Our work with the climate transition explained

• We share the view that climate change is one of the biggest challenges of our time. In order to limit global warming, the world needs to transition.
• Fossil-based infrastructure needs to be replaced with sun, wind and other fossil free energy sources. This transition will require significant investments. As a bank, we play an important role in enabling these investments.

• Our direction is clear – SEB is and shall be a part of the transition that must take place.
• Therefore, we are committed to continuously adapting our business strategy to contribute to the Paris Agreement.
• Our climate transition strategy is aligned with the development required to meet the goal of limiting global warming in line with the Paris Agreement.
• We can achieve the greatest positive impact by partnering with our customers and supporting them in their transitions.
• Our work in this area is long-term and fact-based.
• We are reducing our exposure to fossil fuels at the same time as we increase financing of sustainability-related projects such as renewable energy, energy efficient buildings, and electric transportation.

• An important part of our sustainability strategy is our ambitions and targets. SEB has committed to:
  • align our credit portfolio with pathways to net-zero by 2050 or sooner.
  • set net-zero aligned interim targets for 2030 for high climate impact sectors.
• We have also created specific indexes  in order to monitor our ambitions to:
  • reduce the bank’s fossil exposure (Carbon Exposure Index)
  • increase our sustainability activities (Sustainability Activity Index)
• We are convinced that society must reduce its dependence on fossil fuels, given their significant and negative impact on the climate. That makes our Sector Policy on Fossil Fuels another important part of our sustainability strategy.

Sector Policy on Fossil Fuels (pdf)

• Over the past five years, SEB has reduced its credit exposure to the oil and gas upstream sector by 76 per cent. As per year end 2024, this sector accounted for 0.6 per cent of our total credit exposure.
• SEB’s overall exposure to fossil fuels – relating to both power production and oil & gas – has declined by over 50 per cent since 2019. The bank’s goal is to reduce this exposure by 45-60 per cent by 2030.
• SEB’s sustainability activities¹ have increased by 175 per cent since 2021. The bank’s goal is an increase of 6-8 times by 2030.
• SEB has set net-zero aligned interim targets for 2030 for seven different sectors, covering 77 per cent of the bank’s financed emissions during 2022. At the end of 2023, the financed emissions had decreased by 49 per cent compared with 2020.
  • Relating specifically to the sector oil & gas, SEB’s financed emissions have declined by 64 per cent between 2020-2023. The bank’s goal is that it should decline by 70 per cent until 2030.

Our ambitions and goals

¹ Sustainability-related lending, sustainable finance advisory, venture capital investments within Greentech, and sustainable savings as a share of SEB’s total fund offering.

• Fossil fuels are today a large part of the global energy systems and the strongest contributor to climate change. SEB's position is that the demand for fossil fuels needs to decrease, while we at the same time need rapid growth of sustainable and affordable alternatives.
• The policy complements the goals within fossil fuels that the bank has set and defines SEB's stance towards different types of fossil fuels and restrictions on business relationships.
• According to the policy, SEB expects companies to have a transition plan².
• In accordance with the policy, SEB does not provide dedicated financing for specific exploration and production projects, including expansion projects.
• SEB will not enter new business relationships with companies in oil & gas exploration and production

²  Meaning a strategy that lays out the undertaking’s targets, actions and resources for its transition towards a low carbon economy with the objective of limiting global warming in line with the Paris Agreement.

• We do not provide dedicated financing for specific exploration and production projects, including expansion projects, which is regulated in our fossil policy.
• We have a few customers in the  Norwegian oil & gas industry and provide financing for these companies' day-to-day operations.
• We also finance these companies' large investments in renewable energy.

• SEB is, unlike other Swedish banks, a large corporate bank financing large industrial companies in Northern Europe.
• If society is to meet the goals of the Paris Agreement, the companies that have the greatest climate footprints must transition.
• We make the greatest positive impact for the climate by partnering with our customers and supporting them in their transitions.
• Our commitments related to the Paris Agreement are therefore not in conflict with supporting customers with a large climate impact to transition – on the contrary.

• Concerning our customers, we expect the companies to have a transition plan², which is stated in SEB's Sector Policy on Fossil Fuels and Environmental Policy.

²  Meaning a strategy that lays out the undertaking’s targets, actions and resources for its transition towards a low carbon economy with the objective of limiting global warming in line with the Paris Agreement.

• We can achieve the greatest positive impact for the climate by partnering with our customers and supporting them in their transition.

• If society is to succeed in fulfilling the Paris Agreement, the companies with the largest climate footprints must also adapt.

• If, on the other hand, we do not share the same goals and do not have an opportunity to influence, we also end customer relations. This is something SEB has done in recent years, which is also visible through the decline in SEB’s Carbon Exposure Index and in the financed emissions for the oil & gas sector.