The security situation in Europe has deteriorated significantly in the past decade. Europe now needs to significantly increase its security and defence investments to strengthen its deterrent level and defence capabilities. In addition, Sweden and Finland have recently joined NATO.
“It is our view that our policy framework needs to be updated to adapt to the evolving security landscape. As a responsible corporate citizen, SEB strives to play an active role in contributing to strengthening Europe’s defence, security and resilience through providing financial services and investments. This is of key importance to uphold and defend European democracy and freedom”, says Hans Beyer, Chief Sustainability Officer at SEB.
SEB recognises that the arms and defence sector is complex, with a number of embedded issues. Through the sector policy, which includes several restrictions, SEB seeks to mitigate such risks.
Summary of restrictions in the updated sector policy
- Controversial weapons: SEB avoids business relationships with companies that produce controversial weapons.
- Nuclear weapons: SEB avoids business relationships with companies, headquartered outside of a NATO country, involved in the development, testing, production, manufacturing, acquisition, possession or stockpiling of nuclear weapons. The updated policy thus means that SEB allows business relationships with companies involved in these activities, as long as they are headquartered in a NATO country. The background to this update is the deteriorated security situation in Europe, the increasing need for European nations to be able to defend themselves and build a credible deterrent level, and the fact that Sweden and Finland are now under NATO’s nuclear umbrella.
- Transactions: SEB avoids supporting transactions involving sales of arms and defence-related equipment that either lacks an export license from a country in the EU, EEA, the UK or Switzerland or is destined to countries or areas that are subject to EU embargo or other relevant sanctions. In addition, SEB expects companies to have a Human Rights Due Diligence (HRDD) process for its sales and export activities taking into account the characteristics of the product as well as the conflict and human rights situation of the export destination.
- Semi-automatic arms: A restriction regarding semi-automatic arms has been added. SEB avoids business relationships with companies producing semi-automatic arms intended for non-military and non-law enforcement activities.