Sustainable Finance

Danske Bank Aims to Reduce CO2 in Loan Portfolio

Published on: 3 February 2022 08:44 PM
by KnowESG

A Brief Summary

Nordic bank based in Copenhagen Danske Bank announced a set of new 2030 sector-based emission reduction targets, including shipping, energy utilities, and oil and gas exploration and production, all of which are carbon-intensive industries. Danske Bank announced that by 2050, it wants to have a net-zero loan portfolio.

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The new interim climate objectives come on the heels of Danske Bank's climate-focused activities in recent years to help with the green transition. With these goals, the firm plays an even more active role in lowering CO2 emissions in the societies in which it operates, assisting its customers in making more sustainable transitions and contributing to the required green transition.

The interim 2030 targets are based on a 2020 baseline and cover the three lending sectors that contribute the most CO2 emissions in its portfolio. The goal for oil and gas production is to reduce lending exposure by 50%, while the goal for shipping is to reduce emissions per unit moved by 20-30%.

Carsten Egeriis, Chief Executive Officer at Danske Bank, said: “We have more than 3.3 million customers, and we cover the majority of sectors – including sectors that have a significant carbon footprint. This is why we are a part of the solution needed to address the climate challenges that we face. For the most part, our customers are doing a lot of work related to the green transition. But we also recognise that we have an obligation – as a leading Nordic bank, and with the resources we have at our disposal – to support our customers and contribute to the green transition in the societies that we are a part of, as well as to support Denmark in reaching its 2030 target for reduction in CO2 emissions.”