Diversity Policy

Objective

The objective of the Diversity Policy is to set out the principles and standards for diversity in the Board of Directors.

The regulatory demands to the Diversity Policy regulated in the Danish Financial Act, § 70, part 1, number 4.

Definitions

Board: Meaning the combined board of directors of the entities: Lunar Bank A/S, Lunar Way A/S and Lunar Group A/S.

Target Group

The Policy is relevant to all employees across the Group.

The policy is particularly relevant for:

• Human resources
• Management groups across the organisation
• Second line functions

Employees mentioned above are required to be familiar with the policy. The administrator of this policy must document and report any deviations from the policy to the Risk Management Function. The Risk Management Function will assess the required actions following the deviation.

Diversity

The Boards wish for a composition of diversity in competencies and backgrounds, the need for diversity in relation to expertise, experience, gender, and age are especially emphasised.

Diversity can be seen as an asset to enable and empower Lunar’s development, risk assessment, resilience, success, and growth. The Board wishes to increase the quality of work and the interaction on the Board by having diversity. By doing so, the Board enables the possibility for different takes on for instance managerial tasks. The Board emphasises that a comprehensive treatment of all cases on the Board will take place.

In order to enable sufficient diversity in qualifications and competencies amongst the Board members and to ensure optimal yield from working with diversity, the Board will focus on the following elements.

Competencies

When relevant, the Board includes the demands for the Board’s competencies and self-evaluations established in The Danish Financial Act §64 and §70 part 4, The Executive Order, The Danish Financial Supervisory Authority’s guidelines on the Board’s self-evaluation, The Finance Council's management code, as well as recommendations from the Committee for Corporate Governance.

In the recruitment process of new members, the Board is focused on attracting candidates with different competencies, backgrounds, knowledge, and resources that correspond to the business model and priorities now and going forward. When appointing candidates to the Board, it is crucial to ensure compliance with the plans and decisions made by the Board’s self-evaluation. Qualifications and competencies can be achieved through the candidate’s educational, professional or personal background and experience.

Equal distribution of genders

The Board has set up target numbers and an approach for the equal dispersal of genders across the organisation. We refer to “Target numbers and policies for increasing the proportion of the under-represented gender in Lunar’s management”.

Disclosure

Lunar discloses information on how Lunar complies with the rules and regulations in The Danish Financial Act about the determination of a policy for diversity on the Board.

Reporting and follow up

The Nomination Committee reports to the Board about the work towards diversity on the Board in cases that involve Lunar Bank A/S. The Director is responsible for the reporting concerning the other organisations.

In cases involving Lunar Bank A/S, the Nomination Committee reviews the policy once a year for the purpose of adjusting the policy to match the organisation’s development. The Director is responsible for the reporting concerning other organisations.

Input providers

List of the key stakeholders and subject matter experts who have provided input for and endorsed this Policy:

• Anders Hartlev, policy owner
• Thomas Bay, chief of staff