• Nordea reduced financed emissions in its lending portfolio by 44% from 2019 levels, placing it within reach of its 2030 target of a 40% to 50% cut.
• The bank has facilitated more than €235 billion in sustainable financing since 2022, exceeding its 2025 target.
• Green and sustainability-linked assets now represent 15% of Nordea’s total assets, almost double the level reported in 2022.

Nordea Advances On Lending Emissions Target

Nordea has reduced financed emissions across its lending portfolio by 44% from 2019 levels, putting the Nordic bank on track to meet its 2030 climate target.

The reduction places Nordea near the upper end of its long-term target range, which aims to cut financed emissions in lending by 40% to 50% by 2030. It also shows how climate targets are now moving deeper into banks’ core business lines, including corporate lending, capital markets, asset management, and supplier engagement.

With 2025 now behind it, Nordea said it can measure progress against the short-term and long-term climate goals it set in 2021. During that period, the bank worked with customers to assess their climate ambitions and support transition plans through financing.

“During this period, we have worked closely with our customers to understand their climate ambitions and supported them in financing their transition plans.”

The bank said customers remain at different stages of transition. As a result, it has adapted its offering and developed financing solutions that respond to rising demand for transition finance.

Sustainable Financing Passes €235 Billion

Nordea said stronger customer engagement and a broader sustainable finance offering helped drive the reduction in financed emissions.

Its sustainability-linked and green lending products have grown alongside capital market activity. These include green loans, sustainability-linked loans, green bonds, social bonds, sustainable bonds, and sustainability-linked bonds.

Since 2022, Nordea has facilitated more than €235 billion in sustainable financing. That result exceeded its 2025 target and strengthened the bank’s position in Europe’s sustainable finance market.

The bank is also a major sustainable bond issuer in the region. It has more than €17 billion in sustainable bonds outstanding across six currencies.

Green and sustainability-linked assets now account for 15% of Nordea’s total assets. That is almost double the level in 2022.

For financial institutions, that asset mix matters. It shows how banks are beginning to shift climate strategy from public commitments into balance sheet composition. It also gives investors a clearer view of how sustainable finance targets are translating into business activity.

Fossil Fuel Exposure Falls Sharply

Nordea said its main focus remains customer engagement and financing the transition. However, it has also reduced exposure to fossil fuels and the oil and gas sector.

The bank said this approach is designed to reduce risks and indirect negative impacts linked to its operations.

“We maintain a risk-based and restrictive approach to oil and gas extraction and have significantly reduced our lending exposure in recent years – it now accounts for only 0.001% of total lending.”

That figure is likely to draw attention from investors tracking bank exposure to high-emitting sectors. It also reflects a wider shift in European banking, where climate risk, regulatory scrutiny, and portfolio alignment are influencing lending decisions.

Nordea has also reduced emissions from its own operations by more than 50% since 2019. That means it has exceeded its 2025 internal operations target and remains positioned for its 2030 operational climate goal.

RELATED ARTICLE: Nordea Asset Management Appoints Kasper From Larsen as Portfolio Manager 

Asset Management Targets Also Met

Nordea said ESG factors are now well integrated into its investment strategies. Its asset management arm uses active ownership and engagement to support transition across portfolio companies.

The bank said its Responsible Investment team at Nordea Asset Management leads much of that work. The team engages with investee companies and asset managers globally.

One area of engagement is methane emissions in the oil and gas sector. Nordea participates in the Oil and Gas Methane Partnership 2.0 framework, where it encourages companies to measure, disclose, and reduce methane emissions.

“Due to our dialogues, 15 companies have joined.”

Nordea also reported progress against several 2025 targets. It aimed to ensure that 90% of exposure to large corporate customers in climate-vulnerable sectors was covered by transition plans by the end of 2025. It reached 91%.

Nordea Asset Management targeted 80% of the top 200 emissions contributors in its portfolios to be either aligned with the Paris Agreement or subject to active engagement. It reached 93%.

The bank also aimed to double the share of net-zero-committed assets under management by 2025 compared with 2021. It reached 38.8%.

For operations and supply chain, Nordea met two further targets. It reduced internal operational emissions by 52%, above its 40% goal. It also ensured that suppliers covering 81% of related spending were either aligned with the Paris Agreement or subject to active engagement.

Why It Matters For Investors

Nordea’s progress gives investors a practical case study in how climate commitments can move across a bank’s operations.

The results cover lending, sustainable finance, fossil fuel exposure, asset management, internal emissions, and supplier engagement. That breadth matters because regulators and investors are increasingly focused on whether climate targets sit inside governance systems, not just annual sustainability reports.

For C-suite leaders, the message is also clear. Banks are using transition plans, sector exposure, and emissions data to shape capital access. Companies with credible climate strategies may find stronger financing options. Those without clear plans may face tighter scrutiny.

Nordea’s update also reflects a broader European finance trend. Climate targets are becoming part of credit risk, investment stewardship, and capital allocation. As sustainable finance matures, the next test will be whether banks can keep expanding transition finance while maintaining portfolio integrity and measurable emissions reductions.

ESG News Editorial Team

The ESG News Editorial Team is comprised of veteran financial journalists and sustainability analysts dedicated to providing real-time, objective reporting on global ESG regulations, climate finance, and corporate governance. Our desk monitors daily developments from the SEC, IFRS, CSRD and international regulatory bodies to ensure our 1M+ readers receive accurate, data-driven insights into the evolving sustainable investment landscape. Follow the ESG News Editorial Team for expert reporting on global sustainability standards, ESG disclosures, and climate policy. Access over 10,000 investigative reports and real-time updates.