Sustainable financing

We believe that sustainable financing is among the most important drivers in the transition towards a sustainable society. By offering sustainable advisory and financing products and services, we support our customers on their journeys and help them achieve their goals.

The transformation of large corporates, especially in sectors with a material carbon footprint, is key on the way towards to a low-carbon economy. New thinking, innovations and financial assistance are needed, as well as responsible credit granting.

Responsible lending and risk management

Responsible financing and lending are cornerstones of SEB’s business, creating long-term sustainable value for customers and shareholders. We take great care to know our customers and engage on environmental, social and governance (ESG) aspects on a regular basis. The aim is to understand the customers’ challenges and opportunities so that we can make the appropriate credit considerations and be a better business partner.

We integrate risks and opportunities related to ESG aspects into customer dialogues, policies and processes. Sustainability risks shall be considered in all credit decisions, with focus on the repayment capacity of the customer, the underlying value of collateral, as well as potential reputational consequences for SEB.

SEB’s group-wide processes and policies define how the bank shall take sustainability risks into account in financing activities. These procedures aim to ensure that material ESG factors are identified and assessed, and that they are incorporated into analyses and decisions.

SEB’s sustainability work is based on a solid governance structure and the Sustainability Policy Framework. This framework, that covers the Corporate Sustainability Policy, thematic policies, sector policies and instructions, provides guidelines on best practice and on the international conventions and standards that the bank encourages companies to follow.
SEB's Sustainability Policy Framework

Engaging with customers

We engage in constructive and concrete dialogues about our customers’ needs in relation to sustainability challenges and opportunities. We are convinced that we can make the greatest positive impact by being engaged in our customers' transition journeys. We both engage with and support our customers on their transition journeys when that is possible, but also that we may end customer relationships if we do not share the same goals and do not have an opportunity to influence.

A proof that our customers appreciate our advisory services is the Prospera survey 2022 among large corporate companies and institutions focusing on sustainability advice (published in 2023), where SEB defended its position as leading sustainability advisor in the Nordic region.
The Prospera sustainability survey 2022

Sustainability financing solutions

ESG aspects are incorporated across a broad range of financial solutions that we offer. Among the products are green bonds, social bonds, sustainable bonds, sustainability-linked bonds, green loans and sustainability-linked loans.

As one of the innovators behind green bonds, SEB has an ambition to drive the development of the sustainable finance market. Over the years, we have gradually developed our role as a global thought leader and has proactively contributed to setting the standards for products and services in the market. In 2022, SEB had a leading position in the Nordic market with an 22 (18) per cent share of global transactions by Nordic banks and underwrote an aggregate volume of EUR 7.2bn (5.7).

To finance projects and assets that support an environmentally sustainable society SEB issues green bonds. During 2022, SEB issued two green bonds of EUR 1bn each under SEB’s Green Bond Framework which was updated in January 2022.

The framework defines eligible assets that can be financed by green bonds issued by SEB. The updated framework, which is in line with the 2021 ICMA Green Bond Principles, has been made more inclusive to also support areas such as biodiversity and the transition to a circular economy. It is also broadly aligned with the technical screening criteria of the EU Taxonomy as of December 2021.
As per 31 December 2022, eligible green assets according to the 2022 framework amounted to SEK 46.6bn, a growth from SEK 29bn at the beginning of the year. Under the previous framework, the green assets amounted to 23.3bn as of 31 December 2021.

SEB was the first bank in Sweden to launch green mortgages, which offer a lower interest rate for people who live in climate-smart houses. The loans are available to anyone with housing that fulfils specific requirements, for example the Swedish National Board of Housing, Building and Planning’s energy classification criteria, homes with the Nordic Swan ecolabel, Sweden Green Building Council certification, and passive house certification. In 2022 the volume increased with 52 per cent to SEK 12bn (7.9).

SEB offers the possibility to apply for green construction loans when financing residential and commercial properties of any size. Previously, we have offered this funding for major building projects. SEB uses green funding to finance the properties that are classified as green.

Solutions supporting social development

Several products that we offer support social development such as equality, diversity and inclusion. These could be social bonds, social impact bonds or fixed income product where the issuer uses the proceeds for the purpose of financing, or refinancing, projects that generate positive social outcomes.
One example of a social financing is the Health Impact Bond, issued by Region Stockholm. The money, 30 million kronor, is used to finance preventative measures focusing on lifestyle habits for people at risk of developing type 2 diabetes.
Health Impact Bond
Sustainable financial products