Our approach to fossil fuels

Fossil fuels are a major part of the global energy systems today. They are also the largest driver of climate change, contribute significantly to local pollution, and have direct and indirect impacts on nature. SEB facilitates the transition away from fossil fuels by supporting fossil free alternatives and working towards our sector targets for 2030 to achieve net zero emissions by 2050 in line with the Paris Agreement. 

SEB’s fossil fuel policy is part of the transition structure within our sustainable business strategy. We believe in partnering with our customers on their transition journeys.  

In this policy, SEB recognises that different fossil fuels have different transition pathways and varying potential for demand reduction in society. Therefore, SEB engages with relevant companies in the fossil fuel sector to support a resilient and orderly transition to a low carbon economy while safeguarding energy security in our home markets.   

We have a restricted approach to coal mining. SEB has ended business relationships with companies where more than 5 per cent of revenue comes from thermal coal mining. SEB also avoids providing dedicated financing to infrastructure projects that are dedicated to thermal coal as well as equipment to both thermal and metallurgical coal mines.  

We also have a restricted approach to coal fired power generation. SEB avoids new business relationships where more than 5 per cent of revenue is from coal fired power generation. From 2026 this restriction also applies to existing business relationships. For Germany this takes effect in 2030. 

For the oil and gas sector, SEB is gradually reducing credit exposure and restricts financing of new exploration and oilfield services activities. In dialogue with our customers, the bank continues to engage with clients on transition plans and projects in renewable energy. 

The fossil fuel policy also covers our approach to unconventional oil, for example extraction of oil and gas from oil sand (tar sand) and oil shale, and extraction of oil and gas through hydraulic fracturing (fracking), and sensitive areas such as the Arctic.  

We regularly review our policies to reflect changes in the external environment. The latest updates were adopted in October 2025. 

Summary of the main updates in the fossil fuel policy

• Oil and gas restriction: SEB avoids new business relationships with companies where more than 5 per cent of total revenues are derived from exploration and production of oil and gas.
  
  
• Exception related to Scope 3: SEB has required companies to disclose emissions reduction targets across Scope 1-3 for the short, medium, and long term. The updated policy allows exception for the Scope 3 requirement for existing business relationships involved in exploration and production of oil and gas.  

We stand by our climate commitments and our targets, which remain unchanged.  SEB’s direction is clear – we are, and will continue to be, part of the transition that must take place. A broad transition across all fossil-dependent sectors is necessary. At the same time, reducing fossil fuel demand is a complex global challenge, shaped by external factors such as markets and geopolitics – a reality that we must continuously adapt to. Therefore, we believe that a balanced approach is essential to reduce emissions and support climate goals while ensuring energy security. SEB maintains expectations for transition plans and keeps an ongoing dialogue with clients – recognising that industries progress at different paces and face different challenges.  

Sector Policy on Fossil Fuels (pdf)