Net-Zero Banking Alliance Transition Plan
The Transition Plan outlines our strategy and approach to achieving a credit portfolio with net zero emissions by 2050 or earlier.
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).
Our ambitions and goals
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
Ambition: To increase average
activity 6x-8x by 2030,
compared to a 2021 baseline.
Outcome 2023: +123%
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. 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. 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).
The Carbon Exposure Index methodology was modified during 2023. The reporting currency was changed from SEK to EUR to better capture the currency mix of the credit exposure. In addition, the power transmission sector was 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.
In addition, the Carbon Exposure index corridor was adjusted. 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 and sustainable savings and investments 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.
Volume, indexed – measuring the development of sustainability labelled loan products (such as green loans, leasing and mortgages. We aim for an increase of ten times by 2030.
Outcome 2023: increased by 129 per cent compared to 2021, to SEK 259 billion.
Volume, indexed – measuring the result of advising our customers on the capital market on sustainable finance, volumes related to for example green bonds and sustainability-linked bonds. We aim for an increase of three times by 2030.
Outcome 2023: increased by 67 per cent compared to 2021, to SEK 111 billion.
Volume, indexed – measuring investments supporting entrepreneurs and new companies within the greentech and cleantech area. We aim for an increase of six times by 2030.
Outcome 2023: SEB Greentech VC increased its investments by 239 per cent compared to 2021, to SEK 232m.
Share of AuM – funds that have sustainable investments as its objective, share of asset under management, SEB’s fund offering, own and external. We aim for an increase of eight times by 2030.
Outcome 2023: increased by 55 per cent, compared to the baseline in 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). As of April 2024, the targets now cover SEB’s lending commitments to seven sectors – oil & gas, power generation, steel, car manufacturing, Swedish household mortgage, heavy vehicle manufacturing and shipping. These sectors accounted for 77 per cent of SEB’s financed emissions in 2022. Below is a description of all the seven sector targets.
The target 1), set in 2022, 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 2023, the absolute financed emissions were 6.6 million tonnes CO2e, a reduction of 64 per cent.
1) In 2023, SEB revised its target for the oil & gas sector and we now strive for a reduction of in absolute financed emissions of 70 per cent by 2030, compared with 55 per cent previously.
The target, set in 2022, is to reduce the financed emission intensity to 70 g CO2e/kWh by 2030, a reduction of 44 per cent, compared with a 2020 baseline. As per year-end 2023, the financed emission intensity was 82 g CO2e/kWh, a reduction of 35 per cent.
The target, set in 2022, is to reduce the financed emission intensity to 0.98 tonne CO2e/tonne steel by 2030, a reduction of 29 per cent, compared with a 2020 baseline. As per year-end 2023, the financed emission intensity was 1.43 tonne CO2e/tonne steel, an increase of 3 per cent.
The target, set in 2022, is to reduce the financed emission intensity to 61 g CO2e/km/vehicle by 2030, a reduction of 62 per cent, compared with a 2020 baseline. As per year-end 2023, the financed emission intensity was 134 g CO2e/km/vehicle, a reduction of 16 per cent.
The target, set in 2022, is to reduce the financed emission intensity to 2.18 kg CO2e/m2 by 2030, a reduction of 30 per cent, compared with a 2020 baseline. As per year-end 2023, the financed emission intensity was 3.80 kg CO2e/m, an increase of 6 per cent.
This target, set in 2023, aims to increase the share of Zero Emission Vehicles in new sales from 0.5 per cent in 2022 to 35 per cent by 2030 compared to the base year 2022. This is 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.
Outcome will be reported November 2024.
This target, set in 2024, aims to reduce the average emission intensity by 41 per cent by 2030 compared to the base year 2022. The target covers all lending where ships are used as collateral for the lending, which makes it possible to follow the emission development at the ship level. The financed vessels and the credit exposure covered are the same as those covered by reporting under the Poseidon Principles, the global framework for responsible shipping that SEB signed in 2020.
Outcome will be reported November 2024.
Key facts about the shipping 2030 target
- The greenhouse gas (GHG) emissions include the direct emissions coming from the combustion of fossil fuels (Tank to Wake GHG emissions) and the indirect upstream emissions resulting from fuel production, transport, and storage (Well to Tank GHG emissions).
- The financed emissions covered by the 2030 target for the shipping sector account for 11 per cent of the bank’s financed emissions in 2022.
- The metric used is a debt-weighted average portfolio Annual Efficiency Ratio (AER) expressed in g CO2e / tonne.nautical mile. The baseline for 2022 was 9.8 g CO2e / tonne.nautical mile.
- The 41 per cent AER reduction target by 2030 compared to 2022 is aligned with the assumptions from decarbonisation trajectories of the shipping sector developed by DNV Maritime Advisory under the 1.5C Initiative for shipping. The 1.5C Initiative for Shipping was formed by a group of 10 shipping banks with the objective of developing emission intensity trajectories compatible, under given assumptions, with “1.5C or low overshoot” scenarios.
Net-Zero Banking Alliance sector targets
| Sector | Metric | Financed emissions target Δ 20201) – 2030 |
Δ 2020 - 2023 | |
|---|---|---|---|---|
| Oil and Gas E&P2) and refining | mt CO2e3) | -56% → -70% | -64% | |
| Power generation | g CO2e/kWh | -44% | -35% | |
| Steel | t CO2e/t steel | -29% | +3% | |
| Car manufacturing | g CO2e/km | -62% | -16% | |
| Swedish household mortgages | kg CO2e/m2 | -30% | +6% | |
| Heavy vehicle manufacturing | % of ZEV4)in new sales | 35%1 | +0,4 p.p.6) | |
| Shipping | g CO2e/t.mn5) | -41% | -12% | |
|
All figures are non-audited. 1) Baseline for Heavy vehicle manufacturing and Shipping is per 2022 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). |
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SEB sets net-zero aligned 2030 target for shipping
The emission intensity in the bank’s shipping portfolio must be reduced by 41 per cent by 2030.
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