We firmly believe that there is a need for society to reduce its dependency on fossil fuel related products given their significant negative climate impact. To contribute to achieving the objectives of the Paris Agreement, SEB has set targets for 2030 within its Net-Zero Banking Alliance commitment.
SEB’s fossil fuel policy is part of the transition structure of our sustainable business strategy. We believe in partnering with our customers on their transition journeys.
We have a restricted approach to coal mining. SEB has phased out business relationships with coal mining companies where more than 5 per cent of the revenues is derived from thermal coal mining. That means that 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% of revenue is derived from coal fired power generation. From 2026 SEB will also avoid any existing business relationships where more than 5% of revenues is derived from coal fired power generation. For Germany this takes effect in 2030.
With regard to oil and gas, we will continue to reduce our credit exposure to the sector overall as well as by restricting financing of new exploration and oilfield services activities. In dialogue with our customers, we will continue to engage towards transition where we see that it is possible, where customers have a plan for transition, and where we as a bank can have a positive impact by, for example, financing renewable energy and new technology.
In the fossil fuel policy we also address 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). We also describe our restrictions related to environmentally sensitive areas such as the Arctic.
The Transition Plan outlines our strategy and approach to achieving a credit portfolio with net zero emissions by 2050 or earlier. This plan details our interim targets, our methods for engaging with clients on their transition journeys, and how we integrate climate considerations into our business operations to drive the transition to a low-carbon society.
SEB's sustainability experts have extensive knowledge in areas such as climate and financing solutions, sustainable investments and regulatory development in the European Union.