SEB has reviewed the report Banking on Thin Ice by Fair Finance Guide and Naturskyddsföreningen on Nordic banks' fossil fuel exposure. Here, we share our perspective on the information presented in the report.
The report addresses highly important issues. We share the view that climate change is one of the greatest challenges of our time and that the energy system needs to transition in order to limit global warming. At the same time, we do not agree with the report's methodology.
Of the financing that the report classifies as SEB's "fossil financing", around three quarters relate to companies that are in transition phase and are investing significant amounts in fossil-free energy generation and energy storage to phase out coal-fired power generation by 2030 at the latest, in line with the Paris Agreement. Many of these companies also have science-based net-zero targets, in line with the Science Based Targets initiative (SBTi). Nevertheless, financing provided to these companies is classified as "fossil" in the report. For companies to retire their fossil-based coal power generation, they first need to expand fossil-free power generation. This is not reflected in the report's methodology.
With regard to SEB's activities, we believe the report addresses these issues in a way that does not reflect the progress we have made in recent years. Today, exposure to energy companies' fossil fuel activities accounts for 1.7 per cent of SEB's total credit portfolio, down from 4.7 per cent in 2019. Between 2019 and 2025, SEB's credit exposure to upstream oil and gas activities* decreased by 84 per cent. The number of oil and gas clients in SEB's portfolio declined by approximately 80 per cent between 2020 and 2025. At the same time, since 2021, we have more than tripled the volume of financing and investments in activities that contribute to the sustainability transition in accordance with internationally recognised frameworks and market standards for sustainable finance.
Today, SEB has only a very limited number of oil and gas clients remaining, all of them in Norway. Our business relationships with these companies are governed by our Policy on Fossil Fuels, which means that SEB does not provide dedicated financing for specific exploration or production projects, including expansion projects. In addition, the policy restricts financing of activities in sensitive areas such as the Arctic.
Today, fossil fuels continue to play an important role across many parts of society, including transport, industry, heating, agriculture, healthcare, and defence. Therefore, the transition needs to take place in a way that does not jeopardise essential societal functions or Europe's energy security, particularly in light of the challenging geopolitical situation in the world. SEB's position is that demand for fossil fuels needs to decline. We therefore support an orderly transition by helping our clients invest in electrification and fossil-free energy production in line with the Paris Agreement and the analyses of the International Energy Agency (IEA).
*Extraction and production, oilfield services and offshore activities.
SEB's climate targets
SEB aims to achieve a net-zero credit portfolio by 2050 at the latest. To guide our business towards that ambition and measure our progress over time, we have developed two index measures, the Fossil Exposure Index and the Sustainability Activity Index, and established net-zero-aligned 2030 sector targets for seven sectors in our credit portfolio. Our progress on these targets is reported annually and reviewed by external, independent parties.
More information about our ambitions and targets
Questions and answers about our sustainability work and approach to fossil fuels
SEB's sustainability policy
Our operations are governed by a number of policies and instructions. Within the sustainability area, we follow our Sustainability Policy, thematic policies, sector policies and other Group-wide policies.
These documents guide our work and describe our position on specific key issues and sectors that are considered particularly important from an environmental and social perspective. They are updated annually.