Nature and biodiversity

The loss of natural capital and biodiversity is one of the most critical global threats alongside climate change. Not only does it threaten the natural world, but it also presents significant economic risks that directly impact global markets and investment portfolios. It is therefore important to SEB to integrate environmental considerations, focusing on nature and biodiversity, throughout our activities. 

The terms nature and biodiversity

The terms "nature" and "biodiversity" are often used interchangeably, but have distinct definitions:

• Nature encompasses the entire physical world, landscapes, and ecosystems. It represents the broader environment in which life exists.
• Biodiversity refers specifically to the variety of life within these ecosystems, including the diversity of genes and species. 

This distinction is important, as it enables the specific challenges related to the conservation of living organisms and their habitats to be addressed while also considering the broader natural context. 

Nature and biodiversity loss

As emphasised by the Dasgupta Review and the World Economic Forum, the erosion of natural capital – the resources such as forests, soils, water and air – poses a substantial threat to the stability and sustainability of our economies. Industries with direct dependencies on nature, such as agriculture, forestry, and fisheries, are at heightened risk of disruption, potentially affecting over half of the global GDP.

The loss of natural capital and biodiversity can lead to supply chain interruptions, increased operational costs, and market volatility, challenging long-term financial performance. To mitigate these risks, it is important for businesses and financial institutions to incorporate nature and biodiversity considerations into their strategic planning, investment decisions, and risk management frameworks. Recognising the intrinsic value of nature and prioritising sustainable practices will not only safeguard natural resources but also enhance economic resilience and support sustainable development.

Sources:

• The Economics of Biodiversity: The Dasgupta Review (pdf)
• World Economic Forum article: 50% of the global economy is under threat from biodiversity loss

Addressing biodiversity loss through sustainable finance

In recent years, considerations related to nature and biodiversity have been incorporated into various financial instruments and investment strategies. SEB supports its corporate and institutional clients in integrating nature and biodiversity considerations into financing structures. One example is Stora Enso’s sustainability-linked financing framework, published in 2023, where biodiversity was included in the form of a KPI, and where SEB was sole structuring advisor.

SEB also supports institutional clients by providing insights on the development of the market in relation to nature and biodiversity. Moreover, SEB can help investors assess their portfolios for biodiversity-related risks and advise corporate clients on how to best integrate biodiversity targets into loan and bond structures.

Related articles:

• SEB advisor to Stora Enso on framework for sustainable financing
• SEB provided analysis when pension company developed biodiversity roadmap

Water challenges and opportunities

Water is intrinsically linked to nature, biodiversity and climate, and forms an important part of SEB’s broader environmental approach. Water-related challenges – including scarcity, pollution, flooding and ageing infrastructure – can pose risks to ecosystems, society and the economy, while also creating a growing need for investment and innovation. 

Through SEB Water, a unit formed in 2024, the bank works to deepen understanding of water-related risks and opportunities, support clients with advice and financing solutions, and contribute to the transition needed to strengthen water resilience and sustainable water management. This complements SEB’s broader work to integrate nature, climate and water considerations into financial decision-making.

Our environmental policy on climate, nature and water

SEB impacts nature both directly, through our own operations, and indirectly, through business relations. We therefore integrate environmental considerations throughout SEB’s activities. To do so, we have developed the Environmental Policy on Climate, Nature and Water, which guides the bank’s work in these areas.

The policy highlights the importance of the interlinkage between climate, nature and water, and that the thematic areas should not only be seen as separate aspects, but as parts of a bigger biosphere system with dependencies and impacts. 

SEB supports companies in managing natural resources responsibly, using the following guiding principles:

• We engage in industry and academic collaboration to build tools, knowledge, and to support the development and integration of nature and biodiversity into financial decision making.
• We support companies pivoting their business models from linear to circular, and share expertise and support businesses in their circular economy transition.
• We aim to educate our employees and increase awareness and knowledge in all parts of SEB regarding nature.

SEB approaches the work with nature and biodiversity in different ways depending on the sector. For example, sector policies are applied where nature-related issues are found to be a sector risk. Sector policies may include requirements of for example no deforestation, no material adverse impact on sensitive environmental areas, no trade in endangered species or application of the mitigation hierarchy. 

SEB continuously works to develop the policies and other approaches to support companies in their work to reduce adverse impact on nature and biodiversity.

Our sustainability policies

Collaborations

One important part when working with nature and biodiversity is collaboration. These are some initiatives that SEB is engaged in:

Business@Biodiversity Sweden

Through the industry collaboration Business@Biodiversity Sweden, SEB takes part in knowledge sharing and good practice on managing biodiversity in business and finance. The network consists of large Swedish corporates across different sectors, e.g. forestry, mining, utilities and finance, which creates a good forum for discussion from different points of view.

Mistra Biopath

Mistra Biopath is a collaboration between the financial industry, corporates, and academia. SEB engages in industry and academic collaboration to build tools and knowledge, and Mistra Biopath as a research programme creates a platform to test and develop tools and financial metrics for integrating biodiversity into financial decision making.

UNEP FI Taskforce on Nexus between Climate, Nature and Pollution

As signatories to PRB (Principles for Responsible Banking) SEB has contributed to the development of guidance on circular economy as an enabler for responsible banking through contribution to the Taskforce working group. The initiative seeks to guide how banks can implement or operationalise the interlinkages between circular economy and climate, nature, pollution, and healthy and inclusive economies. For example, banks helping to finance actions to improve carbon storage via peatland restoration may lead to multiple additional benefits beyond climate change, for example for nature and biodiversity.  

The full report:

Circular Economy as an Enabler for Responsible Banking: Leveraging the Nexus between Circularity and Sustainability Impact – United Nations Environment – Finance Initiative (unepfi.org)

SEB Asset Management's approach to biodiversity

SEB Asset Management, the fund company of SEB, addresses biodiversity as part of its broader sustainability policy. A key commitment is the exclusion of companies that negatively impact threatened species, sensitive ecosystems, or breach biodiversity-related norms. 

As a signatory of the Finance for Biodiversity Pledge, SEB Asset Management monitors portfolio impacts and dependencies on nature, and has set targets related to deforestation and land use, with a special focus on high-risk commodities such as soy, timber and palm oil.  

Engagement remains a central tool: during 2025, SEB Asset Management conducted 139 biodiversity-related dialogues with 110 companies, reinforcing its active ownership approach. 

SEB Asset Management – Sustainability Review 2025 (pdf)