Global carbon emissions have not peaked. At the same time, commitments towards achieving netzero have never been stronger, foreshadowing stronger policy actions and growing clean energy investments. It is within this wide spectrum of possible outcomes that investors will need to make portfolio allocation decisions. INVESTMENT PIVOTS FOR PORTFOLIO RESILIENCE  Against the backdrop of these four short-term to long-term uncertainties, the overall investment environment has deteriorated. Return prospects are lower, and risks are higher.

Irma Rosenberg: Why is Swedish inflation so low? Speech by Ms Irma Rosenberg, Deputy Governor of the Sveriges Riksbank, at the shareholders’ meeting of SBAB - Sveriges Bostadsfinansieringsaktiebolag, Stockholm, 13 April 2005. *  *  *  Introduction Thank you for your invitation to come here today. Inflation today is low and has fallen short of our inflation target since the middle of 2003. There are several explanations for this. One obvious reason is that our own interest rate cuts affect an important component in the consumer price index (CPI), namely homeowners’ interest costs, which decrease as a result. Another is the developments in electricity prices, although we had largely foreseen the effects of these. The principal factors, however, seem to have been the recent years’ high productivity growth in the Swedish economy and the drop in import prices. Current inflation is not the decisive factor behind the interest rate decisions that we make today. That is because it takes 1-2 years before rate adjustments have their full impact on inflation. Consequently, our interest rate decisions are based on an assessment of inflation prospects in the coming years. The current inflation rate is the starting point for this assessment, however, and it is therefore important to understand the underlying reasons for why inflation is so low today. Another reason is that it may be warranted in some situations to allow inflation to deviate from target for a period that extends beyond the normal forecast horizon, which is something I will be coming back to.