Consistent sustainability progress in a changing geopolitical landscape

In 2019, we were setting our first climate targets and a lot has happened in the world around us since then. How have we progressed and have we kept our direction? 

Nordea’s long-term strategic direction on climate action is clear. We are committed to achieving net-zero emissions by 2050 at the latest. Also in the short term, we have made strong progress across the bank showing that we are on the right track.

As one of the largest financial service providers in the Nordics, we recognise our responsibility to support a sustainable transition that benefits both our customers and society at large. Nordea was the first Nordic financial service provider to make the industry-leading commitment to reduce emissions in the lending and investment portfolio by 40-50% by 2030. I am proud to say that we have, yet again, delivered strong progress in line with this objective.

Most of the emissions we report are indirect, so called financed emissions stemming from our investment and lending portfolios. Can you elaborate a bit on the approach and the detailed targets we have for this?

At Nordea, we believe that achieving real impact requires a well-structured and measurable approach. By working together with corporates and investors, we can accelerate the shift towards a sustainable future. That is why we actively engage with our corporate customers and investee companies to support their transition plans. 

86% of our exposure to large corporate customers in climate-vulnerable sectors is now covered by a time-bound, quantifiable target to cut greenhouse gas emissions. 81% of the top 200 financed emissions contributors in Nordea Asset Management’s portfolios are either aligned with the Paris Agreement or subject to active engagement. 

The progress in the portfolios have been strong. Since 2019 we have seen a 36% reduction in financed emissions in our lending portfolio and a 44% decrease in carbon intensity (WACI) across Nordea Asset Management portfolios.

It sounds like we’re closing in on our 2030 targets, but what will happen from here? Does it still make sense to have long-term goals in the current macroeconomic environment? 

While we continue to make strong progress, we are aware of the uncertainties posed by today’s geopolitical and macroeconomic environment. Global events, regulatory shifts, and market fluctuations all play a role in shaping the pace and direction of the green transition.

It is important that we listen to external developments and respond with both prudence and commitment. Sustainability is not a static goal but a continuous journey – one that requires resilience, collaboration, and a balanced approach together with our customers. 

Nordea will continue to support customers and stakeholders in navigating this evolving landscape, ensuring that we remain a trusted partner in the transition to a more sustainable society.

Our direction is clear, and our progress is tangible. With continued action and customer focus, we are moving closer to our long-term sustainability goals – ensuring that finance plays a key role in shaping a more resilient society.