To further combat climate change, Swedbank has adopted 2030 decarbonisation targets for the lending portfolio. The targets are in line with the global 1.5° C target and have been set for the following sectors: mortgages, commercial real estate, oil & gas, power generation and steel. The targets are part of Swedbank’s commitment to the Science-Based Targets initiative and the Net-Zero Banking Alliance.

Sustainability is at the core of Swedbank’s business strategy, and the bank is determined to facilitate a climate transition that aligns with the 1.5° C target. 

“Climate change is one of the greatest challenges of our time. And as Sweden’s largest real estate bank, we have a unique opportunity to facilitate the green energy transition in this sector. This also applies to our home markets in Estonia, Latvia and Lithuania. We are doing this by setting ambitious climate targets for 2030 based on scientific research,” says Jens Henriksson, President and CEO, Swedbank.  

The new climate targets
Swedbank’s new climate targets cover five business sectors: mortgages, commercial real estate, oil & gas, power generation and steel. We have chosen the sectors based on their contribution to climate change, the bank’s portfolio exposure and data availability. 

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“Urgent actions are needed to limit global warming. Swedbank is taking an active role in this effort by advising and supporting our clients in the transition,” says Jens Henriksson.

To create the targets, financed emission baselines were calculated using the methodology from Partnership for Carbon Accounting Financials (PCAF). Using the baselines and science-based sectorial pathways, sector-specific emission reduction targets have been developed which show how Swedbank’s lending portfolio needs to change in order for the financed emissions to decrease in line with global climate targets.

The climate targets for 2030, by sector:

• For mortgages, the target is to reduce the financed emission intensity (kgCO2e/m2) by 39 per cent.
• For commercial real estate, the target is to reduce the financed emission intensity (kgCO2e/m2) by 43 per cent.
• For oil & gas (exploration, production and refining), the target is to reduce the absolute financed emissions (tCO2e) by 50 per cent.
• For power generation, the target is to reduce the financed emission intensity (tCO2e/MWh) by 59 per cent.
• For steel, the target is to reduce the financed emission intensity (tCO2e/tonne) by 29 per cent.

All targets have been set against a 2019 baseline, and they have been sent to the Science-Based Targets initiative for external validation. Continued common progress towards a fossil-free society will play a central role, and Swedbank is committed to proactively working together with customers, partners, and civil society to achieve the targets.