Swedbank Establishes 2030 Climate Targets for Loan Portfolio
Swedbank AB (publ)
Swedbank has set 2030 decarbonisation targets for its lending portfolio to tackle climate change. It set targets for sectors like mortgages, commercial real estate, oil and gas, and power generation.
Sustainability is at the heart of Swedbank's business strategy, and the bank is determined to help with a climate transition that meets 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 chance to help this sector make the switch to green energy. 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.
Swedbank's new climate targets cover mortgages, commercial real estate, oil and gas, power generation, and steel. It chose the sectors based on how they affect climate change, how they fit into its portfolio, and how much data was available.
“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.
Using the methodology outlined in the Partnership for Carbon Accounting Financials (PCAF), financed emission baselines were computed to establish the targets. Using baselines and science-based sectorial pathways, sector-specific emission reduction goals have been made to show how Swedbank's lending portfolio needs to change for financed emissions to go down 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. It will be very important to keep making progress toward a society without fossil fuels, and Swedbank is committed to working with customers, partners, and the public to reach the goals.
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