Statements from SEB regarding proposals to the General Meeting

Shareholder Carl Axel Bruno (item 22 on the agenda for the 2023 AGM)

BankID is used broadly in society by, for example, banks, authorities and within healthcare and we feel assured that BankID fulfills the stringent requirements and the regulation that exist regarding technological security functions. In our assessment, the change that is described in the proposal is neither correct not necessary.

We would also like to emphasize that our customers’ security is of high priority and that we carefully follow the development in society and continuously review and strengthen our routines, processes and systems.

Shareholder Johan Appelberg (item 23 on the agenda for the 2023 AGM)

Proposal

The renewal of BankID on card is to be equated with a new BankID, even if the customer retains the same PIN and PUK code. To receive a new BankID on card through SEB, there are two ways today. Customers can either book an appointment at a bank branch and there identify themselves with a valid Swedish ID document, or call the telephone bank and identify themselves either with a digipass or mobile BankID (as there is no solution to identify oneself with BankID on card via the phone).

It is currently not possible to order BankID on card via the Internetbank, and we currently have no plans to introduce such a solution. However, we continuously review our processes.

Regarding the question about an automated dispatch of BankID on card when it has expired, it is not possible to introduce such a process. That’s because the regulation that SEB must follow stipulates that BankID-cards are to be equated with passports or other proof of identity, which means that no physical ID documents can be sent out without having first been ordered by the customer.

Greenpeace Nordic and the Swedish Society for Nature Conservation (item 24 on the agenda for the 2023 AGM)

Proposal

SEB has committed to continuously adapt its business strategy to contribute to the Paris Agreement and the UN Sustainable Development Goals, and has formulated a sustainability strategy that is aligned with the development needed by both SEB and its customers to meet the goal of limiting global warming to 1.5 degrees Celsius. As there are no generally accepted pathways that financial institutions should follow in the short, medium and long term, SEB has developed its own guidelines. In this context, SEB’s Index for Carbon Exposure is the most indicative and means that SEB will be in line with, or exceed, the most credible scenarios from The Network of Central Banks and Supervisors for Greening the Financial System (NGFS) as well as the International Energy Agency (IEA) for meeting the goals in the Paris Agreement. Being one of the founding signatories of the Net Zero Banking Alliance, SEB has also committed to align its credit portfolio with pathways to net-zero by 2050 or sooner, and has as part of this set net-zero aligned interim targets for specific sectors for 2030. Finally, SEB regards it as its role to enable the necessary sustainability transition by partnering with its customers, which means that SEB both engages with and supports its customers on their transition journeys but also that the bank ends customer relationships if it does not share the same goals and does not have an opportunity to influence. In addition, SEB wants its customers’ transitions to happen swiftly, but without causing unproportional consequences for society at large.

Below SEB provides more information about its sustainability strategy, the ambitions and goals the bank as adopted within the climate area, and about the bank’s view on its role in the sustainability transition.

Climate change is the biggest challenge of our time and our direction is clear – SEB is and shall be part of the transition that has to take place. We have committed to this by signing the Principles for Responsible Banking and by joining the Net Zero Banking Alliance, which means we continuously adapt our business strategy to contribute to the Paris Agreement and the UN Sustainable Development Goals.

This is highly important for us. Because as a bank, we have the ability, opportunity and responsibility to impact the world we operate in. That is also why we have made it our ambition to be a leading catalyst in the sustainability transition. We regard it as our role to enable the necessary change by partnering with our customers in their transition to more sustainable business models and helping society achieve net-zero emissions by 2050. This means that we both engage with and support our customers on their transition journeys, but also that we end customer relationships if we do not share the same goals and do not have an opportunity to influence.

We all have a big task ahead of us. The necessary sustainability transition will require major efforts from all of society if we are to achieve the desired outcomes. We must rethink most aspects of how we live, consume, transport, and manufacture. Adding to the challenge is the fact that the transition needs to happen swiftly, but without causing unproportional disruption to society at large.

We recognize that these are complex issues and that there are different views about the best way forward, and we welcome dialogue and cooperation with all stakeholders. This is also the reason why we continuously have, and throughout the years have had, extensive dialogue with different stakeholders and experts.

One key dimension of the transition that SEB fully recognizes is the need for society to decrease its dependency on fossil-related products, given their significant negative climate impact. The transition to a low-carbon society will at the same time require substantial investments. According to the International Energy Agency and other authorities, the incumbent energy companies play a very important part in this transition and will need significant amounts of capital to be able to transition. An important part of the capital needed for these investments will have to be generated by the current operations of these companies, and those activities are therefore in the short term a necessity for these companies’ and society’s ability to transition.

