SEB’s statements on shareholders’ proposals
Item 22: Proposal from the shareholder Carl Axel Bruno regarding that the bank shall contribute to improving Finance Sweden's procedures for issuing new BankID
SEB’s statement
Security is a highly priorities focus area of SEB. We are in close collaboration with Finansiell ID-Teknik BID AB (BankID) to maintain a high level of security. We continuously work to strengthen and develop our systems, routines, and processes. We continue to collaborate with other banks, the police, and authorities. Today, customers who want to download a new Mobilt Bank-ID must identify themselves with documents issues by Swedish Police authorities (passport or national identification card). New security features are being developed continuously.
Item 23: Proposal from the shareholder Carl Axel Bruno regarding that the bank shall contribute to improving security when using BankID
SEB’s statement
In recent years, we have seen a significant increase in the number of fraud cases in society, mainly through social manipulation via phone and SMS. SEB takes this development very seriously.
Our responsibility is to prevent and counter financial crime, such as fraud. We are in close collaboration with Finansiell ID-Teknik BID AB (BankID) to maintain a high level of security. We continuously work to strengthen and develop our systems, routines, and processes. We continue to collaborate with other banks, the police, and authorities. To further increase protection, our customers can choose additional security features and customise the level of protection, including delayed payments (for amounts over certain limits) and dual authorisation for payments and transactions. New security features are being developed continuously.
Item 24: Proposal from the shareholder the Swedish Society for Nature Conservation regarding revision of SEB's overall strategy before the end of 2025 so that it is fully aligned with the Paris Agreement and its goal of limiting global warming to 1.5°C
SEB’s statement
Climate change is one of the biggest challenges of our time and our direction is clear – SEB is and shall be part of the transition that must take place. Therefore, we have committed to continuously adapt our business strategy to contribute to the Paris Agreement. The sustainability strategy reflects our conviction that we achieve the greatest positive impact for climate 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.
A key part of our sustainability strategy is our engagement as a founding signatory of the UN-supported Net Zero Banking Alliance (NZBA) – the market standard for how banks can align their business with the objectives of the Paris Agreement. It means that SEB has committed to align its credit portfolio with pathways to net-zero by 2050 or sooner and to set net-zero aligned interim reduction targets for 2030 for specific sectors, including oil & gas. Additionally, SEB has developed its own proprietary metrics to reduce the bank’s fossil fuel credit exposure and increase sustainability-related activity. SEB also has a Sector Policy on Fossil Fuels that defines and regulates SEB’s view on the fossil-fuel industry. It includes restrictions regarding financing activities and a roadmap for how SEB will phase out its exposure to different types of fossil fuels.
SEB’s position is that the demand for fossil fuels needs to reduce at a faster pace than what we are seeing today. The reduction in the demand can be achieved through investments in, for example, electrification of industry and transportation and fossil-free energy production. The transition needs to be carried out in a responsible and orderly way, where supply and demand go hand in hand, to avoid energy crises that will impact the most vulnerable populations. This approach is also in line with the conclusions of the International Energy Agency, IEA.
In practice, SEB has between 2019 and 2024 increased its exposure to fossil-free energy production with 62 per cent and dedicated financing of renewable energy projects with 87 per cent. At the same time, the bank has reduced its credit exposure towards upstream oil and gas activities with 76 per cent. It is the combination of increasing financing of renewable projects and reducing exposure to oil & gas that enables SEB to contribute to the transition in society.
From our perspective, our commitments related to the Paris Agreement and NZBA are not in conflict with supporting customers with a large climate impact in their 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. 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.
More information
Net-zero aligned NZBA sector targets
In line with the NZBA, SEB has committed to align its credit portfolio with pathways to net-zero by 2050 or sooner. As part of this, SEB has set net-zero aligned interim targets for 2030 regarding reductions in financed emissions and emission intensity within specific sectors. These targets currently apply to seven sectors (oil & gas, power generation, steel, car manufacturing, heavy vehicle manufacturing, shipping, and Swedish household mortgages), which cover 77 per cent of SEB’s 2023 financed emissions.
The specific NZBA target for the oil & gas sector is to decrease financed emissions by 70 per cent until 2030 compared to a 2020 baseline. At the end of 2023, the absolute financed emissions from oil & gas had declined by 64 per cent compared with a 2020 baseline.
Additional information about our targets
SEB’s own ambitions and goals
In 2021, SEB presented an updated sustainability strategy for the Group. As part of this, SEB introduced a goal – the Carbon Exposure Index – to reduce its fossil fuel credit exposure in the energy portfolio by 45-60 per cent 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 per cent (footnote 1) and B/ NGFS (Europe) 45 per cent (footnote 2).
In addition, SEB also set an ambition – the Sustainability Activity Index – 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 (footnote 3) as a share of SEB’s total fund offering (own and external).
At the end of 2024, the Carbon Exposure Index had decreased by 53 per cent compared with the 2019 baseline, which is in line with the 2030 trajectory. The Sustainability Activity Index had at the same time increased by 175 per cent compared with the 2021 baseline, which is also in line with plan.
Additional information about our ambitions and goals
Sector Policy on Fossil Fuels
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 (Scope 1&2&3) aligned with the Paris Agreement. The policy is updated annually, and the latest update was adopted by SEB's Board of Directors in April 2024. 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. In accordance with the policy, SEB does not provide dedicated financing to specific exploration and production projects, including expansion projects.
Sector Policy on Fossil Fuels for the SEB Group (pdf)
Footnotes
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)