The feature highlights important issues but is misleading for the viewer. The feature partly concerns the Kamoa Copper Mine, but primarily focuses on other nearby mines and issues in the country. The way the information is presented makes it difficult to understand which facts relate to which mine and to draw correct conclusions.

SEK is a Swedish credit market company based in Stockholm. The state owns 100 percent of SEK, and the Ministry of Finance is responsible for its management. SEK’s mission is to finance Swedish exports. SEK is entirely funded through international bond transactions in the capital markets.

SEK’s corporate governance is based on Swedish law and applicable Swedish and international guidelines, such as the ten principles of the UN Global Compact, the OECD guidelines for multinational enterprises, the OECD convention against corruption with related documents, the UN’s guiding principles on business and human rights, OECD guidelines for managing social and environmental risks in state-supported lending, and the Equator Principles.

SEK practices responsible lending, which includes controls to counter money laundering and other financial crimes in connection with lending. SEK also imposes requirements on exporters and borrowers to ensure that financed transactions follow international sustainability guidelines, which vary depending on the type of transaction but may include human rights, governance issues, and environmental concerns.

Sustainability risk monitoring in contracted transactions is conducted throughout the life of the transaction. If anything occurs during the transaction that is deemed not to comply with SEK’s financing agreements, SEK will take action. SEK is humble regarding the fact that situations may arise during the lifespan of a transaction that alter the business landscape and therefore has procedures to act and demand remedial actions.

Q&A

1. How does SEK generally work with sustainability issues?

SEK is a Swedish credit market company based in Stockholm. The state owns 100 percent of SEK, and the Ministry of Finance is responsible for its management. SEK’s corporate governance is based on Swedish law and applicable Swedish and international guidelines, such as the ten principles of the UN Global Compact, OECD guidelines for multinational enterprises, OECD Convention against Corruption with related documents, UN Guiding Principles on Business and Human Rights, OECD guidelines for managing social and environmental risks in official export credit, and the Equator Principles.

SEK practices responsible lending, which includes controls to combat money laundering and other financial crimes in connection with lending. SEK also imposes requirements on exporters and borrowers to ensure that financed transactions adhere to international sustainability guidelines, which vary depending on the type of transaction but may include human rights, governance issues, and regulations regarding nature and the environment.

SEK’s process for managing sustainability risks consists of an initial screening, in-depth analysis of sustainability risks, decision-making, and follow-up on transactions. As stated in our ownership directive, SEK must work for compliance with international guidelines in the area of sustainable business, including environmental and climate considerations, anti-corruption, human rights, working conditions, and business ethics. In credit assessments for export credits and large projects, SEK must also follow international frameworks such as OECD guidelines for managing social and environmental risks in state-supported lending, and the Equator Principles. Both of these frameworks are based on the World Bank’s standards for environmental and social sustainability – IFC Performance Standards.

Monitoring of sustainability risks in contracted transactions is conducted throughout the life of the transaction. For already contracted transactions that are no longer deemed to comply with SEK’s financing agreements, SEK will take action. SEK acknowledges that situations may arise during the lifespan of a transaction that alter the business landscape and therefore has procedures to act and demand remedial actions.

For more information on SEK’s due diligence process for managing sustainability risks in lending, see page 121 of the 2023 annual and sustainability report.

2. Is there any conflict between business and sustainability in your operations?

No, SEK must conduct its operations on commercial and sustainable grounds.

With each business inquiry, SEK identifies potential sustainability risks. Potential sustainability risks are identified and assessed at country, counterparty, and business levels. If elevated sustainability risks are identified, a sustainability analyst conducts a thorough assessment and provides recommendations for action requirements. This analysis determines whether SEK should enter the transaction or not, and under what conditions.

3. How does SEK generally view the considerations you need to make when doing business in challenging regions?

SEK’s mission is to finance Swedish exports. Therefore, SEK conducts business in many markets, including complex ones where there are sustainability risks that require careful analysis. Our assessment is that by requiring projects to comply with international guidelines and by monitoring compliance, SEK contributes to a more sustainable development.

Before a potential transaction, a thorough examination of the transaction in question is conducted, including environmental and human rights considerations. Detailed requirements are made in accordance with international guidelines. This also includes requirements for continuous monitoring to identify and rectify any deficiencies or incidents.

4. How does SEK view the ownership directives on sustainability issues?

SEK’s mission is to ensure access to financial solutions on commercial and sustainable grounds to promote the Swedish export industry. Sustainability is a central part of our operations, and SEK, as a state-owned company, is to act as a role model in sustainable business practices. This means that operations should be conducted in a financially, socially, and environmentally sustainable manner that promotes even more sustainable development.

5. The program claims that SEK violates rules regarding respect for the environment and human rights set by the government and that SEK does not follow the sustainability rules outlined in the government’s ownership directive. Is this true?

No, this is not true. As stated in our ownership directive, SEK must work for compliance with the international guidelines in the area of sustainable business concerning environmental and climate considerations, anti-corruption, human rights, working conditions, and business ethics. In our credit assessments for export credits, we must also follow international frameworks such as the Equator Principles or the OECD guidelines for managing social and environmental risks in state-supported lending. SEK then require that the relevant party acts on sustainable grounds in accordance with international guidelines: the World Bank’s standards for environmental and social sustainability – IFC Performance Standards.

In this case, as in all transactions SEK engage in, SEK follow the instructions, regulations, and guidelines that we must adhere to.

6. What happens if the guidelines are not followed?

Then we demand action. First and foremost, it means rectifying the mistakes. Secondly, if the failures are not addressed, SEK can halt its loan disbursements. We can also terminate the credit agreement and demand repayment of already disbursed financing.

7. The program mentions that people are forcibly displaced and that the mine contaminates drinking water. The program also shows children working in mining. Is this happening at Kamoa Copper?

It is true that around 100 households have needed to relocate due to Kamoa Copper. Independent sustainability consultants have followed up and confirmed that both expropriation and relocation have occurred in line with international guidelines – the World Bank’s standards for environmental and social sustainability – in agreement and dialogue with the households concerned. Kamoa Copper has provided agreed compensation with replacement housing and agricultural land of adequate standards. The project has established a complaints mechanism and whistleblower function to which affected parties can turn, which is regularly monitored.

The guidelines that SEK applies and imposes on this type of project include regulating emissions in accordance with local legislation plus the World Bank’s guidelines. Regarding working conditions and issues related to child labor, these are also regulated by the World Bank’s guidelines for the project.

SEK use independent sustainability consultants to follow up and confirm the borrower’s compliance with the regulations