Hemnet Group ENG 2022

Risk analysis In this section, we describe Hemnet’s most significant sustainability risks and how we manage them. There are no identified risks linked to combating climate change and creating social impact as these areas are not considered to constitute a significant risk for the company.

A trusted and independent marketplace, enabling a mobile, efficient and transparent property market

Risk management All property listings on Hemnet are administered by a registered real estate agent who mediates Hemnet’s listing agreement with the home seller. This professional body of certified agents is an important guarantor of Hemnet’s quality, as the content of any home listing is the real estate agent’s responsibility. To ensure common rules for all players, we make publication rules clear and available to all real estate agents. We also have a function within our customer service organisation that reviews and samples property listings on Hemnet on a daily basis and contacts real estate agents whose advertisements deviate in various ways from the publication rules. We have established processes in collaboration with the real estate agent industry to ensure that sellers and buyers are aware of what information is published on Hemnet. Transparency and clarity are key to ensuring that our visitors make informed decisions about personal data processing requiring customer consent. We regularly review our privacy information to ensure this. All development work at Hemnet is carried out within the company, which means that we immediately can act upon and handle operational disruptions and other problems that may arise on our platforms. Furthermore, our large developer organisation works daily to improve our products as well as the user experience, to enable the very best conditions for real estate agents and home sellers to list a property on Hemnet. This, together with our strong market position, leads to a maintained and stable volume of listings year to year, where approximately nine out of ten homes sold through a real estate agent in Sweden have been advertised on Hemnet. Risk management To ensure a more long-term, solid and sustainable people and culture strategy, Hemnet in 2022 hired a skilled Chief People and Culture Officer, as well as adding this role to the management team (the People and Culture function was previously a part of the Communications department). Hemnet has a great need to recruit developers, an area in which competition for competence is extremely high. The vast majority of our recruitments are handled internally, increasing our level of control and providing the possibility to build our own candidate pool. During the last three years, we have increasingly hired employees from outside of Sweden. This way we have gained a lot of experience in, and set up solid processes for, international recruitment. Risk management Anti-corruption is an important part of our Code of Conduct, which is central to counteracting all forms of bribery, misconduct and corruption within the company. A benefit or advantage offered to an employee by an external person is not allowed if it influences or risks influencing the employee’s objectivity and ability to make commercially sound decisions. The Code of Conduct addresses the company’s internal guidelines on bribery and corruption and supports employees in their assessment. Employees are asked to report violations to their manager, their manager’s manager, Hemnet’s People and Culture Officer, Hemnet’s Head of Legal or via Hemnet’s whistleblower function. Hemnet takes relevant measures to investigate reported breaches and violations.

Significant risk Inaccuracies in residential property advertisements on Hemnet or content in advertisements that may give a misleading perception of the property for sale can have a negative impact on consumers and home buyers. This can lead to home buyers relying on incorrect information before buying, but also distort competition between real estate agents. Given the volume of information on Hemnet, there is always a risk that situations arise where a seller or buyer does not feel comfortable with, or in control of, the data we publish. Although we do our utmost to present information relating to cookies and personal data processing as simply and clearly as possible, there is always a risk that visitors will have difficulty assimilating information on, for example, personalisation and data sharing within the framework of advertising networks with which we collaborate. If Hemnet as a platform were to lose its accessibility, supply and quality, it could negatively affect the ability of private individuals and real estate agents to carry out property transactions. Without access to Hemnet, the home buyers’ ability to access the property supply is hampered, as is the home seller’s ability to advertise his or her home – and the real estate agent’s ability to do business.

Organisational related risks

Significant risk Our employees are our most important assets. Managing to retain our talents, as well as attracting new ones, is key for the development of our business and company.

Governance-related risks

Significant risk Failure to comply with laws and regulations against bribery can have serious consequences for Hemnet and for the individuals concerned. Possible situations where violations could occur are, for example, in customer care or representation in the event that activities would go beyond what is considered appropriate, or that a real estate agent or home seller with contacts at Hemnet would manage to gain advantages for their property listing outside the company’s regular processes and routines. In addition to the obvious legal risks, any such misconduct would potentially be a breach of trust and detrimental to the Hemnet brand.

28 · Hemnet Group | Annual and sustainability report 2022

Sustainability report

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