The automotive sector is as complex as it is large, with the supply chain including hundreds of companies delivering thousands of components. Supply chain management has always been a challenge for the industry, and even more so as business goals shift from efficiency to also include sustainability.
Currently, the automotive and mobility industries contribute to approximately 10% of annual global greenhouse gas emissions.
The adoption of BEVs (Battery Electric Vehicles) has been a significant leap forward in reducing direct emissions. However, this only speaks to part of the automotive sector's environmental impact. To achieve a carbon-neutral vehicle fleet, a transition to the circular economy throughout the entire product lifecycle, including a carbon-neutral supply chain, is necessary. In addition, fuel consumption, tailpipe emissions, and energy usage in production must be reduced.
The automotive industry is at a tipping point. Reaching net zero by 2050 requires investments and deployment of capital in trillions of euros. Herein lies the challenge – and the opportunity for the automotive industry to make a significant impact.
SEB continuously advises and supports clients in the Nordics and across Europe with sustainable financing solutions.
We allocate capital for companies in numerous sectors – including the automotive sector – to support their decarbonisation and sustainability goals, while also giving investors an opportunity to be part the journey.
We are actively involved in growing sustainable financing, and together with the World Bank, we developed the first green bond concept in 2007/2008. Since then, the sustainable finance market has expanded to include new products such as:
The sustainable financing raised by automotive and mobility companies are aimed at initiatives such as developing new technologies, retiring high-emitting assets, scaling production or re-adjusting existing business models. At SEB we also support automotive clients looking to convert existing revolving credit facilities into a sustainability-linked loan.
That said, supporting the net zero transition goes beyond financing. Our teams also provide insights and solutions to clients as they adapt to a low-carbon world.
SEB Greentech Venture Capital is investing in the Dutch company Rocsys, which manufactures robots for autonomous charging of electric vehicles. SEB led the financing round totalling USD 36 million.
By offering advisory services, innovative and sustainable financing and investment products, we're helping our clients to reach their sustainability targets.
SEB's sustainability experts have extensive knowledge in areas such as climate and financing solutions, sustainable investments and regulatory development in the European Union.