From our perspective, our commitments related to the UN’s sustainability goals, the Paris Agreement and the Net Zero Banking Alliance are not in conflict with supporting customers with a large climate impact to transition – on the contrary. If society is to meet the goals of the Paris Agreement, the companies that have the greatest carbon footprints must transition. It is also important to remember that fossil-related products will be a necessity to the functioning of our societies during the transition. To have companies that provide society with products that will be necessary during the transition as customers does not pose a conflict for us either, as long as they are at the forefront of the transition within their respective industries and able to show credible transition plans. In parallel, we also support companies and private individuals that consume these products to transition to less carbon-intensive production and consumption as well as renewable energy, and thereby also help address the demand side of the challenge.

In line with our ambitions, we have in recent years strengthened our commitments within the climate area:

Oil & gas strategy
SEB has developed an oil & gas strategy to gradually reduce SEB’s credit exposure towards the sector. In 2019 SEB defined a risk appetite in absolute terms for its credit exposure to the oil and gas exploration and production (E&P) and oilfield services sectors. The risk appetite level is revised downwards on an annual basis. Since 2019 the exposure has declined by 49% (2022).
Revised sector policy
In 2021, SEB strengthened its sector policy on fossil fuels and adopted a strategy which involves a gradual shift away from companies without a credible transition plan (Scope1&2&3) aligned with the Paris Agreement. It follows our conviction that we make the greatest positive impact for the climate by partnering with our customers and supporting them in their transitions. However, if – over time – the desired development doesn’t take place, we will exit the relationship. That is also part of our strategy.

The policy defines and regulates SEB’s view on the fossil-fuel industry, and includes, among other things, restrictions regarding financing activities as well as a roadmap for how SEB will phase out its exposure to different types of fossil fuels and extraction methods. It also strengthened SEB’s guidelines regarding environmentally sensitive areas such as the Arctic.
Updated Group sustainability strategy and new ambitions and goals
In 2021 SEB presented an updated sustainability strategy for the Group that outlines SEB’s role in the transition towards a sustainable society.

As part of this, SEB introduced a goal – the Carbon Exposure Index (The Brown) to reduce its fossil fuel credit exposure in the energy portfolio by 45 to 60% by 2030 compared with a 2019 baseline. This goal for the bank’s lending is derived from the International Energy Agency’s (IEA) and Network for Greening the Financial System’s (NGFS) 1.5 degrees Celsius aligned scenarios, stating that the supply of fossil energy needs to decrease by A/ IEA (world) 30%[1] and B/ NGFS (Europe) 45%.[2]

In addition, SEB also set an ambition – the Sustainability Activity Index (The Green) – to increase average activity within four areas by 6-8 times by 2030 compared with a 2021 baseline. These areas are sustainability-related lending, sustainable finance advisory, venture capital investments within Greentech, and sustainable savings[3] as a share of SEB’s total fund offering (own and external).

At the end of 2022, the Carbon Exposure Index had decreased by 17% compared with the 2019 baseline, which is in line with the 2030 trajectory. The Sustainability Activity Index had at the same time increased by 59% compared with the 2021 baseline, also in line with plan.
Net-zero aligned sector targets for the oil and gas (E&P and refining) sector
In addition to this SEB followed up its commitment to the Net Zero Banking Alliance (NZBA) by setting net-zero aligned sector targets for the oil and gas (E&P and refining) sector. For the NZBA-related targets, the main scenario used by SEB is the IEA’s Net Zero by 2050. According to this net-zero scenario, the emissions related to the combustion of oil and natural gas shall decrease by 23% by 2030 compared to 2020. In comparison, SEB’s net-zero aligned sector target for oil & gas (E&P and refining) is to reduce financed emissions by at least 55% by 2030.

SEB’s 2030 net-zero aligned sector targets:

Sector	Emissions, scope	Metric	2020 baseline	2030 target
Oil & Gas E&P¹⁾ and refining	S1&2&3²⁾	mtCO₂e³⁾	18.4	8.3 (-55%)
Power generation	S1&2	g CO₂e/kWh	123	70 (-43%)
Steel	S1&2	t CO₂e/t steel	1.40	0.98 (-30%)
Car manufacturing	S3⁴⁾	g CO₂e/km	153	61 (-60%)
Household mortgage Sweden	S1&2	kg CO₂e/m²	3.12	2.18 (-30%)

SEB will, as stated, gradually shift away from oil and gas companies that lack a credible transition plan and we are, as can be seen in our sustainability report, well on our way. Credible transition plans are individual and dependent on the structure and business mix of the company assessed. However, our aim, restrictions, requirements, and expectations are clearly stated in the combined disclosure of our ambitions and our policies. And we apply them when providing financial services to all our customers.

In conclusion, we would like to say that we appreciate dialog around these complex issues, and that we look forward to continued dialog with Greenpeace, the Swedish Society for Nature Conservation and other organisations.

[1] According to IEA’s “Net Zero by 2050 – A Roadmap for the Global Energy Sector”

[2] NGFS’s “Divergent Net Zero” scenario developed with the REMIND-MAgPIE 2.1-4.2 model for the EU region

[3] Article 9 funds, as defined by the EU’s Sustainable Finance Disclosure Regulation (SFDR)