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Ambitions and goals

As part of our sustainability strategy and ambition to be a leading catalyst in the transition to a low-carbon society, SEB strives to reach a net-zero credit portfolio by 2050 at the latest. 

In order to steer our business towards that goal, and to measure our progress along the way, we have developed two proprietary metrics – the Carbon Exposure Index (The Brown) and the Sustainability Activity Index (The Green) – and set interim 2030 sector targets in line with our commitment to the Net-Zero Banking Alliance (NZBA).

Ambitions and goals

Carbon Exposure Index - The Brown

Carbon Exposure Index

Goal: To reduce fossil fuel exposure by
45-60% by 2030, compared
to a 2019 baseline.

Outcome 2023: -39 %
Sustainability Activity Index - The Green

Sustainability Activity Index

Ambition: To increase average
activity 6x-8x by 2030,
compared to a 2021 baseline.

Outcome 2023: +123 %
Sector targets

Net-zero interim 2030 targets

Ambition: To align the credit
portfolio with pathways
to net-zero by 2050.

Outcome 2023: -47 % reduced financed emissions 

Carbon Exposure Index – The Brown*

The Carbon Exposure Index is a volume-based metric capturing our fossil fuel credit exposure. Our goal is to reduce the fossil credit exposure in SEB's energy portfolio, which includes power generation and transmission as well as oil and gas (upstream-related and refining & distribution), by 45–60 per cent by 2030 compared with a 2019 baseline.

Reaching this goal means that we will be in line with, or outperform, the strictest 1.5°C scenario assumptions provided by the International Energy Agency and Network of Central Banks and Supervisors for Greening the Financial System (NGFS).

At year-end 2023, SEB’s fossil fuel credit exposure had declined by 39 per cent since the end of 2019. As a share of the total credit portfolio, it now accounts for 2.6 per cent, down from 4.8 per cent at the end of 2019.

*The Carbon Exposure Index methodology has been modified during 2023. The reporting currency has been changed from SEK to EUR to better capture the currency mix of the credit exposure. In addition, the power transmission sector has been excluded from the scope to reflect the limited ability of grid owners to directly influence the fossil content in national electricity mixes. All historic numbers have been restated for the changes in the methodology.

The Carbon Exposure index corridor has been adjusted during 2023. The upper limit of the corridor in 2025 has been lowered to the average of the IEA and NGFS benchmark scenarios and the benchmark scenarios have been updated with the latest 1.5C aligned assumptions. 

Sustainability Activity Index – The Green

The Sustainability Activity Index is a volume-based metric capturing our sustainability activity, across four areas: 

  • Sustainability-related financing
  • Sustainable finance advisory
  • Greentech venture capital investments
  • Sustainable savings and investments (in line with the EU's Sustainable Finance Disclosure Regulation, SFDR), as share of SEB's total fund offering, own and external.

The ambition is to increase activity 6–8 times by 2030 compared with a 2021 baseline. 

At year end 2023, it had increased by 123 per cent compared with the end of 2021. As a share of the total credit portfolio, it now accounts for 8.5 per cent, up from 4.0 per cent at the end of 2021.

2030 sector targets for SEB's credit portfolio

In 2022, SEB set net-zero aligned 2030 interim targets for five sectors in its credit portfolio in line with its sustainability strategy and commitment to the Net Zero Banking Alliance (NZBA). The targets cover SEB’s lending commitments to the oil & gas, power generation, steel, car manufacturing, and Swedish household mortgage sectors. 

In conjunction with SEB's annual sustainability event on 15 November 2023, SEB presented a target for the heavy vehicle manufacturing sector.

The new sector target covers SEB’s lending commitments to the heavy vehicle manufacturing sector and is set against a 2022 baseline. The target is to increase the share of Zero Emission Vehicles in new sales from 0.5 per cent in 2022 to 35 per cent by 2030, in line with the assumptions of the International Energy Agency’s updated “Net Zero Roadmap – A Global Pathway to Keep the 1.5C Goal in Reach”.

Revised target for oil and gas

SEB has also revised its target for the oil & gas sector and now targets a reduction in absolute financed emissions of 70 per cent by 2030, compared with 55 per cent previously. 

.The six sectors now covered by the 2030 targets account for 76 per cent of the revised 2020 financed emissions and 66 per cent of the 2022 financed emissions.

Below is an update on the progress on the five targets set in 2022:

  • For oil and gas (exploration, production and refining), the revised target is to reduce absolute financed emissions to 5.6 million tonnes CO2e by 2030 (a 70 per cent reduction compared with a 2020 baseline*). As per year-end 2022, the absolute financed emissions were 7.3 million tonnes CO2e (a 61 per cent reduction compared with a 2020 baseline).
     
  • For power generation, the target is to reduce the financed emission intensity to 70 g CO2e/kWh by 2030 – a reduction of 44 per cent. As per year-end 2022, the financed emission intensity was 95 g CO2e/kWh – a reduction of 24 per cent.
     
  • For steel, the target is to reduce the financed emission intensity to 0.98 tonne CO2e/tonne steel by 2030 (a reduction of 29 per cent). As per year-end 2022, the financed emission intensity was 1.47 tonne CO2e/tonne steel (an increase of 6 per cent).
     
  • For car manufacturing, the target is to reduce the financed emission intensity to 61 g CO2e/km/vehicle by 2030 (a reduction of 62 per cent). As per year-end 2022, the financed emission intensity was 143 g CO2e/km/vehicle (a reduction of 10 per cent)
     
  • For Swedish household mortgages, the target is to reduce the financed emission intensity to 2.18 kg CO2e/m2 by 2030 (a reduction of 32 per cent). As per year-end 2022, the financed emission intensity was 3.12 kg CO2e/m (a reduction of 2 per cent).

*2020 baselines have been restated for all sectors to reflect updated emissions data from our customers within the corporate sectors and updated selected emission factors for the Swedish household mortgage sector.

Sector Metric Financed emissions target
Δ 20201) – 2030
Δ 2020 - 2022
Oil and Gas E&P2) and refining mt CO2e3)   -56% → -70%   -61%
Power generation g CO2e/kWh   -44%   -24%
Steel t CO2e/t steel   -29%   +6%
Car manufacturing g CO2e/km   -62%   -10%
Swedish household mortgages kg CO2e/m2   -32%   -2%
Heavy vehicle manufacturing % of ZEV4)in new sales   35%1   n/a

1) 2020 baseline has been restated te reflect updated emission data from customers and emission factors.
2) Exploration and production
3) Financed emissions
4) Zero Emission Vehicles

SEB’s Methodology Document describes the methodology we apply for setting net-zero aligned 2030 sector targets for our credit portfolio, in line with our sustainability strategy and our commitment to the Net-Zero Banking Alliance (NZBA).

Contact us

SEB's sustainability experts have extensive knowledge in areas such as climate and financing solutions, sustainable investments and regulatory development in the European Union.

 

Reach out to our sustainability contacts