Questions and answers about SEB's sustainability work and fossil fuels

What is SEB’s view on climate change? 

• We share the view that climate change is one of the biggest challenges of our times. In order to limit global warming, the world needs to transition.
• Fossil-based infrastructure needs to be replaced with sun, wind and other renewable energy sources. We also need new solutions in a number of sectors.
• This transition will require significant investments.
• As a bank, we play an important role in enabling these investments.

How does SEB view its role in the sustainability transition? 

• 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
• Our sustainability strategy is aligned with the development needed by to meet the goal of limiting global warming to 1.5 degrees Celsius.
• We can achieve the greatest positive impact by partnering with our customers and supporting them in their transitions.
• Our work in this area is long-term and fact-based.
• We are reducing our exposure to fossil fuels at the same time as we increase financing of sustainability-related projects.

What are the key parts of SEB’s sustainability strategy? 

• An important part of our strategy is our engagement within Net Zero Banking Alliance (NZBA).
  • It is an alliance between global banks that is supported by the United Nations and aims to accelerate the pace in the transition. SEB has been part of NZBA ever since the start in 2021.
  • By joining NZBA, SEB has committed to:
    • align its credit portfolio with pathways to net-zero by 2050 or sooner and to
    • set net-zero aligned interim targets for 2030 for specific sectors, which is an important tool in our strive towards net-zero.
  • We have also set own goals and ambitions in order to:
    • reduce the bank’s fossil exposure (Carbon Exposure Index).
    • increase our sustainability activities (Sustainability Activity Index)
  • We are convinced that society must reduce its dependence on fossil fuels, given its significant and negative impact on the climate. That means our Sector Policy on Fossil Fuels is also an important part of our sustainability strategy.

What measurable progress has SEB made? 

• SEB’s exposure to fossil fuels – relating to both power production and oil & gas – has declined by 39 per cent since 2019. The bank’s goal is to reduce this exposure by 45-60 per cent by 2030.
• SEB’s sustainability activities[1] have increased by 123 per cent since 2021. The bank’s goal is an increase of 6-8 times by 2030.
• As part of NZBA, SEB has set net-zero aligned interim targets for 2030 for seven different sectors, covering 77 per cent of the bank’s financed emissions during 2022. At the end of 2022, the financed emissions had decreased by 47 per cent compared with 2020.
  • Relating specifically to the sector oil & gas, SEB’s financed emissions has declined by 61 per cent between 2020-2022. The bank’s goal is that it should decline by 70 per cent until 2030.

What does SEB's fossil fuel policy say?

• Fossil fuels are today a large part of the global energy systems and the strongest contributor to climate change. SEB's position is that the demand for fossil fuels needs to decrease, while we at the same time need rapid growth of sustainable and affordable alternatives.
• The policy complements the goals within fossil fuels that the bank has set and defines SEB's stance towards different types of fossil fuels and restrictions in terms of financing.
• According to the policy, SEB expects companies to have a transition plan[2].
• In accordance with the policy, SEB does not provide dedicated financing for specific exploration and production projects, including expansion projects.

Is it correct that SEB lends money to fossil fuel companies?

• SEB has a few customers in the energy sector that partly have fossil operations. This is above all in Norway, where the oil and gas sector has been a large and important industry.
• However, we want to be clear that our direction is clear, that we are actively working to reduce our fossil exposure in accordance with our goals and in line with the development needed to reach the goals of the Paris Agreement.
• We actively and transparently communicate on our progress.
• We support customers through financing that enables them to transition and make large investments in renewable energy. In this way, we can fulfill the goals of the Paris Agreement and contribute to reducing our societies' dependence on fossil fuels.
• We do not provide dedicated financing for specific exploration and production projects, including expansion projects, which is regulated in our fossil policy.

Is it correct that you lend money to companies involved in fossil expansion?

• We do not provide dedicated financing for specific exploration and production projects, including expansion projects, which is regulated in our fossil policy.
• We have a few customers in the energy sector that are partially fossil-based and provide financing for these companies' day-to-day operations, which is necessary if they are to be able to transition.
• We also finance these companies' large investments in renewable energy.

Is it correct that SEB is the major Swedish bank whose loans lead to the largest emissions of greenhouse gases? 

• SEB is, unlike other Swedish banks, a large corporate bank in Norway where the oil and gas sector has been a large and important industry. This is reflected in Fair Finance Guide's comparisons.
• The calculations in the Fair Finance Guide report on SEB's financed emissions are based on 2020 data, while the calculations for most other banks apply to 2022 and 2021, which affects the outcome. More information can be found here (in Swedish): Frågor och svar om SEB:s hållbarhetsarbete och fossila bränslen | SEB (sebgroup.com)
• If society is to meet the goals of the Paris Agreement, the companies that have the greatest climate footprints must transition.
• We make the greatest positive impact for the climate by partnering with our customers and supporting them in their transitions.
• Our commitments related to the Paris Agreement and NZBA are hence not in conflict with supporting customers with a large climate impact to transition – on the contrary.

In the debate, it is sometimes said that the fossil fuel companies lack transition plans, what is your view on that?

• Concerning our customers, we expect the companies to have a transition plan², which is stated in SEB's Sector Policy on Fossil Fuels and Environmental Policy.

Why doesn't SEB just terminate the customer relationships with the fossil fuel companies?

• We can achieve the greatest positive impact for the climate by partnering with our customers and supporting them in their transition.
• If society is to succeed in fulfilling the Paris Agreement, the companies with the largest climate footprints must also adapt.
• If, on the other hand, we do not share the same goals and do not have an opportunity to influence, we also end customer relations. This is something SEB has done in recent years, which is also visible through the decline in SEB’s Carbon Exposure Index and in the financed emissions for the oil & gas sector.

[1] Sustainability-related lending, sustainable finance advisory, venture capital investments within Greentech, and sustainable savings as a share of SEB’s total fund offering.

[2] Meaning a strategy that lays out the undertaking’s targets, actions and resources for its transition towards a low carbon economy with the objective of limiting global warming to 1.5°C.