SEB Group will measure the environmental impact of its investments and loan portfolio thereby facilitating the transition to sustainability

With a view to supporting clients in their efforts to reduce their environmental impact as well as to reduce its fossil fuel exposure, SEB has updated its sustainability strategy to support the role of SEB Group in transitioning to a sustainable society. The bank has set new climate goals and will begin measuring the environmental impact of its investments and loan portfolio.

“Sustainability has long been on the agenda of SEB banka, supporting customers in their sustainable transformation and offering sustainable financial services solutions. Therefore, the new sustainability strategy of SEB Group is a natural step to accelerate the transition of individuals, businesses and society towards a more sustainable future. With this strategy, SEB sets out concrete actions and goals that will help to achieve the greatest positive impact on the climate,” points out Ieva Tetere, CEO of SEB banka.

The updated sustainability strategy is part of SEB Group’s Business Plan for 2022-2024 as well as a cornerstone of SEB’s Strategy 2030. By focusing on the importance of climate neutrality, SEB will continue to expand its activities in the area of sustainability and refine its role in the transition of society and the economy towards the “green” direction, as well as integrate sustainability aspects into its products, processes and decisions.

“The goals set by SEB Group to reduce impact on the climate are ambitious, but it is clear that without active and determined action on part of businesses and countries, the goals set out in the Paris Agreement on climate change will not be achieved. At the same time, we have the necessary resources and expertise to support our clients in this challenging but necessary transformation process,” says Viktors Toropovs, Head of Sustainability Development at SEB banka in Latvia.

In its strategy, SEB Group has defined concrete outcomes to be achieved in terms of three indicators, including the Carbon Exposure Index, which aims to reduce the share of loans directly related to fossil resources by 45-60 percent by 2030. This includes the production and distribution of electricity and the extraction of oil and gas.

The Sustainability Activity Index shows sustainable lending, financial advice, investment products and venture capital investments within Greentech aiming to increase activity 6-8 times by 2030.

The Transition Factor, in turn, reflects our customers’ performance in transitioning their business models in line with the Paris Agreement. Using this assessment, we get a better understanding of our clients’ progress in the transition, and it enables us to support them in reducing their carbon footprint.

In 2009, SEB Group developed its first sustainability strategy. Thereafter the bank continued to strengthen the guidelines within the climate area. In 2019, SEB signed the UN initiative Principles for Responsible Banking, which means that we have committed to continuously adapt our business strategy to align and contribute to the UN Sustainable Development Goals and the Paris Agreement. We have also assumed a number of other important international commitments that support transitioning to sustainability, such as the Net Zero Banking Alliance, the Net Zero Asset Managers Initiative and the Poseidon Principles.

In February 2021, SEB adopted an updated sector policy on fossil fuels to refine the bank’s guidelines to include more areas and clearer positions, including a roadmap for how SEB will phase out its exposure to coal and to unconventional oil. The same month, SEB’s fund company SEB Investment Management strengthened its sustainability policy, which included implementing uniform exclusion criteria for all funds managed by SEB and excluding fossil fuels from all funds. To find out more about SEB’s ambitions and goals in transitioning to sustainable development, we invite you to watch the video recording of SEB Group’s global event “Accelarating change – partnering for a sustainable transition”.